00;00;00;00 - 00;00;19;18 Speaker 1 Hello and welcome to the accounting for California podcast. This is episode eight of the California Board of Accountancy podcast. My name is David Hemphill. I'm the information and planning officer here at the KBA, and I am excited to be joined by new CBA president Mr. Joseph Rosenbaum, CPA. 00;00;19;20 - 00;00;24;29 Speaker 2 Well thanks, David. Thank you for having me on this podcast. Looking forward to our discussion. 00;00;25;01 - 00;00;37;27 Speaker 1 Now, when you first got involved with the CBA over a decade ago, you were a member of the Enforcement Advisory Committee and eventually became chair of that committee. Did you envision yourself maybe becoming CBA president one day. 00;00;38;00 - 00;00;47;01 Speaker 2 Given the, the last few years or put in time at various of the, committees and then also being appointed. 00;00;47;01 - 00;00;47;15 Speaker 3 To the board. 00;00;47;15 - 00;00;53;03 Speaker 2 In 2022. It was really a natural progression, I think. And one of. 00;00;53;03 - 00;00;54;24 Speaker 3 The things that the board does. 00;00;54;29 - 00;00;55;26 Speaker 2 Is try to. 00;00;55;26 - 00;00;57;17 Speaker 3 Ensure that we do have experienced. 00;00;57;17 - 00;01;01;14 Speaker 2 Leadership at the top, those that have had some opportunity to serve on the. 00;01;01;14 - 00;01;01;29 Speaker 3 Board. 00;01;02;05 - 00;01;03;02 Speaker 2 To see how things. 00;01;03;02 - 00;01;04;12 Speaker 3 Work, to. 00;01;04;15 - 00;01;10;07 Speaker 2 Get an understanding of the process so that we can have good continuity at all of the officer. 00;01;10;07 - 00;01;10;28 Speaker 3 Levels. 00;01;11;01 - 00;01;25;09 Speaker 1 Absolutely. And you did start off as, right, as secretary treasurer originally. So you you became an officer relatively quickly. As we look into 2024 now, what are some of the priorities you would like to see the CBA achieve this year? 00;01;25;11 - 00;01;33;08 Speaker 2 Well, one of the main things, as you well know, is our sunset review. And what that refers to is every few years. 00;01;33;08 - 00;01;36;06 Speaker 3 Every one of the the various boards in. 00;01;36;06 - 00;01;39;09 Speaker 2 California need to essentially prove. 00;01;39;09 - 00;01;42;25 Speaker 3 Their worth and justify their existence. 00;01;42;27 - 00;02;06;03 Speaker 2 And so that's what is called the Sunset Review. And it's a fairly voluminous document. But what it does is it provides legislature a concise and complete view as to what the board does and how it does it. And so this is one that this year, 2024, happens to be our sunset review year. So that really allows us to take an internal. 00;02;06;03 - 00;02;06;18 Speaker 3 Look and. 00;02;06;18 - 00;02;07;01 Speaker 2 See how. 00;02;07;01 - 00;02;10;22 Speaker 3 Things are working. So, you know the the board is functioning. 00;02;10;24 - 00;02;23;00 Speaker 2 What changes need to be made, what funding levels need to be achieved. So that's I think, you know, one of the big things is getting through the sunset review. But I think it's also a valuable exercise. 00;02;23;00 - 00;02;24;26 Speaker 3 For the board itself. 00;02;24;29 - 00;02;26;20 Speaker 2 There are other things that I think. 00;02;26;22 - 00;02;28;12 Speaker 3 That our board will. 00;02;28;12 - 00;02;33;06 Speaker 2 Need to continue to focus on. And one of those is one of the main topics in accounting. 00;02;33;13 - 00;02;34;20 Speaker 3 All around the country. 00;02;34;20 - 00;02;37;04 Speaker 2 And that is the pipeline issue. 00;02;37;04 - 00;02;38;07 Speaker 3 And what that refers. 00;02;38;07 - 00;02;39;27 Speaker 2 To is, of course. 00;02;39;27 - 00;02;40;15 Speaker 3 The number. 00;02;40;15 - 00;02;44;22 Speaker 2 Of college students that are seeking to graduate with. 00;02;44;22 - 00;02;45;10 Speaker 3 A degree. 