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Texas State Board of Public Accountancy Qualifications Committee
September 21, 2016
AGENDA
Qualifications Committee
September 21, 2016
Tab A. Comments sent to NASBA and the AICPA concerning the June 1, 2016,
Exposure Draft of amendments to the Model Uniform Accountancy Act and Model Rules.
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B. Report from the Fifth-Year Accounting Student Scholarship Advisory
Committee that met on July 19, 2016. 2
C. Discussion, consideration and possible action concerning the Rule Review
of Chapter 520 – Provisions for the Fifth Year Accounting Students Scholarship Program of the Board’s Rules pursuant to Section 2001.039 of the Texas Government Code.
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D. Discussion, consideration and possible action concerning the Rule Review
of Chapter 511 – Eligibility of the Board’s Rules pursuant to Section 2001.039 of the Texas Government Code.
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E. Discussion, consideration and possible action concerning information
received from boards of accountancy, NASBA, AICPA and Prometric. 5
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AGENDA
Qualifications Committee
September 21, 2016
A. Discussion, consideration and possible action concerning the June 1, 2016, Exposure Draft of amendments to the Model Uniform Accountancy Act and Model Rules.
DISCUSSION: A response was sent to NASBA and the AICPA providing comments on the Exposure Draft of amendments to the Model Uniform Accountancy Act and Model Rules. Copy provided .
RECOMMENDATION: Information only. No action is required .
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Texas State Board of Public Accountancy 333 Guadalupe, Tower 3 Suite 900, Austin, Texas 78701-3900
William Treacy, Executive Director
J. Coalter Baker, CPA Chair NASBA UAA Committee NASBA. 150 4th Avenue North Nashville, TN 37219-2417
Dear Mr. Baker:
The Texas State Board of Public Accountancy appreciates the opportunity to comment on the June 1, 2016, Exposure Draft of amendments to the UAA Model Rules and Article 5 Changes for Examination. The Qualifications Committee and the Board considered the proposed amendments and how they would impact Texas CPA exam applicants. The Board raises the following concerns based upon that review.
The proposed amendments to Rule 5-7- Retake and granting of credit requirements, indicate that credit for any test section passed shall be valid for a period of eighteen
(18) months and be calculated from the actual date the candidate took that test section. The Board calculates the eighteen (18) months from the date the exam scores are received and validated by the Board. If credit is awarded on the date that testing occurred and there is a one or two month delay in receiving the score, the candidate will not have a full 18 months.
The rule also defines the testing window as equal to a calendar quarter. The proposed amendment requires that candidates would be able to test in no less than two (2) months out of each testing window. Texas candidates currently have a 90-day eligibility period which may occur in parts of two testing windows. While a candidate will be able to test in no less than two months, it is possible that it may not be consecutive months within the same testing window.
Based upon the above discussion we offer the foiJowing amendments to Rule 5-7-Retake and granting of credit requirements
(a) A candidate may take the required test sections individually and in any order. Credit for any test section(s) passed shall be valid for a period of eighteen (18) months and be calculated from the date credit is awarded by the board of accountancy or its designee. without having to attain a minimum score on any ·
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failed test section(s) and without regard to whether the candidate has taken other test sections.
(1) Candidates must pass all test sections of the examination within a rolling eighteen- (18) month period, which begins on the date that the first test section credit is awarded by the board of accountancy or its designee,
(2) Candidates cannot retake a failed test section(s) in the same testing window. A testing window is equal to a calendar quarter (Jan-Mar, Apr-Jun, Jui-Sep, Oct-Dec). Candidates •.viii be able to test no less than two (2) months out of each testing ·.vindow.
(3) No changes.
(b) No changes.
(c) A candidate shall be deemed to have passed the examination once the candidate holds at the same time valid credit for passing each of the test sections of the examination. For purposes of this section, credit for passing a test section of the examination is valid from the date credit is awarded by the board of accountancy or its designee.
(d) No changes .
The Board appreciates your consideration of its comments. Please feel free to contact me at 512-305-7801 if additional information or clarification is needed.
Best regards, Texas State Board of Public Accountancy
~~~et:<J/ William Treacy c:;T--Executive Director
Cc: TSBPA Board Members TSBPA Qualifications Committee Members
Deborah D. Lambert Chair AI CPA UAA Committee
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AGENDA
Qualifications Committee
September 21, 2016
B. Report from the Fifth-Year Accounting Student Scholarship Advisory Committee that met on July 19, 2016.
DISCUSSION: The Fifth-Year Accounting Student Scholarship Advisory Committee met on July 19, 2016 and considered the following items.
1. Report on the scholarship allocations and awards- FY 2015-16 2. Report on the repayment process for scholarship recipients who hciwe
not taken the CPA exam. 3. Consideration and establishment of the scholarship program allocation
for FY 2016-17. 4. Consideration of Board Rules in Chapter 520 - Provisions for the Fifth
Year Accounting Students Scholarship Program.
The committee recommends that the Qualifications Committee accept the report concerning items 1-3 as listed.
The Qualifications Committee is asked to consider amendments to Board Rules in Chapter 520- Provisions for the Fifth Year Accounting Students Scholarship Program discussed in a separate agenda item.
RECOMMENDATION: The Fifth-Year Accounting Student Scholarship Advisory Committee recommends that the Qualifications Committee accept the report of its ·meeting on July 19, 2016 concerning (1) scholarship allocations and awards - FY 2015-16; (2) repayment process for scholarship recipients who have not taken the CPA exam; and (3) establishment of the scholarship program allocations for FY 2016-17 .
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AGENDA ITEM V
Fifth-Year Accounting Student Scholarship Advisory Committee Report
July 19, 2016
The Fifth-Year Accounting Student Scholarship Advisory Committee met on July 19, 2016, at 10:00 AM in the Board Room at the Hobby Building. The following committee members and board staff were present for the meeting.
Members and Staff
Coalter Baker, CPA Emily Davis, CPA Robert McAdams, CPA Rosie Morris, PhD, CPA (chair) Cynthia Ramos, CPA Melanie Thompson, CPA
Karen Davis Gilbert Gutierrez Jerry Hill, Esq. Donna Hiller- liaison William Treacy
Members Walter Davis, Sewon 0, and Pat Wilson were not present. The committee . members represented.c;t quorum, and the following items were discussed and considered: ·
A. Report on the Fifth-Year Accounting Students Scholarship Program- FY 2015-16 allocations and awards ..
The committee reviewed reports of scholarship funds allocated, draws, and student recipients for FY 2015-16. Reports reflected the following information.
Total allocation University draws Total Awards Average Award
$1 ,500,005.00 $1 ,205,665.80
473 $ 2,555.90
B. Report on the repayment process for scholarship recipients who have not taken the CPA exam .
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After a lengthy discussion of various ways to facilitate the col'}'lmunication with universities 'and students who received a scholarship award and who have not complied by taking the CPA exam, the following recommendations were made: 1. Once the scholarship award is made, contact the student who received
the award by email and explain that the award was funded by Texas CPAs and that the student has an obligation to take the CPA exam by a specific date. ·
2. Contact the financial aid office when awards are made and advise them that the student has an obligation to take the CPA exam by a specific date. Ask the financial aid office to include the requirement to take the CPA exam as one of the conditions to receive the scholarship during the student's financial aid exit interview.
3. Send the university a letter at the three-month interval advising that the student has not taken the CPA exam. Ask the university financial aid office to contact the student to learn of any circumstances that have precluded the student from taking the CPA exam.
4. If collection of the scholarship funds is needed, establish a reasonable process that is consistent with other Board policies to include filing with the Attorney General Office.
C. Discussion, consideration and possible action concerning available funds for the Fifth-Year Accounting Students Scholarship Program and establishment of the allocation for FY 2016-17.
The committee reviewed information showing the projected scholarship funds available for FY 2017. Based on these projections a total of $750,000.00 was proposed and accepted by the committee. Staff will work with the universities to make funds available throughout the year rather than making an initial allocation on September 1, 2016.
D. Discussion, consideration and possible action concerning the Rule Review of Chapter 520- Provisions for the Fifth Year Accounting Students Scholarship Program of the Board's Rules pursuant to Section 2001.039 of the Texas Government Code.
The committee reviewed the Board's Rules in Chapter 520- Provisions for the Fifth Year Accounting Students Scholarship Program. The rules are attached and the committee recommends that they be placed on the Qualifications Committee agenda for further consideration.
The committee requests that the Qualifications Committee consider and accept this report at its next meeting .
The meeting adjourned at 12:10 PM.
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AGENDA
Qualifications Committee
September 21, 2016
C. Discussion, consideration and possible action concerning the Rule Review of Chapter 520- Provisions for the Fifth Year Accounting Students Scholarship Program of the Board's Rules pursuant to Section 2001.039 of the Texas Government Code. ·
DISCUSSION: Chapter 520 of the Board's Rules is being made available for the committee's review in order to comply with the required review of Board Rules pursuant to Section 2001.039 of the Texas Government Code. The FifthYear Accounting Student Scholarship Advisory Committee recently considered these Rules and offer amendments where needed for the committee's consideration.
RECOMMENDATION: The Fifth-Year Accounting Student Scholarship Advisory Committee recommends that the Qualifications Committee recommend to the Rules Committee the proposed rule amendments.
SUGGESTED MOTION: The Qualifications Committee recommends that the Rules Committee consider proposed rule amendments to Chapter 520 of the Board's Rules .
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RULE 520.1 Authority and Purpose
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4 (a) Authority for this chapter is provided in Subchapter D, §901.155 of the Act, which is
5 titled Scholarship Trust Fund for Fifth-Year Accounting Students. This chapter
6 establishes procedures to administer the fifth-year accounting students scholarship
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8 (b) The purpose of the fifth-year accounting students scholarship program is to provide
9 financial assistance to students intending to take the written examination condvcted for
10 the purpose of granting a certificate of CPA and thus increase the number of highly
11 trained and ~ducated CPAs available to serve the residents of this state .
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RULE 520.2 Definitions
The following words and terms, when used in this chapter, shall have the following
meanings, unless the context clearly indicates otherwise:
(1) Cost of attendance--An estimate of the expenses incurred by a typical financial aid
student in attending a particular college or university. It includes direct educational costs
(tuition, fees, books, and supplies) as well as indirect costs (room and board,
transportation, and personal expenses).
(2) Expected family contribution--The amount of discretionary income that should be
available to a student from his or her resources and that of his or her family, as
determined by the US Department of Education Definition of Expected Family
Contribution.
(3) Financial need--The cost of attendance at a particular public or private institution of
higher education less the expected family contribution. The cost of attendance and
family contribution are to be determined in accordance with board guidelines.
(4) Gift Aid--Educational funds from state, federal, and other sources, such as grants,
that do not require repayment rrom present or future earnings. Assistantships and work
study programs are not considered to be gift aid.
(5) Half-time student--For undergraduates, not in their final Mm!!llr. who are
enrolled or are expected to be enrolled for the equivalent of at least six but not more
than nine semester credit hours. For graduate students, not in l!!ir firtaj senta8tM:. who are enrolled or are expected to be enrolled for the equivalent of 4.5 but not more
than six semester credit hours.
(6) Institution--Public and private or independent institutions of higher education as
defined in Texas Education Code, §61.003.
