225 ILCS 450/ Illinois Public Accounting Act. - Illinois Statutes

(225 ILCS 450/0.01) (from Ch. 111, par. 5500.01)     (Section scheduled to be repealed on January 1, 2014)     Sec. 0.01. This Act shall be known and may be cited as the "Illinois Public Accounting Act". (Source: P.A. 85‑1209.)

(225 ILCS 450/0.02) (from Ch. 111, par. 5500.02)     (Section scheduled to be repealed on January 1, 2014)     Sec. 0.02. It is the policy of this State and the purpose of this Act:     (a) To promote the dependability of information which is used for guidance in financial transactions or for accounting for or assessing the status or performance of commercial and noncommercial enterprises, whether public, private, or governmental; and     (b) To protect the public interest by requiring that persons engaged in the practice of public accounting be qualified; that a public authority competent to prescribe and assess the qualifications of public accountants be established; and that     (c) Preparing, auditing or examining financial statements and issuing a report expressing or disclaiming an opinion on such statements or expressing assurance on such statements be reserved to persons who demonstrate their ability and fitness to observe and apply the standards of the accounting profession; and that the use of accounting titles likely to confuse the public be prohibited. (Source: P.A. 85‑1209.)

    (225 ILCS 450/0.03)(from Ch. 111, par. 5500.03)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 0.03. Definitions. As used in this Act, unless the context otherwise requires:
    (a) "Registered Certified Public Accountant" means any person who has been issued a registration under this Act as a Registered Certified Public Accountant.
    (b) "Licensed Certified Public Accountant" means any person licensed under this Act as a Licensed Certified Public Accountant.
    (c) "Committee" means the Public Accountant Registration Committee appointed by the Director.
    (d) "Department" means the Department of Professional Regulation.
    (e) "Director" means the Director of Professional Regulation.
    (f) "License", "licensee" and "licensure" refers to the authorization to practice under the provisions of this Act.
    (g) "Peer review program" means a study, appraisal, or review of one or more aspects of the professional work of a firm or sole practitioner in the practice of public accounting to determine the degree of compliance by the firm or sole practitioner with professional standards and practices, conducted by persons who hold current licenses to practice public accounting under the laws of this or another state and who are not affiliated with the firm or sole practitioner being reviewed.
    (h) "Review committee" means any person or persons conducting, reviewing, administering, or supervising a peer review program.
    (i) "University" means the University of Illinois.
    (j) "Board" means the Board of Examiners established under Section 2.
    (k) "Registration", "registrant", and "registered" refer to the authorization to hold oneself out as or use the title "Registered Certified Public Accountant" or "Certified Public Accountant", unless the context otherwise requires.
    (l) "Peer Review Administrator" means an organization designated by the Department that meets the requirements of subsection (f) of Section 16 of this Act and other rules that the Department may adopt.
(Source: P.A. 93‑683, eff. 7‑2‑04; 94‑779, eff. 5‑19‑06.)

    (225 ILCS 450/1)(from Ch. 111, par. 5501)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 1. No person shall hold himself or herself out to the public in this State in any manner by using the title "Certified Public Accountant" or use the abbreviation "C.P.A." or "CPA" or any words or letters to indicate that the person using the same is a certified public accountant, unless he or she has been issued a license or registration by the Department under this Act or is exercising the practice privilege afforded under Section 5.2 of this Act.
(Source: P.A. 95‑386, eff. 1‑1‑08.)

