AB345,15,2524 442.001 (4) "Firm" means a proprietorship, partnership, limited liability
25partnership, corporation, service corporation, or limited liability company.
AB345, s. 41
1Section 41. 442.001 (5) of the statutes is created to read:
AB345,16,32 442.001 (5) "Member of a firm" means a director, manager, employee, officer,
3owner, shareholder, principal, or partner of a firm.
AB345, s. 42 4Section 42. 442.01 (2) of the statutes is amended to read:
AB345,16,135 442.01 (2) No standard or rule relating to professional conduct or unethical
6practice may be adopted until the examining board has held a public hearing with
7reference thereto, subject to the rules promulgated under s. 440.03 (1). No rule or
8standard shall become effective until 60 days after its adoption by the examining
9board. Any person who has appeared at the public hearing and filed written protest
10against any proposed standard or rule may, upon the adoption of such standard or
11rule, obtain a review thereof under ch. 227. Thereafter every person practicing as
12a certified public accountant in the state shall be governed and controlled by the rules
13and standards prescribed by the examining board.
AB345, s. 43 14Section 43. 442.01 (3) of the statutes is amended to read:
AB345,16,1515 442.01 (3) The examining board shall record its proceedings.
AB345, s. 44 16Section 44. 442.02 (title) of the statutes is amended to read:
AB345,16,17 17442.02 (title) Public Certified public accountant, definition.
AB345, s. 45 18Section 45. 442.02 (1m) (intro.) of the statutes is amended to read:
AB345,16,2119 442.02 (1m) (intro.) A person shall be considered to be in practice as a certified
20public accountant, within the meaning and intent of this chapter, if any of the
21following conditions is met:
AB345, s. 46 22Section 46. 442.02 (1m) (a) of the statutes is amended to read:
AB345,17,223 442.02 (1m) (a) The person holds himself or herself out to the public in any
24manner as one skilled in the knowledge, science, and practice of accounting, and as

1qualified and ready to render professional service therein as a certified public
2accountant for compensation.
AB345, s. 47 3Section 47. 442.02 (1m) (b) of the statutes is amended to read:
AB345,17,74 442.02 (1m) (b) The person maintains an office for the transaction of business
5as a certified public accountant or, except as an employee of a certified public
6accountant, practices accounting, as distinguished from bookkeeping, for more than
7one employer.
AB345, s. 48 8Section 48. 442.02 (1m) (dm) of the statutes is created to read:
AB345,17,109 442.02 (1m) (dm) The person provides or offers to provide an attest or
10compilation service.
AB345, s. 49 11Section 49. 442.02 (5m) of the statutes is amended to read:
AB345,17,1712 442.02 (5m) Subsection (1m) (f) does not prohibit any officer, employee,
13partner, or principal of any organization from affixing his or her signature to any
14statement or report in reference to the affairs of that organization with any wording
15designating the position, title, or office that he or she holds in that organization and
16does not prohibit any act of a public official or public employee in the performance
17of his or her duties
.
AB345, s. 50 18Section 50. 442.02 (6) of the statutes is amended to read:
AB345,17,2219 442.02 (6) Every member of a partnership and every officer and director of a
20corporation
firm who, in the capacity of partner, officer or director as a member of the
21firm
, does any of the things enumerated in sub. (1m) (a) to (f), shall be considered to
22be in practice as a certified public accountant.
AB345, s. 51 23Section 51. 442.02 (7) of the statutes is renumbered 442.025 (1) and amended
24to read:
AB345,18,5
1442.025 (1) (intro.) Nothing contained in this chapter shall prevent the
2employment
Persons employed by a certified public accountant, or by a public
3accountant,
or by a firm or corporation furnishing public accounting services as
4principal, of persons
licensed under this chapter to serve as accountants in various
5capacities, as needed, if all of the following conditions are met:
AB345,18,86 (a) The employees serving as accountants work under the control and
7supervision of certified public accountants, or accountants with certificates of
8authority granted under s. 442.06
.
AB345,18,119 (b) Those The employees serving as accountants shall do not issue any
10statements or reports over their own names except office reports to their employer
11that are customary.
AB345,18,1312 (c) The employees serving as accountants are not in any manner held out to the
13public as certified public accountants as described in this chapter.
AB345, s. 52 14Section 52. 442.02 (8) of the statutes is renumbered 442.025 (2) and amended
15to read:
AB345,18,1816 442.025 (2) Nothing contained in this chapter shall apply to a A practicing
17attorney, who, in connection with his or her professional work renders any
18accounting service.
