AB725,58
1Section 58. Accy 4.01 of the administrative code is renumbered Accy 5.301.
AB725,59 2Section 59. Accy 4.02 of the administrative code is renumbered Accy 5.101 and
3amended to read:
AB725,23,9 4Accy 5.101 Firm license. A firm shall meet the ownership requirements of
5s. 442.08 (2) (c) 2., Stats., and be licensed as a certified public accountant if any
6member of the firm practices as a certified public accountant in Wisconsin other than
7on a temporary basis as described in s. 442.025 (4), Stats
. An individual licensed as
8a CPA may only provide attest services, as defined in s. 442.001 (1), Stats., in a CPA
9firm that has a firm license
.
AB725,60 10Section 60. Accy 4.03 of the administrative code is renumbered Accy 5.201.
AB725,61 11Section 61. Accy 4.035 of the administrative code is repealed.
AB725,62 12Section 62. Accy 4.037 of the administrative code is renumbered Accy 5.102,
13and Accy 5.102 (3) (d), as renumbered, is amended to read:
AB725,23,1514 Accy 5.102 (3) (d) That the applicant has satisfied the peer review
15requirements in s. 442.087, Stats., and ch. Accy 9 6.
AB725,63 16Section 63. Accy 4.04 of the administrative code is renumbered Accy 5.302 and
17amended to read:
AB725,23,22 18Accy 5.302 Firms without office in this state. Firms without a bona fide
19office in this state, as described in s. Accy 4.06 5.303 (2), may be licensed if there is
20a licensed Wisconsin certified public accountant designated as the individual
21responsible for the firm's compliance with ch. 442, Stats., for the Wisconsin
22engagement or engagements.
AB725,64 23Section 64. Accy 4.05 of the administrative code is renumbered Accy 5.103.
AB725,65 24Section 65. Accy 4.06 of the administrative code is renumbered Accy 5.303.
AB725,66
1Section 66. Accy 4.07 (title) of the administrative code is renumbered Accy
25.401 (title) and amended to read:
AB725,24,3 3Accy 5.401 (title) Change in member members of a firm.
AB725,67 4Section 67. Accy 4.07 (1) of the administrative code is renumbered Accy 5.401
5(1) (intro.) and amended to read:
AB725,24,86 Accy 5.401 (1) (intro.) The board is to shall be notified by the firm in writing
7of changes in the member members of the firm or firm name or any of the following
8no later than 30 days after the change.:
AB725,68 9Section 68. Accy 4.07 (2) of the administrative code is renumbered 5.401 (3).
AB725,69 10Section 69. Subchapter II of chapter Accy 4 [precedes Accy 4.101] of the
11administrative code is created to read:
AB725,24,1212 chapter accy 4
AB725,24,1313 subchapter iI
AB725,24,1414 discipline
AB725,24,16 15Accy 4.101 Grounds for discipline. Grounds for discipline include all of the
16following:
AB725,24,19 17(1) Engaging in dishonesty, fraud, or deceit in obtaining a certificate or license,
18including submitting to the board any evidence known to be false or forged in, or in
19support of, an application for a certificate or license or cheating on an examination.
AB725,24,21 20(2) Knowingly making misleading, deceptive, or untrue representations in the
21performance of services.
AB725,24,23 22(3) Using the CPA title or providing attest services in this state without a
23certificate or license or without properly qualifying to practice across state lines.
AB725,24,25 24(4) Using or attempting to use a certificate or license that has been suspended
25or revoked.
AB725,25,2
1(5) Making any false, misleading, or deceptive statement in support of an
2application for a license filed by another person.
AB725,25,6 3(6) Failing to comply with professional standards as to the attest or compilation
4competency requirements for those who supervise attest or compilation
5engagements and sign reports on financial statements or other compilation
6communications with respect to financial statements.
AB725,25,8 7(7) Failing to comply with the applicable peer review requirements set out in
8ch. Accy 6.
AB725,25,12 9(8) Engaging in conduct reflecting adversely upon the licensee's fitness to
10perform services, including conduct constituting incompetence. In this subsection,
11"conduct constituting incompetence" includes gross negligence, recklessness, or
12repeated acts of negligence in the licensee's record of professional practice.
