Source: http://regulations.delaware.gov/register/december2016/proposed/20%20DE%20Reg%20422%2012-01-16.htm
Timestamp: 2018-08-16 12:52:30
Document Index: 670638337

Matched Legal Cases: ['§105', '§10118', '§107', '§107', '§107', '§107', '§108', '§109', '§107', '§107', '§110', '§111110', '§601', '§608', '§608']

Pursuant to 24 Del.C. §105(a)(1), the Delaware Board of Accountancy has proposed revisions to its rules and regulations. The rules are designed to implement the revised Accountancy statute.
A public hearing will be held on January 18, 2017 at 9:00 a.m. in the second floor conference room B of the Cannon Building, 861 Silver Lake Boulevard, Dover, Delaware, where members of the public can offer comments on the amendments to the rules and regulations. Anyone wishing to receive a copy of the proposed rules and regulations may obtain a copy from the Delaware Board of Accountancy, 861 Silver Lake Boulevard, Dover, Delaware 19904. Persons wishing to submit written comments may forward these to the Board at the above address. Written comments will be accepted until February 2, 2017 in accordance with 29 Del.C. §10118(a).
34.0	Applications
34.1	An aApplications for examination, certificates, and permits to practice and renewals of permits to practice shall be submitted on forms approved by the Board.
34.2	The Board may require additional information or explanation when it has questions about an applicant’s qualifications or application materials. An application is not complete or in proper form until the Board has received all required and requested documents, materials, information and fees.
46.0	Requirements and Qualifications for a Certificate and Permit to Practice as a Certified Public Accountancy Accountant
4.16.2	Each applicant for a certificate and permit to practice certified public accountancy pursuant to 24 Del.C. §107 must provide the Board with the following:
4.1.16.2.1	A statement under oath or other verification satisfactory to the Board that the applicant is of good character as that term is defined in 24 Del.C. §107(a)(1) has not been convicted of a crime that is substantially related to the practice of accountancy as stated in subsection 12.1.
4.1.26.2.2	Evidence in a form satisfactory to the Board that the applicant has successfully passed the Uniform Certified Public Accountant Examination or its successor examination as established by the AICPA and the National Association of State Boards of Accountancy (NASBA).
4.1.36.2.3	Evidence in a form satisfactory to the Board that the applicant has successfully completed the AICPA self-study program "Professional Ethics for CPAs," or its successor course, with a passing grade of not less than 90% within 10 years of the date of the application.
4.1.46.2.4	Evidence in a form satisfactory to the Board that the applicant has completed at least 150 semester hours of college education including a Baccalaureate Degree or a higher degree or met the educational requirements of a state that was deemed to be substantially equivalent as of January 1, 2009 and in which the applicant was a CPA examination candidate and passed said exam. The total educational program shall include a concentration in accounting.
4.1.4.16.2.4.1	The applicant also must, upon request, submit proof that the college or university granting the degree was, at the time of the applicant's graduation, accredited by the Middle States Association of Colleges and Secondary Schools or by another comparable regional accrediting association. A degree granted by a college or university not so accredited at the time of applicant's graduation will not be accepted. Graduates of non-United States (U.S.) degree programs will be required to have their credentials evaluated by a credential evaluation service acceptable to the Board, to determine equivalency to U.S. regional accreditation.
4.1.4.26.2.4.2	The concentration in accounting must be completed at an accredited college or university and consist of at least 24 semester hours of accounting courses covering some or all of the following subject matter content, which are to be derived from the current Uniform CPA Examination Content Specification Outline (CSO):
These courses may be taken either as part of the applicant's Baccalaureate or Master's Degree program or subsequent to the completion of the program. Each applicant must have completed courses in financial accounting and reporting, auditing and attestation services, and taxation as components of the 24 hour concentration in accounting. in accounting principles, intermediate accounting, cost accounting, tax, auditing, advanced accounting, accounting information systems, and law. Courses in other business subjects, such as banking, computer science, economics, finance, insurance, management and marketing will not be accepted as accounting courses for this purpose.
4.1.56.2.5	Evidence in a form satisfactory to the Board that the applicant meets the all of the following experience requirements: provided in 24 Del.C. §107(a)(5) and Rule 5.0 of these Rules and Regulations, as applicable.
4.1.66.2.6	A statement under oath or other verification satisfactory to the Board that the applicant has not engaged in any acts that would be grounds for discipline by the Board.
4.1.76.2.7	A certified statement from the licensing authority, or comparable agency, that the applicant has no pending disciplinary proceedings or complaints against him or her in each jurisdiction where the applicant currently or previously held a permit to practice.
7.2.1.1	Each permit holder must have completed at least 80 hours of acceptable continuing professional education each biennial reporting period. Each biennial reporting period ends on June 30 of each odd-numbered year. The eighty hours of acceptable continuing professional education submitted must have been completed in the immediately preceding two-year period and must include eight (8) credit hours in accounting and/or auditing and eight (8) credit hours in taxation and four (4) credit hours in a Delaware specific ethics course approved by the Board as set forth in subsection 11.7. In addition to these 20 specified hours, each permit holder must complete at least an additional twenty (20) credit hours in either accounting, auditing or taxation.
69.0	Requirements for Permit to Practice Public Accountancy
69.1	Each applicant for a permit to practice public accountancy must provide the Board with the following:
69.1.1	A statement under oath or other verification satisfactory to the Board that the applicant is of good character as that term is defined in 24 Del.C. §107(a)(1)110(c)(1).
