Delaware Administrative Code
Title 24 - Regulated Professions and Occupations
Department of State
Division of Professional Regulation
100 - Board of Accountancy
Section 100-7.0 - Issuance and Renewal of CPA Permits to Practice and Maintenance of Competency
Universal Citation: 24 DE Admin Code 100-7.0
Current through Register Vol. 28, No. 3, September 1, 2024
7.1 Reciprocity
7.1.1 This regulation provides 2
distinct routes for an individual already licensed in another state to obtain a
reciprocal permit to practice in Delaware. Individuals may qualify for a
reciprocal permit to practice as described in 24 Del.C. §
109 (substantial equivalency) or
as described in Section 108(c)(2) and subsection 7.2 of this regulation.
Individuals with a principal place of business in another state may offer or
render services in Delaware pursuant to substantial equivalence (see 24 Del.C.
§
109).
7.1.2 If the substantial equivalency standard
set out in 24 Del.C. §
109 is not applicable, the Board
shall issue a reciprocal permit to practice to the holder of a certificate,
license or permit issued by another state provided that the applicant meets
each of the following requirements:
7.1.2.1
Has successfully completed the CPA examination. Successful completion of the
examination means that the applicant passed the examination in accordance with
the rules of the other state at the time it granted the applicant's initial
certificate, license or permit.
7.1.2.2 Has satisfied the 4-in-10 experience
requirement set out in 24 Del.C. §
108(c)(2)(b).
7.1.2.3 Has experience of the type required
under the 24 Del.C. §
107(f) and this
regulation for issuance of the initial permit to practice.
7.1.2.4 Has met the continuing professional
education ("CPE") requirement pursuant to 24 Del.C. §
108(e).
7.2 CPE requirements for renewal of permits to practice
7.2.1 Hours
Required
7.2.1.1 Each permit holder must have
completed at least 80 hours of acceptable CPE each biennial reporting period.
Each biennial reporting period ends on June 30 of each odd-numbered year. The
80 hours of acceptable CPE submitted must have been completed in the
immediately preceding 2-year period and must include 8 credit hours in
accounting or auditing and 8 credit hours in taxation and 4 credit hours in a
Delaware specific ethics course approved by the Board as set forth in
subsection 7.2.3.2. In addition to these 20 specified hours, each permit holder
must complete at least an additional 20 credit hours in either accounting,
auditing, or taxation.
7.2.1.2 Each
permit holder must complete at a minimum 20 hours of CPE in each year of the
reporting period.
7.2.2
Reporting Requirements. License renewal may be accomplished online at
www.dpr.delaware.gov. Each permit
holder shall attest as to whether the CPE was completed as required by
subsection 7.2.
7.2.2.1 Attestation shall be
completed electronically.
7.2.2.2
Audits will be performed by the Board to ensure compliance with the CPE
requirements.
7.2.2.2.1 The Board will notify
permit holders within 180 days of June 30 of each biennial renewal period that
they have been selected for audit.
7.2.2.2.2 Permit holders selected for random
audit shall be required to submit a summary of their CPE attendance on a Board
approved log with verification within 30 days of the date of notification of
selection for audit.
7.2.2.3 Verification shall include such
information necessary for the Board to assess whether the course or other
activity meets the CPE requirements in subsection 7.2. Verification must
include the following information:
* Date of course;
* Location of course, if applicable;
* Field of study;
* Sponsor of course;
* Title of course or description of content;
* Number of hours claimed; and
* Type of instructional/delivery method.
7.2.2.4 The Board shall review all
documentation submitted by permit holders pursuant to the audit. If the Board
determines that the permit holder has met the CPE requirements, their permit
shall remain in effect. If the Board determines that the permit holder has not
met the requirements, the permit holder shall be notified and a hearing may be
held pursuant to the Administrative Procedures Act. The hearing will be
conducted to determine if there are any extenuating circumstances justifying
the noncompliance with the CPE requirements. Unjustified noncompliance with the
requirements set forth in this regulation shall constitute a violation of 24
Del.C. §
117(6) and the
permit holder may be subject to one or more of the disciplinary sanctions set
forth in 24 Del.C. §
118. The Board has the authority
to enter into a consent agreement with the permit holder prior to conducting a
hearing.
7.2.3 Proration.
CPE requirements shall be prorated for new permit holders or holders of permits
issued upon re-entry from inactive status pursuant to subsection 7.2.11.4 only.
