SB532,17 14Section 17. Accy 1.401 (1) and (2) (a) (intro.), (c) and (e) 2. of the administrative
15code are amended to read:
SB532,8,1716 Accy 1.401 (1) No person licensed to practice as a certified public accountant,
17as defined in the statutes,
shall commit an act discreditable to the profession.
SB532,9,8 18(2) (a) Client's records and accountant's workpapers. (intro.) Retention of client
19records after a demand is made for them is an act discreditable to the profession in
20violation of this section. It would be a violation of the code to retain a client's records
21to enforce payment.
A certified public accountant's working papers are his or her the
22property of the certified public accountant and need not be surrendered to the client.
23However, in some instances working papers will contain data which that should
24properly be reflected in the client's books and records but which that for convenience
25have not been duplicated therein, with the result that the client's records are

1incomplete. In such instances, the portion of the working papers containing such
2data constitutes part of the client's records, and copies should be made available to
3the client upon request. If a certified public accountant is engaged to perform certain
4work for a client and the engagement is terminated prior to the completion of such
5work, the certified public accountant is required to return or furnish copies of only
6those records originally given to the certified public accountant by the client.
7Examples of working papers that are considered to be the client's records would
8include all of the following:
SB532,9,129 (c) Duty discharged. Once the certified public accountant has returned the
10client's records or furnished the copies of such records and/or and necessary
11supporting data, the obligation has been discharged in this regard and it is not
12necessary to comply with any subsequent requests to again furnish such records.
SB532,9,2013 (e) 2. On conviction for willful failure to file an income tax return or other
14another document which, that the certified public accountant as an individual is
15required by law to file, for filing a false or fraudulent income tax return or other
16document on his or her or a client's behalf, or for willful aiding in the preparation
17and/or and presentation of a false or fraudulent income tax return of a client, or for
18the willful making of a false representation in connection with the determination,
19collection, or refund of any tax, whether it be in his or her own behalf or in behalf of
20a client, the board will initiate charges in every instance.
SB532,18 21Section 18. Accy 1.401 (2) (f) of the administrative code is amended to read:
SB532,9,2322 Accy 1.401 (2) (f) Notification of convictions. A certified public accountant shall
23notify the board in writing within 60 days 48 hours after being convicted of a crime.
SB532,19 24Section 19. Accy 1.404 (1) of the administrative code is amended to read:
SB532,10,4
1Accy 1.404 (1) A person who is engaged in practice as a certified public
2accountant, as defined in the statutes, shall not concurrently engage in any business
3or occupation which that would create a conflict of interest rendering professional
4services.
SB532,20 5Section 20. Accy 1.405 of the administrative code is repealed and recreated
6to read:
SB532,10,11 7Accy 1.405 Firm Names. (1) An individual or firm may practice as a certified
8public accountant in any form of business organization permitted by state law. No
9person licensed to practice as a certified public accountant may practice under a firm
10name that is misleading as to the type of organization. A misleading CPA firm name
11is any of the following:
SB532,10,1612 (a) A name that contains any representation that would be likely to cause a
13reasonable person to misunderstand or be confused about the legal form of the firm,
14or about who the owners or members of the firm are, such as a reference to a type of
15organization or an abbreviation thereof that does not accurately reflect the form
16under which the firm is organized, including any of the following:
SB532,10,2017 1. A name that implies the existence of a corporation when the firm is not a
18corporation, such as through the use of the words "corporation," "incorporated,"
19"Ltd.," "professional corporation," or an abbreviation thereof as part of the firm name
20if the firm is not incorporated or is not a professional corporation.
SB532,10,2321 2. A name that implies the existence of a partnership when there is not a
22partnership, such as by use of the term "partnership" or "limited liability
23partnership" or the abbreviation "LLP" if the firm is not such an entity.
SB532,10,2524 3. A name that includes the name of an individual who is not a CPA if the title
25"CPAs" is included in the firm name.
SB532,11,2
14. A name that includes information about or indicates an association with
2persons who are not members of the firm, except as provided in subs. (3) and (4).
