††††† 201 KAR 1:190. Computer-based examination sections, applications, and procedures.
††††† RELATES TO: KRS 325.270, 325.261(4)
††††† STATUTORY AUTHORITY: KRS 325.240, 325.270
††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 325.270 requires the board to conduct examinations for individuals seeking to become certified public accountants. 325.261(4) requires passage of an examination prior to a person becoming licensed as a certified public accountant and for the board to determine the subjects to be included on the examination. This administrative regulation establishes the subjects, also referred to as sections, to be included on the examination, the procedures, and fees associated with the administration of the examination.
††††† Section 1. Definitions. (1) "Accounting course" means a course that contains in the course prefix, or title, the word accounting or a substantially-equivalent word.
††††† (2) "AICPA" means the American Institute of Certified Public Accountants, the entity that prepared and graded the paper and pencil based Uniform CPA Examination and now prepares and grades the computer-based certified public accountant examination.
††††† (3) "Business-related subjects" means courses that contain in the course prefix or title an indication that the course subject matter is one (1) of the following: business, finance, marketing, management, economics, computers, statistics, or accounting.
††††† (4) "Conditional credit" means the procedure utilized by the board for the paper and pencil based licensure examination that allowed an exam candidate who received a passing score of seventy-five (75) or higher on two (2) or more of the sections of the examination and a grade of fifty (50) or higher on each section taken but not passed during the same examination to retain the passing scores earned only for the next six (6) examinations regardless of whether the candidate sat for the future examinations.
††††† (5) "Major or concentration in accounting" means a minimum of thirty-nine (39) semester hours in business-related subjects of which twenty-seven (27) semester hours shall consist of accounting subjects.
††††† (6) "NASBA" means the National Association of State Boards of Accountancy, which operates a nationwide computer data bank for candidates applying to sit for the computer-based certified public accountants examination.
††††† (7) "Official transcript" means an official record from a college or university that specifies the college course work completed, degrees awarded, the date the degree was awarded, and contains an authorizing signature or seal.
††††† (8) "Prometric or its successor" means the testing service in charge of administering the computer-based certified public accountants examination.
††††† (9) "Quarter hour" means 66/100ths of a semester hour.
††††† (10) "Testing window" means the two (2) months out of each three (3) month period during a calendar year when an exam candidate may sit for the computer-based certified public accountants examination.
††††† (11) "Uniform CPA Examination" means the paper and pencil based version of the licensure examination administered by the board prior to January 1, 2004.
††††† Section 2. Examination Sections. The board has adopted the computer-based certified public accountants examination prepared by the AICPA as the examination every candidate seeking to receive a license shall sit for and obtain a passing grade. The sections to be included on this examination shall be:
††††† (1) Auditing and attestation. This section replaces the auditing section on the paper and pencil-based examination;
††††† (2) Financial accounting and reporting;
††††† (3) Regulation. This section replaces the accounting and reporting section on the paper and pencil-based examination; and
††††† (4) Business environment and concepts. This section replaces the business law and professional responsibilities section on the paper and pencil-based examination.
††††† Section 3. Grading Procedures and Acquiring Credit for Obtaining a Passing Score. (1) An exam candidate shall receive a passing score on all sections of the examination to be eligible to receive a license.
††††† (2) The passing score shall be seventy-five (75) on each section. An exam candidate may retain a passing score on any section even though the candidate may have sat for and failed other sections of the examination at the same sitting.
††††† (3) Subject to the exception contained in subsection (4) of this section, an exam candidate may sit for one (1) or any number of the four (4) sections of the examination at a time during a testing window.
††††† (4) An exam candidate shall not sit more than once for the same section of the examination during a testing window.
††††† (5) Conditional credit received under the paper and pencil examination shall be transferred to the four (4) sections of the computer-based examination as follows:
††††† (a) Accounting and Reporting to Regulation;
††††† (b) Financial Accounting and Reporting remains the same;
††††† (c) Auditing to Auditing and Attestation; and
††††† (d) Business Law and Professional Responsibilities to Business Environment and Concepts.
