By KELSEY SWANEKAMP
Buffalo Law Journal

Certified public accountants in all practice areas will be heading back to the classroom. New regulations require all CPAs - not just those in public practice - to complete yearly continuing-professional-education requirements.

The regulations expand the definition of a CPA to include those working outside the realm of traditional public accounting, including accountants employed in industry, nonprofit organizations and education.

CPAs must now complete at least 24 or 40 hours of mandated continuing professional education, known as CPE, ranging from broad topics such as taxation and auditing to specialized skill sets, including performing school district audits.

"The hope and intent is that you update your skill sets in your area of practice," said Joe Falbo, a CPA and partner with Tronconi Segarra & Associates.

The program is not "extremely new," said Falbo, also the secretary and treasurer of the New York State Society of Certified Public Accountants. In fact, it's been in practice since about 1980.

For those outside of traditional firms, though, it might come as a change.

"They might be reluctant to comply," said Dan Weintraub, a CPA and partner with Lougen Valenti Bookbinder & Weintraub LLP. "For nonprofits, there are costs involved."

These costs, he said, will likely need to be taken out of the nonprofit's budget or paid for personally by the CPA.

Still, some say the update in educational requirements serves to level the playing field and standardize the definition of a certified public accountant.

"Now, CPA equals CPA. There's not different categories," said Falbo. "It's a reaction to what the public already thought."

The mandated education is "a public protection," he added. "You assume your CPA is up-to-date. A few days a year isn't that much to ask."

Tim McPolland, a CPA and director with Freed Maxick & Battaglia PC, agreed.

"You can't hold yourself out as a CPA if you're not getting the CPE," he said.

Uncertainty about the scope of the new law has some wondering how it will affect them.

William Kross, a professor for the department of accounting and law at the University at Buffalo School of Management, doesn't know whether he would need to register with New York state as a CPA. His certification is from Illinois, and he hasn't been a licensed CPA in over 20 years.

"I've got a query in to get a definitive answer," he said.

Currently, he takes CPE courses to maintain membership in the American Institute of CPAs.

"As an academician, a lot of my CPE credit can be done by way of academic professional education," he said, such as research workshops. He is unsure whether these academic courses would count toward the state-mandated CPE requirement.

David Moynihan, president of the New York State Society of Certified Public Accountants, said the lack of widespread understanding about the new regulations is troublesome.

"The problem is the number of people who didn't know it was coming," he said. "I think there's general ignorance of what the law really says. And some people, because they're not in public practice, still are not really aware of how far-reaching this law really is."

If the new regulations require Kross to receive CPE in non-academic settings, he will consider allowing his certification to lapse.

"To sustain that designation might not be worth it," he said. "It might be," he added. "I'm going to reflect on it."

Falbo, however, can't imagine giving up his license instead of complying with the new regulations.

"To finally get it and not maintain it doesn't make sense to me," he said.

"Would I give it up? Never."

 

Certified public accountants aren't the only professionals who must keep up-to-date with continuing education. Attorneys, too, are required to complete mandated education courses, known as continuing legal education, or CLE.
"Continuing legal education is an excellent program that requires that lawyers maintain and update their skills so they are better able to serve their clients," said Bob Convissar, president of the Bar Association of Erie County.
Lawyers are obligated to complete 16 hours of continuing legal education, CLE, every two years to keep their licenses. Four of the hours must be completed in ethics courses.
Newly admitted attorneys, those with less than two years of experience, must take 16 credit hours every year. The distribution of these credits is carefully formatted: three hours of ethics, six hours of professional skills, seven hours of law practice and management.
"The Bar Association fully supports and is a significant provider of CLE courses," said Convissar, a criminal-defense lawyer in solo practice.
CPAs, on the other hand, must complete either 24 or 40 hours of courses every year. Those who concentrate their continuing education on one specific topic, such as taxation, can complete just 24 hours to meet their requirement. If they takes courses in a variety of areas, however, 40 hours must be documented.
"The CPA is one of the most trusted professions," said Tim McPolland. "There needs to be an equal playing field with continuing education."