The Iowa Accountancy Act of 2001
Adopted Rules

CHAPTER 3
CERTIFICATION OF CPAS

193A-3.1(79GA,ch 55) Qualifications for a certificate as a certified public accountant.
3.1(1) A person of good moral character who makes application pursuant to 2001 Iowa Acts, chapter 55, section 6, may be granted a certificate as a certified public accountant if the person satisfies all of the following qualifications:

a. Satisfactory completion of the educational requirements of 2001 Iowa Acts, chapter 55, section 5(7), and rule 193A-3.2(79GA,ch 55);

b. No less than one year of verified experience including the types of services described in 2001 Iowa Acts, chapter 55, section 5(12), and rule 193A-3.11(79GA,ch 55); and

c. Successful completion of the examination described in 2001Iowa Acts, chapter 55, section 5(8), and rule 193A-3.6(79GA,ch 55) and the ethics course and examination outlined in 193A-3.12(79GA,ch 55).

3.1(2) An application may be denied if the applicant:

a. Has been convicted of a crime described in 2001 Iowa Acts, chapter 55, section 5(2);

b. Has had a professional license of any kind revoked in this or any other jurisdiction, as provided in 2001 Iowa Acts, chapter 55, section 5(3);

c. Makes a false statement of material fact on an application for a certificate or is otherwise implicated in the submission of a false application as provided in 2001 Iowa Acts, chapter 55, section 5(4); or

d. Demonstrates a lack of moral character in a manner which the board reasonably believes will impair the applicant's ability to practice public accountancy in full compliance with the public interest and state policies described in 2001 Iowa Acts, chapter 55, section 2. While it is not possible to itemize all actions or behaviors which may demonstrate a lack of moral character, the following nonexclusive list of factors will guide the board in making its determination:

(1) A pattern and practice of making false or deceptive representations, or of omitting material facts, while providing the public any of the services described in 2001 Iowa Acts, chapter 55, section 3(20).

(2) Fraud or dishonesty while advertising or selling goods or services to the public.

(3) Willful or repeated failure to timely file tax returns or other mandatory submittals due a governmental body.

(4) Fiscally irresponsible behavior in the absence of mitigating circumstances.

193A-3.2(79GA,ch 55) Colleges or universities recognized by the board. 2001 Iowa Acts, chapter 55, section 5, in providing for educational qualifications for a certificate as certified public accountant, refers to colleges or universities "recognized by the board." For such purpose, the board recognizes educational institutions accredited by the American Assembly of Collegiate Schools of Business and the regional accrediting bodies listed in the current publication of the Accredited Institutions of Post Secondary Education, which listing is made a part of these rules by reference.

This rule is intended to implement 2001 Iowa Acts, chapter 55, section 5.

193A-3.3(79GA,ch 55) Accounting concentration.
3.3(1) On or before December 31, 2000, Iowa Code section 542C.5, in providing for educational requirements for a certificate as a certified public accountant, refers to "substantially the equivalent of an accounting concentration, including related courses in other areas of business administration." The requirement for "substantially the equivalent of an accounting concentration" shall be deemed to have been met whether the candidate has a nonaccounting baccalaureate degree supplemented by additional courses or has a baccalaureate degree with a major in accounting provided the candidate has satisfactorily completed a minimum of 48 semester hours, or the equivalent thereof, in accounting and related subjects. Not less than 24 hours shall be in accounting courses, of which at least one course shall be in auditing; and the remainder may be in the subjects of economics, business statistics, business law, finance, business management, marketing, business communication, or other business-related subjects. Mathematics courses shall not qualify unless the course is business math.

A candidate for examination qualifying under this subrule must have passed at least one subject of the examination prior to January 1, 2001, and must successfully complete all subjects of the examination by December 31, 2003, or meet the requirements outlined in subrule 3.3(2).

