the rules committee of the texas state board of public

The Rules Committee of the Texas State Board of Public Accountancy is holding a meeting by online video conference call pursuant to §551.127 of the Open Meetings Act. The public may attend the meeting in-person at the office of the Board which is located at 505 E. Huntland Drive, Suite 370, Austin, Texas 78752. The Chair of the Rules Committee will be present at the 505 E. Huntland Drive location for the entirely of the meeting. In the alternative, the public may attend the meeting virtually using the following link. Topic: Rules Committee Meeting Time: Nov 10, 2021 01:30 PM Central Time (US and Canada) Join ZoomGov Meeting https://www.zoomgov.com/j/1619589150?pwd=TFRTaytPaHp5Lys0emFGclVBeit4QT09 Meeting ID: 161 958 9150 Passcode: 758735 Dial by your location +1 646 828 7666 US Meeting ID: 161 958 9150

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Agenda Item V Rules Committee Agenda

November 10, 2021 1:30 p.m.

A. Discussion, consideration, and possible action concerning Board Rules 511.51 (Educational Definitions), 511.57 (Qualified Accounting Courses), 511.58 (Definitions of Related Business Subjects and Ethics Courses), 511.59 (Definition of 150 Semester Hours), 511.60 (Qualified Accounting Courses Prior to January 1, 2024), 511.72 (Uniform Examination) and 511.80 (Granting of Credit).

B. Schedule next meeting.  

*The proposed Rule Revisions were revised by the Qualifications Committee at its meeting on November 1, 2021. The revisions by the Qualifications Committee are highlighted in green. This will be the version of the proposed Rule revisions for your consideration at the Rules Committee meeting scheduled for November 10, 2021 beginning at 1:30 p.m.

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Agenda Item V Rules Committee Agenda

November 10, 2021 1:30 p.m.

A. Discussion, consideration, and possible action concerning Board Rules 511.51 (Educational Definitions), 511.57 (Qualified Accounting Courses), 511.58 (Definitions of Related Business Subjects and Ethics Courses), 511.59 (Definition of 150 Semester Hours), 511.60 (Qualified Accounting Courses Prior to January 1, 2024), 511.72 (Uniform Examination) and 511.80 (Granting of Credit).

DISCUSSION: The Qualifications Committee is scheduled to meet on November 1, 2021 after these agenda materials have been distributed to you. It is therefore possible that the Qualifications Committee may have changes to the following proposed rules. If that occurs, the Qualifications Committee recommendations will be emailed to you as soon as any changes are proposed. Currently, the proposed revisions allow for the Board to accept up to three credit hours of independent study in accounting under the supervision of a faculty supervisor. They require an ethics course to include the rules of the AICPA, SEC and the Board. To be eligible to take the Uniform Certified Public Accountant Examination (UCPAE), the applicant must have completed 30 semester hours of upper level accounting courses, 24 semester hours of upper level business courses, a three-hour Board approved ethics course and a total of 150 semester hours. The hours from a course that has been repeated will be counted only once toward the required 150 total semester hours. The proposed rules address the restructuring of the UCPAE beginning January 1, 2024 to include auditing and attestation (AUD), business analysis and reporting (BAR), financial accounting and reporting (FAR), information systems and controls (ISC), tax and regulations (REG), and tax compliance and planning (TCP). Additional proposed revisions establish how credit earned prior to January 1, 2024 will be treated. Credit for auditing and attestation will transfer to AUD, financial accounting and reporting will transfer to FAR, credit on regulation will transfer to REG and credit on business environment and concepts will not transition as there is no equivalent in the new exam. Board Rule 511.60 is a new rule to help make it clear what the requirements are for qualified accounting courses prior to January 1, 2024. RECOMMENDATION: That the Qualifications Committee recommendations be considered by the Rules Committee for recommendation to the Board.

SUGGESTED MOTION: That the Rules Committee recommends that the Board authorize the executive director to publish the proposed revisions in the Texas Register for public comment.

