|
Text Size: A+| A-| A   |   Text Only Site   |   Accessibility
Board of Accountancy
Keeping Current
Proposed Rule Changes
Proposal to Change Cross Border Practice Requirements
AICPA Independence Rule 101 & Intrepretations
2005 Legislative Report
Board Communications
Proposed Rule Changes
Proposed administrative rule revisions to become effective January 1, 2008 are listed below.
 
An Administrative Rule Hearing is scheduled December 3, 2007 from 1:00 p.m. to 3:00 p.m. at the Board of Accountancy office located at 3218 Pringle Rd SE , Salem, Oregon 97302.  Written comments and oral comments will be heard at the hearing or sent to the Board office.
 
The links below show the proposed revisions. 
 

For a complete set of rules please click on the following link:  Administrative Rules
 
Proposal to Change Cross Border Practice Requirements
            In October 2006 an Exposure Draft to the Uniform Accountancy Act (UAA) was released that proposes to eliminate notice and fee requirements under substantial equivalency, allowing a licensed certified public accountant to provide professional services in any state without restraint.  The state in which professional services are rendered has automatic jurisdiction to take enforcement action when the Board receives complaints relating to certified public accountants who provide services in Oregon under the revised substantial equivalency provisions.  Substantial Equivalency provisions are only available for certified public accountants.
 
            The Oregon Board of Accountancy and the Oregon Society of Certified Public Accountants have agreed to form a task force to consider whether the proposed revisions to substantial equivalency should be adopted in Oregon, and whether the proposed revisions would provide adequate public protection. 
 
            The Uniform Accountancy Act (UAA) is a model act developed by the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA).  The Fourth Edition of the UAA was released in December 2005.  The UAA is not binding on any state; rather each state board of accountancy may elect to adopt provisions of the UAA as the state board deems appropriate.
 
Background
 
Current Substantial Equivalency Provisions under UAA
            Section 23 of the UAA provides a model for allowing certified public accountants who are licensed in one state (and whose principal place of business remains in the state of licensing) to provide professional services to clients in other states without the need to license in the second jurisdiction.  This model is known as Substantial Equivalency and is based on three standards: 150 hours of education, including a BA, successful completion of all sections of the Uniform CPA exam, and one year of experience in public accounting.  Under the current model for substantial equivalency, individuals who demonstrate these standards would be eligible to practice in a jurisdiction that has approved Substantial Equivalency after providing notice to the state of the intent to provide services in that state. 
 
Current Substantial Equivalency Provisions in Oregon
            Substantial equivalency provisions were approved in Oregon in 1999.  Licensees in other states may provide professional services to Oregon clients by submitting an application (notice) and fee ($100 each year) to the Board.  Depending on the services to be provided, the firm may also be required to register in Oregon.  Oregon authorization under substantial equivalency is issued within 24 to 48 hours of receiving the notice.  Oregon has issued substantial equivalency authorization to approximately 325 qualified licensees.
 
            The Board would like to receive written comments from Oregon CPAs about the UAA proposal.  Information about the task force and when it meets will be included in future newsletters.  Your comments may be submitted by mail: Oregon Board of Accountancy, 3218 Pringle Rd SE, #110, Salem OR 97302; by fax: 503-378-3575; or by e-mail: heather.shepherd@state.or.us 
 
            The October 2006 Exposure draft and a Revised Exposure draft issued in March 2007 may be viewed at http://www.nasba.org
 
AICPA Independence Rule 101 & Intrepretations
The Board of Accountancy adopted AICPA Independence Rule 101 and interpretations of Rule 101, effective January 1, 2005.  Oregon Administrative Rule, 801-030-0005  states:
 
The Board adopts the Independence Rule established by the AICPA, ET Section Rule 101 Independence, together with the interpretations and rulings of such rule issued by the AICPA.  Licensees who perform services that are subject to independence standards promulgated by other regulatory or professional standard setting bodies, agencies and organizations, including but not limited to the Securities and Exchange Commission, the General Accounting Office, the Oregon Secretary of State, Division of Audits and the US Department of Labor, must also comply with those standards applicable to the services provided.
 
