New Jersey Statewide Navigation Bar
NJ Office of the Attorney General
Division of Consumer Affairs

NEW JERSEY REGISTER
VOLUME 36, NUMBER 15
MONDAY, AUGUST 2, 2004
RULE PROPOSAL

LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
NEW JERSEY STATE BOARD OF ACCOUNTANCY
GENERAL RULES; EXAMINATION AND LICENSURE; REGISTERED MUNICIPAL ACCOUNTANTS

Proposed New Rules: N.J.A.C. 13:29-1A.1, 1A.2, 1A.4, 1A.5 and 1A.7

Proposed Amendment: N.J.A.C. 13:29-2.3

Proposed Recodification with Amendments: N.J.A.C. 13:29-1.6 as 1A.3, 1.7 as 1A.6, 1.8 as 1A.8, 1.11 as 1A.10, and 1.12 as 1A.9

Proposed Repeals: N.J.A.C. 13:29-1.3 and 1.10

Authorized By: New Jersey State Board of Accountancy, William Mandeville, Executive Director.

Authority: N.J.S.A. 45:2B-48 and 45:1-15.1.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
Proposal Number: PRN 2004-290.

Submit comments by October 1, 2004 to:

William Mandeville, Executive Director

New Jersey State Board of Accountancy

124 Halsey Street

PO Box 45000

Newark, New Jersey 07101

The agency proposal follows:

Summary

Pursuant to the general rulemaking authority set forth at N.J.S.A. 45:2B-48(b) and 45:1-15.1, the New Jersey State Board of Accountancy (the Board) is proposing amendments to the rules set forth in Subchapter 1 of N.J.A.C. 13:29, concerning examination for licensure. Pursuant to existing rule N.J.A.C. 13:29- 1.10, applicants for licensure by the Board must pass the Uniform Certified Public Accountant Examination (the examination), prepared by the Board of Examiners of the American Institute of Certified Public Accountants (the AICPA). The examination has traditionally been given in a paper and pencil format twice a year. After the November 2003 examination, however, the examination will no longer be offered in a paper and pencil format. Rather, beginning in April 2004, the examination will only be available as a computer- based test. The computer-based examination will be given during four testing "windows" per year. A "window" refers to a three-month period in which applicants will have an opportunity to take the examination. Each testing window will include two months in which the examination is available to be taken, and one month in which the examination will not be available while routine maintenance of the examination is performed. Therefore, under the new examination structure, applicants will be able to test two out of three months within an examination window. The AICPA has determined that the move to a computer-based test is necessary in order to provide greater flexibility and convenience to applicants, and to provide greater examination security.

In light of the transition to a computer-based examination, the Board has reviewed its existing rules and has determined that various amendments to the rules are necessary in order to ensure consistency with the new standards endorsed by the AICPA and adopted by other states. Initially, the Board notes that it is proposing that all rules concerning examination and licensure be codified in a new Subchapter 1A in order to make the requirements easier to find and follow. As a result, existing examination and licensure rules contained in Subchapter 1 will be recodified in Subchapter 1A. The rules that will remain in Subchapter 1 will be rules of general applicability, as the heading of the subchapter connotes. The proposed amendments and new rules contained in Subchapters 1 and 1A are summarized below.

The Board is proposing that existing rule N.J.A.C. 13:29-1.3, concerning applications for examination, be repealed because the requirements concern the paper and pencil examination and are, therefore, no longer applicable. The Board is proposing a new rule, N.J.A.C. 13:29-1A.1, which establishes requirements for application procedures under the new computer-based examination. Subsection (a) of new rule N.J.A.C. 13:29-1A.1 provides that an applicant for licensure must pass the computer-based examination, prepared by the AICPA. Subsection (b) provides that an application to take the examination will not be considered filed until the applicant submits an application fee and an examination fee, and the applicant satisfies the education requirements set forth in the subchapter. Subsection (c) provides that an applicant shall, upon request, appear before the Board for the purpose of determining whether the applicant satisfies the educational requirements imposed by the rules. Subsection (d) provides that an applicant who fails to appear for the examination shall forfeit the application and examination fees remitted. Upon a demonstration of good cause, however, an applicant may have the remitted examination fee applied to a future examination. Subsection (e) provides that the Board shall forward notification of an applicant's eligibility to take the examination to the National Association of State Boards of Accountancy (NASBA) National Candidate Database. The database is being developed by NASBA as a tool to further its goal of compiling jurisdictional and national statistical information on examination performance. Subsection (f) provides that eligible applicants shall be notified of the time and place of the examination by the Board or its designee.

The Board notes that the time frame for passage of the examination established in current N.J.A.C. 13:29-1.3(e), which is being repealed, is no longer necessary because new requirements concerning the time allotted for passage of the examination are proposed in new rule N.J.A.C. 13:29-1A.5.

