State Codes and Statutes

State Codes and Statutes

Statutes > California > Bpc > 5080-5095

BUSINESS AND PROFESSIONS CODE
SECTION 5080-5095



5080.  The "certified public accountant" license shall be granted by
the board to any person who meets the requirements of this article,
has not committed acts or crimes constituting grounds for denial of a
license under Section 480, and files an application for licensure on
a form provided by the board.


5080.1.  The board may require an applicant for a certified public
accountant license to appear in person to determine if the applicant'
s qualifications are as prescribed in this chapter and in rules
adopted by the board.


5081.  An applicant for an authorization to be admitted to the
examination for a certified public accountant license shall:
   (a) Not have committed acts or crimes constituting grounds for
denial of a license under Section 480.
   (b) File the application prescribed by the board. This application
shall not be considered filed unless all required supporting
documents, fees, and the fully completed board-approved application
form are received in the board office or filed by mail in accordance
with Section 11003 of the Government Code on or before the specified
final filing date.
   (c) Meet one of the educational requirements specified in this
article.



5082.  An applicant for a certified public accountant license shall
have successfully passed an examination in subjects the board deems
appropriate, and in the form and manner that the board deems
appropriate. The board may, by regulation, prescribe the methods for
applying for and conducting the examination, including methods for
grading and determining a passing grade.



5082.1.  (a) The examination required by the board for the granting
of a license as a certified public accountant may be conducted by the
board or by a public or private organization specified by the board.
The examination may be conducted under a uniform examination system.
   (b) The board may make arrangements with a public or private
organization for the conduct of the examination, as deemed necessary
by the board. The board may contract with a public or private
organization for materials or services related to the examination.



5082.2.  A candidate who fails an examination provided for in this
article shall have the right to reexamination pursuant to the
provisions of this article and regulations adopted by the board.



5082.3.  An applicant for a license as a certified public accountant
may be deemed by the board to have met the examination requirements
of Section 5082, 5092, or 5093 if the applicant satisfies all of the
following requirements:
   (a) The applicant is licensed or has comparable authority under
the laws of any country to engage in the practice of public
accountancy.
   (b) The International Qualifications Appraisal Board jointly
established by the National Association of State Boards of
Accountancy and the American Institute of Certified Public
Accountants has determined that the standards under which the
applicant was licensed or under which the applicant secured
comparable authority meet its standards for admission to the
International Uniform Certified Public Accountant Qualification
Examination.
   (c) The applicant has successfully passed the International
Uniform Certified Public Accountant Qualification Examination
referenced in subdivision (b).



5082.4.  A Canadian Chartered Accountant in good standing may be
deemed by the board to have met the examination requirements of
Section 5082, 5092, or 5093 if he or she has successfully passed the
Canadian Chartered Accountant Uniform Certified Public Accountant
Qualification Examination of the American Institute of Certified
Public Accountants or the International Uniform Certified Public
Accountant Qualification Examination referenced in subdivision (b)
Section 5082.3.


5082.5.  The board may give credit to a candidate who has passed all
or part of the examination in another state or territory, if the
members of the board determine that the standards under which the
examination was held are as high as the standards established for
examination in this chapter.



5082.5.  The board may give credit to a candidate who has passed all
or part of the examination in another state or territory, if the
members of the board determine that the standards under which the
examination was held are as high as the standards established for the
examination in this chapter.



5086.  Individuals who, at the time of the enactment of this act,
hold certified public accountant licenses heretofore issued under the
laws of this state shall not be required to secure additional
licenses under this chapter, but shall otherwise be subject to all
the provisions of this act; and such licenses heretofore issued
shall, for all purposes, be considered licenses under this chapter
and subject to the provisions hereof.



5087.  (a) The board may issue a certified public accountant license
to any applicant who is a holder of a valid and unrevoked certified
public accountant license issued under the laws of any state, if the
board determines that the standards under which the applicant
received the license are substantially equivalent to the standards of
education, examination, and experience established under this
chapter and the applicant has not committed acts or crimes
constituting grounds for denial under Section 480. To be authorized
to sign reports on attest engagements, the applicant shall meet the
requirements of Section 5095.
   (b) The board may in particular cases waive any of the
requirements regarding the circumstances in which the various parts
of the examination were to be passed for an applicant from another
state.



5088.  (a) Any individual who is the holder of a current and valid
license as a certified public accountant issued under the laws of any
state and who applies to the board for a license as a certified
public accountant under the provisions of Section 5087 may, until the
time the application for a license is granted or denied, practice
public accountancy in this state only under a practice privilege
pursuant to the provisions of Article 5.1 (commencing with Section
5096), except that, for purposes of this section, the individual is
not disqualified from a practice privilege during the period the
application is pending by virtue of maintaining an office or
principal place of business, or both, in this state. The board may by
regulation provide for exemption, credit, or proration of fees to
avoid duplication of fees.
   (b) This section shall become operative on January 1, 2006.