69.1.2	Evidence in a form satisfactory to the Board that the applicant holds, as a minimum, an associate degree with a concentration in accounting. Subsections 4.1.4.1 6.2.4.1 and 4.1.4.2 6.2.4.2 also apply to applicants for permits to practice public accountancy.
69.1.3	Evidence in a form satisfactory to the Board that the applicant has successfully passed the accounting examination given by the Accreditation Council for Accountancy and Taxation, which is the examination recognized by the National Society of Public Accountants, or both the Financial Accounting and Reporting (FAR) and Auditing and Attestation (AUD) portions of the Uniform Certified Public Accounting Examination. Effective August 1, 2012, aAn applicant shall qualify to sit for the FAR and AUD portions of the Uniform Certified Public Accountants Examination only if he or she holds at least a Baccalaureate Degree with 120 credit hours.
69.1.4	Evidence in a form satisfactory to the Board that the applicant has successfully completed the AICPA self-study program "Professional Ethics for CPAs," or its successor course, with a grade of not less than 90% within 10 years of the date of the application.
69.1.5	A statement under oath or other verification satisfactory to the Board that the applicant has not engaged in any acts that would be grounds for discipline by the Board.
69.1.6	A certified statement from the licensing authority, or comparable agency, that the applicant has no pending disciplinary proceedings or complaints against him or her in each jurisdiction where the applicant currently or previously held a permit to practice.
10.1	Rule 10.0 in its entirety does not apply to a firm that does not maintain an office in this State and is practicing certified public accountancy through an individual practicing pursuant to the practice privilege afforded by 24 Del.C. §108 and Rule 9.3. A CPA firm that does not maintain an office in this State and is practicing certified public accountancy through an individual practicing pursuant to the practice privilege afforded by 24 Del.C. §109 and Section 8.0 is not required to have a CPA firm permit to practice or otherwise notify the Board.
10.32	Each firm which intends to be or is engaged in the practice of certified public accountancy or the practice of public accountancy in this State shall be required to obtain and maintain a valid permit to practice. Individuals not currently practicing certified public accountancy or public accountancy shall not be required to obtain a firm permit to practice until such time as that person begins to perform certified public accounting or public accounting services in this State or for clients located in this State. A sole proprietor is required to hold both an individual permit to practice public accountancy and a firm permit to practice public accountancy.
10.4	Each applicant for issuance or renewal of a firm permit to practice certified public accountancy for a firm with an office or offices in this State shall be required to show that: 1) each principal who performs services in this State, who performs services for a client(s) located in this State, or who is responsible for the accounting work in this State, holds a valid Delaware individual permit to practice certified public accountancy; 2) each employee holding a certificate who performs services in this State or who performs services for a client(s) located in this State, except for employees who have not as yet accumulated sufficient experience to qualify for a permit under 24 Del.C. §107, holds a valid Delaware individual permit to practice certified public accountancy and 3) a simple majority of the ownership of the firm, in terms of financial interests and voting rights of all partners, officers, shareholders, members or managers, belongs to holders of a permit who are licensed in some state, and such partners, officers, shareholders, members or managers, whose principal place of business is in this state, and who perform services in this state hold a valid permit under 24 Del.C. §107. Firms may include non-licensee owners provided that all non-licensee owners are individuals of good moral character and are active individual participants in the firm.
10.4	Each applicant for issuance of an initial firm permit to practice certified public accountancy must be enrolled in a peer review program pursuant to subsection 10.13.
10.5	Each applicant for issuance or renewal of a firm permit to practice public accountancy shall be required to show that: 1) each principal who performs services in this State, who performs services for a client(s) located in this State, or who is responsible for the accounting work in this State, holds a valid Delaware individual permit to practice public accountancy; and 2) each employee holding a certificate who performs services in this State or who performs services for a client(s) located in this State, except for employees who have not yet met the requirements to qualify for a permit under 24 Del.C. §110, holds a valid individual permit to practice public accountancy. For purposes of 24 Del.C. §111110 and this Section, employees of a firm with its principal offices outside of Delaware that work in excess of eighty (80) hours in this State or who work for a client(s) in this State must have a valid Delaware individual permit to practice.
10.6	Each applicant for issuance of an initial firm permit to practice public accountancy must be enrolled in a peer review program pursuant to subsection 10.13.
10.67	An applicant for issuance or renewal of a firm permit to practice certified public accountancy or public accountancy shall be required to register each office of the firm within this State with the Board, and to show that each such office is under the charge of a person holding a valid Delaware permit to practice.
10.8.1.8	Issuance of the firm’s first issued financial statements and accountant’s reports for each level of service described in subsection 10.13; or
10.89	Certified public accounting and public accounting firms practicing as corporations organized pursuant to Delaware law must be organized in compliance with The Professional Service Corporation Act, 8 Del.C. §601, et. seq.
10.910	All firms and accountants practicing in firms shall be bound by professional responsibility standards no less stringent than those stated in 8 Del.C. §608. Each applicant for issuance or renewal of a firm permit to practice certified public accountancy or public accountancy shall be required to cause a duly authorized individual to verify under oath that upon issuance by the Board of a firm permit to practice, the firm will be bound by professional standards no less stringent than those stated in 8 Del.C. §608.
10.1011	Certified public accounting and public accounting firms may not practice using firms names that are misleading as to organization, scope, or quality of services provided.
10.13.6.7.1	Health;
10.13.6.7.2	Military service; or
10.13.6.7.3	Other good cause clearly outside of the control of the firm. For good cause shown, the Board may grant or renew applications for a reasonable period of time pending completion of the firm’s peer review.
20 DE Reg. 422 (12/01/16) (Prop.)