Public Accountancy

Regulations of the Commissioner

Part 70, Public Accountancy

Effective, March 8, 2007

§70.1 Professional study of public accountancy

1. For purposes of this section, acceptable accrediting agency shall mean an organization accepted by the department as a reliable authority for the purpose of accreditation of accountancy programs, having accreditation standards that are substantially equivalent to the requirements for programs registered pursuant to section 52.13 of this Title, and applying its criteria for granting accreditation in a fair, consistent, and nondiscriminatory manner.
2. 1. To meet the professional educational requirements for licensure, the applicant shall present satisfactory evidence of completing a baccalaureate or higher degree program in accountancy that is registered by the department pursuant to section 52.13 of this Title, or a baccalaureate or higher degree program in accountancy that is accredited by an acceptable accrediting agency, or a baccalaureate or higher degree program that is substantially equivalent to such a registered or accredited program, as determined by the department.
   2. An applicant who applies to the department for licensure on or after August 1, 2009 shall be required to have satisfactorily completed a curriculum of at least 150 semester hours in the program prescribed in paragraph (1) of this subdivision.
   3. An applicant who applies to the department for licensure prior to August 1, 2009 shall be required to have either:
      1. satisfactorily completed a curriculum of at least 150 semester hours in the program prescribed in paragraph (1) of this subdivision; or
      2. satisfactorily completed a curriculum of at least 120 semester hours in the program prescribed in paragraph (1) of this subdivision prior to August 1, 2009 and submitted the required application forms for licensure to the department prior to August 1, 2009.
3. In lieu of meeting the education requirements prescribed in subdivision (b) of this section, the applicant may meet the following requirement: at least 15 years of full-time experience in the practice of public accountancy satisfactory to the State Board for Public Accountancy.

§70.2 Experience requirements

1. An applicant who has satisfied the requirements as to education and who has passed the certified public accountant licensing examination shall 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 either as a result of employment therein, or, except with respect to the applicants under Education Law, section 7404(2), the satisfactory equivalent thereof as determined by the State Board. The documentation of experience shall have as its objective demonstration of diversified experience that would enable the applicant to conduct an independent audit of a small but complex entity and report thereon with a minimum of supervision upon licensure.
   1. Two years of such experience shall be required of an applicant who has met the professional educational requirement for licensure by satisfactorily completing a registered undergraduate or graduate curriculum in accountancy as prescribed in section 52.13(a) (1) or Alternative B of section 52.13(a) (2) of this Title or the equivalent, as determined by the department.
   2. One year of such experience shall be required of an applicant who has met the professional educational requirement for licensure by satisfactorily completing:
      1. advanced study under a registered graduate curriculum in accountancy and business as prescribed in Alternative A of section 52.13(a) (2) of this Title, or is equivalent, as determined by the department; or
      2. a registered program in accountancy as prescribed in section 52.13 (b) of this Title or its equivalent, as determined by the department.
   3. Such experience shall be attested to be a certified public accountant licensed in New York or in another political subdivision of the United States or by a public accountant licensed in New York, provided that such certified public accountant or public accountant acted in a supervisory capacity to the applicant in the employing organization.
2. For the purposes of subdivision (a) of this section, employment in the practice of public accountancy shall be limited to employment by a public accountant licensed in New York State, employment by a certified public accountant, employment by a partnership or professional corporation engaged in the practice of public accountancy, or, at the discretion of the State Board, self-employment as a licensed certified public accountant of another state or political subdivision of the United States or as a licensed public accountant of this State.
3. Experience in private or governmental accounting or auditing work 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. Such experience shall be obtained under the supervision of licensed public accountants of New York State or certified public accountants and shall be devoted principally to the comprehensive application of generally accepted accounting principles and generally accepted auditing standards to diversified field examinations, which examinations shall culminate in the submission of independent reports on financial records and statements where third-party reliance is an objective of the report. Limited auditing activities shall not be accepted as equivalent experience. Employer affidavits submitted to support such applications shall set forth in detail the nature of experience claimed, the degree to which it was obtained under the supervision of licensed public accountants of New York State or certified public accountants and shall be attested on behalf of the employee by a licensed certified public accountant or public accountant, provided that such accountant acted in a supervisory capacity to the applicant in the employing organization.
4. Every application for approval of experience shall include a chronological record of the time elapsed from the date the applicant left college to the date of the application whether or not all such time is claimed.

