SUBCHAPTER 8G ‑ CONTINUING PROFESSIONAL EDUCATION
(CPE)
SECTION .0100 ‑ GENERAL PROVISIONS
21 NCAC 08G .0101 COMPLIANCE WITH BOARD RULES OF
PROFESSIONAL ETHICS/CONDUCT
21 NCAC 08G .0102 DISCREDITABLE CONDUCT
21 NCAC 08G .0103 DISCIPLINE BY FEDERAL AND STATE
AGENCIES OR BOARDS
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. February 1, 1976;
Readopted Eff. September 26, 1977;
Amended Eff. September 1, 1992; October 1, 1992; May 1,
1989; July 1, 1987;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0104 INELIGIBILITY
DUE TO VIOLATION OF ACCOUNTANCY ACT
21 NCAC 08G .0105 PUBLIC PRACTICE OF ACCOUNTANCY IN
CORPORATE FORM
History Note: Authority G.S. 93‑8; 93‑12(9);
Eff. February 1, 1976;
Readopted Eff. September 26, 1977;
Amended Eff. August 1, 1983;
Repealed Eff. October 1, 1984.
21 NCAC 08G .0106 VIOLATION OF TAX LAWS
21 NCAC 08G .0107 INDEPENDENCE
21 NCAC 08G .0108 INTEGRITY AND OBJECTIVITY
21 NCAC 08G .0109 COMPETENCE
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. February 1, 1976;
Readopted Eff. September 26, 1977;
Amended Eff. May 1, 1989; September 1, 1988; April 1,
1987; October 1, 1984;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0110 INELIGIBILITY DUE TO VIOLATION OF
ACCOUNTANCY ACT
History Note: Authority G.S. 93‑12(5),(9);
Eff. June 1, 1985;
Amended Eff. June 1, 1988;
Repealed Eff. May 1, 1989.
21 NCAC 08G .0111 PUBLIC PRACTICE OF ACCOUNTANCY IN
CORPORATE FORM
History Note: Authority G.S. 93‑8; 93‑12(9);
Eff. June 1, 1985;
Repealed Eff. March 1, 1987.
21 NCAC 08G .0112 DISCIPLINARY ACTIONS FOR VIOLATIONS
History Note: Authority G. S. 55B‑12; 93‑12(9);
Eff. September 1, 1986;
Amended Eff. March 1, 1990; May 1, 1989; July 1, 1987;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0113 REPORTING CONVICTIONS, JUDGMENTS AND
DISCIPLINARY ACTIONS
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. October 1, 1987;
Amended Eff. May 1, 1989; February 1, 1988;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0114 COOPERATION WITH BOARD INQUIRY
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. May 1, 1989;
Repealed Eff. April 1, 1994.
SECTION .0200 ‑ RESPONSIBILITIES TO CLIENTS AND
COLLEAGUES
21 NCAC 08G .0201 AUDITING STANDARDS
21 NCAC 08G .0202 ACCOUNTING PRINCIPLES
21 NCAC 08G .0203 FORECASTS
21 NCAC 08G .0204 CONFIDENTIAL CLIENT INFORMATION
21 NCAC 08G .0205 CONTINGENT FEES
History Note: Authority G.S. 55B‑12; 93‑12(8c);
93‑12(9);
Eff. February 1, 1976;
Readopted Eff. September 26, 1977;
Amended Eff. September 1, 1993; April 1, 1991; May 1,
1989; June 1, 1988;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0206 ENCROACHMENT
History Note: Authority G.S. 93‑8; 93‑12(9);
Eff. February 1, 1976;
Readopted Eff. September 26, 1977;
Repealed Eff. November 6, 1979.
21 NCAC 08G .0207 OFFERS OF EMPLOYMENT
History Note: Authority G.S. 93‑8; 93‑12(9);
Eff. February 1, 1976;
Readopted Eff. September 26, 1977;
Repealed Eff. August 7, 1978.
21 NCAC 08G .0208 ACCOUNTING AND REVIEW SERVICES
STANDARDS
21 NCAC 08G .0209 MANAGEMENT ADVISORY SERVICES STANDARDS
21 NCAC 08G .0210 RESPONSIBILITIES IN TAX PRACTICE
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. January 1, 1983;
Amended Eff. May 1, 1989; June 1, 1988; July 1, 1987;
August 1, 1986;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0211 GOVERNMENTAL ACCOUNTING STANDARDS
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. August 1, 1986;
Amended Eff. May 1, 1989; June 1, 1988; July 1, 1987;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0212 ATTESTATION STANDARDS
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. February 1, 1987;
Amended Eff. May 1, 1989; June 1, 1988;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0213 RETENTION OF CLIENT RECORDS
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. May 1, 1989;
Repealed Eff. April 1, 1994.