††††† (6) Transition period for conditional credit.
††††† (a) An exam candidate awarded conditional credit on the paper and pencil examination shall be allowed a transition period to complete the remaining sections of the computer-based certified public accountants examination.
††††† (b) The transition period shall begin to run January 1, 2004 and last until the candidate utilizes the opportunities to sit for the examination remaining to him or her if the paper and pencil examination was still in effect.
††††† (c) This shall be six (6) testing windows or less, or the number of opportunities remaining under the paper and pencil examination multiplied by six (6) months, whichever occurs first.
††††† (d) This time period shall control even when a passing score on a section of the computer-based examination is received.
††††† (e) Failure to receive a passing score on the remaining sections of the examination at the conclusion of this transition period shall result in the conditional credit expiring.
††††† (7)(a) When an exam candidate without conditional credit initially receives a passing score on a section of the computer-based certified public accountants examination the candidate shall have a minimum of eighteen (18) months following the last day of the month of the administration of that examination section to obtain a passing score on the remaining sections of the computer-based examination.
††††† (b) Failure to receive a passing score on the remaining sections of the computer examination within the eighteen (18) months shall result in the expiration of the initial passing score but not other sections passed during that eighteen (18) month period.
††††† (c) All sections of the computer-based examination shall be passed during an eighteen (18) month time period for the candidate to be considered to have passed the examination.
††††† (8) An additional number of opportunities to sit for the examination and maintain any earned conditional credit or passing scores beyond the restrictions contained in this section may be granted at the discretion of the board for good cause.
††††† Section 4. Initial Examination Applicants. An applicant shall submit an application to sit for the examination. The applicant shall submit:
††††† (1) A completed "Application for the Certified Public Accountant Examination" that includes the following information:
††††† (a) The applicant's name, address, primary and secondary telephone numbers, date of birth, motherís maiden name, and Social Security number. If the applicant does not have a Social Security number then the candidate shall submit an identification number issued by a federal agency that has authorized the candidate to enter the United States;
††††† (b) The state of which the applicant is a legal resident;
††††† (c) An e-mail address;
††††† (d) Whether the applicant has:
††††† 1. Ever changed his or her name; and if so, a list of the prior names;
††††† 2. Taken the Uniform CPA Examination or the computer-based certified public accountant examination before; and if so, the date and state where it was taken;
††††† 3. Been convicted, plead guilty or no contest to a felony or misdemeanor, other than a minor traffic violation; and if so, a copy of the judgment, sentence of conviction, and a letter of explanation shall be attached to the application;
††††† 4. Been denied admission to the Uniform CPA Examination or the computer-based certified public accountant examination; and if so, a letter explaining the reason, date, and jurisdiction of denial shall be attached to the application; and
††††† 5. Had disciplinary action taken against any professional license; and if so, a letter indicating the jurisdiction, date of action, and an explanation of the circumstances shall be attached to the application;
††††† (e) The specific section or sections of the examination the applicant is applying to take;
††††† (f) If the applicant requests accommodations to the exam administration because of a disability that limits one (1) or more of his or her major life activities (e.g., walking, hearing, speaking, seeing, reading, or writing), a description of the disability and requested accommodations from the applicant and written documentation from an appropriately-licensed health care professional supporting the requested accommodation:
††††† 1. The documentation shall include a diagnosis of the disability and a specific recommendation and justification for the requested accommodation.
††††† 2. The board shall not be responsible for the costs of obtaining the diagnosis and recommendation, but shall be responsible for the costs of reasonable accommodations that are provided to the applicant;
††††† (g) The names of the colleges from which a transcript shall be attached to the application;
††††† (h) The signature of the applicant certifying that:
††††† 1. The information in the application is true;
††††† 2. The applicant:
††††† a. Is applying for admission to the computer-based certified public accountants examination in conformity with Kentucky law;
††††† b. Has submitted the required application, attachments, and fees;
††††† c. Has read and agrees to abide by the applicable laws and administrative regulations; and
††††† d. A certification by a notary public that the application was subscribed and sworn to before the notary.
