RESPONSIBILITY TO THE PUBLIC

The right to use the title Certified Public Accountant, or CPA, in Arizona is conferred and regulated by the Arizona State Board of Accountancy through a licensing procedure. This is designed to maintain public confidence, and is accomplished in part by the CPA keeping current in knowledge, skills and abilities in relevant areas. The Board assures that CPAs provide quality, competent services through requirements for Continuing Professional Education (CPE).

Arizona CPAs are required to provide information about CPE taken during each registration period, which is two years. CPAs in public accounting firms, that is firms that offer CPA services to the public, businesses or other institutions, must present at least 80 hours of CPE at each renewal. CPAs who work for businesses, government, schools, non-profit organizations and other entities must provide 60 hours of CPE for each two-year registration.

WHAT IS A CPE?

WHAT CPE PROGRAMS QUALIFY

The Board does not pre-approve CPE providers.  A.A.C. R4-1-453(C) addresses the issue of what qualifies a program for CPE.  Providers please note that regulation places responsibility for viable continuing education upon the individual CPA.

Pursuant to A.A.C. R4-1-453(C), credit usually is given for CPE programs that provide a formal course of learning at a professional level. The programs must contribute directly to the professional competence of the participants and:

1. Be developed by knowledgeable and experienced persons
2. Provide written outlines or full text
3. Be administered by an organization and instructor who knows the subject
4. Utilize teaching methods consistent with the program content

Introductory computer courses may be used for CPE, but no more than 20 CPE hours may be used for each renewal cycle, and courses cannot be repeated for credit.

EXCEPTIONS TO THE CPE REQUIREMENT

Exceptions are granted from CPE for registrants if they are retired or inactive in accounting and over 60 years of age. Upon written request, the board may consider exemption from CPE if a registrant is disabled or ill, or for other hardships that prevent completion of CPE. Requests for exemption shall be submitted with the registration renewal.

CPE NEEDED WHEN ENTERING PUBLIC ACCOUNTING

Because CPAs in public accounting are required to have 80 CPE each two years, registered CPAs entering from private accounting or other fields must notify the Board of this change and complete 80 hours of CPE before practicing public accounting. CPE already earned in the registration period will count toward this requirement. This requirement does not apply to first-time registrants. Their CPE will be prorated to the next registration.

CPE CARRYOVER NOT ACCEPTED

CPE taken during a registration period may be used for renewal of the next registration. If you have more than the required minimum number of CPE, you may not carry over CPE to the next registration period [A.A.C R4-1-453(D)(11)]. Conversely, if you are short CPE for your registration, and you make them up after the end of the current registration period, those CPE may not be used toward your next registration.

CPE EARNED AFTER SENDING IN RENEWAL

You may count CPE which you expect to earn/complete during your current renewal cycle by listing it on your current CPE reporting form.  List the CPE courses on the CPE reporting form which you expect to complete by the end of your cycle; however, you may be asked to provide proof of the completion of the CPE.  (Pursuant to A.A.C R4-1-453, all registrants are subject to a CPE audit of courses listed on the CPE reporting form.)  Remember: pursuant to A.C.C. R4-1-453(D)(11), CPE earned during your current renewal cycle may NOT be carried forward to a subsequent renewal cycle.

HOW TO REPORT CPE

At the time of registration renewal, you complete the reverse side of the form listing classes, correspondence and electronic programs, lectures, forums, etc. in the top section. Service as a lecturer or discussion leader and published materials are listed below that. You list the sponsoring organization, title of program, date completed and CPE credit hours claimed. You must sign the statement and are responsible for proving these CPE. You do not need to send in any supporting material at this time, but you are expected to have it in your records.

WHAT ARE RECORDS OF CPE

You are required to keep course outlines or agendas, proof of attendance or participation and written certificates or other documents indicating completion for at least three years from the time you completed the CPE. If you are selected for a CPE audit, this information will be requested to verify CPE claimed to satisfy registration requirements.

WHAT IS A CPE AUDIT?

A CPE audit is an examination of the records retained by registrants to show that they completed CPE. On a random, computer-selected basis, registrants are asked to provide the Board, within 30 days, this information for CPE listed on their latest registration. These records are reviewed by a Board-appointed CPE Committee, and, if there are deficiencies, the registrant may be required to complete additional CPE, or may be noticed for hearing and possible additional penalties. No response can result in suspension or revocation of the license, so it is important that licensees provide address changes to the Board as quickly as possible (these are required by law to be made within 30 days). If you should be selected for an audit, you will find the attached article published by the Arizona Society of CPA's to be very helpful.  (Business Article).

REGISTRATION PERIOD