New law adds requirements for CPAs who practice in New York

Certified public accountants who practice in New York — even if they are licensed in other states — will have to register with the New York State Education Department Office of the Professions when a new law goes into effect July 26. CPAs from other states who perform attestation services in New York on a temporary basis will need to apply to the state for a temporary practice permit, which would be valid for six months during a 12-month period and may be renewed up to three times, according to an announcement from the New York State Society of Certified Public Accountants, which is based in New York. Previously, the state labeled the public accountancy practice as audit work, including attestation — a consulting service in which CPAs make conclusions on the reliability of a statement written by someone else — and compilations services. Now the law will widen that definition to include CPAs who perform accounting, management and financial advisory services. CPAs who practice in New York and don’t comply with the requirements could face unprofessional-conduct charges and investigation by the state Education Department’s professional-discipline office. All public accounting firms in New York will also be required to register with the state if a firm performs attestation or compilation services, regardless of the firm’s structure.