(7) Period of enrollment--The term or terms within the current state fiscal year
(September 1 - August 31) for which the student was enrolled in an approved institution
and met all the eligibility requirements for an award through the program described in
this chapter.
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(8) Program Officer-~The individual named by each participating institution's chief
executive officer to serve as agent for the board. The program officer has primary
responsibility for all ministerial acts required by the program, including maintenance of
all records and preparation and submission of reports reflecting program transactions.
Unless otherwise indicated by the administration, the director of student financial aid
shall serve as program officer.
(9) Resident of Texas--A resident of the State of Texas as determined in accordance
with 19 TAC Part 1, Chapter 21, Subchapter B (relating to Determination of Resident
Status). Nonresident students who are eligible to pay resident tuition rates are not
residents of Texas .
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RULE 520.3 Institutions
(a) Eligibility.
(1) Any college or university defined as a public, private or independent institution of
higher education by Texas Education Code, §61.003 that offers the courses required by
§511.57 of this title (relating to Qualified Accounting Courses) and §511.58 of this title
(relating to Definitions of Related Business Subjects and Ethics Courses), is eligible to
participate in the fifth-year accounting students scholarship program.
(2) No institution may, on the grounds of race, color, national origin, gender, religion,
age or disability exclude an individual from 'participation in, or deny the benefits of the
program described in this chapter.
(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI
(Public Law 88-353) in avoiding discrimination in admissions.
(b) Approval.
(1) Each approved institution must enter into an agreement with the board, the terms
of which shall be prescribed by the executive director.
(2) An institution must be approved by April 1 in order for qualified students enrolled in
that institution to be eligible to receive scholarships in the following fiscal year.
(c) Responsibilities.
(1) Probation Notice. If the institution is placed on public probation by its accrediting
agency, it must immediately advise scholarship recipients of this condition and maintain
evidence in each student's file to demonstrate that the student was so informed.
(2) Disbursements to Students.
(A) The institution must maintain records to prove the receipt of program funds to the
student or the crediting of such funds to the student's school account.
(B) If the executive director has reason .to believe that an institution has disbursed
funds for unauthorized purposes, the institution will be notified and offered an
opportunity for a hearing pursuant to the applicable procedures outlined in Chapter 519
of this title (relating to Practice and Procedure) and the rules of procedure of SOAH.
Thereafter, if the board determines that funds have been im·properly disbursed, the
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institution shall become responsible for restoring the funds to the board. No further
disbursements of scholarship funds shall be permitted to students at that institution until
the funds have been repaid.
(d) Reporting.
(1) All institutions must meet board reporting requirements. Such reporting
requirements shall include reports specific to allocation and reallocation of scholarship
funds as well as progress and year-end reports.
(2) Penalties for Late Reports.
(A) An institution that postmarks or electronically submits a progress report a week
(seven (7) calendar days) or more after its due date will be ineligible to receive
additional funding through the reallocation occurring at that time.
(B) The executive director may penalize an institution by reducing its allocation of
funds in the following year by up to 10 percent for each progress report that is
postmarked or submitted electronically more than a week (seven (7) calendar days)
late .
(C) The executive director may assess more severe penalties against an institution if
any report is received by the board more than one month (thirty (30) calendar days)
after its due date. The maximum penalty for a single year is 30 percent of the school's
allocation. If penalties are invoked two consecutive years, the institution may be
penalized an additional20 percent. ~--- ------------- -- ----------
(3) If the executive director determines that a penalty is appropriate, the institution will
be notified by certified mail, addressed to the program officer. Within 21 days from the
date that the program officer receives the written notice, the institution must submit a
"Yritten response appealing the board's decision, or the penalty shall become final and
no longer subject to an appeal. An appeal under this section will be conducted in.
accordance with the rules provided in the applicable sections of Chapter 519 of this title
and the procedural rules ofSOAH.
(e) Program Reviews. If selected for such by the board, participating institutions must
submit to program reviews of activities related to the fifth-year accounting students
scholarship program .
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RULE 520.4 Eligible Students
(a) To receive funds, a student must:
(1) be enrolled on at least a half-time basis or in the ftnal,...ter9fltt ... at
an approved institution in Texas;
(2) maintain satisfactory academic progress in the program of study as defined _by the
institution;
(3) have completed at least 120 credit hours of college work, including at least 15
hours of accounting;
(4) sign a written statement confirming the intent to take the examination conducted by
or pursuant to the authority of the board for the purpose of granting a certificate of
"certified public accountant" in Texas;
(5) agree to pay on demand all scholarship funds received if he does not sit for at least
one part of the exam within three years of submitting the application of intent, unless the
executive director grants an extension of the three-year requirement upon a showing of
good cause;
(6) agree tblt failure to eompty With prag~pb (51 of tblaiUbcbapter may Cll§e
the Board to take measUf@ ~to enforce the IMUIJIIM gf the
scholaf!hlp ittcludimt brih9iftl a eivil suit in state distrid court
(7) confirm that the ApgticatiRB. of tnteut has not been approved or Umt the
applicant has he or she has not been approved to take yet taken the CPA examination
in Texas or another jurisdiction;
(8) maintain a cumulative grade point average, as determined by the institution, that is
equal to or greater than the grade point average required by the institution for
graduation;
(9) be a resident of Texas; and
(1 0) have a statement on file with the institution of higher education indicating the
student is registered with the Selective Service System as required by federal law or is
exempt from Selective Service registration under federal law .
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(b) In selecting recipients the Program Officer shall consider at a minimum the following
factors relating to each applicant:
(1) t~e applicant's financial need, which may be based on but not limited to the cost of
the applicant attending school less family contribution and any gift aid (an award may
not exceed the applicant's need nor be less than the amount calculated in accordance
with the formula provided institutions in the application instructions);
(2) scholastic ability and performance as measured by the student's cumulative college
grade point average as determined by the institution in which the student is enrolled;
and
(3) ethnic or racial minority status.
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RULE 520.5 Award Amounts and Uses
(a) Funds awarded through this program may include any gifts, grants and donations of
real or personal property from any entity, subject to limitations or conditions set by law,
for the purposes of this chapter.
(b) Award Amount and Disbursements.
(1) The minimum and maximum annual award for a student through this program shall
be an amount recommended by the advisory committee and announced to institutions
in the allocation announcement sent out for the relevant year, less any amount ·
previously received through this program.
(2) No individual shall receive an aggregate total of more than the amount
recommended by the advisory committee and announced to institutions in the allocation
announcement through the program.
(3) An individual student's scholarship shall be paid out in the form of at least one
disbursement per semester.
(c) No scholarship disbursed to a student shall be used for any purpose other than for
meeting the cost of attending an approved institution.
(d) At the time an award is made to a student, it shall not exceed the student's need. No
future adjustment is required if subsequent awards during the student's period of
enrollment cause an over award of $300 or less.
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RULE 520.6 Allocations and Reallocations
(a) The board, with the assistance of the advisory committee, shall develop a formula
for allocating funds to participating institutions in a way that fulfills the purpose of the
program.
(b) Unless otherwise indicated, institutions shall have until a date specified by the board
via a policy memo addressed to the program officer at the institution to encumber all
funds allocated to them. On that date, institutions lose claim to any unencumbered
funds and the unencumbered funds are available to the board for reallocation to other
institutions. If necessary for ensuring the full use of funds, the fgnd$ rtot:utlipd 1Ift
be reallocatedtg.other institutions within the same fiscal yur. subsequent
reallocations may be scheduled until all funds are mvarded and disbursed.
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RULE 520.7 Disbursements to Institutions
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4 Requests for program funds for eligible students shall be made by the program officer.
5 Program funds, up to the maximum allocation for the institution, shall be disbursed to
6 the institution for immediate release to the students or immediate application to the
7 students• accounts at the institution. Requests for program funds may be made at any
8 time during the academic year prior to the reallocation deadline .
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RULE 520.8 Retroactive Disbursements
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4 (a) A student may receive a disbursement after the end of his or her period of
5 enrollment if the student:
6 (1) owes funds to the institution for the period of enrollment for which the award is
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8 (2) received a student loan that is still outstanding for the period of enrollment for
9 which the award is being made.
10 (b) Funds that are disbursed retroactively shall either be used to pay the student's
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12 institution or to make a payment against an outstanding loan received during that period
13 of enrollment. Under no circumstances shall funds be released to the student.
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RULE 520.9 Advisory Committee
(a) The board shall appoint an advisory committee to advise the board concerning
assistance provided under this chapter to fifth-year accounting students.
(1) The advisory committee shall consist of:
(A) a presiding officer named by the board;
(B) one representative named by the board;
(C) one representative named by the TSCPA;
(D) a Texas representative of the American Accounting Association named by that
organization;
(E) one representative named by the National Association of Black Accountants;
(F) one representative named by the American Association of Hispanic Certified
Public Accountants or its IYHtMOr omanilations; and
(G) two representatives named by the Texas Higher Education Coordinating Board
who are the chairs of accounting departments at Texas colleges and universities, one of
whom shall be a representative of a private college or university and the other shall be a
representative from a college or university that primarily serves minority students. ·
(2) The costs of participation on an advisory committee of a member representing a .
particular organization or agency shall be borne by that member or the organization or
agency the member represents.
(b) The duties of the advisory committee shall be to advise the board on:
(1) how the scholarships provided for under this chapter should be established and
administered to best promote the public purpose of the scholarships;
(2) the amount of money needed to adequ_ately fund the scholarship program; and
(3) setting priorities among the factors identified by §520.4 of this chapter (relating to
Eligible Students) .
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RULE 520.10 Recognition of Accounting Firms Hiring and Offering
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5 Accounting firms shall be recognized by the board for their contribution to the training
6 and hiring of minority or disadvantaged accounting students. The board may publish in
7 its Board Report the names of accounting firms providing internships or hiring two or
8 more disadvantaged or minority students each calendar year.
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AGENDA
Qualifications Committee
September 21, 2016
D. Discussion, consideration and possible action concerning the Rule Review of Chapter 511- Eligibility of the Board's Rules pursuant to Section 2001.039 of the Texas Government Code.
DISCUSSION: Chapter 511 of the Board's Rules is being made available for the committee's review in order to comply with the required review of Board Rules pursuant to Section 2001.039 of the Texas Government Code. Recommended changes are offered for the committee's consideration .
RECOMMENDATION: The staff recommends that the Qualifications Committee recommend to the Rules Committee the proposed rule amendments.
SUGGESTED MOTION: The Qualifications Committee recommends that the Rules Committee consider proposed rule amendments-to Chapter 511 of the Board's Rules .
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RULE 511.11 Definitions
(a) Wherever the term "examination" or "exam" appears in this chapter, reference is
made to the Uniform Certified Public Accountant Examination (UCPAE) prepared and
graded by the American Institute of Certified Public Accountants (AICPA), to include,
but not limited to the UCPAE.
(b) An "applicant" means an individual attempting to complete an examination prepared
and graded by the AI CPA, including, but not limited to, the UCPAE.
(c) The following acronyms, when used in this chapter, shall have the following
meanings:
(1) "Act" means the Public Accountan~y Act, Chapter 901, Occupations Code;
(2) "NASBA" means the· National Association of State Boards of Public Accountancy .
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RULE 511.21 Examination Application
(a) An application to take the UCPAE shall be made on forms prescribed by the board
and shall also be in compliance with board rules and with all applicable laws.