3.3(2) On or after January 1, 2001, a candidate will be deemed to have met the educational requirement if, as part of the 150 semester hours of education as outlined in 2001 Iowa Acts, chapter 55, section 5, the candidate has met one of the following four conditions:

a. Earned a graduate degree with a concentration in accounting from a program that is accredited in accounting by an accrediting agency recognized by the board.

b. Earned a graduate degree in business from a program that is accredited in business by an accrediting agency recognized by the board and completed at least 24 semester hours in accounting including courses covering the subjects of financial accounting, auditing, taxation, and management accounting. Such accounting hours shall not include elementary accounting or principles of accounting, internships or life experience.

c. Earned a baccalaureate degree in business or accounting from a program that is accredited in business by an accrediting agency recognized by the board and completed at least 24 semester hours in accounting courses covering the subjects of financial accounting, auditing, taxation, and management accounting. Such accounting hours shall not include elementary accounting or principles of accounting, internships or life experience.

d. Earned a baccalaureate or higher degree and completed the following hours from an accredited institution recognized by the board:

(1) At least 24 semester hours in accounting courses above elementary accounting or principles of accounting covering the subjects of financial accounting, auditing, taxation, and management accounting, not including internships or life experience, and

(2) At least 24 additional semester hours in business-related courses, not including internships or life experience. Elementary accounting hours that do not qualify under subparagraph 3.3(2)"d"(1) may apply toward business-related courses.

Quarter hours will be accepted in lieu of semester hours at a 3:2 ratio; that is, three quarter hours is equivalent to two semester hours. Internships and life experience hours may apply toward the total 150 hours requirement.

3.3(3) The board may admit to the examination a candidate who will complete the educational requirements for a baccalaureate degree with a concentration in accounting as provided in subrule 3.3(2) within 120 days immediately following the date of the examination or who has completed those requirements. However, the board shall not report the results of the examination until the candidate has met the educational requirements for a baccalaureate degree and shall not issue the certificate until the candidate has fully satisfied the requirements of 2001 Iowa Acts, chapter 55, sections 5(7) and 5(12).

3.3(4) The board will consider correspondence study and study in other schools not meeting the above requirements on an individual basis if the candidate can provide evidence that such study would be acceptable for credit by a college or university recognized by the board; provided, however, that at least 18 of the required hours in accounting and at least 16 of the required hours in business related subjects must be obtained in a college or university recognized by the board.

3.3(5) The applicant's claim to college or university credits must be confirmed by an official transcript of credit issued by the institution in question. The applicant shall be responsible for having such transcripts sent to the board's test administrator at the time of making application. The applicant shall also be responsible for having any institution not listed under rule 193A-3.2(79GA,ch 55) furnish the board evidence that it meets the accreditation requirements of the board. In addition, the applicant is responsible for all material being in possession of the test administrator by the deadline for filing applications. Otherwise, the application shall be considered incomplete and shall not be approved by the board.

3.3(6) Graduates of foreign colleges or universities shall have their education evaluated by a foreign credentials evaluation advisory service specified by the board.

193A-3.4(79GA,ch 55) Examination applications.
3.4(1) A individual desiring to take the certified public accountant examination should apply on the form provided by the board's test administrator by the deadline established in rule 193A-3.5(79GA,Ch55).

3.4(2) To be eligible to take the examination as a reexamination applicant, the candidate shall have fulfilled the requirements of rule 3.3(79GA,ch 55).

3.4(3) A candidate for the examination who has been convicted in a court of competent jurisdiction in this state, or another state, territory, or a district of the United States, or in a foreign jurisdiction of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, or other similar offense, or of any crime involving moral character or dishonesty, may be denied admittance to the examination by the board on the grounds of the conviction. For purposes of this subsection, "conviction" means a conviction for an indictable offense and includes a guilty plea, deferred judgment from the time of entry of the deferred judgment until the time the defendant is discharged by the court without entry of judgment, or other finding of guilt by a court of competent jurisdiction.

3.4(4) A candidate for examination who has had a professional license of any kind revoked in this or any other jurisdiction may be denied admittance to the examination by the board on the grounds of the revocation.

3.4(5) A candidate who makes a false statement of material fact on an application for examination for a certificate, or who causes to be submitted or has been a party to preparing or submitting a false application for a certificate, may be denied a certificate by the board on the grounds of the false statement or submission.

3.4(6) A candidate may be considered as a reexamination applicant regardless of whether or not the candidate sat for the examination once initially approved. Reexamination applicants may apply by telephone to the board's test administrator or may apply on-line if the technology is available.

3.4(7) A nonrefundable proctoring fee shall be collected from a candidate who wishes to be proctored in Iowa.

