References
are to North Carolina Administrative Code, Title 21 - Occupational Licensing
Boards, Chapter 08 - Board of Certified Public Accountant Examiners.
SUBCHAPTER 08G - CONTINUING PROFESSIONAL EDUCATION
SECTION .0400 - CPE REQUIREMENTS
08G .0401 CPE REQUIREMENTS FOR CPAS
(a) In order for a CPA to receive CPE credit for
a course:
(1) the CPA must attend or complete the
course;
(2) the course must meet the requirements
set out in 21 NCAC 08G .0404(a) or (c); and
(3) the course must increase the
professional competency of the CPA.
(b) The Board registers sponsors of CPE courses.
A CPE course provided by a registered sponsor is presumed to meet the CPE
requirements set forth in 21 NCAC 08G .0404(a) if the sponsor has indicated
that the course meets those requirements. However, it is up to the individual
CPAs attending the course and desiring to claim CPE credit for it to assess
whether it increases their professional competency.
(c) A course that increases the professional
competency of a CPA is a course in an area of accounting in which the CPA
practices or is planning to practice in the near future, or in the area of
professional ethics or an area related to the profession.
(d) Because of differences in the education and
experience of CPAs, a course may contribute to the professional competence of
one CPA but not another. Each CPA must therefore exercise judgment in selecting
courses for which CPE credit is claimed and choose only those that contribute
to that CPA's professional competence.
(e) Active CPAs must complete 40 CPE hours,
computed in accordance with 21 NCAC 08G .0409 by December 31 of each year,
except as follows:
(1) CPAs having certificate applications
approved by the Board in April-June must complete 30 CPE hours during the same
calendar year.
(2) CPAs having certificate applications
approved by the Board in July-September must complete 20 CPE hours during the
same calendar year.
(3) CPAs having certificate applications
approved by the Board in October-December must complete 10 CPE hours during the
same calendar year.
(f) There are no CPE requirements for retired or
inactive CPAs.
(g) Any CPE hours completed during the calendar
year in which the certificate is approved may be used for that year's
requirement even if the hours were completed before the certificate was
granted. When a CPA has completed more than the required number of hours of CPE
in any one calendar year, the extra hours, not in excess of 20 hours, may be
carried forward and treated as hours earned in the following year. A CPA may
not claim CPE credit for courses taken in any year prior to the year of
certification.
(h) Any CPE hours used to satisfy the
requirements for change of status as set forth in 21 NCAC 08J .0105, for
reinstatement as set forth in 21 NCAC 08J .0106, or for application for a new
certificate as set forth in 21 NCAC 08I. 0104 may also be used to satisfy the
annual CPE requirement set forth in Paragraph (e) of this Rule.
(i) It is the CPA's responsibility to maintain
records substantiating the CPE credits claimed for the current year and for each
of the four calendar years prior to the current year.
(j)
A non-resident licensee may satisfy the annual CPE requirements
including 21 NCAC 08G .0401 in the jurisdiction in which he or she is licensed
and currently works or resides. If there is no annual CPE requirement in the
jurisdiction in which he or she is licensed and currently works or resides, he
or she must comply with (e) of this rule.
08G .0403 QUALIFICATION OF CPE SPONSORS
(a) The Board registers sponsors of CPE courses
and not courses. The Board will maintain a list of sponsors which have agreed
to conduct programs in accordance with the standards for CPE set forth in this
Subchapter. Such sponsors shall indicate their agreement by signing a CPE
program sponsor agreement form provided by the Board. These sponsors are
registered sponsors.
(b) Notwithstanding Paragraph (a) of this Rule,
sponsors of continuing education programs which are listed in good standing on
the National Registry of CPE Sponsors maintained by NASBA are considered to be
registered CPE sponsors with the Board. These sponsors are not required to sign
a CPE program sponsor agreement form with this Board.
