ACCOUNTANCY RULES AND REGULATIONS
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Code of Colorado Regulations › 700 Department of Regulatory Agencies › 705 Division of Professions and Occupations - Board of Accountancy › 3 CCR 705-1
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DEPARTMENT OF REGULATORY AGENCIES
State Board of Accountancy
ACCOUNTANCY RULES AND REGULATIONS
3 CCR 705-1
[Editor’s Notes follow the text of the rules at the end of this CCR Document.]
_________________________________________________________________________
1.1
AUTHORITY
These rules and regulations are adopted pursuant to the authority in sections 12-20-204 and 12-100-
105(1)(b), C.R.S., and are intended to be consistent with the requirements of the State Administrative
Procedures Act, section 24-4-101 et seq. (the “APA”), C.R.S., and the Accountancy Practice Act, sections
12-100-101 et seq. (the “Practice Act”), C.R.S.
1.2
SCOPE AND PURPOSE
These regulations shall govern the process to become a certified public accountant and the practice of
accountancy in Colorado.
1.3
APPLICABILITY
The provisions of these regulations shall be applicable to the practice of accountancy in Colorado.
1.4
BOARD ORGANIZATION AND ADMINISTRATION
This Rule is promulgated pursuant to sections 12-20-204 and 12-100-105(1)(b), C.R.S.
A.
ACRONYMS
1.
AICE
Association of International Credential Evaluators
2.
AICPA American Institute of Certified Public Accountants
3.
CPA
Certified Public Accountant
4.
CPE
Continuing Professional Education
5.
CR&R Colorado Rules and Regulations. Also see Rule 1.4(B)
6.
C.R.S. Colorado Revised Statutes
7.
FASB Financial Accounting Standards Board
8.
GASB Governmental Accounting Standards Board
9.
GAAP Generally accepted accounting principles
10.
GAAS Generally accepted auditing standards
Code of Colorado Regulations
Secretary of State
State of Colorado
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es and Regulations. Also see Rule 1.4(B)
6.
C.R.S. Colorado Revised Statutes
7.
FASB Financial Accounting Standards Board
8.
GASB Governmental Accounting Standards Board
9.
GAAP Generally accepted accounting principles
10.
GAAS Generally accepted auditing standards
Code of Colorado Regulations
Secretary of State
State of Colorado
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11.
IRS
Internal Revenue Service
12.
IQAB
International Qualifications Appraisal Board
13.
MRA
Mutual Recognition Agreement
14.
NACES National Association of Credential Evaluation Services
15.
NASBA The National Association of State Boards of Accountancy
16.
NIES
NASBA’s International Evaluation Services
17.
PCAOB Public Company Accounting Oversight Board
18.
SEC
Securities and Exchange Commission
B.
ABBREVIATIONS AND DEFINITIONS
Except as otherwise provided, words and phrases capitalized in these Rules are defined in this Rule 1.4.
In addition to the definitions found in section 12-100-103, C.R.S., the following apply:
1.
Act
Title 12, Article 100 of the Colorado Revised Statutes (sections 12-100-101 through 12-
100-130, C.R.S.)
2.
Active/Valid
The status of a licensee’s certificate, license, or registration, or other authority allowing
the licensee to assume or use the CPA designation and to offer or perform any service
for which an active certificate of CPA or active or valid registration is required pursuant to
sections 12-100-112(3) and 12-100-116(1), C.R.S.
3.
AICPA Ethics Examination
Pursuant to section 12-100-108(1)(b), C.R.S., the professional ethics course and
examination means Professional Ethics: The American Institute of Certified Public
Accountants Comprehensive Course (for Licensure) or a subsequent course of study
concerning the subject of professional ethics and the related examination prepared and
administered by the AICPA.
4.
AICPA Code of Professional Conduct
The Code of Professional Conduct issued by the AICPA in the “AICPA Professional
Standards” incorporated herein by reference in Rule 1.4(C)
nstitute of Certified Public
Accountants Comprehensive Course (for Licensure) or a subsequent course of study
concerning the subject of professional ethics and the related examination prepared and
administered by the AICPA.
4.
AICPA Code of Professional Conduct
The Code of Professional Conduct issued by the AICPA in the “AICPA Professional
Standards” incorporated herein by reference in Rule 1.4(C).
5.
AICPA Professional Standards
The AICPA Professional Standards issued by the AICPA and incorporated herein by
reference in Rule 1.4(C).
6.
Applicant
An applicant is an individual who submits an application for an initial, renewal, reinstated,
reactivated, retired, or inactive certificate.
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7.
Baccalaureate Degree
A degree conferred by an accredited college or university..
8.
Candidate
An individual who submits an application to sit for the examination.
9.
Certificate
A certificate of Certified Public Accountant.
10.
Certificate Holder
An individual granted a Colorado certificate pursuant to the requirements in Article 100 of
Title 12, C.R.S.
11.
Client
An individual or entity that agrees with a licensee to receive any professional service.
12.
CPE
Continuing professional education as required and described in section 12-100-115,
C.R.S., and Rule 1.10 of these Rules.
13.
CPE Reporting Period
A two-year period from January 1 of an even-numbered year through December 31 of an
odd-numbered year during which the certificate holder must complete CPE.
14.
CR&R
CPE covering sections 12-100-101 through 130 and 13-90-107(1)(f), C.R.S., and the
Rules and Policies of the Board as provided in Rule 1.10(H).
15.
Ethics CPE
CPE concerning professional ethical behavior in regulatory ethics or behavioral ethics as
defined by the fields of study.
16.
Examination
The Uniform CPA Examination.
17.
Expired
The status of a certificate holder’s certificate or firm’s registration following a failure to
renew the certificate or registration by the expiration date.
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cies of the Board as provided in Rule 1.10(H).
15.
Ethics CPE
CPE concerning professional ethical behavior in regulatory ethics or behavioral ethics as
defined by the fields of study.
16.
Examination
The Uniform CPA Examination.
17.
Expired
The status of a certificate holder’s certificate or firm’s registration following a failure to
renew the certificate or registration by the expiration date.
18.
Fields of Study
The NASBA CPE Fields of Study, incorporated herein by reference in Rule 1.4(C).
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19.
Financial Statements
Statements and related disclosures that purport to show an actual or anticipated financial
position that relates to a point in time, or results of operations, cash flow, or changes in
financial position that relate to a period of time, on the basis of U.S. GAAP or another
comprehensive basis of accounting. The term includes specific elements, accounts, or
items of such statements, but does not include incidental financial data included in
management advisory services reports to support recommendations to a client, nor does
it include tax returns and supporting schedules.
20.
Firm
A business entity composed of one or more CPAs engaged in the practice of public
accounting as a domestic or foreign partnership, professional corporation, or limited
liability company; “partnership” means any form of partnership, including a registered
limited partnership, limited liability partnership, and limited liability limited partnership.
21.
Holding Out
Any activity by an individual or entity that informs or implies or tends to indicate to others
an active/valid status as a CPA or Firm. This includes, but is not limited to, any oral or
written representation, such as business cards or letterhead, resumes, biographies, the
display of a certificate evidencing a CPA designation, or the listing as a CPA or Firm in
directories or on the internet
g Out
Any activity by an individual or entity that informs or implies or tends to indicate to others
an active/valid status as a CPA or Firm. This includes, but is not limited to, any oral or
written representation, such as business cards or letterhead, resumes, biographies, the
display of a certificate evidencing a CPA designation, or the listing as a CPA or Firm in
directories or on the internet. “Activity” includes any continuing representation caused or
used by an individual or entity, including but not limited to, any oral or written
representation, such as signage, directories, or the Internet.
22.
Inactive
The status of a certificate upon transfer of that certificate to the inactive list.
23.
Individual
A natural person.
24.
Joint Standards
The Joint AICPA/NASBA Statement on Standards for Continuing Professional Education
(CPE) Programs jointly issued by the AICPA and NASBA.
25.
Licensee
An individual or firm authorized to hold out and offer and provide services as a CPA(s)
under the Act as a certificate holder, registrant, or through mobility/practice privilege.
26.
Mobility/Practice Privilege
The privilege for a CPA or firm to practice accounting in this state pursuant to section 12-
100-117(2), C.R.S., and Rule 1.14.
27.
Network
An association of two or more entities that includes at least one CPA firm that:
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a.
Cooperates pursuant to an agreement for the purpose of enhancing the
association members’ capabilities to provide professional services; and
b.
Shares one or more of the following characteristics:
(1)
Shares the use of a common brand name or shares common initials as
part of the firm name;
(2)
Shares common control among the members through ownership,
management, or other means;
(3)
Shares profits or costs, excluding costs of operating the association,
costs of developing audit methodologies, manuals, training courses, and
other costs immaterial to the members;
he following characteristics:
(1)
Shares the use of a common brand name or shares common initials as
part of the firm name;
(2)
Shares common control among the members through ownership,
management, or other means;
(3)
Shares profits or costs, excluding costs of operating the association,
costs of developing audit methodologies, manuals, training courses, and
other costs immaterial to the members;
(4)
Shares a common business strategy that involves ongoing collaboration
among the members whereby the members are responsible for
implementing the association’s strategy and are held accountable for
performance pursuant to that strategy;
(5)
Shares a significant part of professional resources, including but not
limited to: common systems that enable members to exchange
information, such as client data, billing, and time records; partners and
staff are drawn from a shared pool; or technical departments to consult
on technical or industry specific issues, transactions, or events for
assurance engagements that the members are required to follow;
(6)
Members are required to follow common quality control policies and
procedures, and compliance is monitored by the association.
28.
Network Firm
A network firm is a firm or other entity that belongs to a network as defined in Rule
1.4(B)(29). This includes any entity (including another firm) that the network firm, by itself
or through one or more of its owners, controls (as defined in FASB ASC 810), is
controlled by, or is under common control with.
29.
Owner
A shareholder of a corporation, a member of a limited liability company, a partner of a
partnership, or any other person having an interest in any entity that is functionally
equivalent to an owner's interest.
30.
Peer Review Oversight Committee
A committee established by the Board to oversee the peer review requirement.
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ASB ASC 810), is
controlled by, or is under common control with.
29.
Owner
A shareholder of a corporation, a member of a limited liability company, a partner of a
partnership, or any other person having an interest in any entity that is functionally
equivalent to an owner's interest.
30.
Peer Review Oversight Committee
A committee established by the Board to oversee the peer review requirement.
31.
Peer Review Program
A sponsoring organization’s entire peer review process, including, but not limited to, the
standards for administering, performing, and reporting on peer reviews, oversight
procedures, training, and related guidance materials.
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32.
Peer Review Reports
Reports issued by the peer reviewer/reviewing firm in accordance with the Board-
approved peer review standards.
33.
Peer Review Standards
Board-approved professional standards for administering, performing, and reporting on
peer reviews.
34.
Peer Reviewer/Reviewing Firm
A licensee responsible for conducting a peer review.
35.
Practice of Public Accounting
Performing for a client or offering to perform for a client or potential client, one or more
kinds, or any combination of services involving the use of accounting or attestation skills,
including, but not limited to, issuance of reports on financial statements, or of one or more
types of management advisory or consulting services, or the preparation of tax returns, or
the furnishing of tax advice.
36.
Practice Privilege/Mobility
The privilege for a CPA or Firm to practice accounting in this state pursuant to section 12-
100-117(2), C.R.S., and Rule 1.14.
37.
Professional Business
For the purposes of section 12-100-117(2), C.R.S., and these Rules, practicing in this
state on “professional business” means that a CPA or foreign equivalent whose principle
place of business is located in another state or jurisdiction is providing professional
services in this state.
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accounting in this state pursuant to section 12-
100-117(2), C.R.S., and Rule 1.14.
37.
Professional Business
For the purposes of section 12-100-117(2), C.R.S., and these Rules, practicing in this
state on “professional business” means that a CPA or foreign equivalent whose principle
place of business is located in another state or jurisdiction is providing professional
services in this state.
38.
Professional Services
Any service performed or offered to be performed by a licensee while holding out.
39.
Reactivation
The process by which an inactive or retired status certificate is returned to active status.
40.
Registrant
A firm that has been granted registration pursuant to the Act.
41.
Reinstatement
The process by which a certificate that has expired is returned to active, inactive, or
retired status or by which a firm registration that has expired is returned to active/valid
status.
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42.
Renewal
The process to retain a certificate in active, inactive, or retired status, and to retain a firm
registration in active/valid status in accordance with a schedule established by the
Division of Professions and Occupations.
43.
Report Acceptance Body
A sponsoring organization’s committee responsible for the acceptance of peer review
documents.
44.
Responsible Party
The firm partner, shareholder, or member designated to notify the Board of changes to
the firm pursuant to section 12-100-114(2)(a)(III), C.R.S.
45.
Retired
The status of a certificate following the Board’s approval of a certificate holder’s
application to transfer the certificate status to retired.
46.
Sponsoring Organization
A Board-approved professional society or other organization responsible for the
facilitation and administration of peer reviews through use of its peer review program and
peer review standards.
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(2)(a)(III), C.R.S.
45.
Retired
The status of a certificate following the Board’s approval of a certificate holder’s
application to transfer the certificate status to retired.
46.
Sponsoring Organization
A Board-approved professional society or other organization responsible for the
facilitation and administration of peer reviews through use of its peer review program and
peer review standards.
47.
Substantial Equivalency
A determination by the Board or its designee that the education, examination, and
experience requirements contained in the statutes and administrative rules of another
jurisdiction are comparable to or exceed the education, examination, and experience
requirements contained in the AICPA/NASBA Uniform Accountancy Act (UAA) or that an
individual CPA’s education, examination, and experience qualifications are comparable to
or exceed the requirements contained in the UAA.
48.
U.S. GAAP
Generally accepted accounting principles as contained in the AICPA Professional
Standards incorporated by reference in Rule 1.4(C).
49.
U.S. GAAS
Generally accepted auditing standards as contained in the AICPA Professional
Standards incorporated by reference in Rule 1.4(C).
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C.
INCORPORATION BY REFERENCE
The materials listed in this Rule 1.4(C) are incorporated by reference. These Rules do not include later
amendments to or editions of the materials incorporated by reference in this Rule 1.4(C). (Note, however,
that pursuant to law, licensees will be held to the requirements in those editions that were in effect at the
time of the conduct at issue.) If a Rule of the State Board of Accountancy is inconsistent or otherwise
differs from the materials incorporated by reference herein, the Rule of the State Board of Accountancy
governs
e materials incorporated by reference in this Rule 1.4(C). (Note, however,
that pursuant to law, licensees will be held to the requirements in those editions that were in effect at the
time of the conduct at issue.) If a Rule of the State Board of Accountancy is inconsistent or otherwise
differs from the materials incorporated by reference herein, the Rule of the State Board of Accountancy
governs. Copies of these materials are available for public inspection during regular business hours at the
Board’s Office at 1560 Broadway, Suite 1350, Denver, Colorado, 80202 and at the Colorado State
Publications Library or at the specific addresses and websites provided below. For information on
obtaining or examining these materials, contact the Board’s Office at 1560 Broadway, Suite 1350,
Denver, Colorado, 80202 or via email at dora_accountancy@state.co.us
1.
AICPA Code of Professional Conduct
The Code of Professional Conduct issued by the AICPA in the “AICPA Professional
Standards,” effective December 15, 2014. These materials may also be obtained at
AICPA.org or AICPA, 220 Leigh Farm Road, Durham, North Carolina 27707-8110.
2.
AICPA Professional Standards
The AICPA Professional Standards, effective June 15, 2024, issued by the AICPA. These
materials may also be obtained at AICPA.org or AICPA, 220 Leigh Farm Road, Durham,
North Carolina 27707-8110.
3.
Fields of Study
The NASBA CPE Fields of Study, effective January 1, 2024, and available at
https://www.nasbaregistry.org/registry-forms--policies/fields-of-study or NASBA, 150
Fourth Ave. North, Ste. 700, Nashville, TN, 37219-2417.
4.
Joint Standards
The Joint AICPA/NASBA Statement on Standards for Continuing Professional Education
(CPE) Programs jointly issued by the AICPA and NASBA, effective January 1, 2024, and
available at or at https://www.nasbaregistry.org/the-standards or NASBA, 150 Fourth
Ave. North, Ste. 700, Nashville, TN, 37219-2417.