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CHAPTER 511 ELIGIBILITY 1 SUBCHAPTER C EDUCATIONAL REQUIREMENTS 2 RULE §511.51 Educational Definitions 3

4

(a) The following words and terms extracted from rules promulgated by the Texas 5

Higher Education Coordinating Board, shall have the following meanings for this 6

chapter, unless the context clearly indicates otherwise. 7

(1) "Accelerated courses" means courses delivered in shortened semesters which are 8

expected to have the same number of contact hours and the same requirement for out-9

of-class learning as courses taught in a normal semester. 10

(2) "Contact hour" means a time unit of instruction used by institutions of higher 11

education consisting of 60 minutes, of which 50 minutes must be direct instruction. 12

(3) "Non-traditionally-delivered course" means a course that is offered in a non-13

traditional way and does not meet the definition of contact hours. 14

(4) "Semester" means and normally shall include 15 weeks for instruction and one 15

week for final examination or a total of 16 weeks instruction and examination combined. 16

(5) "Semester credit hour" means a unit of measure of instruction consisting of 60 17

minutes, of which 50 minutes must be direct instruction, over a 15-week period in a 18

semester system or a 10-week period in a quarter system. 19

(6) "Traditionally-delivered three semester-credit-hour course" or "traditional course" 20

means a course containing 15 weeks of instruction (45 contact hours) plus a week for 21

final examinations so that such a course contains 45-48 contact hours depending on 22

whether there is a final exam. 23

(b) The following words and terms shall have the following meanings, unless the context 24

clearly indicates otherwise and shall be considered substantially equivalent to 25

definitions and references in rules promulgated by the Texas Higher Education 26

Coordinating Board. 27

(1) "Recognized community college" means a Texas community college or campus of 28

the community college that holds the designation 'Qualifying Educational Credit for the 29

CPA Examination' awarded by the board. 30

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(2) "Extension and correspondence school" means a program within an institution that 1

offers courses that are not equivalent to courses offered in an academic department at 2

the institution and the courses are not listed on an official transcript from the institution. 3

(3) "Institution" or "Institution of Higher Education" means any U.S. public or private 4

senior college or university which confers a baccalaureate or higher degree to its 5

students completing a program of study required for the degree. 6

(4) “Independent study” means academic work selected or designed by the 7

student with the pre-approval of the appropriate department or a college or 8

university under faculty supervision. This work typically occurs outside of the 9

regular classroom structure. 10

(5) “Internship” means faculty pre-approved and appropriately supervised short-11

term work experience, usually related to a student’s major field of study, for 12

which the student earns academic credit. 13

(6) (4) "Proprietary organization" means a CPA review course provider. 14

(7) (5) "Quarter credit hour" is the unit of measurement based upon an institution of 15

higher education system that divides the academic year into three equal sessions of 10 16

to 11 weeks. A quarter credit hour represents proportionately less work than a semester 17

hour because of the shorter session and is counted as 2/3 of a semester credit hour for 18

each hour of credit. 19

(8) (6) "Reporting institution" means the institution of higher education in the state that 20

serves as the clearinghouse for educational institutions of higher education in Texas. 21

Currently, the University of Texas-Austin is the reporting institution for the state of 22

Texas. 23

(9) (7) "SACS" means the Southern Association of Colleges and Schools-Commission 24

on Colleges. 25

(10) (8) "THECB" means the Texas Higher Education Coordinating Board. 26

(11) (9) "Transcript," "Official Transcript" or "Official Educational Document" means a 27

document prepared by an institution that contains a record of the academic coursework 28

offered by an academic department that a student has taken, grades and credits 29

earned, and degrees awarded. The document is printed on paper bearing a watermark 30

specific to the institution and is embossed with the institution's seal, date and the 31

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signature of the Registrar who is responsible for certifying coursework and degrees. The 1

document may be provided electronically from the institution or its authorized agent. 2

(12) (10) "UCPAE" means the Uniform Certified Public Accountant Examination 3

prepared and graded by the American Institute of Certified Public Accountants. 4

(13) (11) "Upper Division Accounting Course" means at a minimum junior and senior 5

year course work that requires the successful completion of introductory or basic course 6

work before it can be taken. 7

(14) (12) "Upper Division Business Course" means at a minimum junior and senior 8

year course work that requires the successful completion of introductory or basic course 9

work before it can be taken. 10

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CHAPTER 511 ELIGIBILITY 1 SUBCHAPTER C EDUCATIONAL REQUIREMENTS 2 RULE §511.57 Qualified Accounting Courses 3

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(a) An applicant shall meet the board's accounting course requirements in one of the 5

following ways: 6

(1) Hold a baccalaureate or higher degree from a board-recognized institution of higher 7

education as defined by §511.52 of this chapter (relating to Recognized Institutions of 8

