Public Accountancy

Current Issues in Public Accountancy

Update on Proposed Amendments to Part 29 of the Rules of the Board of Regents

A number of questions have recently been received from the field concerning proposed amendments to the Rules of the Board of Regents regarding public accountancy that were deferred for additional input from the field. The following provides an update on that proposed amendment that would establish in the definition of unprofessional conduct for the practice of public accountancy, standards that licensees must meet relating to their independence when performing prescribed services for a client and relating to reports that they must submit to the State Education Department. Specifically, as originally drafted, the proposed amendments would establish in the definition of unprofessional conduct in the practice of public accountancy standards that licensees must meet in relation to providing professional services to publicly traded companies and the acceptance of commissions and contingency fees. The original draft of the proposed amendments would also establish in the Rules of the Board of Regents specific reportable events that must be reported to the Department by licensees, require licensees and firms to report to the Department the receipt of qualified peer review or quality review reports, and establish standards of unprofessional conduct specific to the public accountancy profession. On April 23, 2003, proposed amendments to subdivision (a) and the addition of subdivisions (d), (e), (f) and (g) of Section 29.10 of the Rules of the Board of Regents were published in the State Register initiating a 45-day comment period.

Although the initial draft of the amendments was scheduled for discussion in April 2003 by the Board of Regents Professional Practice Committee, a number of important comments were received from the field and the State Board of Public Accountancy. Following receipt of these comments, discussion of the item was postponed to permit additional input on the draft. The State Board of Public Accountancy convened an additional meeting in May 2003 to discuss in detail the specific provisions of the draft Rule amendments. Following this meeting, it was determined that additional revisions and discussions would occur to clarify and enhance the proposed language before the item is to be rescheduled for discussion by the Regents.

SED is currently assessing additional public comments received on these proposed amendments. Once this process is completed, the item will be re-scheduled for discussion with the Board of Regents, the amendments will be re-published in the State Register, posted on our web site, and will be included on the Regents agenda. At this time, no future date has been determined.

If you have any questions regarding the proposed amendment, please do not hesitate to contact the Board office.