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
AB725,29,88
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.
AB725,31,2
1(8) "SAS" means the Statements on Auditing Standards issued by the auditing
2standards board of the American Institute of Certified Public Accountants.
AB725,31,5
3(9) "SSAE" means the Statements on Standards for Attestation Engagements
4issued by the auditing standards board of the American Institute of Certified Public
5Accountants.
AB725,31,8
6(10) "SSARS" means the Statements on Standards for Accounting and Review
7Services issued by the accounting and review services committee of the American
8Institute of Certified Public Accountants.
AB725,31,17
9(11) "System review" means a peer review in which the peer reviewer
10determines whether the firm's system of quality control for its accounting and
11auditing practice is designed and complied with to provide the firm with reasonable
12assurance of performing and reporting in conformity with applicable professional
13standards, including the Statements on Quality Control Standards, No. 8 of the
14American Institute of Certified Public Accountants, in all material respects for firms
15that at the firm's highest level of service, perform engagements under the SAS,
16Government Auditing Standards, examinations under the SSAE, or pursuant to the
17standards of the PCAOB not subject to permanent inspection by the PCAOB.
AB725,86
18Section
86. Subchapter II (title) of chapter Accy 6 [precedes Accy 6.101] of the
19administrative code is created to read:
AB725,31,2020
chapter accy 6
AB725,31,2121
subchapter Ii
AB725,31,2222
firm renewal
AB725,87
23Section
87. Subchapter III (title) of chapter Accy 6 [precedes Accy 6.201] of the
24administrative code is created to read:
AB725,31,2525
chapter accy 6
AB725,32,1
1subchapter IiI
AB725,88
3Section
88. Subchapter IV (title) of chapter Accy 6 [precedes Accy 6.301] of the
4administrative code is created to read:
AB725,32,55
chapter accy 6
AB725,32,66
subchapter IV
AB725,32,77
conducting peer reviews
AB725,89
8Section
89. Accy 6.303 of the administrative code is created to read:
AB725,32,12
9Accy 6.303 Extensions. The organization administering the peer-review
10program may grant extensions for completing peer reviews as long as the
11organization is notified by the firm within 14 days prior to the due date of the peer
12review. Extensions may be granted for any of the following reasons:
AB725,32,13
13(1) An adverse health condition, including an illness or injury.
AB725,32,14
14(2) Military service.
AB725,32,15
15(3) Other good cause clearly outside of the control of the public accounting firm.
AB725,90
16Section
90. Accy 6.304 of the administrative code is created to read:
AB725,32,20
17Accy 6.304 Firm structure changes. In the event a firm is merged,
18otherwise combined, dissolved, or separated, the organization administering the
19peer review shall determine which firm, if any, is considered to be the succeeding
20firm. The succeeding firm shall retain its peer review status and the review due date.
AB725,91
21Section
91. Chapter Accy 7 (title) of the administrative code is repealed.