3 Colo. Code Regs. § 705-1.10

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

Section 3 CCR 705-1.10 - CONTINUING PROFESSIONAL EDUCATION (CPE)

This Rule is promulgated pursuant to sections 12-20-204, 12-100-105(1)(b), and 12-100-115, C.R.S.

A.GENERAL INFORMATION

1. As indicated in Rule 1.9, a certificate holder must complete ten hours of CPE for every full quarter during which his certificate is in active status. (See also Rule 1.9 for specific CPE requirements including Ethics.) Changing the certificate status to retired, inactive, or expired does not eliminate the obligation to complete CPE that was accrued but not completed as of the date of such change. Failure to complete required CPE is cause for discipline up to and including revocation.

2. Active certificate holders must participate in learning activities that maintain and/or improve their professional competence as a CPA and assure reasonable currency of knowledge. A certificate holder's field of employment does not limit the need for CPE.

3. Certificate holders performing professional services need to have a broad range of knowledge, skills, and abilities. Accordingly, acceptable CPE encompasses programs that contribute to the development and maintenance of both technical and non-technical professional skills.

4. Learning activities that do not maintain and/or improve professional competence as a CPA will not be accepted for credit towards CPE. Learning activities that do not maintain and/or improve professional competence as a CPA include, but are not limited to, activities that teach fundamental accounting skills such as, or comparable to, first and second semester principles of accounting or their equivalent.

5. It is the responsibility of certificate holders to be aware of and comply with all CPE requirements under these Rules.

6. The Board will not grant credit for CPE that does not meet the requirements of this Rule 1.10.

B.CPE STANDARDS

1. Certificate holders, program sponsors, and program developers must comply with the joint standards as defined in Rule 1.4 and incorporated herein by reference. If a Rule of the State Board of Accountancy is inconsistent or otherwise differs from the materials incorporated by reference herein, the Rule of the State Board of Accountancy governs. It is ultimately the responsibility of certificate holders to ensure that any CPE completed complies with the joint standards and these Rules.

2. For internet based CPE programs, a minimum of seventy-five percent of the polling questions, if used as a monitoring mechanism, must be answered by the CPA in order to receive credit for the CPE activity.

3. Program sponsors will be deemed in compliance with Joint Standard 14 of the joint standards regarding CPE credit for self-study learning activities if the program developer or vendor pilot tests the representative completion time, or computes the recommended CPE credit using the prescribed word count formula, or attests to the appropriateness of the recommended CPE credit for the self-study learning activity.

C.SUBJECT MATTER

1. The following are acceptable subjects for CPE courses as defined in the Fields of Study:

a. Accounting

b. Accounting (Governmental)

c. Auditing

d. Auditing (Governmental)

e. Behavioral Ethics*

f. Business Law

g. Business Management and Organization

h. Communications and Marketing

i. Computer Software and Applications

j. Economics

k. Finance

l. Information Technology

m. Management Services

n. Personal Development

o. Personnel/HR

p.Production

q. Regulatory Ethics

r. Specialized Knowledge

s. Statistics

t. Taxes

2. CPE in Behavioral Ethics or Regulatory Ethics as listed in this Rule 1.10 shall not satisfy any requirements that the licensee or applicant complete and pass the AICPA Ethics Course and Examination. Additionally, for the purpose of CPE, Behavioral Ethics is not considered to be Personal Development.

3. The two hours of CR&R allowed or required as CPE under these Rules count as Regulatory Ethics as listed in this Rule 1.10 . Satisfactory CR&R course presentations need not be limited to two hours but may comprise and grant credit for as many hours as necessary to satisfy the requirements of Rule 1.10 . However, CR&R course credit hours granted in excess of two hours will not be considered CR&R or Ethics CPE, but the excess hours will count as Specialized Knowledge as listed in this Rule 1.10(C).

D.CPE CREDIT AND RECORDS DOCUMENTATION AND RETENTION

The Board may grant CPE credit to a certificate holder for participation in the activities listed in this Rule 1.10 . The certificate holder is responsible for accurate reporting and documentation of all CPE hours completed. Certificate holders must retain documentation for a minimum of five years from the end of the year in which the CPE was completed. The documentation must be submitted to the Board upon request.