Existing rule N.J.A.C. 13:29-1.10, concerning the paper and pencil examination, is also proposed to be repealed because it is no longer applicable in light of the transition to the computer-based examination. The Board notes that requirements contained in N.J.A.C. 13:29-1.10(d), concerning the granting of conditional credit to out-of-State examination takers, have been incorporated into new rules on conditional credit proposed at N.J.A.C. 13:29- 1A.4 and 1A.5. The Board is proposing a new rule at N.J.A.C. 13:29-1A.2, which sets forth the requirements for taking the computer-based examination. Subsection (a) provides that upon approval of an examination application, an examination admission card will be sent to the applicant. The card must be kept in the applicant's possession during the examination and must be handed to the proctor at the conclusion of the examination. Subsection (b) provides that applicants for the examination shall be given a number for identification purposes which shall be used for testing purposes, and subsection (c) provides that the advisory grading service provided by the AICPA will be utilized in grading the examination, and that the minimum passing grade is 75 in each test section. Subsection (d) provides that all applicants must pass all four examination sections. The subsection further provides that the Board will report official examination results to the applicant after the Board receives the grades from the examination provider.

Existing rule N.J.A.C. 13:29-1.6, which sets forth application requirements for the examination, as well as education and experience requirements for applicants, is proposed to be recodified as new rule N.J.A.C. 13:29-1A.3, with technical amendments. The Board notes that it recently adopted amendments to N.J.A.C. 13:29-1.6(c), which appeared in the New Jersey Register on July 19, 2004 at 36 N.J.R. 3399(b). The Board is not proposing any further changes to the requirements of subsection (c) as part of this rulemaking.

The Board is proposing new rule N.J.A.C. 13:29-1A.4 to establish requirements for the granting of conditional credit under the new computer-based examination. N.J.A.C. 13:29-1A.4 will only apply to the granting of conditional credit on the computer-based examination. Applicants who have already obtained conditional credit under the paper and pencil examination will have to comply with proposed new rule N.J.A.C. 13:29-1A.5, which establishes requirements for the transition of conditional credits earned during or before the last paper and pencil examination in November 2003.

N.J.A.C. 13:29-1A.4(a) provides that an applicant may take the four test sections of the examination individually or in any order. Credit for any test section passed will be valid for 18 months from the actual date that the applicant took the test section, without having to obtain a minimum score on any failed test section and without regard to whether the applicant has taken other test sections. Subsection (b) requires that all four of the examination sections be passed within a rolling 18-month period. The rolling 18-month period begins on the date that the first section passed within the 18-month window is taken. If an applicant does not pass all four test sections of the examination within the rolling 18-month period, credit for any test section passed outside of the new 18-month period will expire, pursuant to subsection (c). For example, if an applicant takes the first test section of the examination on June 1, 2004 and passes, the applicant shall have 18 months from that date to take and pass the remaining test sections. This initial 18-month period, therefore, shall expire on November 30, 2005. If the applicant takes the second test section on January 1, 2005 and passes, a new 18-month period will commence, which will expire on June 30, 2006. The applicant, however, may not need to avail himself or herself of this new 18-month period if he or she, in fact, passes the remaining two test sections within the initial 18-month period, that is, by November 30, 2005. If the applicant fails to pass the two remaining test sections by November 30, 2005, the first test section passed on June 1, 2004 will expire and must be retaken. The new 18-month period that commenced with the passage of the test section on January 1, 2005 will then become operative. The applicant must take and pass the two remaining test sections and the expired test section by the end of this new 18-month period, that is, by June 30, 2006. A new 18-month period will be created upon the passage of each test section, and will become operative upon the expiration of the prior 18-month period if the applicant has not passed all remaining test sections. An applicant will pass the examination only when he or she holds valid credit for all four test sections within a single, operative 18-month period.

Pursuant to subsection (d) of N.J.A.C. 13:29-1A.4, an applicant cannot retake a failed test section in the same three-month examination window. Any section of the examination for which conditional credit has expired must be retaken. Under subsection (e), an applicant will retain credit for any examination section passed in another state if the credit would have been given, under then applicable requirements, in New Jersey. Subsection (f) authorizes the Board to extend the term of conditional credit validity provided for in the rule in cases of substantial hardship. Subsection (g) clarifies that credit for passing a test section will be valid from the actual date of the test section, regardless of the date the applicant receives notification of the passing grade.