(c) In the CPE program sponsor agreement with the
Board, the registered sponsor shall agree to:
(1) allow the Board to audit courses offered
by the sponsor in order to determine if the sponsor is complying with the terms
of the agreement and shall refund the registration fee to the auditor if
requested by the auditor;
(2) have an individual who did not prepare
the course review each course to be sure it meets the standards for CPE;
(3) state the following in every brochure or
other publication or announcement concerning a course:
(A) the general content of the course and
the specific knowledge or skill taught in the course;
(B) any prerequisites for the course and any
advance preparation required for the course and if none, that should be stated;
(C) the level of the course, such as basic,
intermediate, or advanced;
(D) the teaching methods to be used in the
course;
(E) the amount of sponsor recommended CPE
credit a CPA who takes the course could claim; and
(F) the date the course is offered, if the
course is offered only on a certain date, and, if applicable, the location;
(4) ensure that the instructors or
presenters of the course are qualified to teach the subject matter of the
course and to apply the instructional techniques used in the course;
(5) evaluate the performance of an
instructor or presenter of a course to determine whether the instructor or presenter
is suited to serve as an instructor or presenter in the future;
(6) encourage participation in a course only
by those who have the appropriate education and experience;
(7) distribute course materials to
participants in a timely manner;
(8) use physical facilities for conducting
the course that are consistent with the instructional techniques used;
(9) assign accurately the number of CPE
credits each participant may be eligible to receive by either:
(A) monitoring attendance at a group course;
or
(B) testing in order to determine if the
participant has learned the material presented;
(10) provide, before the course's conclusion,
an opportunity for the attendees to evaluate the quality of the course by
questionnaires, oral feedback, or other means, in order to determine whether
the course's objectives have been met, its prerequisites were necessary or
desirable, the facilities used were satisfactory, and the course content was
appropriate for the level of the course;
(11) inform instructors and presenters of the
results of the evaluation of their performance;
(12) systematically review the evaluation
process to ensure its effectiveness;
(13) retain for five years from the date of
the course presentation or completion:
(A) a record of participants completing
course credit requirements;
(B) an outline of the course (or
equivalent);
(C) the date and location of presentation;
(D) the participant evaluations or summaries
of evaluations;
(E) the documentation of the instructor's
qualifications; and
(F) the number of contact hours recommended
for each participant;
(14) have a visible, continuous and
identifiable contact person who is charged with the administration of the
sponsor's CPE programs and has the responsibility and is accountable for
assuring and demonstrating compliance with these rules by the sponsor or by any
other organization working with the sponsor for the development, distribution
or presentation of CPE courses;
(15) develop and promulgate policies and procedures
for the management of grievances including, but not limited to, tuition and fee
refunds;
(16) possess a budget and resources that are
adequate for the activities undertaken and their continued improvement; and
(17) provide persons completing course
requirements with written proof of completion indicating the participant's
name, the name of the course, the date the course was held or completed, the
sponsor's name and address, and the number of CPE hours calculated and
recommended in accordance with 21 NCAC 08G .0409.
(d) Failure of a registered sponsor to comply
with the terms of the CPE program sponsor agreement shall be grounds for the
Board to terminate the agreement, to remove the registered sponsor's name from
the list of registered sponsors and to notify the public of this action.
(e) Failure of a National Registry of CPE Sponsor
to comply with the terms of this rule shall be grounds for the Board to
disqualify the sponsor to be registered as a CPE sponsor with this Board and to
notify NASBA and the public of this action.
08G .0404 REQUIREMENTS FOR CPE CREDIT
(a) A CPA shall
not be granted CPE credit for a course unless the course:
(1) is in one of the seven fields of study recognized by the Board and set forth in Paragraph
(b) of this Rule;
(2) is developed by an individual who has
education and work experience in the subject matter of the course; and
(3) uses
instructional techniques and materials that are current and accurate.
(b) The seven fields of study recognized by the Board
are:
(1) Accounting and Auditing
(A) Accountancy
(B) Accounting – Governmental
(C) Auditing
(D) Auditing – Governmental
(2) Consulting Services
(A) Administrative Practice
(B) Social Environment of Business
(3) Ethics
(A) Behavioral Ethics
(B) Regulatory Ethics
(4) Management
(A) Business Law
(B) Business Management and Organization
(C) Finance
(D) Management Advisory Services
(E) Marketing
(5) Personal Development
(A)
Communications
(B) Personal Development
(C) Personnel/HR
(6) Special Knowledge and Applications
(A) Computer Science
(B) Economics
(C) Mathematics
(D) Production
(E) Specialized Knowledge and Applications
(F) Statistics
(7) Tax
(c)
The following may qualify as acceptable types of continuing education programs,
provided the programs comply with the requirements set forth in Paragraph (a)
of this Rule:
(1) professional
development programs of national and state accounting organizations;
(2) technical sessions at meetings of national
and state accounting organizations and their chapters;
(3) courses
taken at regionally accredited colleges and universities;
(4) educational programs that are designed and
intended for continuing professional education activity conducted within an
association of accounting firms; and
(5) correspondence courses that are designed
and intended for continuing professional education activity.
(d) CPE credit may be granted for teaching a CPE
course or authoring a publication as long as the preparation to teach or write
increased the CPA's professional competency and was in one of the seven fields of study recognized by the Board and
set forth in Paragraph (b) of this Rule.
