United States General Accounting OJZice 

Government Auditing Standards 

.3--Y%?@ 

Interpretation of 

Continuing Education 

and Training 

Requirements 

Y 

Foreword 

Continuing education and training for auditors, 

hereafter referred to as continuing professional 

education (CPE), improves their knowledge and 

refines their skills, allowing them to better meet the 

challenges of a complex and ever-changing audit 

environment. Such education and training, since it 

enhances auditor proficiency, helps ensure the 

quality of audits. 

The 1988 revision of the Government Auditing 

Standards established for the first time specific 

hourly CPE requirements for auditors working on 

audits made in accordance with the standards. This 

interpretation guides audit organizations and individual auditors on implementing the CPE requirements by answering the most frequently asked 

questions from the audit community. 

In September 1990, an exposure draft of this interpretation was sent to professional organizations 

that are representative of the audit community and 

to other interested parties for comment. We appreciate the suggestions and comments of those who 

responded and have incorporated such commentary 

as appropriate. This interpretation is effective for 

CPE reporting periods beginning on or after January 1, 1991. The major contributors to this interpretation were Patrick L. McNamee and William J. 

Anderson, Jr. 

Donald H. Chapin 

Assistant Comptroller General 

Accounting and Financial Management Division 

April 1991 

Page i 
Foreword i 

Introduction 1 

Who Is Subject 

to CPE 

Requirements? 

Definition of Planning, Directing, 

Conducting, and Reporting 

Definition of Conducting Substantial 

Portions of the Field Work 

Applicability of CPE Requirements to 5 

Other External and Internal Auditors 

24-Hour Requirement for Audits of 6 

Different Environments 

Exemptions and Exceptions 6 

When Should 

Comx4iance Establishing Measurement Date 

8 

8 

Wit6 CPE Measuring Compliance After Beginning of 9 

Requirements Be a 2-Year Period 

CPE Carryover 10 

Determined? Measuring Compliance If No Longer Doing 

Yellow Book Audits 

Deficiency Makeup 

10 

10 

What Qualifies as 12 

Acceptable CPE? CPE Programs 12 

Criteria for CPE Programs 12 

Programs and Activities That Qualify 13 

Subjects and Topics That Qualify 15 

Programs and Activities or Subjects and 18 

Topics That Do Not Qualify 

How Are CPE 

Requirements to Policies and Procedures 

E3e Administered? ~~~~$,‘~~~~~~e~tation 

Retaining Records 

Preparing Reports 

19 

19 

20 

22 

23 

23 

Page ii 
Other CPE Issues 

Individual Auditors’ Responsibilities 

Relationship Between Yellow Book and 

Other CPE Requirements 

Monitoring Compliance 

24 

24 

24 

Page iii 
Page iv 
1. In recent years, continuing education and training, 

hereafter referred to as continuing professional 

education (CPE), has become an important topic in 

the audit community. In an environment of increasingly complex audit work and accelerating change, 

audit organizations have recognized the need to 

make a strong commitment to the CPE of their staff. 

The success of an audit organization in carrying out 

its mission depends on having a qualified, welltrained staff. CPE for auditors serves not only to 

maintain the individual auditor’s professional proficiency but to enhance it, resulting in an audit staff 

that continually improves and refines their knowledge and skills in areas applicable to the discipline 

in which they work. 

2. The 1988 revision of the Government Auditing 

Standards, often referred to as the “yellow book,” 

was issued by the Comptroller General of the 

LJnited States in July 1988. Auditors and audit 

organizations are to follow the standards when 

required by law, regulation, agreement or contract, 

or policy. The standards are for audits of government organizations, programs, activities, and functions, and of government funds received by 

contractors, nonprofit organizations, and other 

nongovernment organizations. 

3. The first general standard for government auditing 

is “qualifications.” The qualifications standard, as 

stated in chapter 3, paragraph 3, of the yellow 

book, is, “The staff assigned to conduct the audit 

should collectively possess adequate professional 

proficiency for the tasks required.” That standard 

establishes CPE requirements for auditors working 

on audits made in accordance with the yellow book. 

