Adopted: Emergency Regs for Accounting Reform Law

The Board approved the following amendments to existing regulations that govern the licensure of CPAs:

 

1) Experience for Licensure: The experience requirement for licensure as a certified public accountant is associated with the change in the scope of the practice of public accountancy. The proposed amendment broadens acceptable experience for licensure to include providing any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax or consulting skills under the direct supervision of a licensed CPA or public accountant. Work in public practice, government, industry or educational institutions.
2) Competency Requirement: The regulations define as unprofessional conduct the supervision of attest or compilation services unless the individual has met a minimum set of competencies, which includes having no less than 1,000 hours in the last five years in the preparation or review of financial statements, having no less than 40 hours of CPE in the area of service during the three years immediately prior to the performance of such services, and maintaining a level of education, experience and professional conduct set forth in standards governing the services performed.
3) Education for Licensure: The rule is intended to update and expand the curricular content of licensure-qualifying registered programs to reflect changes in the accounting profession.
4) Examination for Licensure: Effective Aug. 1, the education requirement for licensure as a CPA will increase from 120 to 150 hours. The amendment to the regulations will provide students with the opportunity to apply for admission to the exam after completing 120 hours of professional study.
5) Foreign Limited Permits: The rules authorize a foreign candidate to obtain a limited permit if the foreign country that issued the individual’s license recognizes CPAs licensed in the U.S.
6) Temporary Practice Permits: The regulations provide that an out-of-state CPA, licensed by a state with comparable licensure requirements, may obtain a temporary practice permit.
7) Endorsement of Out-of-State CPA License: The rules provide that an applicant licensed by a state with “significantly comparable” licensure requirements would be eligible for a license through endorsement.
8) Endorsement of a Foreign License: A new section provides for licensure by endorsement of a foreign applicant with an acceptable license from a country with “significantly comparable” licensure requirements. Other conditions, including having four years of experience in the last 10, apply.
9) Commission and Referral Fees: The rules define as unprofessional conduct the receipt of a commission or referral fee if the CPA is performing certain attest and compilation services. It also requires a CPA provide a written disclosure if commissions are received.
10) Firm Registration: The amendment to the rules requires all firms to maintain registration with the state if the firm is performing attest or compilation services or is using the title “CPA” or “PA.” It also details what information is required for the application and the state’s power of revocation.
11) Continuing Professional Education: The new rules allow CPAs to meet their annual CPE requirements by completing 40 credits in any combination of allowable subject areas or by completing 24 credits in a concentrated subject area.
12) Registration and Use of Professional Title: The rule requires CPAs and PAs to maintain an active registration with the department if the individual is practicing public accountancy or is holding him or herself out as a CPA or PA.
13) Non-attest Services Performed by Out-of-State CPAs: Existing law was amended to authorize out-of-state CPAs to perform non-attest services such as accounting, management advisory, financial advisory and tax in New York without a permit or license. Additional criteria apply.