Public Accountancy

Education Law

Article 149, Public Accountancy

§ 7400. Introduction.

This article applies to the profession of public accountancy. The general provisions for all professions contained in article one hundred thirty of this title apply to this article.

§ 7401. Definition of practice of public accountancy.

The practice of the profession of public accountancy is defined as holding one`s self out to the public, in consideration of compensation received or to be received, offering to perform or performing for other persons, services which involve signing, delivering or issuing or causing to be signed, delivered or issued any financial, accounting or related statement or any opinion on, report on, or certificate to such statement if, by reason of the signature, or the stationery or wording employed, or otherwise, it is indicated or implied that the practitioner has acted or is acting, in relation to said financial, accounting or related statement, or reporting as an independent accountant or auditor or as an individual having or purporting to have expert knowledge in accounting or auditing.

§ 7402. Practice of public accountancy and use of title "certified public accountant" or "public accountant".

Only a person licensed or otherwise authorized to practice under this article shall practice public accountancy and use the title "certified public accountant" or the designation "C.P.A." or "public accountant" or any other derivative or designation provided in section seventy-four hundred eight.

§ 7403. State board for public accountancy.

A state board for public accountancy shall be appointed by the board of regents on recommendation of the commissioner for the purpose of assisting the board of regents and the department on matters of professional licensing and professional conduct in accordance with section sixty-five hundred eight of this title. The board shall be composed of not less than twenty licensed accountants, not less than fifteen of whom shall be licensed as certified public accountants in this state, and the board should be kept in such proportion if it is ever increased. An executive secretary to the board shall be appointed by the board of regents on recommendation of the commissioner and shall be a certified public accountant licensed in this state.

§ 7404. Requirements for a license as a certified public accountant.

1. To qualify for a license as a certified public accountant, an applicant shall fulfill the following requirements:
   1. Application: file an application with the department;
   2. Education: have received an education, including a bachelor`s or higher degree based on a program in accountancy, in accordance with the commissioner`s regulations;
   3. Experience: have experience satisfactory to the board and in accordance with the commissioner`s regulations;
   4. Examination: pass a written examination satisfactory to the board and in accordance with the commissioner`s regulations and the requirement with respect to such examination may not be waived.
   5. Age: be at least twenty-one years of age;
   6. Citizenship: meet no requirements as to United States citizenship;
   7. Character: be of good moral character as determined by the department; and
   8. Fees: pay a fee of two hundred twenty dollars to the department for admission to a department conducted examination and for an initial license, a fee of one hundred fifteen dollars for each reexamination, a fee of one hundred thirty-five dollars for an initial license for persons not requiring admission to a department conducted examination, and a fee of two hundred ten dollars for each triennial registration period.
2. In lieu of professional requirements specified in subparagraphs (2) and (3) of subdivision one of this section, fifteen years in the practice of public accountancy satisfactory to the board may be accepted by the department.

§ 7405. Requirements for a license as a public accountant.

To qualify for a license as a public accountant, an applicant shall fulfill the following requirements:

1. Application: file an application with the department;
2. Declaration of intention:
   1. Have filed a declaration of intention to practice as a public accountant with the department on or before October first, nineteen hundred fifty-nine, on the basis of evidence that the applicant was engaged for a total of six years during the ten years immediately preceding April twenty-third, nineteen hundred fifty-nine, in the practice of public accountancy as an individual practitioner or as a partner of a partnership or as an employee of such an individual practitioner or partnership engaged in the practice of public accountancy or as an employee of a department, agency or instrumentality of the United States, the state, or a political subdivision of the state in which employment his duties entailed the performance of all or some of the services which would constitute the practice of public accountancy, or a combination of the foregoing duties, or in the opinion of the board the equivalent thereof;
   2. Establish by evidence satisfactory to the board that at the date of the filing of said declaration of intention, the applicant had complied with the conditions established by law on April twenty-third, nineteen hundred fifty-nine, has not violated the provisions relating to practice in public accountancy, and is about to engage in the practice of public accountancy as his principal occupation as an individual practitioner or as a partner of a partnership;
3. Character: be of good moral character as determined by the department; and
4. Fees: pay a fee to the department for an initial license of two hundred twenty dollars, and a fee of two hundred ten dollars for each triennial registration period.

§ 7406. Limited permits.