4. The qualifications standard places responsibility on 

the audit organization to ensure that the audit is 

conducted by staff who collectively have the 

knowledge and skills necessary for the audit to be 

conducted. The staff should also have a thorough 

Page I 
Introduction 

knowledge of the government environment and government auditing or of the specific or unique environment in which they are auditing. 

6. Paragraphs 6 and 7 of chapter 3 of the yellow book 

set the CPE requirements as follows: 

“To meet this standard, the audit organization should have a 

program to ensure that its staff maintain professional proficiency through continuing education and training. To satisfy 

this requirement, auditors responsible for planning, 

directing, conducting, or reporting on government audits 

should complete, every 2 years, at least 80 hours of continuing education and training which contributes to the 

auditor’s professional proficiency. At least 20 hours should 

be completed in any one year of the Z-year period. Individuals responsible for planning, directing, conducting substantial portions of the field work, or reporting on the 

government audit should complete at least 24 of the 80 hours 

of continuing education and training in subjects directly 

related to the government environment and to government 

auditing. If the audited entity operates in a specific or unique 

environment, auditors should receive training that is related 

to that environment. 

“The audit organization is responsible for establishing and 

implementing a program to ensure that auditors meet the continuing education and training requirements stated above. 

The organization should maintain documentation of the education and training completed.” 

6. The qualifications standard and CPE requirements 

place responsibilities on both the audit organization 

and individual auditors. Carrying out these responsibilities requires exercising sound professional 

judgment. To assist audit organizations and individual auditors in exercising that judgment this 

interpretation is being issued. Among the issues this 

interpretation addresses are: 

a. Who is subject to CPE requirements? 

b. When should compliance with CPE requirements 

be determined? 

c. What qualifies as acceptable CPE? 

Page 2 

Y 
Introduction 

d. How are CPE requirements to be administered? 

7. The CPE requirements are based on the premise 

that all auditors should maintain and enhance their 

professional proficiency in the discipline in which 

they work. Auditors will have wide latitude in 

selecting suitable CPE. 

Page 3 
Who Is Subject to CPE Requirements? 

8. The CPE requirements stated under the qualifications standard apply to external and internal auditors, both government and nongovernment (e.g., 

public accountants, both certified and noncertified), 

who work on audits made in accordance with the 

yellow book. The CPE requirements set forth the 

minimum number of hours of CPE that auditors, 

whether employed full- or part-time by an audit 

organization or self-employed, must complete. 

9. Auditors who work on yellow book audits must 

meet the SO-hour CPE requirement. Those responsible for planning, directing, reporting, or conducting substantial portions of the field work must 

also meet the 24-hour CPE requirement. Paragraphs 

10 through 2 1 of this interpretation address whom 

the CPE requirements apply to. 

Definition of 10. Question-The 80-hour requirement applies to 

Planning, auditors responsible for planning, directing, conducting, or reporting on yellow book audits. What 

Directing, do the terms planning, directing, conducting, and 

Conducting, and reporting mean? 

Reporting 11. Interpretation-An individual is considered responsible for “planning,” “directing,” “conducting,” or 

“reporting” when he or she performs the following 

work: 

a. Planning - determining audit objectives, scope, 

and methodology; establishing criteria to evaluate 

matters subject to audit; or coordinating the work 

of other audit organizations. This excludes individuals whose role is limited to gathering information 

used in planning the audit. 

b. Directing - supervising the efforts of others who 

are involved in accomplishing the objectives of the 

audit or reviewing audit work to determine whether 

those objectives have been accomplished. 

Page 4 
Who Ia Subject to 

CPE Ftequirements? 

c. Conducting - performing audit tests and procedures necessary to accomplish the audit objectives 

in accordance with generally accepted government 

auditing standards. 

d. Reporting - determining report contents and substance and/or reviewing reports for technical content and substance prior to issuance. 

Definition of 12- 

Conducting 

Substantial 

Portions of the 

Field Work 

13. 

Question-The 24-hour requirement applies not 

only to auditors responsible for planning, directing, 

or reporting on yellow book audits, but it also 

applies to those “conducting substantial portions of 

the field work.” What does the phrase “conducting 

substantial portions of the field work” mean? 