00;02;45;10 - 00;02;54;09 Speaker 2 In accounting, and also those accounting students who then seek to become a CPA of late. 00;02;54;12 - 00;02;57;12 Speaker 3 We are experiencing a bit of a challenge there. We've got a number of. 00;02;57;12 - 00;02;57;28 Speaker 2 CPA. 00;02;58;02 - 00;03;03;05 Speaker 3 That are leaving the workforce due to retirement, and not enough to replace. 00;03;03;12 - 00;03;10;06 Speaker 2 The pipeline, so that's something that we will continue to do in addition to our normal duties, as is outreach. 00;03;10;06 - 00;03;14;01 Speaker 3 And David, I know you are very involved in that effort and. 00;03;14;01 - 00;03;14;26 Speaker 2 Thank you for. 00;03;14;26 - 00;03;34;09 Speaker 1 That. Absolutely. That is that is one of my roles here, is to get that word out. And it's, it's a noble endeavor to make sure that those interested are as taken care of and feel as knowledgeable as they can, as they are on their pathway to CPA. That is so important. So thank you for making that a priority for this year, because I would definitely agree with that. 00;03;34;11 - 00;03;37;29 Speaker 1 What is the most important role of the CBA in your opinion? 00;03;38;06 - 00;03;38;14 Speaker 2 You know. 00;03;38;14 - 00;03;40;01 Speaker 3 Of course the most important role. 00;03;40;01 - 00;03;42;23 Speaker 2 Is protection of the public. At the beginning of. 00;03;42;23 - 00;03;45;19 Speaker 3 Every one of our board meetings. 00;03;45;19 - 00;03;50;29 Speaker 2 And in fact, advisory committee meetings, we start with a recitation of the mission. 00;03;50;29 - 00;03;54;00 Speaker 3 Of the Board of Accountancy, and that is to protect consumers. 00;03;54;00 - 00;03;57;05 Speaker 2 But beyond that, we need to ensure. 00;03;57;05 - 00;03;58;07 Speaker 3 That we have. 00;03;58;10 - 00;04;00;27 Speaker 2 Sufficient numbers of CPA. 00;04;00;29 - 00;04;02;01 Speaker 3 In order to protect. 00;04;02;01 - 00;04;11;10 Speaker 2 The public. So we're not only looking at the quality of the individuals that get licensed and remain licensed, but also trying, as I said. 00;04;11;10 - 00;04;12;13 Speaker 3 Before, trying to increase. 00;04;12;14 - 00;04;15;25 Speaker 2 Numbers to make sure we have sufficient CPAs to offer the. 00;04;15;25 - 00;04;17;20 Speaker 3 Services that are needed. 00;04;17;24 - 00;04;40;15 Speaker 1 Yes, definitely. And we have speaking to that currently for openings on the CBA. And there are also many vacancies on some of its advisory committees, which do important work assisting the CBA. There are many individuals out there I'm sure have thought about volunteering, or are looking for ways to make a positive impact on the accounting profession. What would you say to those people specifically? 00;04;40;18 - 00;04;47;09 Speaker 2 Well, I mean, when I do talk to individuals, I always encourage them to consider being. 00;04;47;15 - 00;04;53;11 Speaker 3 A part of the board. We have great opportunity parties and various advisory committees from. 00;04;53;11 - 00;04;57;19 Speaker 2 Licensing, enforcement, peer review, as well as. 00;04;57;19 - 00;04;58;25 Speaker 3 Being on the board as well. 00;04;58;25 - 00;05;01;17 Speaker 2 But I think serving in any sort of a. 00;05;01;17 - 00;05;02;09 Speaker 3 Volunteer. 00;05;02;09 - 00;05;09;01 Speaker 2 Capacity and giving back to your profession not only gives you a sense of belonging, you also get an. 00;05;09;01 - 00;05;10;18 Speaker 3 Opportunity to interact with. 00;05;10;18 - 00;05;17;25 Speaker 2 Like minded individuals, but also get to speak under the hood, so to speak, and really get to see how how the. 00;05;17;25 - 00;05;19;01 Speaker 3 Process really works. And it. 00;05;19;01 - 00;05;20;00 Speaker 2 Gives you a much. 00;05;20;00 - 00;05;21;04 Speaker 3 Greater and deeper. 00;05;21;04 - 00;05;22;01 Speaker 2 Appreciation. 