2001 Wisconsin Act 16

16,3605uv Section 3605uv. 440.95 (4) (c) of the statutes is amended to read:

440.95 (4) (c) Fails to file a report or files an incomplete, false, or misleading report under s. 440.92 (6) 440.926.

16,3605ux Section 3605ux. 440.95 (5) of the statutes is amended to read:

440.95 (5) Except as provided in sub. (4), any person who violates s. ss. 440.92 to 440.927 or any rule promulgated under s. ss. 440.92 to 440.927 may be required to forfeit not more than $200 for each offense. Each day of continued violation constitutes a separate offense.

16,3606pb Section 3606pb. 442.001 of the statutes is renumbered 442.001 (intro.) and amended to read:

442.001 Definition Definitions. (intro.) In this chapter, "examining:

(3) "Examining board" means the accounting examining board.

16,3606pd Section 3606pd. 442.001 (1) of the statutes is created to read:

442.001 (1) "Attest service" means any of the following:

(a) An audit or any other engagement that is performed or intended to be performed in accordance with rules promulgated under s. 442.01 (1) (a).

(b) A review of a financial statement that is performed or intended to be performed in accordance with rules promulgated under s. 442.01 (1) (b).

(c) An examination of prospective financial information that is performed or intended to be performed in accordance with rules promulgated under s. 442.01 (1) (c).

16,3606pf Section 3606pf. 442.001 (4) of the statutes is created to read:

442.001 (4) "Firm" means a proprietorship, partnership, limited liability partnership, corporation, service corporation, or limited liability company.

16,3606ph Section 3606ph. 442.001 (5) of the statutes is created to read:

442.001 (5) "Member of a firm" means a director, manager, employee, officer, owner, shareholder, principal, or partner of a firm.

16,3606pj Section 3606pj. 442.01 (1) of the statutes is created to read:

442.01 (1) The examining board shall promulgate rules that adopt by reference all of the following:

(a) The statements on auditing standards issued by the Auditing Standards Board of the American Institute of Certified Public Accountants.

(b) 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.

(c) The statements on standards for attestation engagements issued by the Auditing Standards Board, the Accounting and Review Services Committee, and the Consulting Services Executive Committee of the American Institute of Certified Public Accountants.

16,3606pL Section 3606pL. 442.01 (2) of the statutes is amended to read:

442.01 (2) No standard or rule relating to professional conduct or unethical practice may be adopted until the examining board has held a public hearing with reference thereto, subject to the rules promulgated under s. 440.03 (1). No rule or standard shall become effective until 60 days after its adoption by the examining board. Any person who has appeared at the public hearing and filed written protest against any proposed standard or rule may, upon the adoption of such standard or rule, obtain a review thereof under ch. 227. Thereafter every person practicing as a certified public accountant in the state shall be governed and controlled by the rules and standards prescribed by the examining board.

16,3606pn Section 3606pn. 442.01 (3) of the statutes is amended to read:

442.01 (3) The examining board shall record its proceedings.

16,3606pp Section 3606pp. 442.02 (title) of the statutes is amended to read:

442.02 (title) Public Certified public accountant, definition.

16,3606pr Section 3606pr. 442.02 (1m) (intro.) of the statutes is amended to read:

442.02 (1m) (intro.) A person shall be considered to be in practice as a certified public accountant, within the meaning and intent of this chapter, if any of the following conditions is met:

16,3606pt Section 3606pt. 442.02 (1m) (a) of the statutes is amended to read:

442.02 (1m) (a) The person holds himself or herself out to the public in any manner as one skilled in the knowledge, science, and practice of accounting, and as qualified and ready to render professional service therein as a certified public accountant for compensation.

16,3606pv Section 3606pv. 442.02 (1m) (b) of the statutes is amended to read:

442.02 (1m) (b) The person maintains an office for the transaction of business as a certified public accountant or, except as an employee of a certified public accountant, practices accounting, as distinguished from bookkeeping, for more than one employer.

16,3606px Section 3606px. 442.02 (1m) (dm) of the statutes is created to read:

442.02 (1m) (dm) The person provides or offers to provide an attest service.

16,3606pz Section 3606pz. 442.02 (5m) of the statutes is amended to read:

442.02 (5m) Subsection (1m) (f) does not prohibit any officer, employee, partner, or principal of any organization from affixing his or her signature to any statement or report in reference to the affairs of that organization with any wording designating the position, title, or office that he or she holds in that organization and does not prohibit any act of a public official or public employee in the performance of his or her duties.

