AB725: Bill Text

AB725,58 Section 58. Accy 4.01 of the administrative code is renumbered Accy 5.301.

AB725,59 Section 59. Accy 4.02 of the administrative code is renumbered Accy 5.101 and amended to read:

AB725,23,9 Accy 5.101 Firm license. A firm shall meet the ownership requirements of s. 442.08 (2) (c) 2., Stats., and be licensed as a certified public accountant if any member of the firm practices as a certified public accountant in Wisconsin other than on a temporary basis as described in s. 442.025 (4), Stats. An individual licensed as a CPA may only provide attest services, as defined in s. 442.001 (1), Stats., in a CPA firm that has a firm license.

AB725,60 Section 60. Accy 4.03 of the administrative code is renumbered Accy 5.201.

AB725,61 Section 61. Accy 4.035 of the administrative code is repealed.

AB725,62 Section 62. Accy 4.037 of the administrative code is renumbered Accy 5.102, and Accy 5.102 (3) (d), as renumbered, is amended to read:

AB725,23,15 Accy 5.102 (3) (d) That the applicant has satisfied the peer review requirements in s. 442.087, Stats., and ch. Accy 9 6.

AB725,63 Section 63. Accy 4.04 of the administrative code is renumbered Accy 5.302 and amended to read:

AB725,23,22 Accy 5.302 Firms without office in this state. Firms without a bona fide office in this state, as described in s. Accy 4.06 5.303 (2), may be licensed if there is a licensed Wisconsin certified public accountant designated as the individual responsible for the firm's compliance with ch. 442, Stats., for the Wisconsin engagement or engagements.

AB725,64 Section 64. Accy 4.05 of the administrative code is renumbered Accy 5.103.

AB725,65 Section 65. Accy 4.06 of the administrative code is renumbered Accy 5.303.

AB725,66 Section 66. Accy 4.07 (title) of the administrative code is renumbered Accy 5.401 (title) and amended to read:

AB725,24,3 Accy 5.401 (title) Change in member members of a firm.

AB725,67 Section 67. Accy 4.07 (1) of the administrative code is renumbered Accy 5.401 (1) (intro.) and amended to read:

AB725,24,8 Accy 5.401 (1) (intro.) The board is to shall be notified by the firm in writing of changes in the member members of the firm or firm name or any of the following no later than 30 days after the change.:

AB725,68 Section 68. Accy 4.07 (2) of the administrative code is renumbered 5.401 (3).

AB725,69 Section 69. Subchapter II of chapter Accy 4 [precedes Accy 4.101] of the administrative code is created to read:

AB725,24,12 chapter accy 4

AB725,24,13 subchapter iI

AB725,24,14 discipline

AB725,24,16 Accy 4.101 Grounds for discipline. Grounds for discipline include all of the following:

AB725,24,19 (1) Engaging in dishonesty, fraud, or deceit in obtaining a certificate or license, including submitting to the board any evidence known to be false or forged in, or in support of, an application for a certificate or license or cheating on an examination.

AB725,24,21 (2) Knowingly making misleading, deceptive, or untrue representations in the performance of services.

AB725,24,23 (3) Using the CPA title or providing attest services in this state without a certificate or license or without properly qualifying to practice across state lines.

AB725,24,25 (4) Using or attempting to use a certificate or license that has been suspended or revoked.

AB725,25,2 (5) Making any false, misleading, or deceptive statement in support of an application for a license filed by another person.

AB725,25,6 (6) Failing to comply with professional standards as to the attest or compilation competency requirements for those who supervise attest or compilation engagements and sign reports on financial statements or other compilation communications with respect to financial statements.

AB725,25,8 (7) Failing to comply with the applicable peer review requirements set out in ch. Accy 6.

AB725,25,12 (8) Engaging in conduct reflecting adversely upon the licensee's fitness to perform services, including conduct constituting incompetence. In this subsection, "conduct constituting incompetence" includes gross negligence, recklessness, or repeated acts of negligence in the licensee's record of professional practice.

AB725,25,16 (9) Engaging in professional practice while having any condition, whether physical or mental, that endangers the public by impairing skill and care in providing professional services. Evidence of such a condition includes evidence that the person has been adjudicated as mentally incompetent.

AB725,25,17 (10) Presenting a license issued to another person as one's own.

AB725,25,19 (11) Concealing information regarding violations by other licensees when questioned or requested by the board.

AB725,26,2 (12) Willfully failing to file a report or record required by state or federal law; willfully impeding or obstructing the filing of such a report or record or inducing another person to impede or obstruct such filing by another person; or making or filing such a report or record that one knows to be false. A finding, adjudication, consent order, or conviction by a federal or state court, agency, or regulatory authority or by the Public Company Accounting Oversight Board that a licensee has willfully failed to file a required report or record shall be prima facie evidence of a violation of this subsection.

AB725,26,8 (13) Having an active or stayed revocation or suspension of any occupational license or other privilege to practice any licensed occupation by or before any state, federal, foreign, or other licensing or regulatory authority, provided that the grounds for the revocation or suspension include wrongful conduct such as fraud, dishonesty, or deceit or any other conduct that evidences an unfitness of the applicant to practice public accountancy.

