A00375
STATE OF NEW YORK
________________________________________________________________________
375--A
2003-2004 Regular Sessions
IN ASSEMBLY
(Prefiled)
January 8, 2003
___________
Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. LAVELLE
-- read once and referred to the Committee on Higher Education --
recommitted to the Committee on Higher Education in accordance with
Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the education law, in relation to exempt persons under
the profession of public accountancy
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 7407 of the education law is amended by adding two
2 new subdivisions g and h to read as follows:
3 g. Any individual, not licensed as a certified public accountant or
4 public accountant pursuant to this article, from performing compilations
5 or reviews, so long as the compilation or review is not accompanied by
6 any statement, report, or wording indicating such individual is a certi-
7 fied public accountant, public accountant, or auditor.
8 h. Any individual, not licensed as a certified public accountant or
9 public accountant pursuant to this article, from using the following or
10 substantially similar statement when performing compilations or reviews
11 pursuant to subdivision g of this section:
12 "(I/We) have prepared the accompanying (financial statements) of (name
13 of entity) as of (time period) for the (period) then ended. This presen-
14 tation is limited to preparing in the form of financial statements,
15 information that is the representation of (name of entity). (I/We) do
16 not express any form of assurance with respect to these financial state-
17 ments."
18 § 2. Subdivision 2 of section 7408 of the education law, as amended by
19 chapter 994 of the laws of 1971, is amended and four new subdivisions,
20 3, 4, 5, and 6 are added to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03470-02-4
A. 375--A 2
1 2. Any person shall be guilty of a class A misdemeanor who shall use,
2 in connection with the practice of public accountancy, or in any manner
3 tending to imply that he or she is an independent accountant or auditor,
4 the designations "chartered accountant", "certified accountant", "expert
5 accountant", "certified tax accountant", "tax accountant", "enrolled
6 accountant", "enrolled public accountant", "registered accountant",
7 "licensed accountant", "incorporated accountant", "registered public
8 accountant", "licensed public accountant", or any abbreviation thereof,
9 or the letters "C.A.", "E.A.", "C.T.A.", "T.A.", "E.P.A.", "R.A.",
10 "L.A.", "I.A.", "P.A.", "R.P.A.", or, "L.P.A.", except as provided else-
11 where in this article, or any other designation tending to imply that he
12 or she has expert knowledge in accounting or auditing.
13 3. No firm shall hold itself out to the public, in consideration of
14 compensation received or to be received, for the practice of public
15 accountancy as defined in section seventy-four hundred one of this arti-
16 cle in this state or use the title "CPA" or "CPA firm" or "PA" or "PA
17 firm" without a registration from the department. As a condition of
18 registration or its renewal, the firm shall demonstrate that it has
19 complied with the provisions of this article, any other applicable laws
20 and such other requirements as the department may impose, consistent
21 with this article.
22 4. Nothing in this subdivision shall prevent an individual enrolled to
23 practice before the United States internal revenue service, pursuant to
24 regulations promulgated by the internal revenue service, from using the
25 designation "enrolled agent" or the letters "E.A.". This subdivision
26 shall not apply to any designations authorized by a national credential-
27 ing body recognized by the department.
28 5. For purposes of this section, the term "member" means a person who
29 has been admitted as a member of a professional service limited liabil-
30 ity company in accordance with the terms and provisions of the limited
31 liability company law and the operating agreement of such professional
32 service limited liability company, and has a membership interest in such
33 limited liability company with the rights, obligations, preferences and
34 limitations specified under the limited liability company law and such
35 operating agreement.
36 6. An individual not licensed as a certified public accountant or
37 public accountant, or any entity not registered pursuant to this article
38 may prepare a financial statement so long as it is not accompanied by
39 any statement, report, or wording indicating such individual is a certi-
40 fied public accountant or public accountant or that such entity is
41 registered to practice public accountancy under this article. Such non-
42 licensed individuals and non-registered entities shall include the
43 following written language when preparing financial statement(s):
44 a. "(I, We) have prepared the accompanying financial statement(s) of
45 (name of business or organization) as of the (time period) and for the
46 (period) then ended. This presentation is limited to preparing, in the
47 form of a financial statement(s), information that is the representation
48 of (name of business or organization)"; and
49 b. "(I, We) have not audited or reviewed the accompanying financial
50 statement(s) and accordingly do not express an opinion or any other form
51 of assurance on them."
52 § 3. This act shall take effect immediately.