3 Colo. Code Regs. § 705-1.7

Current through Register Vol. 47, No. 22, November 25, 2024

Section 3 CCR 705-1.7 - [Effective until 12/15/2024] EXPERIENCE REQUIREMENTS FOR CERTIFICATION

The following requirements apply to applicants who seek to qualify for certification pursuant to sections 12-100-107 and 12-100-108, C.R.S.

A.GENERAL EXPERIENCE AND VERIFICATION REQUIREMENTS

1. An applicant has satisfied the experience requirement necessary to be issued a certificate upon completion of 1,800 qualifying work hours verified by one or more verifiers as defined in Rule 1.7(A)(5).

a. The work hours must be obtained within the five years immediately preceding the date the application is received by the Board or its designee.

b. The work hours may include any combination of full-time and part-time work. Academic internship hours may be included if not claimed under Rule 1.5 for education credit.

c. Except as provided in Rule 1.7, the work hours must be obtained while employed by one or more employers.

d. The work hours must be obtained over a period of not less than one year and not more than three years.

2. The work experience must involve the application of appropriate technical and behavioral standards, such as the AICPA Code of Professional Conduct and other standards contained in the AICPA Professional Standards, U.S. GAAP, U.S. GAAS, Statements on Standards for Attestation Engagements (SSAE), Statements on Standards for Accounting and Review Services (SSARS), Statements on Standards for Tax Services (SSTS), Statements on Standards for Management Consulting Services, or other such standards as determined by the Board.

3. "Qualifying work hour(s)" means hours spent primarily applying the standards described in Rule 1.7 . Holidays, vacations, and family/employee sick leave shall not be included as qualifying work hours. Clerical experience does not count toward qualifying work hours. Clerical experience includes, but is not limited to, mere data entry, mere mathematical calculations, mere account analysis of information already recorded, and merely recording information in the general ledger.

4. Comparable work experience not specifically addressed by these Rules may be considered by the Board on a case-by-case basis, but must include application of the standards described in Rule 1.7(A)(2).

5. "Verifier" means a CPA who is, for the entire period verified, actively licensed in any State or a country that is part of the Mutual Recognition Agreement as set forth in Rule 1.8 . The verifier cannot be subordinate to or otherwise under the supervision or control of the applicant. The verifier must attest to having direct and continuous knowledge of the work done by the applicant and to having performed contemporaneous periodic review and evaluation of the Applicant's work. The Board in its discretion may grant exceptions to the requirements in this subsection for good cause.

6. The applicant must submit a certificate of experience from all relevant employers including details of the work experience and verification in a manner prescribed by the Board or its designee. Certificates of experience for part-time work must contain a record of the actual hours the applicant has worked for each week of part-time employment. The certificate of experience and all additional details must be signed by the verifier.

7. The Board may request and review information regarding the work experience submitted, including, but not limited to, evidence of experience with the standards described in Rule 1.7, work papers, reports, syllabi, course materials, and/or time records. The Board may also interview applicants, verifiers, and any other person who might possess relevant information.

B.PUBLIC ACCOUNTING

Qualifying public accounting experience, for purposes of this Rule, consists of performing services for a client or potential client, including, but not limited to, any combination of services involving the use of accounting or attestation skills, the issuance of reports on financial statements, management advisory or consulting services, preparing tax returns, or furnishing advice on tax matters. Such work consists of employment by a CPA or Firm performing services primarily involving the application of the standards described in Rule 1.7.

C.INDUSTRY

Qualifying industry experience consists of performing services, including for an employer, primarily involving the application of the standards described in Rule 1.7 . Such services may include, but are not limited to, internal audit, installation of internal control systems, preparing Financial Statements, management advisory or consulting services, preparing tax returns, or furnishing advice on tax matters.

D.GOVERNMENT

Qualifying government experience consists of employment by a federal, state, or local government entity. Such work consists of employment performing services primarily involving the application of the standards described in Rule 1.7 . Such services may include, but are not limited to, internal or external audit, installation of internal control systems, preparing Financial Statements, management advisory or consulting services, or regulatory reporting on financial matters.

E.ACADEMIA

1. Qualifying academic experience consists of teaching in the accounting discipline for academic credit at a regionally accredited college or university. The teaching must include at least two different accounting courses taught above the introductory level involving the standards described in Rule 1.7(A)(2). One year of experience consists of teaching no less than twelve semester hours or the equivalent in quarter hours. Courses outside the field of accounting do not count toward the experience requirement. Such non-qualifying courses include, but are not limited to, business law, finance, computer applications, personnel management, marketing, economics, and statistics.

2. In addition to a certificate of experience, the applicant must submit with the application a letter from each institution where the qualifying hours were taught, signed by the dean or department head at that institution. The letter must include:

(a) the number of credit hours that the applicant taught for the relevant years; and

(b) the name and academic level, course description, and syllabus for each course taught. The verifier must be the department chair or a faculty member, who shall also be a CPA as described in Rule 1.7(A)(5).

3 CCR 705-1.7

44 CR 03, February 10, 2021, effective 3/2/2021

44 CR 20, October 25, 2021, effective 11/14/2021

45 CR 11, June 10, 2022, effective 6/30/2022

45 CR 17, September 10, 2022, effective 9/30/2022

45 CR 20, October 25, 2022, effective 11/14/2022