Several changes made recently in Michigan accountancy rules include two important rule amendments related to continuing professional education and a new rule regarding the computerized exam.

Partial CPE Credit Granted
Rule R 338.5215 was amended to give CPE credit for those who attend in 25-minute “continuous” increments after the first 50 minutes of “continuous” instruction. Previously, partial credit was not accepted.

Credit will be given based upon the length of a qualifying program as follows:

• 50 minutes of continuous instruction constitutes one qualifying hour. 
• One-half credit of CPE will be granted for every additional 25 minutes of instruction after the first hour is earned.

“Continuous instruction” means education time and does not include meals or breaks in the program.

New Ethics Requirement for Reciprocity or Reentry
A second rule was amended pertaining to CPE requirements for licensure applicants applying for reciprocity or reentering the practice of public accounting. Rule R 338.5230 now includes two hours of ethics within the required 40 hours of CPE.

Procedures for Computerized CPA Exam
A new rule – R 338.5110a – was added, outlining procedures for the computer-based examination being launched in April 2004. Under the new rule, candidates will have a rolling 18-month time period (beginning the date the first section is passed) to pass all sections of the exam. If all sections are not passed within the 18-month timeframe, credit for any section taken outside the time period will expire and must be retaken. 

Candidates who earned conditional credit on the paper-and-pencil exam will be given conditional credit on the corresponding portion of the computer-based exam – within a transitioning period. However, this credit will be lost if all sections are not passed within the transitioning period.

Code of Professional Conduct
Rule R 338.5405 adopted the AICPA Code of Professional Conduct independence rule by reference and includes the availability of the Code for purchase or for review on-line. Download the Code without charge at the AICPA Web site: http://www.aicpa.org/about/code/sec100.htm.

Board Meetings
A non-substantive language change was made to Rule R338.5105 relating to board meetings.

All changes were effective October 29, 2003. More details on the rule changes can be viewed on the MACPA Web site at http://www.michcpa.org/pressroom/full.asp?aid=2763.

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