(b) Each applicant shall submit their social security numbers on the application form.
Such information shall be considered confidential and can only be disclosed under the
provisions of the Act.
(c) An applicant must sign a statement on the application that states that if the
applicant's examination is lost, the limit of liability for which the board may be held
responsible will be the amount of the exam fee collected by NASBA.
(d) Each applicant for the UCPAE must pay an eligibility fee to the board for each
section for which the applicant requests to take in acoordanCit with. The actual fee set
by the board is identified in §521.14 of this title (relating to Eligibility Fee). Application
forms not accompanied by the proper fee or required documents shall not be
considered complete. The withholding of information, a misrepresentation, or any untrue
statement on the application or supplemental documents will be cause for rejection of
the application.
(e) Each application must be verified to show that the applicant remains qualified in all
respects to take the examination.
(f) The board shall evaluate each examination application and establish dates of
eligibility for each approved application, which will be used by the testing vendor or
other organization to schedule and test an applicant.
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RULE 511.22 Initial Filing of the Application of Intent
(a) The initial filing of the application of intent shall be made on forms prescribed by the
board and shall also be in compliance with board rules and with all applicable laws. The
application of intent may be submitted at any time and will be used to determine
compliance and eligibility for an applicant to take the UCPAE. The application of intent
will remain active until:
(1) an applicant takes at least one section of the UCPAE within two years from the
date of submission of the application; or
(2) the second anniversary of the submission of the application has lapsed.
(b) Each applicant shall submit their social security number on the application form.
Such information shall be considered confidential and can only be disclosed under the
provisions of the Act.
(c) Each applicant who submits an application of intent to determine eligibility for the
UCPAE must pay a nonrefundable filing fee set by the board in a~cew#h
§521.12 of this title (relating to Filing Fee). An application of intent not accompanied by
the proper fee or required documents shall not be considered complete. The withholding
of information, a misrepresentation, or any untrue statement on the application or
supplemental documents will be cause for rejection of the application. ·
(d) Each applicant must provide official educational documents to be used in
determining compliance with the applicable education requirements of the Act.
(e) Each applicant must cornpty with the board's procedttre toJnvesti!ll~tM'I\IJ9filt
character of applicants in accordance with an established finger print proce§$ that
asce8ses the Bederal Bureau of Investigation (FBI) database aAd the Texas
Department of Public Safety- Crime Records division files. be informed that a
background investigation 'Nil! be completed to determine the moral character of the
applicant.
(f) Each applicant will be notified when all requirements have been met to apply to take
the UCPAE, and with the notification, an examination application will be mailed to the
applicant.
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(g) Each applicant must provide a notarized or certified copy of the following
documents:
(1) Unexpired driver's license issued by a state of the United States provided it
contains a photograph and information such as name, date of birth, sex, height, eye
color, and address; or an unexpired United States passport; and
(2) social security card.
(h) Applicants who are citizens of a foreign country and who cannot meet the
requirements of subsection (g) of this section shall comply by providing evidence of a
non-expired F-1 Visa issued to students attending a university or college. Ibtbfllid may consider an Fi-:01 Visa Will\ a Certificate of BiQ,ibity 19r Nooitnmigg!t Sliud@nt
Status. FQmli~O sbattbe approved. by the dsignated scboof,~ .at the edQcatlonal
institution whete tt:le aPP1icant i§ currently attending.
(i) Applicants who cannot meet the requirements of subsection (g) or (h) of this section
shall comply with the federal Department of Homeland Security by providing evidence of
both identity and employment authorization by submitting a notarized or certified copy of
one of the following unexpired documents:
(1) An Alien Registration Receipt Card or Permanent Resident Card ~Form 1-551); or
(2) A foreign passport that contains a temporary 1-551 stamp, or temporary 1-551
printed notation on a machine-readable immigrant visa; or
(3) An Employment Authorization Document which contains a photograph (Form 1-
766).
0) Applicants who do not have or do not submit a social security card will be required to
pay an additional fee to NASBA each time they make application for the UCPAE to
verify their legal entry into the U.S.
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RULE 511.26 Applications under Prior Acts · .1 2
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4 An applicant who applies and is approved for the examination under a prior Act shall
5 continue to be eligible to take the examination. The applicant may re-qualify to another
6 education requirement of the Act under which the applicant qualified, or may re-qualify
7 to the education of the current Act, but the applicant shall not rescind this action .
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RULE 511.27 Good Moral Character Evidence from Foreign >Residents
.{§}An applicant who at the time of the filing of an application of intent resides outside of
the United States or its territories, or has so resided for any portion of the two years
immediately preceding the filing shall provide evidence of good moral character
satisfactory to the board. Such evidence may include but not be limited to an official
. "certificate of good moral character," "certificate of good conduct," "police clearance
certificate," or other identifying title that shows attestation of good moral character.
Certificates presented shall be issued and sealed by an official of the country of
residence.
(b) An aP:PfioantWbo is a citizen otthfl United States and who.pattioipite§ in &stud! abroad ·promamn a oort of their.cgur~e of stwdv through ·a u.s.'~··~
is not required to provide evidenoe <?f good moral character from #1ft ogunD. ~;b
study abroad occurred .
(c) An aPPlicant is.permitted to visit their offtcial countrv ofre$idfimce fbr a Mtiad otb allowable under their official \fJSa .. and mav not be reQuired to Provide-a subsequetit
certificate of good moral character .
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·~ RULE511.29 Examination Applicant Data
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4 (a) The board shall provide applicant data to NASBA for the sole and specific purpose
5 of maintaining the national applicant database of individuals eligible for the UCPAE.
6 (b) In compliance with §901.160(c)(1) of the Act (relating to Availability·and
7 Confidentiality of Certain Board Files), the board shall obtain authorization from the
8 applicant for the sharing of data with NASBA.
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RULE 511.51 Educational Definitions
(a) The following words and terms extracted from rules promulgated by the Texas
Higher Education Coordinating Board, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) "Accelerated courses" means courses delivered in shortened semesters which are
expected to have the same number of contact hours and the same requirement for out
of-class learning as courses taught in a normal semester.
(2) "Contact hour" means a time unit of instruction used by institutions of higher
education consisting of 60 minutes, of which 50 minutes must be direct instruction.
(3) .. Distance education" means the formal educational process that occurs when
students and instructors are not in the same physical setting for the majority (more than
50 percent) of instruction.
(4) "Distance education course" means a course in which a majority (more than 50
percent) of the. instruction occurs when the student(s) and instructor(s) are not in the
same place. Two categories of distance education courses are defined:
(A) "Fully distance education course" means a course which may have mandatory
face-to-face sessions totaling no more than 15 percent of the instruction time. Examples
of face-to-face sessions include orientation, laboratory, exam review, or an in-person
test.
(B) "Hybrid/Blended course" means a course in which a majority (more than 50
percent but less than 85 percent), of the planned instruction occurs when the students
and the instructor(s) are not in the same place.
(5) "Non-traditionally-delivered course" means a course that is offered in a non
traditional way (for example, over the internet, or through a shortened, intensive format)
that does not meet the definition of contact hours.
(6) "Semester" means and normally shall include 1 ~ weeks ·for instruction and one
week for final examination or a total of 16 weeks instruction and exa1;11inations
combined .
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(7) "Semester credit hour'' means a unit of measure of instruction consisting of 60
minutes, of which 50 minutes must be direct instruction, over a 15-week period in a
semester system or a 10-week period in a quarter system.
(8) "Traditionally-delivered three semester-credit-hour course" or "traditional course"
means a course containing 15 weeks of instruction (45 contact hours) plus a week for
final examinations so that such a course contains 45-48 contact hours depending on
whether there is a final exam.
(b) The following words and terms shall have the following meanings, unless the context
clearly indicates otherwise and shall be considered substantially equivalent to
definitions and references in rules promulgated by the Texas Higher Education
Coordinating Board.
(1) "AACSB-International" means the Association to Advance Collegiate Schools of
Business-International.
(2) "ACBSP" means the Accreditation Council for Business Schools and Programs.
(3) "Accredited community college" means a board-recognized Texas community
college or campus of the community college that holds the designation 'Qualifying
Educational Credit for the CPA Examination' awarded by the board.
(4) "CHEA" means the Council for Higher Education Accreditation.
(5) "Extension and correspondence school" means a program within an institution that
offers courses that are not equivalent to courses offered in an academic department at ·
the institution and the courses are not listed on an official transcript from the institution.
(6) "Institution" or "Institution of Higher. Education" means any U.S. public or private
senior college or university which confers a baccalaureate or higher degree to its
students completing a program of study required for the degree.
(7) "Proprietary organization" means a CPA review course provider.
(8) "Quarter credit hour" is the unit of measurement based upon an institution of higher
education system that divides the academic year into three equal sessions of 10 to 11
weeks. A qu,arter credit hour represents proportionately less work than a semester hour
because of the.shorter session and is counted as 2/3 of a semester credit hour for each
hour of credit.
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(9) "Reporting institution" means the institution of higher education in the state that
serves as the clearinghouse for educational institutions of higher education in Texas.
Currently, the University of Texas-Austin is the reporting institution for the state of
Texas.
(1 0) "SACS" means the Southern Association of Colleges and Schools-Commission
on Colleges.
(11) "THECB" means the Texas Higher Education Coordinating Board.
(12) "Transcript" or "Official Transcript" means a document prepared by an institution
that contains a record of the academic coursework offered by an academic department
that a student has taken, grades and credits earned, and degrees awarded. The
document is printed on paper bearing a watermark specific to the institution and is
embossed with the institution's seal, date and the signature of the Registrar who is
responsible for certifying coursework and degrees.
(13) "UCPAE" means the Uniform Certified Public Accountant Examination prepared
and graded by the American Institute of Certified Public Accountants .
(14) "Upper Division Accounting Course" means at a minimum junior and senior year
course work that requires the successful completion of introductory or basic course
work before it can be taken.
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RULE 511.52 Recognized Institutions of Higher Education
(a) The board recognizes institutions of higher education that offer a baccalaureate or
higher degree, that either:
(1) are regionally accredited by one of the following organizations:
(A) Middle States Association of Colleges and Schools, Commission on Higher
Education (MSCHE);
(B) Northwest Commission on Colleges and Universities (NWCCU);
(C) North Central Association of Colleges and Schools, Higher Learning Commission
(NCA-HLC);
(D) New England Association of Schools and Colleges, Commission on Institutions of
Higher Education (NEASC-CIHE);
(E) Southern Association of Colleges and Schools, Commission on Colleges (SACS);
and
(F) Western Association of Schools and Colleges, Accrediting Commission for Senior
Colleges and Universities (WASC-ACSCU);
(2) have a business school or accounting program accredited by AACSB or ACBSP; or
(3) provide evidence of meeting equivalent accreditation requirements of SACS.
(b) The board may receive assistance from the reporting institution in the State of Texas
in evaluating an institution of higher education.
(c) Extension and correspondence schools or programs and continuing education
courses do not meet the criteria for recognized institutions of higher education.
(d) The requirements related to recognized community colleges are provided in §511.54
of this chapter (relating to Recognized Texas Community Colleges).
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RULE 511.53 Evaluation of Foreign Education Documents
(a) It is the responsibility of the board to confirm that education obtained at colleges and
universities outside of the United States (foreign education) is equivalent to education
earned at board-recognized institutions of higher education in the U.S.