(e) CPE credit shall not be granted for a
self-study course if the material that the CPA must study to take the
examination is not designed for CPE purposes. This includes periodicals,
guides, magazines, subscription services, books, reference manuals and supplements
which contain an examination to test the comprehension of the material read.
(f) A CPA may claim credit for a course offered
by a non–registered sponsor provided that the course meets the requirements of
21 NCAC 08G .0403(c), 21 NCAC 08G .0404, and 21 NCAC 08G .0409. The CPA shall
maintain documentation proving that the course met these standards.
08G .0405
ADMINISTRATION OF REQUIREMENT
Forms
for reporting CPE hours will be furnished by the Board. The Board may audit on
a test basis information submitted by licensees who may apply for a renewal
license.
08G .0406 COMPLIANCE WITH CPE
REQUIREMENTS
(a) All active CPAs shall file with the Board a
completed CPE reporting form by the July 1 renewal date of each year.
(b) If a CPA fails to complete the CPE
requirements prior to the end of the previous calendar year but the CPA has
completed them by June 30, the Board may:
(1) issue a letter of warning for the first
such failure within a five calendar year period; and
(2) deny the renewal of the CPA's
certificate for a period of not less than 30 days and until the CPA meets the
reinstatement requirements set forth in 21 NCAC 08J .0106 for the second such
failure within a five calendar year period.
08G .0409 COMPUTATION OF CPE CREDITS
(a) Group Courses: Non-College. CPE credit for a
group course that is not part of a college curriculum shall be given based on
contact hours. A contact hour shall be 50 minutes of instruction. One-half
credits shall be equal to 25 minutes after the first credit hour has been
earned in a formal learning activity. For example, a group course lasting 100
minutes shall be two contact hours and thus two CPE credits. A group course
lasting 75 minutes shall be only one and one-half contact hours and thus one
and one-half CPE credits. When individual segments of a group course shall be
less than 50 minutes, the sum of the individual segments shall be added to
determine the number of contact hours. For example, five 30-minute
presentations shall be 150 minutes, which shall be three contact hours and
three CPE credits. No credit shall be allowed for a segment unless the
participant completes the entire segment.
(b)
Completing a College Course. CPE credit for completing a college course in the
college curriculum shall be granted based on the number of credit hours the
college gives the CPA for completing the course. One semester hour of college
credit shall be 15 CPE credits; one quarter hour of college credit shall be 10
CPE credits; and one continuing education unit (CEU) shall be 10 CPE credits.
However, under no circumstances shall CPE credit be given to a CPA who audits a
college course.
(c) Self Study. CPE credit for a self-study
course shall be given based on the average number of contact hours needed to
complete the course. The average completion time shall be allowed for CPE
credit. A sponsor must determine, on the basis of pre-tests, the average number
of contact hours it takes to complete a course.
(d) Instructing a CPE Course. CPE credit for teaching
or presenting a CPE course for CPAs shall be given based on the number of
contact hours spent in preparing and presenting the course. No more than 50
percent of the CPE credits required for a year shall be credits for preparing
for and presenting CPE courses. CPE credit for preparing for and presenting a
course shall be allowed only once a year for a course presented more than once
in the same year by the same CPA.
(e) Authoring a Publication. CPE credit for
published articles and books shall be given based on the number of contact
hours the CPA spent writing the article or book. No more than 25 percent of a
CPA's required CPE credits for a year shall be credits for published articles
or books. An article written for a CPA’s client or business letter is not
applicable for this CPE credit.
(f) Instructing a College Course. CPE credit for
instructing a graduate level college course shall be given based on the number
of credit hours the college gives a student for successfully completing the
course, using the calculation set forth in Paragraph (b) of this Rule. Credit
shall not be given for instructing an undergraduate level course. In addition,
no more than 50 percent of the CPE credits required for a year shall be credits
for instructing a college course and, if CPE credit shall also be claimed under
Paragraph (d) of this Rule, no more than 50 percent of the CPE credits required
for a year shall be credits claimed under Paragraph (d) and this Paragraph. CPE
credit for instructing a college course shall be allowed only once for a course
presented more than once in the same year by the same CPA.
08G .0410 PROFESSIONAL
ETHICS AND CONDUCT CPE
(a) As part of the annual CPE requirement, all
active CPAs shall complete CPE on professional ethics and conduct. They shall
complete either two hours in a group study format or in a self-study format of
a course on regulatory or behavioral professional ethics and conduct. This CPE
shall be offered by a CPE sponsor registered with the Board or with NASBA
pursuant to 21 NCAC 08G .0403(a) or (b).
(b) A non-resident licensee whose primary office
is in