Proposed new rule N.J.A.C. 13:29-1A.4 represents a significant change in the Board's current requirements for obtaining conditional credit. Under existing rule N.J.A.C. 13:29-1.7, applicants must take all four test sections the first time they sit for the examination. Conditional credit would only be granted under N.J.A.C. 13:29-1.7 if the applicant obtained a 75 in at least two sections, and no less than an average of 50 on the sections not passed. Conditional credit earned under the Board's existing rule would expire if the applicant failed to pass all four test sections during the 10 examinations (or five years) following the first examination in which conditional credit was obtained. With the implementation of the computer-based examination, the AICPA has recommended that states move away from this rigid approach to granting conditional credit. Allowing applicants to sit for any section of the examination, in any order, and providing the rolling 18-month conditioning period will be more convenient for applicants and will also help to ensure that the applicant's knowledge in the test section is current. The Board concurs in the AICPA's recommendation and believes that adopting the rolling 18-month period as the benchmark for the granting of conditional credit is reasonable in light of the multiple testing opportunities now available to applicants throughout the year.

As noted above, proposed new rule N.J.A.C. 13:29-1A.5 establishes requirements for applicants who obtained conditional credit during or before the last paper and pencil examination in November 2003. Subsection (a) provides that applicants who obtained conditional credit in any of the test sections under the paper and pencil examination would retain conditional credit for the corresponding new test section under the computer-based test, consistent with the time frame established in subsection (b). Subsection (b) provides, based on AICPA recommendations, that applicants who have earned conditional credit under the paper and pencil examination will be provided with a transition period in which to complete all remaining test sections of the examination. The transition period will be the maximum number of opportunities that an applicant who has obtained conditional credit under the paper and pencil examination would have had remaining after the November 2003 examination under existing Board rule N.J.A.C. 13:29-1.7 (proposed to be recodified as part of this rulemaking as N.J.A.C. 13:29-1A.6) to pass all remaining test sections, or a time period equal to the number of remaining opportunities under the paper and pencil examination under the existing rule multiplied by six months, whichever is first exhausted. The Board notes that existing rule N.J.A.C. 13:29-1.7 caps the number of examinations an applicant can take before losing conditional credit at 10. It is possible, therefore, that at the launch of the computer- based examination in April 2004, applicants may be holding conditional credit earned as early as May 1999, or as late as November 2003. Therefore, the transition period for completing the examination will vary depending on what date the applicant first received conditional credit. The Board notes that the shortest transition period (for applicants who obtained conditional credit during the May 1999 examination) is six months (expiring on October 31, 2004), and the longest transition period (for applicants who obtained conditional credit in November 2003) will be 60 months (expiring on April 30, 2009). The specific transition periods are set forth in paragraphs (b)1 through 10.

Subsection (c) of N.J.A.C. 13:29-1A.5 provides that if an applicant with conditional credit from the paper and pencil examination does not pass all remaining sections of the test during the transition period, the conditional credits earned during the paper and pencil examination will expire. Pursuant to subsection (d), an applicant who has conditional credit earned during the paper and pencil examination will be allowed to retain credit for any computer-based test selection passed during the transition period consistent with the rolling 18-month conditioning requirements set forth in proposed new rule N.J.A.C. 13:29-1A.4. Notwithstanding the 18-month conditioning window, such applicants will be allowed to retain conditional credit earned under the computer-based examination until the end of their individual transition periods.

Existing rule N.J.A.C. 13:29-1.7, as noted above, is proposed to be recodified as new rule N.J.A.C. 13:29-1A.6, with amendments. The Board is amending the heading of the section and subsection (a) to clarify that the rule concerns the calculation of conditional credit earned on the paper and pencil examination in or before November 2003. Subsection (a) is also being amended to provide that conditional credit earned after the November 2003 examination will be subject to the requirements of proposed new rule N.J.A.C. 13:29-1A.5. The Board is proposing a new subsection (c) to provide that the rule shall expire on April 30, 2009, which coincides with the end of the longest transition period provided for in proposed new rule N.J.A.C. 13:29-1A.5.

The Board is proposing a new rule at N.J.A.C. 13:29-1A.7, concerning examination security and cheating. Subsection (a) provides that the Board may postpone scheduled examinations, the release of grades, or the issuance of licenses due to a breach of examination security, which includes the unauthorized acquisition or disclosure of the contents of an examination. Subsection (b) provides that cheating by an applicant in applying for, taking, or subsequent to the examination will invalidate any grade earned by the applicant on any test section of the examination. Cheating may also warrant summary expulsion from the test site and the applicant's disqualification from taking the examination for a specified period of time. Subsection (c) delineates actions or attempted activities which may be considered cheating, and includes falsifying or misrepresenting educational credentials or other information required for admission to the examination; communication between applicants while the examination is in progress both inside or outside the test site or copying another applicant's answers; communication with others inside or outside the test site while the examination is in progress; substitution of another person to sit in the test site in place of the actual applicant; violating the nondisclosure prohibitions of the examination; or retaking or attempting to retake a test section by an individual holding a valid license or by an applicant who has unexpired conditional credit for that section. Subsection (d) provides that in cases where it appears that cheating has occurred or is occurring, the applicant may be summarily expelled from the examination or moved to a position in the test site away from other examinees where the applicant may be monitored.