AB345, s. 53 19Section 53. 442.02 (9) of the statutes is renumbered 442.025 (3) and amended
20to read:
AB345,18,2421 442.025 (3) (intro.) Nothing contained in this chapter shall apply to any
22persons who may be
A person employed by more than one person, partnership or
23corporation,
for the purpose of keeping books, making trial balances , or statements,
24and preparing audits or reports, if all of the following requirements are met:
AB345,19,2
1(a) The audits or reports described in this subsection are not used or issued by
2the employers as having been prepared by a certified public accountant.
AB345,19,53 (b) The persons employed as described in this subsection do not do any of the
4things enumerated in sub. s. 442.02 (1m) (f) without complying with sub. except as
5authorized under s. 442.02
(5m).
AB345, s. 54 6Section 54. 442.02 (10) of the statutes is renumbered 442.025 (4) and amended
7to read:
AB345,19,118 442.025 (4) Nothing contained in this chapter shall apply to The holders of
9state-granted certified public accountant certificates from other states who may be
10temporarily in this state on professional business incident to their regular practice
11in the states of their domicile, but with neither residence nor office in this state.
AB345, s. 55 12Section 55. 442.025 of the statutes is created to read:
AB345,19,14 13442.025 Applicability. This chapter does not require a certificate or license
14under this chapter for any of the following:
AB345,19,15 15(5) A public official or public employee in performing his or her duties.
AB345,19,18 16(6) A person who performs services involving the use of accounting skills,
17including management advisory services, the preparation of tax returns, and the
18preparation of financial statements without issuing reports on the statements.
AB345,19,22 19(7) A person who prepares financial statements and issues information thereon
20that does not purport to be in compliance with the statement on standards for
21accounting and review services issued by the American Institute of Certified Public
22Accountants.
AB345, s. 56 23Section 56. 442.03 (1) of the statutes is renumbered 442.03 and amended to
24read:
AB345,20,7
1442.03 Licenses required. No person may lawfully practice in this state as
2a certified public accountant either in the person's own name, or as an employee, or
3under an assumed name, or as an officer, member or employee of a firm, or as an
4officer or employee of a corporation
a member of a firm, unless the person has been
5granted by the examining board a certificate as a certified public accountant, and
6unless the person, firm or corporation, jointly and severally, has and firm have
7complied with all of the provisions of this chapter, including licensure.
AB345, s. 57 8Section 57. 442.03 (2) of the statutes is repealed.
AB345, s. 58 9Section 58. 442.03 (3) of the statutes is repealed.
AB345, s. 59 10Section 59. 442.04 (3) of the statutes is repealed.
AB345, s. 60 11Section 60. 442.04 (4) (b) of the statutes is repealed.
AB345, s. 61 12Section 61. 442.04 (4) (bm) of the statutes is amended to read:
AB345,20,1813 442.04 (4) (bm) After December 31, 2000, a A person may not take the
14examination leading to the certificate to practice as a certified public accountant
15unless the person has completed at least 150 semester hours of education with an
16accounting concentration at an institution, and has received a bachelor's or higher
17degree with an accounting concentration from an institution, except as provided in
18par. (c).
AB345, s. 62 19Section 62. 442.04 (4) (c) of the statutes is amended to read:
AB345,21,220 442.04 (4) (c) If an applicant has a bachelor's or higher degree from an
21institution but does not have a resident major in accounting required in par. (b) or
22an accounting concentration required in par. (bm), the examining board may review
23such other educational experience from an institution as the applicant presents and,
24if the examining board determines that such other experience provides the
25reasonable equivalence of a resident major in accounting required in par. (b) or an

1accounting concentration required in par. (bm), the examining board shall approve
2the applicant for examination.
AB345, s. 63 3Section 63. 442.04 (5) of the statutes is amended to read:
AB345,21,214 442.04 (5) The examining board may not grant a certificate as a certified public
5accountant to any person other than a person who is 18 years of age or older, does not
6have an arrest or conviction record, subject to ss. 111.321, 111.322 , and 111.335, and,
7except as provided in s. 442.05, has successfully passed a written an examination
8in such subjects affecting accountancy as the examining board considers necessary.
