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

 

TO:

Higher Education and Professional Practice Committee

 

FROM:

Johanna Duncan-Poitier

 

 

 

SUBJECT:

Proposed Amendment to the Regulations of the Commissioner of Education Relating to Examination Requirements for Licensure in Public Accountancy

DATE:

January  23, 2007

STRATEGIC GOAL:

Goal 3

AUTHORIZATION(S):

 

 

 

 

 

SUMMARY

 

 

Issue for Decision (Consent Agenda)

 

            Should the Board of Regents amend section 70.3 of the Regulations of the Commissioner of Education relating to examination requirements for licensure in public accountancy?

 

Reason(s) for Consideration


            Review of Policy.

 

Proposed Handling

 

The proposed amendment is submitted for adoption as a permanent rule.

 

Procedural History

 

The proposed amendment was discussed at the meeting of the Higher Education and Professional Practice Committee in December 2006.  A Notice of Proposed Rule Making was published in the State Register on November 29, 2006.  Supporting materials for the proposed amendment are available upon request from the Secretary to the Board of Regents. 

 

Background Information

 

The purpose of the proposed amendment is to amend standards and procedures relating to the examination for licensure in public accountancy.  Specifically, the proposed amendment makes the following changes:

    

            The proposed amendment changes the grading of the licensure examination from pass/fail to a numeric score.  In 2003, with the transition to a computer-based licensure examination, the regulation was amended to require examination results to be reported to candidates on a pass/fail basis.  Based upon information provided by the examination vendor, the computer-based examination was expected to provide candidates with detailed diagnostic information with the pass/fail result, making numeric scores unnecessary.  However, over the last three years, the diagnostic information provided to candidates has not been as detailed as expected and numeric scores will help candidates who have failed sections of the examination to understand areas in which they need to improve.

 

            The proposed amendment is also needed to lengthen the period of time of validity for passed sections of the licensure examination and the period of time in which all four sections must be passed.  This is needed because the examination provider has not provided examination results to candidates as frequently as expected, in some cases resulting in candidates having difficulty passing all four sections of the examination in the time limits prescribed in the regulation.   The change will allow a candidate to maintain credit for passed sections of the examination for longer periods of time, providing additional time to re-take a failed section of the examination and meet the time requirements for passing all four sections.

 

            These proposed changes are recommended by the State Board for Public Accountancy.   The change concerning numeric scoring is also recommended by a task force of the New York State Society of Certified Public Accountants.

 

Recommendation

 

            I recommend that the Board of Regents take the following action:

 

            VOTED: That subdivision (b) and paragraph (1) of subdivision (c) of section 70.3 of the Regulations of the Commissioner of Education be amended, as submitted, effective March 8, 2007.

 

Timetable for Implementation

 

            The effective date of the proposed amendment is March 8, 2007.

           

Attachments

 

 

 

 

 

AMENDMENT TO THE REGULATIONS OF THE COMMISSIONER OF EDUCATION

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

1.  Subdivision (b) of section 70.3 of the Regulations of the Commissioner of Education is amended, effective March 8, 2007, as follows:

(b)  Passing score. The passing score in each section shall be 75.0 [and shall be reported on a pass/fail basis].

2.  Paragraph (1) of subdivision (c) of section 70.3 of the Regulations of the Commissioner of Education is amended, effective March 8, 2007, as follows:

(1)  For purposes of this paragraph, examination window means a three-month period in which the examination is available within a quarter of the year, the beginning and ending of which shall be established by the examination provider.  A candidate may take the required sections of the examination individually and in any order.  Credit for any section passed shall not be valid for more than 18 months, calculated from the [actual date the candidate took that section of the examination] last day of the examination window in which the candidate sat for such section of the examination.  A candidate must pass all four sections of the examination within a rolling 18-month period, which begins on the [date that a passed section of the examination is taken] last day of the examination window in which the candidate sat for any section of the examination that the candidate passed.  A candidate may not retake a failed section of the examination in the same examination window [, meaning a two-month period in which the examination is available within a quarter of the year].