Existing rules N.J.A.C. 13:29-1.4, concerning a licensee's obligation to notify the Board of a change of address, and N.J.A.C. 13:29-1.5, concerning an applicant's obligation to conform to the requirements of the chapter, are proposed to be recodified as N.J.A.C. 13:29-1.3 and 1.4, respectively, without change. Existing rule N.J.A.C. 13:29-1.8, concerning applications for a license by endorsement, N.J.A.C. 13:29-1.12, concerning a public school accountant's license, and N.J.A.C. 13:29-1.11, concerning license renewal, are proposed to be recodified at N.J.A.C. 13:29-1A.8, 1A.9, and 1A.10, respectively, with technical amendments based on the recodifications being proposed as part of this rulemaking. The Board is also making similar technical amendments at N.J.A.C. 13:29-2.3, which concerns license renewals for registered municipal accountants, and is proposing that N.J.A.C. 13:29-1.9, which is currently reserved, be deleted.

The Board has determined that the comment period for this proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this proposal is excepted from the rulemaking calendar requirement.

Social Impact

The Board believes that the proposed amendments, repeals and new rules will have a positive impact upon applicants for the Uniform CPA examination. The transition to the computer-based examination pursuant to proposed new rule N.J.A.C. 13:29-1A.1, and the establishment of standards for obtaining conditional credit pursuant to proposed new rule N.J.A.C. 13:29-1A.4, will provide applicants with greater flexibility in taking the examination. The transition to a computer-based examination will also provide greater consistency in the evaluation of examinations and will provide added security during examination administrations, both of which will help to ensure that only the qualified applicants pass the examination and, therefore, qualify for licensure. The Board also believes that proposed new rule N.J.A.C. 13:29-1A.5, which will implement a transition period for applicants who have passed part of the examination under the paper and pencil requirements as of the launch of the computer-based examination, will benefit such applicants by ensuring that they are not unfairly disadvantaged by the change in examination format.

Economic Impact

The Board does not believe that the proposed amendments, repeals and new rules will have an economic impact upon applicants for examination. Although the transition to a computer-based examination and the new requirements for obtaining conditional credit will allow applicants greater flexibility in taking the examination, applicants will still be required to pass all four parts of the examination in order to qualify for licensure. The Board is not proposing any changes to its current fee of $75.00, set forth at N.J.A.C. 13:29-1.13(a)1, for a license application, as part of this rulemaking, nor does the Board believe that the examination fee, which is established by the Board of Examiners of the American Institute of Certified Public Accountants, the National Association of State Boards of Accountancy and the examination provider, will be increased or decreased as a result of the transition to the computer-based examination. Therefore, the Board believes that applicants will not be economically advantaged or disadvantaged by the proposed changes to the examination requirements.

Federal Standards Statement

A Federal standards analysis is not required because the proposed amendments and new rules are governed by N.J.S.A. 45:2B-42 et seq., and are not subject to any Federal standards or requirements.

Jobs Impact

The Board does not believe that the proposed amendments, repeals and new rules will result in the creation or the loss of jobs in the State. Although the rules for taking the licensure examination are being amended, the existing requirements for obtaining an accountancy license in the State remain unchanged by the proposed amendments, repeals and new rules.

Agriculture Industry Impact

The Board does not believe that the proposed amendments, repeals and new rules will have any impact on the agriculture industry of the State.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act (the Act), N.J.S.A. 52:14B-16 et seq., requires the Board to provide a description of the types and an estimate of the number of small businesses to which the proposed amendments and new rules will apply. Currently, the Board licenses approximately 19,637 accountants. If Board licensees are considered "small businesses" within the meaning of the Act, then the following analysis applies.

The Act requires the Board to set forth the reporting, recordkeeping and other compliance requirements of the proposed amendments and new rules, including the kinds of professional services likely to be needed to comply with the requirements. The Act further requires the Board to estimate the initial and annual compliance costs of the proposed amendments and new rules, to outline the manner in which it has designed the proposed amendments and new rules to minimize any adverse economic impact upon small businesses, and to set forth whether the proposed amendments and new rules establish differing compliance requirements for small businesses.

The proposed amendments and new rules do not impose any reporting, recordkeeping or compliance requirements upon Board licensees. The proposed amendments and new rules do, however, impose various compliance requirements upon applicants for examination and licensure by the Board, which are discussed in the Summary statement above.