AB725,70 Section 70. Chapter Accy 5 (title) of the administrative code is repealed and recreated to read:

AB725,26,11 chapter accy 5

AB725,26,12 firm licensure

AB725,71 Section 71. Accy 5.01 (title) of the administrative code is renumbered Accy 2.401 (title) and amended to read:

AB725,26,15 Accy 2.401 (title) Review dates of candidate's experience.

AB725,72 Section 72. Accy 5.01 of the administrative code is renumbered Accy 2.401 (1) and amended to read:

AB725,27,2 Accy 2.401 (1) Following the successful passing of the written each section of the uniform CPA examination and upon written request by a candidate, a candidate's experience shall be reviewed by the board. The written request shall include employer verification statements and information on experience to update the experience data already in the candidate's file. Such evaluation will determine whether the candidate qualifies at that time under the requirement of having at least 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 board shall inform the candidate if additional experience is needed. Upon gaining the required additional experience, the candidate shall notify the board and provide verification.

AB725,73 Section 73. Accy 5.02 of the administrative code is renumbered Accy 2.402.

AB725,74 Section 74. Accy 5.03 of the administrative code is renumbered Accy 2.403 and amended to read:

AB725,27,13 Accy 2.403 Public accounting experience. An individual must have at least one year of public accounting experience or its equivalent as determined by the board. Experience shall be acquired after the applicant has earned a degree described in s. 442.04 Stats., that qualifies the applicant to take the CPA examination 120 semester hours of education from an accredited college or university, including courses covering each of the subjects and the semester hours specified in s. Accy 2.202 (1) and (2). This experience must have been acquired within 5 years prior to applying for the certification as a certified public accountant.

AB725,75 Section 75. Accy 5.04 of the administrative code is renumbered Accy 2.404.

AB725,76 Section 76. Accy 5.05 of the administrative code is renumbered Accy 2.405.

AB725,77 Section 77. Accy 5.06 of the administrative code is repealed.

AB725,78 Section 78. Accy 5.07 of the administrative code is renumbered Accy 2.406.

AB725,79 Section 79. Subchapter I (title) of chapter Accy 5 [precedes Accy 5.101] of the administrative code is created to read:

AB725,27,20 chapter accy 5

AB725,27,21 subchapter I

AB725,27,22 APPLICATION FOR FIRM LICENSURE

AB725,80 Section 80. Subchapter II (title) of chapter Accy 5 [precedes Accy 5.201] of the administrative code is created to read:

AB725,27,25 chapter accy 5

AB725,28,1 subchapter II

AB725,28,2 SOLE PROPRIETOR

AB725,81 Section 81. Subchapter III (title) of chapter Accy 5 [precedes Accy 5.301] of the administrative code is created to read:

AB725,28,5 chapter accy 5

AB725,28,6 subchapter III

AB725,28,7 OFFICEs; internet practice

AB725,82 Section 82. Accy 5.304 of the administrative code is created to read:

AB725,28,13 Accy 5.304 Internet practice. A CPA firm offering or rendering professional services via an Internet site shall provide in the Internet site's homepage, a name, an address, and a principal state of licensure as a means for regulators and the public to contact a responsible licensee in charge at the firm regarding complaints, questions, or regulatory compliance.

AB725,83 Section 83. Subchapter IV (title) of chapter Accy 5 [precedes Accy 5.401] of the administrative code is created to read:

AB725,28,16 chapter accy 5

AB725,28,17 subchapter IV

AB725,28,18 firm MEMBERs

AB725,84 Section 84. Accy 5.401 (1) (a) to (d) and (2) of the administrative code are created to read:

AB725,28,21 Accy 5.401 (1) (a) Formation of a new firm.

AB725,28,22 (b) Termination of a firm.

AB725,28,23 (c) Change in the management of any branch office in this state.

AB725,28,25 (d) Establishment of a new branch office or the closing or change of address of a branch office in this state.

AB725,29,3 (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.

AB725,85 Section 85. Subchapter I of chapter Accy 6 [precedes Accy 6.001] of the administrative code is created to read:

AB725,29,6 chapter accy 6

AB725,29,7 subchapter I

AB725,29,8 authority and definitions

AB725,29,10 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.

AB725,29,11 Accy 6.002 Definitions. As used in this chapter:

AB725,29,17 (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.

AB725,29,21 (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.

AB725,30,2 (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.

AB725,30,5 (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:

AB725,30,6 1. The Wisconsin Institute of Certified Professional Accountants.

AB725,30,8 2. A peer-review program administrator approved by a board that regulates certified public accountants in any other CPA licensing jurisdiction.

AB725,30,11 (b) "Peer-review program" includes the standards for administering, performing, and reporting on peer reviews, oversight procedures, and training and related guidance materials.

AB725,30,14 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.

AB725,30,17 (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.

AB725,30,19 (6) "Peer-review standards" means professional standards for administering, performing, and reporting on peer reviews under a peer-review program.

AB725,30,24 (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.