Public Accountancy

Mandatory Continuing Education

Frequently Asked Questions

Introduction – The Requirement

All licensed CPAs and PAs engaged in the practice of public accountancy in New York State are required to complete continuing education requirements. The mandatory CPE requirements become effective in a licensee’s second triennial registration period. CPE is not required during a licensee’s initial triennial registration period.

In each September 1 – August 31 CPE reporting year (except during the licensee’s initial triennial registration period) the licensee may either:

• Complete a minimum of 40 contact hours of acceptable formal continuing education in any of the recognized study areas, or
• Complete a minimum of 24 contact hours of acceptable formal continuing education concentrated in one of three particular subject areas: auditing, or accounting, or taxation.

Additionally, for all licensees subject to mandatory CPE requirements, at least 4 of the contact hours taken during any triennial registration period must be in professional ethics. If the licensee chooses the 24 concentrated contact hour option in each of the three years of the triennial registration period, then the four contact hours of professional ethics must be in one of the three subject area in which study was completed.

The continuing education requirements are covered in Section 7409 of the New York State Education Law and Section 70.6 of the Regulations of the Commissioner of Education, which can be linked to from this web page. This web page is designed to respond to frequently asked questions about the CPE requirements for NYS licensed CPAs and PAs. It is not a substitute for reading the provisions of the applicable laws, rules and regulations.

General Information

1. Who is required to take continuing education and how many hours must be completed?

If you are a licensed CPA or PA and you hold out to the public and perform audit and/or attest functions or you are employed by a public accounting firm in any capacity, you are required to participate in Continuing Professional Education (CPE).

The CPE requirement begins on the first September 1 that is, or follows, the start date of a your second triennial registration period. Annually, during the period from September 1 - August 31, you must complete either:

• a minimum of 40 contact hours of acceptable formal continuing education in any of the recognized study areas, or
• a minimum of 24 contact hours of acceptable formal continuing education concentrated in one of three particular subject areas: auditing, or accounting, or taxation.

2. Who is exempt from continuing education requirements?

• All newly licensed CPAs (including endorsements from other licensing jurisdictions) are automatically exempted from meeting CPE requirements during their initial triennial registration period. CPE requirements do not take effect until the second triennial registration period.
• Licensees who are not engaged in public practice or employed by a public accounting firm may receive an exemption from mandatory CPE requirements by filing a statement with the Department. This statement can be filed in one of two ways - Check "No" and "will not be in public practice in NYS" to questions 5a and 5b respectively on your re-registration application or file a Public Accountancy Mandatory Continuing Education Exemption Claim form. You may request that a copy of the form be mailed to you (it is not available on-line) by sending e-mail to CPABD@mail.nysed.gov or calling the State Board for Public Accountancy office at 518-474-3817 ext 160.
• A licensee who is engaged in public practice may receive an exemption from CPE requirements if he or she is prevented from complying because of a health related problem, extended active duty in the United States Armed Forces, or other situation that imposes extreme hardship. To obtain such a waiver the licensee must either check "No" and "in practice in NYS, but claiming a health exemption" on his or her registration form, or submit a Public Accountancy Mandatory Continuing Education Exemption Claim form. A copy of the form can be requested by sending e-mail to CPABD@mail.nysed.gov or calling the State Board for Public Accountancy office at 518-474-3817 ext 160. A licensee claiming such an exemption must be able to provide appropriate documentation to substantiate the claim upon request by the Education Department.

3. When and how do I report completion of my required continuing education?

The CPE reporting year always runs from September 1 to August 31, regardless of the start and end dates of your registration period. You are required to complete the appropriate number of CPE contact hours between September 1 and August 31 every year, beginning on the September 1st that is, or follows, the first day of your second triennial registration period. You do not need to report your CPE compliance on an annual basis. You are required, however to affirm whether you were in compliance with CPE requirements for the triennial registration period that is ending on your triennial re-registration form.

