New York Accountancy Reform Law

Q: "Does the new accountancy reform law apply to me?"
A: If you are asking this question, the answer is probably: YES.

The NYSSCPA is committed to providing members and the public with information on New York State's accountancy reform law, which took effect July 26, 2009. The law also includes a mandatory quality review provision for certain New York firms that becomes effective Jan. 1, 2012. This Web page provides information on the new law and on the emergency regulations that have been adopted by the New York State Board of Regents to implement the law. If you have questions that pertain to a specific professional situation, this page also provides you with resources that will help you get those questions answered, as well.

OVERVIEW

On Jan. 27, 2009, Gov. David A. Paterson signed into law a bill that makes sweeping regulatory changes to the accountancy profession in New York State.

The law expands the definition of public accountancy to include CPAs who provide tax, management and financial advisory services; and CPAs working in industry, academia and government. All of these CPAs, now that they will be considered to be practicing public accountancy, must register with the State Education Department and complete continuing professional education (CPE) courses.

KEY DOCUMENTS

The Law. No analysis included. This link includes the reform law text, Article 149 of the Education Laws of New York.

State Education Department Regulations.

A11696-A Bill Text. This includes bill text, summary, voting tally and the sponsor's memorandum of support, which provides, in plain language, the objectives of the law. It also provides readers with the law language before the amendment was signed into law. 
 

IMPORTANT STATE EDUCATION DEPARTMENT (SED) LINKS

The Office of the Professions regulates 48 licensed professions in New York state, including certified public accountancy. The link to the OP's homepage provides general information on the OP, the SED and the role the N.Y. State Board for Public Accountancy plays in the regulatory process.

Online Registration Renewal. This links to the Office of the Professions' Online Registration Renewal Service.

Registration Verification Lookup. Find your registration status on the SED Office of the Professions Web site.

Application Forms. This link provides .PDF links to application forms for registration, address and
name changes, certification forms for professional education, out-of-state licensure and exam grades, temporary practice permits, applicant experience record forms, employer certification and form instructions. If you're unsure what type of application form(s) you need to fill out, you can e-mail the SED and ASK.

FIRM REGISTRATION
Public Accounting Firm Registration FAQs.
Form 6R. Application for Public Accounting Firm Registration (For Firms Other Than Professional Corporations). This form must be completed by the CPA or PA responsible for this firm.
Form 6R-PC. Application for Public Accounting Firm Registration (For Professional Corporations ONLY). This form must be completed by the CPA or PA responsible for this firm.
Mandatory Quality Review

CPE REQUIREMENTS
CPE FAQs.
Retired CPAs Who Sit on Non- or For-Profit Boards
Descriptions of CPE Subject Areas
 

MORE INFORMATION
New York State License Requirements.
Contact the Office of the Professions. Lists contact information for those with questions about license application status, education credentials from nonapproved programs, licensing examination, practice issues and continuing education, professional misconduct and discipline and general customer service.

OUT-OF-STATE CPAs

Governor Andrew M. Cuomo on Aug. 17, signed into law S2628-A, which allows for cross-border practice mobility for out-of-state CPAs as long as the CPA’s home state is deemed by New York to have licensing requirements that are substantially equivalent to those in New York, as outlined in Section 23 of the Uniform Accountancy Act (UAA). The bill goes into effect on Nov. 15.

Under Section 23 substantial equivalency, if a CPA has a license in good standing from a state that utilizes CPA licensure and certification criteria outlined in the UAA—150 hours of education, a passing grade on the CPA exam and at least one year of experience—then that CPA would be qualified to practice in any state that has adopted UAA Section 23 mobility.

Under the new law, any CPA who comes into New York with the new mobility practice privilege would fall under the jurisdiction and be subject to the rules of New York State. There are also strict public protection provisions that take into consideration any disciplinary action the visiting CPA has received in the past seven years. If they meet any of the criteria outlined in the bill, that CPA must notify the State Education Department (SED), by form, and cannot practice in New York until the CPA has received written permission from the SED before practicing here. If they do, they would be considered to be practicing in New York without a license, a crime in New York State.

IMPORTANT NYSSCPA LINKS

Special Issue of The Trusted Professional on Emergency Regulations.

Webcast that provides details and a Q-and-A session on the new law. Although recorded during a CPAs in industry presentation by the Society's executive and legislative staff, this webcast provides a "plain language" explanation of the law's reforms that is informative for all CPAs.

Special Issue of the NYSSCPA'S newspaper, THE TRUSTED PROFESSIONAL, provides an overview of all aspects of the new law.

IN THE NEWS

"Regents Adopt Revised Emergency Regulations," Trusted Professional, Nov. 1, 2009

"Training a Key Part of New CPA Rules," The Press Republican, Oct. 5, 2009

"State Board Tackles Creation of New Quality Review Program," Trusted Professional, Oct. 1, 2009

"State Board Recommends Competency Requirement," Trusted Professional, Oct. 1, 2009

"The Long Arm of the Law," The CPA Journal, October 2009

"Compliance Watch: N.Y. Finance Law Is News to N.Y. Execs," Wall Street Journal, Sept. 9, 2009

"CPAs in New York Must Register by July 26," Newsday, July 26, 2009

"State Gives Accountants Some Additional 'Homework,'" Buffalo News, July 26, 2009

"New Rules for Accountants, Effective Sunday, Catch Some CPAs by Surprise," Syracuse Post-Stanard, July 24, 2009

"New York CPA Requirements Take Effect July 26," WebCPA, July 24, 2009

"New York CPAs Warned of New Law in Effect Sunday," International Business Times, July 24, 2009

"Getting Personal: NY Law Likely to Rattle Many CPAs," Wall Street Journal, July 20, 2009

"New Registration Catches CPAs Flat-footed," Crain's New York Business, July 15, 2009

"New York Cracks Door for New Jersey and Connecticut CPAs," Westchester County Business Journal, July 5, 2009

"Making CPAs More Accountable," Albany Times-Union, June 28, 2009

"Regents Adopt Emergency Regulations," NYSSCPA E-Zine, June 25, 2009

"State Board Votes on Accountancy Reform Draft Regulations," The Trusted Professional, April 15, 2009

"'Excelsior': The Pursuit of Quality in the CPA Profession," The CPA Journal, March 2009

"New Attest, Review Competency Standards in Effect Jan. 1," NYSSCPA E-Zine, May 27, 2010
 

 
HISTORY OF CPA PROFESSION IN NEW YORK

"Charles Waldo Haskins: The First Trusted Professional," NYSSCPA E-zine, May 7, 2009

"Charles Waldo Haskins: The CPA Profession's First Statesman," CPA Journal, May 1997

CPAs will not find a more comprehensive resource on the new state law anywhere else on the Web. This is just one benefit the NYSSCPA offers free to the public. Membership in the NYSSCPA comes with additional benefits. Find out more about NYSSCPA member benefits.