Licensees should refer to AICPA Interpretations of Rule 101 regarding independence questions.  The interpretations are on the  AICPA website:  http://aicpa.org/about/code/sec100.htm
 
 
2005 Legislative Report
August 1, 2005
 
The seventy-third Oregon Legislative Assembly enacted legislation that made the following changes to ORS chapter 673, the statutes that govern the licensing requirements of certified public accountants and public accountants in Oregon:
HB 2085 removed a statutory reference that required peer reviews to be performed by certified public accountants licensed in Oregon.  The Board does not believe this requirement for an Oregon license is necessary for public protection because peer reviews are conducted according to national standards.  The bill had an emergency clause and became effective May 13, 2005.  Now Oregon licensees may select a peer reviewer from another state, so long as the person conducting the peer review holds an active permit issued by another state board of accountancy.  A public accountant licensed in Oregon may also perform peer reviews for Oregon licensees.  ORS 673.010(13)
 
          The provisions of HB 2195B go into effect January 1, 2006, and include three changes that will increase public protection in Oregon.
1.  Cease and desist authority allows the Board to take more effective disciplinary action against individuals who engage in the unlicensed practice of public accountancy or use the title or designation for “certified public accountant” or “public accountant” without a valid license.  Current sanctions available to the Board for unlicensed practice are suspension or revocation of the license and civil penalties.  ORS 673.170(2)(p)
 
2.  The word “retired” was removed to clarify that retirement is not a requirement for licensees who choose inactive status, so long as the licensee does not hold out as a licensee and is not engaged in the practice of public accountancy.  The purpose of the change is to eliminate confusion about eligibility for inactive status.  ORS 673.220
 
3.  Clarifies Board authority to regulate peer review by including specific language authorizing the Board to review peer review reports issued to licensees under Board approved peer review programs.   ORS 673.455(5)(c)  
 
Board Communications
There are various occasions when Licensees are required to communicate with the Board of Accountancy or to respond to a communication from the Board. The Board of Accountancy is authorized to assess a civil penalty of up to $5,000 for each violation of the administrative rules or the statutes. The Board does not impose the same penalty for every type of Board communication; rather the penalty may differ depending upon the rule that is in violation. Licensees should be aware of the following requirements and the civil penalties associated with each requirement.
 
OAR 801-030-0020(7) requires licensees to respond to any board communication within 21 days of the date of the correspondence. Board communications that are subject to this requirement always include a statement that response is required within 21 days. The licensee´s response may be a letter requesting additional time and stating reasonable justification for the request. However such requests should be submitted promptly; if additional time is not approved, the response is still due within 21 days of the original communication from the Board. The Board may allow additional time if the reason for the request is based on circumstances that are outside of the licensee´s control.
 
If the board communication is a notice letter of a complaint filed against the licensee, the penalty for not responding in a timely manner is $1,000. The penalty for not responding in a timely manner to other Board communications that include a 21-day response notice is at least $100.
 
OAR 801-030-0020(9) requires licensees to provide written notice of a change of address within 30 days of such change. This requirement applies to both individual licensees and registered public accounting firms. The civil penalty for failure to provide this notice to the Board is $100. However there may be more serious consequences. If the licensee does not receive the renewal application (because it is mailed to the last address of record), and therefore does not renew the permit, the permit will lapse. Licensees who continue to hold out as a CPA or PA, or who perform public accounting services that are restricted to licensees, are subject to additional civil penalties of up to $5,000 for each violation.
 
For example, every instance of holding out, or every tax return signed is a separate violation. If the licensee does not receive notice of the civil penalty (because the Board of Accountancy does not have a valid address for mailing), the Order will become final by default and the penalty is due and payable within 10 days. If the penalty is not paid, the permit will be suspended. Licensees who continue to hold out or to perform public accounting services while a permit is suspended risk revocation.
 
ORS 673.160 and OAR 801-010-0345 state the requirements for firm registrations and renewals. The renewal form includes a box to be checked by the licensee if the firm wishes to be terminated when registration as a public accounting firm is no longer required. Renewal applications requesting termination of the firm should also be returned to the Board. Renewal applications that are received after December 31 of the renewal period that is expiring are subject to a late fee. Renewal applications that are received after January 31 of the new renewal period are subject to a $500 penalty for failure to renew.
 
OAR 801-040-0070 requires licensees to document CPE hours reported on the licensee´s last renewal form at the Board´s request. The Board conducts an audit of CPE reports after each renewal period. Licensees who do not respond to a CPE audit request letter within 21 days are subject to a $250 civil penalty.
 
Page updated: October 18, 2007

Text Only | State Directories | Agencies A to Z | Site Map | About Oregon.gov | Oregon.gov|
File Formats | Oregon Administrative Rules | Oregon Revised Statutes | Privacy Policy | Web Site Feedback|

Get Adobe Acrobat ReaderAdobe Reader is required to view PDF files. Click the "Get Adobe Reader" image to get a free download of the reader from Adobe.