    (225 ILCS 450/2)(from Ch. 111, par. 5502)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 2. Board of Examiners. The Governor shall appoint a Board of Examiners that shall determine the qualifications of persons applying for certificates and shall make rules for and conduct examinations for determining the qualifications.     The Board shall consist of 11 examiners, including 2 public members. The remainder shall be certified public accountants in this State who have been residents of this State for at least 5 years immediately preceding their appointment, except that one shall be either a certified public accountant of the grade herein described or an attorney licensed and residing in this State and one shall be a certified public accountant who is an active or retired educator residing in this State. The term of office of each examiner shall be 3 years, except that upon the enactment of this amendatory Act of the 93rd General Assembly, those members currently serving on the Board shall continue to serve the duration of their terms, one additional examiner shall be appointed for a term of one year, and one additional examiner for a term of 2 years. As the term of each examiner expires, the appointment shall be filled for a term of 3 years from the date of expiration. Any Board member who has served as a member for 6 consecutive years shall not be eligible for reappointment until 2 years after the end of the term in which the sixth consecutive year of service occurred, except that members of the Board serving on the effective date of this Section shall be eligible for appointment to one additional 3‑year term. Where the expiration of any member's term shall result in less than 11 members then serving on the Board, the member shall continue to serve until his or her successor is appointed and has qualified. No Board member shall serve more than 2 full terms. Anyone appointed to the Board shall be ineligible to be appointed to the Illinois Public Accountants Registration Committee appointed by the Director. Appointments to fill vacancies shall be made in the same manner as original appointments for the unexpired portion of the vacated term. The membership of the Board shall reasonably reflect representation from the geographic areas in this State. The members of the Board appointed by the Governor shall receive reasonable compensation for their necessary, legitimate, and authorized expenses in accordance with the Governor's Travel Control Board rules and the Travel Regulation Rules. The Governor may terminate the term of any member of the Board at any time for cause.
    Information regarding educational requirements, the application process, the examination, and fees shall be available on the Board's Internet web site as well as in printed documents available from the Board's office.
    The Board shall adopt all necessary and reasonable rules and regulations for the effective administration of this Act. Without limiting the foregoing, the Board shall adopt and prescribe rules and regulations for a fair and impartial method of determining the qualifications of applicants for examination and for a fair and impartial method of examination of persons under Section 2 and may establish rules for subjects conditioned and for the transfer of credits from other jurisdictions with respect to subjects passed.
     The Board shall make an annual report of its activities to the Governor and the Director. This report shall include a complete operating and financial statement covering its operations during the year, the number of examinations given, the pass/fail ratio for examinations, and any other information deemed appropriate. The Board shall have an audit of its books and accounts every 2 years by the Auditor General.
(Source: P.A. 92‑457, eff. 7‑1‑04; 93‑629, eff. 12‑23‑03; 93‑683, eff. 7‑2‑04.)

    (225 ILCS 450/2.05)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 2.05. Public Accountant Registration Committee. The Director shall appoint a Public Accountant Registration Committee consisting of 7 persons, who shall be appointed by and shall serve in an advisory capacity to the Director. Six members must be licensed public accountants or Licensed Certified Public Accountants in good standing and must be actively engaged in the practice of public accounting in this State and one member must be a member of the public who is not licensed under this Act or a similar Act of another jurisdiction and who has no connection with the accounting or public accounting profession. Members shall serve 4‑year terms and until their successors are appointed and qualified. No member shall be reappointed to the Committee for more than 2 terms. Appointments to fill vacancies shall be made in the same manner as original appointments for the unexpired portion of the vacated term. The membership of the Committee shall reasonably reflect representation from the geographic areas in this State. The members of the Committee appointed by the Director shall receive reasonable compensation, as determined by the Department, for the necessary, legitimate, and authorized expenses approved by the Department. All expenses shall be paid from the Registered Certified Public Accountants' Administration and Disciplinary Fund. The Director may terminate the appointment of any member for cause. The Director shall consider the advice and recommendations of the Committee on questions involving standards of professional conduct, discipline, and qualifications of candidates and licensees under this Act.
(Source: P.A. 93‑683, eff. 7‑2‑04.)

