217 Relating to: continuing education and examination requirements for certified public accountants and modifying various administrative rules promulgated by the Accounting Examining Board relating to accounting. (FE)  

  •   Date of enactment: March 1, 2016
    2015 Senate Bill 532   Date of publication*: March 2, 2016
    * Section 991.11, Wisconsin Statutes : Effective date of acts. "Every act and every portion of an act enacted by the legislature over the governor's partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication."
    2015 WISCONSIN ACT 217
    An Act to repeal 442.04 (5) (c); and to amend 442.04 (5) (b) 3. and 442.04 (5) (b) 4. of the statutes; relating to: continuing education and examination requirements for certified public accountants and modifying various administrative rules promulgated by the Accounting Examining Board relating to accounting.
    The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
    Section 1 . 442.04 (5) (b) 3. of the statutes is amended to read:
    442.04 (5) (b) 3. The person has completed at least 150 semester hours of education with an accounting concentration at an institution that include course work in accounting and business subjects, as determined by the examining board , and has received a bachelor's or higher degree with an accounting concentration from an institution, except as provided in par. (c) .
    Section 2 . 442.04 (5) (b) 4. of the statutes is amended to read:
    442.04 (5) (b) 4. Except as provided in s. 442.05, the person has successfully passed an examination in such subjects affecting accountancy and business as the examining board considers necessary. A person is not eligible to take the examination under this subdivision unless the person has completed at least 120 semester hours under subd. 3. of education at an institution that include course work in accounting and business subjects, as determined by the examining board.
    Section 3 . 442.04 (5) (c) of the statutes is repealed.
    Section 4 . Accy 1.001 (1) of the administrative code is amended to read:
    Accy 1.001 (1) Chapters Accy 1 to 9 6 apply to a person who practices as a certified public accountant in this state.
    Section 5 . Accy 1.001 (2) of the administrative code is amended to read:
    Accy 1.001 (2) A certified public accountant may be held responsible for compliance with the rules of the examining board by any person associated with the certified public accountant in a firm who is either under his or her supervision or is a member of the firm.
    Section 6 . Accy 1.001 (3) of the administrative code is amended to read:
    Accy 1.001 (3) A certified public accountant shall not permit others to carry out acts on his or her the accountant's behalf, either with or without compensation, which, if carried out by the certified public accountant, would violate chs. Accy 1 to 9 6 .
    Section 7 . Accy 1.002 (1) and (2) of the administrative code are amended to read:
    Accy 1.002 (1) A person licensed as a certified public accountant that has significant influence over a CPA-related business is considered to be practicing as a certified public accountant in the CPA-related business and all persons with ownership interest in the business shall follow the rules of the examining board in the operation of the CPA-related business.
    (2) A person who operates a business and is licensed as a certified public accountant and who advertises or otherwise holds out as a certified public accountant shall follow the rules of the examining board in the operation of any business.
    Section 8 . Accy 1.003 (intro.) of the administrative code is amended to read:
    Accy 1.003 Definitions. (intro.) As used in chs. Accy 1 to 9 6 :
    Section 9 . Accy 1.003 (2m), (2r) and (7m) of the administrative code are created to read:
    Accy 1.003 (2m) "Board" means the accounting examining board.
    (2r) "Certified public accountant" or "CPA" means a person considered to be in practice as a certified public accountant under s. 442.02, Stats.
    (7m) "Financial statements" means statements and footnotes related thereto that undertake to present an actual or anticipated financial position as of a point in time, or results of operations, cash flow, or changes in financial position for a period of time, in conformity with generally accepted accounting principles or another comprehensive basis of accounting. "Financial statements" does not include incidental financial data included in management advisory service reports to support recommendations to a client; nor does it include tax returns and supporting schedules.
    Section 10 . Subchapter II (title) of chapter Accy 1 [precedes Accy 1.101] of the administrative code is amended to read:
    Chapter accy 1
    subchapter II
    INDEPENDENCE PROFESSIONAL
    CONDUCT
    , INTEGRITY ,
    AND OBJECTIVITY
    Section 11 . Accy 1.101 of the administrative code is repealed and recreated to read:
    Accy 1.101 Professional conduct. (1) The board adopts by reference the "Code of Professional Conduct" published by the American Institute of Certified Public Accountants, effective as of December 15, 2014, except that references to "member" are replaced by "a person licensed to practice as a certified public accountant."
    (2) All definitions included in the American Institute of Certified Public Accountants' Code of Professional Conduct shall apply only within that document.
    Note: The AICPA Code of Professional Conduct is available electronically at http://pub.aicpa.org/codeofconduct/Ethics.aspx or may be obtained from:
    American Institute of Certified Public Accountants
    1211 Avenue of the Americas
    New York, NY 10036-8775
    Section 12 . Accy 1.102 of the administrative code is renumbered Accy 1.102 (intro.) and amended to read:
    Accy 1.102 Integrity and objectivity. (intro.) No person licensed to practice as a certified public accountant , as defined in the statutes, shall knowingly may do any of the following:
    (1) Knowingly misrepresent facts , and when .
    (2) When engaged in the practice of public accounting, including the rendering of tax and management advisory services, shall not subordinate his or her judgment to others. In tax practice, a member may resolve doubt in favor of the client as long as there is reasonable support for that position.
    Section 13 . Accy 1.201 (1) (intro.) of the administrative code is amended to read:
    Accy 1.201 (1) (intro.) All persons A person licensed to practice as a certified public accountant , as defined in the statutes, shall comply with all of the following general standards as interpreted by bodies designated by the American Institute of Certified Public Accountants Council, and must justify any departures therefrom . :
    Section 14 . Accy 1.202 of the administrative code is amended to read:
    Accy 1.202 Auditing standards. A person licensed to practice as a certified public accountant shall not permit the certified public accountant's name to be associated with financial statements in such a manner as to imply that the certified public accountant is acting as an independent public accountant unless the certified public accountant has complied with the applicable generally accepted auditing standards promulgated by the American Institute of Certified Public Accountants. Statements on auditing standards used by the American Institute of Certified Public Accountants auditing standards executive committee board are, for purposes of this rule chapter , considered to be interpretations of the generally accepted auditing standards, and departures from such statements must be justified by those who do not follow them.