You are responsible for maintaining a record of all the CPE hours you complete. Your records must include the following information for each program for which you are claiming CPE credit: the program title, the program sponsor's name, the program sponsor number, and the program date and location. You must keep documents supporting these records (e.g. CPE completion certificates for each program) for at least 5 years after the completion date of each program. These documents are held by the licensee, but must be made available to the Department upon request. The State Board for Public Accountancy office does conduct regular random audits of licensee CPE records. Failure to produce comprehensive written records upon request is grounds for possible disciplinary action including suspension or revocation of a license and/or fines.

4. I just received my NYS CPA license and am in my first triennial registration period. Do I need to complete the continuing education requirements completely?

No. Licensees in their first triennial registration period are not required to participate in mandatory continuing education. CPE is an annual requirement that must be fulfilled between September 1 and August 31. You will become subject to the CPE requirements on the September 1 that is or follows the first day of your second triennial registration period.

5. I am licensed in New York State, but my registration is inactive. Do I need to complete continuing education before I can reactivate my registration?

Yes. To re-activate your registration you must request a re-registration form from Office of the Profession's Registration Unit OPREGFEE@mail.nysed.gov. Be sure to include your name, profession, license number, social security number, date of birth, current and old addresses (if applicable) in your request. When you file the re-registration form you will also need to certify that you completed 24 hours of acceptable CPE in the 12 month period immediately prior to the date you file the form. You do not need to take an ethics course as part of these 24 credits to re-activate your registration. The credits can be taken in any one or combination of the acceptable subject areas.

6. I have an active registration in New York State, but claimed an exemption from the CPE requirement because I have not been in public practice. I plan to return to public practice. What do I need to do?

You must notify the State Board for Public Accountancy in writing of your intent to return to public practice and provide documentation (sponsor certificates) showing that you have taken 24 credits of acceptable CPE in the 12 months immediately prior to the date you send us this notification. Mail or fax your notification and documentation to:

Mandatory Ethics Requirement

7. Who is required to meet the mandatory ethics requirement?

Any licensed CPA or PA who is subject to the mandatory CPE requirement (see question 1, above) must take at least 4 credits of professional ethics course work during every triennial registration period. Your ethics credits may be counted toward your annual CPE total in the CPE tracking year that you actually take the ethics course. If you meet the CPE requirement by taking a concentration of 24 credits in either accounting or auditing or taxation and your ethics course is in your area of concentration, then you may count the ethics credits toward your annual total.

8. I am licensed in multiple jurisdictions, do I have to take a NYS-specific ethics course?

An individual who is licensed in multiple jurisdictions and whose primary practice is outside of New York can meet New York's ethics requirement by taking 4 CPE credits of ethics specific to the primary State of practice within every triennial registration period. The State Board for Public Accountancy recommends that an individual who is licensed solely in New York continue to take New York State specific ethics course work.

9. How do I know if the ethics course I want to take will meet the New York requirement?

To be acceptable, the ethics course must focus on professional ethics. New York State will not accept behavioral ethics as a substitute for professional ethics.

If you are taking any New York State-specific ethics course then the course provider must be registered with the New York State Education Department. If you take a non-New York, State-specific ethics course, then the course provider must be registered with either NASBA or the CPA licensing authority in the other State.

Continuing Education Hours

10. What is an hour of continuing education?

An hour of continuing education credit is awarded for one contact hour of at least 50 minutes in duration. CPE providers inform participants of the recommended CPE credit for each particular program and provide formal completion certificates awarding the appropriate number of credits to each program attendee.

11. I have taken college courses to complete my CPE requirements. How much CPE credit do I get for a college course?

CPE credit can be claimed for college-level courses that are within the 5 allowable CPE subject areas, but are not included within the education requirements for licensure. When you complete college-level course work for CPE credit, one-semester hour of college-level work equals 15 CPE contact hours and one-quarter credit hour of college-level course work equals 10 contact hours. A copy of an official transcript is acceptable documentation of this course work for CPE credit.

12. How is credit awarded for self-study courses? What are "50 minute hours" and "100 minute hours"?

Contact hours for a self-study course are based on the average completion time for that course, as tested by the program sponsor. Credit for self-study courses is not awarded based on the actual time it takes an individual to complete the coursework.

