DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
DIRECTOR'S OFFICE
ACCOUNTANCY – GENERAL RULES
Filed with the secretary of state on
These rules become effective immediately after filing with the secretary of state unless adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections become effective 7 days after filing with the secretary of state.
(By authority conferred on the department of licensing and regulatory affairs by sections 205, 308, 721, 725, 726, 728, and 729 of the occupational code, 1980 PA 299, MCL 339.205, 339.308, 339.721, 339.725, 339.726, 339.728, and 339.729, and Executive Reorganization Order Nos. 1991-9, 1996-2, 2003-1, 2008-4, and 2011-4, MCL 338.3501, 445.2001, 445.2011, 445.2025, and 445.2030)
R 338.5102, R 338.5115, and R 338.5116 of the Michigan Administrative Code are amended, as follows: PART 1. GENERAL PROVISIONS
R 338.5102 Standards of professional practice adopted by reference.
Rule 102. (1) The following standards are approved and adopted by reference:
(a) The standards issued by the American Institute of
CPAs (AICPA), 220 Leigh Farm Road, Durham, North Carolina, 27707, in the
publication titled “AICPA Professional Standards” updated June 15, 2022,
2024, and any statements issued as of the effective date of this rule,
which are available at a cost of $289.00 $335.00 from the
institute’s website at https://www.aicpa.org/cpe-learning/publication or
at no cost from the institute’s website at https://us.aicpa.org/research/standards.
https://www.aicpa-cima.com/resources/landing/standards-and-statements.
(b) The standards issued by the Public Company Accounting
Oversight Board (PCAOB), 1666 K Street NW, Suite 300, Washington, D.C.District
of Columbia, 20006, in the publication titled “PCAOB Standards and Related
Rules” 2022 2025 edition, and any updates issued as of the
effective date of this rule, which are available at a cost of $255.00 $235.00
from the AICPA’s website at https://www.aicpa.org/cpe-learning/publication
or at no cost from the AICPA’s website at https://pcaobus.org/oversight/standards.
(c) The auditing standards issued by the Government
Accountability Office, 441 G Street, NW, Washington, D.C.District of
Columbia, 20548, in the publication titled “Government Auditing Standards”
2018 Revision Technical Update April 2021, which are available at no cost on
the Office’s website at https://gaoinnovations.gov/yellowbook/.
(d) The standards issued by the International Auditing
and Assurance Standards Board (IAASB), 529 5th Avenue, New York, New
York, 10017, in the publication titled “2021 2023-2024 Handbook
of International Quality Control, Management, Auditing, Review,
Other Assurance, and Related Services Pronouncements” issued on December 2,
2022, August 29, 2024, and any related pronouncements issued as of
the effective date of this rule, which are available at no cost from the
IAASB's website at https://www.iaasb.org/standards-pronouncements.
(e) The accounting standards issued by the Financial Accounting Standards Board
(FASB), 801 Main Avenue, P.O. Box 5116, Norwalk,
Connecticut, 06856, in the publication titled “FASB Accounting Standards
Codification” as of December 2022, November 2024, and any updates
published as of the effective date of this rule, which are available at no cost
from the board’s website at https://asc.fasb.org.
(f) The accounting standards issued by the Governmental Accounting Standards Board
(GASB), 801 Main Avenue, P.O. Box 5116, Norwalk,
Connecticut, 06856, in the publication titled “GASB Codification” as of December
31, 2021, June 30, 2024, and any pronouncements published as of the
effective date of this rule, which are available at no cost from the board’s
website at https://gars.gasb.org/.
(g) The accounting standards issued by the International Accounting Standards Board,
30 Cannon Street, Columbus Building, 7 Westferry
Circus, Canary Wharf, London EC4M 6XH, E14 4HD, United
Kingdom, in the publication titled “2022 2024 International
Financial Reporting Standards IFRS®” issued on January 1, 2022, 2024,
and any pronouncements issued as of the effective date of this rule, which
are available at a cost of Ł81.00 Ł99.00
from the board’s website at http://www.ifrs.org.
(h) The United States Securities and Exchange Commission
(SEC) rules contained in 17 CFR chapter 2 and the SEC’s Interpretative Releases
and Policy Statements issued as of the effective date of this rule. The SEC
rules may be obtained free of charge at http://www.ecfr.gov. https://www.ecfr.gov/.
The SEC’s Interpretative Releases and Policy Statements may be obtained free of
charge at https://www.sec.gov.