00;05;22;01 - 00;05;23;29 Speaker 3 For the work that the board does. 00;05;24;02 - 00;05;28;01 Speaker 2 And in fact, the practice of accountancy. So I think it makes, gives you. 00;05;28;01 - 00;05;31;07 Speaker 3 A more fulfilling look at what it is to really. 00;05;31;07 - 00;05;32;19 Speaker 2 Be a CPA. 00;05;32;19 - 00;05;33;10 Speaker 3 Involved. 00;05;33;11 - 00;05;35;01 Speaker 2 In the public accounting field. 00;05;35;02 - 00;05;57;11 Speaker 1 That's right. We definitely encourage anyone to consider this. And so many people that I've talked to just say how rewarding it is. They went into it knowing it was going to be a positive, but it ended up being even even a greater good in their in their personal and professional worlds than they thought going in. So we definitely encourage anyone interested in applying to fill one of these openings. 00;05;57;13 - 00;05;59;16 Speaker 2 Yes, please do. 00;05;59;19 - 00;06;13;11 Speaker 1 Yes. Now, looking a little at your career, you have enjoyed some assignments and some, some pretty exciting locations such as Zurich and The Hague. How would you compare accounting in California versus abroad? 00;06;13;18 - 00;06;18;15 Speaker 2 David, I have enjoyed some amazing office assignments. The ones. 00;06;18;15 - 00;06;22;02 Speaker 3 Abroad occurred at the very beginning of my career, and. 00;06;22;02 - 00;06;26;25 Speaker 2 Frankly, it's what got me into public accounting. To start with, I was selected. 00;06;26;25 - 00;06;28;12 Speaker 3 By Arthur Andersen. 00;06;28;12 - 00;06;32;16 Speaker 2 To do an internship in The Hague, and so I went. 00;06;32;16 - 00;06;33;11 Speaker 3 Over and it was. 00;06;33;16 - 00;06;34;00 Speaker 2 An awesome. 00;06;34;00 - 00;06;35;22 Speaker 3 Experience. Everything was. 00;06;35;22 - 00;06;39;08 Speaker 2 Conducted in English, so I was generally assigned to. 00;06;39;09 - 00;06;43;26 Speaker 3 American subsidiaries that were operating in the Netherlands. 00;06;43;29 - 00;06;45;02 Speaker 2 And it was just a. 00;06;45;02 - 00;06;47;24 Speaker 3 Wonderful way to begin my career. After my. 00;06;47;28 - 00;06;48;24 Speaker 2 Internship. 00;06;48;24 - 00;06;49;18 Speaker 3 There, or as it. 00;06;49;18 - 00;06;51;18 Speaker 2 Was about to, to. 00;06;51;18 - 00;06;55;14 Speaker 3 End. We had within the greater firm. 00;06;55;17 - 00;06;56;19 Speaker 2 An opening. 00;06;56;22 - 00;06;58;18 Speaker 3 For the managing partner in. 00;06;58;18 - 00;07;00;05 Speaker 2 Zurich, Switzerland. And, 00;07;00;07 - 00;07;03;16 Speaker 3 One of the partners that I had worked with in the Netherlands. 00;07;03;22 - 00;07;04;00 Speaker 2 Was. 00;07;04;00 - 00;07;05;22 Speaker 3 Selected to be that managing partner. 00;07;05;22 - 00;07;11;05 Speaker 2 So I approached him and asked whether it would be possible for me to, to have another. 00;07;11;05 - 00;07;13;04 Speaker 3 Year as an intern or as a. 00;07;13;04 - 00;07;14;19 Speaker 2 First year in the Zurich. 00;07;14;19 - 00;07;16;07 Speaker 3 Office. And he readily. 00;07;16;07 - 00;07;18;17 Speaker 2 Agreed, which was just fantastic to. 00;07;18;17 - 00;07;21;24 Speaker 1 Me. Sounds like a fascinating beginning to your career. 00;07;21;25 - 00;07;23;00 Speaker 2 It was indeed. 00;07;23;02 - 00;07;31;07 Speaker 1 So you were working for Arthur Andersen when you eventually came back home to California? Tell us about, the experience of working for a big firm. 00;07;31;14 - 00;07;33;23 Speaker 2 Well, yeah, I mean, I will say the majority. 00;07;33;23 - 00;07;34;27 Speaker 3 Of my career. 00;07;34;27 - 00;07;38;05 Speaker 2 Really was spent at big eight slash big. 00;07;38;05 - 00;07;38;22 Speaker 3 Four. 00;07;38;22 - 00;07;40;28 Speaker 2 Accounting firms. As I said before. 00;07;40;28 - 00;07;41;21 Speaker 3 I was with Arthur. 00;07;41;21 - 00;07;47;26 Speaker 2 Andersen, but also finished my career at Ernst and Young and actually took retirement. 00;07;47;26 - 00;07;49;09 Speaker 3 From from Ernst and Young. 