|
|
Society Updates Committee on State Legislation By Dan Horan Only
one of several accounting reform bills pending in Albany
has been passed by a house of the New York State legislature. The legislation includes state Attorney General Eliot Spitzer’s bill (S.4834-A); a bill proposed by the State Education Department (S.4935), and a bill by Assemblyman Richard Brodsky (A.7238). But the Senate bill (S.302-D), sponsored by Sen. Kenneth LaValle, made some headway when the Senate approved it unanimously last June. O’Leary traced the genesis of the bill to corporate accounting scandals that prompted legislators to conclude that new laws would be necessary to regulate and monitor the profession in order to restore public confidence in the practice of public accounting. The Senate bill, O’Leary said, is less restrictive than the Sarbanes-Oxley Act of 2002, which governs CPA firms that audit publicly traded companies, limiting what services outside the attest service can be performed by attest practitioners. The state Senate bill does not restrict CPA firms from engagements to provide tax preparation, tax advisory, consulting or other services for attest and compilation clients. Other significant provisions deal with experience requirements for licensure, peer review and continuing professional education. The bill would require all CPAs, including those in industry, to earn 120 hours of CPE over a three-year period at a minimum of 20 hours each year. The bill would levy substantial fines on firms for professional misconduct. Currently, professional misconduct by a CPA does not subject his or her firm to sanctions. All CPA firms would also have to be registered (under current law, only partnerships must be registered), and all registered firms that perform attest or compilation services would be subject to peer review, under the bill. The bill also clarifies the accounting statute to allow CPAs to accept commissions and referral fees from nonattest clients, with a required written disclosure to the client. S.302-D also permits CPAs licensed and currently practicing in another state to temporarily practice in New York if certain requirements are met. Assemblyman Ron Canestrari has introduced bill A.8555-A, which is identical to S.302-D. Attendees of the presentation received one hour of CPE accreditation. Dan Horan is a member of the NYSSCPA’s Government Accounting and Auditing Committee. |
Print