§70.3 Licensing examinations

1. Content. The examination shall consist of the following sections:
   1. financial accounting and reporting;
   2. business environment and concepts;
   3. regulation; and
   4. auditing and attestation.
2. Passing score. The passing score in each section shall be 75.0.
3. Retention of credit. A candidate shall be subject to the retention of credit requirements of paragraph (1) of this subdivision, unless the candidate passed two or more sections of the paper-and-pencil version of the examination administered prior to December 4, 2003 in which case the candidate shall be subject to the retention of credit requirements of paragraph (2) of this subdivision.
   1. A candidate may take the required sections of the examination individually and in any order. Credit for any section passed shall not be valid for more than eighteen months calculated from the last day of the examination window in which the candidate sat for such section. A candidate must pass all four sections of the examination within a rolling eighteen-month period, which begins on the last day of the examination window in which the candidate sat for any section of the examination for which credit is still valid. A candidate may not retake a failed section of the examination in the same examination window. For purposes of this paragraph, examination window means a three-month period, established by the examination provider.
   2. Transitional retention period. A candidate who has acquired credit for passing two or more sections of the paper-and-pencil version of the examination administered prior to December 4, 2003 shall be allowed a transitional retention period to obtain a passing score on the remaining sections of the computer-based format of the examination. The transitional retention period shall consist of the three-year period in which the candidate was required to pass all sections of the paper-and-pencil examination, extended to the last day of the month in which the three-year period ends, provided that such period shall terminate before the end of such three-year period as extended, if the candidate has exhausted six opportunities to pass the remaining sections of the licensing examination in whatever format before the end of that period. In that case, the transitional retention period shall terminate on the date the candidate has exhausted the six opportunities. A candidate may not retake a failed section of the examination in the same examination window, meaning a two-month period in which the examination is available within a quarter of the year.
   3. A candidate who has been awarded credit for passing a section of the licensing examination administered prior to December 4, 2003 shall receive credit for the corresponding section of the licensing examination administered after that date, as follows, provided that the candidate has met the retention of credit requirements of this subdivision:
      1. a candidate who has been awarded credit for financial accounting and reporting shall be awarded credit for financial accounting and reporting;
      2. a candidate who has been awarded credit for business law and professional responsibilities shall be awarded credit for business environment and concepts;
      3. a candidate who has been awarded credit for accounting and reporting shall be awarded credit for regulation; and
      4. a candidate who has been awarded credit for auditing shall be awarded credit for auditing and attestation.
4. The department shall accept passing scores on the uniform certified public accountant examination, or an examination determined to be comparable in content, as meeting the requirement of the licensing examination, except where the department determines that the administration, scoring, content or other comparable factors concerning such examination have affected the validity and/or integrity of such examination so as to render acceptance of such scores inappropriate. Candidates shall complete their professional study prior to the licensing examination.
5. Transfer of examination credit. Candidates who have passed, in another state, sections of the licensing examination used by New York State may have their grades transferred upon application, if the requirements of this Part concerning education, and retention of credit for sections passed have been met. A score of 75.0 or higher shall be considered passing for the purposes of transferring grades from another jurisdiction.

§70.4 Licensure by endorsement

1. An applicant for endorsement of a certified public accountant license issued by another jurisdiction shall present evidence of:
   1. licensure by another jurisdiction as a result of a written examination acceptable to the State Board for Public Accountancy;
   2. satisfactory completion of the education and experience requirement for a license in New York State; and
   3. good standing as a certified public accountant in each state or political subdivision of the United States from which a license has been received.
2. If licensing standards of the other jurisdiction at the time of licensure were not fully equivalent to New York State standards at the time of application for endorsement, or if an examination acceptable to the State Board was passed in another jurisdiction but under conditions not applicable in this State, the department may accept, for purposes of endorsement, evidence satisfactory to the State Board of at least four years of professional experience in the practice of public accountancy following initial licensure and within the 10 years immediately preceding application for licensure by endorsement.

§70.5 Special provisions

An application for registration of a partnership for the practice of public accountancy in the State pursuant to section 7408 of the Education Law shall be accompanied by a fee of $30.