00;07;49;14 - 00;07;54;22 Speaker 1 Okay. Well, now tell us about Rosenbaum and Company, your own accounting practice. 00;07;54;26 - 00;08;13;00 Speaker 2 In 2011, I did decide to form my own company, and I struggled. I actually hired someone to help me come up with a catchy, firm name. But I said the default would be. I'll just use my own. But anyway, that's the way we ended up. But my career in public accounting. 00;08;13;00 - 00;08;14;00 Speaker 3 Was a little bit different. 00;08;14;07 - 00;08;33;01 Speaker 2 Than most. I did not really do audit and taxes. What I practiced in was the forensic services part of the accounting world, and that involves litigation, consulting, expert testimony and that sort of thing, but also an investigation into potential financial statement misstatements and fraud. One of the. 00;08;33;01 - 00;08;34;07 Speaker 3 Problems. 00;08;34;10 - 00;08;35;02 Speaker 2 That you. 00;08;35;02 - 00;08;37;14 Speaker 3 Encounter in doing that sort of work. 00;08;37;19 - 00;08;40;23 Speaker 2 At a big multi-national. 00;08;40;26 - 00;08;43;02 Speaker 3 International firm is that you. 00;08;43;02 - 00;08;47;17 Speaker 2 Run into conflicts from time to time, so you may have an opportunity to. 00;08;47;17 - 00;08;48;02 Speaker 3 Get hired. 00;08;48;02 - 00;09;05;02 Speaker 2 On a on a certain assignment, but you've got conflicts and so are unable to take that case. And so in my own company, I can really control the conflicts a lot better. And so that was the real genesis about striking out on my own and doing those sorts of projects. 00;09;05;04 - 00;09;12;18 Speaker 1 Now, forensic accounting seems pretty exciting. Is it as exciting as it seems? There's a lot of people are fairly fascinated with that. 00;09;12;21 - 00;09;18;24 Speaker 2 David. Forensic accounting. I can't imagine personally of doing anything else than that in my career. 00;09;19;00 - 00;09;20;27 Speaker 3 My background was. 00;09;21;00 - 00;09;35;24 Speaker 2 In accounting as an undergrad, but I also graduated from law school and passed the bar in Ohio. The fascination with being involved in litigation assignments was great, and the opportunity to do both of these. 00;09;35;24 - 00;09;37;20 Speaker 3 In a single career. 00;09;37;22 - 00;09;44;11 Speaker 2 Was really serendipitous for me. What is forensic accounting? Well, it's not auditing, it's not tax. 00;09;44;11 - 00;09;47;25 Speaker 3 But there are a number of different projects that fall under that. 00;09;47;25 - 00;10;07;16 Speaker 2 One is doing an investigation into allegations of financial statements, misstatements or misconduct could be fraudulent. Financial statements could be allegations or instances of embezzlement. We are also forensic accountants, get involved in litigation. 00;10;07;16 - 00;10;08;03 Speaker 3 Matters. 00;10;08;03 - 00;10;13;29 Speaker 2 And calculating economic damages and, contract disputes. When you. 00;10;13;29 - 00;10;16;13 Speaker 3 Are preparing to testify, for. 00;10;16;13 - 00;10;28;04 Speaker 2 Example, in a litigation matter, every little mistake is going to be potentially scrutinized and you would be subject to cross-examination. You know, precision is a is a. 00;10;28;04 - 00;10;29;08 Speaker 3 Big part of what we do. 00;10;29;08 - 00;10;36;00 Speaker 2 But it's also exciting. Not all of the cases involve testimony, but those that do. 00;10;36;07 - 00;10;36;23 Speaker 3 Are. 00;10;36;24 - 00;10;40;06 Speaker 2 Really, as you can imagine, quite exciting to have to. 00;10;40;10 - 00;10;43;03 Speaker 3 Testify and in front of a jury and in front of a. 00;10;43;03 - 00;10;46;06 Speaker 2 Judge. So it's a very interesting field. 00;10;46;09 - 00;10;46;14 Speaker 3 A. 00;10;46;14 - 00;10;47;29 Speaker 2 Relatively small. 