Delaware Board of Accountancy: Roles, Standards, and Procedures

The Delaware Board of Accountancy is integral to maintaining the integrity and professionalism of accounting practices within the state. By establishing guidelines and enforcing standards, the board ensures accountants adhere to ethical principles and maintain public trust. Financial reporting and auditing are foundational for businesses and individuals alike, making the board’s role essential.

Role and Responsibilities

The Delaware Board of Accountancy regulates and oversees the accounting profession within the state. A primary responsibility is the issuance and renewal of licenses for Certified Public Accountants (CPAs). This involves evaluating applicants to ensure they meet educational and experiential prerequisites as outlined in Delaware Code Title 24, Chapter 1. Applicants must complete 150 semester hours of college education and pass the Uniform CPA Examination to meet these standards.

The board establishes ethical and professional standards for accountants, adopting rules aligned with Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). This framework ensures consistency and reliability in financial reporting, which stakeholders rely on for accurate information.

Additionally, the board monitors compliance with continuing professional education (CPE) requirements. CPAs must complete 80 hours of CPE every two years, including ethics training, to stay current with changing regulations, tax codes, and industry practices. This ensures accountants can effectively serve their clients.

Licensing Requirements

Becoming a licensed accountant in Delaware requires meeting specific education, examination, and experience standards. Candidates must earn a Bachelor’s degree in accounting or a related field and complete 150 semester hours of education, preparing them for the profession’s challenges.

The Uniform CPA Examination, administered by the American Institute of Certified Public Accountants (AICPA), tests candidates’ proficiency in auditing, financial accounting, regulation, and business concepts. All sections must be passed within an 18-month rolling period.

In addition to passing the exam, candidates must gain relevant work experience under a licensed CPA. One year of experience in public accounting, industry, or government work is generally required, providing practical insights and reinforcing theoretical knowledge.

Continuing Professional Education (CPE)

Continuing Professional Education (CPE) is vital for accountants in Delaware to maintain and improve professional skills. As financial regulations and technology evolve, CPE bridges the gap between foundational education and current demands. The Delaware Board of Accountancy mandates 80 hours of CPE biennially.

CPE allows accountants to tailor learning experiences to their career paths and client needs. Course topics range from tax code updates to accounting software workshops, enabling CPAs to explore specialized fields such as forensic accounting or international taxation.

Ethics training is a mandatory component of CPE, reinforcing the accounting profession’s ethical foundation. These sessions address ethical dilemmas and case studies, enhancing decision-making capabilities and affirming accountants’ commitment to public trust.

Complaint and Disciplinary Procedures

The Delaware Board of Accountancy addresses complaints and enforces disciplinary actions to maintain professional standards. Complaints can be filed by clients, peers, or other stakeholders who suspect unethical or substandard conduct by a licensed accountant. The board reviews each complaint to determine its validity under Delaware Code Title 24.

If warranted, a formal inquiry is initiated, involving evidence collection, interviews, and evaluation of adherence to professional guidelines. Accountants are given the opportunity to respond to allegations and provide evidence or explanations. This ensures fairness and a thorough understanding of the circumstances before any actions are taken.

Reciprocity for Out-of-State Accountants

The Delaware Board of Accountancy facilitates practice expansion for out-of-state accountants through reciprocity provisions. This allows qualified accountants to work in Delaware without undergoing the full licensing process again.

Applicants must hold a valid CPA license in good standing from another U.S. jurisdiction with requirements substantially equivalent to Delaware’s, as determined by the National Association of State Boards of Accountancy (NASBA) and the AICPA. Professional experience must also align with Delaware’s standards.

Public Access to Decisions

Transparency is a cornerstone of the Delaware Board of Accountancy’s operations. Decisions, including disciplinary actions, are documented and made accessible to the public, fostering trust and accountability within the profession.

Summaries of case outcomes and disciplinary actions are published on the board’s official website. This practice deters misconduct and educates accountants on the consequences of non-compliance, reinforcing ethical standards. By making this information available, the board ensures practitioners understand the importance of adhering to professional guidelines.