Higher Education) and present official transcript(s) from board-recognized institution(s) 9

that show degree credit for no fewer than 30 semester credit hours of upper division 10

accounting courses as defined in subsections (e), (f) and (g) (d) and (e) of this section; 11

or 12

(2) Hold a baccalaureate or higher degree from a board-recognized institution of higher 13

education as defined by §511.52 of this chapter, and after obtaining the degree, 14

complete the requisite 30 semester credit hours of upper division accounting courses, 15

as defined in subsections (e), (f) and (g) (d) and (e) of this section, from four-year 16

degree granting institutions, or accredited community colleges, provided that all such 17

institutions are recognized by the board as defined by §511.52 or §511.54 of this 18

chapter (relating to Recognized Texas Community Colleges). 19

(b) Credit for hours taken at board-recognized institutions of higher education using the 20

quarter system shall be counted as 2/3 of a semester credit hour for each hour of credit 21

received under the quarter system. 22

(c) The board will accept no fewer than 30 semester credit hours of accounting courses 23

from the courses listed in subsections (e), (f) and (g) (d) and (e) of this section. The 24

hours from a course that has been repeated will be counted only once toward the 25

required 30 semester hours. The courses must meet the board's standards by 26

containing sufficient accounting knowledge and application to be useful to candidates 27

taking the UCPAE. A board-recognized institution of higher education must have 28

accepted the courses for purposes of obtaining a baccalaureate or higher degree or its 29

equivalent, and they must be shown on an official transcript. 30

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(d) Upper level accounting coursework recognized by the board and in effect 1

prior to January 1, 2024 may be found in §511.60 – Qualified Accounting Courses 2

Prior to January 1, 2024. 3

(e) (d) Effective January 1, 2024, the subject-matter content should be derived from the 4

UCPAE Blueprint. A minimum of 15 semester hours with at least three semester hours 5

in each of the following accounting course content area is required: 6

(1) financial accounting and reporting for business organizations that may include: 7

(A) intermediate accounting; 8

(B) advanced accounting; and 9

(C) accounting theory; 10

(2) financial statement auditing; 11

(3) taxation; and 12

(4) accounting information systems. 13

(f) (e) Effective January 1, 2024, a minimum of 15 hours in any of the following 14

accounting course content area is required: 15

(1) managerial or cost accounting (excluding introductory level courses); 16

(2) auditing and attestation services; 17

(3) internal accounting control and risk assessment; 18

(4) financial statement analysis; 19

(5) accounting research and analysis; 20

(6) up to 9 semester credit hours of taxation (including tax research and analysis); 21

(7) financial accounting and reporting for governmental and/or other nonprofit entities; 22

(8) up to 9 semester credit hours of accounting information systems, including 23

management information systems ("MIS"), provided the MIS courses are listed or cross-24

listed as accounting courses, and the institution of higher education accepts these 25

courses as satisfying the accounting course requirements for graduation with a degree 26

in accounting; 27

(9) up to 12 semester credit hours of accounting data analytics, provided the institution 28

of higher education accepts these courses as satisfying the accounting course 29

requirements for graduation with a degree in accounting; business data analytics may 30

be considered provided the courses are listed or cross-listed as accounting courses, 31

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and the institution of higher education accepts these courses as satisfying the 1

accounting course requirements for graduation with a degree in accounting; (while data 2

analytics tools may be taught in the courses, application of the tools should be the 3

primary objective of the courses); 4

(10) fraud examination; 5

(11) international accounting and financial reporting; 6

(12) mergers and acquisitions; 7

(13) an accounting internship program (not to exceed 3 semester credit hours) which 8

meets the following requirements: 9

(A) the accounting knowledge gained is equal to or greater than the knowledge 10

gained in a traditional accounting classroom setting; 11

(B) the employing firm provides the faculty coordinator and the student with the 12

objectives to be met during the internship; 13

(C) the internship plan is approved in advance by the faculty coordinator; 14

(D) the employing firm provides significant accounting work experience with adequate 15

training and supervision of the work performed by the student; 16

(E) the employing firm provides the student with training, supervision, periodic 17

feedback and a final evaluation at the conclusion of the internship, provides a letter 18

describing the duties performed and the supervision to the student, and provides a copy 19

of the documentation to the faculty coordinator and the student; 20

(F) the student keeps a diary comprising a chronological list of all work experience 21

gained in the internship; 22

(G) the student writes a paper demonstrating the knowledge gained in the internship; 23