5090.  An applicant for the certified public accountant license
shall comply with the education, examination, and experience
requirements in either Section 5092 or 5093.



5092.  (a) To qualify for the certified public accountant license,
an applicant who is applying under this section shall meet the
education, examination, and experience requirements specified in
subdivisions (b), (c), and (d), or otherwise prescribed pursuant to
this article. The board may adopt regulations as necessary to
implement this section.
   (b) An applicant for the certified public accountant license shall
present satisfactory evidence that the applicant has completed a
baccalaureate or higher degree conferred by a college or university,
meeting, at a minimum, the standards described in Section 5094, the
total educational program to include a minimum of 24 semester units
in accounting subjects and 24 semester units in business related
subjects. This evidence shall be provided prior to admission to the
examination for the certified public accountant license, except that
an applicant who applied, qualified, and sat for at least two
subjects of the examination for the certified public accountant
license before May 15, 2002, may provide this evidence at the time of
application for licensure.
   (c) An applicant for the certified public accountant license shall
pass an examination prescribed by the board pursuant to this
article.
   (d) The applicant shall show, to the satisfaction of the board,
that the applicant has had two years of qualifying experience. This
experience may include providing any type of service or advice
involving the use of accounting, attest, compilation, management
advisory, financial advisory, tax, or consulting skills. To be
qualifying under this section, experience shall have been performed
in accordance with applicable professional standards. Experience in
public accounting shall be completed under the supervision or in the
employ of a person licensed or otherwise having comparable authority
under the laws of any state or country to engage in the practice of
public accountancy. Experience in private or governmental accounting
or auditing shall be completed under the supervision of an individual
licensed by a state to engage in the practice of public accountancy.
   (e) This section shall become inoperative on January 1, 2014, but
shall become or remain operative if either the educational
requirements in ethics study and accounting study established by
subdivision (b) of Section 5094, Section 5094.5, and Section 5094.6
are reduced or eliminated or if the practice privilege requirements
of Sections 5096 to 5096.15, inclusive, are amended or repealed.
   (f) The amendment to Section 5096.12 made by the act adding this
subdivision shall not be deemed an amendment of that section for
purposes of subdivision (e).



5093.  (a) To qualify for the certified public accountant license,
an applicant who is applying under this section shall meet the
education, examination, and experience requirements specified in
subdivisions (b), (c), and (d), or otherwise prescribed pursuant to
this article. The board may adopt regulations as necessary to
implement this section.
   (b) (1) An applicant for admission to the certified public
accountant examination under the provisions of this section shall
present satisfactory evidence that the applicant has completed a
baccalaureate or higher degree conferred by a degree-granting
university, college, or other institution of learning accredited by a
regional or national accrediting agency included in a list of these
agencies published by the United States Secretary of Education under
the requirements of the Higher Education Act of 1965 as amended (20
U.S.C. Sec. 1001, et seq.), or meeting, at a minimum, the standards
described in subdivision (c) of Section 5094. The total educational
program shall include a minimum of 24 semester units in accounting
subjects and 24 semester units in business related subjects. This
evidence shall be provided at the time of application for admission
to the examination, except that an applicant who applied, qualified,
and sat for at least two subjects of the examination for the
certified public accountant license before May 15, 2002, may provide
this evidence at the time of application for licensure.
   (2) An applicant for issuance of the certified public accountant
license under the provisions of this section shall present
satisfactory evidence that the applicant has completed at least 150
semester units of college education including a baccalaureate or
higher degree conferred by a college or university, meeting, at a
minimum, the standards described in Section 5094, the total
educational program to include the units described in subdivision (b)
of Section 5094 and a minimum of 24 semester units in accounting
subjects and 24 semester units in business related subjects. This
evidence shall be presented at the time of application for the
certified public accountant license. Nothing herein shall be deemed
inconsistent with Section 5094 or 5094.6.
   (c) An applicant for the certified public accountant license shall
pass an examination prescribed by the board.
   (d) The applicant shall show, to the satisfaction of the board,
that the applicant has had one year of qualifying experience. This
experience may include providing any type of service or advice
involving the use of accounting, attest, compilation, management
advisory, financial advisory, tax or consulting skills. To be
qualifying under this section, experience shall have been performed
in accordance with applicable professional standards. Experience in
public accounting shall be completed under the supervision or in the
employ of a person licensed or otherwise having comparable authority
under the laws of any state or country to engage in the practice of
public accountancy. Experience in private or governmental accounting
or auditing shall be completed under the supervision of an individual
licensed by a state to engage in the practice of public accountancy.
   (e) Applicants completing education at a college or university
located outside of this state, meeting, at a minimum, the standards
described in Section 5094, shall be deemed to meet the educational
requirements of this section if the board determines that the
education is substantially equivalent to the standards of education
specified under this chapter.