(225 ILCS 450/2.1) (from Ch. 111, par. 5503)     (Section scheduled to be repealed on January 1, 2014)     Sec. 2.1. Administrative Procedure Act. The Illinois Administrative Procedure Act is hereby expressly adopted and incorporated herein as if all of the provisions of that Act were included in this Act, except that the provision of subsection (d) of Section 10‑65 of the Illinois Administrative Procedure Act that provides that at hearings the licensee has the right to show compliance with all lawful requirements for retention, continuation or renewal of the license is specifically excluded. For the purposes of this Act the notice required under Section 10‑25 of the Administrative Procedure Act is deemed sufficient when mailed to the last known address of a party. (Source: P.A. 88‑45.)

    (225 ILCS 450/3)(from Ch. 111, par. 5504)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 3. Qualifications of applicants. To be admitted to take the examination after the year 2000, for the purpose of determining the qualifications of applicants for certificates as certified public accountants under this Act, the applicants shall be required to present proof of the successful completion of 150 college or university semester hours of study or their quarter‑hour or other academic credit unit equivalent, to include a baccalaureate or higher degree conferred by a college or university acceptable to the Board, the total educational program to include an accounting concentration or equivalent as determined by Board rule. In adopting those rules, the Board shall consider, among other things, any impediments to the interstate practice of public accounting that may result from differences in the requirements in other states.
    Candidates who have taken the examination at least once before January 1, 2001, may take the examination under the qualifications in effect when they first took the examination.
(Source: P.A. 92‑457, eff. 7‑1‑04; 93‑683, eff. 7‑2‑04.)

    (225 ILCS 450/4)(from Ch. 111, par. 5505)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 4. Transitional language.
    (a) The provisions of this Act shall not be construed to invalidate any certificates as certified public accountants issued by the University under "An Act to regulate the profession of public accountants", approved May 15, 1903, as amended, or any certificates as Certified Public Accountants issued by the University or the Board under Section 4 of "An Act to regulate the practice of public accounting and to repeal certain acts therein named", approved July 22, 1943, as amended, which certificates shall be valid and in force as though issued under the provisions of this Act.
    (b) Before July 1, 2012, persons who have received a Certified Public Accountant (CPA) Certificate issued by the Board of Examiners or holding similar certifications from other jurisdictions with equivalent educational requirements and examination standards may apply to the Department on forms supplied by the Department for and may be granted a registration as a Registered Certified Public Accountant from the Department upon payment of the required fee.
    (c) Beginning with the 2006 renewal, the Department shall cease to issue a license as a Public Accountant. Any person holding a valid license as a Public Accountant prior to September 30, 2006 who meets the conditions for renewal of a license under this Act, shall be issued a license as a Licensed Certified Public Accountant under this Act and shall be subject to continued regulation by the Department under this Act. The Department may adopt rules to implement this Section.
    (d) The Department shall not issue any new registrations as a Registered Certified Public Accountant after July 1, 2012. After that date, any applicant for licensure under this Act shall apply for a license as a Licensed Certified Public Accountant and shall meet the requirements set forth in this Act. Any person issued a Certified Public Accountant certificate who has been issued a registration as a Registered Certified Public Accountant may renew the registration under the provisions of this Act and that person may continue to renew or restore the registration during his or her lifetime, subject only to the renewal or restoration requirements for the registration under this Act. Such registration shall be subject to the disciplinary provisions of this Act.
    (e) On and after October 1, 2006, no person shall hold himself or herself out to the public in this State in any manner by using the title "certified public accountant" or use the abbreviation "C.P.A." or "CPA" or any words or letters to indicate that the person using the same is a certified public accountant unless he or she maintains a current registration or license issued by the Department or is exercising the practice privilege afforded under Section 5.2 of this Act. It shall be a violation of this Act for an individual to assume or use the title "certified public accountant" or use the abbreviation "C.P.A." or "CPA" or any words or letters to indicate that the person using the same is a certified public accountant in this State unless he or she maintains a current registration or license issued by the Department or is exercising the practice privilege afforded under Section 5.2 of this Act.
(Source: P.A. 95‑386, eff. 1‑1‑08; 96‑945, eff. 6‑25‑10.)