Interpretation-For purposes of the 24-hour CPE 

requirement, individuals are considered responsible 

for “conducting substantial portions of the field 

work” when, in a given CPE year, their time chargeable to yellow book audits is 20 percent or more of 

their total chargeable time. 

Applicability 

Other External 

of CPE 

and Internal 

Requirements to 

Auditors 

14. Question-Are the CPE requirements applicable to 

other external and internal auditors whose work is 

16. Interpretation-The CPE requirements apply to 

relied on by auditors performing yellow book 

other external auditors (e.g., subcontractors) who 

audits? 

perform a portion of an g&it made in accordance 

with the yellow book, and internal auditors who 

provide direct assistance to an external auditor performing an audit in accordance with the yellow 

book. 

Page 6 
Who b Subject to 

CPE Requirements? 

24-Hour 16. Question-If auditors do yellow book audits of a 

Requirement for government entity and other types of entities-say, 

a private university and a nonprofit museum-are 

Audits of they required to get 24 hours of CPE related to govDifferent 

Ehvironrnents 

er&nent and 24 hours of CPE related to universities 

and nonprofits? 

17. Interpretation-No, 24 hours of CPE allocated in 

any manner among topics related to government 

and/or other specific or unique environments would 

meet the requirement. However, auditors should 

exercise care to ensure that they maintain sufficient 

professional proficiency to perform audits in several different environments+ 

Exemptions and 11% Question-Are some individuals exempt from 

Exceptions meeting the CPE requirements? 

19. Interpretation-The following individuals should 

be qualified to perform their assigned tasks and are 

encouraged to maintain or enhance their professional proficiency through CPE, but are not 

required to meet the yellow book CPE requirements. 

a. External consultants and internal experts and 

specialists such as actuaries, appraisers, attorneys, 

engineers, geologists, medical doctors, and 

statisticians. 

b. Auditors performing nonaudit activities within 

the audit organization, such as individuals assigned 

to staff positions in budgeting, policy, personnel, 

and training. 

c. Auditors performing services not considered to be 

audits, such as gathering information about a program without analyses, conclusions, and 

recommendations. 

d. Employees who assist in the audit by performing 

nonaudit tasks (e.g., typing, collating, reproduction 

Page ii 
Who Is Subject to 

ClW Reqdrementa? 

of report pages, footing schedules), performing 

literature searches, and editing reports. 

e. College and university students employed on a 

temporary basis for a limited period of time (e.g., 

during a semester or term break) or enrolled in a 

formal program sponsored by the college or university for a specific period of employment, such as a 

term or semester. 

20. Question-Can the audit organization grant exceptions from the CPE requirements? 

21. Interpretation-The audit organization may grant 

exceptions from the CPE requirements if a reason 

such as foreign residency, ill health, maternity 

leave, or military service prohibits an auditor from 

fulfilling those requirements. The audit organization should document the reasons for any exceptions granted and retain that documentation for an 

appropriate period of time. (See paragraph 67.) 

Page 7 
When Should complies With CPE 

Requirements Be IMxmind? 

22. The yellow book’s CPE requirements must be satisfied every 2 years. Paragraphs 23 through 36 of 

this interpretation address issues related to determining compliance with those requirements. 

Establishing 

Measurement 

Date 

23. Question-When should the audit organization 

measure its staffs compliance with the CPE 

requirements? 

24. Interpretation-The yellow book states that all of 

the CPE requirements should be met within 2 years 

from the yellow book’s effective date, which was 

January 1, 1989. Therefore, auditors that were subject to the yellow book on its effective date should 

have met the CPE requirements for the first 2-year 

period as of December 31, 1990. 

25. Audit organizations that were not subject to the 

yellow book on its effective date subsequently may 

perform yellow book audits. The staff assigned to 

perform yellow book audits should collectively possess adequate professional proficiency prior to 

starting the audit, and satisfy the CPE requirements 

within 2 years of the date they start audits made in 

accordance with the yellow book.’ 