    Section 15 . Accy 1.301 (2) (d) and (4) of the administrative code are amended to read:
    Accy 1.301 (2) (d) To preclude a certified public accountant from responding to an inquiry made by the Professional Ethics Division of the American Institute of Certified Public Accountants, by the duly constituted investigative or disciplinary body of a state society of certified public accountants, or under any state statutes or the standards of the Securities and Exchange Commission or the Public Company Accounting Oversight Board .
    (4) The prohibition in sub. (1) against disclosure of confidential information obtained in the course of a professional engagement does not apply to disclosure of such information when required to properly discharge the certified public accountant's responsibility according to the profession's standards. The prohibition would not apply, for example, to disclosure, as required by AU-C section 561 560 of Statement on Auditing Standards No. 1 , of , regarding the subsequent discovery of facts existing at the date of the auditor's report which would have affected the auditor's report had the auditor been aware of such facts.
    Section 16 . Accy 1.302 (1) and (3) of the administrative code are amended to read:
    Accy 1.302 (1) Contingent fees . Except as provided in sub. (3) (2) , a certified public accountant may charge a contingent fee provided the accountant and the client make a contingent fee agreement in writing, signed by the client, which states the method by which the fee is to be determined and describes all costs and expenses to be charged to the client. Upon conclusion of the contingent fee matter, the accountant shall provide the client with a written statement showing the fee and all the costs and expenses charged to the client.
    (3) Commissions . Except as provided in sub. (5) (4) , a certified public accountant may receive a commission provided that at the time the referral or recommendation is made, the accountant informs the client in writing of the amount and reason for the commission.
    Section 17 . Accy 1.401 (1) and (2) (a) (intro.), (c) and (e) 2. of the administrative code are amended to read:
    Accy 1.401 (1) No person licensed to practice as a certified public accountant , as defined in the statutes, shall commit an act discreditable to the profession.
    (2) (a) Client's records and accountant's workpapers . (intro.) Retention of client records after a demand is made for them is an act discreditable to the profession in violation of this section. It would be a violation of the code to retain a client's records to enforce payment. A certified public accountant's working papers are his or her the property of the certified public accountant and need not be surrendered to the client. However, in some instances working papers will contain data which that should properly be reflected in the client's books and records but which that for convenience have not been duplicated therein, with the result that the client's records are incomplete. In such instances, the portion of the working papers containing such data constitutes part of the client's records, and copies should be made available to the client upon request. If a certified public accountant is engaged to perform certain work for a client and the engagement is terminated prior to the completion of such work, the certified public accountant is required to return or furnish copies of only those records originally given to the certified public accountant by the client. Examples of working papers that are considered to be the client's records would include all of the following :
    (c) Duty discharged . Once the certified public accountant has returned the client's records or furnished the copies of such records and/or and necessary supporting data, the obligation has been discharged in this regard and it is not necessary to comply with any subsequent requests to again furnish such records.
    (e) 2. On conviction for willful failure to file an income tax return or other another document which, that the certified public accountant as an individual is required by law to file, for filing a false or fraudulent income tax return or other document on his or her or a client's behalf, or for willful aiding in the preparation and/or and presentation of a false or fraudulent income tax return of a client, or for the willful making of a false representation in connection with the determination, collection , or refund of any tax, whether it be in his or her own behalf or in behalf of a client, the board will initiate charges in every instance.
    Section 18 . Accy 1.401 (2) (f) of the administrative code is amended to read:
    Accy 1.401 (2) (f) Notification of convictions. A certified public accountant shall notify the board in writing within 60 days 48 hours after being convicted of a crime.
    Section 19 . Accy 1.404 (1) of the administrative code is amended to read:
    Accy 1.404 (1) A person who is engaged in practice as a certified public accountant , as defined in the statutes, shall not concurrently engage in any business or occupation which that would create a conflict of interest rendering professional services.
    Section 20 . Accy 1.405 of the administrative code is repealed and recreated to read:
    Accy 1.405 Firm Names. (1) An individual or firm may practice as a certified public accountant in any form of business organization permitted by state law. No person licensed to practice as a certified public accountant may practice under a firm name that is misleading as to the type of organization. A misleading CPA firm name is any of the following:
    (a) A name that contains any representation that would be likely to cause a reasonable person to misunderstand or be confused about the legal form of the firm, or about who the owners or members of the firm are, such as a reference to a type of organization or an abbreviation thereof that does not accurately reflect the form under which the firm is organized, including any of the following:
    1. A name that implies the existence of a corporation when the firm is not a corporation, such as through the use of the words "corporation," "incorporated," "Ltd.," "professional corporation," or an abbreviation thereof as part of the firm name if the firm is not incorporated or is not a professional corporation.
    2. A name that implies the existence of a partnership when there is not a partnership, such as by use of the term "partnership" or "limited liability partnership" or the abbreviation "LLP" if the firm is not such an entity.
    3. A name that includes the name of an individual who is not a CPA if the title "CPAs" is included in the firm name.
    4. A name that includes information about or indicates an association with persons who are not members of the firm, except as provided in subs. (3) and (4).
    5. A name that includes the terms "& Company," "& Associate," or "Group," if the firm does not include, in addition to the named partner, shareholder, owner, or member, at least one other unnamed partner, shareholder, owner, member, or staff employee.
    (b) A name that contains any representation that would be likely to cause a reasonable person to have a false or unjustified expectation of favorable results or capabilities, through the use of a false or unjustified statement of fact as to any material matter.
    (c) A name that claims or implies the ability to influence a regulatory body or official.
    (d) A name that includes the name of an owner whose license has been revoked for disciplinary reasons by the board, whereby the licensee has been prohibited from practicing public accountancy or prohibited from using the title CPA or holding himself or herself out as a certified public accountant.