1. CPE Programs

Documentation for CPE Programs must include a Certificate of Completion, Certificate of Attendance, or Firm Transcript that includes:

a. Name and contact information of CPE program sponsor;

b. Participant's name;

c. Title of program;

d. Fields of Study, as described in Rule 1.10 (C);

e. Date(s) the program was offered or completed;

f. Location of program, if applicable;

g. Type of instruction/delivery method;

h. Number of CPE credits completed; and

i. Verification by the CPE program sponsor (verification may be in the form of a signature, seal, or other similar indicia).

2. Teaching

a. For purposes of this Rule 1.10, "teaching" for CPE credit means providing instruction. To qualify for CPE, the instruction must enhance the teaching certificate holder's professional competence, as provided in Rule 1.10(A).

b. The instruction must be provided either for the first time or be substantially revised from the previous time(s) it was taught by the certificate holder. "Substantially revised" means the majority of the presentation and/or course content has been significantly modified. Such significant modifications may be required due to legislative changes, changes in principle, rules, practices, or standards, for example. Simple updates to a textbook or edition change do not constitute a significant modification.

c. Instructors, discussion leaders, or speakers who present a learning activity for the first time may receive CPE credit for actual preparation time up to two times the number of CPE credits to which participants would be entitled, in addition to the time for presentation, subject to regulations and maximums established by the state boards. For example, for learning activities in which participants could receive 8 CPE credits, instructors may receive up to 24 CPE credits (16 for preparation plus 8 for presentation). For repeat presentations, CPE credit can be claimed only if it can be demonstrated that the learning activity content was substantially changed and such change required significant additional study or research.

d. Documentation for teaching credit must include:

(1) The name and contact information of the CPE program sponsor or college or university;

(2) Verification from the CPE program sponsor or college or university of teaching the course or activity, the number of hours taught, and the Fields of Study as described in Rule 1.10(C);

(3) For teaching CPE, an attestation from a qualified third party, including, but not limited to, any one of the program sponsor, developer, or author, that the course or activity was new or substantially revised, or if the credit is for a college or university course, an attestation from the accounting department chair that the course was new or substantially revised;

(4) A statement from the certificate holder describing how the activity maintained and/or improved the certificate holder's professional competence as a CPA;

(5) Activity/course syllabus or outline; and

(6) The certificate holder's qualifications to present the subject matter.

3. Panel Presentations

a. To qualify for CPE, the panel presentation must enhance the presenting certificate holder's professional competence, as provided in Rule 1.10(A).

b. CPE credit will be granted for the total number of hours of attending the panel presentation plus preparation time equal to two times the total length of the panel presentation divided by the number of presenters. Panel presentation hours will be included as teaching hours for purposes of the limit on teaching hours specified in Rule 1.9.

c. The panel presentation must be provided either for the first time or be substantially revised from the previous time(s) it was presented by the certificate holder. "Substantially revised" means the majority of the subject matter content has been significantly modified. Such significant modifications may be required due to legislative changes, changes in principles, rules, practices, or standards, for example.

d. Documentation for panel presentation credit must include:

(1) The name and contact information of the program provider/sponsor;

(2) Verification of the number of panel hours;

(3) The Fields of Study as described in Rule 1.10 or a description of the subject material addressed by the panel;

(4) If the subject matter has been previously presented by the certificate holder, the certificate holder must provide a statement demonstrating that the subject matter presented was substantially revised;

(5) A statement from the certificate holder describing how the activity maintained and/or improved the certificate holder's professional competence as a CPA;

(6) A presentation syllabus, outline, or agenda; and

(7) The certificate holder's qualifications to present the subject matter.

4. Published Article or Book

Documentation for published article or book credit must include:

a. Proof of publication and independent review of the article or book;

b. The name and contact information of the independent reviewer and publisher. "Independent reviewer" means an individual who demonstrates expertise regarding the same or closely-related subject matter and who is not affiliated with the certificate holder personally;

c. A summary of hours and identify the CPE Field of Study claimed, as described in Rule 1.10, with detail of time spent, with dates, and research performed; and

d. A statement from the certificate holder describing how the activity maintained and/or improved the certificate holder's professional competence as a CPA.