26. Question-Since all auditors have 2 years from the 

date that they start their first audit made in accordance with the yellow book to meet the 80- and 24- 

hour CPE requirements, all auditors employed by 

an audit organization may not have the same 2-year 

period for completing the required CPE. May an 

audit organization establish one organizationwide 

‘Proposed changes to the yellow book would mandate that CPE 

requirements be satisfied prior to starting an audit made in accordance with the yellow book. Such proposals, if adopted, would be 

phased in most likely by December 31,1992. 

Page g 
When Should Compliance 

With CPE Requirements Be 

Detellllilled? 

date for measuring its staff’s compliance with the 

CPE requirements? 

27. Interpretation-To simplify administration of the 

CPE requirements, an audit organization may establish a standard 2-year CPE period for all of its 

auditors. 

28. An audit organization may use a measurement date 

other than the effective date of the yellow book or 

the date it started its first yellow book audit to 

coincide with a fiscal year or another reporting 

requirement (e.g., state board of accountancy). 

However, during the transition period to another 

measurement date, the staff should complete at 

least a pro rata number of the required 20 hours of 

CPE per year. For example, if an audit organization’s staff started its first yehow book audit on 

January 1, 1991, and the organization adopts July 1 

as its measurement date, its staff should satisfy the 

CPE requirements during the 2 years ended 

June 30, 1993. However, during the audit organization’s transition period (January 1, 1991 to June 30, 

1991), its staff should complete at least a pro rata 

number of the required 20 hours of CPE per year10 hours for the 6-month transition period in this 

example. 

Measuring 29. Question-How should compliance with the CPE 

Compliance After requirements be measured for auditors who become 

Beginning of a 

subject to the yellow book after the beginning of an 

audit organization’s Z-year CPE period? 

2-Year Period 30. Interpretation-Footnote 1 on page 3-2 of the 

yellow book states that, “For entry-level employees 

with less than 2 years with the audit organization, 

on the effective date of [the CPE] requirement, a pro 

rata number of hours would be acceptable.” Similarly, a pro rata number of hours would be acceptable for other auditors hired or assigned to a yellow 

book audit after the beginning of a 2-year CPE 

Page 9 
When Should Compliance 

With CPE Beqnirements Be 

Determined? 

period. An audit organization may define a “pro 

rata number of hours” as follows: 

a. Auditors who have been employed for less than 1 

year of a given 2-year period are not required to 

obtain a minimum number of CPE hours. 

b. Auditors who have been employed at least 1 

year, but less than 2, in a given 2-year period are 

required to meet at least the ZO-hour per year minimum in the second year of the Z-year period. 

CPE Carryover 31. Question-May an auditor carry over CPE hours 

earned in excess of the 80- and 24-hour requirements from one period to the next 2-year period? 

32. Interpretation-No, the 8O- and 24-hour requirements are the minimum number of hours of CPE 

that auditors should complete every 2 years. 

Measuring 3~. Question-If an audit organization discontinues 

Compliance If No conducting yellow book audits before its auditors 

complete the CPE requirements, are those auditors 

Longer Doing still required to satisfy the CPE requirements? 

Yellow Book 

AUditS 34. Interpretation-No. However, the audit organization should have its auditors complete those 

requirements if it is reasonably possible that it will 

be doing yellow book audits in the future. 

Deficiency 

Makeup 

36. Question-Can auditors make up deficiencies in the 

CPE requirements? 

38. Interpretation-Auditors who have not completed 

the required number of CPE hours for any Z-year 

period will have the 2 months immediately following the 2-year period to make up the deficiency. 

Any CPE hours completed toward a deficiency in 

one period should be documented in the CPE 

Page 10 
When Should Compliance 

With CPE Requbements Be 

Determined? 

records and may not be counted toward the requirements for the next 2-year period. Auditors who still 

have not satisfied the CPE requirements after the 

2-month grace period should not participate in 

yellow book audits until those requirements are 

satisfied. 

Page 11 
What Qualifies as Acceptable CPE? 

37. Paragraphs 38 through 50 of this interpretation 

address what activities and subjects would and 

would not satisfy the CPE requirements. 