SB532,11,63 5. A name that includes the terms "& Company," "& Associate," or "Group," if
4the firm does not include, in addition to the named partner, shareholder, owner, or
5member, at least one other unnamed partner, shareholder, owner, member, or staff
6employee.
SB532,11,107 (b) A name that contains any representation that would be likely to cause a
8reasonable person to have a false or unjustified expectation of favorable results or
9capabilities, through the use of a false or unjustified statement of fact as to any
10material matter.
SB532,11,1211 (c) A name that claims or implies the ability to influence a regulatory body or
12official.
SB532,11,1613 (d) A name that includes the name of an owner whose license has been revoked
14for disciplinary reasons by the board, whereby the licensee has been prohibited from
15practicing public accountancy or prohibited from using the title CPA or holding
16himself or herself out as a certified public accountant.
SB532,11,18 17(2) Any of the following is a permissible type of CPA firm name if it does not
18otherwise violate this subchapter:
SB532,11,2019 (a) A firm name that includes the names of one or more former or present
20owners.
SB532,11,2221 (b) A firm name that excludes the names of one or more former or present
22owners.
SB532,11,2523 (c) A firm name that uses the CPA title as part of the firm name when all named
24individuals are owners of the firm who hold such title or are former owners who held
25such title at the time they ceased to be owners of the firm.
SB532,12,2
1(d) A firm name that includes the name of a non-CPA owner if the CPA title
2is not a part of the firm name.
SB532,12,4 3(3) A network firm may use a common brand name or share common initials
4as part of the firm name.
SB532,12,7 5(4) A network firm may use the network name as the firm's name, provided that
6it also shares one or more of the following characteristics with other firms in the
7network:
SB532,12,98 (a) Common control, as defined by generally accepted accounting principles in
9the U.S., among the firms through ownership, management, or other means.
SB532,12,1210 (b) Profits or costs, excluding costs of operating the association, costs
11developing audit methodologies, manuals and training courses, and other costs that
12are immaterial to the firm.
SB532,12,1513 (c) A common business strategy that involves ongoing collaboration among the
14firms whereby the firms are responsible for implementing the association's strategy
15and are held accountable for performance pursuant to that strategy.
SB532,12,1616 (d) A significant part of professional resources.
SB532,12,1817 (e) Common quality control policies and procedures that participating firms are
18required to implement and that are monitored by the association.
SB532,21 19Section 21. Chapter Accy 2 (title) of the administrative code is created to read:
SB532,12,2020 Chapter accy 2
SB532,12,2221 individual certification and
22 licensure
SB532,22 23Section 22. Subchapter I (title) of chapter Accy 2 [precedes Accy 2.001] of the
24administrative code is created to read:
SB532,12,2525 Chapter accy 2
SB532,13,1
1subchapter I
SB532,13,22 authority and definitions
SB532,23 3Section 23. Accy 2.001 of the administrative code is created to read:
SB532,13,5 4Accy 2.001 Authority. The rules in this chapter are adopted under the
5authority in ss. 15.08 (5) (b), 227.11 (2), and 442.04, Stats.
SB532,24 6Section 24. Accy 2.002 of the administrative code is created to read:
SB532,13,7 7Accy 2.002 Definitions. In this chapter:
SB532,13,9 8(1) "Accredited" means to be listed by an accrediting agency recognized by the
9secretary of the federal department of education.
SB532,13,12 10Note: For a listing of accrediting agencies recognized by the secretary of the
11federal department of education, see
12 http:/www2.ed.gov/admins/finaid/accred/accreditation_pg6.html.
SB532,13,15 13(2) "Bachelor's degree" means a baccalaureate degree normally conferred by
14universities and colleges at the completion of at least a 4-year, full-time,
15academic-year program of study.
SB532,13,18 16Note: Some students complete the 4-year bachelor's degree in less than 4 years
17by attending summer school or maximum course loads over a number of academic
18semesters.