SECTION .0300 ‑ OTHER RESPONSIBILITIES
21 NCAC 08G .0301 ADVERTISING OR OTHER FORMS OF
SOLICITATION
21 NCAC 08G .0302 COMMISSIONS
21 NCAC 08G .0303 INCOMPATIBLE OCCUPATIONS
21 NCAC 08G .0304 QUALIFICATION OF PARTNERS
21 NCAC 08G .0305 NAME OR STYLE OF A PRACTICE
21 NCAC 08G .0306 FIRM NAME OR STYLE OF A PRACTICE
History Note: Authority G.S. 55B‑5; 93‑12(9);
Eff. February 1, 1976;
Readopted Eff. September 26, 1977;
Amended Eff. March 1, 1992; October 1, 1991; April 1,
1991; May 1, 1989;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0307 COMPLAINTS
History Note: Authority G.S. 55B‑12; 93‑12(9);
Eff. February 1, 1976;
Readopted Eff. September 26, 1977;
Amended Eff. October 1, 1984; April 1, 1982; June 16,
1980;
Repealed Eff. March 1, 1987.
21 NCAC 08G .0308 RESERVED FOR FUTURE CODIFICATION
21 NCAC 08G .0309 RESERVED FOR FUTURE CODIFICATION
21 NCAC 08G .0310 PRACTICE THROUGH A NON‑COMPLYING
FIRM PROHIBITED
21 NCAC 08G .0311 FALSIFICATION IN CONNECTION WITH
QUALITY REVIEW PROGRAMS
21 NCAC 08G .0312 QUALITY REVIEW STANDARDS
History Note: Authority G.S. 55B‑12; 93‑12(8c);
93‑12(9);
Eff. April 1, 1991;
Repealed Eff. April 1, 1994.
21 NCAC 08G .0313 FIRM NAME
History Note: Filed as a Temporary Adoption Eff.
September 25, 1991 For a Period of 180 Days to Expire
on March 22, 1992;
Statutory Authority G.S. 55B‑5; 93‑12(9);
Temporary Adoption Expired Eff. March 22, 1992.
section .0400 - CPE REQUIREMENTS
21 NCAC 08G .0401 CPE REQUIREMENTS FOR CPAS
(a) In order for a CPA to receive CPE credit for a course:
(1) the CPA must attend or complete the course
and receive a certificate of completion as set forth in Rule .0403(c)(13) of
this Section;
(2) the course must meet the requirements set
out in Rule .0404(a) and (c) of this Section; and
(3) the course must increase the professional
competency of the CPA.
(b) A course that increases the professional competency of
a CPA is a course in an area of accounting in which the CPA practices or is
planning to practice in the future, or in the area of professional ethics, or
an area of the profession.
(c) Because of differences in the education and experience
of CPAs, a course may contribute to the professional competence of one CPA but
not another. Each CPA must therefore exercise judgment in selecting courses for
which CPE credit is claimed and choose only those that contribute to that CPA's
professional competence.
(d) Active CPAs must complete 40 CPE hours, computed in
accordance with Rule .0409 of this Section by December 31 of each year, except
as follows:
(1) CPAs having certificate applications
approved by the Board in April-June must complete 30 CPE hours during the same
calendar year;
(2) CPAs having certificate applications
approved by the Board in July-September must complete 20 CPE hours during the
same calendar year; or
(3) CPAs having certificate applications
approved by the Board in October-December must complete 10 CPE hours during the
same calendar year.
(e) There are no CPE requirements for inactive CPAs.
(f) Any CPE hours completed during the calendar year in
which the certificate is approved may be used for that year's requirement even
if the hours were completed before the certificate was granted. When a CPA has
completed more than the required number of hours of CPE in any one calendar
year, the extra hours, not in excess of 20 hours, may be carried forward and
treated as hours earned in the following year. Ethics CPE hours may not be
included in any carry forward hours. A CPA may not claim CPE credit for
courses taken in any year prior to the year of certification.
(g) Any CPE hours used to satisfy the requirements for
change of status as set forth in 21 NCAC 08J .0105, for reissuance as set forth
in 21 NCAC 08J .0106, or for application for a new certificate as set forth in
21 NCAC 08I .0104 may be used to satisfy the annual CPE requirement set forth
in Paragraph (d) of this Rule.