5094.  (a) In order for education to be qualifying, it shall meet
the standards described in subdivision (b) or (c) of this section.
   (b) At a minimum, education must be from a degree-granting
university, college, or other institution of learning accredited by a
regional or national accrediting agency included in a list of these
agencies published by the United States Secretary of Education under
the requirements of the Higher Education Act of 1965 as amended (20
U.S.C. Sec. 1001, et seq.) and, after January 1, 2014, shall also, at
minimum, include 10 units of ethics study consistent with the
regulations promulgated pursuant to subdivision (b) of Section 5094.6
and 20 units of accounting study consistent with the regulations
promulgated under subdivision (c) of Section 5094.6. The Accounting
Education Advisory Committee established under Section 5094.5 may
determine that a course or a portion of a course satisfies the ethics
study requirement. Nothing herein shall be deemed inconsistent with
prevailing academic practice regarding the completion of units.
   (c) Education from a college, university, or other institution of
learning located outside the United States may be qualifying provided
it is deemed by the board to be equivalent to education obtained
under subdivision (b). The board may require an applicant to submit
documentation of his or her education to a credential evaluation
service approved by the board for evaluation and to cause the results
of this evaluation to be reported to the board in order to assess
educational equivalency.
   (d) The board shall adopt regulations specifying the criteria and
procedures for approval of credential evaluation services. These
regulations shall, at a minimum, require that the credential
evaluation service (1) furnish evaluations directly to the board, (2)
furnish evaluations written in English, (3) be a member of the
American Association of Collegiate Registrars and Admission Officers,
the National Association of Foreign Student Affairs, or the National
Association of Credential Evaluation Services, (4) be used by
accredited colleges and universities, (5) be reevaluated by the board
every five years, (6) maintain a complete set of reference materials
as specified by the board, (7) base evaluations only upon authentic,
original transcripts and degrees and have a written procedure for
identifying fraudulent transcripts, (8) include in the evaluation
report, for each degree held by the applicant, the equivalent degree
offered in the United States, the date the degree was granted, the
institution granting the degree, an English translation of the course
titles, and the semester unit equivalence for each of the courses,
(9) have an appeal procedure for applicants, and (10) furnish the
board with information concerning the credential evaluation service
that includes biographical information on evaluators and translators,
three letters of references from public or private agencies,
statistical information on the number of applications processed
annually for the past five years, and any additional information the
board may require in order to ascertain that the credential
evaluation service meets the standards set forth in this subdivision
and in any regulations adopted by the board.




5094.5.  (a) There is hereby created within the jurisdiction of the
board the Advisory Committee on Accounting Ethics Curriculum. For
purposes of this section, "committee" means the advisory committee
established under this section.
   (b) The committee shall consist of the following 11 members:
   (1) One member appointed by the California Public Employees
Retirement System.
   (2) Two members appointed by the Regents of the University of
California. These members shall be professors of business ethics or
accounting who have published works on the desirability and potential
contents of accounting ethics education.
   (3) Two members appointed by the California State University Board
of Trustees. These members shall be professors of business ethics or
accounting who have published works on the desirability and
potential contents of accounting ethics education.
   (4) Two members representing the California Community Colleges
appointed by the Board of Governors of the California Community
Colleges. These members shall be instructors of business ethics or
accounting.
   (5) The Senate Committee on Rules, the Speaker of the Assembly,
and the board shall each appoint one member. The members appointed by
the Senate Committee on Rules and the Speaker of the Assembly shall
be from organized labor or consumer advocacy organizations.
   (6) The Governor shall appoint one California certified public
accountant in public practice from a list provided by the California
Society of Certified Public Accountants.
   (c) The term of a member of the committee shall be at the pleasure
of the appointing authority.
   (d) The committee shall be subject to the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1 of Division 3 of Title 2 of the Government Code).
   (e) (1) This section shall become inoperative on the later of the
following:
   (A) January 1, 2014.
   (B) The day following the date on which the committee issues the
final report required under subdivision (b) of Section 5094.6.
   (2) This section shall be repealed on the later of the following:
   (A) January 1, 2014.
   (B) January 1 following the date described in subparagraph (B) of
paragraph (1).