(H) the student and/or faculty coordinator provides evidence of all items upon request 24

by the board; 25

(I) the internship course shall not be taken until a minimum of 12 semester credit 26

hours of upper division accounting course work has been completed; and 27

(14) at its discretion, the board may accept up to three semester hours of credit of 28

accounting course work with substantial merit in the context of a career in public 29

accounting, provided the course work is predominantly accounting or auditing in nature 30

but not included in paragraphs (1) - (12) of this subsection. For any course submitted 31

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under this provision, the Accounting Faculty Head or Chair must affirm to the board in 1

writing the course's merit and content. 2

(15) at its discretion, the board may accept up to three semester credit hours of 3

independent study in accounting selected or designed by the student under 4

faculty supervision. The curriculum for the course shall not repeat the curriculum 5

of another accounting course that the student has completed. 6

(g) (f) The board requires that a minimum of two semester credit hours in research and 7

analysis relevant to the course content described in subsection (f) (e) of this section be 8

completed. The semester credit hours may be obtained through a standalone course or 9

offered through an integrated approach. If the course content is offered through 10

integration, the institution of higher education must advise the board of the course(s) 11

that contain the research and analysis content. The course may be used toward the 15 12

semester credit hours of upper level accounting courses identified in subsection (f)(5) 13

(e)(5) of this section. 14

(h) (g) The following types of introductory courses do not meet the accounting course 15

definition in subsections (e) and (f) (d) and (e) of this section: 16

(1) elementary accounting; 17

(2) principles of accounting; 18

(3) financial and managerial accounting; 19

(4) introductory accounting courses; and 20

(5) accounting software courses. 21

(i) (h) Any CPA review course offered by an institution of higher education or a 22

proprietary organization shall not be used to meet the accounting course definition. 23

(j) (i) CPE courses shall not be used to meet the accounting course definition. 24

(k) (j) An ethics course required in §511.58(d) of this chapter (relating to Definitions of 25

Related Business Subjects and Ethics Courses) shall not be used to meet the 26

accounting course definition in subsections (e) and (f) (d) and (e) of this section. 27

(l) (k) Accounting courses completed through an extension school of a board 28

recognized educational institution may be accepted by the board provided that the 29

courses are accepted for a business baccalaureate or higher degree conferred by that 30

educational institution. 31

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(m) (l) The board may review the content of accounting courses and determine if they 1

meet the requirements of this section. 2

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CHAPTER 511 ELIGIBILITY 1 SUBCHAPTER C EDUCATIONAL REQUIREMENTS 2 RULE §511.58 Definitions of Related Business Subjects and Ethics Courses 3

4 (a) Related business courses are those business courses that a board recognized 5

institution of higher education accepts for a business baccalaureate or higher degree by 6

that educational institution. 7

(b) An individual who holds a baccalaureate or higher degree from a recognized 8

educational institution as defined by §511.52 of this chapter (relating to Recognized 9

Institutions of Higher Education) may take related business courses from four-year 10

degree granting institutions, or recognized community colleges, provided that all such 11

institutions are recognized by the board as defined by §511.52 or §511.54 of this 12

chapter (relating to Recognized Texas Community Colleges). Related business courses 13

taken at a recognized community college are only the courses that the board has 14

reviewed and approved to meet this section. 15

(c) The board will accept no fewer than 24 semester credit hours of upper level courses 16

(for the purposes of this subsection, economics and statistics at any college level will 17

count as upper division courses) as related business subjects (without repeat), taken at 18

a recognized educational institution shown on official transcripts or accepted by a 19

recognized educational institution for purposes of obtaining a baccalaureate degree or 20

its equivalent, in the following areas. No more than 6 credit semester hours taken in any 21

one subject area may be used to meet the minimum hour requirement. 22

(1) business law, including study of the Uniform Commercial Code; 23

(2) economics; 24

(3) management; 25

(4) marketing; 26

(5) business communications; 27

(6) statistics and quantitative methods; 28

(7) finance; 29

(8) information systems or technology; 30

(9) business data analytics (while data analytic tools may be used in the course, 31