    (2) Any of the following is a permissible type of CPA firm name if it does not otherwise violate this subchapter:
    (a) A firm name that includes the names of one or more former or present owners.
    (b) A firm name that excludes the names of one or more former or present owners.
    (c) A firm name that uses the CPA title as part of the firm name when all named individuals are owners of the firm who hold such title or are former owners who held such title at the time they ceased to be owners of the firm.
    (d) A firm name that includes the name of a non-CPA owner if the CPA title is not a part of the firm name.
    (3) A network firm may use a common brand name or share common initials as part of the firm name.
    (4) A network firm may use the network name as the firm's name, provided that it also shares one or more of the following characteristics with other firms in the network:
    (a) Common control, as defined by generally accepted accounting principles in the U.S., among the firms through ownership, management, or other means.
    (b) Profits or costs, excluding costs of operating the association, costs developing audit methodologies, manuals and training courses, and other costs that are immaterial to the firm.
    (c) A common business strategy that involves ongoing collaboration among the firms whereby the firms are responsible for implementing the association's strategy and are held accountable for performance pursuant to that strategy.
    (d) A significant part of professional resources.
    (e) Common quality control policies and procedures that participating firms are required to implement and that are monitored by the association.
    Section 21 . Chapter Accy 2 (title) of the administrative code is created to read:
    Chapter accy 2
    individual certification and
    licensure
    Section 22 . Subchapter I (title) of chapter Accy 2 [precedes Accy 2.001] of the administrative code is created to read:
    Chapter accy 2
    subchapter I
    authority and definitions
    Section 23 . Accy 2.001 of the administrative code is created to read:
    Accy 2.001 Authority . The rules in this chapter are adopted under the authority in ss. 15.08 (5) (b), 227.11 (2), and 442.04, Stats.
    Section 24 . Accy 2.002 of the administrative code is created to read:
    Accy 2.002 Definitions. In this chapter:
    (1) "Accredited" means to be listed by an accrediting agency recognized by the secretary of the federal department of education.
    Note: For a listing of accrediting agencies recognized by the secretary of the federal department of education, see
    http:/www2.ed.gov/admins/finaid/accred/accreditation_pg6.html.
    (2) "Bachelor's degree" means a baccalaureate degree normally conferred by universities and colleges at the completion of at least a 4-year, full-time, academic-year program of study.
    Note: Some students complete the 4-year bachelor's degree in less than 4 years by attending summer school or maximum course loads over a number of academic semesters.
    Section 25 . Subchapter II (title) of chapter Accy 2 [precedes Accy 2.101] of the administrative code is created to read:
    chapter accy 2
    subchapter II
    application for certification
    of individuals
    Section 26 . Accy 2.101 (Note) of the administrative code is created to read:
    Accy 2.101 Note: Application forms are available upon request to the board's office at 1400 East Washington Avenue, P.O. Box 8935, Madison WI 53708-8935 or on the Internet at www.dsps.wi.gov. An applicant with a disability will be provided reasonable accommodations.
    Section 27 . Accy 2.101 (3), (4) and (5) of the administrative code are created to read:
    Accy 2.101 (3) Evidence of at least one year of public accounting experience as required by s. Accy 2.403 and s. 442.04 (5) (b) 5., Stats.
    (4) Evidence that the applicant has successfully passed each section of the Uniform Certified Public Accountant Examination.
    (5) Successful completion of the open book professional ethics examination on statutes and rules governing the practice of public accounting in Wisconsin as set forth in s. Accy 2.306.
    Section 28 . Subchapter III (title) of chapter Accy 2 [precedes Accy 2.202] of the administrative code is created to read:
    chapter accy 2
    subchapter III
    education
    Section 29 . Accy 2.202 (1) (a) to (f) and (2) of the administrative code are created to read:
    Accy 2.202 (1) (a) Intermediate financial accounting.
    (b) Advanced financial accounting.
    (c) Cost or managerial accounting.
    (d) Taxation.
    (e) Auditing.
    (f) Accounting information systems.
    (2) At least 24 semester hours in business courses other than accounting courses, at the undergraduate or graduate level, including at least one course in each of the following subjects:
    (a) Economics.
    (b) Finance.
    (c) Marketing.
    (d) Management or organizational behavior.
    (e) Business law.
    (f) Information technology.
    Note: The courses covering the subjects of advanced financial accounting, cost or managerial accounting, taxation, and auditing under s. Accy 2.202 (1), would generally be courses taken beyond the introduction level. A course would generally be considered advanced financial accounting if it covers one or more of the following topics: foreign currency transactions, partnerships, state and local governments, not-for-profit entities, consolidations, mergers and acquisitions, intercompany transactions, fraud investigations, accounting theory, and accounting research.
    Section 30 . Subchapter IV (title) of chapter Accy 2 [precedes Accy 2.301] of the administrative code is created to read:
    chapter accy 2
    subchapter iv
    examination
    Section 31 . Accy 2.305 (1) (g) of the administrative code is created to read:
    Accy 2.305 (1) (g) Falsifying or misrepresenting educational credentials or other information required for admission to the examination.
    Section 32 . Subchapter V (title) of chapter Accy 2 [precedes Accy 2.401] of the administrative code is created to read:
    chapter accy 2
    subchapter v
    experience
    Section 33 . Accy 2.401 (2) of the administrative code is created to read:
    Accy 2.401 (2) Experience may consist of providing any type of services or advice using accounting, attest, compilation, management advisory, financial advisory, tax, or related consulting skills.
    Section 34 . Subchapter VI (title) of chapter Accy 2 [precedes Accy 2.501] of the administrative code is created to read:
    Chapter accy 2
    subchapter VI
    LICENSURE
    Section 35 . Accy 2.501 of the administrative code is created to read:
    Accy 2.501 Requirements for renewal and reinstatement of individual licenses. (1) Renewal before 5 years. An individual certified public accountant who files an application for renewal of a license within 5 years after the renewal date may renew his or her license by filing with the board all of the following:
    (a) An application for renewal on a form prescribed by the department.
