New Jersey State Board of Accountancy

CPAs Have More Reciprocity Than NJ Board of Accountancy Form Says

Posted: September 7, 2017
The Application for Certification by Endorsement form posted on the New Jersey State Board of Accountancy website erroneously states reciprocity information. While the State Board is aware of the error, the form has yet to be updated to show that NJ has reciprocity with all jurisdictions.

Meeting Highlights

The NJCPA regularly attends the monthly meetings of the New Jersey State Board of Accountancy. Below are highlights from the meetings:

  • July 19, 2018
    • The Board counsel said the new regulations that were passed by the Board last year to replace the sunsetting regulations have been referred to the Attorney General’s office for further review. After they are approved, the regulations still must go through a 60-day public comment period. The new regulations include important provisions such as nano learning and CPE reciprocity. It is uncertain how long the regulatory process will take. It could be anywhere from three months to a year or longer to finally become law.
    • Members of the NJCPA Cannabis Interest Group attended the meeting and asked the Board to develop a Statement of Position on Board policy for CPAs who provide services to parties involved in the cannabis industry. Most accountancy boards around the country have adopted such statements. Board members indicated strong support for developing a statement. However, Board counsel vehemently argued against it and they will be meeting in private session to discuss further.
  • April 19, 2018
    • At the New Jersey Board of Accountancy’s April 19 meeting, the Board reaffirmed its previous position that non-CPAs who offer services to the public, such as tax work or bookkeeping, cannot use the title “Accountant.” Non-CPAs who work in industry can use the title, but only for internal company purposes.
    • The Board also re-elected the current Board officers to a new one-year term that starts in May. These include Sara DeSmith, President; Harold Model, Vice President; and Ainsley Reynolds, Secretary.
  • February 15, 2018
    • The New Jersey State Board of Accountancy voted at its February 15 Board meeting to remove the prohibition on CPAs using laudatory testimonials in advertising. For example, a CPA firm can now post statements from clients noting their satisfaction with the firm’s services.
    • The Board also announced that if the proposed sunset regulations it passed in 2017 are not formally adopted by the April deadline, the current regulations will continue to be in effect until they are officially adopted.
    • In other news, the Board announced that it is removing its form for candidates seeking certification by endorsement from its website. This form is used by CPAs from other states seeking reciprocity. Instead, the website will direct candidates to call the Board for the form. 
  • January 18, 2018
    • At the Jan. 18 Board meeting, Daniel J. Dustin, vice president of state board relations for the National Association of State Boards of Accountancy (NASBA), provided an update on NASBA initiatives. These include the following:
      • There will be some changes to the CPA Exam. Excel spreadsheets will be added.
      • Twenty-two states now permit firm mobility, which means that an out-of-state CPA does not need to register with a state when he or she does attest work in that state. (The NJCPA is advocating for legislation that updates New Jersey’s Accountancy Act and includes provisions providing for firm mobility.)
      • The 8th edition of the Uniform Accountancy Act (UAA) will be issued shortly. The UAA, written by the AICPA and NASBA, is an "evergreen" model licensing law developed to provide a uniform approach to the regulation of the accounting profession throughout the country. The 8th edition will include new provisions addressing retired CPAs, a new international recognition pathway, and revised CPE standards and rules. The 8th edition of the UAA includes blended and nano CPE. Twelve states now permit both. New Jersey has a pending regulation to allow nano CPE, but not blended learning.
    • In other Board action, there was a discussion regarding whether CPA firms are allowed to include laudatory testimonials in their advertising. The Board concluded that board regulations prohibit CPAs from using laudatory testimonials when advertising. Advertising includes promoting the firm on the firm’s website and in social media.
  • October 19, 2017
    • The Board voted to simplify and revise the form that CPA instructors need to fill out in order to receive CPE credit for teaching courses. 

  • September 28, 2017
    • The Board voted to extend the date to June 30, 2018, for those CPA candidates who are scheduled to lose parts of their CPA exam at the end of Q2, Q3 and Q4 of the 2017 testing periods. The decision comes after the Board previously granted an extension to December 30, 2017. Delays in the release of the exam results occurred in Q2, Q3 and Q4 of 2017 stemming from changes in the exam last April. Normally, scores are released four times per testing timeframe, and credit for any test section passed is valid for 18 months from the date the applicant takes the test section.
    • The Board eliminated the requirement for CPAs engaged in public accounting who are seeking reciprocity to have completed at least six months in their home state during the prior five years.
    • Per New Jersey statute NJSA 45:1-7.5a.(1), the Board clarified that a CPA seeking reciprocity must be from a state where the licensure requirements at the time of licensure are substantially equivalent to the requirements in New Jersey now. For individuals who do not meet that criteria, the Board will look at the applicant’s experience, CPE history, etc., and make decisions on a case-by-case basis.
    • The Board discussed a memo by the NJCPA that proposed eliminating or simplifying the form that must be filed by CPAs seeking CPE credit for teaching. The Board will look into what other states are doing in this area and discuss at a future meeting.
    • The Board stated that the form on their website— Instructions For Candidates Seeking Certification By Endorsement— will be updated to reflect that all states are now substantially equivalent with New Jersey. Currently, the form incorrectly states that 14 states are not equivalent.

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