    (225 ILCS 450/5)(from Ch. 111, par. 5506)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 5. Certification of out‑of‑State accountants.
    (a) Upon review of an applicant's educational and examination credentials by the Board of Examiners, the Department may issue a registration as a registered certified public accountant, without examination, to any applicant who holds a valid unrevoked certificate as a certified public accountant issued under the laws of any other state or territory of the United States or the District of Columbia, provided:
        (1) that the state that issued the certificate has

certification requirements that have been determined by the Board to be substantially equivalent to the certification requirements of Illinois and grants similar rights to those that Illinois grants to certificate holders;

(2) that the state that issued the certificate has

certification requirements that the Board has determined not to be substantially equivalent to the certification requirements of Illinois or does not grant similar rights to Illinois certificate holders, but the Board determines that the individual applicant possesses personal qualifications substantially equivalent to Illinois' certification requirements; or

(3) that the applicant does not qualify under

subsections (1) or (2) above, but the following conditions are met:

(A) the certificate was granted to the applicant

on the basis of the Uniform Certified Public Accountant examination; and

(B) the educational qualifications of the

applicant for a certificate, at the time of the written examination, were equivalent to the educational qualifications then required of applicants for admission to the Illinois examination for certified public accountant or, the applicant has, after passing the examination upon which his or her certificate was based, not less than 5 years of experience in the practice of public accounting within the 10 years immediately preceding this application, otherwise reasonably considered acceptable by the Board.

(b) In determining the substantial equivalency of the requirements for certification or the rights granted to certificate holders pursuant to this Section, the Department may rely on the determinations of the National Qualification Appraisal Service of the National Association of State Boards of Accountancy or any other qualification appraisal service, as it deems appropriate. (Source: P.A. 93‑683, eff. 7‑2‑04.)

    (225 ILCS 450/5.1)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 5.1. Foreign accountants. The Board shall issue a certificate to a holder of a foreign designation, granted in a foreign country entitling the holder thereof to engage in the practice of public accounting, provided:
        (a) The foreign authority that granted the

designation makes similar provision to allow a person who holds a valid certificate issued by this State to obtain the foreign authority's comparable designation; and

(b) The foreign designation (i) was duly issued by a

foreign authority that regulates the practice of public accounting and the foreign designation has not expired or been revoked or suspended; and (ii) was issued upon the basis of educational and examination requirements established by the foreign authority or by law; and

(c) The applicant (i) received the designation based

on educational and examination standards substantially equivalent to those in effect in this State at the time the foreign designation was granted; and (ii) passed a uniform qualifying examination in national standards and an examination on the laws, regulations, and code of ethical conduct in effect in this State acceptable to the Board.

(Source: P.A. 93‑683, eff. 7‑2‑04.)

    (225 ILCS 450/5.2)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 5.2. Substantial equivalency.
    (a) An individual whose principal place of business is not in this State shall have all the privileges of a person licensed under this Act as a licensed certified public accountant without the need to obtain a license or registration from the Department or to file notice with the Department, if the individual:
        (1) holds a valid license as a certified public

accountant issued by another state that the National Qualification Appraisal Service of the National Association of State Boards of Accountancy has verified to be in substantial equivalence with the CPA licensure requirements of the Uniform Accountancy Act of the American Institute of Certified Public Accountants and the National Association of State Boards of Accountancy; or

(2) holds a valid license as a certified public

accountant issued by another state and obtains from the National Qualification Appraisal Service of the National Association of State Boards of Accountancy verification that the individual's CPA qualifications are substantially equivalent to the CPA licensure requirements of the Uniform Accountancy Act of the American Institute of Certified Public Accountants and the National Association of State Boards of Accountancy; however, any individual who has passed the Uniform CPA Examination and holds a valid license issued by any other state prior to January 1, 2012 shall be exempt from the education requirements of Section 3 of this Act for the purposes of this item (2).