(2) Copies of the standards adopted in this rule are
available for inspection and distribution at the cost of 10 25 cents
per page from the Department of Licensing and Regulatory Affairs, Bureau of
Professional Licensing, 611 W. Ottawa Street, P.O. Box 30670, Lansing,
Michigan, 48909.
(3) A licensee shall satisfy the applicable standards adopted in subrule (1) of this rule.
PART 2. LICENSURE REQUIREMENTS
R 338.5115 Educational requirements for the uniform CPA exam; approved educational
institutions; adoption of accreditation standards by reference.
(a) Completion of a curriculum required for a baccalaureate degree consisting of not less than 120 semester hours at a higher education institution approved under subrule (3) or (4) of this rule or considered substantially equivalent under subrule (5) of this rule.
(b) Completion of a concentration in accounting at a
higher education institution approved under subrule (3) or (4) of this rule or
considered substantially equivalent under subrule (5) of this rule, which
includes both the accounting and general business requirements
under subrule (2) of this rule.
(2) A concentration in accounting
must include both the following accounting
and general business requirements: not less than 24 semester hours of
accounting courses in all the following accounting content areas:
(a) Not less than 24 semester hours of accounting
courses in all the following accounting content areas: Accounting
information systems.
(b) Auditing and attestation services.
(c) Cost or managerial accounting.
(d) Financial accounting and reporting.
(e) Governmental or fund accounting.
(f) Taxation.
(i) Accounting information
systems.
(ii) Auditing and attestation services.
(iii) Cost or managerial accounting.
(iv) Financial accounting and reporting.
(v) Governmental or fund accounting.
(vi) Taxation.
(b) Not less than 24 semester hours of general
business courses, other than accounting, which may include any of the
following general business content areas:
(i) Business communications.
(ii) Business ethics.
(iii) Business law.
(iv) Economics.
(v) Finance.
(vi) Management.
(vii) Marketing.
(viii) Information systems or technology.
(ix) Quantitative methods.
(x) Statistics.
(xi) Other general business content areas approved by
the department.
(3) The standards for recognition of accrediting organizations developed and adopted by the Council for Higher Education Accreditation (CHEA), One Dupont Circle NW, Suite 510, Washington, D.C. 20036, in the publication titled “CHEA Standards and Procedures for Recognition,” effective October 4, 2021, which are available at no cost on the council’s website at https://www.chea.org, are approved and adopted by reference. If a higher education institution is accredited by the accrediting body of the region in which the institution is located and the accrediting body satisfies the recognition standards of CHEA, then the institution is approved.
(4) The criteria for recognition and the recognition
process for the secretary’s recognition of accrediting agencies of the United
States Department of Education, Office of Postsecondary Education, 400
Maryland Avenue SW, Washington, D.C. 20202, in 34 CFR 602.10 to 602.39,
effective July 1, 2020, which are available at no cost on the department’s
United States Department of Education’s website at https://www2.ed.gov/about/offices/list/ope/index.html,
https://www.ed.gov/, are approved and adopted by reference. If a
higher education institution is accredited by the accrediting body of the
region in which the institution is located and the accrediting body satisfies
the recognition criteria and process of the United States Department of
Education, then the institution is approved.
(5) An individual who attended an unaccredited higher education institution shall establish that the applicant has completed educational requirements at a higher education institution that satisfies accreditation requirements substantially equivalent to those recognized in subrule (3) or (4) of this rule, by providing a credential evaluation completed by either the National Association of State Boards of Accountancy (NASBA) or a credential evaluation organization that is a current member of the National Association of Credential Evaluation Services (NACES).
(6) Copies of the standards and criteria approved and
adopted by reference in this rule are available for inspection and distribution
at a cost of 10 25 cents per page from the Board of Accountancy,
Department of Licensing and Regulatory Affairs, Bureau of Professional
Licensing, 611 W. Ottawa Street, P.O. Box 30670, Lansing, Michigan, 48909.
R 338.5116 Educational requirements for certificate of CPA.
Rule 116. (1) To satisfy section 725(1)(e) of the code, MCL 339.725, an individual shall provide proof, as directed by the department, verifying all the following requirements:
(a) Completion of not less than 150 semester hours at a higher education institution approved under R 338.5115(3) or (4) or considered substantially equivalent under R 338.5115(5).
(b) Completion of a baccalaureate degree or higher degree from a higher education institution approved under R 338.5115(3) or (4) or considered substantially equivalent under R 338.5115(5).
(c) Completion of a concentration in accounting under R
338.5115(1)(b) and (2) at a higher education institution approved under R
338.5113(3) R 338.5115(3) or (4) or considered substantially
equivalent under R 338.5115(5).