00;10;47;29 - 00;10;48;23 Speaker 3 Part of. 00;10;48;23 - 00;10;51;19 Speaker 2 The big firms practices, but still a. 00;10;51;19 - 00;10;53;07 Speaker 3 Very important one. 00;10;53;09 - 00;10;54;06 Speaker 2 I've just been lucky to. 00;10;54;06 - 00;10;55;02 Speaker 3 Be a part of it. 00;10;55;05 - 00;11;02;24 Speaker 1 Yeah, that sounds very interesting. So when did you know you wanted to go into accounting and become a CPA? Let's let's look back. Back to the beginnings. 00;11;02;29 - 00;11;05;15 Speaker 2 Well, back to the beginning. You know, I really didn't. 00;11;05;18 - 00;11;09;10 Speaker 3 Originally intend to become a CPA. It was sort. 00;11;09;10 - 00;11;17;02 Speaker 2 Of a circuitous route, but one that seems somewhat inevitable in hindsight. My father was a accountant and accountant. 00;11;17;04 - 00;11;18;13 Speaker 3 Interestingly enough, for me. 00;11;18;19 - 00;11;24;03 Speaker 2 Maybe it was destiny. Who knows? I wanted originally, I think, to be a. 00;11;24;03 - 00;11;26;24 Speaker 3 Corporate litigator, a lawyer. 00;11;26;26 - 00;11;29;05 Speaker 2 And so I had some family. 00;11;29;05 - 00;11;29;18 Speaker 3 Friends. 00;11;29;18 - 00;11;34;15 Speaker 2 And that did that. And I thought that was a very interesting career choice, one that I would be hitting for. 00;11;34;15 - 00;11;35;23 Speaker 3 But I was advised not. 00;11;35;23 - 00;11;36;08 Speaker 2 To take. 00;11;36;13 - 00;11;39;19 Speaker 3 What was then the normal undergraduate programs for law. 00;11;39;19 - 00;11;40;21 Speaker 2 School, and those. 00;11;40;21 - 00;11;42;08 Speaker 3 At the time were political. 00;11;42;08 - 00;12;00;21 Speaker 2 Science or English or literature. But rather to take something like accounting or engineering. So when I went to school, I took accounting as my undergraduate. And after graduation, I applied and was accepted to law school. So far, so good on my intended career. 00;12;00;23 - 00;12;01;14 Speaker 3 However, I had the. 00;12;01;14 - 00;12;05;07 Speaker 2 Opportunity to go play, or on a rugby. 00;12;05;07 - 00;12;09;18 Speaker 3 Tour to Ireland while I was in school. Okay, with a team from. 00;12;09;18 - 00;12;14;17 Speaker 2 Indianapolis, and at the conclusion of the tour, I decided that, you know, maybe I would just stay. 00;12;14;17 - 00;12;20;12 Speaker 3 For a little bit longer. So I postponed one quarter of my law school career, got a. 00;12;20;12 - 00;12;22;01 Speaker 2 Job doing construction. 00;12;22;01 - 00;12;24;02 Speaker 3 And played for the local Irish. 00;12;24;02 - 00;12;27;13 Speaker 2 Side. When I came back to, the school. 00;12;27;13 - 00;12;29;13 Speaker 3 Rather than, 00;12;29;16 - 00;12;36;03 Speaker 2 Sort of pick up and continue law school and try to catch up with my, my classmates. I decided to postpone. 00;12;36;07 - 00;12;38;23 Speaker 3 Real life a little bit longer and. 00;12;38;25 - 00;12;43;17 Speaker 2 Actually entered the business school. So I was getting an MBA at the same time with my. 00;12;43;24 - 00;12;44;22 Speaker 3 As my law degree. 00;12;44;28 - 00;12;49;17 Speaker 2 As a result of that, I also then with a couple of buddies. 00;12;49;17 - 00;12;50;13 Speaker 3 Formed a. 00;12;50;13 - 00;13;00;20 Speaker 2 Chapter of an international business association called Isac I SEC. And that was an organization, an international organization founded. 00;13;00;20 - 00;13;05;07 Speaker 3 Around the end of World War two in order to help reestablish. 00;13;05;14 - 00;13;07;07 Speaker 2 Business connections. 00;13;07;07 - 00;13;07;25 Speaker 3 Around the. 00;13;07;25 - 00;13;08;24 Speaker 2 World. And so the. 00;13;08;24 - 00;13;13;07 Speaker 3 Way it works is that your chapter goes into your local business. 00;13;13;07 - 00;13;15;06 Speaker 2 Community to find internship. 00;13;15;06 - 00;13;16;04 Speaker 3 Opportunities. 00;13;16;04 - 00;13;19;06 Speaker 2 And as a result of that, you then throw your name in the. 00;13;19;06 - 00;13;20;12 Speaker 3 Hat and everything. 