Administrative Code

Virginia Administrative Code
Title 18. Professional and Occupational Licensing
Agency 5. Board of Accountancy
8/23/2019

Chapter 22. Board of Accountancy Regulations

18VAC5-22-10. Definitions.

The definitions in § 54.1-4400 of the Code of Virginia apply to these regulations.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-20. Fees.

A. The board shall charge the following fees for services it provides:

Processing an initial application to take one or more sections of the CPA examination

$120

Processing additional applications to take one or more sections of the CPA examination

$20

Processing an application for issuance of a Virginia license to a person

$75

Processing an application for issuance of a Virginia license to a firm

$100

Processing an application for the timely renewal of a person's Virginia license except as provided in subsection B of 18VAC5-22-180

$60

Processing an application for the timely renewal of a firm's Virginia license except as provided in subsection B of 18VAC5-22-180

$75

Additional fee for processing an application for the renewal of a person's Virginia license that is not timely

$100

Additional fee for processing an application for the renewal of a firm's Virginia license that is not timely

$100

Processing an application for reinstatement of a person's Virginia license

$350

Processing an application for reinstatement of a firm's Virginia license

$500

Processing an application for lifting the suspension of the privilege of using the CPA title in Virginia

$350

Processing an application for lifting the suspension of the privilege of providing attest services, compilation services, or financial statement preparation services for persons or entities located in Virginia

$500

Providing or obtaining information about a person's grades on sections of the CPA examination

$25

Processing requests for verification that a person or firm holds a Virginia license:

1. Online request

$25

2. Manual request

$50

Providing an additional CPA wall certificate

$25

Additional fee for not responding within 30 calendar days to any request for information by the board under subsection A of 18VAC5-22-170

$100

Additional fee for not using the online payment option for any service provided by the board

$25

B. All fees for services the board provides are due when the service is requested and are nonrefundable.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010; amended, Virginia Register Volume 29, Issue 3, eff. January 1, 2013; amended Volume 34, Issue 19, eff. June 13, 2018; amended Volume 34, Issue 24, eff. September 6, 2018.

18VAC5-22-30. Determining whether persons or entities to whom communications are made, or for whom services are provided, are located in Virginia.

For the purpose of complying with Chapter 44 (§ 54.1-4400 et seq.) of Title 54.1 of the Code of Virginia for communication to persons or entities located in Virginia or providing services for persons or entities located in Virginia, persons are considered to be located in Virginia if their primary residence for federal income tax reporting is located in Virginia, and entities are considered to be located in Virginia if they conduct any activities in Virginia.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-40. Determining whether a person who holds a Virginia license is providing services to the public using the CPA title or to an employer using the CPA title.

For the purpose of determining whether a person who holds a Virginia license is providing services to the public or to an employer, those terms are to be defined in accordance with § 54.1-4400 of the Code of Virginia.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010; amended, Virginia Register Volume 35, Issue 1, eff. October 18, 2018.

18VAC5-22-50. Determining whether the principal place of business of a person or of a firm is in Virginia.

Complying with subdivision A 1 of § 54.1-4409.1, subsection B of § 54.1-4411, or subsection B of § 54.1-4412.1 of the Code of Virginia requires the person or firm to use reasonable judgment in determining whether Virginia is the principal place of business in which:

1. The person provides services to the public; or

2. The firm provides attest services or compilation services.

The determination shall be reasonable considering the facts and circumstances and can be based on quantitative or qualitative assessments. The determination shall be reconsidered for changes in facts and circumstances that are not temporary.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010; amended, Virginia Register Volume 33, Issue 23, eff. August 9, 2017.

18VAC5-22-60. Determining whether a college or university is an accredited institution.

A. For the purpose of complying with subdivision A 1 a of § 54.1-4409.2 of the Code of Virginia, a college or university that is not accredited by one of the six major regional accrediting organizations listed in the definition of accredited institution in § 54.1-4400 of the Code of Virginia or their successors shall be considered an accredited institution if it is accredited by an accrediting organization recognized by the Council on Higher Education Accreditation (CHEA) or its successor. Publication of the name of the accrediting organization by CHEA or its successor shall be sufficient notification that the accrediting organization is recognized by CHEA or its successor.