(h) It is the CPA's responsibility to maintain records
substantiating the CPE credits claimed for the current year and for each of the
four calendar years prior to the current year.
(i) A non-resident licensee may satisfy the annual CPE
requirements including 21 NCAC 08G .0401 in the jurisdiction in which he or she
is licensed and currently works or resides. If there is no annual CPE
requirement in the jurisdiction in which he or she is licensed and currently
works or resides, he or she must comply with Paragraph (d) of this Rule.
History Note: Authority G.S. 93-12(3); 93‑12(8b);
Eff. May 1, 1981;
Amended Eff. January 1, 2014; January 1, 2007; January 1,
2004; August 1, 1995; April 1, 1994; May 1, 1989; September 1, 1988.
21 NCAC 08G .0402 DEFINITIONS
History Note: Authority G.S. 93‑12(8b);
Eff. May 1, 1981;
Amended Eff. January 1, 1989; October 1, 1984;
Repealed Eff. May 1, 1989.
21 NCAC 08G .0403 QUALIFICATION OF CPE SPONSORS
(a) The Board shall not register either sponsors of CPE
courses or CPE courses.
(b) Sponsors of continuing education programs that are
listed in good standing on the NASBA National Registry of CPE Sponsors shall be
considered by the Board as compliant with the CPE requirements of Paragraph (c)
of this Rule.
(c) CPE providers not in good standing on the NASBA National
Registry of CPE Sponsors shall meet the following requirements:
(1) have an individual who did not prepare the
course review each course to be sure it meets the standards for CPE;
(2) state the following in every brochure or
other publication or announcement concerning a course:
(A) the general content of the course and the specific
knowledge or skill taught in the course;
(B) any prerequisites for the course and any advance
preparation required for the course and if none, that shall be stated;
(C) the level of the course, such as basic,
intermediate, or advanced;
(D) the teaching methods to be used in the course;
(E) the amount of sponsor recommended CPE credit a CPA
who takes the course may claim; and
(F) the date the course is offered, if the course is
offered only on a certain date, and, if applicable, the location;
(3) ensure that the instructors or presenters
of the course are qualified to teach the subject matter of the course and to
apply the instructional techniques used in the course;
(4) evaluate the performance of an instructor
or presenter of a course to determine whether the instructor or presenter is
suited to serve as an instructor or presenter in the future as follows:
(A) before the course's conclusion, provide for the
attendees an opportunity to evaluate the quality of the course by
questionnaires, oral feedback, or other means, in order to determine whether
the course's objectives have been met, its prerequisites were necessary or
desirable, the facilities used were satisfactory, and the course content was
appropriate for the level of the course; and
(B) systematically review the evaluation process to
ensure its effectiveness;
(5) encourage participation in a course only by
those who have the education and experience for the level of the course;
(6) distribute course materials to
participants;
(7) use physical facilities for conducting the
course that are consistent with the instructional techniques used;
(8) accurately assign the number of CPE credits
each participant may be eligible to receive by either:
(A) monitoring attendance at a group course; or
(B) testing in order to determine if the participant has
learned the material presented;
(9) inform instructors and presenters of the
results of the evaluation of their performance;
(10) retain for five years from the date of the
course presentation or completion:
(A) a record of participants completing course credit
requirements;
(B) an outline of the course (or equivalent);
(C) the date and location of presentation;
(D) the participant evaluations or summaries of
evaluations;
(E) the documentation of the instructor's
qualifications; and
(F) the number of contact hours recommended for each
participant;
(11) have a visible, continuous, and identifiable
contact person who is charged with the administration of the sponsor's CPE
programs and has the responsibility and is accountable for assuring and
demonstrating compliance with this Rule by the sponsor or by any other
organization working with the sponsor for the development, distribution or
presentation of CPE courses;
(12) develop and promulgate policies and
procedures for the management of grievances including tuition and fee refunds;
and
(13) provide persons completing course
requirements with written proof of completion indicating the participant's
name, the name of the course, the date the course was held or completed, the
sponsor's name and address, and the number of CPE hours calculated and
recommended in accordance with 21 NCAC 08G .0409.
(d) Failure of a National Registry of CPE Sponsor to comply
with the terms of this Rule shall be grounds for the Board to disqualify the
sponsor as a CPE sponsor with this Board and to notify NASBA and the public of
this action.