(b) Notwithstanding any other provision of law, an individual who offers or renders professional services under this Section, whether in person or by mail, telephone, or electronic means, shall be granted practice privileges in this State and no notice or other submission must be provided by any such individual.     (c) An individual licensee of another state who is exercising the privilege afforded under this Section and the CPA firm that employs such individual, if any, as a condition of the grant of this privilege, hereby simultaneously consents:         (1) to the personal and subject matter jurisdiction

and disciplinary authority of the Department;

(2) to comply with this Act and the Department's

rules adopted under this Act;

(3) that in the event that the license from the state

of the individual's principal place of business is no longer valid, the individual shall cease offering or rendering professional services in this State individually or on behalf of a CPA firm; and

(4) to the appointment of the state board that issued

the individual's or the CPA firm's license as the agent upon which process may be served in any action or proceeding by the Department against the individual.

(d) An individual licensee who qualifies for practice

privileges under this Section who, for any entity headquartered in this State, performs (i) a financial statement audit or other engagement in accordance with Statements on Auditing Standards; (ii) an examination of prospective financial information in accordance with Statements on Standards for Attestation Engagements; or (iii) an engagement in accordance with Public Company Accounting Oversight Board Auditing Standards may only do so through a firm licensed under this Act.

(Source: P.A. 95‑386, eff. 1‑1‑08.)

    (225 ILCS 450/6)(from Ch. 111, par. 5507)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 6. Fees; pay of examiners; expenses. The Board shall charge a fee in an amount at least sufficient to defray the costs and expenses incident to the examination and issuance of a certificate provided for in Section 6.1 and for the issuance of a certificate provided for in Section 5. This fee shall be payable by the applicant at the time of filing an application.
(Source: P.A. 92‑457, eff. 7‑1‑04; 93‑683, eff. 7‑2‑04.)

    (225 ILCS 450/6.1)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 6.1. Examinations.
    (a) The examination shall test the applicant's knowledge of accounting, auditing, and other related subjects, if any, as the Board may deem advisable. A candidate shall be required to pass all sections of the examination in order to qualify for a certificate. A candidate may take the required test sections individually and in any order, as long as the examination is taken within a timeframe established by Board rule.
    (b) On and after January 1, 2005, applicants shall also be required to pass an examination on the rules of professional conduct, as determined by Board rule to be appropriate, before they may be awarded a certificate as a Certified Public Accountant.
    (c) Pursuant to compliance with the Americans with Disabilities Act, the Board may provide alternative test administration arrangements that are reasonable in the context of the Certified Public Accountant examination for applicants who are unable to take the examination under standard conditions upon an applicant's submission of evidence as the Board may require, which may include a signed statement from a medical or other licensed medical professional, identifying the applicant's disabilities and the specific alternative accommodations the applicant may need. Any alteration in test administration arrangements does not waive the requirement of sitting for and passing the examination.
    (d) Any application, document, or other information filed by or concerning an applicant and any examination grades of an applicant shall be deemed confidential and shall not be disclosed to anyone without the prior written permission of the applicant, except that the names and addresses only of all applicants shall be a public record and be released as public information. Nothing in this subsection shall prevent the Board from making public announcement of the names of persons receiving certificates under this Act.
(Source: P.A. 93‑683, eff. 7‑2‑04; 94‑779, eff. 5‑19‑06.)

    (225 ILCS 450/7)(from Ch. 111, par. 5508)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 7. Licensure. A holder of a certificate or registration as a certified public accountant issued by the Board or Department shall not be entitled to practice public accounting, as defined in Section 8, in this State until the person has been licensed as a licensed certified public accountant by the Department.
    The Department may refuse to issue or may suspend the license of any person who fails to file a return, or to pay the tax, penalty or interest shown in a filed return, or to pay any final assessment of tax, penalty or interest, as required by any tax Act administered by the Illinois Department of Revenue, until such time as the requirements of any such tax Act are satisfied.
(Source: P.A. 92‑457, eff. 7‑1‑04; 93‑683, eff. 7‑2‑04.)