B. To determine whether a college or university is an accredited institution if it is accredited by an accrediting organization that is neither one of the six major regional accrediting organizations or their successors, nor an accrediting organization recognized by CHEA or its successor, representatives of the accrediting organization shall meet with a task force appointed by the board to study and recommend to the board how the organization shall demonstrate that its accreditation process and standards are substantially equivalent to the accreditation process and standards of the six major regional accrediting organizations or their successors. The size and composition of the task force shall depend on the facts and circumstances. However, at least one of the members of the task force shall have substantial experience with the accreditation process and standards of the six major regional accrediting organizations or their successors.

After the task force provides its recommendations to the board, the board shall decide what the requirements shall be to demonstrate that the accreditation process and standards of the accrediting organization are substantially equivalent to the accreditation process and standards of the six major regional accrediting organizations or their successors and shall communicate its decision to the organization. The organization shall then provide the required documentation to the board that will enable the board to decide whether a college or university accredited by the organization is an accredited institution as defined in § 54.1-4400 of the Code of Virginia.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-70. Education.

A. In order for a person to take the CPA examination through Virginia, he must have obtained from one or more accredited institutions at least 120 semester hours of education, a baccalaureate or higher degree, and an accounting concentration or equivalent prior to taking any part of the CPA examination.

B. For the purpose of complying with subsection A of this section and with subdivision A 1 a of § 54.1-4409.2 of the Code of Virginia, obtaining an accounting concentration or equivalent requires obtaining at a minimum:

1. 24 semester hours of accounting courses, including courses in auditing, financial accounting, management accounting, and taxation; and

2. 24 semester hours of business courses, no more than six semester hours of which could be considered accounting courses.

Principles or introductory accounting courses cannot be considered in determining whether a person has obtained the 48 minimum number of semester hours required for an accounting concentration or equivalent.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010; amended, Virginia Register Volume 33, Issue 23, eff. August 9, 2017.

18VAC5-22-80. Examination.

A. In order to comply with subdivision A 1 b of § 54.1-4409.2 of the Code of Virginia:

1. Each section of the CPA examination must be passed by attaining a uniform passing grade established through a psychometrically acceptable standard-setting procedure approved by the board.

2. Persons may take sections of the CPA examination in any order.

3. A person who fails a section of the CPA examination may not retake that section until the next quarter of the calendar year.

4. When a person first passes a section of the CPA examination, he has 18 months to pass the remaining sections. If the remaining sections are not passed within the 18-month period, the person loses credit for the first section passed, and a new 18-month period starts with the next section passed.

B. Failure to comply with the policies established by the board for conduct at the CPA examination may result in the loss of eligibility to take the CPA examination or credit for sections of the CPA examination passed. Cheating by a person in connection with the CPA examination shall invalidate any grade earned on any section of the CPA examination and may warrant expulsion from the CPA examination site and disqualification from taking the CPA examination for a specified period of time as determined by the board.

C. The board may postpone scheduled CPA examinations, the release of grades, or the issuance of licenses under the following circumstances:

1. A breach of CPA examination security;

2. Unauthorized acquisition or disclosure of the contents of a CPA examination;

3. Suspected or actual negligence, errors, omissions, or irregularities in conducting a CPA examination; or

4. Any other reasonable circumstances.

D. Prior to being considered for a Virginia license, a person shall pass an ethics examination approved by the board.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-90. Continuing professional education.

A. If during the current calendar year a person holds a Virginia license and has not been granted an exemption by the board pursuant to subsection C of this section, he shall have obtained at least 120 hours of continuing professional education during the three-calendar-year period ending with the current calendar year. For each of the calendar years in that period, he shall have obtained at least 20 hours of continuing professional education, including an ethics course of at least two hours.

1. If the person also holds the license of another state and Virginia is not his principal place of business, the ethics course taken to comply with this subsection either shall conform with the requirements prescribed by the board or shall be an ethics course acceptable to the board of accountancy of another state in which the person holds a license.