History Note: Authority G.S. 93-12(3); 93‑12(8b);
Eff. May 1, 1981;
Amended Eff. January 1, 2014; January 1, 2007; January 1,
2004; March 1, 1990; May 1, 1989; August 1, 1988; February 1, 1983.
21 NCAC 08G .0404 REQUIREMENTS FOR CPE CREDIT
(a) A CPA shall not be granted CPE credit for a course
unless the course:
(1) is in one of the seven fields of study
recognized by the Board and set forth in Paragraph (b) of this Rule;
(2) is developed by an individual who has
education and work experience in the subject matter of the course; and
(3) uses instructional techniques and materials
that are current and accurate.
(b) The seven fields of study recognized by the Board are:
(1) Accounting and Auditing
(A) Accountancy
(B) Accounting – Governmental
(C) Auditing
(D) Auditing – Governmental
(2) Consulting Services
(A) Administrative Practice
(B) Social Environment of Business
(3) Ethics
(A) Behavioral Ethics
(B) Regulatory Ethics
(4) Management
(A) Business Law
(B) Business Management and Organization
(C) Finance
(D) Management Advisory Services
(E) Marketing
(5) Personal Development
(A) Communications
(B) Personal Development
(C) Personnel/HR
(6) Special Knowledge and Applications
(A) Computer Science
(B) Economics
(C) Mathematics
(D) Production
(E) Specialized Knowledge and Applications
(F) Statistics
(7) Tax
(c) The following may qualify as acceptable types of
continuing education programs, provided the programs comply with the
requirements set forth in Paragraph (a) of this Rule:
(1) professional development programs of
national and state accounting organizations;
(2) technical sessions at meetings of national
and state accounting organizations and their chapters;
(3) courses taken at regionally accredited
colleges and universities;
(4) educational programs that are designed and
intended for continuing professional education activity conducted within an
association of accounting firms; and
(5) correspondence courses that are designed
and intended for continuing professional education activity.
(d) CPE credit may be granted for teaching a CPE course or
authoring a publication as long as the preparation to teach or write increased
the CPA's professional competency and was in one of the seven fields of study
recognized by the Board and set forth in Paragraph (b) of this Rule.
(e) CPE credit shall not be granted for a self-study course
if the material that the CPA must study to take the examination is not designed
for CPE purposes. This includes periodicals, guides, magazines, subscription
services, books, reference manuals and supplements which contain an examination
to test the comprehension of the material read.
(f) A CPA may claim credit for a course offered by a
non–registered sponsor provided that the course meets the requirements of 21
NCAC 08G .0403(c), 21 NCAC 08G .0404, and 21 NCAC 08G .0409. The CPA shall
maintain documentation proving that the course met these standards.
History Note: Authority G.S. 93‑12(8b);
Eff. May 1, 1981;
Amended Eff. January 1, 2007; January 1, 2004; August 1,
1998; February 1, 1996; March 1, 1990; May 1, 1989; August 1, 1988; February 1,
1983.
21 NCAC 08G .0405 ADMINISTRATION OF REQUIREMENT
Forms for reporting CPE hours will be furnished by the
Board. The Board may audit on a test basis information submitted by licensees
who may apply for a renewal license.
History Note: Authority G.S. 93-12(8b);
Eff. May 1, 1981;
Amended Eff. October 1, 1984; January 1, 1982;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 28, 2014.
21 NCAC 08G .0406 COMPLIANCE WITH CPE REQUIREMENTS
(a) All active CPAs shall file with the Board a completed
CPE reporting form by the July 1 renewal date of each year.
(b) If a CPA fails to complete the CPE requirements prior
to the end of the previous calendar year but the CPA has completed them by June
30, the Board may:
(1) issue a letter of warning for the first
such failure within a five calendar year period; and
(2) deny the renewal of the CPA's certificate
for a period of not less than 30 days and until the CPA meets the reinstatement
requirements set forth in 21 NCAC 08J .0106 for the second such failure within
a five calendar year period.
History Note: Authority G.S. 93‑12(8b); 93‑12(9)(e);
Eff. May 1, 1981;
Amended Eff. January 1, 2007; January 1, 2004; April 1,
1994; March 1, 1990; May 1, 1989; October 1, 1988.
21 NCAC 08G .0407 EXEMPTION AND SUBSEQUENT REINSTATEMENT
History Note: Authority G.S. 93‑12(8b);
Eff. May 1, 1981;
Amended Eff. September 1, 1988; April 1, 1987; October 1,
1984; August 1, 1984;
Repealed Eff. May 1, 1989.