Thereafter all permit holders are required to complete at least 80 hours of
acceptable CPE biennially.
7.2.3.1 If the
initial permit or permit issued upon re-entry from inactive status was issued
less than 1 year prior to the renewal date, there shall be no CPE requirement
for that period. The requirement of a minimum of 20 hours to be completed in
each year shall be waived.
7.2.3.2
If the initial permit or permit issued upon re-entry from inactive status was
issued at least 1 year, but less than 2 years prior to the renewal date, the
CPE requirement shall be 40 hours for that period, and the requirement of a
minimum of 20 hours to be completed in each year shall be waived. The 40 hours
of CPE shall consist at a minimum of 8 credit hours in accounting or auditing
and 8 credit hours in taxation and 4 credit hours in a Delaware specific ethics
course approved by the Board.
7.2.4 Exceptions. The Board has the authority
to make exceptions to the CPE requirements for reasons of individual hardship
including health, military service, or other good cause. Requests for
exceptions shall be made in writing and received by the Board prior to the
applicable renewal period.
7.2.5
Qualified Programs
7.2.5.1 CPE activities are
learning opportunities that contribute directly to a licensee's knowledge,
ability, and competence to perform their professional responsibilities. CPE
activities should address the licensee's current and future work environment,
current knowledge and skills, and desired or needed knowledge and skills to
meet future opportunities or professional responsibilities.
7.2.5.2 The following learning activities
shall qualify for CPE credit:
7.2.5.2.1 A
learning activity that is coordinated and presented by a qualifying CPE program
sponsor as set forth in subsection 7.2.6. The sources of qualifying learning
activities include the following:
7.2.5.2.1.1
Group Programs. Group programs include any group live or group internet-based
programs. Group live programs are those in which participants engage
simultaneously in learning activities in a group environment with real time
interaction of a qualified instructor or subject matter expert that provides
the required elements of attendance monitoring and engagement. Group
internet-based programs are those in which an individual participates in
simultaneous learning with other participants through the internet with real
time interaction of an instructor or subject matter expert and built-in
processes for attendance and interactivity.
7.2.5.2.1.2 Self-Study Programs. Self-study
programs are defined as a program of learning completed individually without
the assistance or interaction of a real time instructor.
7.2.5.2.1.3 Blended Learning Programs.
Blended learning programs are defined as an educational program that includes
both a learning activity in which the participant has control over time, place
or pace of learning and a group program in which participants engage
simultaneously in learning activities and incorporates different instructional
delivery methods or instructional strategies or different levels of guidance.
Blended learning programs must employ instructional strategies that clearly
define learning objectives and guide the participant through a program of
learning. Pre-program, post-program, and homework assignments should enhance
the learning program experience and must relate to the defined learning
objectives of the program.
7.2.5.2.1.4 Nano Learning Programs. Nano
learning programs are completed individually without the assistance or
interaction of a real time instructor that is designed to permit a participant
to learn a given subject in a minimum of 10 minutes and less than 20 minutes
through the use of electronic media (including technology applications and
processes and computer-based or web-based technology). A nano learning program
differs from a self-study program in that it is typically focused on a single
learning objective and is not paper based. A nano learning program is not a
group program. Nano learning is not a substitute for comprehensive programs
addressing complex issues. Nano learning programs must employ instructional
strategies that clearly define a minimum of one learning objective, guide the
participant through a program of learning, and provide evidence of a
participant's satisfactory completion of the program. Satisfactory completion
of the program must be confirmed at the conclusion of the program through a
qualified assessment. Review questions or other content reinforcement tools may
be included in a nano learning program.
7.2.5.2.1.5 Instructor/Developer of CPE
programs in subsections 7.2.5.2.1.1, 7.2.5.2.1.2, 7.2.5.2.1.3, 7.2.5.2.1.4,
7.2.5.2.2, and 7.2.5.2.4 of this regulation.
7.2.5.2.2 A college or university course that
is coordinated and presented by a qualifying university or college. No CPE
shall be permitted for attending or instructing college or university courses
considered to be basic or introductory accounting courses or CPA exam
preparation/review courses. No CPE credit shall be given for non-credit
courses.
7.2.5.2.3 Authorship of
published articles, books, or other publications relevant to maintaining or
improving professional competence.
