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Arkansas State Board of Public Accountancy CPE Requirements:Mandatory Continuing Professional Education in Arkansas, which was enacted by the Legislature on March 20, 1979 (Act 432), became effective July 1, 1980, with amendments effective September 1, 1996 and January 1, 1997. The rules, as promulgated by the Arkansas State Board of Public Accountancy to be used to administer the Continuing Professional Education program are as follows: RULE 13 CONTINUING EDUCATION:Pursuant
to the provisions of the Act, the Board prescribes the following regulations
amending requirements of continuing education to be met from time to time by
licensees in order to maintain the highest standard of proficiency in the
profession of public accountancy. 13.1
Definitions that are applicable to Rule 13:
(a)
Continuing Professional Education (CPE): An integral part of lifelong
learning required to provide competent professional accounting service to the
public. The set of activities that
enables accounting professionals to maintain and increase their professional
competence. (b)
Group Program: An educational process designed to permit a participant to
learn a given subject through interaction with an instructor and other
participants either in a classroom setting or using the Internet
(non-interactive Internet courses will not qualify in this area). (c)
Independent Study: An educational process designed to permit a
participant to learn a given subject under a learning contract with a CPE
program sponsor (all independent study must be approved in advance by the
Arkansas State Board of Public Accountancy). (d)
Self-study Program: An educational process designed to permit a
participant to learn a given subject without major involvement of an instructor.
Self-study programs use a pilot test (a sampling of at least three
individuals) to measure the average completion time from which the recommended
CPE credit is determined. (e)
Authorship: An educational
process designed to permit a participant to increase professional competence
through research and writing articles, books or CPE programs.
For the writer to receive CPE credit, the article, book, or CPE program
must be in the subject areas specified in Rule 13.2(a)(1) and formally accepted
in writing for publication. 13.2
Basic Requirements
(a)
An applicant for renewal
of a license must have completed acceptable continuing education, except as
otherwise provided in Section 13.2(b), in the amount of 120 hours within 36
months or 40 hours within 12 months immediately preceding January 1 of the year
for which the license is renewed, and further provided that:
(1)
All license holders shall
complete at least 60% of the required hours in the subject areas of accounting,
accounting ethics, attest, taxation, computer science (see rule 13.3h) or
management advisory services.
(2)
License
holders engaged in any attest or compilation function shall complete at least
20% of the required hours in the subject areas of attest and accounting
theory/practice.
(3)
All license holders must complete at least 4 hours of CPE in the area of
accounting professional conduct and ethics during the 36-months immediately
preceding January 1, 2005. Beginning
January 1, 2005, any 36-month reporting cycle must contain at least 4 hours of
CPE in the area of accounting professional conduct and ethics (pro-rated if the
initial license is issued after January 1, 2005, but a minimum of 1 hour is
required). (b)
The Board may make exceptions for reasons of individual hardship
including, but not limited to, health, military service, foreign residency, or
other good cause. No exception
shall be made solely because of age or retirement. (c) Responsibility for documenting the acceptability of the continuing education requirement rests with the applicant, who must retain such documentation for a period of five (5) years following the end of the year of completion of the continuing education hours. 13.3
Programs Which Qualify
(a)
A program qualifies as acceptable continuing education if it is a formal
program of learning which contributes directly to the professional competence of
an individual licensed to practice as a public accountant.
The responsibility for substantiating that a particular program meets the
requirements of this paragraph rests solely upon the licensee. (b)
Continuing education programs requiring attendance will qualify only if
(1)
An outline of the program is prepared in advance and preserved.
(2)
The program is at least one hour (fifty-minute period) in length,
excluding meal time and business session. Credit
shall be based on contact hours. A
50-minute period will be considered as being equal to one hour. One-half CPE credit hours (equal to 25 minutes) are permitted
after the first hour has been earned in a given program.
Hours devoted to preparation by the participant shall not be counted as a
contact hour.
(3)
The program is conducted by a qualified instructor. A qualified instructor or discussion leader is anyone whose
background, training, education or experience makes it appropriate for her/him
to lead a discussion on the subject matter of the particular program.