(b) The board shall use, at the expense of the applicant, the services of the University 9f
Texas at Austin, Graduate and International Admissions Center, to validate, review, and
evaluate foreign education documents submitted by an applicant to determine if the
courses taken and degrees earned are substantially equivalent to those offered by the
board-recognized institutions of higher education located in the U.S. Other evaluation or
credential services of foreign education are not accepted by the board. The evaluation
shall provide the.following information to the board:
(1) Degrees earned by the applicant that are substantially equivalent to those
conferred by a board-recognized institution of higher education in the U.S. that meets
§511.52 of this chapter (relating to Recognized Institutions of Higher Education);
(2) The total number of semester hours or quarter hour equivalents earned that are
substantially equivalent to those earned at U.S. institutions of higher education and that
meet §511.59 of this chapter (relating to Definition of 150 Semester Hours);
(3) The total number of semester hours or quarter hour equivalents earned in
accounting coursework that meets §511.57 of this chapter (relating to Qualified
Accounting Courses);
(4) An analysis of the title and content of courses taken that are substantially
equivalent to courses listed in §511.57 of this chapter;
(5) The total number of semester hours or quarter hour equivalents earned in
accounting that were earned in traditional courses and the total number of semester
hours or quarter hour equivalents earned in accounting that were earned in non
traditionally delivered courses, as defined in §511.51 of this chapter (relating to
Educational Definitions); and
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(6) The total number of semester hours or quarter hour equivalents earned in business .
coursework that meets §511.58 of this chapter (relating to Definitions of Related
Business Subjects and Ethics Courses).
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5 · may use the American Association of Collegiate Registrars and Admissions Officers
6 (AACRAO) material, including the Electronic Database for Global Education (EDGE), in
7 evaluating foreign education documents .
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RULE 511.54 Recognized Texas Community Colleges
(a) An applicant who has completed a baccalaureate or higher degree from a board
recognized institution of higher education based on the requirements of §511.52 of this
chapter (relating to Recognized Institutions of Higher Education), may enter into a
course of study at a board recognized Texas community college to complete the
educational requirements of §511.57 and §511.58 of this chapter (relating to Qualified
Accounting Courses and Definitions of Related Business Subjects and Ethics Course~).
(b) The board recognizes and accepts Texas community colleges that meet board
standards for a comprehensive academic program based on the educational
requirements of §511.57 and §511:58 of this chapter.
(c) Effective August 1, 2015, the standards include but are not limited to the following:
(1) The Texas community college must be accredited by SACS.
(2) Academic accounting and business courses recognized to meet §511.57 and
§511.58 of this chapter are deemed. by the board as equivalent to upper level
coursework at an institution of higher education and must contain a rigorous curriculum
that is similar to courses offered in a baccalaureate degree program at a university.
Accounting, business, and ethics courses must be developed by a group of full time
accounting faculty members and approved by the board prior to offering to students.
Modifications to an approved course must be reconsidered by the board prior to offering
to students.
(3) Academic courses meeting §511.57 and §511.58 of this chapter must be taken
after completing a baccalaureate degree.
(4) The Texas community college must offer:
(A) 30 semester hours of academic accounting courses meeting §511.57 of this
chapter, of which not more than one-half of the courses may be taught 'in a distance
learning or hybrid format.
(B) 24 semester hours of academic business courses meeting §511.58 of this
chapter, and
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(C) A board-approved three semester hour ethics course meeting §511.58(c) of this
chapter.
(5) The Texas community college designates an accounting faculty member(s) who is
responsible for:
. (A) managing the comprehensive academic program at all campuses;
(B) selecting and training qualified faculty members to teach the program courses
and regularly evaluating their effectiveness in the classroom;
(C) establishing and maintaining a rigorous program curriculum;
(D) establishing and maintaining a process for advising and guiding students through
the program; and
(E) providing annual updates to the board on the status of the academic program.
(6) Faculty members at a community college recognized and accepted by the· board
must have the following credentials to teach academic courses meeting §511.57 and
§511.58 of this chapter:.
(A) Doctorate or master's degree in the teaching discipline; or
(B) Master's degree with a concentration in the teaching discipline (a minimum of 18
graduate semester hours in the teaching discipline)
(7) At least three-fourths of the faculty members who are responsible to teach
academic courses meeting §511.57 of this chapter must hold a current CPA license.
(8) Faculty members will comply with the established educational definitions in
§511.51 of this chapter (relating to Educational Definitions).
(9) The Texas community college will provide ongoing professional development for its
faculty as teachers, scholars, and CPA practitioners.
(1 0) The Texas community college will make available to students a resource library
containing current online authoritative .literature to support the academic courses
meeting §511.57 and §511.58 of this chapter, and will incorporate the online
authoritative literate in accounting courses.
(d) A community college recognized and accepted by the board under this provision
must be reconsidered by the board on the fifth-year anniversary of the approval.
Information brought to the attention of the board by a student or faculty member of the
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RULE 511.56 Educational Qualifications under the Act
(a) An applicant for the UCPAE who met the educational requirements of a' prior Act that
were in effect at the time of taking the initial examination shall continue to be examined
under those requirements unless the applicant chooses to meet the education
requirements of the current Act.
(b) An applicant for the UCPAE under the current Act shall meet the following
educational requirements at the time of filing the initial application to take the
examination and in order to qualify to write the examination:
(1) hold a baccalaureate or graduate degree conferred by an institution of higher
education as defined by §511.52 of this chapter (relating to Recognized Institutions of
Higher Education) recognized by the board; and
(2) complete no fewer than 150 semester hours or quarter-hour equivalents of
courses, as defined by §511.59 of this chapter (relating to Definition of 150 Semester
Hours) and consisting of:
(A) no fewer than 30 semester hours or quarter-hour equivalents of upper level
accounting cour:ses as defined by §511.57 of this chapter (relating to Qualified
Accounting Courses);
(B) no fewer than 24 semester hours or quarter-hour equivalents of upper level
· related bus.iness courses, as defined by §511.58 of this chapter (relating to Definitions
of Related Business Subjects and Ethics Courses); and
(C) a 3-semester-hour board-approved ethics course as defined by §511.58 of this
chapter.
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RULE 511.57 Qualified Accounting Courses
(a) An applicant shall meet the board's accounting course requirements in one of the
following ways:
(1) Hold a baccalaureate or higher degree from a board-recognized institution of higher
education as defined by §511.52 of this chapter (relating to Recognized Institutions of
Higher Education) and present valid transcript(s) from board-recognized institution(s)
that show degree credit for no fewer than 30 semester credit hours of upper division
accounting courses as defined in subsection (e) of this section; or
(2) Hold a baccalaureate or higher degree from a board-recognized institution of higher
education as defined by §511.52 of this chapter, and after obtaining the degree,
complete the requisite 30 semester credit hours of upper division accounting courses,
as defined in subsection (e) of this section, from four-year degree granting institutions,
or accredited community colleges, provided that all such institutions are recognized by
the board as defined by §511.52 of this chapter, and that the accounting programs
offered at the community colleges are reviewed and accepted by the board.
(b) Credit for hours taken at board-recognized institutions of higher education using the
quarter system shall be counted as 2/3 of a semester credit hour for each hour of credit
received under the quarter system.
(c) The board will accept no fewer than 30 semester credit hours of accounting courses
from the courses listed in subsection (e)(1)- (13) of this section. The courses must meet
the board's standards by containing sufficient business knowledge and application to be
useful to candidates taking the UCPAE. A board-recognized institution of higher
education must have accepted the courses for purposes of obtaining a baccalaureate
degree or its equivalent, and they must be shown on an official transcript. At least 15 of
these hours must result from physical attendance at classes meeting regularly on the
campus of the transcript-issuing institution.
(d) A non-traditionally-delivered course meeting the requirements of this section must
have been reviewed and approved through a formal, institutional faculty review. process
that evaluates the course and its learning outcomes and determines that the course
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does, in fact, have equivalent learning outcomes to an equivalent, traditionally delivered
course.
(e) The subject-matter content should be derived from the UCPAE Content
Specifications Outline and cover some or all of the following:
(1) financial accounting and reporting for business organizations that may include:
(A) up to nine semester credit hours of intermediate accounting;
(B) advanced accounting;
(C) accounting theory;
(2) managerial or cost accounting (excluding introductory level courses);
(3) auditing and attestation services;
(4) internal accounting control and risk assessment;
(5) financial statement analysis;
(6) accounting research and analysis;
(7) up to 12 semester credit hours of taxation (including tax research and analysis);
(8) financial accounting and reporting for governmental and/or other nonprofit entities;
(9) up to 12 semester credit hours of accounting information systems, including
management information systems ("MIS"), provided the MIS courses are listed or cross
listed as accounting courses, and the institution of higher education accepts these
courses as satisfying the accounting course requirements for graduation with a degree
in accounting;
(1 0) fraud examination;
(11) international accounting and financial reporting; and
(12) an accounting internship program (not to ex<?eed 3 semester credit hours) which
meets the following requirements:
(A) the accounting knowledge gained is equal to or greater than the knowledge
gained in a traditional accounting classroom setting;
(B) the emplqying firm provides the faculty coordinator and the student with the
objectives to be met during the internship;
(C) the internship plan is approved in advance by the faculty coordinator;
(D) the employing firm provides significant accounting work experience with adequate
training and supervision .of the work performed by the student;
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(E) the employing firm provides an evaluation of the student at the conclusion of the
internship, provides a letter describing the duties performed and the supervision to the
student, and provides a copy of the documentation to the faculty coordinator and the
student;
(F) the student keeps a diary comprising a chronological list of all work experience
gained in the internship;
(G) the student writes a paper demonstrating the knowledge gained in the internship;
(H) the student and/or faculty coordinator provides evidence of all items upon request
by t~e board;
(I) the internship course shall not be taken until a minimum of 12 semester credit
hours of upper division accounting course work has been completed; and
(J) the internship course shall be the equivalent of a traditional course.
(13) At its discretion, the board may accept up to three semester hours of credit of
accounting course work with substantial merit in the context of a career in public
accounting, provided the course work is predominantly accounting or auditing in nature
but not included in paragraphs (1)- (12) of this subsection. For any course submitted
under this pr-<l)vision, the Accounting Faculty Head or Chair must affirm to the board in
writing the course's merit and content
(f) The board requires that a minimum of two semester credit hours in research and
analysis relevant to the course content described in subsection (e)(6) or (7) of this
section be completed. The semester credit hours may be obtained through a discrete
course or offered through an integrated approach. If the course content is offered
through integration, the institution of higher education must advise the board of the
course(s) that contain the research and analysis content.
(g) The following types of introductory courses do not meet the accounting course
definition in subsection (e) of this section:
(1) elementary accounting;
(2) principles of accounting;
(3) financial and managerial accounting;
{4) introductory accounting courses; and
{5) accounting software courses.
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(h) Any CPA review course offered by an institution of higher education or a proprietary
organization shall not be used to meet the accounting course definition.
(i) CPE courses shall not be used to meet the accounting course definition.
0) An ethics course required in §511.58(c) of this chapter (relating to Definitions of
Related Business Subjects and Ethics Courses) shall not be used to meet the
accounting course definition in subsection (e) of this section.