No additional professional services will be needed to comply with the proposed amendments and new rules nor, as discussed in the Economic Impact statement above, will the proposed amendments and new rules impose any additional economic costs upon applicants for examination and licensure. The Board is proposing the amendments and new rules in order to ensure that its rules concerning the licensure examination are consistent with the new procedures established by the AICPA for examination and, therefore, the Board believes that the proposed amendments and new rules should be uniformly applied to all applicants for examination. As a result, no differing compliance requirements for any applicants for examination are provided.

Smart Growth Impact

The Board does not believe that the proposed amendments, repeals and new rules will have any impact upon the achievement of smart growth or upon the implementation of the State Development and Redevelopment Plan.

Full text of the proposed repeals may be found in the New Jersey Administrative Code at N.J.A.C. 13:29-1.3 and 1.10.

Full text of the proposed amendments and new rules follows :

Recodification Table

Existing Rules Proposed Recodification
N.J.A.C. 13:29-1.4 N.J.A.C. 13:29-1.3
N.J.A.C. 13:29-1.5 N.J.A.C. 13:29-1.4
N.J.A.C. 13:29-1.6 N.J.A.C. 13:29-1A.3
N.J.A.C. 13:29-1.7 N.J.A.C. 13:29-1A.6
N.J.A.C. 13:29-1.8 N.J.A.C. 13:29-1A.8
N.J.A.C. 13:29-1.11 N.J.A.C. 13:29-1A.10
N.J.A.C. 13:29-1.12 N.J.A.C. 13:29-1A.9
N.J.A.C. 13:29-1.13 N.J.A.C. 13:29-1.5
N.J.A.C. 13:29-1.14 N.J.A.C. 13:29-1.6

Proposed Repeals
N.J.A.C. 13:29-1.3
N.J.A.C. 13:29-1.10
Proposed New Rules
N.J.A.C. 13:29-1A.1
N.J.A.C. 13:29-1A.2
N.J.A.C. 13:29-1A.4
N.J.A.C. 13:29-1A.5
N.J.A.C. 13:29-1A.7

<< NJ ADC 13:29-1.3 >>

<< NJ ADC 13:29-1.4 >>

<< NJ ADC 13:29-1.5 >>

Recodify existing 13:29-1.4 and 1.5 as <<+1.3 and 1.4+>> (No change in text.)

(Agency Note: N.J.A.C. 13:29-1.6, 1.7 and 1.8 are proposed for recodification with amendments as N.J.A.C. 13:29-1A.3, 1A.6 and 1A.8, respectively.)

<< NJ ADC 13:29-1.9 >>

<<-13:29-1.9 (Reserved)->>

(Agency Note: N.J.A.C. 13:29-1.11 and 1.12 are proposed for recodification with amendments as N.J.A.C. 13:29-1A.10 and 1A.9, respectively.)

<< NJ ADC 13:29-1.5 >>

<< NJ ADC 13:29-1.6 >>

<< NJ ADC 13:29-1.13 >>

<< NJ ADC 13:29-1.14 >>

Recodify existing 13:29-1.13 and 1.14 as <<+1.5 and 1.6+>> (No change in text.)

<<+SUBCHAPTER 1A. EXAMINATION AND LICENSURE+>>

<< NJ ADC 13:29-1A.1 >>

<<+13:29-1A.1 Applications for examination; applicant qualifications+>>

<<+(a) An applicant for licensure as a certified public accountant shall pass the computer-based Certified Public Accountant Examination, prepared by the Board of Examiners of the American Institute of Certified Public Accountants. Applications to take the Certified Public Accountant Examination shall be made on a form provided by the Board and shall be filed with the Board by the due date specified by the Board in the application form.+>>

<<+(b) An application to take the Certified Public Accountant Examination shall not be considered filed until the applicant remits the application fee set forth in N.J.A.C. 13:29-1.5 and the examination fee set forth in the application, and the applicant has satisfied the requirements set forth in N.J.A.C. 13:29-1A.3.+>>

<<+(c) Applicants shall appear upon request before the Board or any Committee appointed by the Board for the purpose of determining whether the applicant satisfies the requirements set forth at N.J.A.C. 13:29-1A.3.+>>

<<+(d) An applicant who fails to appear for the Certified Public Accountant Examination shall forfeit all fees remitted for the application. An applicant who fails to appear shall also forfeit all fees remitted for the examination unless the applicant can demonstrate good cause for the failure to appear. Upon a demonstration of good cause, the examination fees may be applied to a future examination.+>>

<<+(e) The Board or its designee shall forward notification of an applicant's eligibility to take the Certified Public Accountant Examination to the National Association of State Boards of Accountancy (NASBA) National Candidate Dat

abase.+>> <<+(f) Eligible applicants shall be notified at the time and place of the Certified Public Accountant Examination by the Board or its designee.+>>