application of the tools should be the primary objective of the course); and 32

(10) other areas related to accounting. 33

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(d) In addition to the 24 hours required in subsection (c) of this section, the board 1

requires that 3 passing semester hours be earned as a result of taking a standalone 2

course in accounting or business ethics. The course must be taken at a recognized 3

educational institution and should provide students with a framework of ethical 4

reasoning, professional values and attitudes for exercising professional skepticism and 5

other behavior that is in the best interest of the public and profession. The ethics course 6

shall include the ethics rules of the AICPA, SEC and the board, and should provide 7

a foundation for ethical reasoning and include the core values of integrity, objectivity 8

and independence taught by an instructor who has not been disciplined by the board for 9

a violation of the board's rules of professional conduct unless waived by the board. 10

(e) The board requires that a minimum of 2 upper level semester credit hours in 11

accounting communications or business communications with an intensive writing 12

curriculum be completed. The semester hours may be obtained through a standalone 13

course or offered through an integrated approach. If the course content is offered 14

through integration, the university must advise the board of the course(s) that contain 15

the accounting communications or business communications content. The course may 16

be used toward the 24 semester credit hours of upper level business courses listed in 17

subsection (c)(5) of this section. 18

(f) Credit for hours taken at recognized institutions of higher education using the quarter 19

system shall be counted as 2/3 of a semester hour for each hour of credit received 20

under the quarter system. 21

(g) Related business courses completed through and offered by an extension school, 22

correspondence school or continuing education program of a board recognized 23

educational institution may be accepted by the board provided that the courses are 24

accepted for a business baccalaureate or higher degree conferred by that educational 25

institution. 26

(h) The board may review the content of business and ethics courses and determine if 27

they meet the requirements of this section. 28

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CHAPTER 511 ELIGIBILITY 1 SUBCHAPTER C EDUCATIONAL REQUIREMENTS 2 RULE §511.59 Definition of 150 Semester Hours 3

4

(a) To be eligible to take the UCPAE, an applicant must hold at a minimum a 5

baccalaureate degree, conferred by a board-recognized institution of higher 6

education as defined by §511.52 of this chapter (relating to Recognized 7

Institutions of Higher Education); and have completed board-recognized 8

coursework identified in this section: 9

(1) no fewer than 30 semester hours or quarter-hour equivalents of upper level 10

accounting courses as defined by §511.57 of this chapter (relating to Qualified 11

Accounting Courses); 12

(2) no fewer than 24 semester hours or quarter-hour equivalents of upper level 13

related business courses, as defined by §511.58 of this chapter (relating to 14

Definitions of Related Business Subjects and Ethics Courses); 15

(3) a 3-semester-hour board-approved ethics course as defined by §511.58 of 16

this chapter; and 17

(4) academic coursework at an institution of higher education as defined by 18

§511.52 of this chapter, when combined with paragraphs (1) – (3) of this 19

subsection, meets or exceeds 150 semester hours. A maximum of nine semester 20

hours from the following courses may be considered as academic coursework to 21

meet paragraph (4) of this subsection: 22

(A) 3-semester credit hours of undergraduate or graduate accounting 23

internship, as defined in §511.57 of this chapter if not used to meet paragraph (1) 24

of this subsection; 25

(B) 3-semester credit hours of independent study in accounting, §511.57 of 26

this chapter, if not used to meet paragraph (1) of this subsection; or 27

(C) 3-semester credit hours of undergraduate or graduate business 28

internship. 29

(b) An individual holding a baccalaureate degree conferred by a board-recognized 30

institution of higher education as defined by §511.52 of this chapter; and who has 31

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not completed the requirements of this section shall meet the requirements by 1

taking coursework in one of the following ways: 2

(1) complete upper level or graduate courses at a board recognized institution 3

of higher education as defined in §511.52 of this chapter that meets the 4

requirements of subsections (a)(1) – (3) of this section; or 5

(2) enroll in a board recognized community college as defined in §511.54 of this 6

chapter (relating to Recognized Texas Community Colleges) and complete board 7

approved accounting or business courses that meet the requirements of 8

subsections (a)(1) – (3) of this section. Only specified accounting and business 9

courses that are approved by the board will be accepted, not all courses offered 10

at a community college are accepted. 11

(3) The following courses, courses of study, certificates, and programs may not 12