    (b) The fee determined by the department under s. 440.03 (9) (a), Stats., and the applicable late renewal fee specified in s. 440.08 (3) (a), Stats.
    (2) Renewal after 5 years. An individual certified public accountant who files an application for renewal of a license 5 years or more after the renewal date may renew his or her license by filing with the board all of the following:
    (a) An application for renewal on a form prescribed by the department.
    (b) The fee determined by the department under s. 440.03 (9) (a), Stats., and the applicable late renewal fee specified in s. 440.08 (3) (a), Stats.
    (c) Verification of successful completion of examinations specified in s. Accy 2.301 or education specified in s. Accy 2.202 or both as may be prescribed by the board.
    (3) Reinstatement. (a) Notwithstanding the board's authority under s. 442.12 (1) (g), Stats., to grant a hearing pursuant to an application in writing and notice, an individual certified public accountant who has a license with unmet disciplinary requirements and who has failed to renew the license within 5 years after the renewal date, or an individual whose license has been surrendered or revoked, may apply for reinstatement of his or her license. The request shall be in writing and be accompanied by all of the following:
    1. The materials and fee specified in sub. (2) (a) to (c).
    2. Evidence of completion of disciplinary requirements, if applicable.
    3. Evidence of rehabilitation or change in circumstances warranting reinstatement of the credential.
    (b) The board shall grant reinstatement of a license following an application for reinstatement under par. (a) if the board determines the individual has satisfied the requirements under par. (a) 1. to 3. and the board determines reinstatement is warranted.
    Section 36 . Chapter Accy 3 (title) of the administrative code is repealed and recreated to read:
    chapter accy 3
    endorsement
    Section 37 . Subchapter I (title) of chapter Accy 3 [precedes Accy 3.001] of the administrative code is created to read:
    chapter accy 3
    subchapter i
    authority and definitions
    Section 38 . Accy 3.01 of the administrative code is repealed.
    Section 39 . Accy 3.02 of the administrative code is renumbered Accy 2.301 and amended to read:
    Accy 2.301 Examination. A candidate for a certified public accountant certificate shall successfully pass the certified public accountant examination set forth in s. Accy 3.03 2.302 and the professional ethics examination set forth in s. Accy 3.10 2.306 .
    Section 40 . Accy 3.03 of the administrative code is renumbered Accy 2.302, and Accy 2.302 (1), as renumbered, is amended to read:
    Accy 2.302 (1) The subjects covering the discipline of accounting in the certified public accountant examination shall be as provided in the 4 sections of the by the board of examiners of the American institute of certified public accountants uniform certified public accountant examination Institute of Certified Public Accountants Uniform Certified Public Accountant Examination . The passing grade on each section is 75 or higher.
    Section 41 . Accy 3.03 (1) (Note) of the administrative code is repealed.
    Section 42 . Accy 3.04 of the administrative code is renumbered Accy 2.303 and amended to read:
    Accy 2.303 Education required for examination . A candidate for the certified public accountant examination must possess a bachelor's or higher degree with a resident major in accounting, as defined in s. Accy 7.02 (3), or the reasonable equivalence of a resident major in accounting, as defined in s. Accy 7.03 (1), or reasonably expect to receive a degree with a resident major in accounting or its reasonable equivalence within 45 days following the date of examination complete 120 semester hours of education, including courses covering each of the subjects and the semester hours specified in s. Accy 2.202 (1) and (2) .
    Section 43 . Accy 3.05 (title) and (1) (intro.) and (a) of the administrative code are renumbered Accy 2.101 (title), (intro.) and (1), and Accy 2.101 (title) and (intro.), as renumbered, are amended to read:
    Accy 2.101 (title) Examination application Application . (intro.) A candidate for the certified public accountant examination applying for a certificate as a certified public accountant shall apply on an application form provided by the board and file the application in the board office no later than 60 days prior to the examination date . The application shall be supported by all of the following:
    Section 44 . Accy 3.05 (1) (b) (intro.) and 1. of the administrative code are consolidated, renumbered Accy 2.101 (2) and amended to read:
    Accy 2.101 (2) Proof of fulfilling the educational requirements specified in s. Accy 2.202 and s. 442.04 (5), Stats. , by submitting either: 1. Certified certified copies of transcripts for all academic work completed at an institution , as defined in s. 442.04 (5) (a), Stats., at least one of which must reflect the award of a bachelor's or higher degree , if the candidate has graduated prior to filing the application and the completion of 150 semester hours, including in courses covering each of the subjects and the semester hours specified in s. Accy 2.202 (1) and (2) .
    Section 45 . Accy 3.05 (1) (b) 2. and 3. and (c), (2) and (3) of the administrative code are repealed.
    Section 46 . Accy 3.05 (3) (Note) of the administrative code is repealed.
    Section 47 . Accy 3.055 of the administrative code is repealed.
    Section 48 . Accy 3.06 of the administrative code is renumbered Accy 2.304, and Accy 2.304 (title), (1), (3) and (4), as renumbered, are amended to read:
    Accy 2.304 (title) Examination Candidates for examination . (1) A candidate shall be allowed to sit for each section of the uniform certified public accountant examination individually and in any order .
    (3) A candidate must pass all 4 sections of the uniform certified public accountant examination within a rolling 18-month period which that begins on the date that the first section is passed.
    (4) If all 4 sections any section of the uniform certified public accountant examination are is not passed within the rolling 18-month period, credit for any section passed outside the 18-month period shall expire and that section shall be retaken.
    Section 49 . Accy 3.07 of the administrative code is repealed.
    Section 50 . Accy 3.08 of the administrative code is repealed.
    Section 51 . Accy 3.09 of the administrative code is renumbered Accy 2.305, and Accy 2.305 (1) (intro.), (a) to (d), (2) and (4), as renumbered, are amended to read:
    Accy 2.305 (1) (intro.) Cheating on the certified public accountant examination is a serious breach of integrity and indicates a lack of good professional character. Cheating on an examination includes , but is not limited to any of the following :
    (a) Communications concerning an examination being written taken between candidates inside or outside of the examination room, or copying another's answers.