16,3606rb Section 3606rb. 442.02 (6) of the statutes is amended to read:

442.02 (6) Every member of a partnership and every officer and director of a corporation firm who, in the capacity of partner, officer or director as a member of the firm, does any of the things enumerated in sub. (1m) (a) to (f), shall be considered to be in practice as a certified public accountant.

16,3606rd Section 3606rd. 442.02 (7) of the statutes is renumbered 442.025 (1) and amended to read:

442.025 (1) Nothing contained in this chapter shall prevent the employment Persons employed by a certified public accountant, or by a public accountant, or by a firm or corporation furnishing public accounting services as principal, of persons licensed under this chapter to serve as accountants in various capacities, as needed, if all of the following conditions are met:

(a) The employees serving as accountants work under the control and supervision of certified public accountants, or accountants with certificates of authority granted under s. 442.06.

(b) Those The employees serving as accountants shall do not issue any statements or reports over their own names except office reports to their employer that are customary.

(c) The employees serving as accountants are not in any manner held out to the public as certified public accountants as described in this chapter.

16,3606rf Section 3606rf. 442.02 (8) of the statutes is renumbered 442.025 (2) and amended to read:

442.025 (2) Nothing contained in this chapter shall apply to a A practicing attorney, who, in connection with his or her professional work renders any accounting service.

16,3606rh Section 3606rh. 442.02 (9) of the statutes is renumbered 442.025 (3) and amended to read:

442.025 (3) (intro.) Nothing contained in this chapter shall apply to any persons who may be A person employed by more than one person, partnership or corporation, for the purpose of keeping books, making trial balances, or statements, and preparing audits or reports, if all of the following requirements are met:

(a) The audits or reports described in this subsection are not used or issued by the employers as having been prepared by a certified public accountant.

(b) The persons employed as described in this subsection do not do any of the things enumerated in sub. s. 442.02 (1m) (f) without complying with sub. except as authorized under s. 442.02 (5m).

16,3606rj Section 3606rj. 442.02 (10) of the statutes is renumbered 442.025 (4) and amended to read:

442.025 (4) Nothing contained in this chapter shall apply to The holders of state-granted certified public accountant certificates from other states who may be temporarily in this state on professional business incident to their regular practice in the states of their domicile, but with neither residence nor office in this state.

16,3606rL Section 3606rL. 442.025 of the statutes is created to read:

442.025 Applicability. This chapter does not require a certificate or license under this chapter for any of the following:

(5) A public official or public employee in performing his or her duties.

(6) A person who performs services involving the use of accounting skills, including management advisory services, the preparation of tax returns, and the preparation of financial statements without issuing reports on the statements.

(7) A person who prepares financial statements and issues information thereon that does not purport to be in compliance with the statement on standards for accounting and review services issued by the American Institute of Certified Public Accountants.

16,3606rn Section 3606rn. 442.03 (1) of the statutes is renumbered 442.03 and amended to read:

442.03 Licenses required. No person may lawfully practice in this state as a certified public accountant either in the person's own name, or as an employee, or under an assumed name, or as an officer, member or employee of a firm, or as an officer or employee of a corporation a member of a firm, unless the person has been granted by the examining board a certificate as a certified public accountant, and unless the person, firm or corporation, jointly and severally, has and firm have complied with all of the provisions of this chapter, including licensure.

16,3606rp Section 3606rp. 442.03 (2) of the statutes is repealed.

16,3606rr Section 3606rr. 442.03 (3) of the statutes is repealed.

16,3606rt Section 3606rt. 442.04 (3) of the statutes is repealed.

16,3606rv Section 3606rv. 442.04 (4) (b) of the statutes is repealed.

16,3606rx Section 3606rx. 442.04 (4) (bm) of the statutes is amended to read:

442.04 (4) (bm) After December 31, 2000, a A person may not take the examination leading to the certificate to practice as a certified public accountant unless the person has completed at least 150 semester hours of education with an accounting concentration at an institution, and has received a bachelor's or higher degree with an accounting concentration from an institution, except as provided in par. (c).

