Chapter 93 Certified Public Accountants
References
are to General Statutes of
§ 93-1. Definitions; practice of law.
(a) Definitions. – As used in this
Chapter certain terms are defined as follows:
(1) An "accountant" is a person engaged
in the public practice of accountancy who is not a certified public accountant
as defined in this Chapter.
(2) "Board" means the Board of
Certified Public Accountant Examiners as provided in this Chapter.
(3) A "certified public accountant" is a person who
holds a certificate as a certified public accountant issued to him under the
provisions of this Chapter.
(5) A person is engaged in the "public practice of
accountancy" who holds himself out to the public as a certified public
accountant or an accountant and in consideration of compensation received or to
be received offers to perform or does perform, for other persons, services
which involve the auditing or verification of financial transactions, books,
accounts, or records, or the preparation, verification or certification of
financial, accounting and related statements intended for publication or
renders professional services or assistance in or about any and all matters of
principle or detail relating to accounting procedure and systems, or the recording,
presentation or certification and the interpretation of such service through
statements and reports.
(b) Practice of Law. – Nothing in this Chapter shall be construed as authorizing certified public accountants or accountants to engage in the practice of law, and such person shall not engage in the practice of law unless duly licensed so to do.
§ 93-2. Qualifications. Any person who is a citizen of the United States, has declared the intention of becoming a citizen, is a resident alien, or is a citizen of a foreign jurisdiction which extends to citizens of this State like or similar privileges to be examined or certified, and who is over 18 years of age and of good moral character, and who has received from the State Board of Certified Public Accountant Examiners a certificate of qualification to practice as a certified public accountant shall be licensed to practice and be styled and known as a certified public accountant.
§ 93-3. Unlawful use of title "certified public
accountant" by individual. It shall
be unlawful for any person who has not received a certificate of qualification
admitting him to practice as a certified public accountant to assume or use
such a title, or to use any words, letters, abbreviations, symbols or other
means of identification to indicate that the person using same has been
admitted to practice as a certified public accountant.
§ 93-4. Use of title by firm. It shall be unlawful for any firm, copartnership, or association to assume or use the title of certified public accountant, or to use any words, letters, abbreviations, symbols or other means of identification to indicate that the members of such firm, copartnership or association have been admitted to practice as certified public accountants, unless each of the members of such firm, copartnership or association first shall have received a certificate of qualification from the State Board of Certified Public Accountant Examiners admitting him to practice as a certified public accountant; provided, however, that the Board may exempt those persons who do not actually practice in or reside in the State of North Carolina from registering and receiving a certificate of qualifications under this section.
§ 93-5. Use of title by corporation. It shall be unlawful for any corporation to assume or use the title of
certified public accountant, or to use any words, letters, abbreviations,
symbols or other means of identification to indicate that such corporation has
received a certificate of qualification from the State Board of Certified
Public Accountant Examiners admitting it to practice as a certified public
accountant.
§ 93-6. Practice as accountants permitted; use of misleading titles prohibited. It shall be unlawful for any person to engage in the public practice of accountancy in this State who is not a holder of a certificate as a certified public accountant issued by the Board, unless such person uses the term "accountant" and only the term "accountant" in connection with his name on all reports, letters of transmittal, or advice, and on all stationery and documents used in connection with his services as an accountant, and refrains from the use in any manner of any other title or designation in such practice.
§ 93-8. Public practice of accounting by corporations
prohibited. It shall be unlawful for any certified
public accountant to engage in the public practice of accountancy in this State
through any corporate form, except as provided in General Statutes Chapter 55B.
§ 93-9. Assistants need not be certified. Nothing contained in this Chapter shall be construed to prohibit the employment by a certified public accountant or by any person, firm, copartnership, association, or corporation permitted to engage in the practice of public accounting in the State of North Carolina, of persons who have not received certificates of qualification admitting them to practice as certified public accountants, as assistant accountants or clerks: Provided, that such employees work under the control and supervision of certified public accountants and do not certify to anyone the accuracy or verification of audits or statements; and provided further, that such employees do not hold themselves out as engaged in the practice of public accounting.