§70.6 Continuing Education

1. Applicability of requirement.
   1. All licensees engaged in practice of public accountancy in this State, as defined in Education Law, Section 7401, either full time or part time, and required under article one hundred thirty of the Education Law to register triennially with the department to practice, shall complete the continuing education requirements in accordance with this section, except those licensees exempt from the requirement pursuant to paragraph (2) of this subdivision. The practice of public accountancy, as defined in Education Law, section 7401, requires both (i) the use of the title public accountant or certified public accountant or any other representation, express or implied, that the licensee is acting or offering to act as an independent accountant or auditor, or as a person having expert knowledge in accounting or auditing, and (ii) the offer or performance of services for a fee which includes signing, delivering or issuing a financial, accounting or related statement, or opinion or report thereon.
   2. Exemptions and adjustments in the requirement.
      1. The following licensees are exempt from the continuing education requirement:
         1. licensees whose practice is restricted to services provided for an employer other than a licensee, partnership, professional service corporation, or other entity authorized to practice public accountancy, and who have filed a statement with the department declaring such status;
         2. licensees who are not engaged in public practice and who have filed a statement with the department declaring such status; and
         3. new licensees for the triennial registration period during which they are first licensed.
      2. Adjustments to the mandatory continuing education requirement may be made by the department for good cause acceptable to the department which prevent compliance with all or part of the requirement. Good cause shall include personal illness certified by a physician, military service and extreme hardship which makes it impossible to comply with the requirement in a timely manner. Good cause shall not include family or business commitments, except for unforeseen serious family problems occuring during the last six months of a registration period.
2. Minimum continuing education requirement.
   1. During each year of the triennial registration period, an applicant for registration shall have the option of:
      1. completing a minimum of forty contact hours of acceptable formal continuing education in recognized areas of study; or
      2. 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.
   2. For each triennial registration period beginning on or after September 1, 2001, an applicant for registration shall be required to complete as part of the contact hour requirement prescribed in paragraph (1) of this subdivision at least four contact hours in professional ethics during the triennial registration period, except that an applicant who has completed the entire contact hour requirement for the triennial registration period by meeting the requirement in subparagraph (1)(ii) of this subdivision in each year of the triennial registration period shall be required to complete at least four contact hours in professional ethics in one of the three subject areas in which study was completed pursuant to subparagraph (1)(ii) of this subdivision.
   3. Licensees reentering public practice shall notify the department and shall document 24 hours of continuing education completed in the 12-month period prior to return to public practice. Following reentry, the licensee shall complete a pro rata portion of the mandated yearly requirement for the option selected pursuant to paragraph (1) of this subdivision on the basis of one-half of the number of hours required under the option selected for each full six-month period from the date of reentry to the end of the current reporting year.
3. Eligible Programs.
   1. As used in this section, acceptable formal continuing education shall mean formal programs of learning which contribute to professional practice, maintain or increase professional knowledge and which meet the requirements of this subdivision.
   2. Except as otherwise provided in paragraphs (3) or (4) of this subdivision, to be acceptable to the department, recognized continuing education areas of study shall consist of instruction conducted by sponsors approved pursuant to subdivision (e) of this section in the following subjects only: accounting; auditing; taxation; advisory services; and specialized knowledge and applications related to specialized industries. The types of formal programs which may be accepted by the department shall include:
      1. university and college courses, credit or noncredit;
      2. professional development programs and technical sessions of national, state and local accounting organizations and firms in the practice of public accountancy approved by the department; and
      3. other organized educational and technical programs relevant to the practice of public accountancy that are approved by the department.
   3. In addition to instruction pursuant to paragraph (2) of this subdivision, the following activities may contribute to meeting the continuing education requirement, provided that the number of contact hours allowed for such activities for any licensee shall not exceed one-half of the total number of hours of continuing education claimed during a triennial registration period:
      1. preparing and teaching a course offered by an approved sponsor, provided that the instruction is in the subjects set forth in paragraph (2) of this subdivision, further provided that such teaching shall not be accepted where the licensee has taught the course on more than one occasion without presenting new or revised material. The continuing education hours allowed will be on the basis of actual presentation hours, plus up two additional hours for actual preparation time for each hour taught; and
      2. authoring an article published in a peer-refereed journal or a published book dealing with one of the subjects set forth in paragraph (2) of this subdivision.
   4. Educational programs or courses in the subjects specified in paragraph (2) of this subdivision and offered by a person or organization which has not been disapproved as a sponsor pursuant to subdivision (e) of this section may be accepted, in whole or part, towards the continuing education requirement provided that such courses or programs are offered and conducted in another state or country by sponsors approved by licensing authorities of that jurisdiction or the National Association of State Boards of Accountancy under standards substantially equivalent to those of the department; or are completed by the licensee in the pursuit of educational goals other than the continuing education requirement. A licensee claiming credit for such courses shall submit such satisfactory evidence of the content, completion and purposes of the courses as may be required by the department.
4. Measurement of continuing education study. Continuing education credit shall be granted only for formal programs of learning that meet the requirements set forth in subdivision (c) of this section. One continuing education credit shall equal one contact hour. Contact hours shall be measured by program length, with a minimum of 50 minutes equaling one contact hour. Contact hours in one-half hour increments, equal to 25 minutes, shall be permitted after the first continuing education credit has been earned in a given program. For credit-bearing university or college courses, each semester-hour credit shall equal 15 contact hours and each quarter-hour shall equal 10 contact hours. Self-study programs shall be pretested to determine average completion time. Contact hours for interactive self-study shall equal the average completion time. Contact hours for non-interactive self-study programs shall equal one-half the average completion time. Interactive self-study program shall mean programs designed to use interactive learning methodologies that simulate a classroom learning process by employing software, other courseware, or technology-based systems that provide significant ongoing, interactive feedback to participants regarding the licensees' learning progress. Non-interactive self-study programs shall mean self-study programs that do not meet such requirements for interactive self-study programs.
5. Sponsor Approval.
   1. Persons or organizations desiring to offer programs under provisions of Education Law, section 7409, shall submit, with fee as set forth in subdivision (h) of this section, an application for advance approval as a sponsor on forms provided by the department.
   2. To be approved, each applicant shall submit evidence acceptable to the department that the applicant has and will maintain adequate resources to support all programs and will comply with the following development and presentation standards:
      1. sponsors shall state the learning objectives and level of knowledge of the program and state the educational and experience prerequisites for the participants;
      2. sponsors shall assure that program developers are qualified in the subject matter and knowledgeable in instructional design;
      3. sponsors shall assure that program materials are technically accurate, current and sufficient to meet the programs' learning objectives through advance review;
      4. sponsors shall inform participants in advance of the programs' learning objectives, prerequisites, level of knowledge, content, specific field of study, advance preparation, teaching method, recommended CPE credit, sponsor identification number, and relevant administrative policies;
      5. sponsors shall select instructors qualified with respect to both program content and teaching methods used; and
      6. sponsors shall provide a means for evaluating the quality of the program and update programs in response to the evaluations.
   3. Each approved sponsor shall maintain documentation for each program of instruction offered and retain the records for a period of not less than five years from the date each program is completed. Such documentation shall include the name and biography of the faculty, a record of enrollment and participation of certified public accountants and public accountants in such programs, an outline of the program materials, date and location of the program, number of contact hours recommended, summary of program evaluations and other evidence of compliance as may be required by the department. Records shall be available to the department upon request. In the event an approved sponsor discontinues operation, the governing body of such sponsor shall notify the department and shall transfer all such records as directed by the department.
   4. The department shall determine the term of approval for each sponsor.
   5. The department may conduct site visits or other reviews of sponsors and courses. Failure to cooperate with the department shall be cause for revocation of a sponsor's approval.
6. Licensee Records. Each licensee subject to this section shall maintain a record of completed continuing education hours which includes the title of the program, the number of contact hours recommended for the program, the sponsor's name and sponsor number and the date and location of the program. Documents supporting these records shall be retained by the licensee for not less than five years from completion of a course(s), and be available for review by the department in the administration of the continuing education program.
7. Renewal of Registration.
   1. To qualify for renewal of registration, each licensee subject to the continuing education requirement shall certify on the registration application whether the minimum number of hours of continuing as required by subdivision (b) of this section has been completed. 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 this subdivision.
   2. The department, in its discretion, may issue a conditional registration to a licensee who fails to meet the continuing education requirements 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 completion of required continuing education and who practices without such registration, may be subject to disciplinary proceedings pursuant to section 6510 of the Education Law.
8. Fees.
   1. A mandatory continuing education fee of thirty-five ($35) shall be collected from licensees in practice in New York State at the beginning of each triennial registration period. This fee shall be in addition to the triennial registration fee required by section 7404 of the Education Law.
   2. Each individual and organization applying for approval from the department to offer continuing education courses to licensees shall pay an application fee of three hundred dollars ($300) and graduated renewal fees based on the number of different courses offered in the year prior to renewal.