CPE Programs 38. 

39. 

Question-What are CPE programs? 

Interpretation-CPE programs are structured educational activities designed to maintain or enhance 

participants’ lmowledge and skills in areas applicable to the discipline in which they work. This may 

be achieved through interaction with an instructor 

and other participants-a group program-or 

without major interaction with an instructor-an 

individual study program. 

Criteria for CPE 40. Question-What criteria should be used to deterPrograms mine if group and individual study programs 

qualify for CPE hours? 

41. Interpretation-The yellow book does not establish 

detailed criteria for CPE programs. However, it 

does require that CPE contribute to the auditor’s 

professional proficiency and that audit organizations maintain documentation of the CPE completed. To determine if programs contribute to 

professional proficiency and to facilitate documentation, the following criteria for CPE programs may 

be considered as appropriate. 

a. For both group and individual study programs: 

(1) An agenda or outline is prepared in advance and 

retained that indicates the name(s) of the 

instructor(s); the subject(s)/topic(s) covered; the 

date(s) and length of the program; and, when 

appropriate, the program’s learning objectives and 

any prerequisites. 

(2) The program is developed by individuals qualified or experienced in the subject matter. 

Page 12 
What Qualifies as 

Acceptable CPE? 

(3) Program materials are technically accurate, current, and sufficient to meet the program’s learning 

objectives. 

(4) The program is reviewed, when appropriate, by 

other qualified or experienced individuals. The 

nature and extent of any review may vary 

depending on characteristics of the program. 

(5) Evaluations of the program are obtained from 

instructors and participants, when appropriate. 

b. For group programs: 

(1) Attendance records are maintained. 

(2) The program is presented by an instructor or 

discussion leader who is qualified or experienced 

with respect to the program content. 

c. For individual study programs: 

(1) Participants are required to register for the 

program. 

(2) The program sponsor provides evidence of satisfactory completion (e.g., a certificate or transcript). 

Programs and 42. Question-What CPE programs and activities 

Activities That qualify for CPE hours? 

4.3. Interpretation-The following programs and activities qualify for CPE hours, provided they are in 

acceptable subjects and topics as discussed in 

paragraphs 44 through 48: 

a. Group programs such as: 

(1) Internal training programs (e.g., courses, seminars, and workshops). 

Page 13 
What Qualifies as 

Acceptable CPE? 

(2) Audit organization staff meetings when a structured educational program is presented (e.g., that 

portion of the meeting where a structured educational program is used to brief staff on an auditing 

standard and demonstrate its applicability to their 

work). Informal discussions of current events in the 

audit/evaluation profession do not qualify for CPE 

hours. 

(3) University and college courses (credit and 

noncredit). 

(4) Education and development programs presented 

at conferences, conventions, meetings, seminars, 

and workshops of professional organizations. 

(5) Training programs presented by other audit 

organizations, educational organizations, foundations, and associations. 

b. Individual study programs such as: 

(1) Correspondence courses, self-study guides, and 

workbooks. 

(2) Courses given through audio cassette tapes, 

videotapes, and computers, 

c. Other professional activities, subject to the limitations discussed in paragraphs 59 and 60 are: 

(1) Serving as a speaker, instructor, or discussion 

leader at group programs that qualify for CPE 

hours. 

(2) Publishing articles and books or developing CPE 

courses on subjects and topics that qualify for CPE 

hours and that contribute directly to the author’s 

professional proficiency. 

Page 14 
What Qmllfles 8s 

Acceptable CPE? 

Subjects and 

Topics That 

4.4. Question-What subjects and topics qualify for 

CPE hours? 

Qualify 48. Interpretation-CPE programs include a wide 

variety of subjects and topics that may contribute 

to maintaining or enhancing the professional proficiency of some auditors, but not others. Therefore, 

the audit organization is ultimately responsible for 

determining whether a subject or topic qualifies as 

acceptable CPE for its auditors 

48. CPE that would satisfy the 80-hour requirement 

should be in subjects and topics that maintain or 

enhance auditors’ knowledge and skills in areas 

applicable to the discipline in which they work. 