§ 93-10. Persons certified in other states. An individual
whose principal place of business is outside this State may be granted the
privilege to perform or offer to perform services in this State as a certified
public accountant if the individual meets all of the following conditions:
(1) Holds a valid and unrevoked certificate as a certified public
accountant, or its equivalent, issued by another state, a territory of the
(2) Holds a valid and unrevoked license or permit to practice as
a certified public accountant issued by another state, a territory of the
(3) Notifies the State Board of Certified Public Accountant
Examiners that the person intends to perform or offers to perform services in
this State as a certified public accountant.
(4) Agrees to comply with the provisions of this Chapter and the
rules adopted by the Board regarding notification and practice.
(5) Consents to have an administrative notice of hearing served
on the licensing board in the individual's principal state of business,
notwithstanding the individual notice requirements of G.S. 150B‑38.
(6) Pays an annual fee not to exceed fifty dollars ($50.00).
§ 93-11. Not applicable to
officers of State, county or municipality. Nothing
herein contained shall be construed to restrict or limit the power or authority
of any State, county or municipal officer or appointee engaged in or upon the
examination of the accounts of any public officer, his employees or appointees.
§ 93-12. Board of Certified Public Accountant
Examiners. The name of the State Board of Accountancy is hereby changed to State
Board of Certified Public Accountant Examiners and said name State Board of
Certified Public Accountant Examiners is hereby substituted for the name State
Board of Accountancy wherever the latter name appears or is used in Chapter 93
of the General Statutes. Said Board is created as an agency of the State of
North Carolina and shall consist of seven members to be appointed by the
Governor, five persons to be holders of valid and unrevoked certificates as
certified public accountants issued under the provisions of this Chapter and
two persons who are not certified public accountants who shall represent the
interest of the public at large. Members of the Board shall hold office for the
term of three years and until their successors are appointed. Appointments to
the Board shall be made under the provisions of this Chapter as and when the
terms of the members of the present State Board of Accountancy expire;
provided, that all future appointments to said Board shall be made for a term
of three years expiring on the thirtieth day of June. All Board members serving
on June 30, 1980, shall be eligible to complete their respective terms. No
member appointed to a term on or after July 1, 1980, shall serve more than two
complete consecutive terms. The powers and duties of the Board shall be as
follows:
(1) To elect from its members a president, vice‑president
and secretary‑treasurer. The members of the Board shall receive
compensation and reimbursement for travel expenses in accordance with G.S. 93B‑5.
(2) To employ legal counsel, clerical and technical assistance
and to fix the compensation therefore, and to incur such other expenses as may
be deemed necessary in the performance of its duties and the enforcement of the
provisions of this Chapter. Upon request the Attorney General of North Carolina
will advise the Board with respect to the performance of its duties and will
assign a member of his staff, or approve the employment of counsel, to
represent the Board in any hearing or litigation arising under this Chapter.
The Board may, in the exercise of its discretion, cooperate with similar boards
of other states, territories and the District of Columbia in activities
designed to bring about uniformity in standards of admission to the public
practice of accountancy by certified public accountants, and may employ a
uniform system of preparation of examinations to be given to candidates for
certificates as certified public accountants, including the services and
facilities of the American Institute of Certified Public Accountants, or of any
other persons or organizations of recognized skill in the field of accountancy,
in the preparation of examinations and assistance in establishing and
maintaining a uniform system of grading of examination papers, provided
however, that all examinations given by said Board shall be adopted and
approved by the Board and that the grade or grades given to all persons taking
said examinations shall be determined and approved by the Board.
(3) To formulate rules for the government of the Board and for
the examination of applicants for certificates of qualification admitting such
applicants to practice as certified public accountants.
(4) To hold written, oral, and computer‑based examinations
of applicants for certificates of qualification at least once a year, or more
often, as may be deemed necessary by the Board.
(5) To issue certificates of qualification admitting to practice
as certified public accountants, each applicant who, having the qualifications
herein specified, has passed an examination to the satisfaction of the Board,
in "accounting," "auditing," "business law," and
other related subjects.
A person
is eligible to take the examination given by the Board, or to receive a
certificate of qualification to practice as a certified public accountant, if
the person is a citizen of the United States, has declared the intention of
becoming a citizen, is a resident alien, or is a citizen of a foreign
jurisdiction which extends to citizens of this State like or similar privileges
to be examined or certified, is 18 years of age or over, and is of good moral
character.