be used to meet the 150-semester hour requirement: 13

(A) any CPA review course offered by an institution of higher education or 14

a proprietary organization; 15

(B) remedial or developmental courses offered at an educational 16

institution; and 17

(C) courses completed for a vocational certificate, career, or faith-based 18

program. 19

(4) The hours from a course that has been repeated will be counted only once 20

toward the required 150 semester hours. 21

(a) An individual holding at least a baccalaureate degree shall complete additional 22

academic courses to meet the board's 150 semester hours or quarter hour equivalents 23

of courses. The hours from a course that has been repeated will be counted only once 24

toward the required 150 semester hours, and may be earned in one of the following 25

ways: 26

(1) Complete a master's degree or higher degree conferred by an institution of higher 27

education that is recognized by the board; or 28

(2) Complete the upper level accounting courses needed to take the UCPAE as 29

defined in §511.57 of this chapter (relating to Qualified Accounting Courses). The hours 30

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required for a baccalaureate degree plus the additional hours must equal or exceed 150 1

semester hours; or 2

(3) Complete additional semester hours or quarter hour equivalents of upper level 3

courses that enhance professional skills and competence, beyond the accounting hours 4

required for a baccalaureate degree in accounting, from a university that is recognized 5

by the board. The hours required for a baccalaureate degree plus the additional hours 6

must equal or exceed 150 semester hours. The coursework should be in established 7

courses offered through colleges, i.e.: architecture, business administration, 8

communications, engineering, fine arts, liberal arts, science, or another established 9

discipline, within the university. 10

(b) Any CPA review course offered by an institution of higher education or a proprietary 11

organization shall not be used to meet the board's 150 semester hour requirement. 12

(c) An individual may use a three semester credit hour undergraduate business 13

internship and a three semester credit hour graduate business internship toward the 14

required 150 semester hours. 15

16

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CHAPTER 511 ELIGIBILITY 1 SUBCHAPTER C EDUCATIONAL REQUIREMENTS 2 RULE §511.60 Qualified Accounting Courses Prior to January 1, 2024 3

4

(a) An applicant shall meet the board's accounting course requirements in one of 5

the following ways: 6

(1) Hold a baccalaureate or higher degree from a board-recognized institution of 7

higher education as defined by §511.52 of this chapter (relating to Recognized 8

Institutions of Higher Education) and present valid transcript(s) from board-9

recognized institution(s) that show degree credit for no fewer than 30 semester 10

credit hours of upper division accounting courses as defined in subsection (e) of 11

this section; or 12

(2) Hold a baccalaureate or higher degree from a board-recognized institution of 13

higher education as defined by §511.52 of this chapter, and after obtaining the 14

degree, complete the requisite 30 semester credit hours of upper division 15

accounting courses, as defined in subsection (e) of this section, from four-year 16

degree granting institutions, or accredited community colleges, provided that all 17

such institutions are recognized by the board as defined by §511.52 of this 18

chapter, and that the accounting programs offered at the community colleges are 19

reviewed and accepted by the board. 20

(b) Credit for hours taken at board-recognized institutions of higher education 21

using the quarter system shall be counted as 2/3 of a semester credit hour for 22

each hour of credit received under the quarter system. 23

(c) The board will accept no fewer than 30 semester credit hours of accounting 24

courses from the courses listed in subsection (e)(1) - (15) of this section. The 25

hours from a course that has been repeated will be counted only once toward the 26

required 30 semester hours. The courses must meet the board's standards by 27

containing sufficient business knowledge and application to be useful to 28

candidates taking the UCPAE. A board-recognized institution of higher education 29

must have accepted the courses for purposes of obtaining a baccalaureate 30

degree or its equivalent, and they must be shown on an official transcript. 31

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(d) A non-traditionally-delivered course meeting the requirements of this section 1

must have been reviewed and approved through a formal, institutional faculty 2

review process that evaluates the course and its learning outcomes and 3

determines that the course does, in fact, have equivalent learning outcomes to an 4

equivalent, traditionally delivered course. 5

(e) The subject-matter content should be derived from the UCPAE Blueprints and 6

cover some or all of the following: 7

(1) financial accounting and reporting for business organizations that may 8

include: 9

(A) up to nine semester credit hours of intermediate accounting; 10

(B) advanced accounting; 11

(C) accounting theory; 12

(2) managerial or cost accounting (excluding introductory level courses); 13

(3) auditing and attestation services; 14

(4) internal accounting control and risk assessment; 15

(5) financial statement analysis; 16

(6) accounting research and analysis; 17

(7) up to 12 semester credit hours of taxation (including tax research and 18

analysis); 19

(8) financial accounting and reporting for governmental and/or other nonprofit 20