21 NCAC 08G .0408 REQUIRED COURSES ON ACCOUNTANCY LAWS
AND RULES
History Note: Authority G.S. 93‑12(8b);
Eff. April 1, 1987;
Repealed Eff. April 1, 1988.
21 NCAC 08G .0409 COMPUTATION OF CPE CREDITS
(a) Group Courses: Non-College. CPE credit for a group
course that is not part of a college curriculum shall be given based on contact
hours. A contact hour shall be 50 minutes of instruction and one-half contact
hour shall be equal to 25 minutes of instruction. For example, a group course
lasting 100 minutes shall be two contact hours equaling two CPE credits. A
group course lasting 75 minutes shall be one and one-half contact hours
equaling one and one-half CPE credits. A group course lasting 25 minutes shall
be one-half contact hour and equal to one-half CPE credit. When individual
segments of a group course are less than 50 minutes, the sum of the individual
segments shall be added to determine the number of contact hours. For example,
five 30-minute presentations shall be 150 minutes, which shall be three contact
hours and three CPE credits. No credit shall be allowed for a segment unless
the participant completes the entire segment. Internet based programs shall
employ a monitoring mechanism to verify that participants are participating
during the duration of the course. No credit shall be allowed for a group
course having fewer than 25 minutes of course instruction.
(b) Completing a College Course. CPE credit for completing
a college course in the college curriculum shall be granted based on the number
of credit hours the college gives the CPA for completing the course. One
semester hour of college credit shall be 15 CPE credits; one quarter hour of
college credit shall be 10 CPE credits; and one continuing education unit shall
be 10 CPE credits. No CPE credit shall be given to a CPA who audits a college
course.
(c) Self Study. CPE credit for a self-study course shall be
given based on the average number of contact hours needed to complete the
course. The average completion time shall be allowed for CPE credit. A sponsor shall
determine on the basis of pre-tests or NASBA word count formula the average
number of contact hours of course material it takes to complete a course. A
contact hour shall be 50 minutes and one-half contact hour shall be 25 minutes
of course material. No self-study course may contain less than 25 minutes of
course material.
(d) Instructing a CPE Course. CPE credit for teaching or
presenting a CPE course for CPAs shall be given based on the number of contact
hours spent in preparing and presenting the course. No more than 50 percent of
the CPE credits required for a year shall be credits for preparing for and
presenting CPE courses. CPE credit for preparing or presenting a course shall
be allowed only once a year for a course presented more than once in the same
year by the same CPA.
(e) Authoring a Publication. CPE credit for published
articles and books shall be given based on the number of contact hours the CPA
spent writing the article or book. No more than 25 percent of a CPA's required
CPE credits for a year shall be credits for published articles or books. An
article written for a CPA's client or business newsletter shall not receive CPE
credit.
(f) Instructing a Graduate Level College Course. CPE credit
for instructing a graduate level college course shall be given based on the
number of credit hours the college gives a student for completing the course,
using the calculation set forth in Paragraph (b) of this Rule. Credit shall not
be given for instructing a course in which there is credit given towards an
undergraduate degree.
(g) No more than 50 percent of the CPE credits required for
a year shall be credits claimed under Paragraph (d) and (f) of this Rule.
History Note: Authority G.S. 93‑12(8b);
Eff. May 1, 1989;
Amended Eff. July 1, 2015; January 1, 2014; February 1,
2012; January 1, 2007; January 1, 2004; February 1, 1996; April 1, 1994; March
1, 1990.
21 NCAC 08G .0410 PROFESSIONAL ETHICS AND CONDUCT CPE
(a) As part of the annual CPE requirement, all active CPAs
shall complete CPE on professional ethics and conduct. They shall complete two
contact hours in either a group study format or in a self-study format of a
course on regulatory or behavioral professional ethics and conduct. This CPE
shall be offered by a CPE sponsor registered with NASBA pursuant to Rule .0403(b)
of this Section.
(b) A non-resident licensee whose primary office is in
North Carolina must comply with Paragraph (a) of this Rule. All other
non-resident licensees may satisfy Paragraph (a) of this Rule by completing the
ethics requirements in the jurisdiction in which he or she is licensed as a CPA
and works or resides. If there is no ethics CPE requirement in the
jurisdiction where he or she is licensed and currently works or resides, he or
she must comply with Paragraph (a) of this Rule.
History Note: Authority G.S. 93-12(3); 93-12(8b);
93-12(9);
Eff. January 1, 2005;
Amended Eff. January 1, 2014; February 1, 2012; January
1, 2007; January 1, 2006.