Examples of such subjects and topics include but 

are not limited to the following: 

accounting principles and standards 

analytical procedures 

assessment of internal controls 

audit methodologies 

audit risk and materiality 

audit standards 

budgeting 

compliance with laws and regulations 

computer science 

contracting and procurement 

cost accounting 

data analysis 

economics 

evaluation design 

financial management 

financial reporting 

forecasts and projections 

industrial engineering 

interviewing techniques 

mathematics 

operations research 

oral and written communication 

pension accounting 

principles of management and supervision 

Page 16 
What Qualiftes 88 

Acceptable CPE? 

probability 

productivity 

program evaluation 

public administration 

public finance 

public policy and structure 

quality control 

report writing 

sampling 

social sciences 

taxation 

workpaper preparation 

Except as discussed in paragraph 50, instruction in 

subjects and topics that meet the CPE requirements 

of licensing bodies (such as state boards of accountancy) or professional organizations (such as the 

American Institute of Certified Public Accountants 

(AICPA) or the Institute of Internal Auditors) would 

also satisfy the 80-hour CPE requirement. 

47. The 24-hour requirement calls for auditors to obtain 

24 hours of CPE in subjects and topics directly 

related to the government environment and to government auditing or the specific or unique environment in which the audited entity operates. The 

following guidelines are presented to help auditors 

determine what subjects and topics would qualify 

for the 24-hour requirement. 

a. Government environment - Subjects and topics 

directly related to the government environment 

may include government accounting principles, 

budgeting, procurement and contracting in govemment, legislative policies and procedures, effects of 

current economic conditions on government operations, relevant laws and regulations, and govemment program and service performance 

measurement and reporting. 

b. Government auditing - Subjects and topics 

directly related to government auditing may include 

Government Auditing Standards and, because they 

Page 16 
What QualilIes as 

Acceptable CPE? 

are incorporated by reference in Government 

Auditing Standards, the AICPA’s statements on 

auditing standards for field work and reporting. 

Other topics include special government audit 

requirements established by law or regulation, such 

as the Single Audit Act of 1984. 

c. Specific or unique environment - Subjects and 

topics directly related to a specific or unique environment may include relevant accounting principles; economic, operating, or regulatory 

developments in the specialized area in which the 

audited entit.y operates; and relevant laws and 

reguIations. 

48. Determining what subjects are appropriate for individual auditors to satisfy the 24-hour requirement 

is a matter of professional judgment to be exercised 

by auditors in consultation with their supervisors. 

Among the considerations in exercising that judgment are the auditors’ experience and the responsibilities they assume in performing yellow book 

audits. For example, it may be appropriate for 

entry-level auditors who conduct yellow book 

audits to concentrate their CPE in subjects related 

to basic auditing standards and procedures. Those 

subjects, however, generally will not be appropriate 

for experienced auditors who plan, direct, and 

report on yellow book audits. Experienced auditors 

should concentrate their CPE in subjects related to 

special government auditing requirements, the government environment, and any specific or unique 

environments where they perform yellow book 

audits. 

Page 17 
whatQualifleEaa 

Acceiptable CPE? 

1 

Pro@xms and 49. Question-What education and training programs 

Activities or 

and activities or subjects and topics do not qualify 

for CPE hours? 

Subjects and 

Topics That Do ~0. Interpretation-Examples of programs and activiNot Qualify ties or subjects and topics that do not qualify for 

CPE hours include, but are not limited to, the 

following: 

a. On-the-job training. 

b. Basic or elementary courses in subjects and 

topics in which the auditor already has the necessary knowledge and skills. 

c. Programs that are not designed to maintain or 

enhance auditors’ professional proficiency, but are 

designed for the general public, such as resume 

writing, improving parent-child relations, personal 

investments and money management, and retirement planning. 

d. Sales-oriented programs that demonstrate office 

equipment. 

e. Programs restricted to the audit organization’s 

administrative operations. 

f. Business sessions at professional organization 

conferences, conventions, and meetings. 

g. Participation as a member of a committee of a 

professional organization. 

h. Preparation and presentation time for repeated 

presentations within the 2-year period. 

i. Conducting external quality control reviews. 