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RULE 511.58 Definitions of Related Business Subjects and Ethics Courses
(a) An individual who holds a baccalaureate degree from a recognized educational ·
institution as defined by §511.52 of this chapter (relating to Recognized Institutions of.,
Higher Education) may take related business courses offered at an accredited
community college, provided they are recognized as upper level courses for a 4-year
baccalaureate degree from an institution recognized by the board.
(b) The board will accept no fewer than 24 semester credit hours of upper level courses
(for the purposes of this subsection, economics and statistics at any college level will
count as upper division courses) as related .business subjects (without repeat), taken at
a recognized educational institution shown on official transcripts or accepted by a
recognized educational institution for purposes of obtaining a baccalaureate degree or
its equivalent, in the following areas. No more than 6 credit semester hours taken in any
subject area may be used to meet the minimum hour requirement.
(1) business law, including study of the Uniform Commercial Code;
(2) economics;
(3) management;
(4) marketing;
(5) business communications;
· (6) statistics and quantitative methods;
(7) finance; ·
(8) information systems or technology; and
(9) other areas related to accounting.
(c) In addition to the 24 hours required in subsection (b) of this section, the board
requires that 3 passing semester hours be earned as a result of taking a course in
ethics. The course must be taken at a recognized educational institution and should
provide students with a framework of ethical reasoning, professional values and
attitudes for exercising professional skepticism and other behavior that is in the best
interest of the public and profession. The ethics program should provide a foundation for
ethical reasoning and include the core values of integrity, objectivity and independence
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taught by an instructor who has not been disciplined by the board for a violation of the
board's rules of professional conduct unless waived by the board.
(d) Effective July 1, 2011, the board requires that a minimum of 2 upper level semester
credit hours in accounting communications or business communications be completed.
The semester hours may be obtained through a discrete course or offered through an
integrated approach. If the course content is offered through integration, the university
must advise the board of the course(s) that contain the accounting communications or
business communications content.
{e) Credit for ho~:-~rs taken at recognized institutions of higher educati~,n using the quarter
system shall be counted as 2/3 of a semester hour for each hour of credit received
under the quarter system .
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RULE 511.59 Definition of 150 Semester Hours
(a) An individual holding a baccalaureate degree shall meet the board's 150 semester
hours or quarter hour equivalents of courses for which credit have not been previously
earned in one of the following ways:
(1) Complete a master's degree or higher degree conferred by an institution of higher
education that is recognized by the board; or
(2) Complete the upper level accounting courses needed to take the UCPAE as
defined in §511.57 of this chapter (relating to Qualified Accounting Courses). The hours
required for a baccalaureate degree plus the additional hours must equal or exceed 150
semester hours; or
(3) Complete additional semester hours or quarter hour equivalents of upper level
courses that enhance professional skills and competence, beyond the accounting hours
required for a baccalaureate degree in accounting, from a university that is recognized
by the board. The hours required for a baccalaureate degree plus the additional hours
must equal or exceed 150 semester hours. The coursework should be in established
courses offered through colleges, i.e.: architecture, business administration,
communications, engineering, fine arts, liberal arts, science, or another established
discipline, within the university.
(b) Any CPA review course offered by an institution of higher education or a proprietary
organization shall not be used to meet the board's 150 semester hour requirement.
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RULE 511.70 Grounds for Disciplinary Action of Applicants
(a) The board may discipline an applicant for any grounds specified in §901.503 Act ·
(relating to Board Action Involving Applicant). Such grounds include but are not limited
to the conduct described in subsections (b)- (e) of this section.
(b) The board may discipline an applicant for making a false, fraudulent or materially
misleading statement or a material omission on, or in connection with, any application
for evaluation, examination or to become a CPA of this state. The withdrawal of any
application shall not deprive the board of its authority to take action against an
applicant.
(c) The board may discipline an applicant for failing to comply with written guidelines for ·
appropriate conduct by an applicant during the examination or oral guidance by a
testing center administrator at any examination location.
(d) The board may discipline an applicant for cheating, subverting, attempting to
subvert, aiding, abetting or conspiring to cheat on the UCPAE at any location within the
state where the examination is given, or where a Texas applicant is taking the UCPAE
at a location outside of the state. The voluntary departure or expulsion from an
examination shall not deprive the board of its authority to take action against an
applicant.
(e) Cheating, subverting, attempting to subvert, aiding, abetting or conspiring to cheat
on the UCPAE includes, but is not limited to, engaging in, soliciting, or procuring any of
the following:
(1) any communication between an applicant and anyone other than a proctor or exam
administrator while the examination is in progress;
(2) any communication between an applicant and anyone at any time concerning the
content of the examination including, but not limited to, any exam question or answer,
unless the examination has been publicly released by the preparer of the examination;
(3) taking by another person all or any part of the examination on behalf of an
applicant;
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• 1 (4) possession or use at any time during the examination or while an applicant is in the
2 examination testing center of any device, material, or document that is not expressly
3 authorized for use by examinees during the examination, including, but not limited _to,
4 notes, crib sheets, books, and electronic devices; or
5 (5) using or referring at any time after the commencement of the examination and prior
6 to the conclusion of the examination, to include all breaks during the examination, to
7 any device, material, or document that is not expressly authorized for use by an
8 applicant.
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RULE 511.72 Uniform Examination
(a) The board shall contract with NASBA for the administration of the UCPAE, in
·conjunction with the AICPA and a test vendor. The examination may be offered at the
board's office and at testing facilities within the state that are approved and monitored
by the board or its designee. The examination shall be offered during scheduled months
as determined by the AICPA, NASBA, and the testing vendor.
(b) The board shall utilize the UCPAE available from the AICPA covering the following
sections:
(1) auditing and attestation;
(2) business environment and concepts;
(3) regulation; and
(4) financial accounting and reporting.
(c) An applicant taking the examination is required to have in their possession the
Notice to Schedule form provided by NASBA, a government-issued form of identification
containing a photograph of the applicant, and a second form of identification such as a
board-issued form.
(d) An applicant taking the examination is are required to sign a statement of
confidentiality and conduct, which they must follow during the entire examination.
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RULE 511.73 Notice to Applicant to Schedule Taking a CPA Exam Section
(a) Upon approval of the eligibility application, the board shall inform an examination
applicant that they have 90 days from the date of approval in which to take a section of
the UCPAE.
(b) An applicant is required to pay an examination fee to NASBA for the examination
section for which the applicant has applied.
(c) After payment of the examination fee, an applicant is required to schedule with the
test vendor to take the section at a board-approved location.
(d) An applicant who fails to pay the required examination fee to NASBA or fails to take ,
a section of the UCPAE within the 90-day eligibility period must reapply to the board
and pay the required fees to establish a new eligibility period .
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RULE 511.76 Examination Refund Policy
(a) The eligibility fee paid to the board is not refundable or transferable.
(b) The board, on behalf of an applicant, may request a refund of a portion of the
examination fee paid to NASBA for scheduling a section of the UCPAE. The portion of
the examination fee that is eligible for a refund is the fee paid for computer seat time
and exam grading. NASBA may withhold a charge for refund wocessing. Examination
fee refunds are.subject to the following conditions:
(1) An applicant because of extreme hardship is precluded from scheduling or taking
the section of the UCPAE. Extreme hardship is defined as a serious illness of an
applicant or member of the immediate family or death of an immediate family member.
Immediate family member is a spouse, child or parent. Any other extreme hardship
situation will be reviewed on a case-by-case basis by the board.
(2) A request for refund based on extreme hardship must be in writing. Documentation
of the extreme hardship that precluded an applicant from scheduling or taking the
examination must be received by the board not later than 30 days after the applicant's
eligibility to take the section of the examination expires.
(c) No examination fee will be transferred to a subsequent examination.·
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RULE 511.77 Scoring
(a) Scoring of the UCPAE shall be performed by the AI CPA, subject to the approval of
the board. An applicant must earn the passing score established through a
psychometrically acceptable standard-setting procedure approved by the board. The
passing score is 75. The board shall establish a method for accurately tracking and
recording an applicant's score. An applicant will be notified of the score no later than the
30th day after the day on which the board receives the applicant's score from NASBA,
unless board action is pending; in which case, the applicant is precluded from receiving
the UCPAE score until the board action is resolved. In no event will any information
concerning the applicant's performance on the UCPAE be released to anyone other
than the applicant unless the applicant has delivered written authorization to the board.
(b) An applicant may only request a score review of the UCPAE results from the most
recent testing window established by the AI CPA and shall pay the fee associated with
the score review.
(c) Interpretive comment 1: A score review is generally discouraged because fewer than
1% of all requested score reviews, since the inception of the UCPAE computer-based
testing, have resulted in a change to a score.
(d) Interpretive comment 2: The UCPAE results are subject to routine quality controls
and are scored twice by the AI CPA before scores are released to the board. The score
review is a verification that the approved answer key was applied correctly to the
UCPAE section and that the written communications questions were scored. The score
review is not:
(1) A regrading of the UCPAE section;
(2) An opportunity to find additional points; ,
(3) An opport'unity to review content; or
(4) An opportunity to have an alternate response considered .
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RULE 511.80 Granting of Credit
(a) The board shall grant credit to an applicant for the satisfactory completion of a
section of the UCPAE provided the applicant earns a passing score on the section as
determined by board rule. The credit shall be valid for 18 months from the actual date of
notification of passing score results.
(b) An applicant must pass the remaining sections within the next 18 months. Should an
applicant's exam credit be invalidated due to the expiration of 18 months without
earning credit on the remaining sections, the applicant remains qualified to take the
examination.
(c) An applicant receiving and retaining credit for every section on the UCPAE; within an
18-month period, subject to the limitations imposed by the Act, shall be considered by
the board to have completed the examination and may make application for certification
as a CPA
(d) An applicant who has received and retained credit for any or all sections on the
UCPAE may transfer such credits to another licensing jurisdiction if the applicant pays
in advance a transfer fee set by board rule as identified in §521.7 of this title (relating to
Fee for Transfer of Credits) .
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Rule 511.82 Application for Transfer of Credits
(a) An applicant who has satisfactorily completed all or part of the UCPAE given by the
licensing authority of another jurisdiction may make application to the board for the
transfer of the credits provided:
(1) the examination was prepared and scored by the AICPA;
(2) the credits are active in the state of origin; and
(3) the applicant meets the requirements in effect in the state of origin at the time credit
was earned so long as the state's standards are equal to or higher than those
prescribed in the Act.
(b) The application shall be made on a form prescribed by the board and indude a
nonrefundable filing fee in ao«>rdanee with, accompanied by the requisite fee set by the
board and identified in §521.7 of this title (relating to Fee for Transfer of Credits). An
applicant must also submit additional documents to include \Nritten authoriza~ion from
the applicant for the board to solicit and receive information related to the applicant and
the scores made and credits earned by the applicant on all examinations taken under
the jurisdiction of another state.
ill educationat documents to sypport that the applieaot metal of the·. board
reguimment§ prior to earning Qfllftt on the. UCP AE from the staie'Of orlain,
m written a~n of tl\!it ~ made and credits eaJll@d from. the stated grtgin
by the apOOcant on the UCPAE.
(c) The board shall tttainta!n the arm.tication until the second ann~ary of the .dati the
appliCation is filed. unless the anplioant:
(1) who CQffipletad aU of the UCPAE. completes all of the board's bnsing
requirements; or
(2) who completed part of the UCPAE. takes the UCPAE offered bv the board. AH
applicant must meet all of the eligibility requirements of the Act at the time of the
transfer of credits from the licensing jurisdiction.