1. On recommendation of the board, the department may issue a limited permit to an applicant of good moral character who is the holder of a certificate, license or degree in a foreign country constituting a recognized qualification for the performance in such country of the acts set forth in section seventy-four hundred one, provided the applicant has professional qualifications satisfactory to the board, the applicant resides or has a place for the regular transaction of business within the state, and equal recognition is granted by the foreign country concerned to certified public accountants and public accountants licensed in this state. Such limited permit shall be valid for a period of two years and may be renewed on recommendation of the board. Such permit shall authorize the applicant to use only the title or designation under which he is generally known in his own country, followed by the name of the country from which he received his certificate, license or degree, notwithstanding the provisions of subdivision two of section seventy-four hundred eight of this article.
2. Fees. The fee for each limited permit and each renewal shall be one hundred five dollars.

§ 7407. Exempt persons.

Nothing contained in this article shall be construed to prohibit:

1. Any person who is an officer of a corporation or partner of a partnership or sole proprietor of a business enterprise or member of a joint venture or member of a committee appointed by stockholders, creditors, courts, trustees, executors or administrators, or an employee of any of the foregoing, in his capacity as such, from signing, delivering, or issuing any financial, accounting or related statement or report thereon, relating to said corporation, partnership, business venture, joint venture, committee, trust or estate, provided, however, that in so doing such person does not hold himself out to be a certified public accountant or public accountant;
2. An attorney-at-law or partnership of attorneys-at-law from signing a financial, accounting or related statement or report thereon, prepared by him or them as incidental to the practice of law;
3. Any individual from serving as an employee of a certified public accountant, public accountant or partnership licensed under this article;
4. Any individual, not engaged in practice as a certified public accountant or public accountant within the state, from performing services within the state which are incidental to the practice conducted by him outside the state;
5. Any official or employee of a governmental unit, agency or instrumentality in the performance of his official duties from signing, delivering or issuing any financial, accounting, or related statement or report thereon relating to said unit, agency or instrumentality; or
6. A corporation chartered in the state of New York to engage in the practice of public accountancy and so engaged as its principal activity on and before the first day of July, nineteen hundred fifty-nine, from continuing in such practice as long as its corporate acts comply with the board of regents rules, provided all employees of such corporation performing any acts constituting the practice of public accountancy as defined herein and who are not certified public accountants or public accountants licensed under this article shall in the performance of such acts be under the supervision of certified public accountants or public accountants licensed in this state.

§ 7408. Special provisions.

1. Nothing contained in this article shall be deemed to prohibit two or more certified public accountants or two or more public accountants, or any combination thereof, from forming a partnership; provided, however, that no partnership shall use the words "certified public accountants" or the letters "C.P.A.`s" in connection with its name unless each partner of such partnership, resident or engaged within the United States in practice is in good standing as a certified public accountant of one or more of the states or political subdivisions of the United States, and each partner thereof resident or engaged in practice within the state is licensed under this article.
   1. A registration shall be issued to a partnership upon payment of the fee prescribed by the commissioner upon application showing that:
      1. At least one partner of such partnership is licensed under this article and his license to practice is not currently suspended, annulled or revoked in any jurisdiction and he is regularly engaged in practice on behalf of the partnership within the state;
      2. The partnership consists of at least two present members; and
      3. The partnership contains at least as many present partners as the total number of names in the firm name, or, where the word "company" or abbreviation "co." is used, the number of present partners shall be greater than the number of names in the firm name.
   2. Such registration may be revoked after a hearing conducted in accordance with the provisions of section sixty-five hundred ten of this title upon proof:
      1. That the registration was obtained by either misrepresentation or suppression of any material fact;
      2. That the license or authorization to practice of any partner is suspended, annulled or revoked in any jurisdiction;
      3. That any partner in such a partnership is or has been engaged in the practice of public accountancy in this state who is not licensed in this state; or
      4. That the partnership failed to file the written notification required pursuant to paragraph d of this subdivision of this section.
   3. Personal service on any general partner of a notice of hearing to revoke a partnership registered hereunder shall be deemed service on the partnership.
   4. A partnership registered to practice pursuant to this section shall file with the department on or before July first of each year written notification of:
      1. Any admission of a partner,
      2. Any retirement or death of a partner,
      3. Any termination of partnership, or
      4. Any occurrence of any event or events which would eliminate as to such partnership conformity with the applicable requirements of this section.
   5. Partnerships shall register triennially and pay a fee of fifty dollars.
2. Any person shall be guilty of a class A misdemeanor who shall use, in connection with the practice of public accountancy, or in any manner tending to imply that he is an independent accountant or auditor, the designations "chartered accountant", "certified accountant", "expert accountant", "certified tax accountant", "tax accountant", "enrolled accountant", "enrolled public accountant", "registered accountant", "licensed accountant", "incorporated accountant", "registered public accountant", "licensed public accountant", or any abbreviation thereof, or the letters "C.A.", "E.A.", "C.T.A.", "T.A.", "E.P.A.", "R.A.", "L.A.", "I.A.", "P.A.", "R.P.A.", or, "L.P.A.", except as provided elsewhere in this article, or any other designation tending to imply that he has expert knowledge in accounting or auditing.