    (b) Communications concerning an examination being written taken with accomplices outside of the examination room.
    (c) Substitution by a candidate of another person to sit in the examination room for the candidate and write take one or more of the examination questions or papers for the candidate.
    (d) Reference to "crib notes," test books , electronic media, or other materials , other than those provided to the candidate as part of the examination, inside or outside of the examination room during periods examinations are being written taken .
    (2) Penalties imposed by the board for cheating on the examination shall be related to the seriousness of the offense. Cheating which that was planned in advance is the most serious offense. Penalties may include the entering of a failing grade on all sections written taken for the examinations in which cheating occurred and suspension of the right to write take the next scheduled examination after the examination in which cheating occurred or to the entering of a failing grade on all sections written for the examinations in which cheating occurred and suspension of the right to write for as many as the next 6 scheduled examinations after the examination in which cheating occurred . Time within which conditional credit previously earned for passing part of the examination may be extended by board action in situations where penalties are levied, and by as long as the period of suspension.
    (4) Other jurisdictions to which a candidate may apply to write take the certified public accountant examination during a period of suspension of the right to write take the examination shall be notified of the penalty levied in Wisconsin.
    Section 52 . Accy 3.10 of the administrative code is renumbered Accy 2.306.
    Section 53 . Subchapter II (title) of chapter Accy 3 [precedes Accy 3.101] of the administrative code is created to read:
    chapter accy 3
    subchapter II
    certification by endorsement
    Section 54 . Accy 3.11 of the administrative code is renumbered Accy 2.307, and Accy 2.307 (1), as renumbered, is amended to read:
    Accy 2.307 (1) Applicants An applicant for the certified public accountant examination may request a review of their examination papers from the American Institute of certified public accountants advisory grading service his or her examination from the National Association of State Boards of Accountancy .
    Section 55 . Subchapter III (title) of chapter Accy 3 [precedes Accy 3.201] of the administrative code is created to read:
    chapter accy 3
    subchapter IIi
    foreign endorsement candidates
    Section 56 . Chapter Accy 4 (title) of the administrative code is repealed and recreated to read:
    chapter accy 4
    enforcement
    Section 57 . Subchapter I of chapter Accy 4 [precedes Accy 4.001] of the administrative code is created to read:
    chapter accy 4
    subchapter i
    authority
    Accy 4.001 Authority. The rules in this chapter are adopted pursuant to the authority in ss. 15.08 (5) (b), 227.11 (2) and 442.12, Stats.
    Section 58 . Accy 4.01 of the administrative code is renumbered Accy 5.301.
    Section 59 . Accy 4.02 of the administrative code is renumbered Accy 5.101 and amended to read:
    Accy 5.101 Firm license. A firm shall meet the ownership requirements of s. 442.08 (2) (c) 2., Stats., and be licensed as a certified public accountant if any member of the firm practices as a certified public accountant in Wisconsin other than on a temporary basis as described in s. 442.025 (4), Stats . An individual licensed as a CPA may only provide attest services, as defined in s. 442.001 (1), Stats., in a CPA firm that has a firm license .
    Section 60 . Accy 4.03 of the administrative code is renumbered Accy 5.201.
    Section 61 . Accy 4.035 of the administrative code is repealed.
    Section 62 . Accy 4.037 of the administrative code is renumbered Accy 5.102, and Accy 5.102 (3) (d), as renumbered, is amended to read:
    Accy 5.102 (3) (d) That the applicant has satisfied the peer review requirements in s. 442.087, Stats., and ch. Accy 9 6 .
    Section 63 . Accy 4.04 of the administrative code is renumbered Accy 5.302 and amended to read:
    Accy 5.302 Firms without office in this state. Firms without a bona fide office in this state, as described in s. Accy 4.06 5.303 (2), may be licensed if there is a licensed Wisconsin certified public accountant designated as the individual responsible for the firm's compliance with ch. 442, Stats., for the Wisconsin engagement or engagements.
    Section 64 . Accy 4.05 of the administrative code is renumbered Accy 5.103.
    Section 65 . Accy 4.06 of the administrative code is renumbered Accy 5.303.
    Section 66 . Accy 4.07 (title) of the administrative code is renumbered Accy 5.401 (title) and amended to read:
    Accy 5.401 (title) Change in member members of a firm.
    Section 67 . Accy 4.07 (1) of the administrative code is renumbered Accy 5.401 (1) (intro.) and amended to read:
    Accy 5.401 (1) (intro.) The board is to shall be notified by the firm in writing of changes in the member members of the firm or firm name or any of the following no later than 30 days after the change . :
    Section 68 . Accy 4.07 (2) of the administrative code is renumbered 5.401 (3).
    Section 69 . Subchapter II of chapter Accy 4 [precedes Accy 4.101] of the administrative code is created to read:
    chapter accy 4
    subchapter iI
    discipline
    Accy 4.101 Grounds for discipline. Grounds for discipline include all of the following:
    (1) Engaging in dishonesty, fraud, or deceit in obtaining a certificate or license, including submitting to the board any evidence known to be false or forged in, or in support of, an application for a certificate or license or cheating on an examination.
    (2) Knowingly making misleading, deceptive, or untrue representations in the performance of services.
    (3) Using the CPA title or providing attest services in this state without a certificate or license or without properly qualifying to practice across state lines.
    (4) Using or attempting to use a certificate or license that has been suspended or revoked.
    (5) Making any false, misleading, or deceptive statement in support of an application for a license filed by another person.
    (6) Failing to comply with professional standards as to the attest or compilation competency requirements for those who supervise attest or compilation engagements and sign reports on financial statements or other compilation communications with respect to financial statements.
    (7) Failing to comply with the applicable peer review requirements set out in ch. Accy 6.
    (8) Engaging in conduct reflecting adversely upon the licensee's fitness to perform services, including conduct constituting incompetence. In this subsection, "conduct constituting incompetence" includes gross negligence, recklessness, or repeated acts of negligence in the licensee's record of professional practice.