193A-3.5(79GA,ch 55) Deadline for filing applications. Examinations are ordinarily held in May and November of each year, and all applications to take the examinations must be filed during the period of January 1 to the last day of February for the May examination and during the period of July 1 to August 31 for the November examination. Applications will not be considered filed until they are complete in all respects. Applications shall be deemed filed on the date received by the board's test administrator or, if mailed, the date postmarked, but not the date metered. Late applications will not be accepted.
This rule is intended to implement 2001 Iowa Acts, chapter 55, section 5.

193A-3.6(79GA,ch 55) Content and grading of the examination.
3.6(1) The board may make use of the uniform certified public accountant's examination prepared by the American Institute of Certified Public Accountants under a plan of cooperation with the boards of all states and territories of the United States.

3.6(2) The board may also make use of the advisory grading service provided by the American Institute of Certified Public Accountants under a plan of cooperation with the boards of all states and territories of the United States.

3.6(3) The identity of the person taking the examination shall be concealed until after the examination papers have been graded by the advisory grading service. A grade of at least 75 in each subject shall be considered passing.

193A-3.7(79GA,ch 55) Conditioning requirements.
3.7(1) A candidate must take all subjects at one sitting until the candidate achieves the status of conditional candidate or passes all subjects.

3.7(2) A candidate who at any examination passes two or more subjects and obtains a grade of not less than 50 in each subject failed shall be considered as a conditional candidate in the subjects successfully passed. However, the minimum grade requirement will be waived if three subjects are passed at a single sitting.

3.7(3) A candidate who achieves conditional standing shall be credited with the subjects in which the candidate received passing grades. A conditional candidate may, upon payment of the required fee, appear for reexamination in the subject or subjects failed at any of the next six semiannual examinations.

3.7(4) When a conditional candidate appears for reexamination, the candidate must take all subjects for which failing grades were received. To obtain credit for a subject or subjects passed upon reexamination, the conditional candidate must obtain a grade of not less than 50 in each subject failed. A grade of less than 50 shall have no effect on a prior condition.

3.7(5) If, on reexamination, the candidate fails to pass the remaining subject or subjects within the time provided for reexamination in subrule 3.7(3), such candidate shall revert to the status of a new applicant, take the entire examination, and pay the appropriate fee.

3.7(6) The time limit within which a candidate is required to pass all subjects under this rule shall not include any period during which the applicant was serving in the armed forces of the United States. This exception does not apply if the candidate takes an examination while so serving. The board may extend the time limit in particular instances on a case-by-case basis.

3.7(7) The time limit within which a candidate is required to pass all subjects under this rule may be extended for hardship cases, such as when the applicant for the examination is prevented from attending for such reasons as unexpected illness, verified by a medical doctor, or a death in the family, verified in writing.

3.7(8) A candidate requesting transfer of grades from any other jurisdiction will be subject to the same provisions of this rule as an Iowa candidate, provided the examination given by the licensing authority in the other state was an examination approved by the Iowa board.

3.7(9) A candidate requesting transfer of grades from any other jurisdiction who does not meet the provisions of this rule, but who meets all of the requirements for issuance of an original certificate in the examining state other than residency, may, at the board's discretion, be required to take at least one section of the examination designated by the board.

This rule is intended to implement 2001 Iowa Acts, chapter 55, section 5.

193A-3.8(79GA,ch 55) Examination procedures.
3.8(1) At the examination, a candidate must provide evidence of the identification of the candidate with some official document, such as a driver's license, student identification, service identification, or passport that contains the candidate's photograph. The candidate will be known at the examination by the candidate's identification number alone and the number shall be placed on every sheet containing computations for or answers to the examination questions.

Under no circumstances shall a candidate's name, initials, or any identifying mark, other than the assigned number be placed on any of the examination papers. Failure to comply with this requirement shall be deemed misconduct sufficient for rejecting the candidate's papers.

3.8(2) Answers must be submitted on blanks furnished by the board's test administrator and must be completed in the total time allotted for each subject.

3.8(3) Stationery and supplies furnished by the board's test administrator shall remain the administrator's property and must be returned whether used or not.

3.8(4) In the event that any examination papers are lost, the liability of the board or its test administrator will be limited to the fee paid by the applicant for the examination.

