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California Regulatory Review for CPAs/RRS-0280119 #597926

Course Overview

Credit

Amount

CPA

Course Author: Joseph P. Helstrom, CPA Field of Study (CPA): Regulatory Ethics

Course Description

Course publication/revision date: This course was updated on 6/14/2026.

This course is approved by the California Board of Accountancy through 1/31/2027.

CA course approval number is Self-Study Course-RRS-028-0119.

This two-hour course is designed to meet the two-hour regulatory review course requirement for California CPAs. This course is required every six years and is in addition to the four-hour ethics requirement for each two-year license renewal period. The applicable statutes and regulations promulgated in the California Accountancy Act and the California Board of Accountancy Regulations are covered in detail. Included in the course is a summary of recent and historic board enforcement actions and an overview of new rules. Disciplinary actions by the board are used to reinforce understanding of the statues and regulations. Frequently asked questions are also included to further illustrate important points.

Please consult the California Board of Accountancy for specific requirements. Reminder from the California Board of Accountancy: “A licensee renewing a license in an active status, shall complete a minimum of 20 hours in each year of the two-year license renewal period, with a minimum of 12 hours of the required 20 hours in technical subject areas as described in subsection (a)(2).”

Table of Contents

Course Overview8

Recent New Rules8

Trend in Recent California Board of Accountancy Enforcement Actions9

CBA Regulations, Article 1- General11

Definition of Attest Services and Attest Report	11
Notification of Change of Address	11
Example of CBA Disciplinary Action	12

California Accountancy Act, Article 3 – Application of Chapter13

CBA - Accountancy ACT (ca.gov)	13
Public Accountancy Not to be Practiced Without Permit; Temporary Practice	13
Practice of public accountancy	14
Title of Certified Public Accountant	15
Inactive Status	15
Retired Status	16
Military Inactive Status	16

California Accountancy Act, Article 4 – Applications, Registrations, Permits Generally17

Public Accountancy Permits and Certificates	17
Expiration of Permits; Renewal of Unexpired Permits	17
Cancellation of Permit Not Renewed within Statutory Period; Reinstatement.	18
Supervision by Accountant Required Where Office Not Under Management of Accountant.	19
Nonlicensee Owners of Accounting Firms	19
Example of CBA Disciplinary Action	21

California Accountancy Act, Article 3.5 - Standards of Professional Conduct22

CBA - Accountancy ACT (ca.gov)	22
Use of Individual Names	22
Example of CBA Disciplinary Action	22

California Board of Accountancy Frequently Asked Questions24

Fees and Commissions	24
Example of CBA Disciplinary Action	25
Report Following Compilation, Review, or Audit of Financial Statements	26
Example of CBA Disciplinary Action	26
Restrictions on Employment with Publicly Traded Company	29
Licensee Report	29
Example of CBA Disciplinary Action	30
Disclosure of Confidential Information Prohibited	32

CBA Regulations, Article 9- Rules of Professional Conduct33

CBA - Regulations (ca.gov)	33
Client Notification.	33
Attest Client Notification Regarding Composition of Firm Ownership.	34
Firms with Nonlicensee Owners.	34
Notification of Non-Licensee Ownership.	34
Response to Board Inquiry.	35
Example of CBA Disciplinary Action	35
Discrimination Prohibited.	37
Confidential Information Defined, Exception.	37
Disclosure of Confidential Information Prohibited.	38
Sale or Transfer of Licensee's Practice (Effective 4/1/2024)	38
Discontinuance of Licensee's Practice (Effective 4/1/2024)	39
Commissions -Basic Disclosure Requirement.	40
Example of CBA Disciplinary Action	41
Incompatible Occupations/Conflict of Interest.	42
Compliance with Standards.	42
Example of CBA Disciplinary Action	43
Reporting of Restatements.	47
Contingent Fees.	47
Advertising.	48
Example of CBA Disciplinary Action	48
Independence.	50
Approval of Use of Fictitious Name.	50
Retention of Client's Records.	50
Example of CBA Disciplinary Action	51
Working Papers Defined; Retention.	52
Identification of Audit Documentation.	53
Example of CBA Disciplinary Action	53
Retention Period for Audit Documentation.	54
The Document Assembly Period and Subsequent Changes in Audit Documentation.	55
Example of CBA Disciplinary Action	56
Audit Documentation Retention and Destruction Policy.	56
Certification of Applicant's Experience	57
Review Questions	58
Answers to Review Questions	59

California Accountancy Act, Article 1.5 – Continuing Education61

CBA - Accountancy ACT (ca.gov)	61
Continuing Education Requirement	61
Rules Concerning Continuing Education	61