2. Otherwise, the ethics course shall conform to the requirements prescribed by the board.

B. If during the current calendar year a person who holds a Virginia license provided services to the public or to or on behalf of an employer, has not been granted an exemption by the board pursuant to subsection C of this section, and did not hold a Virginia license or the license of another state during one or both of the two preceding calendar years, he shall determine whether he has complied with the requirements of subsection A of this section as follows:

1. If the person became licensed during the current calendar year, he shall be considered to have met the requirements of subsection A of this section for the three-calendar-year period ending with the current calendar year.

2. If the person became licensed during the preceding calendar year, he shall be considered to have met the requirements of the subsection for the three-calendar-year period ending with the current calendar year if during the current calendar year he obtained at least the minimum number of hours of continuing professional education required by subsection A of this section for the current calendar year, including an ethics course of at least two hours.

3. If the person became licensed during the calendar year prior to the preceding calendar year, he shall be considered to have met the requirements of the subsection for the three-calendar-year period ending with the current calendar year if during the current calendar year and the preceding calendar year he obtained at least the minimum number of hours of continuing professional education required by subsection A of this section for each of the years, including for each year an ethics course of at least two hours.

C. If during the current calendar year a person who holds a Virginia license did not provide services to the public or to or on behalf of an employer and has demonstrated to the board that he does not provide those services, he is not required to have obtained continuing professional education during the three-calendar-year period ending with the current calendar year. Any person who holds a Virginia license to whom an exemption has been granted shall annually affirm and certify to the board his continued eligibility for the exemption in that he does not provide services to the public or to or on behalf of an employer. However, in order to begin providing those services:

1. He is required to have obtained at least 120 hours of continuing professional education prior to providing the services, including an ethics course of at least two hours.

2. The ethics course shall conform to the requirements prescribed by the board for the calendar year in which the person begins providing the services.

Continuing professional education obtained during the three calendar years prior to the current calendar year and from the start of the current calendar year to when he begins providing the services shall be considered in determining whether the person has complied with the requirements of this subsection.

D. If a person who has not held the license of any state applies for a Virginia license after the end of the calendar year in which he passes the CPA examination, he shall obtain continuing professional education prior to applying for the license, including an ethics course of at least two hours.

1. The required minimum number of hours of continuing professional education shall be 40, 80, or 120 depending on whether he applies for the Virginia license by the end of the first calendar year after the calendar year in which he passes the CPA examination, by the end of the second calendar year, or later.

2. The ethics course shall conform to the requirements prescribed by the board for the calendar year in which the person applies for the license.

Continuing professional education obtained subsequent to passing the CPA examination but during the three calendar years prior to the calendar year in which the person applies for the license and from the start of that calendar year to when he applies for the license shall be considered in determining whether he has complied with this requirement.

E. Continuing professional education acceptable to the board may be obtained through a variety of forums, provided there is a means of demonstrating that the education was obtained. The acceptable forums are:

1. Attending seminars and educational conferences, provided that the instructors have appropriate knowledge of the subject matter and use appropriate teaching materials and that attendance is monitored in a manner that can be verified by the board;

2. Taking courses at an accredited institution for credit;

3. Completing self-study courses, provided there is a method for determining that the person met the learning objectives;

4. Making a presentation at a professional seminar, educational conference, or in a classroom setting, provided the person has appropriate knowledge of the subject matter and uses appropriate teaching materials;

5. Writing material that is relevant to providing services to or on behalf of an employer or to the public that is formally reviewed by an independent party and that is published in a book, magazine, or similar publication; and

6. Passing examinations and obtaining certifications that have been approved by the board.

Whether other forums are acceptable shall be determined by the board on a case-by-case basis.

F. In determining whether a person has obtained the required number of hours of continuing professional education:

1. Repeat presentations shall not be considered.

2. No more than 30 hours from preparing for and making presentations shall be considered during each three-calendar-year period.