9If the person applying for the certificate passes the examination during the period
10beginning on May 17, 1996, and ending on December 31, 2000, the examining board
11may not grant the certificate unless the applicant has at least 3 years of public
12accounting experience or its equivalent, the sufficiency of the experience or the
13equivalency to be judged by the examining board. If the person applying for the
14certificate passes the examination after December 31, 2000, the
The examining
15board may not grant the certificate unless the applicant has at least 2 years one year
16of public accounting experience or its equivalent, the sufficiency of the experience or
17the equivalency to be judged by the examining board. The examining board shall
18ensure that evaluation procedures and examinations are nondiscriminatory, relate
19directly to accountancy, and are designed to measure only the ability to perform
20competently as an accountant. The examining board may use the examination
21service provided by the American Institute of Certified Public Accountants.
AB345, s. 64 22Section 64. 442.06 of the statutes is repealed.
AB345, s. 65 23Section 65. 442.07 (title) of the statutes is amended to read:
AB345,21,25 24442.07 (title) Requirements for practice as certified public accountant
25or public accountant.
AB345, s. 66
1Section 66. 442.07 (1) of the statutes is amended to read:
AB345,22,132 442.07 (1) Any person who has been issued a certificate of the person's
3qualifications to practice as a certified public accountant, shall be styled and known
4as a "certified public accountant" and no other person shall assume to use such title
5or the abbreviation "C.P.A." or any other word, words, letters , or figures to indicate
6that the person using the same is a certified public accountant. The terms "chartered
7accountant" and "certified accountant" and the abbreviation "C.A." are specifically
8prohibited to such other persons as being prima facie misleading to the public. Any
9person who has been issued a certificate of authority, as herein provided, shall be
10styled and known as a "public accountant" and no other person, other than a certified
11public accountant, shall assume to use such designation or any other word, words,
12letters or figures to indicate that such person is entitled to practice as a public
13accountant.
AB345, s. 67 14Section 67. 442.07 (2) of the statutes is repealed.
AB345, s. 68 15Section 68. 442.07 (3) of the statutes is amended to read:
AB345,23,316 442.07 (3) Any partnership, which firm that is entitled to practice as certified
17public accountants in this state or any other state, and every resident member and
18resident manager
of which the firm who is a certified public accountant of this state,
19after registering the partnership firm name with the examining board, may use the
20designation "certified public accountants" in connection with the partnership firm
21name. Any partnership, every member and resident manager of which is a certified
22public accountant of this state or any other state or holds a certificate of authority
23under this chapter, after registering the partnership name with the examining
24board, may use the designation "public accountants" in connection with the
25partnership name. An assumed name, in use prior to September 21, 1935, may be

1used the same as a partnership name, provided the individual persons practicing as
2principals under that name hold certificates granted by the examining board and
3register the name with the examining board.
AB345, s. 69 4Section 69. 442.08 of the statutes is repealed and recreated to read:
AB345,23,8 5442.08 Licensure. (1) The department shall issue a license to an individual
6who holds an unrevoked certificate as a certified public accountant, submits an
7application for the license on a form provided by the department, and pays the fee
8specified in s. 440.05 (1).
AB345,23,11 9(2) The department shall issue a license to a firm that submits an application
10for the license on a form provided by the department, pays the fee specified in s.
11440.05 (1), and does each of the following:
AB345,23,1212 (a) Identifies each office of the firm that is located in this state.
AB345,23,1513 (b) If any person who holds an ownership interest in the firm is not licensed
14under sub. (1), designates an individual licensed under sub. (1) as the individual
15responsible for the firm's compliance with this chapter.
AB345,23,1616 (c) Demonstrates, to the satisfaction of the department, each of the following:
AB345,23,1817 1. That all attest and compilation services provided by the firm in this state are
18under the charge of an individual licensed under sub. (1).
AB345,23,2119 2. That more than 50% of the ownership interest of the firm is held by
20individuals who hold certificates or licenses to practice as a certified public
21accountant issued under the laws of any state or foreign country.
AB345,23,2422 3. That each person who holds an ownership interest in the firm, and who does
23not hold a certificate or license to practice as a certified public accountant, is an
24individual who actively participates in the firm or an affiliated entity.
AB345,24,4
1(3) The examining board shall promulgate rules that define "ownership
2interest" for purposes of sub. (2) and for determining the percentage of a person's
3ownership interest in a firm. In promulgating the rules, the examining board shall
4consider the financial interests and voting rights of all members of a firm.