††††† (2) An official transcript which evidences completion of the educational requirements specified in KRS 325.261 which includes a major or concentration in accounting as defined in this administrative regulation.
††††† (a) The educational requirements shall have been completed at:
††††† 1. A college or university within the United States that was accredited by one (1) of the following accrediting associations at the time the degree was granted:
††††† a. Middle States Association of Colleges and Schools;
††††† b. North Central Association of Colleges and Schools;
††††† c. New England Association of Schools and Colleges;
††††† d. Northwest Association of Schools, Colleges and Universities;
††††† e. Southern Association of Colleges and Schools; or
††††† f. Western Association of Schools and Colleges;
††††† 2. The board may consult with a Kentucky state-funded four (4) year institution of higher education for assistance in evaluating the hours purportedly earned and the accreditation of an educational institution; or
††††† 3. A postsecondary educational institution outside the United States whose course credits are certified by the Foreign Academics Credentialing Service (FACS) or another credentialing agency that is a member of the National Association of Credential Evaluation Services, Inc.
††††† (b) The certification required by subparagraph (a)3 of this subsection shall state that the:
††††† 1. Foreign degree is equivalent to a baccalaureate or masterís degree earned in an accredited United States college or university as described in KRS 325.261 and this administrative regulation; and
††††† 2. Applicant had a major or concentration in accounting as defined in this administrative regulation.
††††† (c) A copy of the "Request for Advisory Evaluation of Foreign Credentials" form that FACS requires an applicant to use to request certification from its service.
††††† (3) A fee in the amount of:
††††† (a) Thirty (30) dollars for the application; and
††††† (b) Thirty (30) dollars for each section of the examination the candidate intends to take.
††††† (4) The fees shall be nonrefundable and payment shall be in the form of a check or money order made payable to the "Kentucky State Board of Accountancy". If the institution the check or money order is drawn on does not honor the check or money order the application shall be deemed incomplete and returned.
††††† Section 5. (1)(a) The executive director of the board shall review all applications.
††††† (b) If the executive director determines the application satisfies the requirements of this administrative regulation, the application shall be approved.
††††† (c) If the executive director refuses to approve the application, it shall be submitted to the board for its review and consideration at its next regularly scheduled meeting.
††††† (2) Applications approved by the executive director or the board shall be forwarded to NASBA for entry into the data bank operated by that association. NASBA shall then advise the board that the candidate is eligible to schedule a date and time to sit for the examination with Prometric or its successor.
††††† (3) The executive director shall notify a candidate that he or she is eligible to contact Prometric or its successor to schedule a date and time to sit for the examination. This notification shall be known as a notice to schedule.
††††† (4)(a) A candidate shall have six (6) months from the date of issuance by the board of a notice to schedule to sit for the sections of the examination approved by the executive director or the board.
††††† (b) The notice to schedule shall expire when the candidate has sat for the sections approved by the executive director or the board or at the conclusion of the six (6) month period whichever comes first.
††††† (c) A notice to schedule may be extended for good cause.
††††† (d) To obtain approval to sit for additional sections of the examination a candidate shall submit a reexamination application as described in Section 9 of this administrative regulation.
††††† (5)(a) The exam candidate shall pay all costs associated with sitting for the computer-based certified public accountants examination charged by NASBA, Prometric or its successor, and the AICPA.
††††† (b) The costs shall be paid no later than ninety (90) days following the date of issuance of an invoice from NASBA.
††††† (c) Failure to pay these fees prior to the end of the ninety (90) day time period shall result in the cancellation of the notice to schedule and require the candidate to submit a reexamination application accompanied by the appropriate fees.
††††† Section 6. Examination Rules of Conduct. (1) An examination candidate shall present two (2) forms of current and valid identification at the Prometric or its successor examination center. One (1) of these forms of identification shall be a state driver's license, a picture identification card issued by a state motor vehicle licensing agency, or a passport.
††††† (2) The license or picture identification card shall be currently in effect and shall contain a photograph and signature.
††††† (3) Failure to bring this identification to the examination center shall result in the candidate being prohibited from sitting for the examination.
