§ 74 - Firms; registration and ownership
§ 74. Firms; registration and ownership
(a) A firm shall be required to obtain registration pursuant to this section if the firm:
(1) has an office established or maintained in this state for the practice of public accounting;
(2) has an office established or maintained in this state that uses the title "CPA" or "CPA firm"; or
(3) does not have an office in this state but performs services described in subdivision 13(1)(A)(i), (iii), or (iv) of this title for a client with a home office in this state.
(b) A firm that does not have an office in this state may perform those services set forth in subdivision 13(1)(A)(ii) or (3) of this title for a client with a home office in this state may otherwise practice public accounting as authorized under this chapter, and may use the title "CPA" or "CPA firm" without a registration issued only if the firm:
(1) meets the qualifications set forth in subsections (c) and (d) of this section;
(2) meets the requirements of section 75c of this title; and
(3) performs services through an individual with practice privileges set forth under section 74c of this title.
(c) An applicant for initial registration or renewal under this section shall be required to show that, notwithstanding any other provision of law, a simple majority of the ownership of the firm, in terms of equity, creditor and voting rights of all partners, officers, members, shareholders or managers, belongs to holders of a certificate who are licensed in some state, and such partners, officers, members, shareholders or managers, whose principal place of business is in this state, and who perform professional services in this state, hold a valid license issued under this chapter. Although firms may include nonlicensee owners, the firm and its ownership must comply with the rules adopted by the board.
(d) Any CPA or RPA firm as defined in this chapter may include nonlicensee owners, provided that:
(1) The firm designates a licensee of this state or, in the case of a firm which is required to have a registration pursuant to subsection (a) of this section, a licensee who meets the requirements set forth in section 74c of this title who is responsible for the proper registration of the firm, and identifies that individual to the board.
(2) All nonlicensee owners are active individual participants in the CPA or RPA firm or affiliated entities.
(3) The firm complies with other requirements as the board may impose by rule.
(e) Any individual licensee who is responsible for supervising attest services and signs or authorizes someone to sign the accountant's report on financial statements on behalf of the firm, shall meet the experience and competency requirements set out in the professional standards for such services.
(f) Any individual exercising practice privileges pursuant to section 74c of this title, and who is responsible for supervising attest services and signs or authorizes someone to sign the accountant's report on financial statements on behalf of the firm, shall meet the experience and competency requirements set forth in the professional standards for those services.
(g) Each office in this state shall be under the supervision of a public accountant who is licensed in this state. (Added 1975, No. 89, § 13; amended 1981, No. 161 (Adj. Sess.), § 2; 1991, No. 167 (Adj. Sess.), § 10; 1997, No. 59, § 48, eff. June 30, 1997; 1999, No. 133 (Adj. Sess.), § 4; 2001, No. 129 (Adj. Sess.), § 12; eff. June 13, 2002; 2007, No. 29, § 13; 2009, No. 35, § 9.)