ALJDEC decisions subject to certification as final

10F-2010.093-ACY · State Board of Accountancy · 2010-06-02

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: May 18, 2010 APPEARANCES: Ian Lewis appeared personally. The Arizona Board of Accountancy was represented by Assistant Attorney General Marc H. Harris. ADMINISTRATIVE LAW JUDGE: Brian Brendan Tully _____________________________________________________________________ Based upon the evidence of record, the Administrative Law Judge makes the following Findings of Fact, Conclusions of Law, and Recommended Order: FINDINGS OF FACT 1. The Arizona State Board of Accountancy (“Board”) is the state agency authorized by statute to regulate the profession of Certified Public Accountants in the State of Arizona. 2. In order to be eligible for certification, an applicant must demonstrate that they have met the educational and experience requirements of A.R.S § 32-721. 3. A.R.S. § 32-721(B) requires that an applicant meet the following requirements: Present satisfactory evidence from an accredited institution or a college or university maintaining standards comparable to those of an accredited institution that the applicant has completed at least one hundred fifty semester hours of education of which: a) At least thirty-six semester hours are accounting courses of which at least thirty semester hours are upper level courses. b) At least thirty semester hours are related courses.

4. On February 4, 2010, Ian Lewis (“Applicant”) filed an Application for Arizona CPA Certificate with the Board. 5. As part of the application packet, Applicant was requested to submit official transcripts from all colleges and universities which were attended. In response, Applicant disclosed and submitted academic transcripts from Arizona State University, Mesa Community College, Scottsdale Community, Rio Salado Community College, and University of Phoenix. 6. The Board’s Certification Advisory Committee (“Committee”) was established to assist the Board in the evaluation of applicants for certification by reviewing applications, transcripts and related materials, and making advisory recommendations to the Board concerning the qualifications of applicants for certification. 7. On or about February 25, 2010, the Committee reviewed Applicant’s application and supporting documentation. Upon completing its review, the Committee voted to recommend that the Board deny Applicant’s certification on the grounds that he had failed to meet the education requirements. Applicant’s transcripts only documented 27 semester hours of upper level accounting course. The Committee determined that ACC 349 from University of Phoenix is a duplicate of ACC 350 from Arizona State University. 8. On March 22, 2010, the Board reviewed Applicant’s application and voted to accept the Committee’s recommendation to deny his application. The Board concurred with the Committee’s finding that Applicant was short 3 semester hours of upper level accounting courses. On that date, the Board issued an Order denying Applicant’s application for certification, but made the point that “this denial does not preclude Applicant from re-applying for certification once Applicant has completed the requirements of A.R.S. § 32-721.” 9. By letter dated March 26, 2010, Applicant appealed the Board’s denial.

10. The Board forwarded Applicant’s appeal to the Office of Administrative Hearings, an independent agency, for an evidentiary hearing. 11. Applicant contends that there is no statutory authority for the Board to deny his application for certification due to duplicative coursework. 12. Barbara J. Muller, C.P.A. is a Senior Lecturer of Accountancy at Arizona State University. Ms. Muller earned a B.S. degree in accounting and an M.B.A. degree. She has taught accounting at Arizona State University for 19 years. Ms. Muller is a member of the Committee. 13. Ms. Muller testified that Committee members adopted a Certification Advisory Committee Statement Policy on Duplicate Accounting Coursework in 2005, which provides that “[i]f the Committee determines that any courses are duplicates, the Committee does not credit the duplicate coursework toward” the semester hour requirements. 14. Ms. Muller was one of two Committee members who reviewed Applicant’s application. 15. Ms. Muller testified that ACC 349 from the University of Phoenix is a duplicate of ACC 350 from Arizona State University. 16. Ms. Muller further testified that the educational requirements are designed to foster broad based accounting applicants for certification. 17. Applicant’s contention that he should be given credit for the duplicate coursework is not persuasive. CONCLUSIONS OF LAW 1. The Board has jurisdiction over the subject matter in Applicant’s appeal. 2. Pursuant to A.R.S. § 41-1092.07(G) (1), A.A.C. R4-1-344, and A.A.C. R2- 19-119(B), Applicant has the burden of proof in this appeal. The standard of proof is preponderance of the evidence. A.A.C. R2-19- 119(A). 3. Applicant failed to sustain his burden of establishing that he earned the required 30 semester hours of upper level accounting courses necessary to qualify for public accounting certification, as required by A.R.S. § 32-721(B). The evidence of record established that Applicant earned 27 semester hours of upper level accounting coursework. 4. The Board properly exercised its authority to deny Applicant’s application for certification due to Applicant’s failure to establish his completion of the required 30 semester hours of non-duplicative upper level accounting courses. RECOMMENDED ORDER Applicant’s appeal in this matter is dismissed. The Board’s Order of Denial denying Applicant’s application for certification is upheld and affirmed.

Done this day, June 2, 2010.

/s/ Brian Brendan Tully Administrative Law Judge

Transmitted electronically to:

Monica L. Petersen, Executive Director Arizona State Board of Accountancy -----------------------

Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826