(d) An applicant approved to transfer partial credits must then apply for tho UCP/\E.
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-Ee1@ An applicant approved to transfer credits must provide evidence of the
completion of a three-semester hour board-approved ethics course prior to issuance of
the CPA certificate.
(e) An applicant must comoJv wlh the board's procedure to. invel)gate.the moral
character OfaQRiiCants in ~.wl.tl an $$tabtishQd fifJ;I»: print~ bit acceS@§ fM E~ Bureau efJ~n !FBO ditab8sftgtht Twcag Department Qf PUblic Safety..,. CdtM Reeord§ division file$.
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RULE 511.83 Granting of Credit by Transfer of Credit
(a) In order for the board to grant credit to an applicant for partial completion of the
UCPAE given by the licensing authority of another jurisdiction the applicant must have
met the following requirements:
(1) earned a score of 75 or higher on any section of the examination;
(2) was awarded credit by the licensing authority of another jurisdiction for the
section(s) taken while an applicant of that board; and
(3) the credit awarded by the licensing authority of another jurisdiction has not expired.
(b) If the board accepts transfers of credit, it will also accept transfers of credit for
sections passed at subsequent examinations.
(c) The grades made by an applicant on sections under consideration must be the ones
reported to the licensing authority of another jurisdiction by the AICPA through NASBA.
(d) An applicant allowed credit for section(s) passed must pass the remaining section(s)
within the next 18 months from the date credit was awarded or forfeit credit received for
the section.
(e) An applicant who has earned the right to partial reexamination and who fails to pass
the remaining section(s) of the examination within the applicable time limits shall lose
the right to partial reexamination and must take the entire examination upon later
application .
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• 1 RULE 511.87 Loss of Credit
2
3
4 (a) An applicant having earned credit under this Act or a prior Act and who has two
5 testing windows remaining before the expiration of credits earned shall be notified prior
6 to each UCPAE of these facts. (See §511.1 02 of this chapter (relating to CPA
7 Examination Availability) for the definition of testing window.)
8 (b) An applicant failing to receive credit for all sections within the time limitation of this
9 Act shall be notified that credits have expired.
10 (c) The expiration of credits shall not hinder an applicant from reapplying for the
11 examination .
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RULE 511.91 Board Responsibilities Regarding Requested
Accommodations for Disabilities
(a) The Board recognizes its responsibilities under Title II of the Americans with
Disabilities Act to provide appropriate and effective accommodations, including auxiliary
aids, to qualified examination applicants with disabilities. However, the Board will not
fundamentally alter the measurement of.the skills or knowledge the examination is
intended to test.
(b) The Board recognizes its responsibility to accommodate the identified needs of
qualified individuals with disabilities by making reasonable modifications and/or
providing auxiliary aids. This does not mean that all requests for accommodation, and/or
auxiliary aids will be granted, or that the applicant will receive the particular
accommodations or services sought at every testing center. The Board is not required
to grant the request if doing so would fundamentally alter the measurement of the skills
or knowledge the examination is intended to test, or would create an undue financial or
administrative burden .
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• 1 RULE 511.92 Definitions
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The following words and terms when used in this chapter shall have the following
meanings, unless the context clearly indicates otherwise.
(1) Disability--A physical or mental impairment that substantially limits one or more of
the major life activities of an individual; a record of such an impairment; being regarded
as having such an impairment.
(2) Learning disa~ility--Evidence of significant learning difficulties which substantially
affect or limit one or more major life activities, and which are not primarily due to
cultural, emotional, or motivational factors. The term does not include learning problems
which are primarily the result of visual, hearing, or motor disabilities, mental retardation,
emotional disturbance, or of environmental, cultural, or economic disadvantage. Note
that while some of these factors may be involved in other types of disabilities, such
factors are excluded from the determination of a learning disability.
(3) Major life activities--Walking, speaking, seeing, hearing, breathing, learning,
working, caring for one's self.
(4) Mental impairment--Any mental or psyGhological disorder such as organic brain
syndrome, emotional or mental illness, and specific learning disabilities.
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• 1 RULE 511.93 Applicant's Responsibility for Requesting Accommodations for
Disabilities
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An applicant seeking an accommodation is responsible for making a request for
accommodation and providing documentation of the need with the Application of Intent
or the Eligibility Application submitted to the board. This information shall be kept
confidential to the extent provided by law. The board will evaluate each request ·-
individually, in accordance with the guidelines set forth herein, to provide an appropriate
and effective accommodation. All requests to the board for accommodation shall be
submitted on the prescribed form .
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RULE 511.94 Documentation of the Need for an Accommodation
(B) In the case of learning disabilities, a qualified evaluator shall have sufficient
experience to be considered qualified to evaluate the existence of learning disabilities
and proposed accommodations needed for specific learning disabilities. The evaluator
shall be one of the following:
(i) a licensed physician or psychologist who possesses a minimum of three years
experience working with adults with learning disabilities, and who has training in all of
the areas described in clause (ii) of this subparagraph; or
(ii) another professional who possesses a master's or doctoral degree in special
education or educational psychology from a regionally accredited institution, defined as
being accredited or an applicant for accreditation, identified by the American
Association of Collegiate Registrars and Admissions Officers, and who has at least
three years of equivalent training and experience in all of the areas described in
subclauses (I) - (IV) of this clause:
(I) assessing intellectual ability level and interpreting tests of such ability;
(II) screening for cultural, emotional, and motivational factors;
(Ill) assessing achievement level; and
(IV) administering tests to measure attention and concentration, memory, language
reception and expression, cognition, reading, spelling, writing, and mathematics.
(3) Professional verification of the disability, which shall include:
(A) the nature and extent of the disability;
(B) the test(s) performed to diagnose the disability, if applicable;
(C) the effect of the disability on the applicant's ability to perform under standard
testing conditions;
(D) the recommended accommodation and how it relates to the applicant's disability,
given the format. of the examination;
(E) the professional's name, title, telephone number, professional license or
certification number, educational credential, and his/her original signature; and
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RULE 511.95 Eval~ation of the Accommodation Request
(a) The board has the responsibility to evaluate the accommodation request and to
approve, deny, ·or suggest alternative reasonable accommodations. The board may
consider an applicant's history of accommodation in determining its reasonableness in
relation to the currently identified impact of the disability.
(b) If th~ board believes the requested accommodation is inappropriate, it shall consult
with the applicant to reach a mutually agreeable solution, whenever possible. The board
reserves the right to determine what it believes is a reasonable accommodation.
However, if the board does not accept a qualified professional's most recent opinion
supporting a requested accommodation and the required documentation is complete,
the board shall bear the costs of gathering further evidence of the need for an
accommodation.
(c) The board shall give greater weight to a more recent diagnosis if the condition or
available accommodations are subject to change. Alternative accommodations may be
provided when they are recommended by a qualified professional as defined in §511.97
of this chapter (relating to Examination of Applicant Approved with Accommodation).
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RULE 511.96 Appeal from Denial of Request
(a) If an applicant's accommodation request is rejected, denied in whole or in part, or
modified by the board for any reason, the applicant shall be notified in writing of the
reason(s), postmarked no later than 30 days after the final filing date of the examination
for which the applicant has applied. The board shall advise the applicant of the right to
appeal, including the procedures to follow.
(b) If the denial is based on the rejection of the professional's opinion supporting the
request, the board shall support such rejection with evidence from another professional
whom it has consulted in evaluating an applicant's request. The applicant shall be
provided with the general opinion of the board's evaluator, including the basis for the
opinion.
(c) An applicant's appeal of a decision denying his/her request in whole or in part shall
be in the form of a signed or otherwise verified request, including the following:
(1) applicant's name;
(2) date of request; and
(3) facts in support of the appeal..
(d) The appeal shall be accompanied by documentation not previously provided which
an applicant wishes the board to consider in its decision. The appeal shall be
postmarked no later than 20 days after the applicant received notification of the denial.
(e) The board reserves the right to request further evidence on the necessity of the
accommodation. Based on its judgment, the board may request that an applicant submit
to another professional examination to verify the disability and/or to determine what
accommodations are most appropriate and effective. In such a case, the board shall
assume responsibility for any expens~s incurred in obtaining this information .
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Rule 511.97 Examination of Applicant Approved with Accommodation
(a) A lj§ting of.ayalabte aeccpllftlOfotatioM ebJIM~tDiie,lpmltw
NAS8A. The board may authorize one or more of the follmving accommodations for an
applicant for the CPA examination.
(1) /\dditional testing time typically time and a half or double time.
(2) Separate room must be monitored throughout test administration.
(3) Reader a board approved individual to read information verbatim from the screen
for examinees, separate room required.
(4) Amanuensis a board approved individual to operate mouse and/or keyboard for
examinee, separate room required.
(5) Sign Language Interpreter a board approved individual to sign instructions and ..
serve as interpreter between the test center administrator and examinee. Sign language
interpreters are normally not allowed to accompany examinees into the testing room.
(6) lntelikeys keyboard allows examinee 'Nith limited use of hands to operate the
keyboard.
(7) lntelikeys keyboard with magic arm and super clamp swivel arm that allmvs
precise placement of the keyboard.
(8) Kensington expert mouse trackball mouse.
(9) Headmaster plus mouse unit mouse operated by head movements.
(1 0) Selectable background and foreground colors allmvs selection of text and
background colors for ease of reading on screen.
(11) Screen magnifier attaches to monitor and enlarges the screen.
(12) Zoomtext soft\vare screen magnification.
(b) If the board approves the applicant's request for accommodation, the board will
notify the apltlficant and NA$BA contact the testing center not less than 30 days prior
to the date that the applicant may test. It is the applicant's responsibility to advise the
board of a primary and secondary date for testing.
(c) Upon arrival at the testing center the applicant may not del!le request other
accommodations or add accommodations in addition to those the board has authorized.
• 1 (d) There will be no additional fee charged to any candidate for an accommodation
2 approved by the board under this rule .
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• 1 RULE 511.102 2
CPA Examination Availability
3
4 The examination will be available at test centers on designated days and at designated
5 times during tRe testing windows throughput the tear. of JanuaPf/February, April/May,
6 July/August, and October/November.
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RULE 511.103 Examination Scheduling
(a) An applicant shall schedule the UCPAE through a call center or the internet at a
website maintained by the vendor for that purpose. Contact information for the call
centers, websites and test centers is available at the board's office and through its
website.
(b) An applicant who schedules at least 45 days in advance of the requested exam
session will be offered a seat on a specific date if requested and at a test center within
60 miles of the requested test center. If an applicant does not request a specific exam
date, the applicant will be offered the first available exam date at the requested test
center or at a test center within 60 miles of the requested test center.
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RULE 511.104 Test Center Locations
(a) A list of test center locations is available at the board's office and on the board's
website ..
(b) The board may require that the CPA exam be discontinued at a test center due to:
(1) inadequate staffing;
(2) breach in security; or
(3) other conditions that are not in compliance with requirements set out by the Board,
AICPA or NASBA.
(c) All test center locations will conform to the standards established by the Americans
with Disabilities Act of 1990, a lfMndfd .
