36-20B-33. Compliance with certain standards required.
An applicant for initial issuance or renewal of a permit to practice under this chapter shall comply with the following:
(1)Notwithstanding any other provision of law, a majority of the owners of the firm, in terms of financial interests and voting rights, are holders of a certificate and are licensed in some state, and the owners whose principal place of business is in this state and who perform professional services in this state hold a valid certificate issued under this chapter or the corresponding provision of prior law or are public accountants registered under this chapter. Firms may include nonlicensee owners. However, the firms shall be controlled by the majority vote of owners who are holders of a certificate and who are licensed in some state, and the control may not be relinquished by contract, such as through veto rights held by owners of less than a majority of the owners. The firm and its ownership shall comply with rules promulgated by the board pursuant to chapter 1-26. For firms of public accountants, at least a majority of the owners of the firm shall be holders of registrations under this chapter. An individual who has practice privileges under the provisions of §36-20B-66 or 36-20B-67 who performs services for which a firm permit is required pursuant to §36-20B-70 is not required to obtain a certificate from this state pursuant to §36-20B-13;
(2)Any CPA or PA firm as defined in this chapter may include nonlicensee owners if the firm designates a licensee of this state, or, in the case of a firm that is required to obtain a permit pursuant to §36-20B-70, a licensee of another state who meets the requirements set forth in §36-20B-66 or 36-20B-67, who is responsible for the proper registration of the firm and identifies non-license owners to the board;
(3)All nonlicensee owners are active individual participants in the CPA or PA firm or an affiliated entity;
(4)The firm complies with such other requirements as the board may establish by rule promulgated pursuant to chapter 1-26;
(5)Any individual licensee or individual with practice privileges under the provisions of §36-20B-66 or 36-20B-67 who is responsible for supervising attest or compilation services and signs or authorizes another individual to sign the accountant's report on behalf of the firm shall meet the experience requirements set out in the professional standards for the services; and
(6)Any individual licensee or individual with practice privileges under the provisions of §36-20B-66 or 36-20B-67 who signs or authorizes an individual to sign the accountant's report on behalf of the firm shall meet the experience requirement of this chapter.
An applicant for initial issuance or renewal of a permit to practice shall register the firm within this state with the board and show that all attest and compilation services rendered in this state are under the charge of a person holding a valid certificate issued under this chapter or the corresponding provision of prior law or some other state.
Source: SL 2002, ch 179, §34; SL 2009, ch 185, §8; SL 2013, ch 175, §4; SL 2019, ch 170, §3.