5094.6.  (a) No later than June 1, 2012, the committee shall
recommend to the board ethics study guidelines consisting of no less
than 10 semester units to be included as a part of the education
required under Section 5093. Ethics study may consist of academic
courses, portions of courses, or independent study offered by
degree-granting universities, colleges, or other institutions of
learning accredited by a regional or national accrediting agency.
Nothing herein shall be deemed inconsistent with prevailing academic
practice regarding completion of units.
   (b) No later than January 31, 2013, the board shall adopt, by
regulation, the ethics study recommendations made by the committee
pursuant to subdivision (a) without substantive changes. The
committee shall issue a report during the public comment period and,
no later than 30 days after the regulations are final, shall offer an
opinion as to whether the regulations will implement its
recommendations.
   (c) The board shall, no later than January 1, 2012, by regulation,
adopt guidelines for accounting study to be included as part of the
education required under Section 5093. In promulgating these
regulations, the board shall consider the views of the Accounting
Education Advisory Committee established under Section 5094.7.
   (d) No later than six months following the issuance of the report
by the California Research Bureau regarding the Uniform Accountancy
Act's 150-hour rule, the board shall hold a hearing on the report. At
the hearing, the board shall make recommendations, based on that
report, to the National Association of State Boards of Accountancy
and the American Institute of Certified Public Accountants for
ensuring the relevancy of accountancy education to the modern
practice of accounting and shall approve a plan for the board to seek
the adoption of those recommendations and any others the board may
recommend related to enforcement and Internet disclosure.
   (e) For purposes of this section, the following definitions shall
apply:
   (1) Except as provided in subdivision (c), "committee" means the
Advisory Committee on Accounting Ethics Curriculum established under
Section 5094.5.
   (2) "Ethics study guidelines" means the guidelines for the study
of ethics adopted for California by the committee and the board
consisting of a program of learning that provides students with a
framework of ethical reasoning, professional values, and attitudes
for exercising professional skepticism and other behavior that is in
the best interest of the investing and consuming public and the
profession. At minimum, it includes academic work or independent
study and shall include a foundation for ethical reasoning and the
core values of integrity, objectivity, and independence consistent
with the International Education Standards-4 of the International
Accountants Education Standards Board, the International Federation
of Accountants Code of Ethics, and the American Institute of
Certified Public Accountants Code of Professional Conduct.
   (3) "Accounting study" means independent study or other academic
work in accounting, business, ethics, business law, or other academic
work relevant to accounting and business, so as to enhance the
competency of students as practitioners.


5094.7.  (a) There is hereby created within the jurisdiction of the
board an Accounting Education Advisory Committee for the purposes of
subdivision (c) of Section 5094.6. The members of this committee
shall be appointed by the board and shall be experts in accounting
education. The committee shall be subject to the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1 of Division 3 of Title 2 of the Government Code).
   (b) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.



5095.  (a) To be authorized to sign reports on attest engagements, a
licensee shall complete a minimum of 500 hours of experience,
satisfactory to the board, in attest services.
   (b) To be qualifying under this section, attest experience shall
have been performed in accordance with applicable professional
standards. Experience in public accounting shall be completed under
the supervision or in the employ of a person licensed or otherwise
having comparable authority under the laws of any state or country to
engage in the practice of public accountancy and provide attest
services, and this experience shall be verified. Experience in
private or governmental accounting or auditing shall be completed
under the supervision of an individual licensed by a state to engage
in the practice of public accountancy and perform attest services,
and this experience shall be verified. An applicant may be required
to present work papers or other evidence substantiating that the
applicant has met the requirements of this section and applicable
regulations.
   (c) An individual who qualified for licensure by meeting the
requirements of Section 5083 shall be deemed to have satisfied the
requirements of this section.
   (d) The board shall adopt regulations to implement this section,
including, but not limited to, a procedure for applicants under
Section 5092 or Section 5093 to qualify under this section.



5095.  (a) To be authorized to sign reports on attest engagements, a
licensee shall complete a minimum of 500 hours of experience,
satisfactory to the board, in attest services.
   (b) To qualify under this section, attest experience shall have
been performed in accordance with applicable professional standards.
Experience in public accounting shall be completed under the
supervision or in the employ of a person licensed or otherwise having
comparable authority under the laws of any state or country to
engage in the practice of public accountancy and provide attest
services, and this experience shall be verified. Experience in
private or governmental accounting or auditing shall be completed
under the supervision of an individual licensed by a state to engage
in the practice of public accountancy and perform attest services,
and this experience shall be verified. An applicant may be required
to present work papers or other evidence substantiating that the
applicant has met the requirements of this section and any applicable
regulations.
   (c) An individual who qualified for licensure by meeting the
requirements of Section 5083 shall be deemed to have satisfied the
requirements of this section.
   (d) The board shall adopt regulations to implement this section,
including, but not limited to, a procedure for applicants under
Section 5092 or Section 5093 to qualify under this section.