3. One semester-hour of credit for courses at an accredited institution constitutes 15 hours of continuing professional education, and one quarter-hour of credit constitutes 10 hours of continuing professional education.

4. Credit for examination and certification shall be awarded for the calendar year in which the examination was passed and certification was received. If passage of the examination and certification occur in different calendar years, credit shall be awarded for the calendar year in which the examination was passed. The board shall determine how many hours are credited per certification.

5. No more than 60 hours from examination and certification shall be considered during each three-calendar-year period.

G. Depending on the facts and circumstances, the board may waive all or part of the continuing professional education requirement for one or more calendar years or grant additional time for complying with the continuing professional education requirement, provided that the waiver or deferral is in the public interest.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010; amended, Virginia Register Volume 33, Issue 23, eff. August 9, 2017; Volume 34, Issue 11, eff. March 8, 2018.

18VAC5-22-100. Experience.

Prior to applying for a license, a person must have been employed in academia, a firm, government, or industry in any capacity involving the substantial use of accounting, financial, tax, or other skills that are relevant, as determined by the board, to providing services to the public or to or on behalf of an employer for a period that is the full-time equivalent of one year. Whether other skills are relevant shall be determined by the board on a case-by-case basis. Self-employment does not meet the definition of experience in § 54.1-4400 of the Code of Virginia.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010; amended, Virginia Register Volume 33, Issue 23, eff. August 9, 2017.

18VAC5-22-110. Demonstrating that a person's education, CPA examination, and experience are substantially equivalent to the requirements for obtaining a Virginia license.

Subdivision A 2 of § 54.1-4411 of the Code of Virginia does not require the person to notify the board that the person's education, CPA examination, and experience are substantially equivalent to the requirements for obtaining a Virginia license.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-120. Supervision of firm personnel.

To comply with subdivision C 2 of § 54.1-4412.1 of the Code of Virginia, a person's work must be planned, supervised, and reviewed by a person who either (i) holds a Virginia license or (ii) holds the license of another state and complies with the substantial equivalency provisions of § 54.1-4411 of the Code of Virginia.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-130. Owners of firms who are not licensees.

To comply with subdivision D 2 of § 54.1-4412.1 of the Code of Virginia, owners of a firm who are not licensees must be persons who, based on the facts and circumstances, participate in the firm's activities on a regular, continuous, and substantial basis.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-140. Persons who release or authorize the release of reports.

A. To comply with subdivision D 4 of § 54.1-4412.1 of the Code of Virginia, a person who releases or authorizes the release of reports on attest services, compilation services, or financial statement preparation services provided for persons or entities located in Virginia shall annually obtain a minimum of eight hours of continuing professional education related to attest services, compilation services, or financial statement preparation services. The hours obtained to meet this requirement shall be considered in determining whether the person has complied with the requirements of 18VAC5-22-90.

B. Firms providing attest services, compilation services, or financial statement preparation services shall establish policies and procedures to provide the firm with reasonable assurance that persons who release or authorize the release of reports on attest services , compilation services, or financial statement preparation services possess the kinds of competencies that are appropriate given the facts and circumstances. These policies and procedures shall address the required technical proficiency, familiarity with the industry and the person or entity, skills that indicate sound professional judgment, and other competencies necessary under the circumstances.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010; amended Volume 34, Issue 24, eff. September 6, 2018.

18VAC5-22-150. Monitoring program and peer review.

In order to comply with subdivision D 6 of § 54.1-4412.1 of the Code of Virginia, a firm shall comply with all components of the monitoring program in which it is enrolled, except that, depending on the facts and circumstances, the board may waive the requirement for a peer review or grant additional time for complying with the requirement.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-160. Confidential consent agreements.

To determine whether to enter into a confidential consent agreement under subsection A of § 54.1-4413.5 of the Code of Virginia, the board shall consider a violation minor if the board believes that the violation was not intentional misconduct, was not the result of gross negligence, and did not have a significant financial impact on persons or entities. The board shall enter into no more than two additional confidential consent agreements with a person or firm within 10 years after the first confidential consent agreement.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010.