    (9) Engaging in professional practice while having any condition, whether physical or mental, that endangers the public by impairing skill and care in providing professional services. Evidence of such a condition includes evidence that the person has been adjudicated as mentally incompetent.
    (10) Presenting a license issued to another person as one's own.
    (11) Concealing information regarding violations by other licensees when questioned or requested by the board.
    (12) Willfully failing to file a report or record required by state or federal law; willfully impeding or obstructing the filing of such a report or record or inducing another person to impede or obstruct such filing by another person; or making or filing such a report or record that one knows to be false. A finding, adjudication, consent order, or conviction by a federal or state court, agency, or regulatory authority or by the Public Company Accounting Oversight Board that a licensee has willfully failed to file a required report or record shall be prima facie evidence of a violation of this subsection.
    (13) Having an active or stayed revocation or suspension of any occupational license or other privilege to practice any licensed occupation by or before any state, federal, foreign, or other licensing or regulatory authority, provided that the grounds for the revocation or suspension include wrongful conduct such as fraud, dishonesty, or deceit or any other conduct that evidences an unfitness of the applicant to practice public accountancy.
    Section 70 . Chapter Accy 5 (title) of the administrative code is repealed and recreated to read:
    chapter accy 5
    firm licensure
    Section 71 . Accy 5.01 (title) of the administrative code is renumbered Accy 2.401 (title) and amended to read:
    Accy 2.401 (title) Review dates of candidate's experience .
    Section 72 . Accy 5.01 of the administrative code is renumbered Accy 2.401 (1) and amended to read:
    Accy 2.401 (1) Following the successful passing of the written each section of the uniform CPA examination and upon written request by a candidate, a candidate's experience shall be reviewed by the board. The written request shall include employer verification statements and information on experience to update the experience data already in the candidate's file. Such evaluation will determine whether the candidate qualifies at that time under the requirement of having at least one year of public accounting experience or its equivalent, the sufficiency of the experience or the equivalency to be judged by the examining board. The board shall inform the candidate if additional experience is needed. Upon gaining the required additional experience, the candidate shall notify the board and provide verification.
    Section 73 . Accy 5.02 of the administrative code is renumbered Accy 2.402.
    Section 74 . Accy 5.03 of the administrative code is renumbered Accy 2.403 and amended to read:
    Accy 2.403 Public accounting experience. An individual must have at least one year of public accounting experience or its equivalent as determined by the board. Experience shall be acquired after the applicant has earned a degree described in s. 442.04 Stats., that qualifies the applicant to take the CPA examination 120 semester hours of education from an accredited college or university, including courses covering each of the subjects and the semester hours specified in s. Accy 2.202 (1) and (2). This experience must have been acquired within 5 years prior to applying for the certification as a certified public accountant .
    Section 75 . Accy 5.04 of the administrative code is renumbered Accy 2.404.
    Section 76 . Accy 5.05 of the administrative code is renumbered Accy 2.405.
    Section 77 . Accy 5.06 of the administrative code is repealed.
    Section 78 . Accy 5.07 of the administrative code is renumbered Accy 2.406.
    Section 79 . Subchapter I (title) of chapter Accy 5 [precedes Accy 5.101] of the administrative code is created to read:
    chapter accy 5
    subchapter I
    APPLICATION FOR FIRM LICENSURE
    Section 80 . Subchapter II (title) of chapter Accy 5 [precedes Accy 5.201] of the administrative code is created to read:
    chapter accy 5
    subchapter II
    SOLE PROPRIETOR
    Section 81 . Subchapter III (title) of chapter Accy 5 [precedes Accy 5.301] of the administrative code is created to read:
    chapter accy 5
    subchapter III
    OFFICEs; internet practice
    Section 82 . Accy 5.304 of the administrative code is created to read:
    Accy 5.304 Internet practice. A CPA firm offering or rendering professional services via an Internet site shall provide in the Internet site's homepage, a name, an address, and a principal state of licensure as a means for regulators and the public to contact a responsible licensee in charge at the firm regarding complaints, questions, or regulatory compliance.
    Section 83 . Subchapter IV (title) of chapter Accy 5 [precedes Accy 5.401] of the administrative code is created to read:
    chapter accy 5
    subchapter IV
    firm MEMBERs
    Section 84 . Accy 5.401 (1) (a) to (d) and (2) of the administrative code are created to read:
    Accy 5.401 (1) (a) Formation of a new firm.
    (b) Termination of a firm.
    (c) Change in the management of any branch office in this state.
    (d) Establishment of a new branch office or the closing or change of address of a branch office in this state.
    (2) The board shall be notified by a firm in writing of any addition of a partner, member, manager or shareholder or the retirement, withdrawal or death of a partner, member, manager or shareholder as of January 1 of each year.
    Section 85 . Subchapter I of chapter Accy 6 [precedes Accy 6.001] of the administrative code is created to read:
    chapter accy 6
    subchapter I
    authority and definitions
    Accy 6.001 Authority. The rules in this chapter are adopted pursuant to the authority in ss. 15.08 (5) (b), 227.11 (2) and 442.087 (3), Stats.
    Accy 6.002 Definitions. As used in this chapter:
    (1) "Engagement review" means a peer review in which the peer reviewer evaluates and reports on engagements submitted by a firm that performs at its highest level of service, only services under SSARS, or services under the SSAE that are not included in a system review in order for the peer reviewer to determine whether the engagements submitted for review conform to applicable professional standards in all material respects.
    (2) "PCAOB" means the Public Company Accounting Oversight Board that conducts firm inspection of certified public accounting firms' Securities and Exchange Commission issuer practices and other engagements subject to its inspection process.
    (3) "Peer review" means a study, appraisal, or review of one or more aspects of the attest services work of a licensee of a registered firm in the practice of public accounting, in accordance with a peer-review program, by a person or persons who hold licenses in this jurisdiction or another jurisdiction and who are not affiliated with the person or firm being reviewed.
