AB345: Bill Text

AB345,23,21 2. That more than 50% of the ownership interest of the firm is held by individuals who hold certificates or licenses to practice as a certified public accountant issued under the laws of any state or foreign country.

AB345,23,24 3. That each person who holds an ownership interest in the firm, and who does not hold a certificate or license to practice as a certified public accountant, is an individual who actively participates in the firm or an affiliated entity.

AB345,24,4 (3) The examining board shall promulgate rules that define "ownership interest" for purposes of sub. (2) and for determining the percentage of a person's ownership interest in a firm. In promulgating the rules, the examining board shall consider the financial interests and voting rights of all members of a firm.

AB345, s. 70 Section 70. 442.083 of the statutes is created to read:

AB345,24,10 442.083 Renewal. The renewal dates and renewal fees for licenses issued under this chapter are specified under s. 440.08 (2) (a). The department may not renew a license issued to a firm unless, at the time of renewal, the firm satisfies the requirements under s. 442.08 (2) and demonstrates, to the satisfaction of the department, that the firm has complied with the requirements under s. 442.087.

AB345, s. 71 Section 71. 442.087 of the statutes is created to read:

AB345,24,16 442.087 Peer review. (1) Definition. In this section, "peer review" means a process for a person licensed under this chapter to evaluate the professional competency of the members of a firm who are responsible for attest or compilation services provided by the firm or who sign or authorize another individual to sign accounting reports or financial statements on behalf of the firm.

AB345,24,21 (2) Renewal of firm licenses. After January 1, 2005, the department may not renew the license of a firm unless, at least once every 3 years, the firm undergoes the peer review that is specified in the rules promulgated under sub. (3) and that is conducted by a person approved by the examining board under the rules who is not affiliated with the firm or members of the firm undergoing review.

AB345,25,4 (3) Rules. The examining board shall promulgate rules that describe the peer review required to renew a firm's license under sub. (2). The rules shall include requirements for the examining board to approve one or more persons to conduct the peer reviews. The rules shall also require each person approved by the examining board to conduct peer reviews to periodically report to the examining board on the effectiveness of the peer reviews conducted by the person and to provide the examining board with a listing of all firms that have undergone peer review conducted by the person.

AB345,25,9 (4) Confidentiality. A person approved by the examining board to conduct peer reviews may not disclose to any person, including the examining board or the department, any information obtained or document produced during the course of or as a result of a review unless the firm undergoing the review consents to the disclosure.

AB345, s. 72 Section 72. 442.10 (1) of the statutes is amended to read:

AB345,25,21 442.10 (1) Whenever any person, as a certified public accountant or public accountant, signs or certifies any report, schedule, or statement relative to the affairs of any corporation, association, or partnership in which the person is financially interested or by which the person is regularly engaged as an officer or employee, the signature or certification shall be accompanied by a specific statement setting forth the fact that the person is financially interested in or is an officer or regular employee of the corporation, association, or partnership. If the person is both financially interested and an officer or regular employee, the statement shall cover both financial interest and employment. In the case of a corporation holding a certificate of authority firm signing or certifying as above described in this subsection, the interest of any of its stockholders members shall be disclosed.

AB345, s. 73 Section 73. 442.10 (2) of the statutes is amended to read:

AB345,26,5 442.10 (2) Notwithstanding sub. (1), no person licensed under this chapter, and no firm of which the person is a partner or shareholder member, may express an opinion as an independent certified public accountant on financial statements of any enterprise unless the person and the firm are independent of the enterprise. The requirement for independence under this subsection also extends to the spouse of such a person and to other relatives having a financial or business relationship with the enterprise which, in the opinion of the examining board, may impair independence.

AB345, s. 74 Section 74. 442.11 (1) of the statutes is amended to read:

AB345,26,9 442.11 (1) Uses any term other than certified public accountant or the abbreviation C. P. A. to indicate that he or she is a certified public accountant with a specially granted title.

AB345, s. 75 Section 75. 442.11 (2) of the statutes is amended to read:

AB345,26,15 442.11 (2) While practicing under an assumed name, or as a member of a partnership firm, other than a partnership firm with a name that is registered under s. 442.07 as composed of certified public accountants, or as an officer of a corporation (3), announces, either in writing or by printing, that the assumed name, partnership or corporation or firm is practicing as a certified public accountant.

AB345, s. 76 Section 76. 442.11 (3) of the statutes is repealed.

AB345, s. 77 Section 77. 442.11 (4) of the statutes is repealed.