00;13;20;12 - 00;13;20;29 Speaker 2 That stood. 00;13;20;29 - 00;13;24;00 Speaker 3 Out from around the world. So as it turns out. 00;13;24;00 - 00;13;24;27 Speaker 2 I was the. 00;13;25;02 - 00;13;27;24 Speaker 3 The first in our group to get to raise my. 00;13;27;24 - 00;13;33;09 Speaker 2 Hand, and I was selected to go to the Netherlands and do an. 00;13;33;09 - 00;13;36;06 Speaker 3 Internship with the accounting firm of Arthur. 00;13;36;06 - 00;13;39;21 Speaker 2 Andersen. And so that had not really been. 00;13;39;26 - 00;13;40;27 Speaker 3 My career choice. 00;13;40;27 - 00;13;45;08 Speaker 2 But once I did that, and I went to The Hague and did my, my. 00;13;45;08 - 00;13;46;25 Speaker 3 Internship with Arthur Andersen, I. 00;13;46;25 - 00;14;01;13 Speaker 2 Was fascinated by the whole accounting prospect. And and being a CPA, I was an oddity that when I came back to the States, I realized I didn't really want to be in the audit practice. But it turns out that I had been assigned to. 00;14;01;13 - 00;14;03;13 Speaker 3 One of our litigation consulting. 00;14;03;13 - 00;14;06;22 Speaker 2 Projects. And once I found out that that was a. 00;14;06;24 - 00;14;07;18 Speaker 3 Career path. 00;14;07;25 - 00;14;09;17 Speaker 2 That was pretty much the, 00;14;09;23 - 00;14;10;16 Speaker 3 The end of my. 00;14;10;16 - 00;14;15;17 Speaker 2 Decisions, and I dove right in, became a CPA and, and ultimately. 00;14;15;17 - 00;14;16;11 Speaker 3 Became a partner. 00;14;16;16 - 00;14;18;02 Speaker 2 Here we go. And spent my. 00;14;18;02 - 00;14;20;18 Speaker 3 Entire professional career in forensic. 00;14;20;18 - 00;14;21;00 Speaker 2 Accounting. 00;14;21;01 - 00;14;23;02 Speaker 1 That's a great story. So how did the rugby team do? 00;14;23;05 - 00;14;26;08 Speaker 2 Well, we, we probably. 00;14;26;11 - 00;14;27;21 Speaker 3 Worked, weren't as good. 00;14;27;21 - 00;14;28;25 Speaker 2 As those who spent. 00;14;28;29 - 00;14;32;06 Speaker 3 Their formative years playing rugby. You know, we had a really good time. 00;14;32;09 - 00;14;39;11 Speaker 1 Oh, that sounds fun. That's a great story. Thanks for sharing that with us. So what current trends in the accounting industry interest you the most? 00;14;39;11 - 00;14;40;02 Speaker 2 Well, there. 00;14;40;02 - 00;14;40;25 Speaker 3 Are so. 00;14;40;25 - 00;14;43;00 Speaker 2 Many changes that are going on. 00;14;43;00 - 00;14;46;00 Speaker 3 In the greater world around us. 00;14;46;02 - 00;15;12;24 Speaker 2 Everything seems to blend. When you say specifically in accounting, I comes to mind. The blockchain is is clearly there. And of course ESG, which is the environmental, social and governance aspect of what accountants may need to do in the future. Those things, I think, are probably going to be the most impactful over, you know, the next few years, if not sooner. 00;15;12;29 - 00;15;13;26 Speaker 2 But I think those are the. 00;15;13;26 - 00;15;15;12 Speaker 3 Ones that we really do need to. 00;15;15;12 - 00;15;18;20 Speaker 2 Keep an eye on. But those are going to affect not just the accounting. 00;15;18;20 - 00;15;20;16 Speaker 3 World, but business in general. 00;15;20;22 - 00;15;26;21 Speaker 1 Absolutely. What does the potential effect of AI on the accounting industry? Does it excite you? Does it scare you? 00;15;26;24 - 00;15;39;22 Speaker 2 Well, I think, I think it's probably a little bit of both. I can't say that it necessarily scares me, but I do think there will definitely be changes. Some of the more mundane tasks could potentially be. 00;15;39;22 - 00;15;42;08 Speaker 3 Handled or streamlined by. 00;15;42;08 - 00;15;50;28 Speaker 2 Artificial intelligence and other development, but I don't know that it's ever going to put us out of business. If anything, it might actually increase. 