    (4) (a) "Peer-review program" means the peer-review process developed and maintained by the American Institute of Certified Professional Accountants and administered by any of the following:
    1. The Wisconsin Institute of Certified Professional Accountants.
    2. A peer-review program administrator approved by a board that regulates certified public accountants in any other CPA licensing jurisdiction.
    (b) "Peer-review program" includes the standards for administering, performing, and reporting on peer reviews, oversight procedures, and training and related guidance materials.
    Note: The AICPA Standards for Performing and Reporting on Peer Reviews are available on the Internet at http://www.aicpa.org/Research/Standards/Peer- Review/DownloadableDocuments/PeerReviewStandards.pdf.
    (5) "Peer-review reports" means reports issued by the peer reviewer or peer-reviewing firm in accordance with a peer-review program and that program's peer-review standards.
    (6) "Peer-review standards" means professional standards for administering, performing, and reporting on peer reviews under a peer-review program.
    (7) "Peer reviewer" means a certified public accountant or accounting firm responsible for conducting the peer review holding a valid and active license to practice public accounting in good standing issued by this jurisdiction or another jurisdiction who meets the peer reviewer requirements established in the peer-review standards.
    (8) "SAS" means the Statements on Auditing Standards issued by the auditing standards board of the American Institute of Certified Public Accountants.
    (9) "SSAE" means the Statements on Standards for Attestation Engagements issued by the auditing standards board of the American Institute of Certified Public Accountants.
    (10) "SSARS" means the Statements on Standards for Accounting and Review Services issued by the accounting and review services committee of the American Institute of Certified Public Accountants.
    (11) "System review" means a peer review in which the peer reviewer determines whether the firm's system of quality control for its accounting and auditing practice is designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards, including the Statements on Quality Control Standards, No. 8 of the American Institute of Certified Public Accountants, in all material respects for firms that at the firm's highest level of service, perform engagements under the SAS, Government Auditing Standards, examinations under the SSAE, or pursuant to the standards of the PCAOB not subject to permanent inspection by the PCAOB.
    Section 86 . Subchapter II (title) of chapter Accy 6 [precedes Accy 6.101] of the administrative code is created to read:
    chapter accy 6
    subchapter Ii
    firm renewal
    Section 87 . Subchapter III (title) of chapter Accy 6 [precedes Accy 6.201] of the administrative code is created to read:
    chapter accy 6
    subchapter IiI
    reports
    Section 88 . Subchapter IV (title) of chapter Accy 6 [precedes Accy 6.301] of the administrative code is created to read:
    chapter accy 6
    subchapter IV
    conducting peer reviews
    Section 89 . Accy 6.303 of the administrative code is created to read:
    Accy 6.303 Extensions. The organization administering the peer-review program may grant extensions for completing peer reviews as long as the organization is notified by the firm within 14 days prior to the due date of the peer review. Extensions may be granted for any of the following reasons:
    (1) An adverse health condition, including an illness or injury.
    (2) Military service.
    (3) Other good cause clearly outside of the control of the public accounting firm.
    Section 90 . Accy 6.304 of the administrative code is created to read:
    Accy 6.304 Firm structure changes. In the event a firm is merged, otherwise combined, dissolved, or separated, the organization administering the peer review shall determine which firm, if any, is considered to be the succeeding firm. The succeeding firm shall retain its peer review status and the review due date.
    Section 91 . Chapter Accy 7 (title) of the administrative code is repealed.
    Section 92 . Accy 7.01 of the administrative code is repealed.
    Section 93 . Accy 7.02 of the administrative code is repealed.
    Section 94 . Accy 7.03 of the administrative code is repealed.
    Section 95 . Accy 7.035 (intro.) and (2) of the administrative code are consolidated, renumbered Accy 2.202 (intro.) and amended to read:
    Accy 2.202 Education required to take the examination for certification . (intro.) A person may not take the examination leading to the candidate applying for a certificate to practice as a certified public accountant unless the person has, as part of must, in the course of having completed the 150 semester hours of education , met one of the following conditions: (2) Earned have earned a baccalaureate or graduate degree from a an accredited business school or college of business that is accredited by an accrediting agency recognized by the board and completed at all of the following:
    (1) At least 24 semester hours in accounting at the undergraduate level or 15 semester hours at the graduate level, or an equivalent combination, including courses covering the subjects of financial accounting, auditing, U.S. taxation, and management accounting. at least one course in each of the following subjects:
    Section 96 . Accy 7.035 (1), (3), (4) and (5) of the administrative code are repealed.
    Section 97 . Accy 7.04 (1) of the administrative code is renumbered Accy 2.308 and amended to read:
    Accy 2.308 Transfer of credit applicant scores . Applicants who have passed all or part of the uniform certified public accountant examination in another jurisdiction but who have not yet received their certified public accountant certificate shall be able to transfer grades scores in subjects passed to Wisconsin provided that:
    (1) Grades Scores transferred must be certified to the board by the other jurisdiction and must be passed in accordance with rules applicable to Wisconsin candidates.
    (2) Transfer of grades scores must be accepted by board action and the applicant notified in a manner similar to the action on grades scores for Wisconsin applicants.
    Section 98 . Accy 7.04 (2) of the administrative code is repealed.
    Section 99 . Accy 7.05 of the administrative code is renumbered Accy 3.101, and Accy 3.101 (1) (c), as renumbered, is amended to read:
    Accy 3.101 (1) (c) The applicant has been approved under s. Accy 8.05 3.202 .
    Section 100 . Accy 7.06 of the administrative code is repealed.
    Section 101 . Accy 7.07 of the administrative code is renumbered Accy 2.102.
    Section 102 . Chapter Accy 8 (title) of the administrative code is repealed.
    Section 103 . Accy 8.01 (title) of the administrative code is renumbered Accy 3.001 (title).
    Section 104 . Accy 8.01 (1) of the administrative code is renumbered Accy 3.001.
    Section 105 . Accy 8.02 of the administrative code is renumbered Accy 3.002.