AB345, s. 78 Section 78. 442.11 (6) of the statutes is repealed.

AB345, s. 79 Section 79. 442.11 (7) of the statutes is amended to read:

AB345,26,21 442.11 (7) Practices as a certified public accountant or as a public accountant after his or her certificate has been revoked.

AB345, s. 80 Section 80. 442.11 (8) of the statutes is amended to read:

AB345,27,2 442.11 (8) As an individual, member of a partnership or officer or director of a corporation or member of a firm, practices or permits the partnership or corporation firm to practice as a certified public accountant or as a public accountant unless a license has been secured for the current licensure period.

AB345, s. 81 Section 81. 442.11 (9) of the statutes is amended to read:

AB345,27,6 442.11 (9) Sells, buys, gives, or obtains an alleged certificate as a certified public accountant, a certificate of authority or a license in any manner other than that provided for by this chapter.

AB345, s. 82 Section 82. 442.11 (10) of the statutes is amended to read:

AB345,27,10 442.11 (10) Attempts to practice as a certified public accountant or as a public accountant under the guise of a certificate not granted by the examining board or under cover of a certificate obtained illegally or fraudulently.

AB345, s. 83 Section 83. 442.11 (12) of the statutes is amended to read:

AB345,27,13 442.11 (12) Attempts by any subterfuge to evade the provisions of this chapter while practicing as a certified public accountant.

AB345, s. 84 Section 84. 442.11 (13) of the statutes is amended to read:

AB345,27,21 442.11 (13) As an individual, a member of a partnership or an officer of a corporation or member of a firm, permits to be announced by printed or written statement that any report, certificate, exhibit, schedule, or statement has been prepared by or under supervision of a certified public accountant or by or under supervision of a public accountant when the person who prepared the report, certificate, exhibit, schedule, or statement was not a certified public accountant or public accountant.

AB345, s. 85 Section 85. 442.12 (intro.) of the statutes is amended to read:

AB345,27,24 442.12 Disciplinary action. (intro.) Subject to the rules promulgated under s. 440.03 (1), the examining board may do any of the following:

AB345, s. 86 Section 86. 442.12 (3) of the statutes is amended to read:

AB345,28,5 442.12 (3) In the case of a corporation or a partnership firm, revoke, limit, or suspend the license of the partnership or corporation firm, or reprimand it, if it is found that any officer, director or member of the firm has been guilty of such act or omission as would be cause for revoking, limiting, or suspending a certificate or license to the person as an individual or for reprimanding the person.

AB345, s. 87 Section 87. 442.13 of the statutes is amended to read:

AB345,28,18 442.13 Ownership of accountant's working papers. All statements, records, schedules, working papers, and memoranda made by a certified public accountant or public accountant incident to or in the course of professional service to clients by such a certified public accountant, except reports submitted by a certified public accountant or public accountant to a client, shall be and remain the property of such the certified public accountant, in the absence of an express agreement between such the certified public accountant and the client to the contrary. No such statement, record, schedule, working paper, or memorandum shall be sold, transferred, or bequeathed, without the consent of the client or the client's personal representative or assignee, to anyone other than one or more surviving partners or new or successor partners of such any member of the firm of the certified public accountant.

AB345, s. 88 Section 88. 442.14 of the statutes is repealed.

AB345, s. 89 Section 89. 447.34 (2) of the statutes is amended to read:

AB345,28,23 447.34 (2) Legal counsel, certified public accountants licensed under ch. 442, or other persons as to matters the director or officer believes in good faith are within the person's professional or expert competence.

AB345, s. 90 Section 90. 560.16 (6) (a) 3. of the statutes is amended to read:

AB345,29,3 560.16 (6) (a) 3. A verified statement of the financial condition and business operation of the existing business for the previous 3 years, certified by an independent certified public accountant licensed or certified under ch. 442.

AB345, s. 91 Section 91. 893.66 (title) of the statutes is amended to read:

AB345,29,6 893.66 (title) Accountants Certified public accountants; limitations of actions.

AB345, s. 92 Section 92. 893.66 (1) of the statutes is amended to read:

AB345,29,12 893.66 (1) Except as provided in subs. (1m) to (4), an action to recover damages, based on tort, contract or other legal theory, against any certified public accountant licensed or certified under ch. 442 for an act or omission in the performance of professional accounting services shall be commenced within 6 years from the date of the act or omission or be barred.

AB345,29,13 (End)