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.
NEW AND REVISED SED Emergency Regulations (approved by N.Y. Board of Regents Oct. 19, 2009). The New York State Board of Regents voted to adopt revised emergency regulations on Oct. 19. These regulations implement the provisions of the law. A summary of revisions is provided. These regulations are now in effect.
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.
KEY RESOURCES
IMPORTANT STATE EDUCATION DEPARTMENT (SED) LINKS
Office of the Professions Home Page. The Office of the Professions regulates 48 licensed professions in New York state, including certified pubilc accountancy. General information on the OP, the SED and the role the N.Y. State Board for Public Accountancy plays in the regulatory process, can be found here.
Accountancy Reform Law FAQs posted on the Office of the Profession's Web site.
Online Registration Renewal. This links to the Office of the Professions' Online Registration Renewal Service.
Firm Registration. Firms may e-mail the SED at cpabd@mail.nysed.gov to request a firm registration form.
Registration Verification Lookup. Find your registration status on the SED Office of the Professions Web site.
New York State License Requirements.
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.
Descriptions of CPE Subject Areas. Links to the Office of the Professions' Web site.
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.
Questions? If you're still not sure how or if the law pertains to you, e-mail the NYSSCPA. This link was created specifically to answer your questions about the law.
OUT-OF-STATE CPAs
The new law requires an out-of-state CPA whose principal place of business is New York state to be licensed in New York.
However, out-of-state CPAs practicing nonattest services in New York state—these include CPAs in industry, tax, government, consulting or education—do not need to be licensed or registered in New York state if their principal place of business is not located in New York state. These CPAs, however, will be subject to the disciplinary authority of the New York State Board of Regents.
For out-of-state CPAs whose principal place of business is not New York, but who provide attest and compilation services in New York state, the law is stricter due to the public protection issues that arise when it comes to attest and compilation—services that provide the public with information on the financial health of state and local governments and public companies. For those out-of-state CPAs who provide attest or compilation services in New York for a short period of time, there is the temporary practice permit.
To obtain a permit, a CPA must hold a valid license from another state—the CPA’s principal place of business—that the Board of Regents has determined to have significantly comparable licensure requirements to New York, or be a CPA whose licensure qualifications are deemed by the SED to be significantly comparable to New York’s, as well as be in good standing. Temporary practice permits are good for 180 days during a 12-month period beginning on the effective date of the permit. They can be renewed a maximum of three times, and the applicant can practice no more than four years within a five-year period. Under the new accountancy law, out-of-state CPAs may perform nonattest services (excluding compilations) in New York without a temporary practice permit and without giving any notice to the SED.
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
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.
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