<< NJ ADC 13:29-1A.2 >>

<<+13:29-1A.2 Examination+>>

<<+(a) Upon approval of an examination application submitted pursuant to N.J.A.C. 13:29-1A.1, an admission card shall be sent to the applicant which shall be used for admittance to the examination room. The card shall be kept in the possession of the applicant during the Certified Public Accountant Examination and handed to a proctor at the conclusion of the applicant's examination.+>>

<<+(b) Applicants for the Certified Public Accountant Examination shall be given a number for identification purposes and only this number shall be used for testing purposes.+>>

<<+(c) The advisory grading service provided by the American Institute of Certified Public Accountants shall be utilized and, to pass the examination, an applicant shall receive a minimum grade of 75 in each test section.+>>

<<+(d) An applicant shall pass all four test sections of the Certified Public Accountant Examination. Upon receipt of advisory grades from the examination provider, the Board shall review and accept the examination grades and shall report the official results to the applicant.+>>

<< NJ ADC 13:29-1.6 >>

<< NJ ADC 13:29-1A.3 >>

13:29-<<-1.6->><<+1A.3+>> Applications for <<-original->> examination; education and experience requirements

(a) Applications <<-for original examination->> <<+to take the Certified Public Accountant Examination+>> shall be accompanied by the following items:

1.-2. (No change.)

(b) Except as provided in (c) below, an applicant <<-for original examination->> <<+to take the Certified Public Accountant Examination+>> shall satisfy the following educational requirements in order to qualify for licensure:

1. (No change.)

2. After July 1, 2000, an applicant <<-for original examination->> <<+ to take the Certified Public Accountant Examination+>> shall have completed at least 150 hours of education, including a baccalaureate or higher degree<<-, subject to the provisions of N.J.A.C. 13:29-1.3(e)->>. An applicant shall be deemed to have satisfied the educational requirement if, as part of the 150 semester hours of education, the applicant has satisfied any one of the following four conditions:

i.-iv. (No change.)

(c) (No change.)

(d) An applicant for <<-examination for the->> <<+a+>> Certified Public Accountant's license who meets the requirements of (b) or (c) above to the Board's satisfaction shall be granted admission to sit for the <<- Uniform->> Certified Public Accountant Examination.

(e) An applicant who has passed all parts of the <<-Uniform->> Certified Public Accountant Examination shall furnish evidence of one year of intensive and diversified experience in the practice of public accounting or its equivalent under the supervision of a Board licensee. Experience shall be obtained in full-time regular employment based on a minimum of 35 hours per week. Part time experience shall be considered equivalent if acquired within two consecutive years and in no less than the same amount of hours required for full time experience. Experience shall be considered intensive and diversified if experience is acquired in the areas of auditing or accounting. Such evidence shall take the form of a notarized affidavit on the employer's letterhead indicating in detail the nature of the intensive and diversified experience in auditing or accounting.

(f)-(h) (No change.)

<< NJ ADC 13:29-1A.4 >>

<<+13:29-1A.4 Granting of examination credit; reexamination; conditional credit+>>

<<+(a) An applicant may take the required test sections of the Certified Public Accountant Examination individually and in any order. Credit for any test section(s) passed shall be valid for 18 months from the actual date the applicant took that test section, without having to attain a minimum score on any failed test section(s) and without regard to whether the applicant has taken other test sections.+>>

<<+(b) The applicant shall take and pass all four test sections of the Certified Public Accountant Examination within a rolling 18-month period, which begins on the date that the first test section(s) passed within such rolling 18-month period is taken.+>>

<<+(c) In the event that the applicant does not take and pass all four test sections of the Certified Public Accountant Examination within the rolling 18- month period, credit for any test section(s) passed outside the new 18-month period, which shall commence pursuant to (b) above, shall expire and that test section(s) shall be retaken.+>>

<<+(d) Applicants shall not retake a failed test section(s) in the same examination window. For purposes of this section, "examination window" means a three-month calendar quarter during which applicants have an opportunity to take the Certified Public Accountant Examination (comprised of the first two months of such quarter during which the examination is available to be taken and the final month of such quarter during which the examination will not be offered while routine maintenance is performed and the item bank is refreshed).+>>

<<+(e) An applicant shall retain credit for any and all test sections of an examination passed in another state if such credit would have been given, under then applicable requirements, if the applicant had taken the examination in this State.+>>

<<+(f) The Board may, in particular cases, extend the term of conditional credit validity notwithstanding the requirements of provisions in (a) through (d) above, upon a showing that the credit was lost by reason of circumstances beyond the applicant's control or in cases of substantial hardship presented by the applicant to the Board.+>>

<<+(g) An applicant shall be deemed to have passed the Certified Public Accountant Examination once the applicant holds at the same time valid credit for passing each of the four test sections of the examination. For purposes of this section, credit for passing a test section of the examination shall be valid from the actual date of the testing event for that test section, regardless of the date the applicant actually receives notice of the passing grade.+>>