Page 18 
How Are CPE Requirements to 

Be Administered? 

61. The yellow book requires that audit organizations 

implement programs to ensure that auditors meet 

the CPE requirements. Paragraphs 52 through 69 of 

this interpretation address the types of policies and 

procedures that would satisfy that requirement. 

Specific guidance is provided on measuring CPE 

hours, documenting completion of CPE, retaining 

CPE records, and preparing reports on CPE. 

Policies and 

Procedures 

52. Question-What policies and procedures should be 

established and implemented by an audit organization to ensure that auditors meet the CPE 

requirements? 

63. Interpretation-The audit organization’s policies 

and procedures for CPE should address the 

following: 

a. Identifying all employees required to meet the 

CPE requirements. (See paragraphs 8 through 21.) 

b. Determining programs, activities, subjects, and 

topics that qualify for CPE. (See paragraphs 37 

through 50.) 

c. Making information on CPE programs available 

to employees. 

d. Providing employees with the opportunity to 

attend internal or external CPE programs. 

e. Assigning the number of CPE hours for each CPE 

program the audit organization presents. (See 

paragraphs 54 through 56, and 58.) 

f. Identifying the number of CPE hours for external 

programs and other professional activities. (See 

paragraphs 54 through 60.) 

g. Documenting the number of CPE hours completed 

by each employee. (See paragraphs 61 through 65.) 

Page 19 
How Am CPE Requirements 

to Be Administered? 

h. Monitoring employee progress towards meeting 

the CPE requirements. (See paragraph 69.) 

Measuring CPE 64. Question-How are CPE hours measured for qualiHours fying group programs, individual study programs, 

and other professional activities? 

66, Interpretation-A CPE hour may be granted for 

each 50 minutes (i.e., contact hour) of participation 

in programs and activities that qualify. Fractional 

hours may also be granted if appropriate. At conferences and conventions where individual 

presentations are less than and/or more than 50 

minutes, the sum of the presentations should be 

considered as one total program. For example, two 

90-minute, two 50-minute, and three 40-minute 

presentations equal 400 minutes or 8 CPE hours. 

s& Sponsors of CPE programs should monitor their 

programs to accurately assign the appropriate 

number of hours, Participants should receive CPE 

hours only for the actual time they attend the program. Preparation time for students participating in 

a CPE program is not counted. 

57. For university or college credit courses, each 

semester hour credit equals 15 CPE hours, and each 

quarter hour credit equals IO CPE hours. 

MI. Participants in correspondence or individual study 

programs should be granted CPE hours when they 

satisfactorily complete the program. These programs generally should be pretested by the vendor 

or sponsor to determine the average completion 

time, and CPE hours should be granted in an 

amount equal to the average completion time. For 

example, a correspondence course that takes an 

average of 600 minutes to complete should be 

granted 12 CPE hours. However, if the program has 

not been pretested, participants may still be granted 

CPE hours in an amount equal to one half of the 

Page 20 
How Are CPE Requirements 

to Be Administered? 

time they actually spent on the program. For 

example, a person who takes 800 minutes to complete an individual study program may be granted 8 

CPE hours. 

69. Speakers, instructors, and discussion leaders at programs that qualify for CPE should receive CPE 

hours for preparation and presentation time to the 

extent the subject matter contributes directly to 

their professional proficiency. One hour of CPE 

should be granted for each 50 minutes of presentation time, and up to 2 additional hours of CPE may 

be granted for advance preparation for each 50 

minutes of their presentation. For example, a discussion leader could receive up to 2 1 hours of CPE 

for a presentation of 350 minutes (7 hours for presentation and 14 hours for preparation). An individual should not receive CPE hours for either 

preparation or presentation time for repeated 

presentations that they make within the 2-year 

period, unless the subject matter involved was 

changed significantly. The maximum number of 

CPE hours that may be granted to an individual as 

a speaker, instructor, or discussion leader should 

not exceed 40 hours for any 2-year period. 

