AB 188

This bill 1) makes modifications regarding the educational requirements for

taking the certified public accounting (CPA) examination or for obtaining a CPA

certificate; 2) requires the Accounting Examining Board to promulgate rules

establishing continuing education requirements for accountants; 3) modifies

provisions related to peer reviews for CPA firms, including to allow the board to

participate in an interstate program for sharing peer review results; and 4) allows

the board to participate in certain other interstate data-sharing programs regarding

persons currently or previously licensed by the board.

Current law provides that a CPA certificate may be granted only to a person

who has completed at least 150 semester hours of education in accounting and

business subjects, as determined by the board, which issues CPA certificates and

licenses. Current law also provides that a person is not eligible to take the CPA

examination unless the person has completed at least 120 semester hours of

education in accounting and business subjects, as determined by the board.

The current rules of the board specify numbers of semester hours that an

applicant for a CPA certificate must have completed, including at least 24 semester

hours in accounting at the undergraduate level or 15 semester hours at the graduate

level, including at least one course in each of six specified subjects, and at least 24

semester hours in business courses other than accounting courses at the

undergraduate or graduate level, including at least one course in each of six specified

subjects.

This bill modifies the rules of the board specifying these semester hours and

course subjects required in order to be granted a CPA certificate or to take the CPA

examination, as follows:

1. The bill specifies methods for satisfying the 150 hours requirement for

obtaining a CPA certificate. The methods differ depending on the degree received by

the applicant and how the educational program, department, or educational

institution from which the applicant earned the degree is accredited.

2. The bill provides that a person may satisfy the 120 hours requirement for

taking the CPA examination if the person already satisfies the 150 hours

requirement for obtaining a CPA certificate described above, the person otherwise

satisfies the course content and semester hours required for a CPA certificate, or the

person has completed course work that the board determines is reasonably

equivalent to those requirements.

The bill also allows the board to promulgate rules to allow for certain military

service to count toward the 150 hours requirement.

Additionally, the bill requires the board to promulgate rules establishing

continuing education requirements for the renewal of licenses held by individuals to

practice as certified public accountants. The bill provides that the board may not

require an individual to complete more than 80 continuing education credits during