<< NJ ADC 13:29-1A.5 >>

<<+13:29-1A.5 Transition period for conditional credit earned in or before November 2003+>>

<<+(a) Applicants having earned conditional credit on the paper-and-pencil Certified Public Accountant Examination in or before November 2003, consistent with N.J.A.C. 13:29-1A.6, shall retain conditional credit for the corresponding test sections of the computer-based Certified Public Accountant Examination, consistent with (b) below, as follows:+>>

Paper-and-Pencil Examination
Computer-Based Examination
Auditing
Auditing and Attestation
Financial Accounting and Reporting (FARE)
Financial Accounting and Reporting
Accounting and Reporting (ARE)
Regulation
Business Law and Professional Responsibilities (LPR)
Business Environment and Concepts

<<+(b) Applicants who have attained conditional status in or before November 2003 shall be allowed a transition period to complete any remaining test sections of the Certified Public Accountant Examination. The transition period shall be the maximum number of opportunities that applicants who have obtained conditional credit under the paper-and-pencil examination have remaining after the November 2003 examination, consistent with N.J.A.C. 13:29-1A.6, to complete all remaining test sections, or a time period equal to the number of remaining opportunities under the paper-and-pencil examination multiplied by six months (which time period shall commence on the start date of the computer-based examination), whichever is first exhausted, as follows:+>>

<<+1. If conditional status was earned during the May 1999 examination, the transition period shall expire on October 31, 2004 during which time the applicant shall have one opportunity to take the examination;+>>

<<+2. If conditional status was earned during the November 1999 examination, the transition period shall expire on April 30, 2005 during which time the applicant shall have two opportunities to take the examination;+>>

<<+3. If conditional status was earned during the May 2000 examination, the transition period shall expire on October 31, 2005 during which time the applicant shall have three opportunities to take the examination;+>>

<<+4. If conditional status was earned during the November 2000 examination, the transition period shall expire on April 30, 2006 during which time the applicant shall have four opportunities to take the examination;+>>

<<+5. If conditional status was earned during the May 2001 examination, the transition period shall expire on October 31, 2006 during which time the applicant shall have five opportunities to take the examination;+>>

<<+6. If conditional status was earned during the November 2001 examination, the transition period shall expire on April 30, 2007 during which time the applicant shall have six opportunities to take the examination;+>>

<<+7. If conditional status was earned during the May 2002 examination, the transition period shall expire on October 31, 2007 during which time the applicant shall have seven opportunities to take the examination;+>>

<<+8. If conditional status was earned during the November 2002 examination, the transition period shall expire on April 30, 2008 during which time the applicant shall have eight opportunities to take the examination;+>>

<<+9. If conditional status was earned during the May 2003 examination, the transition period shall expire on October 31, 2008 during which time the applicant shall have nine opportunities to take the examination; or+>>

<<+10. If conditional status was earned during the November 2003 examination, the transition period shall expire on April 30, 2009 during which time the applicant shall have 10 opportunities to take the examination.+>>

<<+(c) If an applicant who has previously obtained conditional credit does not pass all remaining test sections during the transition period within the number of opportunities provided in (b) above, conditional credits earned under the paper-and-pencil Certified Public Accountant Examination shall expire and the applicant shall lose credit for the test sections earned under the paper-and-pencil examination.+>>

<<+(d) Notwithstanding (c) above, any test section(s) passed during the transition period shall be subject to the conditioning provisions set forth in N.J.A.C. 13:29-1A.4, except that an applicant who has previously obtained conditional credit under the paper and pencil examination shall not lose conditional credit for a test section of the computer-based examination that is passed during the transition period, even though more than 18 months may have elapsed from the date the test section is passed, until the end of the transition period.+>>

<< NJ ADC 13:29-1.7 >>

<< NJ ADC 13:29-1A.6 >>

13:29-<<-1.7->><<+1A.6+>> <<-Applications for reexamination; conditional credit->> <<+Calculation of conditional credit earned on the paper and pencil examination in or before November 2003+>>

(a) <<-Applications for reexamination shall be allowed as follows in (b) below, and all fees shall be paid by check or money order.->> <<+This section shall apply to conditional credit earned in the Certified Public Accountant Examination in or before November 2003. Conditional credit earned after the November 2003 examination shall be subject to the requirements of N.J.A.C. 13:29-1A.5.+>>

(b) (No change.)

