Meeting of the Board of Regents | October 2008

THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

 

TO:
FROM:	Frank Muñoz
SUBJECT:	Proposed Amendment to the Regulations of the Commissioner of Education Relating to the Curricular Content of Registered Programs Leading to Licensure in Public Accountancy and Examination Requirements for Licensure as a Certified Public Accountant
DATE:	October 1, 2008
STRATEGIC GOAL:	Goal 3
AUTHORIZATION(S):

 

SUMMARY

 

Issue for Discussion

 

              Should the Board of Regents amend sections 52.13 and 70.3 of the Regulations of the Commissioner of Education relating to the curricular content of registered programs leading to licensure in public accountancy and examination requirements for licensure as a certified public accountant?

 

Reason(s) for Consideration

 

Review of Policy.

             

Proposed Handling

 

The proposed amendment is before the Professional Practice Committee for discussion in October 2008 and will be submitted for action at the December 2008 Regents meeting.

 

 

 

 

 

Procedural History

 

A Notice of Proposed Rule Making concerning the proposed amendment will be published in the State Register on October 8, 2008.  Supporting materials for the proposed amendment are available from the Secretary to the Board of Regents.

 

Background Information

 

The purpose of the proposed amendment to section 52.13(b)(1) of the Regulations of the Commissioner of Education is to update and expand the curricular content for licensure qualifying registered programs in public accountancy to reflect the current educational model.  The evolution of the practice of public accountancy has resulted in the broadening of the nature and types of course content for students to gain the necessary background to become successful licensed certified public accountants.  The proposed amendment is necessary to provide greater flexibility to colleges and universities seeking to adapt their programs to a changing professional practice environment when registering and/or changing licensure qualifying public accountancy programs in New York.

    

The proposed amendment also allows students to be admitted into the licensing examination after completing 120 semester hours while maintaining the professional study requirements established in section 70.1 of the Regulations of the Commissioner of Education for licensure as a certified public accountant.  Effective August 1, 2009, the education requirement for licensure as a certified public accountant will increase from 120 to 150 semester hours.  The proposed amendment to section 70.3(d) of the Regulations of the Commissioner will provide students with the opportunity to apply for admission to the Uniform CPA Examination after completing 120 semester hours of professional study.  Forty-six other licensing jurisdictions have transitioned to a 150 semester hour professional study requirement.  In most cases, these states have sustained a significant decrease in candidates for two or more years following the adoption of the 150 hour education requirement.  The Uniform CPA Examination is a test of general knowledge.  Requiring candidates to wait an additional year while they complete a specialized degree or begin a career in a specialized field may have a negative impact on candidates.  The proposed amendment provides a better opportunity for candidates who might otherwise be impeded by time and monetary factors due to the increased education requirement.  In reaction to these considerations, approximately 20 states have adopted provisions similar to the proposed amendment to allow candidates to apply for admission to the examination after 120 semester hours of study.

 

Staff of the State Education Department worked with the State Board for Public Accountancy to develop the proposed amendments, and the State Board recommends that the proposed amendments be adopted.

 

Recommendation

 

N/A

 

 

Timetable for Implementation

 

              The effective date of the proposed amendment is January 8, 2009. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMENDMENT TO THE REGULATIONS OF THE COMMISSIONER OF EDUCATION

              Pursuant to sections 207, 6501, 6504, 6506, 6507, 6508 and 7404 of the Education Law.

              1.  Paragraph (1) of subdivision (b) of section 52.13 of the Regulations of the Commissioner of Education is amended, effective January 8, 2009, as follows:

(1) Definitions. As used in this subdivision:

(i) Professional accountancy content area shall mean curricular content inprofessional accountancy that includes but is not limited to each of the [following] subjects identified in clauses (a) through (d) of this subparagraph and may also include but need not be limited to the subjects identified in clauses (e) through (i) of this subparagraph:

(a) financial accounting [theory and principles] and reporting;

(b) costor managerial accounting;

(c) [tax accounting] taxation; and

(d) auditing and [computer auditing] attestation services[.];

(e) fraud examination;

(f) accounting ethics and professional responsibilities;

(g) accounting research and analysis;

(h) internal controls and risk assessment; and

(i) accounting information systems.

(ii) General business content area shall mean curricular content relating to the development of knowledge in traditional business principles and technical skills.  Curricular content in general business [that includes] may include but is not limited to each of the following subjects:

(a) business statistics;

(b) [commercial] business law;

(c) computer science;

(d) economics; [and]

(e) finance[.];

(f) management;

(g) marketing;

(h) operations management;

(i)  organizational behavior;

(j) business ethics;

(k) business strategy;

(l)  business communications;

(m) quantitative methods; and

(n) information technology and systems.

2.  Subdivision (d) of section 70.3 of the Regulations of the Commissioner of Education is amended, effective January 8, 2009, as follows:

70.3 Licensing examinations

(d) The department shall accept passing scores on the uniform certified public accountant examination, or on an examination determined to be comparable in content, as meeting the requirement of the licensing examination, except where the department determines that the administration, scoring, content or other comparable factors concerning such examination have affected the validity and/or integrity of such examination so as to render acceptance of such scores inappropriate. Candidates shall complete [their professional study] a minimum of 120 semester hours of study in a regionally accredited college or university, or its equivalent as determined by the department, [prior] for admission to the licensing examination as a New York candidate.