7.2.5.2.4 Specialized group learning activity
that is coordinated and presented by a person, firm, association, corporation,
or group, other than a qualifying CPE program sponsor as defined in subsection
7.2.6. These programs are generally related to topics of specialized knowledge
field of study by persons or organizations with expertise in these specialized
industries.
7.2.5.2.5 Participation
and work on a technical committee of an international, national, or state
professional association, council, or member organization or a member
organization of a governmental entity that supports professional services or
industries that require unique and specific knowledge in technical fields of
study.
7.2.6
Qualifying CPE Sponsors. The following are deemed to be qualifying CPE program
sponsors provided they offer activities that comply with Section
7.0 this regulation:
7.2.6.1 Persons, firms, associations,
corporations, or other groups that are members of NASBA's National Registry of
CPE Sponsors.
7.2.6.2 Recognized
national and state professional accounting associations and their local
affiliates.
7.2.6.3 Universities or
colleges accredited at the time the CPE program was delivered by virtue of
accreditation by an organization recognized by the Middle States Commission on
Higher Education or by a comparable regional accrediting
organization.
7.2.6.4 Accounting
firms with an active firm permit to practice or its equivalent.
7.2.6.5 Persons, firms, associations,
corporations, or other groups that are approved by the Board to offer
Delaware-specific ethics.
7.2.7 Evidence of CPE Completion. Acceptable
evidence for completion of qualifying learning activities shall include the
following:
7.2.7.1 For programs or courses as
set forth in subsections 7.2.5.2.1 and 7.2.5.2.2, acceptable evidence includes
a certificate of completion or transcript issued by the qualifying CPE program
sponsor.
7.2.7.2 For activities as
set forth in subsection 7.2.5.2.3, acceptable evidence includes a copy of the
publications that names the licensee as author or contributor; a statement from
the licensee supporting the number of CPE credits claimed; and the name and
contact information of the independent reviewer or publisher.
7.2.7.3 For programs or courses as set forth
in subsection 7.2.5.2.4, acceptable evidence includes a certificate of
attendance or other verification supplied by the program sponsor. If a
certificate of attendance or other verification is not available, then
acceptable evidence includes copies of the course agenda, program materials, or
other documents attributable to the learning activity.
7.2.7.4 For activities as set forth in
subsection 7.2.5.2.5, acceptable evidence must include a written certificate of
the licensee setting forth all of the following:
7.2.7.4.1 The nature of the activity (e.g.,
topic or specific new competency acquired), the items discussed, and
source/materials considered.
7.2.7.4.2 The dates on which the learning
activity occurred.
7.2.7.4.3 The
number of CPE credits attributed to the learning activity.
7.2.7.4.4 Details of the relevance of the
learning activity to the participant's current or future development.
7.2.8 Computation of CPE
Credits. Each approved CPE course, program, or activity shall be measured by
program length, with 1 50-minute period equal to 1 CPE credit. Computation of
CPE credits for qualifying CPE programs shall be as follows:
7.2.8.1 Group programs and blended learning
programs. A minimum of 1 credit must be earned initially, but after the first
credit has been earned, credits may be earned in 1/2-credit
increments.
7.2.8.2 Self-study. A
minimum of 1 credit must be earned initially, but after the first credit has
been earned, credits may be earned in 1/2-credit increments. The maximum credit
toward meeting the CPE requirement with self-study must not exceed 30% of the
total requirement.
7.2.8.3
Nano-learning. The credit to be earned for a single nano-learning program is
1/5 credit. The maximum credit toward meeting the CPE requirement with nano
learning must not exceed 5% of the total requirement.
7.2.8.4 For blended learning programs, CPE
credit must be equal the sum of the CPE credit determination for the various
completed components of the program.
7.2.8.5 An instructor/developer of qualifying
CPE programs included in group programs, self-study programs, and blended
learning programs may receive CPE credit for actual preparation time up to 2
times the number of CPE credits to which participants would be entitled, in
addition to the time for presentation. For repeat presentations, CPE credit can
be claimed only if it can be demonstrated that the learning activity content
was substantially changed, and such change required significant additional
study or research. Not more than 50% of the total CPE credits required for the
CPE reporting period can be claimed for instructor/developer CPE
credit.