§ 7409. Mandatory continuing education.

1. 1. Each licensed certified public accountant and public accountant required under article one hundred thirty of this chapter to register triennially with the department to practice in the state shall comply with the provisions of the mandatory continuing education requirements except as set forth in paragraphs (b) and (c) of this subdivision. Certified public accountants and public accountants who do not satisfy the mandatory continuing education requirements shall not practice until they have met such requirements, they have paid all applicable fees, and they have been issued a registration or conditional registration certificate.
   2. Certified public accountants and public accountants shall be exempt from the mandatory continuing education requirement for the triennial registration period during which they are first licensed. In accordance with the intent of this section, adjustments to the mandatory continuing education requirement may be granted by the department for reasons of health certified by a physician, for extended active duty with armed forces of the United States, or for other good cause acceptable to the department which may prevent compliance.
   3. A licensed certified public accountant and a public accountant not engaged in public practice as an individual practitioner, a partner of a partnership, a shareholder of a professional service corporation, or an employee of such practice units, shall be exempt from the mandatory continuing education requirement and payment of the mandatory continuing education fee upon the filing of a statement with the department declaring such status. Any licensee who returns to the public practice of certified public accountancy or public accountancy during the triennial registration period shall notify the department prior to reentering the profession and shall pay the current mandatory continuing education fee and shall meet such mandatory continuing education requirements as shall be prescribed by regulations of the commissioner.
2. During each year of the triennial registration period beginning September first, nineteen hundred ninety and ending September first, nineteen hundred ninety-three and each registration period thereafter, an applicant for registration shall have the option of (a) completing a minimum of forty contact hours of acceptable formal continuing education in recognized areas of study, or (b) completing a minimum of twenty-four contact hours of acceptable formal continuing education concentrated in any one of the following three subject areas: auditing, accounting, or taxation. A licensee who has not satisfied the mandatory continuing education requirements shall not be issued a triennial registration certificate by the department and shall not practice unless and until a conditional registration certificate is issued as provided in subdivision three of this section. No hourly credits may be transferred from one year to a subsequent year. The individual licensee shall determine the selection of courses or programs of study pursuant to subdivision four of this section.
3. The department, in its discretion, may issue a conditional registration to a licensee who fails to meet the continuing education requirements established in subdivision two of this section but who agrees to make up any deficiencies and take any additional education which the department may require. The fee for such a conditional registration shall be the same as, and in addition to, the fee for the triennial registration. The duration of such conditional registration shall be determined by the department. Any licensee who is notified of the denial of registration for failure to submit evidence, satisfactory to the department, of required continuing education and who practices public accountancy without such registration, may be subject to disciplinary proceedings pursuant to section six thousand five hundred ten of this chapter.
4. As used in subdivision two of this section, "acceptable formal continuing education" shall mean formal programs of learning which contribute to professional practice and which meet the standards prescribed by regulations of the commissioner. Recognized areas of study shall include but not be limited to: accounting, auditing, taxation, advisory services, specialized knowledge and applications related to specialized industries, and such other technical areas appropriately related to the practice of accounting as may be acceptable to the department. To fulfill the mandatory continuing education requirement, programs must be taken from sponsors approved by the department, pursuant to the regulations of the commissioner.
5. The mandatory continuing education fee shall be determined by the regents, shall be payable on or before the first day of each triennial registration period, and shall be paid in addition to the triennial registration fee required by section seven thousand four hundred four of this article.