193A-3.9(79GA,ch 55) Conduct of the examination.
3.9(1) Any individual who subverts or attempts to subvert the examination process may, at the discretion of the board, have the individual's examination scores declared invalid for the purpose of certification in Iowa, be barred from accountancy licensing and certification examinations in Iowa, or be subject to the imposition of other sanctions the board deems appropriate.

3.9(2) Conduct that subverts or attempts to subvert the examination process includes, but is not limited to:

a. Conduct which violates the security of the examination materials, such as removing from the examination room any of the examination materials; reproducing or reconstructing any portion of the licensing examination; aiding by any means in the reproduction or reconstruction of any portion of the licensing examination; selling, distributing, buying, receiving, or having unauthorized possession of any portion of a future, current, or previously administered licensing examination.

b. Conduct which violates the standards of test administration, such as communicating with any other examination candidate during the administration of the licensing examination; copying answers from another candidate or permitting one's answers to be copied by another candidate during the administration of the examination; having in one's possession during the administration of the licensing examination any books, notes, written or printed materials or data of any kind, other than the examination materials distributed.

c. Conduct which violates the examination process, such as falsifying or misrepresenting educational credentials or other information required for admission to the licensing examination; impersonating an examination candidate or having an impersonator take the licensing examination on one's behalf.

3.9(3) Any examination candidate who wishes to appeal a decision of the board under this rule may request a contested case hearing. The request for hearing shall be in writing, shall briefly describe the basis for the appeal, and shall be filed in the board's office within 30 days of the date of the board decision being appealed. Any hearing requested under this subrule shall be governed by the rules applicable to contested case hearings under 193-Chapter 7.

193A-3.10(79GA,ch 55) Refunding of examination fees. Examination fees shall not be refunded except as follows:

1. An applicant who is admitted but fails to attend the examination shall be rebated 50 percent of the prescribed fee provided notification that the applicant will not be present is received by the board 30 calendar days prior to the beginning of the examination.

2. Fifty percent of the prescribed fee shall be returned to an applicant whose application has been submitted and reviewed but who is found not qualified to take the examination.

3. In hardship cases, such as when the applicant for the examination is prevented from attending for such reasons as unexpected illness, verified by a medical doctor, a death in the family, or a call to active military service, 50 percent of the fee may be returned provided that under the circumstances it was not possible for the applicant to notify the board at least 30 calendar days prior to the beginning of the examination that the applicant could not be present. Written documentation of the hardship shall be provided to the board's test administrator.

193A-3.11(79GA,ch 55) Experience for certificate.
3.11(1) Experience shall include providing any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax or consulting skills. Experience may be gained through employment in government, industry, academia, or public practice.

3.11(2) One year of experience shall consist of full- or part-time employment that extends over a period of no less than one year and no more than three years and includes no fewer than 2,000 hours of performance of services outlined in subrule 3.11(1). Experience may be gained in more than one employment situation, including an internship.

3.11(3) An applicant seeking qualification as an attest CPA shall have at a minimum two years of experience as more fully described in 193A-subrule 6.3(1).

3.11(4) All experience shall be verified by a licensee with direct supervisory control over the applicant or by a licensee who can attest that the experience gained by the applicant meets the requirements of subrule 3.11(1) if the applicant is not supervised by a licensee.

3.11(5) Teaching experience shall be in the employment of an institution of higher education and shall include teaching a minimum of 24 semester hours of accounting courses for which the course participants receive credit on an official transcript. Teaching of non-credit continuing education courses shall not qualify under this rule.

193A-3.12(79GA,ch 55) Ethics course and examination. A successful candidate shall also be required to pass an examination covering the code of ethical conduct prior to issuance of the certificate.

193A-3.13(79GA,ch 55) Obtaining the certificate. A candidate who successfully passes the examination and meets the experience requirements outlined in rule 193A-3.11(79GA,ch 55) shall make application for the certificate on a form which may be obtained from the board office. An applicant for certificate may be denied the certificate for reasons outlined in subrules 3.4(3), 3.4(4), and 3.4(5) regardless of when the incident occurred.

193A-3.14 (79A,ch55) Use of title.
3.14(1) Only a person holding a certificate may use or assume the title "certified public accountant" or the abbreviation "CPA" or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such person is a certified public accountant.

3.14(2) Rules regarding the use of the title "CPA" in a firm name are found at 193A-subrule 13.6(5).

These rules are intended to implement 2001 Iowa Acts, chapter 55.