AB725,25,16 13(9) Engaging in professional practice while having any condition, whether
14physical or mental, that endangers the public by impairing skill and care in
15providing professional services. Evidence of such a condition includes evidence that
16the person has been adjudicated as mentally incompetent.
AB725,25,17 17(10) Presenting a license issued to another person as one's own.
AB725,25,19 18(11) Concealing information regarding violations by other licensees when
19questioned or requested by the board.
AB725,26,2 20(12) Willfully failing to file a report or record required by state or federal law;
21willfully impeding or obstructing the filing of such a report or record or inducing
22another person to impede or obstruct such filing by another person; or making or
23filing such a report or record that one knows to be false. A finding, adjudication,
24consent order, or conviction by a federal or state court, agency, or regulatory
25authority or by the Public Company Accounting Oversight Board that a licensee has

1willfully failed to file a required report or record shall be prima facie evidence of a
2violation of this subsection.
AB725,26,8 3(13) Having an active or stayed revocation or suspension of any occupational
4license or other privilege to practice any licensed occupation by or before any state,
5federal, foreign, or other licensing or regulatory authority, provided that the grounds
6for the revocation or suspension include wrongful conduct such as fraud, dishonesty,
7or deceit or any other conduct that evidences an unfitness of the applicant to practice
8public accountancy.
AB725,70 9Section 70. Chapter Accy 5 (title) of the administrative code is repealed and
10recreated to read:
AB725,26,1111 chapter accy 5
AB725,26,1212 firm licensure
AB725,71 13Section 71. Accy 5.01 (title) of the administrative code is renumbered Accy
142.401 (title) and amended to read:
AB725,26,15 15Accy 2.401 (title) Review dates of candidate's experience.
AB725,72 16Section 72. Accy 5.01 of the administrative code is renumbered Accy 2.401 (1)
17and amended to read:
AB725,27,218 Accy 2.401 (1) Following the successful passing of the written each section of
19the
uniform CPA examination and upon written request by a candidate, a candidate's
20experience shall be reviewed by the board. The written request shall include
21employer verification statements and information on experience to update the
22experience data already in the candidate's file. Such evaluation will determine
23whether the candidate qualifies at that time under the requirement of having at least
24one year of public accounting experience or its equivalent, the sufficiency of the
25experience or the equivalency to be judged by the examining board. The board shall

1inform the candidate if additional experience is needed. Upon gaining the required
2additional experience, the candidate shall notify the board and provide verification.
AB725,73 3Section 73. Accy 5.02 of the administrative code is renumbered Accy 2.402.
AB725,74 4Section 74. Accy 5.03 of the administrative code is renumbered Accy 2.403 and
5amended to read:
AB725,27,13 6Accy 2.403 Public accounting experience. An individual must have at
7least one year of public accounting experience or its equivalent as determined by the
8board. Experience shall be acquired after the applicant has earned a degree
9described in s. 442.04 Stats., that qualifies the applicant to take the CPA
10examination
120 semester hours of education from an accredited college or
11university, including courses covering each of the subjects and the semester hours
12specified in s. Accy 2.202 (1) and (2). This experience must have been acquired within
135 years prior to applying for the certification as a certified public accountant
.
AB725,75 14Section 75. Accy 5.04 of the administrative code is renumbered Accy 2.404.
AB725,76 15Section 76. Accy 5.05 of the administrative code is renumbered Accy 2.405.
AB725,77 16Section 77. Accy 5.06 of the administrative code is repealed.
AB725,78 17Section 78. Accy 5.07 of the administrative code is renumbered Accy 2.406.
AB725,79 18Section 79. Subchapter I (title) of chapter Accy 5 [precedes Accy 5.101] of the
19administrative code is created to read:
AB725,27,2020 chapter accy 5
AB725,27,2121 subchapter I
AB725,27,22 22APPLICATION FOR FIRM LICENSURE
AB725,80 23Section 80. Subchapter II (title) of chapter Accy 5 [precedes Accy 5.201] of the
24administrative code is created to read:
AB725,27,2525 chapter accy 5
AB725,28,1
1subchapter II
AB725,28,22 SOLE PROPRIETOR
AB725,81 3Section 81. Subchapter III (title) of chapter Accy 5 [precedes Accy 5.301] of the
4administrative code is created to read:
AB725,28,55 chapter accy 5
AB725,28,66 subchapter III
AB725,28,77 OFFICEs; internet practice
AB725,82 8Section 82. Accy 5.304 of the administrative code is created to read:
AB725,28,13 9Accy 5.304 Internet practice. A CPA firm offering or rendering professional
10services via an Internet site shall provide in the Internet site's homepage, a name,
11an address, and a principal state of licensure as a means for regulators and the public
12to contact a responsible licensee in charge at the firm regarding complaints,
13questions, or regulatory compliance.