To be
eligible to take the examination given by the Board, a person shall submit
evidence satisfactory to the Board that the person holds a bachelors degree
from a college or university that is accredited by one of the regional
accrediting associations or from a college or university determined by the
Board to have standards that are substantially equivalent to a regionally
accredited institution. The degree studies shall include a concentration in
accounting as prescribed by the Board or shall be supplemented with courses
that are determined by the Board to be substantially equivalent to a
concentration in accounting.
The Board
may, in its discretion, waive the education requirement of any candidate if the
Board is satisfied from the result of a special written examination given the
candidate by the Board to test the candidate's educational qualifications that
the candidate is as well qualified as if the candidate met the education
requirements specified above. The Board may provide by regulation for the
general scope of such examinations and may obtain such advice and assistance as
it deems appropriate to assist it in preparing, administering and grading such
special examinations.
To be
eligible to receive a certificate of qualification to practice as a certified
public accountant, a person shall submit evidence satisfactory to the Board
that:
a. The
person has completed 150 semester hours and received a bachelors degree with a
concentration in accounting and other courses that the Board may require from a
college or university that is accredited by a regional accrediting association
or from a college or university determined by the Board to have standards that
are substantially equivalent to those of a regionally accredited institution.
b. The
person has the endorsement as to the person's eligibility of three certified
public accountants who currently hold licenses in any state or territory of the
United States or the District of Columbia.
c. The
person has one of the following:
1. One
year's experience in the field of accounting under the direct supervision of a
certified public accountant who currently holds a valid license in any state or
territory of the United States or the District of Columbia.
2. Four
years of experience teaching accounting in a four‑year college or
university accredited by one of the regional accrediting associations or in a
college or university determined by the Board to have standards substantially
equivalent to a regionally accredited institution.
3. Four
years of experience in the field of accounting.
4. Four
years of experience teaching college transfer accounting courses at a community
college or technical institute accredited by one of the regional accrediting
associations.
5. Any
combination of such experience determined by the Board to be substantially
equivalent to the foregoing.
The Board
may permit persons otherwise eligible to take its examinations and withhold
certificates until the person has had the required experience.
(6) In its discretion to grant certificates of qualification
admitting to practice as certified public accountants such applicants who shall
be the holders of valid and unrevoked certificates as certified public accountants,
or the equivalent, issued by or under the authority of any state, or territory
of the United States or the District of Columbia, when in the judgment of the
Board the requirements for the issuing or granting of such certificates or
degrees are substantially equivalent to the requirements established by this
Chapter: Provided, however, that the state or political subdivision of the
United States upon whose certificate the reciprocal action is based grants the
same privileges to holders of certificates as certified public accountants
issued pursuant to the provisions of this Chapter. The Board, by general rule,
may grant temporary permits to applicants under this subsection pending their
qualification for reciprocal certificates.
(7) To charge for each examination provided for in this Chapter a
fee not exceeding four hundred dollars ($400.00). In addition to the
examination fee, if the Board uses a testing service for the preparation,
administration, or grading of examinations, the Board may charge the applicant
the actual cost of the examination services. The applicant shall pay all fees
and costs associated with the examination at the time the application is filed
with the Board. Examination fees and costs shall not be refunded unless the
Board deems the applicant ineligible for examination.
(7a) To charge for each initial certificate of qualification
provided for in this Chapter a fee not exceeding one hundred fifty dollars
($150.00).
(7b) To require an annual registration of each firm and to charge
an annual registration fee not to exceed two hundred dollars ($200.00) for each
firm with one office, and a fee not to exceed twenty‑five dollars
($25.00) for each additional North Carolina office of the firm, to defray the
administrative costs of accounting practice review programs. The Board may
charge an annual fee not to exceed twenty‑five dollars ($25.00) for each
firm application for exemption from the accounting practice review program.
(8) To require the renewal of all certificates of qualification
annually on the first day of July, and to charge an annual renewal fee not to
exceed one hundred dollars ($100.00).
(8a) To require the registration of certified public accountant
firms which have offices both within and outside of North Carolina, and the
payment by such firms of an annual registration fee based on the total number
of partners in each such firm, but not to exceed two thousand five hundred
dollars ($2,500) per firm per year.
