Bill Summary

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A01226 Summary:
SAME AS No same as

SPONSOR Brodsky

COSPNSR

MLTSPNSR

Amd S7408, Ed L
Provides for the registration of accounting firms, adding to partnerships, sole
proprietorships, professional service corporations, and professional service
limited liability companies; permits any combination of certified public
accountants or public accountants; provides that each member of a firm
designated as "certified public accountant" must be a certified public
accountant; prohibits firms rendering audit and attest services to a client
from rendering other professional services to that client.

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A01226 Actions:
01/16/2003referred to higher education

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A01226 Votes:

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A01226 Memo:
TITLE OF BILL: An act to amend the education law, in relation to the
registration of accounting firms

PURPOSE OR GENERAL IDEA: Require registration of accounting firms with
the state education department.

SUMMARY OF SPECIFIC PROVISIONS: Amends section 7408 of the education
law to require registration of accounting firms with the state
education department, and prohibit accounting firms that perform audit
and attest services to perform other professional services, as defined
by the department of education, to such client.

JUSTIFICATION: Under current law, only accounting partnerships are
required to be registered by the state through the State Education
Department. This bill would require all accounting firms, be it single
member firms or large international firms that perform accounting
practices in this state to be registered with the state.
Additionally, the bill will prohibit firms that perform audit and
attest services for a client to perform other professional services,
as defined by the Department, for such client. By assuring the proper
oversight of these these firms, and eliminating conflicts that exist
where accounting firms perform both audit and attest services and
other professional services, the consumers of the State of New York
rely that rely on accounting professionals will be assured of
accountability.

PRIOR LEGISLATIVE HISTORY: A.11371-A (2001-02).

FISCAL IMPLICATION FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect on the first day of April
next succeeding the date on which it shall have become law.