16,3606rz Section 3606rz. 442.04 (4) (c) of the statutes is amended to read:

442.04 (4) (c) If an applicant has a bachelor's or higher degree from an institution but does not have a resident major in accounting required in par. (b) or an accounting concentration required in par. (bm), the examining board may review such other educational experience from an institution as the applicant presents and, if the examining board determines that such other experience provides the reasonable equivalence of a resident major in accounting required in par. (b) or an accounting concentration required in par. (bm), the examining board shall approve the applicant for examination.

16,3606tb Section 3606tb. 442.04 (5) of the statutes is amended to read:

442.04 (5) The examining board may not grant a certificate as a certified public accountant to any person other than a person who is 18 years of age or older, does not have an arrest or conviction record, subject to ss. 111.321, 111.322, and 111.335, and, except as provided in s. 442.05, has successfully passed a written an examination in such subjects affecting accountancy as the examining board considers necessary. If the person applying for the certificate passes the examination during the period beginning on May 17, 1996, and ending on December 31, 2000, the examining board may not grant the certificate unless the applicant has at least 3 years of public accounting experience or its equivalent, the sufficiency of the experience or the equivalency to be judged by the examining board. If the person applying for the certificate passes the examination after December 31, 2000, the The examining board may not grant the certificate unless the applicant has at least 2 years one year of public accounting experience or its equivalent, the sufficiency of the experience or the equivalency to be judged by the examining board. The examining board shall ensure that evaluation procedures and examinations are nondiscriminatory, relate directly to accountancy, and are designed to measure only the ability to perform competently as an accountant. The examining board may use the examination service provided by the American Institute of Certified Public Accountants.

16,3606td Section 3606td. 442.06 of the statutes is repealed.

16,3606tf Section 3606tf. 442.07 (title) of the statutes is amended to read:

442.07 (title) Requirements for practice as certified public accountant or public accountant.

16,3606th Section 3606th. 442.07 (1) of the statutes is amended to read:

442.07 (1) Any person who has been issued a certificate of the person's qualifications to practice as a certified public accountant, shall be styled and known as a "certified public accountant" and no other person shall assume to use such title or the abbreviation "C.P.A." or any other word, words, letters, or figures to indicate that the person using the same is a certified public accountant. The terms "chartered accountant" and "certified accountant" and the abbreviation "C.A." are specifically prohibited to such other persons as being prima facie misleading to the public. Any person who has been issued a certificate of authority, as herein provided, shall be styled and known as a "public accountant" and no other person, other than a certified public accountant, shall assume to use such designation or any other word, words, letters or figures to indicate that such person is entitled to practice as a public accountant.

16,3606tj Section 3606tj. 442.07 (2) of the statutes is repealed.

16,3606tL Section 3606tL. 442.07 (3) of the statutes is amended to read:

442.07 (3) Any partnership, which firm that is entitled to practice as certified public accountants in this state or any other state, and every resident member and resident manager of which the firm who is a certified public accountant of this state, after registering the partnership firm name with the examining board, may use the designation "certified public accountants" in connection with the partnership firm name. Any partnership, every member and resident manager of which is a certified public accountant of this state or any other state or holds a certificate of authority under this chapter, after registering the partnership name with the examining board, may use the designation "public accountants" in connection with the partnership name. An assumed name, in use prior to September 21, 1935, may be used the same as a partnership name, provided the individual persons practicing as principals under that name hold certificates granted by the examining board and register the name with the examining board.

16,3606tn Section 3606tn. 442.08 of the statutes is repealed and recreated to read:

442.08 Licensure. (1) The department shall issue a license to an individual who holds an unrevoked certificate as a certified public accountant, submits an application for the license on a form provided by the department, and pays the fee specified in s. 440.05 (1).

(2) The department shall issue a license to a firm that submits an application for the license on a form provided by the department, pays the fee specified in s. 440.05 (1), and does each of the following:

(a) Identifies each office of the firm that is located in this state.

(b) If any person who holds an ownership interest in the firm is not licensed under sub. (1), designates an individual licensed under sub. (1) as the individual responsible for the firm's compliance with this chapter.

(c) Demonstrates, to the satisfaction of the department, each of the following:

1. That all attest services provided by the firm in this state are under the charge of an individual licensed under sub. (1).

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.

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.

(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.

16,3606tp Section 3606tp. 442.083 of the statutes is created to read:

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.