7.2.8.6 Authors of
published articles, books, and other publications may receive CPE credit for
their research and writing time to the extent it maintains or improves their
professional competence. For the author to receive CPE credit, the article,
book, or CPE program must be formally reviewed by an independent subject matter
expert. Not more than 25% of the total CPE credits required for the CPE
reporting period can be claimed for author CPE credit.
7.2.8.7 For courses that are part of the
curriculum of a university, college or other educational institution, each
semester hour credit shall equal 15 CPE credits, and each quarter hour credit
shall equal 10 CPE credits. CPE credit for instructing a college or university
course shall be twice the credit that would have been granted participants for
the first presentation of a specific course or program and none thereafter,
except if the course content has been substantially revised. To the extent a
course has been substantially revised, the revised portion shall be considered
a first presentation. Not more than 50% of the total CPE credits required for
the CPE reporting period can be claimed for instructor CPE credit.
7.2.8.8 Not more than 25% of the total
qualifying CPE credits for a CPE reporting period may consist of a combination
of the learning activities defined in subsections 7.2.5.2.4 and
7.2.5.2.5.
7.2.8.9 The following
table summarizes the manner in which CPE credits may be accumulated through
different types of learning activities:
| Qualifying CPE Program pursuant to subsections 7.2.5.2.1 | Minimum initial credit that must be earned | After first credit has been earned, credit may be earned in these increments | Maximum credit allowed per reporting period |
| Group | 1 | 1/2 | 100% |
| Blended Learning | 1 | 1/2 | Based on program maximum |
| Self-Study | 1 | 1/2 | 30% |
| Nano Learning | 1/5 | Not applicable (single nano-learning program is 1/5 credit) | 5% |
7.2.9 Evidence of Completion and Retention of
Records
7.2.9.1 Primary responsibility for
documenting the Board's CPE requirements rest with the applicant. Evidence in
support of the requirements shall be retained for a period of 5 years after
completion of the educational activity.
7.2.9.2 Sufficiency of evidence includes
retention of course outlines and such signed statements of attendance as may be
furnished by the sponsor.
7.2.9.3
For courses taken pursuant to subsection 7.2.8.7 an official college transcript
will be considered evidence of satisfactory completion.
7.2.10 Composition of CPE. CPE credit hours
may be satisfied by general subject matters so long as they contribute to the
professional competence of the individual practitioner. Such general subject
matters include the following areas:
* Accounting
* Auditing
* Business Law
* Communications and Marketing
* Computer Software and Applications
* Economics
* Finance
* Information Technology and Data Analytics
* Management Services
* Personnel Relations, Business Management and Organization
* Regulatory Ethics
* Personal Development
* Specialized Knowledge
* Taxation
7.2.11 The Board may make an exception to the
requirement set out in subsection 7.2.1 for a CPA permit holder who has been
granted inactive status and who does not perform or offer to perform one or
more kinds of services involving the use of accounting or auditing skills,
including the issuance of reports on financial statements or other compilation
communication, or of one or more kinds of management advisory, financial
advisory or consulting services, or the preparation of tax returns or the
furnishing of advice on tax matters. Those requesting inactive status and those
granted inactive status must comply with all of the following requirements.
7.2.11.1 Permit holders who request inactive
status must do so on forms prescribed by the Board. Inactive status is not
valid until approved by the Board.
7.2.11.2 Permit holders granted an exception
by the Board must place the word "inactive" adjacent to their CPA title on any
business card, letterhead or any other document or device, with the exception
of their CPA certificate, on which their CPA title appears.
7.2.11.3 Permit holders granted an exception
by the Board must comply with a re-entry c CPE requirement defined by the Board
as set out in subsection 7.2.11.4 and must request re-entry on forms prescribed
by the Board and be approved for re-entry before they may discontinue use of
the word "inactive" in association with their CPA title.
7.2.11.4 Permit holders requesting re-entry
must comply with the CPE requirement as set out in subsection 7.2.1.1. Only CPE
completed in the 2-year period prior to the date of application for re-entry
will qualify. If the CPE is completed in less than 2 years, then the
requirement of a minimum of 20 hours in each year does not apply.
7.2.12 CPAs who hold expired
permits as of July 1, 2016 and who failed to reinstate their permit during the
2015-2017 renewal period must meet all of the requirements for initial issuance
of permits to practice.
Disclaimer: These regulations may not be the most recent version. Delaware may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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