18VAC5-22-170. Communication with the board.

A. Pursuant to § 54.1-4425 of the Code of Virginia, each licensee or applicant shall respond within 30 calendar days to any board request for information regarding compliance with any statutes or regulations pertaining to the board or any of the programs that may be in another title of the Code of Virginia for which the board has regulatory responsibility. When the requested response is not produced by the licensee or applicant within 30 calendar days, this nonproduction shall be deemed a violation of this rule, unless otherwise determined by the board.

B. Each holder of a Virginia license shall notify the board in writing within 30 calendar days of any change in the holder's name or in the postal and electronic addresses where the person or firm may be reached.

C. The board shall transmit license renewal notices electronically unless a person or firm is unable to communicate electronically. The responsibility for renewing a Virginia license is on its holder, and that responsibility is not affected by whether the holder receives a license renewal notice.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 26, Issue 24, eff. September 16, 2010; amended, Virginia Register Volume 35, Issue 1, eff. October 18, 2018.

18VAC5-22-180. Issuance, renewal, and reinstatement of licenses.

A. Any Virginia license issued, renewed, or reinstated on or after February 26, 2018, and on or before June 30, 2018, shall expire on June 30, 2019, and its holder shall pay the fee prescribed in 18VAC5-22-20 upon submission of a completed license application.

B. Any Virginia license expiring between July 31, 2018, and on or before March 31, 2019, that is renewed pursuant to this subsection shall expire on June 30, 2019. Any Virginia license expiring between April 30, 2019, and on or before May 31, 2019, that is renewed pursuant to this subsection shall expire on June 30, 2020.

1. A person who holds a Virginia license that expires between July 31, 2018, and May 31, 2019, shall pay a prorated renewal fee as prescribed in this subdivision upon submission of a completed license renewal application.

Current Expiration Date

Renewal Fee

Expiration Date Following Renewal

July 31, 2018

$55

June 30, 2019

August 31, 2018

$50

June 30, 2019

September 30, 2018

$45

June 30, 2019

October 31, 2018

$40

June 30, 2019

November 30, 2018

$35

June 30, 2019

December 31, 2018

$30

June 30, 2019

January 31, 2019

$25

June 30, 2019

February 28, 2019

$20

June 30, 2019

March 31, 2019

$15

June 30, 2019

April 30, 2019

$60

June 30, 2020

May 31, 2019

$60

June 30, 2020

2. A firm that holds a Virginia license that expires between July 31, 2018, and May 31, 2019, shall pay a prorated renewal fee as prescribed in this subdivision upon submission of a completed license renewal application.

Current Expiration Date

Renewal Fee

Expiration Date Following Renewal

July 31, 2018

$68

June 30, 2019

August 31, 2018

$62

June 30, 2019

September 30, 2018

$56

June 30, 2019

October 31, 2018

$50

June 30, 2019

November 30, 2018

$43

June 30, 2019

December 31, 2018

$37

June 30, 2019

January 31, 2019

$31

June 30, 2019

February 28, 2019

$25

June 30, 2019

March 31, 2019

$18

June 30, 2019

April 30, 2019

$75

June 30, 2020

May 31, 2019

$75

June 30, 2020

C. Any Virginia license issued or reinstated from July 1, 2018, to on or before March 31, 2019, shall expire on June 30, 2019, and its holder shall pay the fee prescribed in 18VAC5-22-20 upon submission of a completed license application. Beginning April 1, 2019, any Virginia license issued or reinstated during the months of April, May, or June shall expire on June 30 of the succeeding calendar year, and its holder shall pay the fee prescribed in 18VAC5-22-20 upon submission of a completed license application.

D. For Virginia licenses expiring on June 30, 2019, or later, the holder of a Virginia license shall annually renew his license on or before June 30 of each calendar year by submitting a completed license renewal application and paying to the board a renewal fee as prescribed in 18VAC5-22-20.

Statutory Authority

§§ 54.1-4402 and 54.1-4403 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 34, Issue 19, eff. June 13, 2018.



Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.