SECTION 11. Accy 1.401(2) (a), (2) (c) and (2) (e) 2. are amended to read:
Accy 1.401 (2) (a) Client’s records and accountant’s workpapers. Retention of client records after a demand is made for them is an act discreditable to the profession in violation of this section. It would be a violation of the code to retain a client's records to enforce payment. A certified public accountant's working papers are his or her property are the property of the certified public accountant property and need not be surrendered to the client. However, in some instances working papers will contain data which that should properly be reflected in the client's books and records but which that for convenience have not been duplicated therein, with the result that the client's records are incomplete. In such instances, the portion of the working papers containing such data constitutes part of the client's records, and copies should be made available to the client upon request. If a certified public accountant is engaged to perform certain work for a client and the engagement is terminated prior to the completion of such work, the certified public accountant is required to return or furnish copies of only those records originally given to the certified public accountant by the client. Examples of working papers that are considered to be the client's records would include:
(c) Duty discharged. Once the certified public accountant has returned the client's records or furnished the copies of such records and/or and necessary supporting data, the obligation has been discharged in this regard and it is not necessary to comply with any subsequent requests to again furnish such records.
(e) 2. On conviction for willful failure to file an income tax return or other document which, the certified public accountant as an individual is required by law to file, for filing a false or fraudulent income tax return or other document on his or her or a client's behalf, or for willful aiding in the preparation and/or and presentation of a false or fraudulent income tax return of a client, or the willful making of a false representation in connection with the determination, collection or refund of any tax, whether it be in his or her own behalf or in behalf of a client, the board will initiate charges in every instance.
SECTION 12. Accy. 1.401 (2) (f) is repealed and recreated to read:
Accy 1.401 (2) (f) A certified public accountant shall provide a 48-hour written notification to the board after being convicted of a crime.
SECTION 13. Accy 1.405 is repealed and recreated to read:
Accy 1.405 Firm Names. (1) Individuals or firms may practice as a certified public accountant in any form of business organization form permitted by state law. No person licensed to practice as a certified public accountant may practice under a firm name which that is misleading as to the type of organization. A misleading CPA Firm name is one of the following:
(a) A name that contains any representation that would be likely to cause a reasonable person to misunderstand or be confused about the legal form of the firm, or about who are the owners or members of the firm, such as a reference to a type of organization or an abbreviation thereof which does not accurately reflect the form under which the firm is organized, for example:
1. The name implies the existence of a corporation when the firm is not a corporation such as through the use of the words “corporation”, “incorporated”, “Ltd.”, “professional corporation”, or an abbreviation thereof as part of the firm name if the firm is not incorporated or is not a professional corporation.
2. The name implies the existence of a partnership when there is not a partnership such as by use of the term “partnership” or “limited liability partnership” or the abbreviation “LLP” if the firm is not such an entity.
3. The name includes the name of an individual who is not a CPA if the title “CPAs” is included in the firm name.
4. The name includes information about or indicates an association with persons who are not members of the firm except as provided in subs. (3) and (4).
5. The name includes the terms "& Company," "& Associate," or "Group," but the firm does not include, in addition to the named partner, shareholder, owner, or member, at least one other unnamed partner, shareholder, owner, member, or staff employee.
(b) A name that contains any representation that would be likely to cause a reasonable person to have a false or unjustified expectation of favorable results or capabilities, through the use of a false or unjustified statement of fact as to any material matter.
(c) A name that claims or implies the ability to influence a regulatory body or official;
(d) A name that includes the name of an owner whose license has been revoked for disciplinary reasons by the board, whereby the licensee has been prohibited from practicing public accountancy or prohibited from using the title CPA or holding oneself out as a certified public accountant.
(2) As long as they do not violate this subchapter, all of the following are permissible types of CPA firm names:
(a) A firm name that includes the names of one or more former or present owners.
(b) A firm name that excludes the names of one or more former or present owners.
(c) A firm name that uses the CPA title as part of the firm name when all named individuals are owners of the firm who hold such title or are former owners who held such title at the time they ceased to be owners of the firm.
(d) A firm name that includes the name of a non-CPA owner if the CPA title is not a part of the firm name.
(3) A network firm may use a common brand name, or share common initials as part of the firm name.
(4) A network firm may use the network name as the firm’s name provided it also shares one or more of the following characteristics with other firms in the network:
(a) Common control, as defined by generally accepted accounting principles in the U.S., among the firms through ownership, management, or other means.
(b) Profits or costs, excluding costs of operating the association, costs developing audit methodologies, manuals and training courses, and other costs that are immaterial to the firm.
(c) Common business strategy that involves ongoing collaboration amongst the firms whereby the firms are responsible for implementing the association’s strategy and are held accountable for performance pursuant to that strategy.
(d) Significant part of professional resources.
(e) Common quality control policies and procedures that participating firms are required to implement and that are monitored by the association.
SECTION 14. Chapter Accy 2 (title) is created to read: CHAPTER ACCY 2 (title)
INDIVIDUAL LICENSURE
SECTION 15. Subchapter I (title) of chapter Accy 2 (precedes s. Accy 2.001) is created to read: SUBCHAPTER I (title)
AUTHORITY AND DEFINITIONS
SECTION 16. Accy 2.001 is created to read:
SECTION 17. Accy 2.002 is created to read:
Accy 2.002 Definitions. In this chapter:
(1) “Accredited” means a school or institution of higher learning listed by and accrediting agency recognized by the secretary of the federal department of education on or after July 5, 2013.
Note: For a listing of accrediting agencies recognized by the secretary of the federal department of education, see
http:/www2.ed.gov/admins/finaid/accred/accreditation_pg6.html.
(2) “Bachelor’s degree” means a baccalaureate degree normally conferred by universities and colleges at the completion of at least a 4-year, full-time, academic-year program of study.
Note: Some students complete the 4-yer bachelor’s degree in less than 4 years by attending summer school or maximum course loads over a number of academic semesters.
SECTION 18. Subchapter II (title) of chapter Accy 2 (precedes s. Accy 2.101) is created to read: SUBCHAPTER II (title)
APPLICATION FOR CERTIFICATION OF INDIVIDUALS
SECTION 19. Accy 2.101 (Note) is created to read:
