SB532: Bill Text

SB532,83 Section 83. Subchapter IV (title) of chapter Accy 5 [precedes Accy 5.401] of the administrative code is created to read:

SB532,28,16 chapter accy 5

SB532,28,17 subchapter IV

SB532,28,18 firm MEMBERs

SB532,84 Section 84. Accy 5.401 (1) (a) to (d) and (2) of the administrative code are created to read:

SB532,28,21 Accy 5.401 (1) (a) Formation of a new firm.

SB532,28,22 (b) Termination of a firm.

SB532,28,23 (c) Change in the management of any branch office in this state.

SB532,28,25 (d) Establishment of a new branch office or the closing or change of address of a branch office in this state.

SB532,29,3 (2) The board shall be notified by a firm in writing of any addition of a partner, member, manager or shareholder or the retirement, withdrawal or death of a partner, member, manager or shareholder as of January 1 of each year.

SB532,85 Section 85. Subchapter I of chapter Accy 6 [precedes Accy 6.001] of the administrative code is created to read:

SB532,29,6 chapter accy 6

SB532,29,7 subchapter I

SB532,29,8 authority and definitions

SB532,29,10 Accy 6.001 Authority. The rules in this chapter are adopted pursuant to the authority in ss. 15.08 (5) (b), 227.11 (2) and 442.087 (3), Stats.

SB532,29,11 Accy 6.002 Definitions. As used in this chapter:

SB532,29,17 (1) "Engagement review" means a peer review in which the peer reviewer evaluates and reports on engagements submitted by a firm that performs at its highest level of service, only services under SSARS, or services under the SSAE that are not included in a system review in order for the peer reviewer to determine whether the engagements submitted for review conform to applicable professional standards in all material respects.

SB532,29,21 (2) "PCAOB" means the Public Company Accounting Oversight Board that conducts firm inspection of certified public accounting firms' Securities and Exchange Commission issuer practices and other engagements subject to its inspection process.

SB532,30,2 (3) "Peer review" means a study, appraisal, or review of one or more aspects of the attest services work of a licensee of a registered firm in the practice of public accounting, in accordance with a peer-review program, by a person or persons who hold licenses in this jurisdiction or another jurisdiction and who are not affiliated with the person or firm being reviewed.

SB532,30,5 (4) (a) "Peer-review program" means the peer-review process developed and maintained by the American Institute of Certified Professional Accountants and administered by any of the following:

SB532,30,6 1. The Wisconsin Institute of Certified Professional Accountants.

SB532,30,8 2. A peer-review program administrator approved by a board that regulates certified public accountants in any other CPA licensing jurisdiction.

SB532,30,11 (b) "Peer-review program" includes the standards for administering, performing, and reporting on peer reviews, oversight procedures, and training and related guidance materials.

SB532,30,14 Note: The AICPA Standards for Performing and Reporting on Peer Reviews are available on the Internet at http://www.aicpa.org/Research/Standards/Peer- Review/DownloadableDocuments/PeerReviewStandards.pdf.

SB532,30,17 (5) "Peer-review reports" means reports issued by the peer reviewer or peer-reviewing firm in accordance with a peer-review program and that program's peer-review standards.

SB532,30,19 (6) "Peer-review standards" means professional standards for administering, performing, and reporting on peer reviews under a peer-review program.

SB532,30,24 (7) "Peer reviewer" means a certified public accountant or accounting firm responsible for conducting the peer review holding a valid and active license to practice public accounting in good standing issued by this jurisdiction or another jurisdiction who meets the peer reviewer requirements established in the peer-review standards.

SB532,31,2 (8) "SAS" means the Statements on Auditing Standards issued by the auditing standards board of the American Institute of Certified Public Accountants.

SB532,31,5 (9) "SSAE" means the Statements on Standards for Attestation Engagements issued by the auditing standards board of the American Institute of Certified Public Accountants.

SB532,31,8 (10) "SSARS" means the Statements on Standards for Accounting and Review Services issued by the accounting and review services committee of the American Institute of Certified Public Accountants.

SB532,31,17 (11) "System review" means a peer review in which the peer reviewer determines whether the firm's system of quality control for its accounting and auditing practice is designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards, including the Statements on Quality Control Standards, No. 8 of the American Institute of Certified Public Accountants, in all material respects for firms that at the firm's highest level of service, perform engagements under the SAS, Government Auditing Standards, examinations under the SSAE, or pursuant to the standards of the PCAOB not subject to permanent inspection by the PCAOB.

SB532,86 Section 86. Subchapter II (title) of chapter Accy 6 [precedes Accy 6.101] of the administrative code is created to read:

SB532,31,20 chapter accy 6

SB532,31,21 subchapter Ii

SB532,31,22 firm renewal

SB532,87 Section 87. Subchapter III (title) of chapter Accy 6 [precedes Accy 6.201] of the administrative code is created to read:

SB532,31,25 chapter accy 6

SB532,32,1 subchapter IiI

SB532,32,2 reports

SB532,88 Section 88. Subchapter IV (title) of chapter Accy 6 [precedes Accy 6.301] of the administrative code is created to read:

SB532,32,5 chapter accy 6

SB532,32,6 subchapter IV

SB532,32,7 conducting peer reviews

SB532,89 Section 89. Accy 6.303 of the administrative code is created to read:

SB532,32,12 Accy 6.303 Extensions. The organization administering the peer-review program may grant extensions for completing peer reviews as long as the organization is notified by the firm within 14 days prior to the due date of the peer review. Extensions may be granted for any of the following reasons:

SB532,32,13 (1) An adverse health condition, including an illness or injury.

SB532,32,14 (2) Military service.

SB532,32,15 (3) Other good cause clearly outside of the control of the public accounting firm.

SB532,90 Section 90. Accy 6.304 of the administrative code is created to read:

SB532,32,20 Accy 6.304 Firm structure changes. In the event a firm is merged, otherwise combined, dissolved, or separated, the organization administering the peer review shall determine which firm, if any, is considered to be the succeeding firm. The succeeding firm shall retain its peer review status and the review due date.

SB532,91 Section 91. Chapter Accy 7 (title) of the administrative code is repealed.

SB532,92 Section 92. Accy 7.01 of the administrative code is repealed.

SB532,93 Section 93. Accy 7.02 of the administrative code is repealed.

SB532,94 Section 94. Accy 7.03 of the administrative code is repealed.

SB532,95 Section 95. Accy 7.035 (intro.) and (2) of the administrative code are consolidated, renumbered Accy 2.202 (intro.) and amended to read:

SB532,33,10 Accy 2.202 Education required to take the examination for certification. (intro.) A person may not take the examination leading to the candidate applying for a certificate to practice as a certified public accountant unless the person has, as part of must, in the course of having completed the 150 semester hours of education, met one of the following conditions: (2) Earned have earned a baccalaureate or graduate degree from a an accredited business school or college of business that is accredited by an accrediting agency recognized by the board and completed at all of the following:

SB532,33,14 (1) At least 24 semester hours in accounting at the undergraduate level or 15 semester hours at the graduate level, or an equivalent combination, including courses covering the subjects of financial accounting, auditing, U.S. taxation, and management accounting. at least one course in each of the following subjects:

SB532,96 Section 96. Accy 7.035 (1), (3), (4) and (5) of the administrative code are repealed.

SB532,97 Section 97. Accy 7.04 (1) of the administrative code is renumbered Accy 2.308 and amended to read:

SB532,33,22 Accy 2.308 Transfer of credit applicant scores. Applicants who have passed all or part of the uniform certified public accountant examination in another jurisdiction but who have not yet received their certified public accountant certificate shall be able to transfer grades scores in subjects passed to Wisconsin provided that:

SB532,33,25 (1) Grades Scores transferred must be certified to the board by the other jurisdiction and must be passed in accordance with rules applicable to Wisconsin candidates.

SB532,34,3 (2) Transfer of grades scores must be accepted by board action and the applicant notified in a manner similar to the action on grades scores for Wisconsin applicants.

SB532,98 Section 98. Accy 7.04 (2) of the administrative code is repealed.

SB532,99 Section 99. Accy 7.05 of the administrative code is renumbered Accy 3.101, and Accy 3.101 (1) (c), as renumbered, is amended to read:

SB532,34,7 Accy 3.101 (1) (c) The applicant has been approved under s. Accy 8.05 3.202.

SB532,100 Section 100. Accy 7.06 of the administrative code is repealed.

SB532,101 Section 101. Accy 7.07 of the administrative code is renumbered Accy 2.102.

SB532,102 Section 102. Chapter Accy 8 (title) of the administrative code is repealed.

SB532,103 Section 103. Accy 8.01 (title) of the administrative code is renumbered Accy 3.001 (title).

SB532,104 Section 104. Accy 8.01 (1) of the administrative code is renumbered Accy 3.001.

SB532,105 Section 105. Accy 8.02 of the administrative code is renumbered Accy 3.002.

SB532,106 Section 106. Accy 8.03 (title), (1), (3), (4), (5) and (6) of the administrative code are renumbered Accy 3.102 (title), (1), (2), (3), (4) and (5).

SB532,107 Section 107. Accy 8.04 of the administrative code is renumbered Accy 3.201 and amended to read:

SB532,34,22 Accy 3.201 Foreign candidates. (1) Candidates holding certifications from foreign countries shall establish their qualifications for a certificate by endorsement as set forth in ss. Accy 8.02 and 8.03 3.002 and 3.102, or in s. Accy 8.05 3.202.

SB532,35,7 (2) Except as provided in s. Accy 8.05 3.202, education qualifications in foreign countries are not comparable to those in Wisconsin. As no foreign school is accredited by the North Central Association of Colleges and Schools or its regional equivalent an accrediting agency that is recognized by the secretary of the federal department of education, evidence of acceptance without deficiency into a graduate program in a school accredited by the North Central Association of Colleges and Schools or its regional equivalent an agency that is recognized by the secretary of the federal department of education will be accepted as evidence of equivalence for a bachelor's or higher degree. The education acquired must constitute the reasonable equivalence of a resident major s set forth in s. Accy 7.03.

SB532,35,14 (3) Except as provided in s. Accy 8.05 3.202, examinations in foreign countries have not been established as being comparable to those in the United States. Candidates must establish at least minimum qualifications in United States practice related to areas of business law, federal income taxes, generally accepted auditing standards, and generally accepted accounting principles. The writing taking of uniform certified public accountant examinations in these areas would be adequate evidence, although other evidence may be accepted if validated.

SB532,35,18 (4) Except as provided in s. Accy 8.05 3.202, experience must include practice using United States related techniques as noted in sub. (3). Experience will be considered on its merit without restriction as to where it was acquired, so long as it is relevant to United States practice.

SB532,108 Section 108. Accy 8.05 of the administrative code is renumbered Accy 3.202, and Accy 3.202 (2) (d), as renumbered, is amended to read:

SB532,35,22 Accy 3.202 (2) (d) The applicant has successfully completed the professional ethics examination in s. Accy 3.10 2.306.

SB532,109 Section 109. Chapter Accy 9 (title) of the administrative code is renumbered Chapter Accy 6 (title).

SB532,110 Section 110. Accy 9.01 of the administrative code is repealed.

SB532,111 Section 111. Accy 9.02 (Note) of the administrative code is renumbered Accy 6.101 (Note) and amended to read:

SB532,36,6 Accy 6.101 Note: The following questions are intended to assist firms in determining whether a peer review is required for renewal. An affirmative response to any part of any question means that a peer review is required. Caution: This list is not exclusive. Refer to the standards if in doubt.

SB532,36,8 1. Does your firm audit SEC clients, including employer-sponsored plans required to file a form 11-K with the SEC?

SB532,36,9 2. Does your firm currently perform the following types of engagements?

SB532,36,10 • Engagements applying Statements on Auditing Standards (SASs) - Audits?

SB532,36,11 • Agreed-upon procedures?

SB532,36,13 • Engagements applying Statements on Standards for Accounting and Review Services (SSARS)?

SB532,36,14 • Reviews of financial statements?