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of-study or NASBA, 150
Fourth Ave. North, Ste. 700, Nashville, TN, 37219-2417.
4.
Joint Standards
The Joint AICPA/NASBA Statement on Standards for Continuing Professional Education
(CPE) Programs jointly issued by the AICPA and NASBA, effective January 1, 2024, and
available at or at https://www.nasbaregistry.org/the-standards or NASBA, 150 Fourth
Ave. North, Ste. 700, Nashville, TN, 37219-2417.
5.
Statements of governmental accounting standards
The statements of governmental accounting standards issued as of the effective dates of
these Rules and available at www.gasb.org or NASBA, 150 Fourth Ave. North, Ste. 700,
Nashville, TN, 37219-2417.
6.
FASB Accounting Standards Codification
The FASB Accounting Standards Codification issued as of the effective date of these
Rules and available at www.fasb.org or NASBA, 150 Fourth Ave. North, Ste. 700,
Nashville, TN, 37219-2417.
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7.
Government Auditing Standards, December 2011 Revision
The Government Auditing Standards, effective February 1, 2024, issued by the U.S.
Governmental Accountability Office and available at www.gao.gov/yellowbook or U.S.
Government Publishing Office, 732 North Capitol Street, NW, Washington, DC 20401-
0001.
8.
Securities and Exchange Commission
a.
SEC Final Rules, issued as of the effective date of these Rules, available at
www.sec.gov/rules/final.shtml or 100 F Street, NE, Washington, DC 20549.
b.
SEC Concept Releases, issued as of the effective date of these Rules, available
at www.sec.gov/rules/concept.shtml or 100 F Street, NE, Washington, DC 20549.
c.
SEC Interpretive Releases, issued as of the effective date of these Rules,
available at www.sec.gov/rules/interp.shtml or 100 F Street, NE, Washington, DC
20549.
d.
SEC Policy Statements, issued as of the effective date of these Rules available
at www.sec.gov/rules/policy.shtml or 100 F Street, NE, Washington, DC 20549.
9.
Circular 230 Tax Professionals – (Rev
Street, NE, Washington, DC 20549.
c.
SEC Interpretive Releases, issued as of the effective date of these Rules,
available at www.sec.gov/rules/interp.shtml or 100 F Street, NE, Washington, DC
20549.
d.
SEC Policy Statements, issued as of the effective date of these Rules available
at www.sec.gov/rules/policy.shtml or 100 F Street, NE, Washington, DC 20549.
9.
Circular 230 Tax Professionals – (Rev. 6-2014)
Circular 230, Catalog Number 16586R, published June 12, 2014, available at
www.irs.gov/Tax-Professionals/Circular-230-Tax-Professionals or IRS Denver Office,
1999 Broadway, Denver, CO 80202.
10.
Part 9904 - Cost Accounting Standards
The standards of the Cost Accounting Standards Board (CASB) codified in Title 48,
Chapter 99: Federal Acquisition Regulations System at Part 9904 – Cost Accounting
Standards, available at https://www.govinfo.gov/app/collection/cfr/2024/, or The Office of
Management and Budget 725 17th Street, NW Washington, DC 20503.
11.
The FASAB Handbook of Accounting Standards and Other Pronouncements, As
Amended
The FASAB Handbook of Accounting Standards and Other Pronouncements, As
Amended as of June 30, 2024, available at http://www.fasab.gov/accounting-standards or
FASAB, 441 G Street, NW, Suite 1155, Washington, DC 20548.
1.5
EDUCATION REQUIREMENTS FOR EXAMINATION AND CERTIFICATION
This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), 12-100-108, 12-100-109,
and 12-100-110, C.R.S.
A.
GENERAL INFORMATION
1.
Conversion of quarter hours to semester hours. For purposes of these Rules, four quarter
hours equals three semester hours.
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.5
EDUCATION REQUIREMENTS FOR EXAMINATION AND CERTIFICATION
This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), 12-100-108, 12-100-109,
and 12-100-110, C.R.S.
A.
GENERAL INFORMATION
1.
Conversion of quarter hours to semester hours. For purposes of these Rules, four quarter
hours equals three semester hours.
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2.
Transcripts. The applicant's claim to college or university credits for eligibility for
examination and certification must be confirmed by an official transcript of credit
forwarded by the institution to the Board's office or its designee. However, the Board may
accept an official transcript from the applicant if the transcript is provided in an official
envelope sealed by the granting institution.
3.
The Board will not issue a certificate to an applicant who has not satisfied the
requirements of Rule 1.5(E).
4.
The Board or its designee will not consider or review an incomplete application.
5.
Any application that is not complete within one year of the receipt date will expire and be
destroyed. The applicant must submit a new application along with all required
information and fees.
6.
“College or university” for purposes of these Rules means an institution of higher
education that:
a.
Requires a high school diploma or equivalent as a condition of entry;
b.
Delivers postsecondary education; and
c.
Offers a degree that would be recognized by, or coursework that would be
accepted for transfer by, an Accredited Baccalaureate Granting College as
defined in Rule 1.5(B).
B.
COLLEGE OR UNIVERSITY ACCREDITATION
1.
“Accredited Baccalaureate Granting College” for the purposes of these Rules means a
college or university: (1) that is deemed accredited under sections 12-100-103(1) and 12-
100-108(1), C.R.S., that offers a Baccalaureate Degree or higher degree.
2.
Baccalaureate Degree
or transfer by, an Accredited Baccalaureate Granting College as
defined in Rule 1.5(B).
B.
COLLEGE OR UNIVERSITY ACCREDITATION
1.
“Accredited Baccalaureate Granting College” for the purposes of these Rules means a
college or university: (1) that is deemed accredited under sections 12-100-103(1) and 12-
100-108(1), C.R.S., that offers a Baccalaureate Degree or higher degree.
2.
Baccalaureate Degree. The Board may deem a Baccalaureate Degree or higher degree
obtained from a non-accredited college or university as conferred by an Accredited
Baccalaureate Granting College if the applicant demonstrates that the degree would be
unconditionally accepted into a graduate program at an Accredited Baccalaureate
Granting College.
3.
Coursework. The Board may deem coursework obtained from a non-accredited college
or university as obtained from an Accredited Baccalaureate Granting College if the
applicant demonstrates that the coursework would be acceptable for credit towards a
Baccalaureate Degree or higher degree at an Accredited Baccalaureate Granting
College.
4.
The Board may require that an applicant submit the transcript to a generally recognized
academic credential evaluation service for assistance in evaluating whether:
a.
A degree would be unconditionally accepted into a graduate program at an
Accredited Baccalaureate Granting College;
b.
Coursework obtained from a non-accredited college or university would be
acceptable for credit towards a Baccalaureate Degree or higher degree at an
Accredited Baccalaureate Granting College;
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aluating whether:
a.
A degree would be unconditionally accepted into a graduate program at an
Accredited Baccalaureate Granting College;
b.
Coursework obtained from a non-accredited college or university would be
acceptable for credit towards a Baccalaureate Degree or higher degree at an
Accredited Baccalaureate Granting College;
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c.
An accounting program satisfies the requirements for program approval under
section 12-100-110, C.R.S.;
d.
Coursework is, or is equivalent to, a concentration in accounting;
e.
A degree conferred by a non-accredited college or university meets the definition
of Baccalaureate Degree; and
f.
The education otherwise satisfies the requirements of the Act and these Rules.
5.
The Board will not accept an evaluation described in paragraph (4) of this Rule 1.5(B)
unless it is prepared by NIES or an evaluation service that is a member of NACES, AICE,
or another similar organization approved by the Board, or any other entity approved by
the Board. The Board is not required to accept the results of an evaluation from any
source.
C.
APPROVED ACCOUNTING PROGRAM
1.
An accounting program at an Accredited Baccalaureate Granting College is deemed
approved by the Board.
2.
The Board may deem an accounting program at any college or university as approved for
the purposes of a specific application if the applicant demonstrates that an Accredited
Baccalaureate Granting College would accept coursework or a degree obtained from the
college or university for credit towards a Baccalaureate Degree or higher degree, or into
a graduate program.
D.
EDUCATION REQUIREMENTS FOR EXAMINATION
A person who has a Baccalaureate Degree or higher degree who has obtained not less than 120 credit
hours of higher education, and who has fulfilled the requirements described in this Rule 1.5(D), has met
the education requirements necessary to sit for the examination
ty for credit towards a Baccalaureate Degree or higher degree, or into
a graduate program.
D.
EDUCATION REQUIREMENTS FOR EXAMINATION
A person who has a Baccalaureate Degree or higher degree who has obtained not less than 120 credit
hours of higher education, and who has fulfilled the requirements described in this Rule 1.5(D), has met
the education requirements necessary to sit for the examination.
Notwithstanding the above, a person who does not have a Baccalaureate Degree has met the education
requirements necessary to sit for the examination, if the individual has obtained not less than 120 credit
hours of higher education and fulfilled the requirements described in this Rule 1.5(D), and demonstrates
that they are currently enrolled in a degree program at a college or university that: (1) requires a minimum
150 hours for graduation; and (2) does not offer a Baccalaureate Degree, but instead confers a Masters
or higher degree, or offers a Baccalaureate Degree upon completion of a combined degree program.
1.
An applicant must have completed at least twenty-seven semester hours of non-
duplicative accounting coursework at the undergraduate or graduate level with awarded
or acceptable for credit from an accredited college or university. The transcripts must
indicate an accounting program code or the applicant must otherwise demonstrate that
the coursework was in accounting. The twenty-seven semester hours must include the
following:
a.
No more than six hours of introductory accounting courses, such as principles of
accounting, accounting and tax software courses, payroll accounting, and other
basic accounting courses as determined by the Board.
b.
Twenty-one semester hours of accounting courses, excluding introductory
accounting courses as described paragraph (a) of this Rule 1.5(D)(1), covering
subject areas such as:
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(1)
Accounting Ethics
(2)
Accounting Information Systems
(3)
Accounting Research and Analysis
(4)
Accounting Theory
ourses as determined by the Board.
b.
Twenty-one semester hours of accounting courses, excluding introductory
accounting courses as described paragraph (a) of this Rule 1.5(D)(1), covering
subject areas such as:
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(1)
Accounting Ethics
(2)
Accounting Information Systems
(3)
Accounting Research and Analysis
(4)
Accounting Theory
(5)
Auditing and Attestation Services
(6)
Financial Accounting and Reporting of Business Organizations
(7)
Financial Accounting and Reporting for Government and Not-for-Profit
Entities
(8)
Financial Statement Analysis
(9)
Fraud Examination
(10)
Internal Controls and Risk Assessment
(11)
Managerial or Cost Accounting
(12)
Taxation
(13)
Tax Research and Analysis
(14)
Forensic accounting
(15)
Tax auditing
(16)
Other areas as approved by the Board as documented in the Board’s
policies.
b.
The twenty-one semester hours must include a three semester hour, or more,
auditing course concentrating on U.S. GAAS. “Concentrating on U.S. GAAS”
means that any course content referencing non-U.S. standards is incidental to
the course.
c.
No more than three (3) semester hours of internship may count towards the
twenty-seven hour requirement as described in this Rule 1.5(D)(1).
2.
An applicant must successfully complete at least twenty-one semester hours of non-
duplicative coursework in business administration at the undergraduate or graduate level
that addresses subject areas such as:
a.
Behavior of Organizations, Groups, and Persons
b.
Business or Accounting Communications
c.
Business Ethics
d.
Business Law
e.
Computer Information Systems
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f.
Economics
g.
Finance
h.
Legal and Social Environment of Business
i.
Management
j.
Marketing
k.
Quantitative Applications in Business
l.
Statistics
m.
Other areas as approved by the Board
3.
Of the twenty-one semester hours described in this Rule 1.5(D)(2), no more than three
d.
Business Law
e.
Computer Information Systems
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f.
Economics
g.
Finance
h.
Legal and Social Environment of Business
i.
Management
j.
Marketing
k.
Quantitative Applications in Business
l.
Statistics
m.
Other areas as approved by the Board
3.
Of the twenty-one semester hours described in this Rule 1.5(D)(2), no more than three
(3) semester hours may be internship hours.
4.
All coursework must address subject areas as provided in paragraph (2) of this Rule
1.5(D), but the coursework need not be taken within the business or accounting
department.
6.
The courses required in this Rule 1.5(D) must be taken at an Accredited Baccalaureate
Granting College or: (1) such a college must accept the courses by including them in its
official transcript or demonstrate to the Board that it would accept the courses for credit
towards graduation; (2) the courses must be acceptable for transfer to such a college
pursuant to a transfer articulation agreement approved or accepted by the Colorado
Department of Higher Education or what the Board determines to be an equivalent
regulatory agency of another jurisdiction; or (3) the Board may accept the findings of an
academic credential evaluation provided pursuant to Rule 1.5(B).
E.
EDUCATION REQUIREMENTS FOR CERTIFICATION
An individual who has a Baccalaureate Degree or higher degree and who has fulfilled the requirements
described in this Rule 1.5(E) has met the education requirements necessary for certification.
1.
An Applicant must have successfully completed a total of 150 semester hours of non-
duplicative coursework at the undergraduate or graduate level.
2.
The Applicant must have completed at least thirty-three semester hours of nonduplicative
accounting coursework at the undergraduate or graduate level with awarded or
acceptable for credit from an accredited college or university
for certification.
1.
An Applicant must have successfully completed a total of 150 semester hours of non-
duplicative coursework at the undergraduate or graduate level.
2.
The Applicant must have completed at least thirty-three semester hours of nonduplicative
accounting coursework at the undergraduate or graduate level with awarded or
acceptable for credit from an accredited college or university. The transcripts must
indicate an accounting program code or the applicant must otherwise demonstrate that
the coursework was in accounting. The thirty-three semester hours must include the
following:
a.
No more than six semester hours of introductory accounting courses, such as
principles of accounting, accounting and tax software courses, payroll
accounting, and other basic accounting courses as determined by the Board.
b.
The twenty-seven semester hours of accounting courses excluding introductory
accounting courses as described in paragraph (b) of this Rule 1.5(E)(2) and
covering the subject areas described in Rule 1.5(D)(1)(a);
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c.
Of the twenty-seven semester hours required in paragraph (b), a three semester
hour course concentrating on U.S. GAAS, must be included. “Concentrating on
U.S. GAAS” means that any course content referencing non-U.S. standards is
incidental to the course.
3.
The applicant must have successfully completed at least twenty-seven semester hours of
non- duplicative coursework in business administration at the undergraduate or graduate
level, which must include:
a.
Of the twenty-seven semester hours, no more than nine semester hours can be
in any single subject area. But semester hours in excess of the nine-hour
maximum may count toward the total 150 semester hour requirement.
b.
All coursework must address subject areas as provided in Rule 1.5(D)(2), but the
coursework need not be taken within the business or accounting department.
4
which must include:
a.
Of the twenty-seven semester hours, no more than nine semester hours can be
in any single subject area. But semester hours in excess of the nine-hour
maximum may count toward the total 150 semester hour requirement.
b.
All coursework must address subject areas as provided in Rule 1.5(D)(2), but the
coursework need not be taken within the business or accounting department.
4.
The courses required in this Rule 1.5(E) must be taken at an Accredited Baccalaureate
Granting College or: (1) such a college must accept the courses by including them in its
official transcript or demonstrate to the Board that it would accept the courses for credit
towards graduation; (2) the courses must be acceptable for transfer to such a college
pursuant to a transfer articulation agreement approved or accepted by the Colorado
Department of Higher Education or what the Board determines to be an equivalent
regulatory agency of another jurisdiction; or (3) the Board may accept the findings of an
academic credential evaluation provided pursuant to Rule 1.5(B).
1.6
EXAMINATION GENERAL REQUIREMENTS AND PROHIBITED CONDUCT
This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), and 12-100-109, C.R.S.
A.
APPLICATIONS
Application to sit for the examination shall be made in a manner prescribed by the Board or its designee.
