Do Your CPE or Else!

Do Your CPE or Else!

Each month, New York-licensed CPAs are selected at random by the New York State Board for Public Accountancy for audit of their compliance with the continuing professional education requirement.

The NYSSCPA Code of Conduct requires that members “undertake only those professional services that the member or the member’s firm can reasonably expect to be completed with professional competence.” To meet this standard, members must have appropriate training and/or experience. Complying with the New York state requirements is important in meeting this standard and assuring that our members achieve the quality of service expected by our clients and the public.

Part 70.6 of Regulations of the Commissioner of Education requires practicing CPAs to complete a minimum of 40 hours of acceptable continuing education (or 24 hours concentrated in one of the following areas: accounting or auditing or taxation) each year from Sept.1 to Aug. 31.

Licensees are required to maintain a record of completed CPE hours—including the title of the program, the number of contact hours recommended for the program, the sponsor’s name and sponsor number, and the date and location of the program—for not less than five years from completion of a course.

Selected licensees are sent a letter via certified mail notifying them of the audit and advising them to submit copies of completion certificates for CPE completed during the audit period (usually one year) within 30 days of receipt of the letter. The letter states that failure to provide the requested information may subject the licensee to disciplinary action. If a response is not received within the 30-day period, a second request is sent, also by certified mail, again giving the licensee an opportunity to respond.

When the requested documentation is received, the certificates are reviewed to determine if the licensee completed the required number of CPE credits, if the sponsor was acceptable and if the coursework was completed during the designated audit period. If the information is acceptable, a letter is sent advising that the audit is completed and thanking the licensee for his or her cooperation during the audit process.

If the information is found to be deficient, a letter is sent to the licensee advising him or her of the findings and providing a specific period of time during which he or she may provide additional documentation. The state board office will attempt to assist audited individuals to correct minor deficiencies by providing a list of acceptable CPE sponsors.

If a licensee fails to respond to the letters or fails to provide acceptable verification that he or she has met the CPE requirement for the audited period, a follow-up telephone call is placed to the individual to again request the information. Failure to respond within a specified period of time results in referral to the State Education Department’s Office of Professional Discipline (OPD).

Problems in contacting licensees often result from that person’s failure to notify the department of an address change. Persons holding professional licenses in New York are required by Section 6502 of the Education Law to notify the department of any change of name or address within 30 days of such change.

Audit cases referred to the OPD are reviewed on an individual basis. Penalties for failure to comply with the continuing professional education requirement may include fines and actions ranging from notations on the licensee’s permanent record for professional misconduct to probation or suspension of a license.

It is imperative for our own competence and value to the public that we seek ongoing professional education to stay up to date and informed. Not complying with the state’s mandate not only can affect the quality of our work, it can also affect our license to practice.

Ian J. Benjamin, CPA, managing director with American Express Tax and Business Services Inc., is chair of the NYSSCPA’s Professional Ethics Committee.