00;15;50;29 - 00;15;51;22 Speaker 3 Our. 00;15;51;22 - 00;15;57;26 Speaker 2 Opportunity. You think back to when the calculator was invented, and then. 00;15;57;26 - 00;15;59;03 Speaker 3 The computer was. 00;15;59;03 - 00;16;07;04 Speaker 2 Being, talked about how that was going to eliminate the need for accountants and really changed things. And what it did was make us. 00;16;07;06 - 00;16;11;08 Speaker 3 A lot more efficient and even more valuable now that we had a greater handle on. 00;16;11;08 - 00;16;11;23 Speaker 2 Data. 00;16;11;23 - 00;16;13;24 Speaker 3 And the ability to do analytics. 00;16;13;24 - 00;16;15;06 Speaker 2 And understand. 00;16;15;08 - 00;16;21;05 Speaker 3 I believe that I will probably be that hopeful, and I think it will probably also open up. 00;16;21;08 - 00;16;31;02 Speaker 2 Job opportunities that we haven't even contemplated yet. I, you know, I'm by no means an expert in AI. I just have to believe, just based. 00;16;31;02 - 00;16;32;19 Speaker 3 On past experience. 00;16;32;19 - 00;16;37;06 Speaker 2 That yes, it will potentially impact some, but I think it. 00;16;37;06 - 00;16;37;24 Speaker 3 Will provide. 00;16;37;24 - 00;16;38;04 Speaker 2 A lot. 00;16;38;04 - 00;16;38;29 Speaker 3 Of opportunity to. 00;16;38;29 - 00;17;02;16 Speaker 1 Others. That's good, but we certainly can't approach it with a head in the sand. Need to be aware and, like I said, ready to see how it can improve the practices. There's that's definitely out there. Now, earlier you mentioned how, the pipeline is going to be one of your priorities for 2024. So as we head into this year, why should young people consider accounting and obtaining their CPA license as a career choice? 00;17;02;18 - 00;17;07;11 Speaker 2 Well, I think given the, quote unquote pipeline issue. 00;17;07;13 - 00;17;08;14 Speaker 3 That refers. 00;17;08;14 - 00;17;10;16 Speaker 2 To the relative decrease in. 00;17;10;16 - 00;17;11;12 Speaker 3 The number of accounting. 00;17;11;12 - 00;17;13;13 Speaker 2 Graduates as well as those pursuing. 00;17;13;19 - 00;17;14;11 Speaker 3 A career. 00;17;14;11 - 00;17;24;07 Speaker 2 As a CPA. But given that we have that issue, it's a good career choice because it's in demand. And I suspect that it will be in even. 00;17;24;07 - 00;17;24;26 Speaker 3 Greater. 00;17;24;26 - 00;17;31;27 Speaker 2 Demand in the next few years. It's not a pipeline issue, but one of the things that will affect the job opportunities is that. 00;17;31;27 - 00;17;36;01 Speaker 3 There are a great number of individuals who are going to. 00;17;36;01 - 00;17;38;26 Speaker 2 Be leaving the accounting profession. 00;17;38;26 - 00;17;39;22 Speaker 3 Due to retirement. 00;17;39;29 - 00;17;43;26 Speaker 2 In the next several years. So getting a foot in the. 00;17;43;26 - 00;17;44;25 Speaker 3 Door right. 00;17;44;25 - 00;17;47;28 Speaker 2 Now and getting some experience as a CPA. 00;17;47;28 - 00;17;51;10 Speaker 3 I think would be really beneficial for. 00;17;51;13 - 00;17;55;17 Speaker 2 What I think will be some great job opportunities in the future. 00;17;55;23 - 00;17;59;28 Speaker 1 That's great. Do you have any, other advice for recent accounting graduates? 00;18;00;06 - 00;18;04;29 Speaker 2 My advice would be to go ahead and take the CPA exam. 00;18;04;29 - 00;18;06;12 Speaker 3 At your earliest. 00;18;06;12 - 00;18;14;14 Speaker 2 Convenience. One thing that I did not do as a an accounting graduate was take the exam right away. I waited until several. 00;18;14;14 - 00;18;15;22 Speaker 3 Years after. 00;18;15;29 - 00;18;16;25 Speaker 2 Graduation. 00;18;16;26 - 00;18;20;07 Speaker 3 After I had been working to finally get around. 00;18;20;09 - 00;18;22;20 Speaker 2 To taking a CPA exam, and that made it. 00;18;22;26 - 00;18;24;00 Speaker 3 A little more difficult. 00;18;24;00 - 00;18;26;10 Speaker 2 To get back into some of the concepts that I wasn't. 00;18;26;10 - 00;18;26;22 Speaker 3 Dealing. 