An application is deemed complete at the time all required information and fees are received. The Board
or its designee will not consider or review an incomplete application. Any application that is not complete
within one year of the receipt date will expire and be destroyed. The applicant must submit a new
application along with all required information and fees.
B.
EXAMINATION ELIGIBILITY
A candidate may be eligible to sit for the examination after satisfying the education requirements as
provided in Rule 1.5(D).
C.
OFFICIAL TRANSCRIPTS
A candidate must supply an official transcript to the Board or its designee when applying to sit for the
examination
d be destroyed. The applicant must submit a new
application along with all required information and fees.
B.
EXAMINATION ELIGIBILITY
A candidate may be eligible to sit for the examination after satisfying the education requirements as
provided in Rule 1.5(D).
C.
OFFICIAL TRANSCRIPTS
A candidate must supply an official transcript to the Board or its designee when applying to sit for the
examination. An additional official transcript may be required at the time the candidate applies for
certification. These official transcripts must be sent from the granting college or university directly to the
Board or its designee. However, the Board may accept an official transcript from the candidate if the
transcript is provided in an official envelope sealed by the granting college or university.
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D.
WITHDRAWALS
1.
A candidate may withdraw from the examination by filing a written request with the
Board’s designee. If a request is filed less than thirty days prior to the examination date,
the examination fee will be forfeited unless the failure to timely file the request was due
to:
a.
The health condition of the candidate or a member of his immediate family
substantiated by a physician's statement;
b.
The death of a member of the candidate’s immediate family substantiated by a
death certificate;
c.
The candidate entered military service and is unable to sit for the examination; or
d.
For other good cause deemed adequate by the Board.
2.
For the purposes of this Rule 1.6(D), “immediate family” means directly related family
members, including grandparents, parents, spouse, sibling, child, or grandchild, including
“step” relationships.
E.
CANDIDATE CONDUCT DURING EXAMINATION
1.
A candidate shall conduct himself in a manner that does not violate the standards of test
administration. Violations of test administration standards include, but are not limited to:
a
le 1.6(D), “immediate family” means directly related family
members, including grandparents, parents, spouse, sibling, child, or grandchild, including
“step” relationships.
E.
CANDIDATE CONDUCT DURING EXAMINATION
1.
A candidate shall conduct himself in a manner that does not violate the standards of test
administration. Violations of test administration standards include, but are not limited to:
a.
Making a false, fraudulent, or materially misleading statement or a material
omission on, or in connection with, any application for evaluation and
examination to become a CPA of this state. The withdrawal of any application
does not deprive the Board of its authority to take action against the applicant;
b.
Failing to comply with written guidelines of conduct to be adhered to by
candidates during the examination or oral guidance by a testing center
administrator at any examination location; and
c.
Cheating, subverting, or attempting to cheat or subvert, or aiding, abetting, or
conspiring to cheat on the examination;
d.
Cheating, subverting, or attempting to cheat or subvert, or aiding, abetting, or
conspiring to cheat on the examination includes, but is not limited to, engaging in,
soliciting, attempting, or procuring any of the following:
(1)
Any form of communication between the candidate and anyone, other
than a proctor or examination administrator, while the examination is in
progress;
(2)
Any form of communication between the candidate and anyone at any
time concerning the content of the examination including, but not limited
to, any examination question or answer, unless the examination has
been publicly released by the preparer of the examination;
(3)
Taking by another of all or any part of the examination for the candidate;
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nication between the candidate and anyone at any
time concerning the content of the examination including, but not limited
to, any examination question or answer, unless the examination has
been publicly released by the preparer of the examination;
(3)
Taking by another of all or any part of the examination for the candidate;
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(4)
Possession or use at any time during the examination or while the
candidate is in the examination testing center of any device, material,
document, or other thing that is not expressly authorized for use by
examinees during the examination including, but not limited to, notes,
crib sheets, books, and electronic devices; or
(5)
Using or referring at any time after the commencement of the
examination and prior to the conclusion of the examination, including all
breaks during the examination, to any person, device, material,
document, or other thing that is not expressly authorized for use by
candidates.
2.
A violation of this Rule 1.6(E) is cause for sanctions including disqualification. Sanctions
may range from entering a failing grade on all parts of the examination in which cheating
occurred, suspension, or total prohibition from sitting for future examinations, other
conditions or limitations, or any combination of these sanctions.
3.
Any candidate observed violating this Rule 1.6(E) or who otherwise disrupts the
examination may be immediately removed from the testing center.
4.
The voluntary departure or removal from an examination does not deprive the Board of
its authority to take action against the candidate.
5.
Any candidate suspected of violating this Rule 1.6(E) or who may have been observed
violating this Rule 1.6(E) may be requested to remain for a reasonable period of time
following an examination session and may be questioned by test center officials. Test
center officials must report any alleged violation of this Rule 1.6(E) to the Board.
6
of
its authority to take action against the candidate.
5.
Any candidate suspected of violating this Rule 1.6(E) or who may have been observed
violating this Rule 1.6(E) may be requested to remain for a reasonable period of time
following an examination session and may be questioned by test center officials. Test
center officials must report any alleged violation of this Rule 1.6(E) to the Board.
6.
If more than one candidate is knowingly involved in a connected violation of this Rule
1.6(E), all persons involved are subject to sanctions, although not necessarily of the
same severity.
7.
Other jurisdictions to which a candidate may apply for the examination will be notified of
the sanction imposed by the Board.
8.
If, upon a full investigation, the Board has objective and reasonable grounds to believe
and finds that the candidate has violated the provisions of this Rule 1.6(E), it may impose
the sanctions described in paragraph (2) of this Rule 1.6(E). The Board shall incorporate
the findings in its order. For purposes of this paragraph (8), “full investigation” means a
reasonable ascertainment of the underlying facts on which the Board’s action is based.
9.
The candidate, within sixty days after the date of service of the order, may request a
hearing before the Board as provided in section 24-4-105, C.R.S., on the issue of
whether the candidate committed a violation of this Rule 1.6(E). The action of the Board
after any hearing shall be subject to judicial review as provided in section 24-4-106,
C.R.S.
10.
This Rule 1.6(E) does not limit the Board’s authority to impose penalties or take any other
action authorized under the Act.
F.
CONDITIONING REQUIREMENTS
1.
Granting of Credit
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a violation of this Rule 1.6(E). The action of the Board
after any hearing shall be subject to judicial review as provided in section 24-4-106,
C.R.S.
10.
This Rule 1.6(E) does not limit the Board’s authority to impose penalties or take any other
action authorized under the Act.
F.
CONDITIONING REQUIREMENTS
1.
Granting of Credit
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a.
Candidates are allowed to sit for each section of the examination individually and
in any order.
b.
Candidates retain credit for any section(s) passed for thirty (30) months, without
having to attain a minimum score on failed sections and without regard to
whether they have taken other sections.
c.
Candidates must pass all four sections of the examination within a “rolling” thirty
(30)-month period that begins on the date of the notification letter (i.e. candidate
score summary) documenting a passing grade of the first section.
d.
In the event all four sections of the examination are not passed within the rolling
thirty (30)-month period, credit for any section(s) passed outside the thirty (30)-
month period will expire and the section(s) must be retaken.
e.
Written requests for exceptions to the requirements set forth above may be
granted at the discretion of the Board for individual hardship or other good cause
demonstrated in a timely manner.
G.
NOTICE TO SCHEDULE (NTS)
1.
After a candidate has been determined eligible to take any section of the examination
and the candidate has paid the required fee, the Board’s designee will send the
candidate an NTS authorizing the candidate to take the section or sections of the
examination.
2.
The candidate has six months from the date of the NTS to take the examination section
for which the candidate is eligible.
3.
A candidate who fails to take the approved examination section within six months must
reapply to the Board’s designee for establishment of new eligibility
esignee will send the
candidate an NTS authorizing the candidate to take the section or sections of the
examination.
2.
The candidate has six months from the date of the NTS to take the examination section
for which the candidate is eligible.
3.
A candidate who fails to take the approved examination section within six months must
reapply to the Board’s designee for establishment of new eligibility.
1.7
EXPERIENCE REQUIREMENTS FOR CERTIFICATION
The following requirements apply to applicants who seek to qualify for certification pursuant to sections
12-100-107 and 12-100-108, C.R.S.
A.
GENERAL EXPERIENCE AND VERIFICATION REQUIREMENTS
1.
An applicant has satisfied the experience requirement necessary to be issued a
certificate upon completion of 1,800 qualifying work hours verified by one or more
verifiers as defined in Rule 1.7(A)(5).
a.
The work hours must be obtained within the five years immediately preceding the
date the application is received by the Board or its designee.
b.
The work hours may include any combination of full-time and part-time work.
Academic internship hours may be included for both experience and under Rule
1.5 for education credit.
c.
Except as provided in Rule 1.7(A)(4), the work hours must be obtained while
employed by one or more employers.
d.
The work hours must be obtained over a period of not less than one year and not
more than three years.
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me work.
Academic internship hours may be included for both experience and under Rule
1.5 for education credit.
c.
Except as provided in Rule 1.7(A)(4), the work hours must be obtained while
employed by one or more employers.
d.
The work hours must be obtained over a period of not less than one year and not
more than three years.
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2.
The work experience must involve the application of appropriate technical and behavioral
standards, such as the AICPA Code of Professional Conduct and other standards
contained in the AICPA Professional Standards, U.S. GAAP, U.S. GAAS, Statements on
Standards for Attestation Engagements (SSAE), Statements on Standards for Accounting
and Review Services (SSARS), Statements on Standards for Tax Services (SSTS),
Statements on Standards for Management Consulting Services, or other such standards
as determined by the Board.
3.
“Qualifying work hour(s)” means hours spent primarily applying the standards described
in Rule 1.7(A)(2). Holidays, vacations, and family/employee sick leave shall not be
included as qualifying work hours. Clerical experience does not count toward qualifying
work hours. Clerical experience includes, but is not limited to, mere data entry, mere
mathematical calculations, mere account analysis of information already recorded, and
merely recording information in the general ledger.
4.
Comparable work experience not specifically addressed by these Rules may be
considered by the Board on a case-by-case basis, but must include application of the
standards described in Rule 1.7(A)(2).
5.
“Verifier” means a CPA who is, for the entire period verified, actively licensed in any State
or a country that is part of the Mutual Recognition Agreement as set forth in Rule 1.8(F).
The verifier cannot be subordinate to or otherwise under the supervision or control of the
applicant
y the Board on a case-by-case basis, but must include application of the
standards described in Rule 1.7(A)(2).
5.
“Verifier” means a CPA who is, for the entire period verified, actively licensed in any State
or a country that is part of the Mutual Recognition Agreement as set forth in Rule 1.8(F).
The verifier cannot be subordinate to or otherwise under the supervision or control of the
applicant. The verifier must attest to having direct and continuous knowledge of the work
done by the applicant and to having performed contemporaneous periodic review and
evaluation of the Applicant’s work. The Board in its discretion may grant exceptions to the
requirements in this subsection for good cause.
6.
The applicant must submit a certificate of experience from all relevant employers
including details of the work experience and verification in a manner prescribed by the
Board or its designee. Certificates of experience for part-time work must contain a record
of the actual hours the applicant has worked for each week of part-time employment. The
certificate of experience and all additional details must be signed by the verifier.
7.
The Board may request and review information regarding the work experience submitted,
including, but not limited to, evidence of experience with the standards described in Rule
1.7(A)(2), work papers, reports, syllabi, course materials, and/or time records. The Board
may also interview applicants, verifiers, and any other person who might possess
relevant information.
B.
PUBLIC ACCOUNTING
Qualifying public accounting experience, for purposes of this Rule, consists of performing services for a
client or potential client, including, but not limited to, any combination of services involving the use of
accounting or attestation skills, the issuance of reports on financial statements, management advisory or
consulting services, preparing tax returns, or furnishing advice on tax matters
Qualifying public accounting experience, for purposes of this Rule, consists of performing services for a
client or potential client, including, but not limited to, any combination of services involving the use of
accounting or attestation skills, the issuance of reports on financial statements, management advisory or
consulting services, preparing tax returns, or furnishing advice on tax matters. Such work consists of
employment by a CPA or Firm performing services primarily involving the application of the standards
described in Rule 1.7(A)(2).
C.
INDUSTRY
Qualifying industry experience consists of performing services, including for an employer, primarily
involving the application of the standards described in Rule 1.7(A)(2). Such services may include, but are
not limited to, internal audit, installation of internal control systems, preparing Financial Statements,
management advisory or consulting services, preparing tax returns, or furnishing advice on tax matters.
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D.
GOVERNMENT
Qualifying government experience consists of employment by a federal, state, or local government entity.
Such work consists of employment performing services primarily involving the application of the standards
described in Rule 1.7(A)(2). Such services may include, but are not limited to, internal or external audit,
installation of internal control systems, preparing Financial Statements, management advisory or
consulting services, or regulatory reporting on financial matters.
E.
ACADEMIA
1.
Qualifying academic experience consists of teaching in the accounting discipline for
academic credit at a regionally accredited college or university. The teaching must
include at least two different accounting courses taught above the introductory level
involving the standards described in Rule 1.7(A)(2). One year of experience consists of
teaching no less than twelve semester hours or the equivalent in quarter hours
xperience consists of teaching in the accounting discipline for
academic credit at a regionally accredited college or university. The teaching must
include at least two different accounting courses taught above the introductory level
involving the standards described in Rule 1.7(A)(2). One year of experience consists of
teaching no less than twelve semester hours or the equivalent in quarter hours. Courses
outside the field of accounting do not count toward the experience requirement. Such
non-qualifying courses include, but are not limited to, business law, finance, computer
applications, personnel management, marketing, economics, and statistics.
2.
In addition to a certificate of experience, the applicant must submit with the application a
letter from each institution where the qualifying hours were taught, signed by the dean or
department head at that institution. The letter must include: (a) the number of credit hours
that the applicant taught for the relevant years; and (b) the name and academic level,
course description, and syllabus for each course taught. The verifier must be the
department chair or a faculty member, who shall also be a CPA as described in Rule
1.7(A)(5).
1.8
REQUIREMENTS FOR CERTIFICATION
This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), 12-100-108, and 12-100-
111, C.R.S.
A.
GENERAL PROVISIONS
1.
An applicant must complete and submit an application with applicable fees as prescribed
by the Board or its designee.
2.
Education, training, or experience gained in military service as outlined in section 12-20-
202(4), C.R.S., will be accepted towards satisfying the requirements for certification upon
presentation of evidence deemed satisfactory to the Board that the education, training, or
experience meets the standards otherwise applicable at the time of receipt of the
application. The applicant must provide timely and complete evidence for review and
consideration. The Board will consider the evidence on a case-by-case basis.
3
epted towards satisfying the requirements for certification upon
presentation of evidence deemed satisfactory to the Board that the education, training, or
experience meets the standards otherwise applicable at the time of receipt of the
application. The applicant must provide timely and complete evidence for review and
consideration. The Board will consider the evidence on a case-by-case basis.
3.
Individuals granted a certificate who issue attest or compilation reports must enroll in a
peer review program within thirty days following the date the Board grants the initial
certificate, pursuant to Rule 1.11 of these Rules.
4.
A certificate holder may engage in the practice of public accounting as a sole proprietor.
5.
A certificate holder (including a sole proprietor) must register any form of partnership,
professional corporation, or limited liability company as provided in Rule 1.15 before he
can hold out or engage through that legal entity in any activity for which an active or valid
certificate or registration is required under section 12-100-116(1), C.R.S.
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6.
Upon issuance, certificates and certificate holders are subject to the certificate
maintenance, Continuing Professional Education, and other requirements described in
Rules 1.9 and 1.10 and all of these Rules.
B.
GENERAL CERTIFICATION REQUIREMENTS
1.
An applicant has met the requirements necessary for certification if he has:
a.
Met the minimum education requirements as described in Rule 1.5;
b.
Taken and passed the Uniform CPA Examination;
c.
Taken the AICPA Ethics course and passed the AICPA Ethics Examination with
a score of ninety percent or better within two years immediately preceding the
application receipt date; and
d.
Met the experience requirements described in Rule 1.7.
2.
