Bill Summary
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A00375 Summary:
SAME AS No same as

SPONSOR Cahill

COSPNSR

MLTSPNSR Lavelle

Amd SS7407 & 7408, Ed L
Exempts persons performing compilations or reviews from licensing as
accountants and authorizes the use of statement to accompany their work
products; permits the use of "enrolled agent" by persons authorized by the
U.S.I.R.S; excluded from representation provisions designations authorized by a
national credentialing body recognized by the state education department.

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A00375 Actions:
01/08/2003referred to higher education

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A00375 Votes:

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A00375 Memo:
TITLE OF BILL: An act to amend the education law, in relation to
exempt persons under the profession of public accountancy

PURPOSE OR GENERAL IDEA OF BILL: The bill clarifies those activities
within the profession of accounting that are authorized and
appropriate to be performed by persons who are not licensed as a
certified public accountant, and permits persons holding the U.S.
Internal Revenue Service designation of an "enrolled agent" to use
such designation.

JUSTIFICATION: This legislation will clarify that consumers in New
York State will continue to have access to an array of accounting
services that are consistent with their needs at prices they can
afford, and to preserve the legal right of all non-CPAs to offer these
services on a competitive and marketable basis.

The bill provides for the following:

1.) Acknowledgment of the right of all accountants to prepare
compilations and reviews. In layman`s language, "compilation"
(compiled financial statement) is prepared from checkstubs, worksheets
or other information provided by management. It carries with it no
assurance of any kind, so outsiders should accord no real degree of
reliance. In addition, no substantial effort has been made to verify
the accuracy of the figures being compiled. The compilation is helpful
for interpreting business trends, the performance of product lines,
analyzing cash flow and making management decisions.

A "review" (reviewed financial statement) is prepared after the
accountant has made certain inquiries and checked the validity of
certain figures that appear on the statement to assure that they are
correct. A review, therefore, carries with it a significantly greater
reliance than a compilation.

2.) Statutory provisions for the use of acceptable "safe harbor"
language: Safe harbor language is needed for those who provide
compilation and reviews but are prohibited from using the standard
"reports" language provided in the Statement on Standards for
Accounting and Review Services (SSARS).

3) Authorizes the use of the U.S. Internal Revenue Service designation
of "Enrolled Agent:" The Internal Revenue Service recognizes the
credentials and experience of certain non-CPA accounting professionals
as eligible to represent clients before that agency.

PRIOR LEGISLATIVE HISTORY: 2001-2002 Referred to Higher Education.

EFFECTIVE DATE: Immediate.