SB532,25 19Section 25. Subchapter II (title) of chapter Accy 2 [precedes Accy 2.101] of the
20administrative code is created to read:
SB532,13,2121 chapter accy 2
SB532,13,2222 subchapter II
SB532,13,2423 application for certification
24 of individuals
SB532,26 25Section 26. Accy 2.101 (Note) of the administrative code is created to read:
SB532,14,4
1Accy 2.101 Note: Application forms are available upon request to the board's
2office at 1400 East Washington Avenue, P.O. Box 8935, Madison WI 53708-8935 or
3on the Internet at www.dsps.wi.gov. An applicant with a disability will be provided
4reasonable accommodations.
SB532,27 5Section 27. Accy 2.101 (3), (4) and (5) of the administrative code are created
6to read:
SB532,14,87 Accy 2.101 (3) Evidence of at least one year of public accounting experience as
8required by s. Accy 2.403 and s. 442.04 (5) (b) 5., Stats.
SB532,14,10 9(4) Evidence that the applicant has successfully passed each section of the
10Uniform Certified Public Accountant Examination.
SB532,14,13 11(5) Successful completion of the open book professional ethics examination on
12statutes and rules governing the practice of public accounting in Wisconsin as set
13forth in s. Accy 2.306.
SB532,28 14Section 28. Subchapter III (title) of chapter Accy 2 [precedes Accy 2.202] of the
15administrative code is created to read:
SB532,14,1616 chapter accy 2
SB532,14,1717 subchapter III
SB532,14,1818 education
SB532,29 19Section 29. Accy 2.202 (1) (a) to (f) and (2) of the administrative code are
20created to read:
SB532,14,2121 Accy 2.202 (1) (a) Intermediate financial accounting.
SB532,14,2222 (b) Advanced financial accounting.
SB532,14,2323 (c) Cost or managerial accounting.
SB532,14,2424 (d) Taxation.
SB532,14,2525 (e) Auditing.
SB532,15,1
1(f) Accounting information systems.
SB532,15,4 2(2) At least 24 semester hours in business courses other than accounting
3courses, at the undergraduate or graduate level, including at least one course in each
4of the following subjects:
SB532,15,55 (a) Economics.
SB532,15,66 (b) Finance.
SB532,15,77 (c) Marketing.
SB532,15,88 (d) Management or organizational behavior.
SB532,15,99 (e) Business law.
SB532,15,1010 (f) Information technology.
SB532,15,17 11Note: The courses covering the subjects of advanced financial accounting, cost
12or managerial accounting, taxation, and auditing under s. Accy 2.202 (1), would
13generally be courses taken beyond the introduction level. A course would generally
14be considered advanced financial accounting if it covers one or more of the following
15topics: foreign currency transactions, partnerships, state and local governments,
16not-for-profit entities, consolidations, mergers and acquisitions, intercompany
17transactions, fraud investigations, accounting theory, and accounting research.
SB532,30 18Section 30. Subchapter IV (title) of chapter Accy 2 [precedes Accy 2.301] of the
19administrative code is created to read:
SB532,15,2020 chapter accy 2
SB532,15,2121 subchapter iv
SB532,15,2222 examination
SB532,31 23Section 31. Accy 2.305 (1) (g) of the administrative code is created to read:
SB532,15,2524 Accy 2.305 (1) (g) Falsifying or misrepresenting educational credentials or
25other information required for admission to the examination.
SB532,32
1Section 32. Subchapter V (title) of chapter Accy 2 [precedes Accy 2.401] of the
2administrative code is created to read:
SB532,16,33 chapter accy 2
SB532,16,44 subchapter v
SB532,16,55 experience
SB532,33 6Section 33. Accy 2.401 (2) of the administrative code is created to read:
SB532,16,97 Accy 2.401 (2) Experience may consist of providing any type of services or
8advice using accounting, attest, compilation, management advisory, financial
9advisory, tax, or related consulting skills.
SB532,34 10Section 34. Subchapter VI (title) of chapter Accy 2 [precedes Accy 2.501] of the
11administrative code is created to read:
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