    Section 106 . Accy 8.03 (title), (1), (3), (4), (5) and (6) of the administrative code are renumbered Accy 3.102 (title), (1), (2), (3), (4) and (5).
    Section 107 . Accy 8.04 of the administrative code is renumbered Accy 3.201 and amended to read:
    Accy 3.201 Foreign candidates. (1) Candidates holding certifications from foreign countries shall establish their qualifications for a certificate by endorsement as set forth in ss. Accy 8.02 and 8.03 3.002 and 3.102 , or in s. Accy 8.05 3.202 .
    (2) Except as provided in s. Accy 8.05 3.202 , education qualifications in foreign countries are not comparable to those in Wisconsin. As no foreign school is accredited by the North Central Association of Colleges and Schools or its regional equivalent an accrediting agency that is recognized by the secretary of the federal department of education , evidence of acceptance without deficiency into a graduate program in a school accredited by the North Central Association of Colleges and Schools or its regional equivalent an agency that is recognized by the secretary of the federal department of education will be accepted as evidence of equivalence for a bachelor's or higher degree. The education acquired must constitute the reasonable equivalence of a resident major s set forth in s. Accy 7.03.
    (3) Except as provided in s. Accy 8.05 3.202 , examinations in foreign countries have not been established as being comparable to those in the United States. Candidates must establish at least minimum qualifications in United States practice related to areas of business law, federal income taxes, generally accepted auditing standards, and generally accepted accounting principles. The writing taking of uniform certified public accountant examinations in these areas would be adequate evidence, although other evidence may be accepted if validated.
    (4) Except as provided in s. Accy 8.05 3.202 , experience must include practice using United States related techniques as noted in sub. (3). Experience will be considered on its merit without restriction as to where it was acquired, so long as it is relevant to United States practice.
    Section 108 . Accy 8.05 of the administrative code is renumbered Accy 3.202, and Accy 3.202 (2) (d), as renumbered, is amended to read:
    Accy 3.202 (2) (d) The applicant has successfully completed the professional ethics examination in s. Accy 3.10 2.306 .
    Section 109 . Chapter Accy 9 (title) of the administrative code is renumbered Chapter Accy 6 (title).
    Section 110 . Accy 9.01 of the administrative code is repealed.
    Section 111 . Accy 9.02 (Note) of the administrative code is renumbered Accy 6.101 (Note) and amended to read:
    Accy 6.101 Note: The following questions are intended to assist firms in determining whether a peer review is required for renewal. An affirmative response to any part of any question means that a peer review is required. Caution: This list is not exclusive. Refer to the standards if in doubt.
    1. Does your firm audit SEC clients, including employer-sponsored plans required to file a form 11-K with the SEC?
    2. Does your firm currently perform the following types of engagements?
    Engagements applying Statements on Auditing Standards (SASs) - Audits?
    Agreed-upon procedures?
    Engagements applying Statements on Standards for Accounting and Review Services (SSARS)?
    Reviews of financial statements?
    Compilations of financial statements with disclosures?
    Compilations of financial statements where "Selected Information-Substantially All Disclosures Required Are Not Included?"
      Compilations of financial statements that omit substantially all disclosures?
    Engagements applying Statements on Standards for Attestation Engagements (SSAE)?
    Engagements applying International Financial Reporting Standards (IFRS) or International Auditing Standards (IAS)?
    Examinations of prospective financial statements under SAARS?
    Compilations of prospective financial statements under SAARS?
    Agreed-upon procedures of prospective financial statements?
    Examinations of written assertions?
    Reviews of written assertions?
    Agreed-upon procedures of written assertions?
    Engagements under Government Auditing Standards (Yellow Book)?
    Engagements applying PCAOB Auditing Standards?
    Engagements applying PCAOB Attestation Standards?
    Work performed as subject to requirements of the AICPA peer-review program?
    Section 112 . Accy 9.02 of the administrative code is renumbered Accy 6.101, and Accy 6.101 (1) and (2), as renumbered, are amended to read:
    Accy 6.101 (1) After January 1, 2005, an An application for renewal by a certified public accounting firm that provides or offers to provide attest services shall include a description of at least one peer review of the firm undergone through a peer review program approved by the board, or approved by a board that regulates certified public accountants in another state, within 3 years preceding the application for renewal. The description shall identify the board-approved peer review program administrator, if administered by a peer-review program administrator approved by a board that regulates certified public accountants in any other CPA licensing jurisdiction , the outcome of the review , and the year under review.
    (2) A firm is exempt from the peer review requirements in this section if it does not offer or perform attest services as defined in s. 442.001 (1), Stats .
    Section 113 . Accy 9.03 of the administrative code is renumbered Accy 6.201, and Accy 6.201 (intro.), as renumbered, is amended to read:
    Accy 6.201 Reports Report from board-approved review programs peer-review program . (intro.) Each board-approved peer review The peer-review program described under s. Accy 6.002 (4) (a) 1. shall report the following to the board by December 1 of each even-numbered year:
    Section 114 . Accy 9.04 of the administrative code is repealed.
    Section 115 . Accy 9.05 of the administrative code is repealed.
    Section 116 . Accy 9.06 of the administrative code is repealed.
    Section 117 . Nonstatutory provisions.
    (1) The accounting examining board shall research the feasibility of rules establishing continuing education requirements for renewal of a license under section 442.08 (1) of the statutes. The board shall prepare a report describing its findings and recommendations, including a description of any suggested changes to the statutes or the board's rules, and shall submit the report to the appropriate standing committees of the legislature in the manner provided under section 13.172 (3) of the statutes no later than December 31, 2016.
    (2) The requirements under sections 227.21 (2) (a) and 442.01 (2) of the statutes to obtain the consent of the attorney general and to hold a public hearing do not apply with respect to the enactment of this act.
    Section 118 . Effective dates. This act takes effect on the day after publication, except as follows:
    (1) Notwithstanding section 227.265 of the statutes, the treatments of provisions of the administrative code take effect on the first day of the 3rd month following publication of this act in the Wisconsin Administrative Register.

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