<<+(c) This section shall expire on April 30, 2009.+>>

<< NJ ADC 13:29-1A.7 >>

<<+13:29-1A.7 Security and irregularities; cheating+>>

<<+(a) Notwithstanding any other provisions of this subchapter, the Board may postpone scheduled examinations, the release of grades, or the issuance of licenses due to a breach of examination security; unauthorized acquisition or disclosure of the contents of an examination; suspected or actual negligence, errors, omissions, or irregularities in conducting an examination; or for any other reasonable cause or unforeseen circumstance.+>>

<<+(b) Cheating by an applicant in applying for, taking, or subsequent to the examination shall be deemed to invalidate any grade otherwise earned by the applicant on any test section of the examination, and may warrant summary expulsion from the test site and disqualification from taking the examination for a specified period of time.+>>

<<+(c) For purposes of this section, the following actions or attempted activities, among others, may be considered cheating:+>>

<<+1. Falsifying or misrepresenting educational credentials or other information required for admission to the examination;+>>

<<+2. Communication between applicants while the examination is in progress both inside or outside the test site or copying another applicant's answers;+>>

<<+3. Communication with others inside or outside the test site while the examination is in progress;+>>

<<+4. Substitution of another person to sit in the test site in place of the actual applicant;+>>

<<+5. Violating the nondisclosure prohibitions of the examination or aiding or abetting another in doing so; or+>>

<<+6. Retaking or attempting to retake a test section by an individual holding a valid license or by an applicant who has unexpired credit for having already passed the same test section, unless the individual or applicant has been expressly directed to retake the test section pursuant to a Board order or expressly authorized by the Board to retake the test section.+>>

<<+(d) In any case where it appears that cheating has occurred or is occurring, the applicant may be summarily expelled from the examination or moved to a position in the test site away from other examinees where the applicant may be watched more closely.+>>

<< NJ ADC 13:29-1.8 >>

<< NJ ADC 13:29-1A.8 >>

13:29-<<-1.8->><<+1A.8+>> Applications for license by endorsement

(a) (No change.)

(b) Applications for licensure by endorsement shall be accompanied by the following items:

1. The endorsement, initial license and application fees as set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>;

2. (No change.)

(c) Applicants shall appear upon request before the Board or any Committee appointed by the Board for the purpose of determining whether the applicant satisfies the requirements set forth at N.J.A.C. 13:29-<<-1.6->><<+ 1A.3+>>.

<< NJ ADC 13:29-1.12 >>

<< NJ ADC 13:29-1A.9 >>

13:29-<<-1.12->><<+1A.9+>> Public School Accountant's license

The holder of a license as a Certified Public Accountant or registered municipal accountant shall be granted a Public School Accountant's license upon application to the Board, and the payment of a fee for a period of three years, as set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>.

<< NJ ADC 13:29-1.11 >>

<< NJ ADC 13:29-1A.10 >>

B13:29-<<-1.11->><<+1A.10+>> Licensee requirements; renewal; suspended license; reinstatement

(a) Applicants who satisfy the requirements of this subchapter shall pay the initial license fee as set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>.

(b) (No change.)

(c) A Certified Public Accountant shall renew his or her license for a period of three years from the last expiration date. The licensee shall remit a renewal application to the Board, along with the renewal fee set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>, prior to the date of license expiration. A licensee who submits a renewal application within 30 days following the date of license expiration shall submit the renewal fee, as well as the late fee set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>. A licensee who fails to submit a renewal application within 30 days of the date of license expiration shall have his or her license suspended without a hearing.

(d) (No change.)

(e) A licensee who has had his or her license suspended pursuant to (c) above may apply to the Board for reinstatement within five years following the date of license expiration. A licensee applying for reinstatement shall submit a renewal application, all past delinquent renewal fees and the reinstatement fee set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>, as well as evidence of having completed all delinquent continuing professional education credit hours consistent with the requirements set forth in N.J.A.C. 13:29-6.2(c).

<< NJ ADC 13:29-2.3 >>

13:29-2.3 Licensee requirements; renewal; suspended license; reinstatement

(a) Applicants who satisfy the requirements of this subchapter shall pay the initial license fee set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>.

(b) (No change.)

(c) The holder of a Registered Municipal Accountant's license shall renew the license for a period of three years from the last expiration date. A licensee shall remit a renewal application to the Board, along with the renewal fee set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>, prior to the date of license expiration. A licensee who submits a renewal application within 30 days following the date of license expiration shall submit the renewal fee, as well as the late fee set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>. A licensee who fails to submit a renewal application within 30 days of the date of license expiration shall have his or her license suspended without a hearing.

(d) (No change.)

(e) A licensee who has had his or her license suspended pursuant to (c) above may apply to the Board for reinstatement within five years following the date of license expiration. A licensee applying for reinstatement shall submit a renewal application, all past delinquent renewal fees and the reinstatement fee set forth in N.J.A.C. 13:29-<<-1.13->><<+1.5+>>, as well as evidence of having completed all delinquent continuing professional education credit hours consistent with the requirements set forth in N.J.A.C. 13:29-6.2(c).



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