ASSEMBLY, No. 1905

STATE OF NEW JERSEY

INTRODUCED MAY 6, 1996

By Assemblymen ROMA and GARCIA

An Act concerning public accounting and supplementing P.L.1977, c.144 (C.45:2B-1 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1.     On or after the effective date of this act, the New Jersey State Board of Accountancy shall accept applications from any person seeking licensure as an accountant practitioner in accordance with the provisions of this act. A licensed accountant practitioner is authorized to perform or offer to perform for a client or a potential client compilation services as defined by the American Institute of Certified Public Accountants, but shall be prohibited from performing or offering to perform review or audit services for a client or potential client.

    2.    a. Except as provided in subsection b. of this section, no person shall be issued a license by the board to practice as an accountant practitioner unless he shall have passed all sections of a written examination, as the board shall determine, which shall include sections in accounting, taxation and law, with a passing grade of 75 on each section.

    b. A person who does not attain a passing grade in each section of the written examination approved by the board the first time he sits for the examination shall be issued a license as an accountant practitioner if: (1) the applicant passes the remaining sections of the examination within six consecutive examinations given after the one at which the first section or sections were passed; and (2) at each subsequent sitting at which the applicant seeks to pass any additional sections, the applicant writes all sections not yet passed and attains an average grade of 50 on all sections written but not yet passed.

    Examinations shall be given by the board at least twice a year, and any person who wishes to sit for an examination shall apply to the board at least 60 days prior to the date of examination. The board may make use of the applicable sections of the National Society of Public Accountants Uniform Registered Accountants Examination and Grading, or any other examination offered by an organization recognized by the board, which the board deems appropriate.

    3.    Every applicant for examination as an accountant practitioner shall present to the board a written application on a form to be provided by the board, together with the required fee, and satisfactory proof of the following:

    a. That the applicant is at least 18 years of age;

    b. That the applicant is of good moral character; and

    c. That the applicant has a baccalaureate degree or its equivalent as determined by the Commission on Higher Education, including courses in accounting and related professional courses as the board may require.

    4.     Every applicant for licensure as an accountant practitioner, having passed the examination required pursuant to section 2 of this act, shall show that the applicant has had one year of experience in the practice of public accountancy, or its equivalent as determined by the board, under the direction of a licensee meeting requirements prescribed by the board.

    5.    In accordance with the provisions of section 2 of this act, the board may by regulation prescribe the terms and conditions under which a candidate who has passed any part or parts of the appropriate examination may be reexamined in only the remaining parts.

    6. This act shall take effect immediately.

STATEMENT

    This bill provides that the New Jersey State Board of Accountancy shall license a new category of eligible individuals as accountant practitioners to perform certain accounting functions. The new category of accountant practitioners established under this bill will only be allowed to perform compilation services as defined by the American Institute of Certified Public Accountants.

    Any person shall be eligible for licensure as an accountant practitioner who applies to the board and meets the following requirements:

    1.    Is at least 18 years of age;

    2.    Is of good moral character;

    3.    Has a baccalaureate degree or its equivalent as determined by the Commission on Higher Education, including courses in accounting and related professional courses as the board may require.

    Applicants for licensure as accountant practitioners, who have passed the required examination, shall also show that they have had one year of experience in the practice of public accountancy or its equivalent, under the direction of a licensee meeting requirements prescribed by the board.

Provides for the licensure of accountant practitioners.