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Senate Passes Thompson's CPA Bill
SB 251 Would Improve
Enforcement, Provide "Substantial Equivalency"
HARRISBURG -- The
State Senate today approved Senate Bill 251, a measure introduced by Senator
Robert J. Thompson, R-19th District, to update the Pennsylvania CPA Law to
strengthen enforcement standards to protect the public while providing
“substantial equivalency” and enable the Commonwealth’s accountants to do more
business outside of the state.
SB 251 would strengthen the
enforcement powers of the state Board of Accountancy and broaden disclosure,
reporting and “peer group review process” policies to ensure the highest ethical
and professional standards are upheld.
“The unethical and illegal
actions of a small number of CPAs, as evidenced by the corporate scandals of the
past few years, make this an essential piece of legislation. This bill will
help ensure that business practices by CPAs and their clients are above
reproach,” Senator Thompson said. “In turn, this will help restore public
confidence in business and protect investors from the lavish abuses that were
brought to light by the Tyco case convictions.”
Tyco International Chief
Executive Dennis Kozlowski and finance chief Mark Swartz were found guilty on
Friday of stealing more than $150 million, Kozlowski was found guilty of
conspiracy, fraud and falsifying business records and Swartz was found guilty of
grand larceny, securities fraud and eight of nine counts of falsifying business
records.
SB 251 would also make changes
to the education and experience requirements established by the Commonwealth and
overseen by the State Board of Accountancy to meet interstate standards set by
the Uniform Accountancy Act (UAA) developed by the American Institute of
Certified Public Accountants and the National Association of State Boards of
Accountancy.
“Pennsylvania’s CPA law has not
been updated since 1996. The changes under Senate Bill 251 would bring
Pennsylvania in line with the nationally accepted standards for Certified Public
Accountants,” Senator Thompson said. “By establishing ‘substantial
equivalency,’ we will open up new opportunities for Pennsylvania’s CPAs to do
business in other states. This is particularly valuable for those who practice
in communities near Pennsylvania’s state borders.”
SB 251 makes several important
changes to the CPA Law including mandating 150 hours of accounting education to
meet UAA standards, while strengthening the State Board of Accountancy’s power
to prosecute violators of the Law.
The post-secondary education
requirement would go into effect as of 2010. Conversely, the accounting
experience requirement for a CPA certification would be set at a standard of one
year. Currently, people who have completed specified post-graduate education
need one year, while two-years of experience are necessary for those with only a
college degree.
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