If the self-study program is interactive, meaning that it was designed to provide opportunities for the student to get feedback on how he or she is progressing with the course material while working through the course, then CPE-credit is awarded on a 50-minute hour basis. That means that you are awarded 1 hour of CPE credit for each 50 minute contact hour. If a self-study program is non-interactive, meaning it does not provide the student with an opportunity to get feedback as the course progresses, then CPE credit is awarded based on a 100-minute contact hour. That is you are awarded 1 CPE credit hour for every two 50 minute contact hours.

13. If I complete more hours of continuing education than is required in one year, can I use them toward the hours required in the subsequent year?

No. Section 7409 of the State Education Law clearly states that the CPE requirement is to be met on an annual basis and that no credits may be transferred from one year to a subsequent year. CPE tracking and reporting runs on a standard September 1 - August 31 year.

Continuing Education Courses and Educational Activities – Acceptable Activities, Subject Areas and Providers

14. What are acceptable continuing education activities?

Acceptable continuing education activities include:

• Taking formal coursework in approved study areas from a NYS-registered CPE provider when the course is held in NYS.
• Taking formal coursework in approved study areas from a NYS-registered OR NASBA-approved CPE provider when the course is held outside of NYS.
• Taking formal self-study courses in approved study areas from a NYS-registered sponsor, regardless of where the course is taken.
• Preparing and teaching a formal CPE course offered by a NYS approved CPE provider, provided that you have not taught the course before. You can claim credit for teaching a course you have taught before only if you significantly revise the information and material you present. You can claim 1 hour of CPE credit for each hour of the actual presentation plus actual preparation time of up to 2 hours of preparation time for each one hour taught. Credit for course preparation and teaching shall not exceed half of the total number of contact hours claimed during any triennial registration period.
• Authoring an article published in a peer-refereed journal or publishing a book in one of the approved subject areas. Credit for publishing shall not exceed one half of the total number of contact hours claimed during any triennial registration period.

15. What are the approved continuing education subject areas?

The five approved subject areas are specified in the State Education Law §7409(4). They are:

• Accounting
• Auditing
• Taxation
• Advisory Services
• Specialized knowledge and applications related to specialized industries

In order to be eligible for CPE credit, regardless of the subject area, a course must contribute to the development or maintenance of professional knowledge. Credit will not be given for courses that focus on the marketing of professional services or improving the profitability of an accounting firm or practice.

For details, see the Descriptions of CPE Subject Areas.

16. How can I find an approved CPE provider?

If you take a live course in New York State or any self-study course, regardless of where you are located, you must take it from a New York State-registered CPE provider.

If you are taking a live course outside of New York State, you may take it from a New York State-registered CPE provider or a CPE provider who has registered with the National Association of State Boards of Accountancy (NASBA). (www.nasba.org/nasbaweb.nsf/cpe)

Information for CPE Providers

17. Who is eligible to become a New York State-registered CPE provider?

The New York State Education Department will register:

• A regionally accredited or Regents-approved University or Colleges or division thereof
• A widely recognized national or state accounting organization, a local chapter thereof, or an educational foundation thereof
• An accounting firm, partnership or professional corporation registered with the Department and presenting in-house programs
• A group of accounting firms, partnerships and/or professional corporations, each of which is registered with the Department and presenting programs offered within the group
• Another type of organization that provides satisfactory evidence that it has adequate resources and administrative procedures to conduct a formal continuing education program relevant to the practice of public accountancy

18. Can a CPE Provider that is not registered in New York State offer CPE to New York State CPAs?

New York State CPAs can take live CPE courses from a National Association of State Board for Public Accountancy (NASBA)-registered provider only if the course is offered outside of New York State. Self-study courses, regardless of physical location, and live courses in New York State must always be taken from a New York State-registered sponsor.

19. How does my firm or organization register as a New York State-approved CPE Provider?

You must complete the Application for Continuing Education Sponsor Agreement (PDF) and return it with the application fee to the State Board for Public Accountancy for review. The responsibilities of the registered CPE provider are outlined on the Form CPA 60 included in the application packet.

20. How long is the registration period for a CPE Provider?

A CPE Provider is registered for an initial 1 year period. Subsequent re-registrations periods are for 3 years.