The applicant must complete two hours of CR&R within six months after the date the
Board grants the initial certificate
sed the Uniform CPA Examination;
c.
Taken the AICPA Ethics course and passed the AICPA Ethics Examination with
a score of ninety percent or better within two years immediately preceding the
application receipt date; and
d.
Met the experience requirements described in Rule 1.7.
2.
The applicant must complete two hours of CR&R within six months after the date the
Board grants the initial certificate. CR&R completed within the six months immediately
preceding the date the Board grants the initial certificate will satisfy this requirement.
a.
CR&R completed within the six months immediately preceding the date the
Board grants the initial certificate will satisfy this requirement. CR&R that is not
completed within the six months preceding or after that date will not satisfy this
requirement, but it may count towards general CPE credit, if it otherwise satisfies
the requirements of Rule 1.9(G).
b.
CR&R courses completed under this requirement may satisfy the CR&R
requirement under paragraph (2)(b) of Rule 1.9(G).
c.
CR&R completed pursuant to this subsection (B)(2) of this Rule may be counted
toward general CPE requirements.
C.
EXAMINATION MORE THAN 10 YEARS PRIOR TO THE CERTIFICATION APPLICATION
DATE
If an applicant applies for licensure with examination scores obtained more than ten years prior to the
application receipt date, in addition to satisfying the requirements of Rule 1.8(B), the applicant must
complete eighty hours of CPE within the two years immediately preceding the application receipt date. No
education in personal development, as defined by the fields of study, may be counted toward the eighty
hours.
D.
VERIFICATION OF EXAM SCORES FOR CERTIFICATION
If examination scores cannot be verified through the Board’s records or the records of the Board’s
designee, the Board may require the applicant to qualify and sit for the examination again prior to
applying for licensure.
E.
RECIPROCITY REQUIREMENTS
1
n personal development, as defined by the fields of study, may be counted toward the eighty
hours.
D.
VERIFICATION OF EXAM SCORES FOR CERTIFICATION
If examination scores cannot be verified through the Board’s records or the records of the Board’s
designee, the Board may require the applicant to qualify and sit for the examination again prior to
applying for licensure.
E.
RECIPROCITY REQUIREMENTS
1.
The Board may issue a certificate to an applicant who holds an active certificate or
license issued by another state or the federal government, or who holds a military
occupational specialty, as defined in section 24-4-201, C.R.S., provided the applicant:
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a.
Possessed the requirements necessary for issuance of a certificate in Colorado
on the date that the applicant’s certificate or license was issued by the other
state, the applicant meets the Substantial Equivalency requirements defined in
Rule 1.4, or the applicant submits proof that he or she has held for at least one
year a current and valid certificate or license in another jurisdiction with a scope
of practice that is substantially similar to the scope of practice as specified in
Article 100 of Title 12, C.R.S.;
b.
Provides verification that he holds an active certificate or license issued by
another state; and
c.
Attests to having completed Professional Ethics: The American Institute of
Certified Public Accountants Comprehensive Course (for Licensure) or
subsequently named course and all CPE required by the other state as of the
application receipt date.
2.
The applicant must complete two hours of CR&R within six months following the date the
Board grants the initial certificate. CR&R completed within the six months immediately
preceding the date the Board grants the initial Certification will satisfy this requirement.
3
Course (for Licensure) or
subsequently named course and all CPE required by the other state as of the
application receipt date.
2.
The applicant must complete two hours of CR&R within six months following the date the
Board grants the initial certificate. CR&R completed within the six months immediately
preceding the date the Board grants the initial Certification will satisfy this requirement.
3.
An applicant who holds a certificate or license issued by another state or the federal
government based upon passage of the examination but who does not hold a certificate
or license to practice is not eligible for reciprocity through that certificate or license.
4.
The Board may rely on NASBA, the AICPA, and other professional bodies deemed
acceptable to the Board in determining whether an applicant meets the requirements of
this Rule 1.8(E).
F.
INTERNATIONAL APPLICANTS - MUTUAL RECOGNITION AGREEMENT (MRA)
1.
The Board recognizes the IQAB, a joint body of NASBA and the AICPA, which is charged
with:
a.
Evaluating the professional credentialing process of CPAs, or their equivalents,
from other countries; and
b.
Negotiating principles of reciprocity agreements with the appropriate professional
and governmental organizations of other countries seeking recognition as having
requirements substantially equivalent to the requirements for the U.S. CPA
certificate.
2.
The Board may issue a certificate to an individual holding an active certificate or
designation from an organization that has entered into a MRA with the IQAB, provided
that the applicant has:
a.
Passed the International Qualifications Examination (IQEX) or the Examination;
b.
Has one year of work experience in accordance with the requirements of Rule
1.7; and
c.
Completed the AICPA Ethics course and passed the AICPA Ethics Examination
with a score of ninety percent or better within two years immediately preceding
the application receipt date.
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al Qualifications Examination (IQEX) or the Examination;
b.
Has one year of work experience in accordance with the requirements of Rule
1.7; and
c.
Completed the AICPA Ethics course and passed the AICPA Ethics Examination
with a score of ninety percent or better within two years immediately preceding
the application receipt date.
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3.
The applicant must complete two hours of CR&R within six months following the date the
Board grants the initial certificate. CR&R completed within the six months immediately
preceding the date the Board grants the initial certification will satisfy this requirement.
G.
INTERNATIONAL APPLICANTS – NO MUTUAL RECOGNITION AGREEMENT (MRA)
1.
If the applicant holds a certificate or designation from an organization that has not
entered into a MRA with the IQAB, the Board may issue a certificate, provided that:
a.
The applicant meets the requirements in Rule 1.8(B); and
b.
The Board may require that the applicant provide an education evaluation
pursuant to Rule 1.5(B)(4).
1.9
CERTIFICATE REQUIREMENTS, DISCIPLINE, MAINTENANCE, AND STATUS CHANGES
This Rule is promulgated pursuant to sections 12-20-202, 12-20-204, 12-100-105(1)(b), and 12-100-112,
C.R.S., and sets forth the general rules regarding a certificate, including CPE requirements, and how a
certificate holder may renew, reactivate, or reinstate a certificate, and obtain a retired or inactive status
certificate. For specific CPE requirements also see Rule 1.10. A certificate holder is responsible for
completing the renewal process when and as required if he wants to maintain his certificate in an active,
retired, or inactive status.
A.
GENERAL INFORMATION
1.
No individual can hold out as defined in Rule 1.4 unless that individual holds an active
certificate issued pursuant to the Act or under the laws of any other state, except that:
a
lso see Rule 1.10. A certificate holder is responsible for
completing the renewal process when and as required if he wants to maintain his certificate in an active,
retired, or inactive status.
A.
GENERAL INFORMATION
1.
No individual can hold out as defined in Rule 1.4 unless that individual holds an active
certificate issued pursuant to the Act or under the laws of any other state, except that:
a.
An individual whose license or certificate is in an inactive status in this or another
state may use or assume the title or designation “certified public accountant” or
“CPA” or similar designation followed or preceded by the term “inactive”; or
b.
An individual whose license or certificate is in a retired status in this or another
state may use or assume the title or designation “certified public accountant” or
“CPA” or similar designation immediately followed or preceded by the term
“retired,” and
c.
While practicing in this state under section 12-100-117(2), C.R.S., and Rule 1.14
(Practice Privilege/Mobility), an individual who holds an active CPA license or
certificate issued pursuant to the laws of another state may use or assume the
title or designation “certified public accountant” or “CPA” or similar designation
and an individual holding equivalent authority in a non-U.S. jurisdiction may use
or assume the equivalent designation authorized in his non-U.S. jurisdiction.
2.
No individual, while holding out as defined in Rule 1.4, can perform for any client,
employer, or other person, one or more kinds, or any combination of services involving
the use of accounting or attestation skills, including, but not limited to, issuance of reports
on financial statements, or of one or more types of management advisory or consulting
services, or the preparation of tax returns, or the furnishing of tax advice unless that
individual: (1) holds an active certificate issued pursuant to the Act, or (2) is authorized to
provide such services pursuant to Rule 1.14 (Practice Privilege/Mobility).
3
, including, but not limited to, issuance of reports
on financial statements, or of one or more types of management advisory or consulting
services, or the preparation of tax returns, or the furnishing of tax advice unless that
individual: (1) holds an active certificate issued pursuant to the Act, or (2) is authorized to
provide such services pursuant to Rule 1.14 (Practice Privilege/Mobility).
3.
A certificate holder offering or rendering services or using his CPA title in another state is
subject to disciplinary action in this state for conduct in another state if that conduct
violates the Act or these Rules or the laws or rules of that state.
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4.
Every certificate holder holding an active status certificate must complete CPE. CPE
accrues at a rate of ten hours for every full quarter during which the certificate holder
holds an active status certificate. The CPE must be completed on or before December 31
of the year ending the CPE reporting period in which the CPE obligation is incurred.
Failure to complete accrued CPE on or before December 31 of the year ending the CPE
reporting period in which the CPE obligation is incurred is cause for discipline up to and
including revocation. A change to expired, inactive, or retired status does not eliminate
the obligation to complete accrued CPE before applying for reactivation or reinstatement.
5.
Falsely attesting or otherwise providing false information to the Board may violate
sections 18-8-501(2)(a)(I), and 18-8-503, C.R.S., and is also grounds for discipline by the
Board up to and including denial, suspension, or revocation of a certificate.
B.
NOTICES
1.
Certificate Holder Address and Name Changes
a.
Certificate holders shall inform the Board of any name, assumed or trade name,
address, telephone, or email change within thirty days of the change. The Board
will not change a certificate holder's information without explicit notification
provided in a manner prescribed by the Board
ng denial, suspension, or revocation of a certificate.
B.
NOTICES
1.
Certificate Holder Address and Name Changes
a.
Certificate holders shall inform the Board of any name, assumed or trade name,
address, telephone, or email change within thirty days of the change. The Board
will not change a certificate holder's information without explicit notification
provided in a manner prescribed by the Board. Individuals and firms must provide
separate notices under this Rule. Information provided to the Board in a firm
renewal or initial application and firm changes reported pursuant to Rule 1.15(C)
do not fulfill the individual notice requirements under this Rule 1.9(B).
b.
The Board requires one of the following forms of documentation to change a
certificate holder’s name or correct a social security number or individual
taxpayer identification number:
(1)
Marriage license;
(2)
Divorce decree;
(3)
Court order;
(4)
Documentation from the Internal Revenue Service verifying the
licensee’s valid individual taxpayer identification number; or
(5)
A driver’s license or social security card with a second form of
identification may be acceptable at the discretion of the Division of
Professions and Occupations.
c.
Board communications are sent to the last address furnished to the Board.
Failure to respond to a Board communication within thirty days, as provided in
section 12-100-121, C.R.S., is grounds for discipline up to and including
revocation. Failure to notify the Board of a change of address does not relieve a
certificate holder of the obligation to respond to a Board communication.
2.
Renewal Notices to Certificate Holders.
a.
The Board may send notices for renewal of certificates according to a schedule
established and in a manner approved by the Division of Professions and
Occupations pursuant to section 12-20-202, C.R.S., to the last address furnished
to the Board.
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on to respond to a Board communication.
2.
Renewal Notices to Certificate Holders.
a.
The Board may send notices for renewal of certificates according to a schedule
established and in a manner approved by the Division of Professions and
Occupations pursuant to section 12-20-202, C.R.S., to the last address furnished
to the Board.
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b.
There is a sixty-day grace period from the expiration date of the certificate within
which to pay the renewal fee, plus a late fee. A certificate holder will not be
disciplined for holding out or practicing public accounting with an expired
certificate during the grace period.
c.
Failure to receive a renewal notice does not relieve the certificate holder of the
obligation to renew a certificate.
C.
NAMES
1.
A certificate holder engaged in the practice of public accounting must not hold out,
perform, or offer to perform professional services using a name that has not been
provided to the Board.
2.
A certificate holder shall not use an assumed or trade name unless:
a.
The assumed or trade name is filed with the Colorado Secretary of State
pursuant to section 7-71-101, C.R.S.;
b.
The assumed or trade name has been provided to the Board in a manner
prescribed by the Board; and
c.
The assumed or trade name otherwise complies with these Rules.
3.
The name under which a certificate holder holds out or engages in the practice of public
accounting must not be misleading.
4.
A name is considered misleading if the name:
a.
Implies the existence of a corporation by the use of words or abbreviations such
as “Corporation,” “Incorporated,” “P.C.,” “Corp.,” or “Inc.,” if the CPA is not
incorporated or is not a professional corporation.
b.
Implies the existence of a partnership by the use of a designation such as “Smith
& Jones,” “C.P.A.s,” “Partnership,” “Ltd.,” “LP”, “LLP”, or “LLLP” if the CPA is not
such an entity.
c
Implies the existence of a corporation by the use of words or abbreviations such
as “Corporation,” “Incorporated,” “P.C.,” “Corp.,” or “Inc.,” if the CPA is not
incorporated or is not a professional corporation.
b.
Implies the existence of a partnership by the use of a designation such as “Smith
& Jones,” “C.P.A.s,” “Partnership,” “Ltd.,” “LP”, “LLP”, or “LLLP” if the CPA is not
such an entity.
c.
Implies the existence of a limited liability company by the use of abbreviations
such as “Ltd.,” “L.L.C.,” “LLC,” or “LC” if the CPA is not such an entity.
d.
Implies that the CPA is associated with or employs another person by the use of
terms such as “& Company,” “& Associates,” or “Group” if, in addition to the CPA,
there is not at least one other owner or person employed by, professionally
associated, or contractually related on a regular and continuous basis with the
CPA.
e.
Implies the existence of more than one CPA by the use of terms such as “CPAs,”
or “Certified Public Accountants” if no more than one CPA is an Owner or is
employed by, or professionally associated, or contractually related on a regular
and continuous basis with the CPA.
f.
Includes the name of a person who is neither a CPA in any State nor a CPA or
legal equivalent in a foreign country if “CPA” is included in the name.
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g.
Indicates or implies an association with persons who are not associated with the
CPA, except that a CPA who is a member of a network may include the brand
name or initials of the Network provided that the name does not otherwise violate
this Rule 1.9(C).
h.
Contains any representation that would likely cause a reasonable person to be
misled or confused about the CPA’s legal entity type, e.g., corporation,
partnership, limited liability company, or sole proprietorship, or about ownership.
i.
Contains any representation that would likely cause a reasonable person to have
a false or unjustified expectation of favorable results or capabilities.
j
(C).
h.
Contains any representation that would likely cause a reasonable person to be
misled or confused about the CPA’s legal entity type, e.g., corporation,
partnership, limited liability company, or sole proprietorship, or about ownership.
i.
Contains any representation that would likely cause a reasonable person to have
a false or unjustified expectation of favorable results or capabilities.
j.
Claims or implies the ability to influence a regulatory body or official.
k.
Includes the name of any CPA or Firm whose certificate, license, or registration
has been revoked or disciplined whereby the CPA or Firm is prohibited from
practicing public accounting or prohibited from using the title CPA or holding out
if the name includes the designation “CPAs” or any other language or device
tending to indicate the disciplined CPA or firm possesses an active certificate,
license, or registration.
l.
Contains other representations or implications that in reasonable probability
would cause a reasonable person to misunderstand or be deceived.
5.
A name must not be formulated in such a manner that the initials or parts of the name
form a term, phrase, or imply an association that is misleading.
D.
OFFERING SERVICES VIA THE INTERNET
Any certificate holder offering or performing professional services via the Internet must include the
following information on the Internet site:
1.
Name of the certificate holder;
2.
Mailing and physical address of the principal location where the certificate holder offers
and/or provides professional services;
3.
Business telephone number; and
4.
Colorado certificate number.
E.
DISCLOSURE - LICENSEES
1.
A licensee must notify the Board within thirty days of any of the following events relating
to the licensee:
a.
Imposition of Discipline by:
(1)
The SEC, PCAOB, or IRS.
(2)
Another state board of accountancy for any cause other than failure to
pay a professional license fee by the due date.
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umber.
E.
DISCLOSURE - LICENSEES
1.