entities; 21

(9) up to 12 semester credit hours of accounting information systems, including 22

management information systems ("MIS"), provided the MIS courses are listed or 23

cross-listed as accounting courses, and the institution of higher education 24

accepts these courses as satisfying the accounting course requirements for 25

graduation with a degree in accounting; 26

(10) up to 12 semester credit hours of accounting data analytics, provided the 27

institution of higher education accepts these courses as satisfying the 28

accounting course requirements for graduation with a degree in accounting 29

(while data analytics tools may be taught in the courses, application of the tools 30

should be the primary objective of the courses); 31

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(11) fraud examination; 1

(12) international accounting and financial reporting; 2

(13) an accounting internship program (not to exceed three semester credit 3

hours) which meets the following requirements: 4

(A) the accounting knowledge gained is equal to or greater than the knowledge 5

gained in a traditional accounting classroom setting; 6

(B) the employing firm provides the faculty coordinator and the student with 7

the objectives to be met during the internship; 8

(C) the internship plan is approved in advance by the faculty coordinator; 9

(D) the employing firm provides significant accounting work experience with 10

adequate training and supervision of the work performed by the student; 11

(E) the employing firm provides an evaluation of the student at the conclusion 12

of the internship, provides a letter describing the duties performed and the 13

supervision to the student, and provides a copy of the documentation to the 14

faculty coordinator and the student; 15

(F) the student keeps a diary comprising a chronological list of all work 16

experience gained in the internship; 17

(G) the student writes a paper demonstrating the knowledge gained in the 18

internship; 19

(H) the student and/or faculty coordinator provides evidence of all items upon 20

request by the board; 21

(I) the internship course shall not be taken until a minimum of 12 semester 22

credit hours of upper division accounting course work has been completed; and 23

(J) the internship course shall be the equivalent of a traditional course; and 24

(14) at its discretion, the board may accept up to three semester hours of credit 25

of accounting course work with substantial merit in the context of a career in 26

public accounting, provided the course work is predominantly accounting or 27

auditing in nature but not included in paragraphs (1) - (12) of this subsection. For 28

any course submitted under this provision, the Accounting Faculty Head or Chair 29

must affirm to the board in writing the course's merit and content. 30

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(15) at its discretion, the board may accept up to three semester credit hours of 1

independent study in accounting selected or designed by the student under 2

faculty supervision. The curriculum for the course shall not repeat the curriculum 3

of another accounting course that the student has completed. 4

(f) The board requires that a minimum of two semester credit hours in research 5

and analysis relevant to the course content described in subsection (e)(6) or (7) 6

of this section be completed. The semester credit hours may be obtained through 7

a discrete course or offered through an integrated approach. If the course content 8

is offered through integration, the institution of higher education must advise the 9

board of the course(s) that contain the research and analysis content. 10

(g) The following types of introductory courses do not meet the accounting 11

course definition in subsection (e) of this section: 12

(1) elementary accounting; 13

(2) principles of accounting; 14

(3) financial and managerial accounting; 15

(4) introductory accounting courses; and 16

(5) accounting software courses. 17

(h) Any CPA review course offered by an institution of higher education or a 18

proprietary organization shall not be used to meet the accounting course 19

definition. 20

(i) CPE courses shall not be used to meet the accounting course definition. 21

(j) An ethics course required in §511.58(d) of this chapter (relating to Definitions 22

of Related Business Subjects and Ethics Courses) shall not be used to meet the 23

accounting course definition in subsection (e) of this section. 24

(k) Accounting courses completed through an extension school of a board 25

recognized educational institution may be accepted by the board provided that 26

the courses are accepted for a business baccalaureate or higher degree 27

conferred by that educational institution. 28

V-21

CHAPTER 511 ELIGIBILITY 1 SUBCHAPTER D CPA EXAMINATION 2 RULE §511.72 Uniform Examination 3

