Alabama Administrative Code Title 30 - ALABAMA STATE BOARD OF PUBLIC ACCOUNTANCY
Alabama Administrative Code, Title 30, is dedicated to the Alabama State Board of Public Accountancy (ASBPA). This board is the state regulatory body for the accounting profession in Alabama. Its primary role is to protect the public interest by ensuring that individuals and firms practicing public accounting in Alabama are qualified, competent, and adhere to high ethical standards.
The rules within Title 30 govern various aspects of becoming and remaining a Certified Public Accountant (CPA) or Public Accountant (PA) in Alabama, as well as regulating public accounting firms.
Here's a breakdown of the key chapters and areas typically covered in Title 30:
Chapter 30-X-1 - DEFINITIONS:
Establishes fundamental definitions for terms used throughout the regulations, such as "Board" (referring to the Alabama State Board of Public Accountancy), "Certified Public Accountant" (CPA), "Public Accountant" (PA), "Practice of Public Accounting" (including attest services like audits, reviews, compilations, and engagements performed in accordance with SAS, SSARS, SSAE, and PCAOB standards), "Opinions on Financial Statements," and "Good Moral Character."
Chapter 30-X-2 - ADMINISTRATION:
Covers the general administrative procedures and powers of the Board, including its organization, meetings, and enforcement authority.
Chapter 30-X-3 - REGISTRATION, ANNUAL PERMITS, BRANCH OFFICES:
Details the requirements for individuals and firms to register with the Board and obtain annual permits to practice public accounting in Alabama.
Includes rules for registering branch offices.
Chapter 30-X-4 - EXAMINATIONS, QUALIFICATIONS OF CANDIDATES, APPLICATIONS, PASSING GRADES, CONDITIONED SUBJECTS, TRANSFER OF CREDITS, ISSUANCE OF CERTIFICATES:
This is a crucial chapter outlining the requirements for CPA licensure. It specifies:
Education: The academic qualifications needed to sit for the Uniform CPA Examination (typically a bachelor's degree with 120 semester hours to sit for the exam, but 150 semester hours are required for full CPA certification). This includes specific credit hour requirements in accounting (e.g., 33 upper-division semester hours) and business courses (e.g., 27 semester hours).
Examination: Rules for the Uniform CPA Examination, including passing grades and credit for passed sections.
Experience: The supervised work experience requirements (e.g., one year of full-time public accounting experience under a CPA, or two years of alternative experience in industry, government, or teaching).
Issuance of Certificates: The process for issuing the CPA certificate once all requirements are met.
Reciprocity/Mobility: Rules for CPAs licensed in other states to gain practice privileges or obtain an Alabama license by endorsement. Alabama is a two-tiered state, meaning a certificate is issued upon passing the exam and meeting education requirements, but a separate permit to practice is needed for public accounting.
Chapter 30-X-5 - CONTINUING PROFESSIONAL EDUCATION (CPE):
Mandates the continuing education requirements for licensed CPAs to maintain their competency and renew their licenses.
Specifies the number of CPE hours required annually (e.g., 40 hours per year), including specific requirements for ethics (e.g., at least 2 hours) and accounting/auditing (e.g., at least 8 hours).
Outlines acceptable CPE activities and reporting procedures.
Chapter 30-X-6 - RULES OF PROFESSIONAL CONDUCT:
Establishes the ethical standards and professional conduct that all CPAs and PAs practicing in Alabama must follow. This chapter is designed to protect the public. Key areas include:
Independence, Integrity, and Objectivity.
General Standards (professional competence, due professional care, planning and supervision, sufficient relevant data).
Confidential Client Information.
Contingent Fees.
Commissions and Referral Fees.
Incompatible Occupations.
Form of Practice and Firm Name.
Chapter 30-X-7 - PROCEDURE FOR ENFORCEMENT:
Details the process the Board follows when investigating alleged violations of the Accountancy Act or the Board's rules. This includes complaint procedures, investigations, disciplinary hearings, and potential sanctions (e.g., reprimands, fines, suspension, or revocation of license).
Chapter 30-X-8 - PEER REVIEW PROGRAM:
Outlines the requirements for CPA firms engaged in attest services to undergo a peer review, which is a periodic external review of a firm's accounting and auditing practices to ensure quality control.
The Alabama State Board of Public Accountancy's administrative code ensures that the accounting profession in Alabama is well-regulated, maintaining public trust in financial reporting and professional services. For the most current version of these rules, it is always advisable to consult the official Alabama Administrative Code on the Alabama Legislature's website or the Alabama State Board of Public Accountancy's official website.
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