442.04 Certified public accountants; qualifications.
442.05 Certification by endorsement.
442.07 Requirements for practice as certified public accountant.
442.10 Disclosure of interest in entity reported on.
442.115 Enforcement actions for violations of this chapter.
442.12 Disciplinary action.
442.13 Ownership of accountant's working papers.
Ch. 442 Cross-reference
Cross-reference: See definitions in s.
440.01.
442.001
442.001
Definitions. In this chapter:
442.001(1)
(1) "Attest service" means any of the following:
442.001(1)(a)
(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).
442.001(1)(b)
(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).
442.001(1)(c)
(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).
442.001(3)
(3) "Examining board" means the accounting examining board.
442.001(4)
(4) "Firm" means a proprietorship, partnership, limited liability partnership, corporation, service corporation, or limited liability company.
442.001(5)
(5) "Member of a firm" means a director, manager, employee, officer, owner, shareholder, principal, or partner of a firm.
442.001 History
History: 1999 a. 85 s.
86;
2001 a. 16.
442.01
442.01
Examining board; duties. 442.01(1)
(1) The examining board shall promulgate rules that adopt by reference all of the following:
442.01(1)(a)
(a) The statements on auditing standards issued by the Auditing Standards Board of the American Institute of Certified Public Accountants.
442.01(1)(b)
(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.
442.01(1)(c)
(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.
442.01(2)
(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.
442.01(3)
(3) The examining board shall record its proceedings.
442.01 Cross-reference
Cross Reference: See also
Accy, Wis. adm. code.
442.02
442.02
Certified public accountant, definition. 442.02(1m)
(1m) 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:
442.02(1m)(a)
(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.
442.02(1m)(b)
(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.
442.02(1m)(c)
(c) The person offers to prospective clients to perform for compensation, or performs on behalf of clients for compensation, professional services that involve or require an audit of financial transactions and accounting records.
442.02(1m)(d)
(d) The person prepares for clients reports of audits, balance sheets, and other financial, accounting and related schedules, exhibits, statements or reports that are to be used for publication or for credit purposes, or are to be filed with a court of law or with any other governmental agency, or for any other purpose.
442.02(1m)(dm)
(dm) The person provides or offers to provide an attest service.
442.02(1m)(e)
(e) The person, in general or as an incident to such work, renders professional assistance to clients for compensation in any or all matters relating to accounting procedure and the recording and presentation of financial facts.
442.02(1m)(f)
(f) The person signs or affixes his or her name or any trade or assumed name used by the person in his or her business or profession to an opinion or certificate attesting to the reliability of any representation or estimate in regard to any person or organization embracing financial information, financial transactions or accounting records.
442.02(5m)
(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.
442.02(6)
(6) Every member of a firm who, 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.
442.02 History
History: 1979 c. 162 ss.
7,
38 (7), (9);
1999 a. 85;
2001 a. 16.
442.025
442.025
Applicability. This chapter does not require a certificate or license under this chapter for any of the following:
442.025(1)
(1) Persons employed by a certified public accountant or firm licensed under this chapter to serve as accountants in various capacities, as needed, if all of the following conditions are met:
442.025(1)(a)
(a) The employees serving as accountants work under the control and supervision of certified public accountants.
442.025(1)(b)
(b) The employees serving as accountants do not issue any statements or reports over their own names except office reports to their employer that are customary.
442.025(1)(c)
(c) The employees serving as accountants are not in any manner held out to the public as certified public accountants.
442.025(2)
(2) A practicing attorney, who, in connection with his or her professional work renders any accounting service.
442.025(3)
(3) A person employed by more than one person for the purpose of keeping books, making trial balances, or statements, and preparing reports, if all of the following requirements are met:
442.025(3)(a)
(a) The reports described in this subsection are not used or issued by the employers as having been prepared by a certified public accountant.
442.025(4)
(4) 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.
442.025(5)
(5) A public official or public employee in performing his or her duties.
442.025(6)
(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.
442.025(7)
(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.
442.025 History
History: 2001 a. 16 ss.
3606rd to
3606rL.
442.03
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 under an assumed name, or as 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 and firm have complied with all of the provisions of this chapter, including licensure.
442.04
442.04
Certified public accountants; qualifications. 442.04(1)(1) The examining board shall grant a certificate as a certified public accountant to all persons who become entitled thereto under this section and
s. 442.05. A certificate is permanent unless revoked and not subject to periodic renewal.
442.04(2)
(2) Examinations shall be held by the examining board at least once in each year at such times and places as are determined by the examining board. Notice of the time and place of each examination shall be published, as a class 2 notice, under
ch. 985, in at least one daily newspaper published in the city of Milwaukee, and in at least one daily newspaper published in the city of Madison, with the last insertion not less than 30 days prior to the date of such examination. Not less than 30 days prior to each examination, each applicant who has made inquiry prior to the first insertion, shall be notified by mail by the department, at the address mentioned in the application, of the time and place of the examination.
442.04(4)(a)(a) In this subsection, "institution" means a bachelor's degree-granting institution of higher education accredited by the commission on institutions of higher education of the north central association of colleges and schools or its regional equivalent.
442.04(4)(bm)
(bm) 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).
442.04(4)(c)
(c) If an applicant has a bachelor's or higher degree from an institution but does not have 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 an accounting concentration required in
par. (bm), the examining board shall approve the applicant for examination.
442.04(5)
(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 an examination in such subjects affecting accountancy as the examining board considers necessary. The examining board may not grant the certificate unless the applicant has 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 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.
442.04 Cross-reference
Cross Reference: See also ss.
Accy 7.01 and
8.01, Wis. adm. code.
442.05
442.05
Certification by endorsement. The examining board may grant a certificate to any applicant who is the holder of a certificate or license to practice as a certified public accountant issued under the laws of any other state or foreign country. The applicant must also establish his or her substantial equivalence of the qualifications required under
s. 442.04. The sufficiency of the substantial equivalence shall be judged by the examining board. Upon denial of a certificate under this subsection the examining board shall notify the applicant in writing of the decision, stating the reason for denial and that the applicant has the right to a hearing if a written request is filed with the examining board within 30 days after the notice of denial. Service of the notice of denial may be made by mail addressed to the applicant at the latest address filed by the applicant in writing with the examining board. Service by mail is complete on the date of mailing.
442.05 History
History: 1975 c. 318;
1981 c. 356.
442.05 Cross-reference
Cross Reference: See also s.
Accy 8.01, Wis. adm. code.
442.07
442.07
Requirements for practice as certified public accountant. 442.07(1)(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.
442.07(3)
(3) Any firm that is entitled to practice as certified public accountants in this state or any other state and every resident member of the firm who is a certified public accountant of this state, after registering the firm name with the examining board, may use the designation "certified public accountants" in connection with the firm name.
442.08(1)(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).
442.08(2)
(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:
442.08(2)(a)
(a) Identifies each office of the firm that is located in this state.
442.08(2)(b)
(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.
442.08(2)(c)
(c) Demonstrates, to the satisfaction of the department, each of the following:
442.08(2)(c)1.
1. That all attest services provided by the firm in this state are under the charge of an individual licensed under
sub. (1).
442.08(2)(c)2.
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.
442.08(2)(c)3.
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.
442.08(3)
(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.
442.083
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.