A lecturer or discussion leader
shall be afforded CPE credit for preparation and presentation for a program for
twice the number of CPE hours applicable for participants to the extent that it
the program contributes to the professional accounting competence of the
applicant. Such credit does not
pertain to the teaching of academic courses or other CPE courses that do not
meet the criteria of Rule 13.3(a). Repetition
of the same course material in the same year will not be allowable for credit as
continuing education.
(4)
A record of registration or attendance is maintained.
(5)
The sponsor of the program is either approved registered or exempt from
registration pursuant to the provisions of Rule 13.4. (c)
The following programs are examples deemed to qualify, provided
Subsection 13.3(a) and (b) are met:
(1)
Programs or seminars sponsored by accredited higher educational
institutions [see Rule 13.4(f)(2)], government agencies, NASBA, professional
organizations of Certified Public Accountants and Public Accountants, firms of
Certified Public Accountants and Public Accountants, and industrial firms that
meet the guidelines of Rule 13.3(b).
(2)
Technical sessions at meetings of recognized national and state
accounting organizations and their chapters.
(3)
University or college courses offered by accredited institutions [see
Rule 13.4(f)(2)] through classroom, correspondence, or distance learning. i.
Credit
courses. Each semester hour credit shall equal 15 hours towards the
requirement. A quarter hour credit
shall equal 10 hours. ii.
Non-credit short courses. Credit
is computed by contact hours. (d)
Individual
study programs (distance learning, independent study and self study) for which
evidence of satisfactory completion is issued by the provider organization prior
to January 1 of the year for which the license is being renewed may qualify.
The Board shall accept the hours of continuing education credit
recommended by the provider organization (subject to the constraints of Rule
13.3(b)(2)). NASBA’s Quality
Assurance Services (QAS) hours will be accepted if the course is QAS registered.
Sponsors of such programs, excluding those offered by providers listed in
paragraphs (c1), (c2), and (c3) above, must be registered or exempt from
registration pursuant to the provisions of Rule 13.4 (see Rule 13.3(f) below). (e)
Articles, books, or CPE programs, as indicated in Rule 13.1(a)(5), may
qualify for self-declared CPE credit if the article, book or CPE program
contributes to the professional competence of the licensee and has been formally
accepted for publication in writing prior to the effective date of the license
year (see Rule 13.3(f) below). (f)
Combined credit awarded in paragraphs 13.3(d) and 13.3(e) above shall not
exceed 60 percent of the total CPE hours required. (g)
Acceptable continuing education will not include any education leading to
completion of the requirements to acquire a CPA certificate.
Included in this category is (1) any academic work necessary to qualify
to take the CPA Examination [per Board Rule 3.3(b)] and (2) any CPA Review
courses or course(s) offered for the specific purpose of preparing to take the
CPA Examination. (h)
Computer science (see Rule 13.2(a)(1) above) does not include tutorials
and/or related videos. (i)
Continuing education programs offered in other jurisdictions that have
comparable CPE rules to the Arkansas Board’s rules.
The burden of proof on comparable CPE lies with the licensee will be
accepted. (j)
In the case of an Arkansas reciprocal license, continuing education
programs that have been accepted for fulfillment of the CPE credit in the
jurisdiction of the original license will be accepted. 13.4
Approved Sponsors
(a)
The
sponsor of any continuing education program(s), which is not exempt under Rule
13.4(f), must, prior to offering such program(s) register as follows:
(1)
Those sponsors offering programs totaling more than 16 credit hours per
year, or offering programs more than 5 times per year must register with the
National Registry of CPE Sponsors, administered by the National Association of
State Boards of Accountancy (NASBA); sponsors of such programs in self-study
format may register with NASBA’s QAS as an alternative to, or in addition to,
registration with the National Registry of CPE Sponsors.
(2)
Those sponsors offering programs which total 16 credit hours or less per
year and offering programs 5 times or less per year must either register with
the National Registry of CPE Sponsors administered by NASBA or register with the
Board annually using a registration form prescribed by the Board); sponsors of
such programs in self-study format may register with NASBA’s Quality Assurance
Services as an alternative to, or in addition to, registration with the National
Registry of CPE Sponsors. (b)
The
sponsor of any continuing education program registered with NASBA’s National
Registry of CPE Sponsors or Quality Assurance Service shall comply with the
requirements of the Registry or the Quality Assurance Service, respectively.