00;18;26;22 - 00;18;29;24 Speaker 2 With day to day. Right? So I would say that's my. 00;18;29;24 - 00;18;32;26 Speaker 3 Very first thing, is to go ahead and get. 00;18;33;03 - 00;18;35;08 Speaker 2 The CPA exam scheduled. 00;18;35;08 - 00;18;36;23 Speaker 3 And under your belt. 00;18;36;25 - 00;18;43;12 Speaker 2 And given the new changes to the exam, I think it's exciting that the exam is much. 00;18;43;12 - 00;18;44;14 Speaker 3 Better reflective. 00;18;44;14 - 00;18;55;01 Speaker 2 Of what CPAs are going to be working on in the future. It's a good time, I think, to be graduating in accounting and it's the future is rosy for the CPA profession. 00;18;55;05 - 00;19;02;01 Speaker 1 So you definitely see the need for CPAs continuing to grow in the next five to 10 to 20 years. 00;19;02;04 - 00;19;04;12 Speaker 2 Oh, I think so. I think that some of the things. 00;19;04;12 - 00;19;05;13 Speaker 3 We haven't talked about, I think. 00;19;05;13 - 00;19;10;16 Speaker 2 There will be and we'll continue a confluence of accounting into. 00;19;10;16 - 00;19;11;21 Speaker 3 Some of the more business. 00;19;11;28 - 00;19;15;00 Speaker 2 Related decisions historically, historically speaking. 00;19;15;00 - 00;19;16;21 Speaker 3 Alone, years ago. 00;19;16;23 - 00;19;18;21 Speaker 2 Accountants were basically. 00;19;18;21 - 00;19;19;27 Speaker 3 The number crunchers put. 00;19;19;27 - 00;19;26;08 Speaker 2 In the box. Just tell us what has happened. Just added up for it. But increasingly, the accounting profession are. 00;19;26;08 - 00;19;27;17 Speaker 3 Getting brought in to more. 00;19;27;17 - 00;19;34;05 Speaker 2 Strategic decision making and so I think that that's a trend that will continue. And I think having a CPA license. 00;19;34;13 - 00;19;35;16 Speaker 3 Greatly, greatly. 00;19;35;16 - 00;19;40;02 Speaker 2 Assist in showing your showing your confidence and showing your commitment. 00;19;40;04 - 00;19;47;01 Speaker 1 That's exciting, taking on even bigger roles. Well, any final thought to leave with our listeners today? 00;19;47;07 - 00;19;48;28 Speaker 2 I appreciate that you've got. 00;19;48;29 - 00;19;53;16 Speaker 3 Listeners of of various kinds of that are working, some that are thinking. 00;19;53;16 - 00;19;56;13 Speaker 2 About becoming a CPA. I would just say that. 00;19;56;13 - 00;20;03;25 Speaker 3 I personally have really enjoyed the career that I've had. I can't imagine having a better career than what I did. 00;20;03;26 - 00;20;06;12 Speaker 2 So I'm I'm pretty happy. I can only. 00;20;06;12 - 00;20;09;23 Speaker 3 Share that with others and say, you know, so it's not a bad. 00;20;09;23 - 00;20;16;24 Speaker 2 Way to go. So please, for those of you who are still in school, let's keep it up. Let's see if you can't enter. 00;20;17;00 - 00;20;17;04 Speaker 3 The. 00;20;17;04 - 00;20;19;15 Speaker 2 Ranks of the CPA. Thank you David. 00;20;19;16 - 00;20;50;06 Speaker 1 Well, thank you very much, President Rosenbaum, for joining us today and sharing all that great advice with everyone. I will recommend people go to the CBA website which is dot cbc.ca gov. Especially if you're considering volunteering to serve, there is a link right there that says Volunteer to serve that will tell you everything you need to know. And of course, we have lots of information on the new CPA exam that President Rosenbaum mentioned and lots of other helpful resource is for you on the CBA website. 00;20;50;09 - 00;21;08;01 Speaker 1 Thank you very much for listening today. Another episode of the accounting for California podcast. President Rosenbaum, we thank you for stepping up and your leadership that we're looking forward to in the year 2024. And best of luck with fulfilling all of your priorities in this year. Once again, thank you for joining us. 00;21;08;04 - 00;21;08;27 Speaker 2 Thank you.