Thread: New Accountancy Reform Law in NY State!

As July 26, 2009 approaches....

That’s the day the new Accountancy Reform Law in New York takes effect and every CPA who practices in the state under the newly expanded definition of the practice of public accountancy (i.e. the regulated scope of practice) will be required to register with the State Education Department (SED) and meet annual continuing professional education requirements.

Things for CPAs will change dramatically. We must spread the word among our colleagues who are unaware the new law requires every licensed CPA who is not practicing within the expanded scope of practice to file a written statement with the SED declaring that he or she is not practicing in order to be exempt from continuing professional education requirements.

Many CPAs are currently listed as being “inactive” (or not registered) on the SED’s web listing of licensed CPAs. This includes CPAs in industry, government or academia not previously required to register because they did not practice the core attest or compilation services that comprised the limited scope of practice of the old law. This is precisely what has changed.

If CPAs practice accounting, management advisory, financial advisory or tax services, or perform services for their non-CPA firm employers in relation to accounting concepts or the recording of financial data or information or the preparation or presentation of financial statements, they must register!

Come July 26, all professional services rendered by CPAs will constitute the practice of public accountancy, regardless of whether such services are performed in a CPA firm, in industry, in government, or in academia, either for a client or for one’s employer.

It is no longer a matter of being deemed inactive by simply not filing a registration with the SED. Willful failure to register with the SED constitutes a charge of unprofessional conduct against the CPA by the SED’s Office of Professional Discipline. Under the new law, it is necessary to file a statement of declaration of not practicing within the definition of the practice of public accountancy.

We understand that there are hundreds, if not thousands, of CPAs in industry, government, and academia who are not aware of the requirements of the new accountancy law. If you, as a member of NYSSCPA, know any CPAs in industry, government, or academia, please takes a few moments to inform them about the Accountancy Reform Law.

They should be aware of the new registration and continuing education provisions that are effective July 26, and should check the NYSSCPA website (http://www.nysscpa.org) for a comprehensive look at the new law.

As a service to the profession and the public, we welcome those CPAs – both members and non-members – to contact the New York State Society for additional information on the new law at newlaw@nysscpa.org.