5. College or University Coursework

a. Documentation for college or university coursework must include:

(1) For a credit course, an original official transcript or grade card from a college or university; and

(2) For a non-credit course, a certificate of attendance issued by the college or university.

b. AICPA/NASBA CPE Standards calculation for conversion of semester and quarter hours for CPE credit:

(1) One semester hour equals fifteen CPE credit hours, and

(2) One quarter hour equals ten CPE credit hours.

6. Specialized Industry Programs

Documentation for specialized industry programs that do not comply with all applicable CPE requirements must include:

a. Provider-generated documentation indicating completion or attendance;

b. A statement from the certificate holder that demonstrates that the learning activity satisfies, or is equivalent to an activity that satisfies, the joint standards;

c. Documentation that includes the elements outlined in Rule 1.10(D)(1)(a) through 1.10(D)(1)(i); and

d. The number of CPE hours claimed and how those hours were computed.

E.HARDSHIP EXCEPTIONS

A certificate holder may seek an exception to the CPE requirements by submitting a written request justifying the exception to the Board. The Board will decide on a case-by-case basis whether good cause has been demonstrated to waive the CPE.

F.CPE COMPLIANCE

1. CPE records of certificate holders may be audited after renewal periods to verify compliance with the requirements described in Rules 1.9 and 1.10 . The CPE reporting period is a two-year period from January 1 of an even-numbered year through December 31 of an odd-numbered year during which the certificate holder must complete CPE.

2. A certificate holder must provide all documentation and information requested regarding CPE compliance in a manner prescribed by the Board within thirty days of a Board request unless otherwise provided by these Rules.

G.FAILURE TO COMPLY WITH CPE REQUIREMENTS

1. If upon review, the Board or its designee finds that a certificate holder has failed to comply with the CPE requirements, the certificate holder has thirty days from the date of the notice of such finding to:

a. Provide further evidence that the hours submitted meet the CPE requirements established by these Rules; or

b. Provide documentation described in Rule 1.10 demonstrating completion of additional CPE hours during the CPE reporting period that meet the requirements established by these Rules.

2. If the Board finds that a certificate holder failed to comply with the CPE requirements, the Board may impose discipline and/or include the certificate holder in the CPE audit of subsequent CPE reporting periods.

H.BOARD ACCEPTANCE OF COLORADO RULES AND REGULATIONS (CR&R) COURSES

1. The Board will not accept or consider courses in CR&R that do not cover current Colorado Revised Statutes and Board Rules and comply with the content outline set forth in this Rule 1.10(H).

2. The CR&R Content Outline represents only a general description of the materials that must be addressed in the CR&R course. A CR&R course must address all provisions of the applicable Colorado Revised Statutes, Board Rules, and Board Policies.

3. The failure of a CR&R course to cover all Colorado Revised Statutes and Board Rules and Policies is not a defense to a violation of the Act or these Rules.

4. For the purposes of CR&R, Colorado Revised Statutes, Board Rules, and legislative documents may be considered by program sponsors as instructional materials and not as reference or supplements to the instructional materials. The use of these documents by program sponsors when providing CR&R courses will be considered compliant with the Joint Standards.

5. CR&R Content Outline:

This course discusses the Colorado Statutes and Rules that pertain to CPAs licensed to practice in the State of Colorado. Students will become familiar with the Colorado Revised Statutes, the Rules of the State Board of Accountancy, and the Policies adopted by the Board currently in effect and how the statutes, rules, and policies pertain to them.

a. Overview of Regulatory Requirements

(1) Review of Colorado Revised Statutes (as they pertain to accountancy), Board of Accountancy Rules, and Policies.

(2) Legislative changes affecting the accounting profession, as applicable.

b. State Board of Accountancy

(1) Organization and duties of the Board

(2) State Board of Accountancy Website (overview)

c. Certified Public Accountant Designation

(1) Proper use- Holding Out

(2) Types of Certificates

(3) Status and maintenance of Certificates

(4) Licensure- Examination and certification

(5) Continuing professional education

(6) Disclosures

(7) Names

(8) Mobility/Practice Privilege and reciprocity

(9) Peer Review

d. Professional Conduct

(1) Unlawful Acts

(2) Accountant/Client Privilege

(3) Grounds for disciplinary Action

(4) Client Records

e. Firms

(1) Firm Registration

(2) Firm Names

(3) Peer Review

(4) Disclosures

CR&R course materials and/or certificates of completion must include the date on which the current version offered/taught was last updated.

3 CCR 705-1.10

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