Public Accountancy

Instructions for Completing Certification of Employer Form 4B

Experience requirements.

An applicant must present evidence, satisfactory to the State Board for Public Accountancy, of diversified experience involving the application of generally accepted accounting principles and the application of generally accepted auditing standards in the practice of public accountancy, or the satisfactory equivalent thereof as determined by the State Board. The documentation of experience must demonstrate diversified experience that would enable the applicant, once licensed, to conduct and report on an independent audit of a small but complex entity with a minimum of supervision.

Two years of qualifying experience are required for licensure. Applicants who have completed advanced study in an approved accounting program or its equivalent may petition for a waiver of one year of experience. A significant portion of public accounting experience - - a minimum of 75% - - must be in the areas of auditing services and financial statement preparation; at least one-half of this time must consist of auditing services alone. Full-time employment is considered to be a 5-day, 35-40 hour week, excluding overtime. Acceptable part-time (no less than 20 hours per week) experience will be considered on the basis of one week of experience for every two weeks worked.

In the case of non-public accounting, a minimum of 75% of the experience must consist solely of auditing services. Experience in private or governmental accounting or auditing of a character and for a length of time satisfactory to the State Board may be determined to be substantially equivalent to audit experience obtained by independent accountants engaged in public practice which includes the attest function. This experience shall be devoted principally to the comprehensive application of generally accepted accounting principles and generally accepted auditing standards to diversified field examinations. These examinations shall culminate in the submission of independent reports on financial records and statements that are relied upon by a third party. Limited scope auditing activities shall not be accepted as equivalent experience. See the Board policy statement regarding non-public audit experience in Appendix A of this application packet. Experience must be attested to by a CPA licensed in a division of the United States or by a public accountant licensed in New York, provided such individual supervised the applicant in the employing organization.

Items 7 A-F: Public accounting firms only

Indicate the approximate percentage of the applicant's time devoted to each category. The overall objective of assignments should generally determine the category.

• A. Auditing Services:
  1. The applicant must be involved in examining financial statements of clients where the application of generally accepted auditing standards has been employed for the purpose of expressing an opinion that the financial statements are presented in accordance with generally accepted accounting principles. The extension of the examination to the preparation of related income tax returns and management letters by the applicant who participated in the examination may also be included in this category. Involvement in the full scope audit is a criteria for inclusion of these activities.
  2. The applicant must be involved in examining financial statements of clients when certain auditing procedures have been applied but a disclaimer is expressed, including Reviews as defined by SSARS 1. The extension of the examination to the preparation of related income tax returns and management letters may also be included in this category.
  
  
• B. Financial Statement Preparation: The independent preparation of financial statements from the books of account without audit, including Compilations as defined by SSARS 1, and performing related services in which the applicant has demonstrated a knowledge of generally accepted accounting principles. A limited set of tax related activities (for example: review of financial projections, preparation of accountings for estates and fiduciaries and related tax returns, etc.) may be included in this category.
  
  
• C. Bookkeeping Services (i.e. write ups): Preparing books of original entry, preparing payrolls, checks, and posting to subsidiary ledgers. Posting to the client's general ledger in connection with preparing financial statements should be classified under A or B above, depending upon the extent of auditing procedures applied.
  
  
• D. Tax Services:
  1. Preparing corporation, fiduciary, partnership and individual tax returns from information compiled by others, or from unaudited data furnished by clients.
  2. Preparing payroll tax reports, sales and similar tax returns.
  3. Researching tax law; tax planning for clients; preparing protests, Tax Court petitions, and briefs; and representing clients before taxing authorities.
  4. Examining tax returns.
  
  
• E. Management Services:
  1. Designing and installing accounting, cost or other systems, when not related to an extension of auditing assignments.
  2. Other management advisory services.
     
     
• F. Other:
  1. Other services for clients not included in bookkeeping services.
  2. Other work not in connection with services to clients, e.g. filing tax law services, keeping employer's records, administration, etc.

Item 7G: Nonpublic accounting and part-time public accounting experience only

• G. Equivalent Auditing Experience:

  So the Board may evaluate the applicant's nonpublic accounting or part-time public accounting experience, you must attach a statement, signed by the attesting CPA, describing each individual fieldwork engagement performed for which experience credit is claimed. Set forth as much of the following as is practical, and indicate the extent to which the applicant has applied generally accepted accounting principles and generally accepted auditing standards:

  1. The nature, purpose and location of each engagement and a brief outline of the types of auditing procedures employed by the applicant.
  2. The approximate time the applicant was involved on each engagement.
  3. The type(s) of reports issued and addresses. Three independent audit reports on financial records and statements must be included.
  4. The relationship between the organization examined and the applicant's organization. Nature of applicant's organization. (Not required for part-time public accounting.)
  5. The engagements which were under the direct supervision of the certifying person or other Certified Public Accountants in the organization, and the periods covered thereby. (Required for nonpublic accounting experience only.)
     
     
  Please note: a job description (generic or specific) will not be accepted as a substitute for the foregoing. For further explanation of acceptable equivalent auditing experience, see the Board's Policy Statement on Nonpublic Accounting Experience.