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RULE 511.105 Test Center Check-In
(a) An applicant for the UCPAE must present the Notice to Schedule, provided by
NASBA, and two forms of identification to the test center administrator at the time of
check-in to take a section of the exam. One form of identification must be a
government-issued document, such as a valid driver's license or unexpired passport,
and contain the photograph and signature of the applicant. The applicant's name on the
form of identification must match the Notice to Schedule and the record in the vendor's
database of the applicant scheduled to take the exam.
(b) An applicant is required to have his digital photograph and fingerprints taken by the
test center administrator during check-in, and to be scanned by a hand-held metal
detector wand before each entry into the testing room.
(c) An applicant is permitted to take into the testing room only items authorized by the
board, examined by the test center administrator, and not in violation of the vendor's
security policy and procedures .
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• 1 RULE 511.106
2
Compliance with Test Center Rules
3
4 (a) An applicant who fails to follow reasonable test center rules and procedures or who
5 fails to operate the test center equipment with reasonable care may be removed from
6 the test center and excluded from future examinations for up to five years.
7 (b) The board shall be informed of the removal and exclusion of an applicant.
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RULE 511.107 No-Show, Late Arrival and Late Cancellation
(a) An applicant is not eligible for a refund of the hourly testing fee if the applicant:
(1) fails to appear for a scheduled section of the.UCPAE;
(2) arrives more than 30 minutes after the scheduled start time for taking the section of
the UCPAE and is refused admission to the exam; or
(3) changes or cancels a section of the UCPAE after the applicable Test
Cancellation/Change Deadline.
(b) An applicant may be charged a reasonable fee for a rescheduled exam or
cancellation.
(1) An applicant who requests a change in scheduling or cancellation 30 or more days
prior to the original day of testing will not be charged an additional fee.
(2) An applicant who requests a change in scheduling or cancellation 29 to six days
prior to the original day of testing will be charged an additional fee set by the test
vendor. The applicant must make direct contact by noon of the fifth business day before
the day of the exam with personnel at the call center or at a local testing center. Leaving
a message on a recorder or a voice mail is not sufficient to confirm a change or
cancellation.
(3) An applicant who requests a change in scheduling or cancellation less than six
days prior to the original day of testing will be charged an additional fee equal to the
amount of the full test fee.
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17
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RULE 511.121 Application for Approval of Experience
(a) The board, through an applicant's submission of qualifying supervised work
experience, shall insure that the applicant applying for the CPA certificate has
demonstrated high standards of professional competence, integrity, independence, and
learning.
(b) Acceptable work experience shall be gained in at least one of the following areas:
(1) attest services as defined in §501.52(4) of this title (relating to Definitions);
(2) professional accounting services or professional accounting work as defined in
§501.52(22) of this title.
(c) The board, on a case-by-case basis, may approve other areas of work experience
which are recognized as non-routine accounting work.
(d) An applicant for certification as a CPA shall submit application for approval of work
experience. The application shall be made on a form prescribed by the board and
submitted after completion of the UCPAE examination requirement.
(e) Acceptable work experience shall be commensurate with the provision of §901.256
of the Act (relating to Work Experience Requirements).
(f) No advance rulings on the acceptance of work experience Will be given.
71
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31
RULE 511.122 Acceptable Work Experience
(a) Work experience shall be under the superyision of a CPA experienced in the non
routine accounting area assigned to the applicant and who holds a current license
issued by this board or by another state board of accountancy as defined in §511.124 of
this chapter (relating to Acceptable Supervision).
(b) Non-routine accounting involves attest services as defined in §501.52(4) of this title
(relating to Definitions), or professional accounting services or professional accounting
work as defined in §501.52(22) of this title, and the use of independent judgment,
applying entry level or higher professional accounting knowledge and skills to select,
correct, organize, interpret, and present real-world data as accounting entries, reports,
statements, and analyses extending over a diverse range of tax, accounting, assurance,
and control situations.
(c) All work experience, to be acceptable, shall be gained in the following categories or
in any combination of these:
(1) Client practice of public accountancy. All work experience gained in a firm in the
client practice of public accountancy must be of anon-routine accounting nature which
continually requires independent thought and judgment on important accounting
matters. If such firm is a CPA firm it shall be in good standing with the board, or, if the
experience is gained in another state or territory, the firm shall be in good standing and
in compliance with all laws applicable to CPA firms of that state or territory.
(2) Industry. All work experience gained in industry shall be of a non-routine
accounting nature which continually requires independent thought and judgment on
important accounting matters. Acceptable industry work experience includes:
(A) internal auditor;
(B) staff, fund or tax accountant;
(C) accounting, financial or accounting systems analyst; and
(D) controller .
(3) Government. All work experience gained ,in government shall be of a non-routine
accounting nature which continually requires independent thought and judgment on
"1?
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• 30
important accounting matters and which meets the criteria in subparagraphs (A) - (E) of
this paragraph. The board will review on a case-by-case basis experience which does
not clearly meet the criteria identified in subparagraphs (A) - (E) of this paragraph.
Acceptable government work experience includes but is not limited to:
(A) employment in state government as an accountant or auditor at Salary
Classification B14 -B9 or above, or a comparable rating;
(B) employment in federal government as an accountant or auditor at a GS Levellt
+or above;
(C) employment as a special agent accountant with the Federal Bureau of
Investigation;
(D) military service, as an accountant or auditor as a Second Lieutenant or above;
and
(E) employment with other governmental entities as an accountant or auditor.
(4) Law firm. All work experience gained in a law firm shall be of a non-routine
accounting nature which continually requires independent thought and judgment on
important accounting matters comparable to the experience ordinarily found in a CPA
firm, shall be under the supervision of a CPA or an attorney, and shall be in one or more
of the following areas:
(A) tax-planning, compliance and litigation; and
(B) estate planning.
(5) Education. Work experience gained as an instructor at a college or university Jill
will qualify if evidence is presented showing independent thought and judgment was
used on non-routine accounting matters. Only the teaching of upper division courses on
a full time basis may be considered. All experience shall be supervised by the
department chair or a faculty member who is a CPA.
(6) Internship. The board will consider, on a case-by-case basis, experience acquired
through an approved accounting internship program, provided that the experience was
non-routine accounting as defined by' subsection (b) of this section. If an accounting
internship course is counted toward fulfilling the education requirement, the internship
may not be used to fulfill the work experience requirement.
• 1 (7) Other. Work experience gained in other positions may be approved by the board as
2 experience comparable to that gained in the practice of public accountancy under the
3 supervision of a CPA upon certification by the person or persons supervising the
4 applicant that the experience was of a non-routine accounting nature which continually
5 required independent thought and judgment on important accounting matters.
6 (8) Self employment may not be used to satisfy the work experience requirement
7 unless approved by the board .
•
• 7/J.
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5
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7
8
9
10
11
12
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14
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21
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23
•
RULE 511.123 Reporting Work Experience
(a) One year of experience shall consist of full time or part time employment that
extends over a period of noW tllM 12 months~ ........... ROt
less than one year and not more than three years and includes not fe•11ver than 2000
hours of performance of services described in §511.122 of this chapter (relating to
Acceptable Work Experience).
tbl Wtrk1D911!Pmay be,.obtaifttd ttfroygh·muttiJ.wnftflntJwat..,.l
minimum of2.Clboors per'\f\lekon a regmar basis vnt:H2Qlll·&wu;a of....._ work !kl!rku\c! M dtsq=ibed ln,§511.122 af this dJat*J;iQdltiftg'toAII.,.._
Work Ealrittlal has beenMmlltu.l;. . ExperienceQiitwd ·tla91!1b·Jadilll
ampltymenttRWtbe comRl!ted in less than three ~YMrl fljQil•
date the WQJjk b!IIIns.
(b) 'Nark experience must be reported in years and months.
(c) All work experience presented to the board for consideration shall be accompanied
by the following items:
(1) the applicant's detailed job description;
(2) a statement from the supervising CPA describing the non-routine work performed
by the applicant and a description of the important accounting matters requiring the
applicant's independent thought and judgment; and
(3) a statement from the supervising CPA describing the type of experience that the
CPA possesses which qualifies the CPA to supervise the applicant.
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•
RULE 511.124 Acceptable Supervision.
(a) Acceptable supervision must be performed by a CPA experienced in the non-routine
accounting area assigned to an applicant and who holds an active license or permit in
this state or another state.
(1) Supervision is provided whenever the person being supervised reports to, is
instructed by, is reviewed by, and is evaluated directly by the supervisor. The supervisor
in this capacity may be in an intermediate level of supervision above the applicant
(2) Where there is no CPA, acceptable supervision may be gained if the following
conditions are met:
(A) a registered CPA firm is engaged to provide supervision, review, and evaluation
of work experience; and
(B) the supervision, review, and evaluation of work is performed on a routine and
recurring basis to permit the CPA firm to provide documentation of work experience;
(C) the CPA firm does not perform attest services for which independence is required
for the applicant or the applicant's employer; and
(D) the CPA assigned to provide the supervision is actively licensed and experienced
to provide such supervision in the non-routine accounting area assigned to the
applicant.
(3) Telecommunications equipment and computers may be used to facilitate
supervision. The board requires detailed documentation if such devices are used to
facilitate supervision.
(b) It is the responsibility of an applicant to prove that supervision was adequate and
effective in any situations inconsistent with the above examples .
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3
4
5
6
7
8
9
10
11
12
RULE 511.161 Qualifications for Issuance of a Certificate
The certificate of a CPA shall be granted by the board to an applicant who qualifies
under the current Act and has met the following qualifications:
(1) successfully completed the UCPAE;
{2) met the education requirements;
(3) submitted an application prescribed by the board;
(4) submitted the requisite fee, set by the board, for issuance of the certificate;
(5) provided evidence of good moral character;
{6) submitted, on a form prescribed by the board, evidence of completion of the work
experience requirements commensurate with the education requirements;
.13 14
(7) executed an oath of office stating support of the Constitution of the United States
and of this state and the laws thereof, and compliance with the board's Rules of
Professional Conduct;
15 (8) an applicant who has completed a board-approved ethics course more than two
16 ·years prior to the date of submitting an application for issuance of a CPA certificate
17 must complete a board-approved four-hour ethics course of comprehensive study on
18 the board's Rules of Professional Conduct;
19 (9) successfully completed the examination on the board's Rules of Professional
20 Conduct; and
21 (1 0) provided any other information requested by the board .
• ..,..,
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16
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18
•
RULE 511.162 Application for Issuance of the Certificate by Exam After
Completion of the CPA Examination
(a) Application for issuance of the CPA certificate must be made on forms prescribed by
the board and shall be in compliance with board rules and with all applicable laws.
(b) The board will send an application for issuance of the CPA certificate to an applicant
who successfully completes the UCPAE, and thereafter as requested by the same
applicant.
(c) An applicant must submit with the issuance application all information required in
§511.161 of this chapter (relating to Qualifications for Issuance of a Certificate).
(d) An applicant must submit with the application for issuance of a certificate the
requisite fee in accordance with set by board in §521.9 of this title (relating to
Certification Fee).
(e) An applicant must corrpty with the board's procedure to invetitigate the J11Mil
character of applicant§ in a~Qe with an establi$bed finger prjnt~:rooewrttwt
accesses the federal Bureau of Investigation {fBI) and the Texat tlep:artrn•rN,fNttic Safety - Crime records division fites.