A licensee must notify the Board within thirty days of any of the following events relating
to the licensee:
a.
Imposition of Discipline by:
(1)
The SEC, PCAOB, or IRS.
(2)
Another state board of accountancy for any cause other than failure to
pay a professional license fee by the due date.
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(3)
Any other federal or state agency or any professional association or
entity regarding the licensee’s conduct while rendering professional
services.
(4)
Any federal or state taxing, insurance, or securities regulatory authority.
(5)
Any non-U.S. authority or credentialing body that regulates the practice
of accountancy.
b.
Notice of disciplinary charges filed by the SEC, PCAOB, IRS, or another state
board of accountancy, or a federal or state agency concerning the practice of
public accounting or a non-U.S. authority or credentialing body that regulates the
practice of public accounting.
c.
Initiation of a civil proceeding or an alternative dispute resolution proceeding by a
governmental entity relating to an audit report for a public or non-public company.
d.
Judgment, settlement, or resolution of a civil proceeding or an alternative dispute
resolution proceeding by a governmental entity relating to an audit report for a
public or non-public company.
e.
Initiation of an administrative proceeding or disciplinary proceeding by any
federal, state, or non-U.S. agency, board, or administrative or licensing authority,
or any professional association or entity regarding an audit report for a public or
non-public company.
f.
Any decision, judgment, settlement, or resolution of an administrative proceeding
or disciplinary proceeding by any federal, state, or non-U.S. agency, board, or
administrative or licensing authority, or any professional association or entity
regarding an audit report for a public or non-public company.
g
sional association or entity regarding an audit report for a public or
non-public company.
f.
Any decision, judgment, settlement, or resolution of an administrative proceeding
or disciplinary proceeding by any federal, state, or non-U.S. agency, board, or
administrative or licensing authority, or any professional association or entity
regarding an audit report for a public or non-public company.
g.
Any judgment, award, or settlement of a civil action or arbitration proceeding of
$150,000 or more in which the licensee was a party if the action or proceeding
included any allegation of negligence, violation of specific standards of practice,
fraud, or misappropriation of funds in the practice of public accounting or during
employment.
h.
A criminal charge against or a conviction of the licensee, deferred prosecution, or
a plea of guilty or nolo contendere to a crime by the licensee if:
(1)
The crime is a felony under the laws of any state, or of the United States,
or of any territory or insular possession of the United States, or the
District of Columbia or any non-U.S. jurisdiction; or
(2)
An element of the crime is dishonesty or fraud.
i.
Occurrence of any matter that must be reported by the licensee to the PCAOB
pursuant to the Sarbanes-Oxley Act of 2002, 15 U.S.C. sec. 7201 et seq., and
PCAOB Rules and forms adopted pursuant thereto.
2.
The notice to the Board shall include the following information regarding the reportable
event:
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rime is dishonesty or fraud.
i.
Occurrence of any matter that must be reported by the licensee to the PCAOB
pursuant to the Sarbanes-Oxley Act of 2002, 15 U.S.C. sec. 7201 et seq., and
PCAOB Rules and forms adopted pursuant thereto.
2.
The notice to the Board shall include the following information regarding the reportable
event:
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a.
If the reportable event is a disciplinary proceeding, alternative dispute resolution
proceeding, administrative proceeding, or civil action by any entity referenced in
Rule 1.9(E)(1)(a), the name of the entity, its jurisdiction, the case name, the
docket or proceeding or case number by which it is designated, a description of
the matter, or a copy of the document initiating the action or proceeding and, if
the matter has been adjudicated or settled, a copy of the consent decree, order,
or decision.
b.
If the reportable event is a criminal conviction or plea, the court, its jurisdiction,
the case name, the case number, and a description of the matter or a copy of the
indictment or charges, and, if the matter has been adjudicated, a copy of the
judgment of conviction.
c.
If the reportable event concerns a civil action or arbitration proceeding, the court
or arbiter, the jurisdiction, the case name, the case number, a description of the
matter, or a copy of the complaint, and a copy of the verdict, the court or
arbitration decision, or, if settled, the court’s order of dismissal.
3.
The reporting licensee may submit a written explanatory statement to be included in the
Board’s records.
4.
Documents provided to the Board shall be closed to public inspection if federal or state
statute, rule, or regulation so provides.
5.
This Rule shall apply to any reportable event that occurs on or after the Rule’s effective
date.
F
ecision, or, if settled, the court’s order of dismissal.
3.
The reporting licensee may submit a written explanatory statement to be included in the
Board’s records.
4.
Documents provided to the Board shall be closed to public inspection if federal or state
statute, rule, or regulation so provides.
5.
This Rule shall apply to any reportable event that occurs on or after the Rule’s effective
date.
F.
APPLICATION FOR BOARD ACTION
A certificate holder or a person wishing the Board to take any action regarding the status of a certificate
shall apply in a manner prescribed by the Board, except as otherwise provided under Rule 1.9(H)(1)
(transfer to inactive status).
G.
ACTIVE CERTIFICATE
An active certificate expires and must be renewed according to the schedule established by the Division
of Professions and Occupations pursuant to section 12-20-202, C.R.S., in order to maintain the certificate
in active status.
1.
CPE hours completed prior to certification, but within the CPE reporting period, may be
eligible for CPE credit upon Renewal.
2.
A certificate holder, including the holder of an initial certificate, must complete ten hours
of CPE for each full quarter in which the certificate holder is actively licensed during a
CPE reporting period.
a.
No more than twenty percent of CPE can be in Personal Development, as
defined by the Fields of Study.
b.
Four hours of CPE must be in Ethics, of which two hours may be in CR&R.
c.
No more than fifty percent of CPE can be in any combination of teaching or
publishing an article or book.
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ly licensed during a
CPE reporting period.
a.
No more than twenty percent of CPE can be in Personal Development, as
defined by the Fields of Study.
b.
Four hours of CPE must be in Ethics, of which two hours may be in CR&R.
c.
No more than fifty percent of CPE can be in any combination of teaching or
publishing an article or book.
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3.
As a condition of renewal, certificate holders shall attest that they have complied with the
requirements of this Rule 1.9(G).
4.
The Board cannot renew the certificate of a certificate holder who issues attest or
compilation reports unless he attests to having undergone a peer review as provided in
Rule 1.11.
5.
As a condition of renewal, a certificate holder shall attest that he has complied with the
requirements of Rule 1.12(K).
H.
INACTIVE STATUS CERTIFICATE
An inactive certificate expires and must be renewed according to the schedule established by the Division
of Professions and Occupations pursuant to section 12-20-201, C.R.S., to maintain the certificate in
inactive status.
1.
Transfer of a Certificate to Inactive Status
To transfer a certificate to inactive status, a certificate holder must submit notice in a
manner prescribed by the Board or provide written notice by first class mail to the Board.
2.
Conditions of an Inactive Certificate
a.
Inactive certificate holders are not required to comply with CPE requirements for
the period during which the certificate is inactive.
b.
Inactive status must be indicated by the word “Inactive” (e.g., Inactive CPA or
Inactive Certified Public Accountant) if the certificate holder uses the CPA
designation in any manner.
c.
A certificate holder with a certificate in inactive status cannot hold out or perform
any service for which an active certificate is required under section 12-100-
116(1), C.R.S.
3.
A certificate holder may transfer a certificate to inactive status whether or not he has
complied with his current CPE requirements
ublic Accountant) if the certificate holder uses the CPA
designation in any manner.
c.
A certificate holder with a certificate in inactive status cannot hold out or perform
any service for which an active certificate is required under section 12-100-
116(1), C.R.S.
3.
A certificate holder may transfer a certificate to inactive status whether or not he has
complied with his current CPE requirements. However, transferring a certificate to
inactive status does not relieve the certificate holder of the obligation to complete any
CPE accrued but not completed as of the date he transferred the certificate to inactive
status. The certificate holder may be subject to discipline for failure to timely complete
such CPE and he must complete that CPE prior to returning the certificate to active
status (i.e., to reactivate the certificate) as provided in Rule 1.9(K).
4.
A certificate may be reactivated to active status as provided in Rule 1.9(K).
I.
RETIRED STATUS CERTIFICATE
A retired certificate expires and must be renewed according to the schedule established by the Division of
Professions and Occupations pursuant to section 12-20-202, C.R.S., to maintain the certificate in retired
status.
1.
A certificate holder may transfer a certificate from active, inactive, or expired status to
retired status. To transfer a certificate to retired status, the certificate holder must:
a.
Submit an application in a manner prescribed by the Board;
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ursuant to section 12-20-202, C.R.S., to maintain the certificate in retired
status.
1.
A certificate holder may transfer a certificate from active, inactive, or expired status to
retired status. To transfer a certificate to retired status, the certificate holder must:
a.
Submit an application in a manner prescribed by the Board;
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b.
Be at least fifty-five years old; and
c.
Have held an active certificate in good standing issued by any State for a total of
at least fifteen years and must have held an active Colorado certificate for at
least two of those years.
2.
Conditions of a Retired Certificate
a.
A retired certificate holder is not required to comply with CPE requirements for
the period during which the certificate is in retired status.
b.
Retired status must be indicated by the word “Retired” (e.g., Retired CPA or
Retired Certified Public Accountant) if the certificate holder uses the CPA
designation in any manner.
c.
A retired certificate holder cannot hold out or perform any service for which an
active certificate is required under section 12-100-116(1), C.R.S.
3.
A certificate in retired status may be reactivated to active status pursuant to Rule 1.9(K).
J.
EXPIRED STATUS CERTIFICATE
1.
A certificate that is not renewed on or before the expiration date will expire; however,
there is a sixty-day “grace period” from the expiration date within which the certificate
may be renewed, subject to a late fee. A certificate holder will not be disciplined for
holding out or practicing public accounting with an expired certificate during the grace
period.
2.
Conditions of an Expired Certificate
a.
After the grace period, a certificate holder whose certificate has expired cannot
hold out or perform any service for which an active certificate is required under
section 12-100-116(1), C.R.S.
b.
A certificate holder is not required to comply with CPE requirements for the
period in which his certificate is in expired status.
3
te during the grace
period.
2.
Conditions of an Expired Certificate
a.
After the grace period, a certificate holder whose certificate has expired cannot
hold out or perform any service for which an active certificate is required under
section 12-100-116(1), C.R.S.
b.
A certificate holder is not required to comply with CPE requirements for the
period in which his certificate is in expired status.
3.
An expired certificate may be transferred to Inactive status as provided in Rule 1.9(H)(1).
4.
Allowing a certificate to expire does not relieve the certificate holder of the obligation to
complete any CPE accrued but not completed as of the date the certificate expired. The
certificate holder may be subject to discipline for failure to timely complete such CPE and
he must complete that CPE prior to reinstating the certificate to active status as provided
in Rule 1.9(K).
5.
An expired certificate may be reinstated to active status as provided in Rule 1.9(K).
K.
REACTIVATION OF A RETIRED OR INACTIVE STATUS CERTIFICATE, AND
REINSTATEMENT OF AN EXPIRED CERTIFICATE
1.
Conditions of Reactivation/Reinstatement - Less Than 2 Years
When a certificate has been in retired, inactive or expired status for less than two years, it
may be reactivated or reinstated, provided the certificate holder has met the following
requirements preceding the application receipt date.
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EMENT OF AN EXPIRED CERTIFICATE
1.
Conditions of Reactivation/Reinstatement - Less Than 2 Years
When a certificate has been in retired, inactive or expired status for less than two years, it
may be reactivated or reinstated, provided the certificate holder has met the following
requirements preceding the application receipt date.
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a.
Completed the minimum eighty hours of CPE required for the CPE reporting
period immediately preceding the CPE reporting period in which the application
for reactivation or reinstatement is received; and
b.
Completed a minimum of ten hours of CPE for each full quarter during the
current CPE reporting period in which the certificate was retired, inactive or
expired, up to eighty hours.
c.
No more than twenty percent of the required CPE can be in Personal
Development, as defined by the Fields of Study, and no more than fifty percent
can be in any combination of teaching or publishing an article or book.
2.
Conditions of Reactivation/Reinstatement - 2 Years or More but Less Than 6 Years
When a certificate has been in retired, inactive or expired status for at least two but less
than six years, it may be reactivated or reinstated, provided the certificate holder has met
the requirements set forth in section (1) of this Rule 1.9(K) and completes and passes the
Professional Ethics: The American Institute of Certified Public Accountants’
Comprehensive Course (for Licensure) or a subsequently named course.
3.
Conditions of Reactivation/Reinstatement - 6 Years or More
When a certificate has been in retired, inactive or expired status for six years or more, it
may be reactivated or reinstated, provided the certificate holder has satisfied the
conditions set forth in paragraphs (a), (b), or (c) of this Rule 1.9(K)(3).
a.
The certificate holder must:
(1)
Meet the requirements of section (2) of this Rule 1.9(K); and
(2)
Obtain:
ation/Reinstatement - 6 Years or More
When a certificate has been in retired, inactive or expired status for six years or more, it
may be reactivated or reinstated, provided the certificate holder has satisfied the
conditions set forth in paragraphs (a), (b), or (c) of this Rule 1.9(K)(3).
a.
The certificate holder must:
(1)
Meet the requirements of section (2) of this Rule 1.9(K); and
(2)
Obtain:
(a)
One year of experience as provided in Rule 1.7, except that the
experience must be obtained within two years immediately
preceding the application receipt date; or
(b)
A Master’s degree or higher with a concentration in accounting
deemed obtained from an Accredited Baccalaureate Granting
College, as provided in Rule 1.5(B), within two years immediately
preceding the application receipt date.
b.
The certificate holder may reinstate or reactivate a certificate that has been
retired, inactive or expired for six years or more by satisfying the same conditions
as an applicant for initial certification, including passing the examination, meeting
the education and experience requirements as established by statute and these
Rules, and completing and passing the AICPA Ethics Course and Examination.
c.
The certificate holder may reinstate or reactivate a certificate that has been
retired, inactive or expired for six years or more if the certificate holder holds a
certificate, license or other recognized qualification in full force and effect from a
foreign country that has entered into an MRA as provided in Rule 1.8(F), or a
certificate or license in active status issued by another state provided the other
state meets the substantial equivalency requirements defined in Rule 1.4.
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(1)
The certificate holder must submit with the application for reinstatement
or reactivation an official verification of licensure from the other state or
foreign country; and
icate or license in active status issued by another state provided the other
state meets the substantial equivalency requirements defined in Rule 1.4.
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(1)
The certificate holder must submit with the application for reinstatement
or reactivation an official verification of licensure from the other state or
foreign country; and
(2)
Attest to having completed eighty hours of CPE as described in this Rule
1.9(K).
4.
The certificate holder must meet the requirements for reinstatement or reactivation to
active status based on the total combined period during which the certificate was expired,
retired, or inactive. For example, if a certificate had been in an inactive status for three
years and a retired status for four years, the certificate holder must meet the reactivation
requirements pertaining to six years or more per Rule 1.9(K)(3).
L.
CPE REQUIRED AFTER REACTIVATION OR REINSTATEMENT TO ACTIVE STATUS
1.
When a certificate is reactivated or reinstated to active status, the CPE required for the
current CPE reporting period is ten hours for each full quarter remaining in the CPE
reporting period in which the certificate was reinstated or reactivated. No more than
twenty percent of the CPE can be in Personal Development, as defined by the Fields of
Study and, no more than fifty percent can be in any combination of teaching or publishing
an article or book. Two hours of CPE must be in Ethics, which cannot be in CR&R.
2.
CPE used for reactivation or reinstatement to active status cannot be used to satisfy the
requirements of this Rule 1.9(L).
M.
EXCEPTIONS
The Board in its discretion may grant exceptions to the requirements in this Rule 1.9 for reasons of
individual hardship or other good cause.
1.10
CONTINUING PROFESSIONAL EDUCATION (CPE)
This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), and 12-100-115, C.R.S.
A.
GENERAL INFORMATION
1
ctive status cannot be used to satisfy the
requirements of this Rule 1.9(L).
M.
EXCEPTIONS
The Board in its discretion may grant exceptions to the requirements in this Rule 1.9 for reasons of
individual hardship or other good cause.
