DO YOU OFFER COMPILATIONS, REVIEWS OR AUDITS? READ THIS!(Brief Article)

• Author: Allen, Bruce

California CPAs who perform audits, reviews and compilations are subject to a continuing education requirement of 24 hours in accounting and auditing. This means 24 out of the CBA's 80 hours of required CE must be in the area of accounting and auditing related to reporting on financial statements.

The CBA does not consider all courses described as auditing and accounting by a CE provider to fulfill this requirement. The CBA has notified a small, but disturbing, percentage of CPAs that general assurance services courses or courses in computer software preparation of financial statements do not qualify to fulfill the 24-hour requirement for attest service providers.

Regulation 87(c) states that, "Course subject matter must pertain to financial statement preparation and/or reporting (whether such statements are prepared on the basis of generally accepted accounting principles or other comprehensive bases of accounting), auditing, reviews, compilations, industry accounting, attestation services, or assurance services."

According to CBA, the purpose of the 24-hour requirement is to ensure that licensees are current on professional standards and pronouncements...