60. Articles, books, or CPE courses written by auditors 

on subjects and topics related to their expertise 

and/or work that contribute directly to professional 

proficiency will qualify for CPE hours in the year 

they are published. One hour of CPE should be 

granted for each hour devoted to writing articles, 

books, or course materials that are published. However, CPE hours for published writings should not 

exceed 20 hours for any 2-year period. 

Page 21 
How Are CPE Requirements 

to Be Administered? 

Maintaining 61. Question-What are the audit organization’s and 

Documentation auditor’s responsibilities for maintaining documentation of CPE? 

62. Interpretation-The audit organization is responsible for maintaining documentation of the CPE 

hours completed by each auditor subject to the CPE 

requirements. 

6s. The audit organization’s records should include the 

following information for each CPE program or 

activity attended or completed by an auditor: 

a. the sponsoring organization, 

b. the location at which the program was given, 

c. the title of the program and a brief description of 

its contents, 

d. the dates attended for group programs or dates 

completed for individual study programs, and 

e. the number of CPE hours earned toward the 80- 

hour and 24-hour requirements. 

64. Auditors are responsible for providing the above 

information to their audit organization for all 

external CPE programs and other prufessional 

activities attended or completed. Evidence of 

attendance or completion might include the 

following: 

a. Record of the grade received for a university or 

college credit course. 

b. An outline and evidence of attendance or of 

having been the instructor or discussion leader from 

the program sponsor. 

c. Evidence of completion from the program 

sponsor. 

Page 22 
How Are CPE Requirements 

to Be Administered? 

d. A copy of the published book, article, or course. 

66. The audit organization should also maintain a 

record of the fobowing information for each CPE 

program that it presents: 

a. A record of attendance or completion. 

b. Number of CPE hours earned by each 

participant. 

c. An agenda or outline of the program that shows 

the name(s) of the instructor(s); the subjects and 

topics covered; the dates and length of the program; 

and, when appropriate, the learning objective(s). 

d. Locations where the program was given. 

Retaining 

Records 

66. Question-How long should CPE records be 

maintained? 

67. Interpretation-All CPE records should be maintained for an appropriate period of time to satisfy 

legal and administrative requirements. 

Preparing 

Reports 

68. Question-Are audit organizations required to prepare reports on CPE? 

69. Interpretation-No. However, audit organizations 

may consider preparing a semiannual CPE report to 

monitor their staffs’ progress towards meeting the 

CPE requirements. 

Page 23 
Other CPE Issues 

Individual 

Auditors’ 

70. Question-What are the specific responsibilities of 

the auditor for obtaining CPE? 

Responsibilities 71. Interpretation-Individual auditors are responsible, 

in conjunction with the audit organization, for 

seeking opportunities for CPE, for successful completion of CPE programs and activities, and for providing documentation of the CPE hours completed. 

In addition, individual auditors are responsible for 

monitoring their own progress towards meeting the 

CPE requirements. 

Relationship 72. Question-Would satisfying the CPE requirements 

Between Yellow of the AICPA or of a state board of accountancy 

also satisfy the requirements of the yellow book? 

Book and 

Other CPE 73. Interpretation-Individual auditors who are memRequirements bers of the AICPA or are licensed certified public 

accountants are cautioned that the yellow book CPE 

requirements, while similar in many respects to 

those of the AICPA and of state boards of accountancy, are not identical. For example, the yellow 

book requires that auditors obtain at least 80 hours 

of CPE every 2 years, whereas the AICPA requires 

that its members in public practice obtain at least 

120 hours every 3 years, and its members not in 

public practice obtain 60 hours for the first 3 years 

(i.e., l/1/90-12/31/92) and 90 hours every 3 years 

thereafter. Individuals should carefully consult the 

relevant AICPA and state boards of accountancy 

requirements to ensure compliance. 

Monitoring 

Compliance 

74. Question-How will compliance with the CPE 

requirements be determined? 

76. Interpretation-Compliance with the CPE requirements would be evaluated during the performance 

of an external quality control review. 

Page 24 
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Education and Training Reouirements, is for 

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