1.10
CONTINUING PROFESSIONAL EDUCATION (CPE)
This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), and 12-100-115, C.R.S.
A.
GENERAL INFORMATION
1.
As indicated in Rule 1.9(A)(4), a certificate holder must complete ten hours of CPE for
every full quarter during which his certificate is in active status. (See also Rule 1.9(G)(2)
for specific CPE requirements including Ethics.) Changing the certificate status to retired,
inactive, or expired does not eliminate the obligation to complete CPE that was accrued
but not completed as of the date of such change. Failure to complete required CPE is
cause for discipline up to and including revocation.
2.
Active certificate holders must participate in learning activities that maintain and/or
improve their professional competence as a CPA and assure reasonable currency of
knowledge. A certificate holder’s field of employment does not limit the need for CPE.
3.
Certificate holders performing professional services need to have a broad range of
knowledge, skills, and abilities. Accordingly, acceptable CPE encompasses programs
that contribute to the development and maintenance of both technical and non-technical
professional skills.
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s field of employment does not limit the need for CPE.
3.
Certificate holders performing professional services need to have a broad range of
knowledge, skills, and abilities. Accordingly, acceptable CPE encompasses programs
that contribute to the development and maintenance of both technical and non-technical
professional skills.
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4.
Learning activities that do not maintain and/or improve professional competence as a
CPA will not be accepted for credit towards CPE. Learning activities that do not maintain
and/or improve professional competence as a CPA include, but are not limited to,
activities that teach fundamental accounting skills such as, or comparable to, first and
second semester principles of accounting or their equivalent.
5.
It is the responsibility of certificate holders to be aware of and comply with all CPE
requirements under these Rules.
6.
The Board will not grant credit for CPE that does not meet the requirements of this Rule
1.10.
B.
CPE STANDARDS
1.
Certificate holders, program sponsors, and program developers must comply with the
joint standards as defined in Rule 1.4 and incorporated herein by reference. If a Rule of
the State Board of Accountancy is inconsistent or otherwise differs from the materials
incorporated by reference herein, the Rule of the State Board of Accountancy governs. It
is ultimately the responsibility of certificate holders to ensure that any CPE completed
complies with the joint standards and these Rules.
2.
For internet based CPE programs, a minimum of seventy-five percent of the polling
questions, if used as a monitoring mechanism, must be answered by the CPA in order to
receive credit for the CPE activity.
3
Rule of the State Board of Accountancy governs. It
is ultimately the responsibility of certificate holders to ensure that any CPE completed
complies with the joint standards and these Rules.
2.
For internet based CPE programs, a minimum of seventy-five percent of the polling
questions, if used as a monitoring mechanism, must be answered by the CPA in order to
receive credit for the CPE activity.
3.
Program sponsors will be deemed in compliance with Joint Standard 14 of the joint
standards regarding CPE credit for self-study learning activities if the program developer
or vendor pilot tests the representative completion time, or computes the recommended
CPE credit using the prescribed word count formula, or attests to the appropriateness of
the recommended CPE credit for the self-study learning activity.
C.
SUBJECT MATTER
1.
The following are acceptable subjects for CPE courses as defined in the Fields of Study:
a.
Accounting
b.
Accounting (Governmental)
c.
Auditing
d.
Auditing (Governmental)
e.
Behavioral Ethics*
f.
Business Law
g.
Business Management and Organization
h.
Communications and Marketing
i.
Computer Software and Applications
j.
Economics
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k.
Finance
l.
Information Technology
m.
Management Services
n.
Personal Development
o.
Personnel/HR
p.
Production
q.
Regulatory Ethics
r.
Specialized Knowledge
s.
Statistics
t.
Taxes
2.
CPE in Behavioral Ethics or Regulatory Ethics as listed in this Rule 1.10(C) shall not
satisfy any requirements that the licensee or applicant complete and pass the AICPA
Ethics Course and Examination. Additionally, for the purpose of CPE, Behavioral Ethics
is not considered to be Personal Development.
3.
The two hours of CR&R allowed or required as CPE under these Rules count as
Regulatory Ethics as listed in this Rule 1.10(C). Satisfactory CR&R course presentations
need not be limited to two hours but may comprise and grant credit for as many hours as
necessary to satisfy the requirements of Rule 1.10(H)
y, for the purpose of CPE, Behavioral Ethics
is not considered to be Personal Development.
3.
The two hours of CR&R allowed or required as CPE under these Rules count as
Regulatory Ethics as listed in this Rule 1.10(C). Satisfactory CR&R course presentations
need not be limited to two hours but may comprise and grant credit for as many hours as
necessary to satisfy the requirements of Rule 1.10(H). However, CR&R course credit
hours granted in excess of two hours will not be considered CR&R or Ethics CPE, but the
excess hours will count as Specialized Knowledge as listed in this Rule 1.10(C).
D.
CPE CREDIT AND RECORDS DOCUMENTATION AND RETENTION
The Board may grant CPE credit to a certificate holder for participation in the activities listed in this Rule
1.10(D). The certificate holder is responsible for accurate reporting and documentation of all CPE hours
completed. Certificate holders must retain documentation for a minimum of five years from the end of the
year in which the CPE was completed. The documentation must be submitted to the Board upon request.
1.
CPE Programs
Documentation for CPE Programs must include a Certificate of Completion, Certificate of
Attendance, or Firm Transcript that includes:
a.
Name and contact information of CPE program sponsor;
b.
Participant’s name;
c.
Title of program;
d.
Fields of Study, as described in Rule 1.10(C);
e.
Date(s) the program was offered or completed;
f.
Location of program, if applicable;
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ude a Certificate of Completion, Certificate of
Attendance, or Firm Transcript that includes:
a.
Name and contact information of CPE program sponsor;
b.
Participant’s name;
c.
Title of program;
d.
Fields of Study, as described in Rule 1.10(C);
e.
Date(s) the program was offered or completed;
f.
Location of program, if applicable;
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g.
Type of instruction/delivery method;
h.
Number of CPE credits completed; and
i.
Verification by the CPE program sponsor (verification may be in the form of a
signature, seal, or other similar indicia).
2.
Teaching
a.
For purposes of this Rule 1.10, “teaching” for CPE credit means providing
instruction. To qualify for CPE, the instruction must enhance the teaching
certificate holder’s professional competence, as provided in Rule 1.10(A).
b.
The instruction must be provided either for the first time or be substantially
revised from the previous time(s) it was taught by the certificate holder.
“Substantially revised” means the majority of the presentation and/or course
content has been significantly modified. Such significant modifications may be
required due to legislative changes, changes in principle, rules, practices, or
standards, for example. Simple updates to a textbook or edition change do not
constitute a significant modification.
c.
Instructors, discussion leaders, or speakers who present a learning activity for
the first time may receive CPE credit for actual preparation time up to two times
the number of CPE credits to which participants would be entitled, in addition to
the time for presentation, subject to regulations and maximums established by
the state boards. For example, for learning activities in which participants could
receive 8 CPE credits, instructors may receive up to 24 CPE credits (16 for
preparation plus 8 for presentation)
for actual preparation time up to two times
the number of CPE credits to which participants would be entitled, in addition to
the time for presentation, subject to regulations and maximums established by
the state boards. For example, for learning activities in which participants could
receive 8 CPE credits, instructors may receive up to 24 CPE credits (16 for
preparation plus 8 for presentation). For repeat presentations, CPE credit can be
claimed only if it can be demonstrated that the learning activity content was
substantially changed and such change required significant additional study or
research.
d.
Documentation for teaching credit must include:
(1)
The name and contact information of the CPE program sponsor or
college or university;
(2)
Verification from the CPE program sponsor or college or university of
teaching the course or activity, the number of hours taught, and the
Fields of Study as described in Rule 1.10(C);
(3)
For teaching CPE, an attestation from a qualified third party, including,
but not limited to, any one of the program sponsor, developer, or author,
that the course or activity was new or substantially revised, or if the credit
is for a college or university course, an attestation from the accounting
department chair that the course was new or substantially revised;
(4)
A statement from the certificate holder describing how the activity
maintained and/or improved the certificate holder’s professional
competence as a CPA;
(5)
Activity/course syllabus or outline; and
ivity was new or substantially revised, or if the credit
is for a college or university course, an attestation from the accounting
department chair that the course was new or substantially revised;
(4)
A statement from the certificate holder describing how the activity
maintained and/or improved the certificate holder’s professional
competence as a CPA;
(5)
Activity/course syllabus or outline; and
(6)
The certificate holder’s qualifications to present the subject matter.
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3.
Panel Presentations
a.
To qualify for CPE, the panel presentation must enhance the presenting
certificate holder’s professional competence, as provided in Rule 1.10(A).
b.
CPE credit will be granted for the total number of hours of attending the panel
presentation plus preparation time equal to two times the total length of the panel
presentation divided by the number of presenters. Panel presentation hours will
be included as teaching hours for purposes of the limit on teaching hours
specified in Rule 1.9.
c.
The panel presentation must be provided either for the first time or be
substantially revised from the previous time(s) it was presented by the certificate
holder. “Substantially revised” means the majority of the subject matter content
has been significantly modified. Such significant modifications may be required
due to legislative changes, changes in principles, rules, practices, or standards,
for example.
d.
Documentation for panel presentation credit must include:
(1)
The name and contact information of the program provider/sponsor;
(2)
Verification of the number of panel hours;
(3)
The Fields of Study as described in Rule 1.10(C) or a description of the
subject material addressed by the panel;
(4)
If the subject matter has been previously presented by the certificate
holder, the certificate holder must provide a statement demonstrating
that the subject matter presented was substantially revised;
the program provider/sponsor;
(2)
Verification of the number of panel hours;
(3)
The Fields of Study as described in Rule 1.10(C) or a description of the
subject material addressed by the panel;
(4)
If the subject matter has been previously presented by the certificate
holder, the certificate holder must provide a statement demonstrating
that the subject matter presented was substantially revised;
(5)
A statement from the certificate holder describing how the activity
maintained and/or improved the certificate holder’s professional
competence as a CPA;
(6)
A presentation syllabus, outline, or agenda; and
(7)
The certificate holder’s qualifications to present the subject matter.
4.
Published Article or Book
Documentation for published article or book credit must include:
a.
Proof of publication and independent review of the article or book;
b.
The name and contact information of the independent reviewer and publisher.
“Independent reviewer” means an individual who demonstrates expertise
regarding the same or closely-related subject matter and who is not affiliated with
the certificate holder personally;
c.
A summary of hours and identify the CPE Field of Study claimed, as described in
Rule 1.10(C), with detail of time spent, with dates, and research performed; and
d.
A statement from the certificate holder describing how the activity maintained
and/or improved the certificate holder’s professional competence as a CPA.
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5.
College or University Coursework
a.
Documentation for college or university coursework must include:
(1)
For a credit course, an original official transcript or grade card from a
college or university; and
(2)
For a non-credit course, a certificate of attendance issued by the college
or university.
b.
AICPA/NASBA CPE Standards calculation for conversion of semester and
quarter hours for CPE credit:
(1)
One semester hour equals fifteen CPE credit hours, and
e or university coursework must include:
(1)
For a credit course, an original official transcript or grade card from a
college or university; and
(2)
For a non-credit course, a certificate of attendance issued by the college
or university.
b.
AICPA/NASBA CPE Standards calculation for conversion of semester and
quarter hours for CPE credit:
(1)
One semester hour equals fifteen CPE credit hours, and
(2)
One quarter hour equals ten CPE credit hours.
6.
Specialized Industry Programs
Documentation for specialized industry programs that do not comply with all applicable
CPE requirements must include:
a.
Provider-generated documentation indicating completion or attendance;
b.
A statement from the certificate holder that demonstrates that the learning activity
satisfies, or is equivalent to an activity that satisfies, the joint standards;
c.
Documentation that includes the elements outlined in Rule 1.10(D)(1)(a) through
1.10(D)(1)(i); and
d.
The number of CPE hours claimed and how those hours were computed.
E.
HARDSHIP EXCEPTIONS
A certificate holder may seek an exception to the CPE requirements by submitting a written request
justifying the exception to the Board. The Board will decide on a case-by-case basis whether good cause
has been demonstrated to waive the CPE.
F.
CPE COMPLIANCE
1.
CPE records of certificate holders may be audited after renewal periods to verify
compliance with the requirements described in Rules 1.9 and 1.10. The CPE reporting
period is a two-year period from January 1 of an even-numbered year through December
31 of an odd-numbered year during which the certificate holder must complete CPE.
2.
A certificate holder must provide all documentation and information requested regarding
CPE compliance in a manner prescribed by the Board within thirty days of a Board
request unless otherwise provided by these Rules.
G.
FAILURE TO COMPLY WITH CPE REQUIREMENTS
1
January 1 of an even-numbered year through December
31 of an odd-numbered year during which the certificate holder must complete CPE.
2.
A certificate holder must provide all documentation and information requested regarding
CPE compliance in a manner prescribed by the Board within thirty days of a Board
request unless otherwise provided by these Rules.
G.
FAILURE TO COMPLY WITH CPE REQUIREMENTS
1.
If upon review, the Board or its designee finds that a certificate holder has failed to
comply with the CPE requirements, the certificate holder has thirty days from the date of
the notice of such finding to:
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a.
Provide further evidence that the hours submitted meet the CPE requirements
established by these Rules; or
b.
Provide documentation described in Rule 1.10(D) demonstrating completion of
additional CPE hours during the CPE reporting period that meet the requirements
established by these Rules.
2.
If the Board finds that a certificate holder failed to comply with the CPE requirements, the
Board may impose discipline and/or include the certificate holder in the CPE audit of
subsequent CPE reporting periods.
H.
BOARD ACCEPTANCE OF COLORADO RULES AND REGULATIONS (CR&R) COURSES
1.
The Board will not accept or consider courses in CR&R that do not cover current
Colorado Revised Statutes and Board Rules and comply with the content outline set forth
in this Rule 1.10(H).
2.
The CR&R Content Outline represents only a general description of the materials that
must be addressed in the CR&R course. A CR&R course must address all provisions of
the applicable Colorado Revised Statutes, Board Rules, and Board Policies.
3.
The failure of a CR&R course to cover all Colorado Revised Statutes and Board Rules
and Policies is not a defense to a violation of the Act or these Rules.
4
CR&R Content Outline represents only a general description of the materials that
must be addressed in the CR&R course. A CR&R course must address all provisions of
the applicable Colorado Revised Statutes, Board Rules, and Board Policies.
3.
The failure of a CR&R course to cover all Colorado Revised Statutes and Board Rules
and Policies is not a defense to a violation of the Act or these Rules.
4.
For the purposes of CR&R, Colorado Revised Statutes, Board Rules, and legislative
documents may be considered by program sponsors as instructional materials and not as
reference or supplements to the instructional materials. The use of these documents by
program sponsors when providing CR&R courses will be considered compliant with the
Joint Standards.
5.
CR&R Content Outline:
This course discusses the Colorado Statutes and Rules that pertain to CPAs licensed to
practice in the State of Colorado. Students will become familiar with the Colorado
Revised Statutes, the Rules of the State Board of Accountancy, and the Policies adopted
by the Board currently in effect and how the statutes, rules, and policies pertain to them.
a.
Overview of Regulatory Requirements
(1)
Review of Colorado Revised Statutes (as they pertain to accountancy),
Board of Accountancy Rules, and Policies.
(2)
Legislative changes affecting the accounting profession, as applicable.
b.
State Board of Accountancy
(1)
Organization and duties of the Board
(2)
State Board of Accountancy Website (overview)
c.
Certified Public Accountant Designation
(1)
Proper use - Holding Out
(2)
Types of Certificates
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(3)
Status and maintenance of Certificates
(4)
Licensure – Examination and certification
(5)
Continuing professional education
(6)
Disclosures
(7)
Names
(8)
Mobility/Practice Privilege and reciprocity
(9)
Peer Review
d.
Professional Conduct
(1)
Unlawful Acts
(2)
Accountant/Client Privilege
(3)
Grounds for disciplinary Action
(4)
Client Records
e.