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17
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20
21
22
•
RULE 511.163 Board-Approved Ethics Requirement and Examination on the
Rules of Professional Conduct
(a) An applicant applying for the issuance of the CPA certificate who has not completed
a board-approved ethics course within the past two years to meet the education
requirements to take the UCPAE, must successfully complete a board-approved four
hour ethics course of ~omprehensive study on the board's Rules of Professional
Conduct offered through a board-approved and registered provider of CPE.
(b) An applicant applying for the issuance of the CPA certificate who completed a
board-approved ethics course to meet the education requirements to take the UCPAE
more than two years prior to the date of submitting the application for issuance of the
CPA certificate must successfully complete a board-approved four-hour ethics course of
comprehensive study on the board's Rules of Professional Conduct offered through a
board-approved and registered provider of CPE.
(c) An applicant applying for the issuance of the CPA certificate must also pass an
examination on the board's Rules of Professional Conduct.
(1) The examination on the Rules of Professional Conduct must be completed not
more than six months prior to the issuance of the CPA certificate.
(2) A grade of 85% on the exam is considered passing.
(3) If a grade of 85% is not scored on the exam, the applicant will be sent another
exam to study and complete .
"7Q
- -----------------
•
5
•
•
•
•
•
AGENDA
Qualifications Committee
September 21, 2016
E. Discussion, consideration and possible action concerning information received from boards of accountancy, NASBA, AI CPA and Prometric.
DISCUSSION: exam data .
Information received from NASBA concerning recent CPA
RECOMMENDATION: Information only. No action is required.
on
•
•
•
CPA Exam Performance Summary: 2016 Q-2
Texas Overall Performance
Unique Candidates
New Candidates
Total Sections
Passing 4th Section
Sections/Candidate
Pass Rate
Average Score
Vl ClJ +-' ra ""0
Candidates
3
16 Pass Rate
3,391
623
4,803
569
1.42
53.2%
73.3
Sections
3
16 Avg Score
Section Performance
Sections Score
First-Time 3,055 75.3
Re-Exam 1,748 69.9
AUD 1,388 76.0 .
BEC 1,105 74.7
FAR 1,044 68.9
REG 1,266 72.9
Exam Type by Percent
Re-Exam 36%
First-Time 64%
%Pass
61.4%
38.8%
56.3%
59.2%
42.1%
53.8%
""0 c ra u 2014 Q-2 2014 Q-3 2014 Q-4 2015 Q-1 2015 Q-2 2015 Q-3 2015 Q-4 2016 Q-1 2016 Q-2
Vl c 0 +-' u ClJ
(/")
Vl Vl ra a..
*
2014 Q-2 2014 Q-3 2014 Q-4 2015 Q-1 2015 Q-2 2015 Q-3 2015 Q-4 2016 Q-1
58% 55% 47% 54% 55% 53% 48% 53%
Q -o 0 0
2014 Q-2 2014 Q-3 2014 Q-4 2015 Q-1 2015 Q-2 2015 Q-3 2015 Q-4 2016 Q-1
01
4,803
2016 Q-2
53%
0
2016 Q-2
•
•
•
CPA Exam Performance Summary: 2016 Q-2
Demographics
• Male
• Female
Not Reported
Male Candidates 1,508
Female Candidates 1,883
Not Reported 0
44.5%
55.5%
0.0%
Residency
Candidate Count In-State Add ress
Out-of-State Address
Foreign Address
% of Candidates
In-State Address Out-of-State Address
Foreign Address
Degree Type Candidate Cou.nt
Bachelor's Degree
Advanced Degree
Enrolled/Other
Average Age 29.3 % of Candidates
Bachelor's Degree Advanced Degree
Enrolled/Other Age Rank 25
New Candidates vs Candidates Passing 4th Section
2014 Q-2 2014 Q-3 2014 Q-4 2015 Q-1 2015 Q-2 2015 Q-3 2015 Q-4 2016 Q-1
• New Candidat es • Pass 4th
Notes about the Data
3,260
128
3
96.1%
3.8%
0.1%
1,698
1,025
668
50.1%
30.2%
19.7%
2016 Q-2
1. The data used to develop this report was pul led from NASBA's Gateway System, which houses t he Uniform CPA Examination's
Application and Performance information for al l 55 Jurisdictions .
2. The demographic data related to Age, Gender and Degree Type is provided by the individua l candidates and may not be 100% accurate.
Texas 01)
I I
I I I 1
• Overall Statistics for Testing Window 2016 Q-2
Jurisdiction Count Count FT RE Average Average Average
Candidates Sections Sections Sections Pass Rate Score Age
Alabama 202 250 158 92 51.2% 73.2 30.9
Alaska 1,232 1,686 1,064 622 41.5% 69.1 30.6
Arizona 516 726 492 234 53.6% 72.3 30.0
Arkansas 219 268 133 135 46.6% 69.6 30.0
California 6,886 9,003 5,157 3,846 46.2% 70.7 29.7
Colorado 772 997 558 439 55.9% 74.0 29.7
Connecticut 569 713 350 363 47.6% 71.6 27.7
Delaware 240 324 179 145 46.0% 71.0 31.0
District of Columbia 108 149 87 62 52.4% 71.2 30.4
Florida 1,595 1,973 1,141 832 53.6% 73.1 30.5
Georgia 1,772 2,285 1A60 825 52.9% 73.5 28.6
• Guam 536 816 503 313 42.3% 68.9 31.5
Hawaii 178 228 114 114 41.2% 69.8 29.4
Idaho 160 206 124 82 51.9% 74.5 31.7
Illinois 2,683 3,686 2,294 1,392 56.0% 74.0 27.4
Indiana 660 833 467 366 49.5% 72.0 28 .3
Iowa 403 592 412 180 54.7% 74.0 26.4
Kansas 136 173 75 98 45.7% 71.2 29.6
Kentucky 425 542 311 231 48.0% 71.2 28.6
Louisiana 446 553 298 255 43.4% 69.8 29.4
Maine 582 881 490 391 46.1% 70.2 31.2
Maryland 867 1,107 583 524 43.0% 70.3 30.2
Massachusetts 1A90 1,946 1,170 776 56.3% 74.8 27.0
Michigan 1,145 1A40 898 542 57.6% 74.7 27.5
Minnesota 759 953 565 388 54.3% 73.6 27.1
• Mississippi 183 219 120 99 33.8% 67.2 29 .3
M issouri 716 1,103 817 286 64.5% 76.4 26.5
Montana 365 588 301 287 43 .9% 69.0 28.9
01)
• Jurisdiction Count Count FT RE Average Average Average
Candidates Sections Sections Sections Pass Rate Score Age
Nebraska 159 202 119 83 57.4% 74.9 27.0
Nevada 196 254 143 111 45.3% 71.2 30.5
New Hampshire 971 1,270 469 801 38.3% 68.6 31.7
New Jersey 1,408 1,782 881 901 40.0% 69.2 28.7
New Mexico 191 243 135 108 46.5% 69.3 31.7
New York 6,160 7,922 4,504 3,418 48.8% 71.5 27.3
North Carolina 1,079 1,498 1,018 480 58.7% 74.8 27.8
North Dakota 168 208 122 86 52.9% 72.9 29.1
Ohio 1,154 1,445 756 689 49.1% 72.1 28.3
Oklahoma 340 453 247 206 40.4% 68.8 32.0
Oregon 396 533 344 189 54.0% 72.9 30.7
Pennsylvania 1,707 2,188 1,202 986 50.6% 72.3 27.4
Puerto Rico 444 544 266 278 35.1% 65.2 28.2
• Rhode Island 93 109 56 53 52.3% 72.8 28.6
South Carolina 313 440 298 142 57.1% 74.7 27.7
South Dakota 80 100 57 43 53.0% 73.5 29.0
Tennessee 853 1,146 706 440 50.4% 72.2 29.1
Texas 3,391 4,803 3,055 1,748 53.2% 73.3 29.3
Utah 320 396 291 105 67.4% 76.3 30.6
Vermont 181 281 135 146 44.8% 69.9 29.3
Virginia 1,758 2,268 1,383 885 50.0% 72.6 29.6
Washington 1,414 1,931 1,107 824 51.7% 72.2 31.1
West Virginia 118 144 60 84 41.7% 68.8 30.4
Wisconsin 727 943 622 321 59.4% 74.5 27.2
Wyoming 30 39 22 17 41.0% 68.6 32.1
• OJI
CPA Exam Performance: All jurisdictions
• 2016 Q-2
•
•
Overall Performance Section Performance
Unique Candidates 49,498 Sections Score %Pass
New Candidates 13,730 First-Time 38,320 73.1 56.5%
Total Sections 65,384 Re-Exam 27,064 70.5 40.8%
Passing 4th Section 6,561
AUD 18,298 73.4 48.7%
Sections/Candidate 1.32 BEC 15,156 73.7 56.3%
Pass Rate 50.0% FAR 15,571 69.5 45.6%
Average Score 72.1 REG 16,359 71.4 49.9%
ToQ 3 Jurisdictions Most Candidates
Exam TyQe by Percent
1. Californ ia
2. New York
3. Texas
Highest Pass Rate
1. Utah
2. Missouri
3. Wisconsin
lll Q) +-' ro -a -a c ro
49,191 47,453
6,886
6,160
3,391
67.4%
64.5%
59.4%
Re-Exam
41%
49,673 48,796
First -Time
59%
49,498
u 2014 Q-2 2014 Q-3 201A Q-4 2015 Q-1 2015 Q-2 2015 Q-3 2015 Q-4 2016 Q-1 2016 Q-2
lll c 0 +-' u Q)
(/)
lll lll ro
0...
'cf2.
69,651 62,634 69,950 64,189 65,384
2014 Q-2 2014 Q-3 2014 Q-4 2015 Q-1 2015 Q-2 2015 Q-3 2015 Q-4 2016 Q-1 2016 Q-2
2014 Q-2 2014 Q-3 2014 Q-4 2015 Q-1 2015 Q-2 2015 Q-3 2015 Q-4 2016 Q-1 2016 Q-2
Data and Trends publishes ~Y NASBA (www.nasba.org)
•
•
• Male
• Female
CPA Exam Performance: All jurisdictions
Demographics Residency
Candidate Count
In-State Address
Out-of-State Address
Foreign Address
Not Reported % of Candidates
In-State Address
Out-of-State Address
Foreign Address
2014 Q-2
Average Age 29.3 29.3
Degree Type Candidate Count
Bachelor's Degree
Advanced Degree
Enrolled/Other
% of Candidates Bachelor's Degree
Advanced Degree
Enrolled/Other
New Candidates vs Candidates Passing 4th Section
co (J) m ul ..-i
2014 Q-3 2014 Q-4 2015 Q-1 2015 Q-2 2015 Q-3 . 2015 Q-4 2016 Q-1
• New Candidates • Pass 4th
Notes about t he Data
37,451
7,856
4,191
75.7%
15.9%
8.5%
33,446
9,128
6,924
67.6%
18.4%
14.0%
2016 Q-2
1. The data used to develop this report was pulled from NASBA's Gateway System, wh ich houses t he Uniform CPA Exami nation's
Appl ica t ion and Performance information for all 55 Jurisdictions.
• 2. The demographic data re lated to Age, Gender and Degree Type is provided by the individua l candidates and may not be 100% accurate.
2016 Q-2 Data and Trends publisheS BY NASBA (www.nasba.org)