CBA Regulations, Article 12 – Continuing Education Rules62

Inactive license conversion	62
Renewing a license that has expired	63
CE Requirements After Conversion to an Active Status Prior to Renewal	63
Basic Continuing Education Requirements	64
Example of CBA Disciplinary Action	66

California Board of Accountancy Frequently Asked Questions67

California Accountancy Act, Article 5.5 - Audit Documentation69

CBA - Accountancy ACT (ca.gov)	69
Contents; Presumptions Raised by Improper Documentation; Retention and Destruction of Documentation	69
Adoption of Regulations by Board	70
Example of CBA Disciplinary Action	70

CBA Regulations, Article 6- Peer Review72

Definitions	72
Enrollment and Participation.	73
Firm Responsibilities.	73
Exclusions.	74
Reporting to the Board.	74
Document Submission Requirements.	74
Example of CBA Disciplinary Action	75

California Board of Accountancy Frequently Asked Questions79

California Accountancy Act, Article 6 - Disciplinary Proceedings80

CBA - Accountancy ACT (ca.gov)	80
Revocation or Suspension of Permit or Certificate; Refusal to Renew; Censure of Holder; Grounds	80
Examples of CBA Disciplinary Action	81
Restricted Practice of a Licensee; Petition for Reduction in Penalty	85
Excerpts from the Enforcement Handbook for Licensees	86

California Accountancy Act, Article 6.5 - Administrative Penalties89

CBA - Accountancy ACT (ca.gov)	89
Notice and Hearing Opportunity Required; Penalties Assessed Under More Than One Section of Article; Regulations; Penalties Additional to Other Sanctions; Money to be Deposited into Accountancy Fund	89
Penalty Amounts for Violation of Provisions of Chapter	89
Penalty Amounts for Violation of Specified Subdivisions of § 5100	90
Penalty Amounts for Specified Prohibited Acts	90
Penalties in Conjunction with Disciplinary Proceedings or Notice	90
When Judgment Obtainable	90
"Licensee"	90

California Accountancy Act, Article 7 - Prohibitions and Offenses Against the Chapter Generally91

CBA - Accountancy ACT (ca.gov)	91
Misdemeanors; Punishment; Certification of Facts to Enforcement Officer; Proceedings	91
Use of Words "Certified Public Accountants"; Evidentiary Effect; Evidence of Single Act	91
Application for Order Enjoining Illegal Acts or Practices	91

CBA Regulations, Article 12.5- Citations and Fines92

CBA - Regulations (ca.gov)	92
Citations.	92
Citation Format.	92
Fines.	92
Citation Factors.	93
Failure to Comply with Citation.	93
Appeals.	93
Unlicensed, Unregulated Practice.	94

CBA Regulations, Article 13- Denial, Suspension, and Revocation of Certificates, Permits, or Licenses94

CBA - Regulations (ca.gov)	94
Disciplinary Guidelines.	94
Mediation Guidelines.	95
Substantial Relationship Criteria.	95
Rehabilitation Criteria for Denials, Suspensions, Revocations, Restorations, Reduction of Penalty, Etc.	95
Review Questions	98
Answers to Review Questions	99

Glossary101

Index102

Course Details

Author: Joseph P. Helstrom, CPA

Joe has over 30 years of experience as a CPA in both public accounting and industry with extensive experience in financial reporting and analysis, treasury, tax, information technology, legal and regulatory matters and strategic planning. After graduation from Butler University with a degree in Accounting, Joe got his start at Ernst & Young and, subsequent to that, has served as Chief Financial Officer, Director of Treasury and Tax, Controller and Manager of Financial Planning, Reporting and Analysis for several different companies.

Publication/Revision Date: 6/14/2026

Course Exam Questions (online): 10 (multiple-choice)

Program Delivery Method: Self-Study (NASBA QAS Self-Study)

Available Formats of Course Text: Downloadable PDF, Printed/Mailed

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CPA	Overview	None	None

* This program is appropriate for professionals at all organizational levels.

Sponsor ID Numbers

National Registry of CPE Sponsors I.D.: 107615

State CPA Board Sponsor ID Numbers (where applicable)

Florida Division of Certified Public Accounting: 0004761

Hawaii Board of Public Accountancy: 14003

New York State Board for Public Accountancy: 002146

Ohio Accountancy Board: CPE .51 PSR

Pennsylvania State Board of Accountancy: PX178025

Texas State Board of Public Accountancy: 009349

Learning Objective

As a result of studying the course material, you should be able to meet the objective listed below:

Describe the regulatory requirements contained in applicable sections of the California Board of Accountancy Regulations and the California Accountancy Act.

Online Book, Online Exam

Hardcopy Book, Online Exam

$39.00