Firms
(1)
Firm Registration
oard of Accountancy
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(3)
Status and maintenance of Certificates
(4)
Licensure – Examination and certification
(5)
Continuing professional education
(6)
Disclosures
(7)
Names
(8)
Mobility/Practice Privilege and reciprocity
(9)
Peer Review
d.
Professional Conduct
(1)
Unlawful Acts
(2)
Accountant/Client Privilege
(3)
Grounds for disciplinary Action
(4)
Client Records
e.
Firms
(1)
Firm Registration
(2)
Firm Names
(3)
Peer Review
(4)
Disclosures
CR&R course materials and/or certificates of completion must include the date on which
the current version offered/taught was last updated.
1.11
PEER REVIEW REQUIREMENT
This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), 12-100-107(4), and 12-100-
114(7), C.R.S.
A.
INTRODUCTION
In the interest of public protection, the Board requires all certificate holders and registrants issuing attest
and/or compilation reports to be enrolled in and undergo peer review at least once every three years.
Upon renewal of an active certificate or registration, all certificate holders and registrants, except those
exempt from peer review as described in Rule 1.11(B), must attest to having undergone a peer review as
provided in Rule 1.11(M) within the previous three years.
B.
EXEMPTION FROM PEER REVIEW
1.
A registrant that does not issue attest or compilation reports is exempt from the peer
review requirements of this Rule 1.11.
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xcept those
exempt from peer review as described in Rule 1.11(B), must attest to having undergone a peer review as
provided in Rule 1.11(M) within the previous three years.
B.
EXEMPTION FROM PEER REVIEW
1.
A registrant that does not issue attest or compilation reports is exempt from the peer
review requirements of this Rule 1.11.
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2.
A certificate holder who does not issue attest or compilation reports is exempt from the
peer review requirements of this Rule 1.11.
3.
A certificate holder who performs public accounting within a partnership, professional
corporation, or limited liability company is exempt from the peer review requirements of
this Rule 1.11 because the partnership, professional corporation, or limited liability
company within which he performs public accounting is subject to the peer review
requirements of this Rule 1.11 if it issues attest or compilation reports.
C.
APPROVED PEER REVIEW SPONSORING ORGANIZATIONS, PROGRAMS, AND PEER
REVIEW STANDARDS
1.
The Board shall approve peer review Sponsoring Organizations, programs, and
standards and may establish a Peer Review Oversight Committee (PROC) to make
recommendations to the Board for its approval of such organizations, programs, and peer
review standards. The Board adopts the following:
a.
American Institute of Certified Public Accountants
b.
Council of the Inspectors General on Integrity and Efficiency
c.
Association of Local Government Auditors
d.
International Organization of Supreme Audit Institutions
e.
National State Auditors Association
The Board may approve other Peer Review Sponsoring Organizations and programs.
2
nd peer
review standards. The Board adopts the following:
a.
American Institute of Certified Public Accountants
b.
Council of the Inspectors General on Integrity and Efficiency
c.
Association of Local Government Auditors
d.
International Organization of Supreme Audit Institutions
e.
National State Auditors Association
The Board may approve other Peer Review Sponsoring Organizations and programs.
2.
Any Board approved peer review program and any peer reviewer performing a peer
review under this Rule 1.11 must utilize the standards for performing and reporting on
peer reviews of the American Institute of Certified Public Accountants as provided in
sections 12-100-107(4) and 12-100-114(7), C.R.S., or equivalent standards promulgated
by a recognized national accountancy organization whose standards are generally
accepted by other regulatory authorities in the United States and are acceptable to the
Board.
3.
The Board may terminate its approval of a sponsoring organization for cause following
notice and opportunity for hearing. For purposes of this paragraph, “cause” includes, but
is not limited to, failure to comply with the requirements of this Rule 1.11. The Board may
approve the peer review program and standards of a peer review program organization
not specifically identified in these regulations as Board-approved if the organization
submits evidence satisfactory to the Board that the overall program and standards are at
least equivalent to those of the AICPA Peer Review Program. At a minimum, the
evidence must include the standards, procedures, guidelines, oversight process, training
materials, and related documents used by those administering reviews, performing
reviews, having reviews, and those considering reviews for acceptance. The Board may
request any other documents/information from a peer review program organization that it
determines appropriate in deciding whether to grant approval.
4.
No certificate holder or registrant is required to become a member of any peer review
sponsoring organization.
D
s used by those administering reviews, performing
reviews, having reviews, and those considering reviews for acceptance. The Board may
request any other documents/information from a peer review program organization that it
determines appropriate in deciding whether to grant approval.
4.
No certificate holder or registrant is required to become a member of any peer review
sponsoring organization.
D.
PEER REVIEWER QUALIFICATIONS AND DUTIES
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1.
A peer reviewer must hold an active certificate, license, or active/valid registration to
practice public accounting, in good standing, issued by any state.
2.
A peer reviewer must meet the peer reviewer requirements established in the Board-
approved peer review standards.
3.
A peer reviewer is subject to all provisions of the Act and the Rules when providing peer
review services.
4.
A peer reviewer must comply with all applicable provisions of the peer review standards
when performing a peer review.
E.
RETENTION OF DOCUMENTS RELATING TO PEER REVIEWS
1.
Certificate holders and registrants subject to peer review must maintain all documentation
necessary to establish that all peer reviews conformed to peer review standards. The
documentation maintained by the certificate holder or registrant must include the
following:
a.
Documentation of the peer reviewer/reviewing firm qualifications;
b.
Copies of all the peer review documents described in Rule 111(F);
c.
All correspondence that indicates the certificate holder’s or registrant’s
concurrence or non-concurrence with the results of the peer review; and
d.
All proposed remedial actions and all information relevant to those remedial
actions, including the implementation of the remedial actions.
2
iewer/reviewing firm qualifications;
b.
Copies of all the peer review documents described in Rule 111(F);
c.
All correspondence that indicates the certificate holder’s or registrant’s
concurrence or non-concurrence with the results of the peer review; and
d.
All proposed remedial actions and all information relevant to those remedial
actions, including the implementation of the remedial actions.
2.
The documents described in Rule 1.11(E)(1) must be retained by the certificate holder or
registrant until the completion of the two most recent subsequent peer reviews or for a
period of five years from the date the peer review is accepted by the sponsoring
organization, whichever is longer. If the certificate holder or registrant ceases to practice
or merges with another certificate holder or registrant, the original certificate holder or
responsible party for the original registrant must retain all peer review documents
described in Rule 1.11(E)(1) for a period of five years from the date the peer review is
accepted by the sponsoring organization.
F.
SUBMISSION OF PEER REVIEW DOCUMENTS
1.
Submission of peer review Documents by certificate holders and registrants.
Certificate holders and registrants that have participated in a peer review must submit
upon request within thirty days all documents listed in Rule 1.11(E) and the following
documents to the Board:
a.
Peer Review Report (accepted by the Sponsoring Organization);
b.
The certificate holder’s or registrant’s letter of response (accepted by the
sponsoring organization);
c.
The acceptance letter from the sponsoring organization;
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documents to the Board:
a.
Peer Review Report (accepted by the Sponsoring Organization);
b.
The certificate holder’s or registrant’s letter of response (accepted by the
sponsoring organization);
c.
The acceptance letter from the sponsoring organization;
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d.
Letter(s) signed by the certificate holder or registrant accepting the documents
with the understanding that the certificate holder or registrant agrees to take any
actions required by the sponsoring organization; and
e.
Letter signed by the sponsoring organization notifying the certificate holder or
registrant that all required actions have been appropriately completed.
2.
Submission of Peer Review Documents by Sponsoring Organizations.
a.
The peer review documents required in Rules 1.11(F)(1)(a) through 1.11(F)(1)(c)
shall be made available by the sponsoring organization to the Board via a secure
website within thirty days of the date of the sponsoring organization’s
acceptance.
b.
The peer review letter required in Rule 1.11(F)(1)(d) shall be made available by
the sponsoring organization to the Board via a secure website within thirty days
of the date that the certificate holder or registrant signs such letter.
c.
The peer review letter required in Rule 1.11(F)(1)(e) shall be made available by
the sponsoring organization to the Board via a secure website within thirty days
of the date of the letter from the sponsoring organization notifying the certificate
holder or registrant that the required actions have been appropriately completed.
G.
EXTENSIONS FOR COMPLETING PEER REVIEWS
The Board will accept an extension for completing peer reviews granted by a sponsoring organization that
does not affect a renewal period if the Board is notified by the certificate holder or registrant within
fourteen days following the date of the letter from the sponsoring organization granting the extension
ed actions have been appropriately completed.
G.
EXTENSIONS FOR COMPLETING PEER REVIEWS
The Board will accept an extension for completing peer reviews granted by a sponsoring organization that
does not affect a renewal period if the Board is notified by the certificate holder or registrant within
fourteen days following the date of the letter from the sponsoring organization granting the extension.
Extensions may be granted for the following reasons:
1.
Health;
2.
Military service; or
3.
Other good cause clearly outside the control of the reviewed certificate holder or
registrant.
H.
BOARD ACTIONS
1.
The Board may require sponsoring organizations to provide a list of certificate holders or
registrants that are enrolled with the sponsoring organization and a list of those whose
enrollment in the peer review program has been dropped or terminated.
2.
Based upon the peer review outcome, the Board may require remedial actions, including
specified CPE courses that the certificate holder or Board-designated members, partners,
shareholders, or other CPAs within the registered firm must complete as a condition of
renewal.
3.
Information in peer review reports and other documents listed in Rules 1.11(E) and
1.11(F) are deemed reasonable grounds to initiate a complaint and/or investigation under
section 12-100-124, C.R.S.
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I.
CHANGE OF REGISTRATION STATUS – PEER REVIEW STATUS
In the event a certificate holder’s or registrant’s practice is sold, dissolved, or merged with the practice of
another certificate holder or firm, determination of the successor or predecessor’s peer review year-end(s)
and other peer review due date(s), if any, will be made in accordance with the sponsoring organization’s
guidance.
J
tancy
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I.
CHANGE OF REGISTRATION STATUS – PEER REVIEW STATUS
In the event a certificate holder’s or registrant’s practice is sold, dissolved, or merged with the practice of
another certificate holder or firm, determination of the successor or predecessor’s peer review year-end(s)
and other peer review due date(s), if any, will be made in accordance with the sponsoring organization’s
guidance.
J.
CONFIDENTIALITY OF PEER REVIEW INFORMATION
Peer reviewers shall not disclose or use for their own benefit any confidential information that comes to
their attention from certificate holders or firms in carrying out their responsibilities, except that they may
furnish such information in response to a legally enforceable subpoena.
K.
PEER REVIEW PROGRAM OVERSIGHT COMMITTEE (PROC)
1.
The Board may establish a committee to oversee sponsoring organizations’
administration of their peer review programs. The committee may consist of not more
than five members appointed by the Board.
2.
Members are appointed for terms of three years, except that the terms of those first
appointed shall be arranged so that, to the extent possible, an equal number of members
will rotate off annually. There is no limit to the number of consecutive terms a member
may serve.
3.
The committee may fill vacancies occurring during a term for the unexpired term with
members approved by the Board.
4.
Each member must hold an active Colorado CPA certificate or an Active CPA certificate
from a substantially equivalent jurisdiction.
5.
Each member must have undergone and received a peer review report with a rating of
pass on the most recent peer review for himself or his Firm.
6.
No committee member may be a member of any state board of accountancy or one of its
committees or perform any enforcement-related work for a state board.
7.
Committee responsibilities may include but are not limited to:
a.
Recommending to the Board the approval of sponsoring organizations, peer
review programs, and peer review standards;
b
on the most recent peer review for himself or his Firm.
6.
No committee member may be a member of any state board of accountancy or one of its
committees or perform any enforcement-related work for a state board.
7.
Committee responsibilities may include but are not limited to:
a.
Recommending to the Board the approval of sponsoring organizations, peer
review programs, and peer review standards;
b.
Monitoring and assessing the effectiveness of the sponsoring organizations, peer
review programs, and peer review standards; and
c.
Reporting to the Board whether sponsoring organizations are administering and
facilitating peer review programs in conformity with Board-approved peer review
standards.
8.
No member of the committee may disclose information to the Board that would identify
any specific certificate holder, registrant, or peer reviewer/reviewing firm except as
required in this Rule 1.11.
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9.
Committee members shall not disclose or use for their own benefit any confidential
information that comes to their attention in the course of performing their duties as
members of the committee except as required under the Act, these Rules, or in response
to a legally enforceable subpoena.
L.
PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD (PCAOB)
For certificate holders or registrants registered with and inspected by the PCAOB, the Board approves the
PCAOB’s inspection process for reviewing practices subject to its authority to the extent that such
practices are not included in the scope of peer review programs. Certificate holders or registrants
receiving inspections under the PCAOB must also undergo a peer review under a Board-approved peer
review program that covers the portion of the certificate holder’s or registrant’s practice not subject to the
PCAOB inspection process, should it have such a practice.
M.
PEER REVIEW REQUIREMENT
1
such
practices are not included in the scope of peer review programs. Certificate holders or registrants
receiving inspections under the PCAOB must also undergo a peer review under a Board-approved peer
review program that covers the portion of the certificate holder’s or registrant’s practice not subject to the
PCAOB inspection process, should it have such a practice.
M.
PEER REVIEW REQUIREMENT
1.
Pursuant to sections 12-100-107(4) and 12-100-114(7), C.R.S., any certificate holder or
registrant subject to peer review that is licensed, registered, or issues attest or
compilation reports:
a.
Must enroll in an approved peer review program the earlier of within thirty days of
licensure, registration, or immediately upon issuing the first attest or compilation
report;
b.
If the date of licensure, registration, or issuing the first attest or compilation report
is less than eighteen months prior to the renewal of the certificate holder or
registrant, the certificate holder or registrant must submit evidence of enrollment
in an approved peer review program with the renewal application;
c.
Must complete the peer review. “Complete” the peer review means the peer
review documents have been submitted to the sponsoring organization’s report
acceptance body as defined in the Board-approved peer review standards within
eighteen months following the report date of the initial engagement performed.
Failure to timely complete a peer review as required in this paragraph is grounds
for discipline including revocation; and,
d.
Must undergo subsequent peer reviews in accordance with Board-approved peer
review standards.
2.
A certificate holder or registrant that satisfies the requirements of Rule 1.11(M)(1) is
deemed to have undergone a peer review for the purposes of renewal.
N
gement performed.
Failure to timely complete a peer review as required in this paragraph is grounds
for discipline including revocation; and,
d.
Must undergo subsequent peer reviews in accordance with Board-approved peer
review standards.
2.
A certificate holder or registrant that satisfies the requirements of Rule 1.11(M)(1) is
deemed to have undergone a peer review for the purposes of renewal.
N.
RENEWAL ATTESTATION
As a condition of renewal, certificate holders and registrants must attest that they either: (1) have
undergone a peer review as defined in Rule 1.11(M); or (2) that they are exempt from the peer review
requirement pursuant to Rule 1.11(B).
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1.12
RULES OF PROFESSIONAL CONDUCT
Authority
The Rules of Professional Conduct are promulgated under the authority granted under sections 12-20-
204 and 12-100-105(1)(c), C.R.S., to establish and maintain high standards of competence and integrity
in the public accounting profession. The Rules of Professional Conduct apply with equal force to all
licensees, except where the wording of a specific rule indicates otherwise. As specifically provided in
Rules 1.12(M) and 1.12(N), these Rules incorporate by reference additional standards and rules from
other entities. All licensees must comply with the Board’s Rules of Professional Conduct in addition to all
standards and rules incorporated by reference. If a Rule of the State Board of Accountancy is inconsistent
or otherwise differs from the materials incorporated by reference herein, the Rule of the State Board of
Accountancy governs.
Applicability
Title 12, Article 100 of the C.R.S., requires that all licensees adhere to the Rules of Professional Conduct
s of Professional Conduct in addition to all
standards and rules incorporated by reference. If a Rule of the State Board of Accountancy is inconsistent
or otherwise differs from the materials incorporated by reference herein, the Rule of the State Board of
Accountancy governs.
Applicability
Title 12, Article 100 of the C.R.S., requires that all licensees adhere to the Rules of Professional Conduct.