§70.7 Limited permits

1. Pursuant to the provisions of Education Law section 7406, the department will consider applications for limited permits, following receipt from the appropriate authority in the foreign country, of documentation which establishes or sets forth:
   1. the licensing standards and processes applied by the licensing authority of that country;
   2. the certificate, license, or degree which is recognized in the foreign country as qualification to perform the acts specified in Education Law section 7401; and
   3. that the foreign country grants equal authority to certified public accountants and public accountants licensed in New York State.
2. Upon receipt of an application and supporting evidence, and upon recommendation of the board, the department will issue a limited permit to an applicant who holds a degree, certificate or license specified in subdivision (a) of this section from a foreign country which has complied with said subdivision, if the applicant:
   1. demonstrates that he or she has professional qualifications which are the substantial equivalent of those required for New York licensure;
   2. evidences proficiency in the use of generally accepted accounting principles and auditing standards as practiced in New York;
   3. is of good moral character; and
   4. has paid the fee required for issuance of a limited permit.
3. A limited permit issued pursuant to these provisions:
   1. shall be valid for a period of two years;
   2. may be renewed on recommendation of the board upon reapplication and a demonstration that the purposes intended to be served by the original permit have not been accomplished;
   3. shall authorize the holder to use only the titles or designations used in the foreign country, followed by the name of the country; and
   4. shall subject the holder to the jurisdiction of the department and the Board of Regents in matters relating to the regulation of professional misconduct under the provisions of article 130 of the Education Law and regulations promulgated under authority of such law.