AB345, s. 70 5Section 70. 442.083 of the statutes is created to read:
AB345,24,10 6442.083 Renewal. The renewal dates and renewal fees for licenses issued
7under this chapter are specified under s. 440.08 (2) (a). The department may not
8renew a license issued to a firm unless, at the time of renewal, the firm satisfies the
9requirements under s. 442.08 (2) and demonstrates, to the satisfaction of the
10department, that the firm has complied with the requirements under s. 442.087.
AB345, s. 71 11Section 71. 442.087 of the statutes is created to read:
AB345,24,16 12442.087 Peer review. (1) Definition. In this section, "peer review" means
13a process for a person licensed under this chapter to evaluate the professional
14competency of the members of a firm who are responsible for attest or compilation
15services provided by the firm or who sign or authorize another individual to sign
16accounting reports or financial statements on behalf of the firm.
AB345,24,21 17(2) Renewal of firm licenses. After January 1, 2005, the department may not
18renew the license of a firm unless, at least once every 3 years, the firm undergoes the
19peer review that is specified in the rules promulgated under sub. (3) and that is
20conducted by a person approved by the examining board under the rules who is not
21affiliated with the firm or members of the firm undergoing review.
AB345,25,4 22(3) Rules. The examining board shall promulgate rules that describe the peer
23review required to renew a firm's license under sub. (2). The rules shall include
24requirements for the examining board to approve one or more persons to conduct the
25peer reviews. The rules shall also require each person approved by the examining

1board to conduct peer reviews to periodically report to the examining board on the
2effectiveness of the peer reviews conducted by the person and to provide the
3examining board with a listing of all firms that have undergone peer review
4conducted by the person.
AB345,25,9 5(4) Confidentiality. A person approved by the examining board to conduct
6peer reviews may not disclose to any person, including the examining board or the
7department, any information obtained or document produced during the course of or
8as a result of a review unless the firm undergoing the review consents to the
9disclosure.
AB345, s. 72 10Section 72. 442.10 (1) of the statutes is amended to read:
AB345,25,2111 442.10 (1) Whenever any person, as a certified public accountant or public
12accountant
, signs or certifies any report, schedule, or statement relative to the affairs
13of any corporation, association, or partnership in which the person is financially
14interested or by which the person is regularly engaged as an officer or employee, the
15signature or certification shall be accompanied by a specific statement setting forth
16the fact that the person is financially interested in or is an officer or regular employee
17of the corporation, association, or partnership. If the person is both financially
18interested and an officer or regular employee, the statement shall cover both
19financial interest and employment. In the case of a corporation holding a certificate
20of authority
firm signing or certifying as above described in this subsection, the
21interest of any of its stockholders members shall be disclosed.
AB345, s. 73 22Section 73. 442.10 (2) of the statutes is amended to read:
AB345,26,523 442.10 (2) Notwithstanding sub. (1), no person licensed under this chapter, and
24no firm of which the person is a partner or shareholder member, may express an
25opinion as an independent certified public accountant on financial statements of any

1enterprise unless the person and the firm are independent of the enterprise. The
2requirement for independence under this subsection also extends to the spouse of
3such a person and to other relatives having a financial or business relationship with
4the enterprise which, in the opinion of the examining board, may impair
5independence.
AB345, s. 74 6Section 74. 442.11 (1) of the statutes is amended to read:
AB345,26,97 442.11 (1) Uses any term other than certified public accountant or the
8abbreviation C. P. A. to indicate that he or she is a certified public accountant with
9a specially granted title.
AB345, s. 75 10Section 75. 442.11 (2) of the statutes is amended to read:
AB345,26,1511 442.11 (2) While practicing under an assumed name, or as a member of a
12partnership firm, other than a partnership firm with a name that is registered under
13s. 442.07 as composed of certified public accountants, or as an officer of a corporation
14(3), announces, either in writing or by printing, that the assumed name, partnership
15or corporation
or firm is practicing as a certified public accountant.
AB345, s. 76 16Section 76. 442.11 (3) of the statutes is repealed.
AB345, s. 77 17Section 77. 442.11 (4) of the statutes is repealed.
AB345, s. 78 18Section 78. 442.11 (6) of the statutes is repealed.
AB345, s. 79 19Section 79. 442.11 (7) of the statutes is amended to read:
AB345,26,2120 442.11 (7) Practices as a certified public accountant or as a public accountant
21after his or her certificate has been revoked.
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