The Rules of Professional Conduct that follow apply to all services performed except (a) where the
wording of the rule indicates otherwise and (b) that a licensee who is practicing outside the United States
will not be subject to discipline for departing from any of the rules stated herein as long as the licensee's
conduct is in accord with the rules of the organized accounting profession in the country in which the
licensee is practicing. However, where a licensee's name is associated with financial statements under
circumstances that would entitle the reader to assume that United States practices were followed, the
licensee must comply with the requirements of Rules 1.12(B), 1.12(E), and 1.12(F).
A.
DEFINITIONS
1.
Integrity
An element of character fundamental to professional recognition which requires a
licensee to: (1) be honest and candid within the constraints of client confidentiality; (2)
observe both the form and the spirit of technical and ethical standards; and (3) keep
service and the public trust above personal gain and advantage. It is the quality from
which the public trust derives and the benchmark against which a licensee must
ultimately test all decisions. It can accommodate the inadvertent error and the honest
difference of opinion. It cannot accommodate dishonesty, deceit, or subordination of
principle.
2.
Objectivity
Requires a licensee to: (1) be impartial, intellectually honest, and free of conflicts of
interest, except as otherwise provided under Rule 1.12(C)(5); (2) protect the integrity of
their work regardless of service or capacity; and (3) avoid any subordination of their
judgment.
3
he honest
difference of opinion. It cannot accommodate dishonesty, deceit, or subordination of
principle.
2.
Objectivity
Requires a licensee to: (1) be impartial, intellectually honest, and free of conflicts of
interest, except as otherwise provided under Rule 1.12(C)(5); (2) protect the integrity of
their work regardless of service or capacity; and (3) avoid any subordination of their
judgment.
3.
Independence
The absence of relationships that impair or appear to impair a licensee's objectivity in
performing an engagement in which the licensee will issue an attestation report or
opinion, unless the lack of independence is disclosed in the report or opinion.
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4.
Due Care
The discharge of responsibilities to clients, employers, and the public with diligence and
competence which requires a licensee to: (1) render services carefully and in a timely
manner; (2) be thorough; (3) observe applicable technical and ethical standards; and (4)
plan and supervise adequately any professional activity for which the licensee is
responsible.
5.
Competence
The knowledge and ability to assure that the quality of the services rendered meets
professional standards. It requires a licensee to: (1) be responsible for assessing and
evaluating whether the education, experience, and judgment of the licensee and/or the
personnel providing the services is adequate for the responsibility assumed; and (2)
maintain a commitment to learning and professional improvement that continues
throughout a licensee's professional life.
6.
Contingent Fee
A fee established for the performance of any service pursuant to an arrangement in
which no fee will be charged unless a specific finding or result is attained, or in which the
amount of the fee is otherwise dependent upon the finding or result of such service
maintain a commitment to learning and professional improvement that continues
throughout a licensee's professional life.
6.
Contingent Fee
A fee established for the performance of any service pursuant to an arrangement in
which no fee will be charged unless a specific finding or result is attained, or in which the
amount of the fee is otherwise dependent upon the finding or result of such service.
Solely for purposes of these Rules, fees are not regarded as being contingent if fixed by
courts or governmental entities acting in a judicial or regulatory capacity, or in tax matters
if determined based upon the results of judicial proceedings or the findings of
governmental agencies acting in a judicial or regulatory capacity, or there is a reasonable
expectation of substantive review by a taxing authority.
B.
INDEPENDENCE
When a licensee provides auditing or other attestation services, they shall be independent in fact and
appearance and shall conform to the independence standards provided in the AICPA Professional
Standards, whether or not the individual CPA or Firm are members of the AICPA. When the licensee
performs services regulated by the SEC, PCAOB, or the U.S. General Accounting Office (GAO), they also
shall conform to the independence standards established by those bodies for those services in effect and
incorporated by reference in Rule 1.4(C).
C.
INTEGRITY AND OBJECTIVITY
In the performance of any professional service, licensees shall maintain objectivity and integrity, shall be
free of conflicts of interest except as otherwise provided in paragraph (5) of this Rule 1.12(C), and shall
not knowingly misrepresent facts or subordinate their judgment to others.
1
ies for those services in effect and
incorporated by reference in Rule 1.4(C).
C.
INTEGRITY AND OBJECTIVITY
In the performance of any professional service, licensees shall maintain objectivity and integrity, shall be
free of conflicts of interest except as otherwise provided in paragraph (5) of this Rule 1.12(C), and shall
not knowingly misrepresent facts or subordinate their judgment to others.
1.
A licensee shall not engage in fraud, deceit, or any form of dishonesty in connection with
or relating to offering or providing a professional service, including, but not limited to,
knowingly obtaining or exercising control over anything of value without authorization, as
a result of, in connection with, or otherwise relating to offering or providing a professional
service.
2.
A licensee shall not engage in fraud, deceit, or any form of dishonesty in relation to the
Board, including, but not limited to, any act or omission, any response, representation,
application, form, or communication with or to the Board whether oral or written.
3.
A licensee shall not knowingly misrepresent facts or subordinate his judgment to others.
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a.
Misrepresentations of fact or subordination of judgment include, but are not
limited to:
(1)
Knowingly making, or permitting or directing another to make, false or
misleading entries in an entity's financial statements or records;
.
3.
A licensee shall not knowingly misrepresent facts or subordinate his judgment to others.
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a.
Misrepresentations of fact or subordination of judgment include, but are not
limited to:
(1)
Knowingly making, or permitting or directing another to make, false or
misleading entries in an entity's financial statements or records;
(2)
Misrepresenting or failing to disclose material facts to an external or
internal auditor, or accountant; and
Taking a position in a tax return or advising a tax client to take a position
that does not have a realistic possibility of being sustained on its merits
in an administrative or judicial review unless the position is not frivolous
and is adequately disclosed as provided in the AICPA Professional
Standards, Statements on Standards for Tax Services.
4.
Subordination of judgment or principle. When disagreements and disputes arise in the
course of providing professional services by a licensee related to the recording of
transactions or preparing financial statements, a licensee shall determine whether (a) the
entry or the failure to record a transaction in the records, or (b) the financial statement
presentation or the nature or omission of disclosure in the financial statements, as
proposed, represents the use of an acceptable alternative and does not materially
misrepresent the facts.
a.
If, after appropriate research or consultation, the licensee concludes that the
matter has authoritative support or does not result in a material
misrepresentation, the licensee need do nothing further.
b.
If the licensee concludes that the matter results in a material misrepresentation
or misstatement, the licensee shall make any concerns known to the appropriate
higher level(s) of management within the organization (for example, the
supervisor's immediate superior, senior management, the audit committee or
equivalent, the board of directors, or the company's owners)
see need do nothing further.
b.
If the licensee concludes that the matter results in a material misrepresentation
or misstatement, the licensee shall make any concerns known to the appropriate
higher level(s) of management within the organization (for example, the
supervisor's immediate superior, senior management, the audit committee or
equivalent, the board of directors, or the company's owners). Licensees shall
document their understanding of the facts, the accounting principles involved, the
application of those principles to the facts, and the parties with whom these
matters were discussed.
c.
If, after discussing their concerns with the appropriate person(s) in the
organization, the licensee concludes that appropriate action was not taken, he
must assess his continuing relationship with the client or employer.
d.
The licensee also must assess any responsibility that may exist to communicate
to third parties, such as regulatory authorities or the client or employer's (former
employer's) external accountant.
5.
Conflict of Interest. A conflict of interest may occur if a licensee performs a professional
service for a client or employer and the licensee has a relationship with another person,
product, or service that could, in the licensee’s professional judgment, be viewed by the
client, employer, or other appropriate party as impairing the licensee’s objectivity.
a.
The licensee may perform the professional service if:
(1)
The licensee reasonably believes that the professional service can be
performed with objectivity;
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(2)
The relationship is comprehensively disclosed to the client, employer, or
other appropriate party; and
er appropriate party as impairing the licensee’s objectivity.
a.
The licensee may perform the professional service if:
(1)
The licensee reasonably believes that the professional service can be
performed with objectivity;
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(2)
The relationship is comprehensively disclosed to the client, employer, or
other appropriate party; and
(3)
The licensee obtains the informed written consent of the client, employer,
or other appropriate party.
b.
Certain professional engagements, including audits, reviews, and other attest
services require Independence. Independence impairments cannot be eliminated
by disclosure and consent.
D.
COMMISSIONS, REFERRAL FEES, AND CONTINGENT FEES
1.
Permitted Commissions and Contingent Fees. A licensee who holds out and who is not
otherwise prohibited by this Rule from receiving a commission or contingent fee shall
disclose to the recipient of professional services or the buyer of a product, in writing, the
nature, amount, and source of any contingent fee or commission prior to performing the
professional services or making the sale that generates the commission or contingent
fee.
2.
Referral Fees. A licensee who holds out and who accepts a referral fee for
recommending or referring a service or product, or who pays a referral fee to obtain a
client, shall disclose to that client, or the client or other person receiving the service or
product, in writing, the nature, amount, and source of the referral fee. The written
notification shall be provided to the client or other person prior to the time the client or
other person engages the licensee or other service provider or makes the purchase that
generates the referral fee.
3.
Contingent Fees in Tax Matters. A licensee shall not prepare an original or amended tax
return or claim for refund for a contingent fee
, amount, and source of the referral fee. The written
notification shall be provided to the client or other person prior to the time the client or
other person engages the licensee or other service provider or makes the purchase that
generates the referral fee.
3.
Contingent Fees in Tax Matters. A licensee shall not prepare an original or amended tax
return or claim for refund for a contingent fee. For purposes of this Rule, fees are not
regarded as contingent if fixed by courts or other public authorities, or if based on the
results of judicial proceedings or the findings of governmental agencies. A fee is
considered to be based on the findings of a governmental agency if, at the time of a fee
arrangement, a licensee can demonstrate a reasonable expectation of substantive
consideration by an agency with respect to the licensee's client. In the case of the
preparation of an original tax return, such expectation is not deemed reasonable.
4.
Prohibited Commissions and Contingent Fees. A licensee that performs: (1) an audit or
review of a financial statement; (2) a compilation of a financial statement when the
licensee expects, or reasonably might expect, that a third party will use the financial
statement when the licensee’s compilation report does not disclose a lack of
independence; or (3) an examination of prospective financial information, shall not:
a.
Receive a commission or, for a commission, recommend or refer to that client
any product or service, or, for a commission, recommend or refer to any person
any product or service to be supplied by that client; or
b.
Receive a contingent fee for performing the services listed in paragraph (4) of
this Rule 1.12(D), nor shall the licensee perform for that client any other
professional service for a contingent fee
mission or, for a commission, recommend or refer to that client
any product or service, or, for a commission, recommend or refer to any person
any product or service to be supplied by that client; or
b.
Receive a contingent fee for performing the services listed in paragraph (4) of
this Rule 1.12(D), nor shall the licensee perform for that client any other
professional service for a contingent fee.
This prohibition on commissions and contingent fees shall apply during the fee
period in which the licensee is or was engaged to perform any of the services
listed in paragraph (4) of this Rule 1.12(D) and the period covered by any
historical financial statements involved in such services.
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E.
PROFESSIONAL COMPETENCE AND COMPLIANCE WITH APPLICABLE TECHNICAL
STANDARDS
A licensee shall comply with the following:
1.
General Standards.
a.
Professional Competence - A licensee shall undertake only those professional
services that the licensee can reasonably expect to complete with professional
competence.
b.
Due Care - A licensee shall exercise due care in the performance of professional
services.
c.
Planning and Supervision - A licensee shall adequately plan and supervise the
performance of services.
d.
Sufficient Relevant Data - A licensee shall obtain sufficient relevant data to afford
a reasonable basis for conclusions or recommendations in relation to any
professional service performed.
2.
Auditing Standards.
A licensee shall not permit the licensee's name to be associated with financial statements
in such a manner as to imply that the licensee is acting as an independent certified public
accountant, unless the licensee has complied with all applicable auditing standards
fford
a reasonable basis for conclusions or recommendations in relation to any
professional service performed.
2.
Auditing Standards.
A licensee shall not permit the licensee's name to be associated with financial statements
in such a manner as to imply that the licensee is acting as an independent certified public
accountant, unless the licensee has complied with all applicable auditing standards.
Applicable auditing standards shall include those defined as generally accepted auditing
standards by the AICPA, such as Statements on Auditing Standards and Government
Auditing Standards as promulgated by the GAO or standards of any successor
organizations, including interpretations.
3.
Accounting Principles.
If financial statements or other financial data contain any material departure from an
accounting principle(s) promulgated by the Financial Accounting Standards Board
(FASB), the Government Accounting Standards Board (GASB), their predecessor entities
and other entities having similar generally recognized authority or jurisdiction to establish
such principle(s), a licensee shall not:
a.
Express an opinion or state affirmatively that the financial statements or other
financial data of any entity are presented in conformity with generally accepted
accounting principles; or
b.
State that the licensee is not aware of any material modifications that should be
made to such statements or data for them to be in conformity with generally
accepted accounting principles.
If, however, the statements or data contain such a departure and the licensee
can demonstrate that unusual circumstances would have caused the financial
statements to be otherwise misleading, the licensee can comply with this Rule by
conspicuously disclosing and describing in the workpapers the departure, its
approximate effects if practicable, and the reasons why compliance with the
principle would result in a misleading statement.
CODE OF COLORADO REGULATIONS
3 CCR 705-1
State Board of Accountancy
l circumstances would have caused the financial
statements to be otherwise misleading, the licensee can comply with this Rule by
conspicuously disclosing and describing in the workpapers the departure, its
approximate effects if practicable, and the reasons why compliance with the
principle would result in a misleading statement.
CODE OF COLORADO REGULATIONS
3 CCR 705-1
State Board of Accountancy
49
4.
Prospective Financial Information.
Licensees shall not permit their name to be used in conjunction with any prospective
financial information in a manner that may lead to the belief that the licensees vouch for
the achievability of the prospective financial information. Licensees must comply with
standards in this area promulgated by the AICPA or by other entities having similar
generally recognized authority or jurisdiction over the service provided.
5.
Other Attestation Standards.
Licensees shall not permit their name to be associated with assertions or conclusions
about the reliability of a written representation of another party unless they have complied
with the Statements on Standards for Attestation Engagements (SSAE) promulgated by
the AICPA or by other entities having similar generally recognized authority or jurisdiction
over the service provided.
F.
OTHER PROFESSIONAL STANDARDS
In performing tax services, accounting, review and compilation services, attestation engagements,
personal financial planning, business valuation, litigation support and expert witness services, and
consulting services, a licensee shall conform with Rule 1.12(E), any other professional standards
applicable to such services as contained in the AICPA Professional Standards, and any other rules
established or incorporated by reference herein.
G.
ACTING THROUGH OTHERS
Licensees shall not knowingly permit others to carry out on their behalf, either with or without
compensation, acts or omissions that, if carried out by the licensees, would place them in violation of
these Rules or the Act
ards
applicable to such services as contained in the AICPA Professional Standards, and any other rules
established or incorporated by reference herein.
G.
ACTING THROUGH OTHERS
Licensees shall not knowingly permit others to carry out on their behalf, either with or without
compensation, acts or omissions that, if carried out by the licensees, would place them in violation of
these Rules or the Act. Similarly, in supervising subordinates, licensees shall not accept or condone
conduct in violation of these Rules or the Act.
H.
CONFIDENTIAL CLIENT AND EMPLOYER INFORMATION
1.
General Rule.
A licensee shall not without the specific consent of their client or employer disclose or use
for his own benefit any personal or business related information pertaining to a client or
the employer of the licensee, which information is obtained from any source or developed
by the licensee in the course of employment or performing professional services. Such
information is deemed confidential. Information obtained as part of a proposed acquisition
or in evaluating the acquisition or merger of an accounting practice shall not be disclosed
or used to the licensee's benefit.
2.
Acceptable Disclosures. Rule 1.12(H)(1) shall not apply:
a.
If information is disclosed with the specific consent of the client or the employer
of the licensee.
b.
If information is disclosed pursuant to a subpoena or summons issued with
respect to t
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