Those sponsors registering with the Board as well as those exempt under Rule
13.4(f) shall keep detailed records of the following:
(1)
The date and location of the program presentation;
(2)
The names of each instructor or discussion leader;
(3)
A
list of licensees attending each program presentation, and the license numbers
of such attendees; and
(4)
A written outline of the program presentation. (c)
The records required by subparagraph 13.4(b) shall be retained for a
period of 5 years after the end of the year of each program presentation. (d)
The
sponsor of any continuing education program approved or exempt from registration
pursuant to this rule must advise attendees of such approval or exemption,
together with the sponsor number, subject code and the number of continuing
education hours allowable. (e)
The Board may withdraw approval of any continuing education program if
the sponsor of such program fails to comply with the provisions of this Rule. (f)
The following are exempt from registering with the Board and the NASBA
Registry of CPE Sponsors:
(1)
Professional accounting and legal organizations such as the American
Institute of Certified Public Accountants, the Arkansas Society of Certified
Public Accountants, the National Society of Public Accountants, the Arkansas
Society of Public Accountants, NASBA, the Institute of Management Accountants,
the American Accounting Association, the American Bar Association, the Arkansas
Bar Association, and other similar organizations:
(2)
Universities or colleges that are accredited per Rule 3.3(a) or (b).
(3)
Firms, both accounting and industrial, offering organized in-firm
education programs which meet the requirements of Rule 13.3(a); and
(4)
Governmental entities.
13.5
CPE Reporting Requirements
(a)
Applicants for renewal of a license must submit with their annual
registration a representation that the applicant has met the CPE requirement for
issuance of a license together with a CPE statement, in a form prescribed by the
Board, showing the continuing education programs and hours completed during the
twelve months immediately preceding January 1 of the year for which the license
is being renewed. The
applicant must retain all supporting documentation for the programs and hours
for five (5) years following the end of the year of completion. (b)
The CPE statement shall show the following:
(1)
NASBA
registration number, or an E if the sponsor is exempt;
(2)
Sponsoring organizations;
(3)
Location of program;
(4)
Title of program or description of content;
(5)
Dates
attended and/or completed and submitted;
(6)
Hours claimed; and
(7)
Other information as designated by the Board. (c)
On an annual basis, the Board will audit the CPE statements of a selected
number of licensees, and those licensees will be required to submit support
documentation acceptable
to the Board as part of the audit process. 13.6
Noncompliance and Sanctions
(a)
Should a licensee report less than the required number of CPE hours, the
licensee shall complete the balance of the CPE hours for the reporting period
and provide the Board with appropriate documentation no later than January 31 of
the following CPE reporting period. Delinquent
CPE hours reported to the Board under Section 13.6 shall first apply to the
deficiency and any remaining CPE hours shall be applied to the current CPE
reporting period. (b)
Should a licensee fail to timely report CPE hours in conjunction with the
renewal application or fail to timely file a report on completion of the balance
of the CPE hours as provided in paragraph (a) of this section, the Board shall
serve notice of noncompliance upon the licensee.
The notice shall state the nature of the noncompliance.
The licensee shall, within thirty (30) days of the date of the notice,
deliver acceptable documentation to the Board that the licensee has successfully
completed the minimum CPE hours to correct the noncompliance. (c)
In addition to the notice of noncompliance described above, the
Board may institute a proceeding to impose disciplinary action against a
licensee who fails to comply with any provision under Rule 13.
The disciplinary action for a licensee who completes the minimum number
of CPE hours during the period provided in paragraph (a) of this section shall
be a monetary penalty unless the Board determines that other disciplinary action
is appropriate. The disciplinary
action for a licensee who failed to obtain the minimum CPE hours before the date
for correction of the delinquency under paragraph (a) of this section or who
completed the minimum CPE hours after notice of noncompliance under paragraph
(b) of this section may be suspension of the license unless the Board determines
other disciplinary action to be appropriate. (d)
A licensee who has been suspended pursuant to this section may file a
petition for reinstatement which shall state the reasons for noncompliance, that
the licensee is presently in compliance, any other material information and that
the licensee has not performed any of the services set forth in A.C.A. §17-12-505
since the suspension under this section. The
petitioner may request a hearing and the Board may require additional CPE hours
as a condition of reinstatement. Any
reinstatement shall be subject to the provisions of Rule 13.8. 13.7
Inactive Status
(a)
A licensee who complies with this Rule 13.7 shall be granted an exception
to the continuing education requirement of A.C.A. §17-12-502. (b)
To qualify for this exception, the licensee must annually pay the
appropriate inactive status registration fee as determined by the Board and
complete a form prescribed by the Board. (c)
A licensee on inactive status shall not perform any of the services set
forth in A.C.A. §17-12-505. If the
licensee performs any such services, he shall be subject to discipline by the
Board pursuant to A.C.A. § 17-12-601, et seq. or §17-12-105. (d)
A person on inactive status may convert to active status as follows:
(1)
Complete a form prescribed by the Board and submit payment of the
appropriate fee(s) (initial or upgrade) for active status.
