Wisconsin Legislature: CR 15-002 Rule Text

An order of the Accounting Examining Board to repeal Accy 3.01, 3.03 (1) (Note), 3.05 (1) (b) 2. and 3. and (c) and (2) and (3), 3.055, 3.07, 3.08, 4.035, 5.06, 7.01, 7.027.035 (5), 7.04 (2), 7.06, chs. Accy 7 and 8 (titles) and Accy 9.01;

to renumber Accy 3.10, 4.01, 4.03, 4.037, 4.04, 4.05, 4.06, 4.07 (2), 5.02, 5.04 5.05, 5.07, 7.04 (1), 7.05, 8.01, 8.02, 8.03 (1) to (6), 8.05, ch. Accy 9 (title), Accy 9.02, 9.03, 9.04, 9.05, and 9.06;

to renumber and amend Accy 3.02, 3.03, 3.04, 3.05 (title), (1) (intro.) and (a), 3.06, 3.09, 3.11), 4.02, 4.07, 5.01, 5.03, 7.03, 7.035, 7.04, 8.04, and 9.02 (Note);

to consolidate, renumber and amend Accy 3.05 (1) (b) (intro.) and 1.;

to amend Accy. 1.001 (1) and (3) and ,1.003 (intro.), ch. Accy 1, subch II (title) Accy 1.102, 1.202, 1.301 (2) (d) and (4), 1.302 (1) and (3), 1.401 (2) (a), (2) (c) and (2) (e) 2.,

to repeal and recreate Accy 1.101, 1.401 (2) (f) and, 1.405;

to create Accy 1.003 (2m), (2r) and (7m), ch. Accy 2 (title), ch. Accy 2, subch. I (title), Accy 2.001 and 2.002, ch. Accy 2 subch. II, III, and IV (titles), Accy 2.101 (1) (Note), 2.101 (3), (4) and (5), 2.205, and 2.305(1) (g), ch. Accy 2, subch. V (title), Accy 2.401 (2), ch. Accy 3 (title), ch. Accy 3, subchs. I, II, and III (titles), ch. Accy 4 (title), ch. Accy 5 (title), subchs. I, II, III, IV (titles), Accy 5.401 (1) (a) to (d) and (2), and 5.403, ch. Accy 6, subch. I (title) Accy 6.001, 6.002, ch. Accy 6, subchs II, III, and IV (titles), Accy 6.303 and 6.304, relating to updating accounting practices and standards.

Analysis prepared by the Department of Safety and Professional Services.

------------------------------------------------------------------------------------------------------------

ANALYSIS

Statutes interpreted:

ss. 442.04, 442.05, 442.08, Stats.

Statutory authority:

ss. 15.08 (5) (b), 227.11 (2), 442.087 (3), Stats.

Explanation of agency authority:

Pursuant to ss. 15.08 (5) (b), and 227.11 (2) (a), Stats., the Accounting Examining Board (Board) is empowered by the legislature to promulgate rules that will provide guidance within the accounting profession and that interpret the statutes it enforces or administers. An express grant of rule writing authority with regard to peer review is found in Section 442.087 (3), Stats. The Board seeks to promulgate rules that will provide guidance within the profession with regards to the qualifications for certification and licensure, qualifications for examination, and requirements for peer review.

Related statute or rule:

None.

Plain language analysis:

The Accounting Examining Board undertook a comprehensive review of the rules governing accounting practice in Wisconsin. During the time the Board was conducting its review legislation passed that greatly impacted becoming a certified public accountant in Wisconsin. 2013 Wisconsin Act 21 affected the accreditation standard within the rules. Before Act 21, applicants for a certified public accountant certificate were to have received a bachelor’s degree from an institution accredited by the Commission on Institution of Higher Education of the North Central Association of Colleges and Schools or its regional equivalence. 2013 Wisconsin Act 21 changed the accreditation standard to include institutions of higher education that are accredited by an accrediting agency recognized by the secretary of the federal Department of Education. The proposed rule would eliminate all references to the former accreditation body and update pertinent provisions with the new accreditation standard.

2013 Wisconsin Act 210 modified the qualifications for sitting for the accountancy exam. Before Act 210, individuals had to complete 150 semester hours of education and possess a baccalaureate degree or higher before taking the exam. Act 210 reduced the number of required semester hours of education from 150 to 120 semester hours and eliminated the baccalaureate or higher degree as a requirement to take the exam. The proposed rule will amend the affected provisions to implement this statutory change.

Lastly, the Board decided to adopt the American Institute of Certified Public Account’s (AICPA) Code of Professional Conduct, and update the peer review chapter with new terms.

Summary of, and comparison with, existing or proposed federal regulation:

None.

Comparison with rules in adjacent states:

Illinois: Illinois requires 150 college or university semester hours with an accounting concentration to be admitted to take the certified public accountant examination. The 150 hours must include a baccalaureate or higher degree conferred by an academic institution acceptable to the Board. 225 Ill Comp. Stat. 450/3. The Board recognizes institutions of higher education accredited by a regional accrediting association recognized by the Council for Higher Education Accreditation or the U.S. Department of Education. The Board also recognizes business schools accredited by the Association of Advance Collegiate Schools of Business or the Association of Collegiate Business Schools and Programs. 23 Ill. Adm. Code 1400.90 (c) (2) (H).

Iowa: Qualifications for a certificate as a certified public accountant in Iowa includes completion of at least 150 semester hours of college level education and receiving a baccalaureate or higher degree by a college or university recognized by the Board. Iowa Code §542.5 (7). The Board recognizes institutions accredited by the American Assembly of Collegiate Schools of Business.193A IAC 3.2. Other qualifications include one year of verified experience and successful completion of the uniform certified accountant’s examination. 193A IAC 3.1.