CPE - Requirements

CPE Requirements
Qualifying CPE Courses | CPE Reporting

The current reporting period is January 1, 2005 - December 31, 2007.
This is the third year of the three year reporting period.

I.  General

A. Purpose - The purpose of the continuing professional education (CPE) requirement is to increase the professional competence of each member. Members are expected to maintain the high standards of the profession by selecting quality education programs to fulfill their continuing education requirements. Members have wide latitude in selecting continuing education programs suited to their professional activities.

B. Failure to Meet CPE Requirements - Failure to meet the CPE requirement will result in loss of membership in the WICPA, unless the requirement is waived under section IV.

II.  Basic Requirements

A. Members in Public Practice - During each three-year calendar reporting period, members must complete 120 hours of acceptable continuing education with a minimum of 20 hours each year.

B. Members Not in Public Practice - During each three-year calendar reporting period, members must complete 90 hours of acceptable continuing education with a minimum of 15 hours each year. (* Note: The requirement for members in industry has been changed to 120 hours for membership in the AICPA. However, WICPA has not changed their requirements at this time.)

C. Retired Members - Retired members are exempt from the CPE requirements

D. New Members - New members joining the WICPA have no requirement during the calendar year in which they join. New members will be required to meet the minimum CPE requirement for each year(s) left in the three-year block. Members must then meet the full CPE requirement of the next three-year block.

E. Reinstatement - Individuals applying for reinstatement who have voluntarily or involuntarily lost their membership or have come out of retirement are required to complete the annual minimum requirement of CPE, (20 credits if in public accounting, 15 credits if not in public accounting) and then complete those same minimums for each of the remaining years in the three year reporting cycle.

F. Changing Status - Members changing from or to public practice do not begin a new three-year reporting period. However, the CPE requirement shall be adjusted to the following three-year totals:

Year of Change

1

2

3

To Public Practice

120

110

100

From Public Practice

100

110

120

G. Grace Period - Any member who has not completed the required number of hours during a reporting period will be allowed the two months immediately following the period to make up the deficiency. Hours credited toward a deficiency during this two-month period may not be counted toward the annual minimum requirement of the education year in which they are taken. Furthermore, any continuing professional education hours claimed during the two-month period to make up any deficiency for the preceding three-year period may not be counted toward the requirement for the three-year reporting period in which they are taken.

H. Reporting - Each member, except those in retirement, must keep records of their continuing professional education hours earned. The WICPA Professional Conduct Committee will verify compliance with CPE requirements by conducting audits of the records of randomly selected members. To be prepared for an audit, you should maintain detailed supporting records for all your CPE credits. You should also make sure you have met all CPE requirements for both the individual year and the three-year period.

I.    Documentation and Records Retention - Members of the WICPA bear the responsibility of documenting their compliance with the CPE requirements. They should retain evidence of satisfactory completion for a period of five years after the completion of the educational programs. For each CPE program completed, members should be able to document the following:

Sponsor

Title and description of content

Date(s) of programs

Location

Number of CPE contact hour

Evidence of attendance, such as materials, canceled check, or certificate of attendance.

III. Qualifying Programs

To qualify for CPE credit, a program must be a “formal” program of learning as described in the AICPA’s “Statement on Standards for Continuing Professional Education (CPE) Programs http://ftp.aicpa.org/public/download/cpe/cpestandards.pdf Those standards are included as part of these policies. Following is a summary of the relevant sections of those standards:

Members have wide latitude in selecting continuing professional education suitable to their professional activities. The underlying principle is that all programs should contribute to a member’s professional competence. It includes, but is not restricted to, accounting, auditing, taxation, and advisory services. Accordingly, programs contributing to the development and maintenance of other professional skills also are recognized as acceptable CPE programs. Such programs might include, but not be restricted to, the areas of communication, ethics, quantitative methods, behavioral sciences, statistics, and management. Members have the option of selecting programs that relate to their specific jobs. For example, a member in industry who is engaged in marketing activities may fulfill the requirement by completing continuing education in marketing.

Members may participate in CPE programs sponsored by a wide variety of organizations, but not limited to, the WICPA, the AICPA, other state CPA societies, other professional associations, colleges and universities, and their own firms. Service as an instructor at a CPE program may qualify when it increases the instructor’s professional competence.

CPE credit should be measured in whole hours and claimed only for the time a group study program is actually attended. (CPE credit is measured in 50-minute “contact hours.”) CPE credit for Self-study programs is recommended by the sponsor and must be documented by a certificate or other evidence of completion.

Ultimately, the CPE credit claimed is the responsibility of the individual member. Each member must only claim credit for the formal programs of learning he or she actually completed that increased his or her professional competence.

For more detailed information about qualifying programs, go to http://ftp.aicpa.org/public/download/cpe/cpestandards.pdf for the Statement on Standards or contact the CPE Department at 262-785-0445 or 800-772-6939.

Beginning January 1, 2002 a new means of acquiring CPE has been added. It is called Independent Study. Following is a description of that program taken from the new Statement on Standards for Continuing Professional Education (CPE) Program from the AICPA. (If you have any questions please access the new standards at http://ftp.aicpa.org/public/download/cpe/cpestandards.pdf or call the state society CPE department at 262-785- 0445)

14. Standard No. 5. CPAs may engage in independent study under the direction of a CPE program sponsor who has met the applicable standards for CPE program sponsors when the subject matter and level of study maintain or improve their professional competence.

15. Commentary. Independent study is an educational process designed to permit a participant to learn a given subject under the guidance of a CPE program sponsor one-on-one. Participants in an independent study program should:

Enter into a written learning contract with a CPE program sponsor who must comply with the applicable standards for CPE program sponsors.

Accept the written recommendation of the CPE program sponsor as to the number of credits to be earned upon successful completion of the proposed learning activities. CPE credits will be awarded only if:

1. All the requirements of the independent study as outlined in the learning contract are met,

2. The CPE program sponsor reviews and signs the participant's report,

3. The CPE program sponsor reports to the participant the actual credits earned, and

4. The CPE program sponsor provides the participant with contact information.

The credits to be recommended by an independent study CPE program sponsor should be agreed upon in advance and should be equated to the effort expended to improve professional competence.

The credits cannot exceed the time devoted to the learning activities and may be less than the actual time involved.

Retain the necessary documentation to satisfy regulatory requirements as to the content, inputs, and outcomes of the independent study.

Complete the program of independent study in 15 weeks or less.

IV. Exceptions

A. General - Members may request a waiver if they are prohibited from fulfilling the CPE requirements for the reasons set forth below. Such requests must be submitted in writing to the CPE Department of the WICPA. The year your waiver is granted, you are exempt from one-third of your requirement. The following calendar year you must complete the remaining two-thirds of the requirement, based on accounting or industry requirements.

      1. Foreign Residency - The request should include the country of residence, the name of the employer, your principal duties and responsibilities, and the reasons foreign residency prohibits fulfilling the CPE requirement.

      2. Health - The request should include the nature of the illness, the name and address of the attending physician, and the reason the illness prohibits fulfilling the CPE requirement.

      3. Military Service - The request should include the principal duties performed, where stationed, the name and address of the member’s commanding officer and the reason military service prohibits fulfilling the CPE requirement.

Other Similar Reasons - The request should include the nature of the hardship and the reason why it prohibits fulfilling the CPE requirement.