AB725,83 14Section 83. Subchapter IV (title) of chapter Accy 5 [precedes Accy 5.401] of the
15administrative code is created to read:
AB725,28,1616 chapter accy 5
AB725,28,1717 subchapter IV
AB725,28,1818 firm MEMBERs
AB725,84 19Section 84. Accy 5.401 (1) (a) to (d) and (2) of the administrative code are
20created to read:
AB725,28,2121 Accy 5.401 (1) (a) Formation of a new firm.
AB725,28,2222 (b) Termination of a firm.
AB725,28,2323 (c) Change in the management of any branch office in this state.
AB725,28,2524 (d) Establishment of a new branch office or the closing or change of address of
25a branch office in this state.
AB725,29,3
1(2) The board shall be notified by a firm in writing of any addition of a partner,
2member, manager or shareholder or the retirement, withdrawal or death of a
3partner, member, manager or shareholder as of January 1 of each year.
AB725,85 4Section 85. Subchapter I of chapter Accy 6 [precedes Accy 6.001] of the
5administrative code is created to read:
AB725,29,66 chapter accy 6
AB725,29,77 subchapter I
AB725,29,88 authority and definitions
AB725,29,10 9Accy 6.001 Authority. The rules in this chapter are adopted pursuant to the
10authority in ss. 15.08 (5) (b), 227.11 (2) and 442.087 (3), Stats.
AB725,29,11 11Accy 6.002 Definitions. As used in this chapter:
AB725,29,17 12(1) "Engagement review" means a peer review in which the peer reviewer
13evaluates and reports on engagements submitted by a firm that performs at its
14highest level of service, only services under SSARS, or services under the SSAE that
15are not included in a system review in order for the peer reviewer to determine
16whether the engagements submitted for review conform to applicable professional
17standards in all material respects.
AB725,29,21 18(2) "PCAOB" means the Public Company Accounting Oversight Board that
19conducts firm inspection of certified public accounting firms' Securities and
20Exchange Commission issuer practices and other engagements subject to its
21inspection process.
AB725,30,2 22(3) "Peer review" means a study, appraisal, or review of one or more aspects of
23the attest services work of a licensee of a registered firm in the practice of public
24accounting, in accordance with a peer-review program, by a person or persons who

1hold licenses in this jurisdiction or another jurisdiction and who are not affiliated
2with the person or firm being reviewed.
AB725,30,5 3(4) (a) "Peer-review program" means the peer-review process developed and
4maintained by the American Institute of Certified Professional Accountants and
5administered by any of the following:
AB725,30,66 1. The Wisconsin Institute of Certified Professional Accountants.
AB725,30,87 2. A peer-review program administrator approved by a board that regulates
8certified public accountants in any other CPA licensing jurisdiction.
AB725,30,119 (b) "Peer-review program" includes the standards for administering,
10performing, and reporting on peer reviews, oversight procedures, and training and
11related guidance materials.
AB725,30,14 12Note: The AICPA Standards for Performing and Reporting on Peer Reviews
13are available on the Internet at http://www.aicpa.org/Research/Standards/Peer-
14Review/DownloadableDocuments/PeerReviewStandards.pdf.
AB725,30,17 15(5) "Peer-review reports" means reports issued by the peer reviewer or
16peer-reviewing firm in accordance with a peer-review program and that program's
17peer-review standards.
AB725,30,19 18(6) "Peer-review standards" means professional standards for administering,
19performing, and reporting on peer reviews under a peer-review program.
AB725,30,24 20(7) "Peer reviewer" means a certified public accountant or accounting firm
21responsible for conducting the peer review holding a valid and active license to
22practice public accounting in good standing issued by this jurisdiction or another
23jurisdiction who meets the peer reviewer requirements established in the
24peer-review standards.
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