4 (a) The board shall contract with NASBA for the administration of the UCPAE, in 5

conjunction with the AICPA and a test vendor. The examination shall be offered as 6

determined by the AICPA, NASBA, and the testing vendor. The examination may be 7

offered at the following locations provided they are secure, approved and monitored by 8

the board or its designee and the testing vendor: 9

(1) at the board's office; and 10

(2) at testing facilities established by NASBA and the testing vendor. 11

(b) The board shall utilize the UCPAE available from the AICPA covering the following 12

sections until such time as the UCPAE is restructured by the AICPA: 13

(1) auditing and attestation; 14

(2) business environment and concepts; 15

(3) regulation; and 16

(4) financial accounting and reporting. 17

(c) If the UCPAE is restructured by the AICPA, the board shall utilize the UCPAE 18

available from the AICPA that tests the knowledge and skills required for performance 19

as a newly licensed certified public accountant. The examination shall include the 20

subject areas of accounting and auditing and related knowledge and skills as the board 21

may require. The board shall determine the manner in which credit for a subject is 22

integrated into the new structure. 23

(d) Effective January 1, 2024, the board shall utilize the UCPAE available from the 24

AICPA covering the following sections: 25

(1) auditing and attestation (AUD); 26

(2) business analysis and reporting (BAR); 27

(3) financial accounting and reporting (FAR); 28

(4) information systems and controls (ISC); 29

(5) tax or taxation and regulation (REG); and 30

(6) tax compliance and planning (TCP). 31

(e) (d) An applicant taking the examination is required to have in their possession the 32

Notice to Schedule form provided by NASBA, a government-issued form of identification 33

V-22

containing a photograph of the applicant, and a second form of identification such as a 1

board-issued form. 2

(f) (e) An applicant taking the examination shall sign a statement of confidentiality and 3

conduct which the applicant must follow during the entire examination. 4

V-23

CHAPTER 511 ELIGIBILITY 1 SUBCHAPTER D CPA EXAMINATION 2 RULE §511.80 Granting of Credit 3

4

(a) The board shall grant credit to an applicant for the satisfactory completion of a 5

section of the UCPAE provided the applicant earns a passing score on the section as 6

determined by board rule. The credit shall be valid for 18 months from the actual date of 7

notification of passing score results. 8

(b) An applicant must pass the remaining sections within the next 18 months. Should an 9

applicant's exam credit be invalidated due to the expiration of 18 months without 10

earning credit on the remaining sections, the applicant remains qualified to take the 11

examination. 12

(c) An applicant receiving and retaining credit for every section on the UCPAE, within an 13

18-month period, shall be considered by the board to have completed the examination 14

and may make application for certification as a CPA. 15

(d) Effective January 1, 2024, an applicant who has an active credit on a section 16

of the UCPAE shall have earned credit on the newly structured UCPAE as follows: 17

(1) credit on auditing and attestation (AUD) shall transition to auditing and 18

attestation (AUD); 19

(2) credit on financial accounting and reporting (FAR) shall transition to financial 20

accounting and reporting (FAR); 21

(3) credit on regulation (REG) shall transition to tax or taxation and regulation 22

(REG); and 23

(4) credit on business environment and concepts (BEC) shall not transition to a 24

specific discipline as there is not an equivalent section, however, credit will be 25

retained in lieu of a discipline. 26

(e) Effective January 1, 2024, the Board shall grant credit to an applicant for the 27

satisfactory completion of the following sections of the UCPAE provided the 28

applicant earns a passing score on the section as determined by board rule. The 29

credit shall be valid for 18 months from the actual date of notification of passing 30

score results. 31

(1) auditing and attestation (AUD); 32

V-24

(2) financial accounting and reporting (FAR); 1

(3) tax or taxation and regulation (REG); and 2

(4) one of the following discipline sections: 3

(A) business analysis and reporting (BAR); 4

(B) information systems and controls (ISC); or 5

(C) tax compliance and planning (TCP) 6

(f) (d) An applicant who has received and retained credit for any or all sections on the 7

UCPAE may transfer such credits to another licensing jurisdiction if the applicant pays 8

in advance a transfer fee set by board rule as identified in §521.7 of this title (relating to 9

Fee for Transfer of Credits). 10

(g) (e) If the UCPAE is restructured by the AICPA, the board shall determine the 11

manner in which active credit earned prior to the restructure for a subject is integrated 12

into the new UCPAE. 13

V-25

Agenda Item V Rules Committee Agenda

November 10, 2021 1:30 p.m.

B. Schedule next meeting.