††††† (4) An examination candidate shall comply with all directives of the staff at the Prometric or its successor testing center and the rules of conduct in effect at the testing center.
††††† (5) An examination candidate shall not:
††††† (a) Use written materials or mechanical aids inside or outside the examination room during the course of the examination;
††††† (b) Communicate with any person, other than the testing center staff, inside or outside the examination room, during the course of the examination;
††††† (c) Copy answers or allows his or her answers to be copied;
††††† (d) Substitute an individual in his or her place;
††††† (e) Disclose in any manner any information concerning the examination questions or content;
††††† (f) Falsify or misrepresent educational credentials or other information required for admission to the examination; or
††††† (g) Fail to follow written or announced examination administration procedures.
††††† Section 7. Examination Misconduct Penalties. An examination candidate who violates any of the provisions of this administrative regulation may be prohibited from:
††††† (1) Further participation in that particular examination section;
††††† (2) Receiving grades after sitting for any examination; or
††††† (3) Sitting for subsequent examinations.
††††† Section 8. An exam applicant shall immediately notify the board of a change in his or her mailing address.
††††† Section 9. Reexamination Applicants. (1) Upon request the board shall mail a reexamination application to every candidate who fails to pass the computer-based examination.
††††† (2) The reexamination application shall be mailed to the most recent address provided by the candidate.
††††† (3) The board shall not be responsible if the reexamination application is not delivered by the United States Postal Service.
††††† (4)(a) To obtain approval to sit as a reexam candidate, the individual shall return the reexamination application to the board. The reexamination application shall contain the following information:
††††† 1. The applicant's name, daytime telephone number, date of birth, motherís maiden name and Social Security number. If the applicant does not have a Social Security number then the candidate shall submit an identification number issued by a federal agency that has authorized the candidate to enter the United States;
††††† 2. The specific sections of the examination the applicant is requesting to sit for;
††††† 3. A statement that the required fee is attached;
††††† 4. If the applicant requests accommodations to the exam administration because of a disability, whether the required information is on file or is attached to the reexamination application; and
††††† 5. The applicant's signature.
††††† (b) The reexamination application shall be received in the board's office prior to the reexamination candidate being considered eligible to sit for any section of the exam.
††††† (5)(a) The candidate shall return the completed reexamination application with the reexamination fee.
††††† (b) The reexamination fee shall be thirty (30) dollars per section. The reexamination fee shall be nonrefundable and paid by check or money order made payable to the Kentucky State Board of Accountancy. If the institution the check or money order is drawn on does not honor the check or money order the application shall be deemed incomplete and returned.
††††† (6) A reexamination candidate who fails to comply with the requirements of this section shall not be permitted to sit for reexamination.
††††† (7) The procedures and policies in Section 5 of this administrative regulation shall be applicable to a reexamination application.
††††† (8) The reexamination candidate shall comply with the requirements of Sections 6, 7, and 8 of this administrative regulation.
††††† Section 10. The executive director shall review examination grades received from NASBA before they are released to a candidate. Upon approval of the executive director, a copy of an examination candidateís grades shall be mailed to him or her at the last known address provided by the candidate.
††††† Section 11. Incorporation by Reference. (1) The following material is incorporated by reference:
††††† (a) "Application for the Certified Public Accountant Examination", 2006, Kentucky State Board of Accountancy;
††††† (b) "Reexamination Application for the Certified Public Accountant Examination", 2006, Kentucky State Board of Accountancy; and
††††† (c) "Request for Advisory Evaluation of Foreign Credentials", 2003.
††††† (2) These documents may be inspected, copied, or obtained, subject to applicable copyright law, at the State Board of Accountancy, 332 W. Broadway, Suite 310, Louisville, Kentucky 40202, Monday through Friday, 8 a.m. to 4:30 p.m. (30 Ky.R. 507; Am. 844; eff. 10-15-2003; 31 Ky.R. 1529; 1782; eff. 5-26-2005; 32 Ky.R. 2063; eff. 9-1-2006; TAm. 10-27-2009.)