    (225 ILCS 450/8)(from Ch. 111, par. 5509)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 8. Practicing as a licensed public accountant or licensed certified public accountant. Persons, either individually, as members of a partnership or limited liability company, or as officers of a corporation, who sign, affix or associate their names or any trade or assumed names used by them in a profession or business to any report expressing or disclaiming an opinion on a financial statement based on an audit or examination of that statement, or expressing assurance on a financial statement, shall be deemed to be in practice as licensed public accountants or licensed certified public accountants within the meaning and intent of this Act.
(Source: P.A. 92‑457, eff. 7‑1‑04; 93‑683, eff. 7‑2‑04.)

    (225 ILCS 450/9)(from Ch. 111, par. 5510)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 9. Unlicensed practice.
    No person shall practice in this State or hold himself or herself out as being able to practice in this State as a licensed certified public accountant, unless he or she is licensed in accordance with the provisions of this Act or is exercising the practice privilege afforded under Section 5.2 of this Act. Any person who is the holder of a license as a public accountant heretofore issued, under any prior Act licensing or registering public accountants in this State, valid on the effective date of this amendatory Act shall be deemed to be licensed under this Act shall be subject to the same rights and obligations as persons originally licensed under this Act.
(Source: P.A. 95‑386, eff. 1‑1‑08.)

    (225 ILCS 450/9.01)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 9.01. Unlicensed practice; violation; civil penalty.
    (a) Any person or firm that practices, offers to practice, attempts to practice, or holds oneself out to practice as a licensed certified public accountant in this State without being licensed under this Act or qualifying for the practice privilege set forth in Section 5.2 of this Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department in an amount not to exceed $5,000 for each offense as determined by the Department. The civil penalty shall be assessed by the Department after a hearing is held in accordance with the provisions set forth in this Act regarding the provision of a hearing for the discipline of a licensee.
    (b) The Department has the authority and power to investigate any and all unlicensed activity.
    (c) The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty. The order shall constitute a judgment and may be filed and execution had thereon in the same manner as any judgment from any court of record.
(Source: P.A. 94‑779, eff. 5‑19‑06; 95‑386, eff. 1‑1‑08.)

    (225 ILCS 450/9.02)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 9.02. Unauthorized use of title; violation; civil penalty.
    (a) Any person who holds himself or herself out to the public as a certified public accountant in this State by using the title "certified public accountant" or the abbreviation "CPA" or any words or letters to indicate that the person using the same is a certified public accountant without having been issued a registration or a license as a certified public accountant under the provisions of this Act or without qualifying for the practice privilege under Section 5.2 of this Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department in an amount not to exceed $5,000 for each offense as determined by the Department. The civil penalty shall be assessed by the Department after a hearing is held in accordance with the provisions set forth in this Act regarding the provision of a hearing for the discipline of a licensee.
    (b) The Department has the authority and power to investigate any and all alleged improper use of the certified public accountant title or CPA designation.
    (c) The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty. The order shall constitute a judgment and may be filed and execution had thereon in the same manner as any judgment from any court of record.
(Source: P.A. 95‑386, eff. 1‑1‑08.)

    (225 ILCS 450/9.1)
    Sec. 9.1. (Repealed).
(Source: P.A. 93‑683, eff. 7‑2‑04. Repealed by P.A. 95‑386, eff. 1‑1‑08.)

    (225 ILCS 450/9.2)(from Ch. 111, par. 5510.2)
    (Section scheduled to be repealed on January 1, 2014)
    Sec. 9.2. Powers and duties of the Department.
    (a) The Department shall exercise the powers and duties prescribed by "The Civil Administrative Code of Illinois" for the administration of licensing acts and shall exercise such other powers and duties invested by this Act.
    (b) The Director may promulgate rules consistent with the provisions of this Act for the administration and enforcement of the provisions of this Act for which the Department is responsible and for the payment of fees connected therewith and may prescribe forms which shall be issued in connection therewith. The rules shall include standards and criteria for licensure and professional conduct and discipline.
    (c) The Department may solicit the advice and expert knowledge of th

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