2017 changes: CBA approves new CPE requirements.

• Author: Fox, Jason
• Position: Capitol Beat

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The CBA recently held a regulatory hearing and adopted new continuing professional education regulations for licensees who, as the highest level of service, provide preparation engagements.

As part of the 80 hours of education for license renewal, these licensees will need to complete eight hours of accounting and auditing (A&A) CPE and four hours of CPE specifically related to the prevention, detection and reporting of fraud affecting financial statements.

The new requirement is expected to take effect mid-2017.

The new requirement stems from the AICPA's 2014 issuance of the Statement on Standards for Accounting and Review Services (SSARS) 21 and subsequent creation of a new level of service for engagements to prepare financial statements.

SSARS 21 is effective for periods ended Dec. 31, 2015, or later with early adoption allowed. In addition to creating a new level of service, the requirements and reporting for compilations and reviews have substantially changed..

The CBA had previously determined that licensees who, as their highest level of services perform preparation engagements in accordance with SSARS 21, would not need to have a peer review. The CBA also determined that this new service would fall outside the current 24-hour A&A and four-hour fraud CPE requirements and would not trigger a peer review requirement.

However, the CBA determined that a modified version of this CPE requirement would help ensure consumer protection remained at the forefront. Therefore, licensees, who as their highest level of services perform preparation engagements in accordance with SSARS 21, will need to complete eight hours of A&A and four hours of fraud as part of their 80 hours of CPE.

The new CPE requirement is consistent with the CBA's mission of consumer protection through ensuring licensees maintain professional competency. The CalCPA Education Foundation has a number of CPE courses, including courses specific to SSARS 21, available for licensees who meet this new requirement. The Education Foundation also is developing additional courses designed to cover the new requirements when the new regulations take effect next summer.

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