(2)
Comply with CPE requirements under these rules for the renewal period
following reinstatement on a pro rata basis, such hours to be computed at a rate
of 3 1/3 hours per month from the date of reinstatement to the end of the
renewal period in which reinstatement occurs.
(3)
Comply with the appropriate condition below: i.
If inactive for less than three (3) years, the licensee must deliver
documentation acceptable to the Board showing completion of the total CPE number
of hours that would have been required under Rule 13.2(a).
ii.
If inactive for three (3) years or more, the licensee must develop and
deliver to the Board a proposed program of CPE as specified in Rule 13.2(a) (to
include four hours of accounting professional conduct and ethics). All work must
be completed during the 36-month period preceding the date of application). 13.8
Activation of Delinquent, Suspended, or Revoked
Licenses
(a)
*SPECIAL NOTE: The Arkansas State Board of Public Accountancy voted unanimously to allow an instructor of a continuing education course to receive double credit for teaching a course for the first time during a fiscal year. This granting of double credit became effective July 1, 1983. AICPA CPE Membership Requirements:A member in public practice is required to complete 120 hours of CPE for each 3-year reporting period, beginning with the 1990 calendar year, with a minimum of 20 hours per year. A member not in public practice is required to: 1. Complete 60 hours of CPE during the first 3-year reporting period, beginning with the 1990 calendar year, with a minimum of 10 hours each year. 2. Complete 90 hours of CPE during subsequent 3- year reporting periods, with a minimum of 15 hours each year. All members will indicate compliance with the CPE requirement by checking off a box on the AICPA's annual dues statement. Government Auditing Standards CPE Requirements:GAO Revises Yellow Book CPE RequirementsIn June 2003, GAO released its revised Government Auditing Standards (i.e., the Yellow Book), which is effective for financial audits and attestation engagements of periods ending on or after January 1, 2004. Although revised, the 2003 edition of the Yellow Book still requires auditors to complete 80 hours of continuing professional education (CPE) every two years, with a minimum of 20 hours in any one year, and at least 24 of the 80 hours in subjects directly related to government auditing, the government environment, or the specific or unique environment in which the audited entity operates. The difference is that the 80 hours must now be in topics that “directly enhance the auditor’s professional proficiency to perform audits and/or attestation engagements”. The revised Yellow Book further defines these topics as “developments in auditing standards and methodology, accounting principles, assessment of internal control, principles of management or supervision, information systems management, audit sampling, financial statement analysis, evaluation design, data analysis, and subjects related to specific fields of work, such as public administration, public policy and structure, industrial engineering, finance, economics, social sciences, and information technology.” The implication was that some of the coursework previously used by auditors to meet the 80-hour requirement, such as taxation, may no longer qualify and that auditors might not know for sure which courses qualify for the 80-hour requirement or how the new requirement transitions with the existing requirement. On March 15, 2004, GAO answered that question with the issuance of an internet notice entitled “Amendment to Paragraph 46 of the Interpretation of Continuing Education and Training Requirements”, which indicates that “Effective immediately, GAO has deleted inclusion of taxation in the listing of subjects and topics that would always satisfy the 80 hour requirement.” The notice also describes the transition rules to be used. See http://gao.gov/govaud/cpeamend.htm for further details. Private Companies Practice Section/SEC Practice Section CPE Requirements:Firm membership in the AICPA's Private Companies Practice Section (PCPS) or the SEC Practice Section (SECPS) require that all professionals in the firm resident in the United States, including CPAs and non-CPAs, take part in qualifying continuing professional education as follows:
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