(8b) To formulate rules for the continuing professional education
of all persons holding the certificate of certified public accountant, subject
to the following provisions:
a. After
January 1, 1983, any person desiring to obtain or renew a certificate as a
certified public accountant must offer evidence satisfactory to the Board that
the person has complied with the continuing professional education requirement
approved by the Board. The Board may grant a conditional license for not more
than 12 months for persons who are being licensed for the first time, or moving
into North Carolina, or for other good cause, in order that the person may
comply with the continuing professional education requirement.
b. The
Board shall adopt rules for the administration of the continuing professional
education requirement with a minimum number of hours of 20 and a maximum number
of hours of 40 per year, and the Board may exempt persons who are retired or
inactive from the continuing professional education requirement. The Board may
also permit any certified public accountant to accumulate hours of continuing
professional education in any calendar year of as much as two additional years
annual requirement in advance of or subsequent to the required calendar year.
c. Any
applicant who offers satisfactory evidence on forms promulgated by the Board
that the applicant has participated in a continuing professional education
program of the type required by the Board shall be deemed to have complied with
this subdivision.
(8c) The Board may formulate rules and regulations for report
review and peer review of audits, reviews, compilations, and other reports
issued on financial information in the public practice of accountancy of all
firms, as herein defined, subject to the following provisions:
a. After
June 30, 1992, any firm desiring to obtain or maintain a registration as a firm
must offer satisfactory evidence to the Board that such firm has complied with
the peer review and report review requirements approved by the Board; provided,
however, that the Board shall give to every firm subject to this section not
less than 12 months advance notice of each peer review and report review
required of the firm.
b. The
Board may grant a conditional registration for not more than 24 months for
firms which are being registered for the first time, or moving into North
Carolina, or for other good cause, in order that such firm may comply with the
report review and peer review requirements, and in order that the Board may
develop a system of review rotation among the various firms that must comply
with this section.
c. The
peer review and report review shall be valid for a minimum of three years
subject to the power of the Board to require remedial action by any firm with a
deficiency in the review according to the rules established by the Board.
d. The
Board shall promulgate rules and regulations for the administration of the
report review and peer review requirements and the Board shall exempt firms
that show to the satisfaction of the Board that they are not engaged in the
public practice of accountancy or that the scope of their practice does not
come within the peer review and report review guidelines established by the
Board.
e. Any
firm that offers satisfactory evidence to the Board that the firm has
satisfactorily participated in and successfully completed a peer review or a
report review of the type required by the Board shall be deemed to have
complied with this section and the Board shall promulgate rules and regulations
for the administration of this procedure.
f. For
purposes of this section, a firm means an entity, sole proprietorship,
partnership, registered limited liability partnership, professional limited
liability company, or professional corporation through which one or more
certificate holders engage in the public practice of accountancy through an
office.
(9) Adoption of Rules of Professional Conduct; Disciplinary
Action. – The Board shall have the power to adopt rules of professional
ethics and conduct to be observed by certified public accountants in this
State. The Board shall have the power to revoke, either permanently or for a
specified period, any certificate issued under the provisions of this Chapter
to a certified public accountant or to censure the holder of any such
certificate or to assess a civil penalty not to exceed one thousand dollars
($1,000) for any one or combination of the following causes:
a. Conviction
of a felony under the laws of the United States or of any state of the United
States.
b. Conviction
of any crime, an essential element of which is dishonesty, deceit or fraud.
c. Fraud
or deceit in obtaining a certificate as a certified public accountant.
d. Dishonesty,
fraud or gross negligence in the public practice of accountancy.
e. Violation
of any rule of professional ethics and professional conduct adopted by the
Board.
Any
disciplinary action taken shall be in accordance with the provisions of Chapter
150B of the General Statutes. The clear proceeds of any civil penalty assessed
under this section shall be remitted to the Civil Penalty and Forfeiture Fund
in accordance with G.S. 115C‑457.2.
(12) To submit annually on or before the first day of May to the
Secretary of Revenue the names of all persons who have qualified under this
Chapter as certified public accountants. Privilege license issued under G.S.
105‑41 shall designate whether such license is issued to a certified
public accountant or an accountant.
(13) The Board shall keep a complete record of all its proceedings
and shall annually submit a full report to the Governor.
(14) All fees collected on behalf of the Board and all receipts of
every kind and nature, as well as the compensation paid the members of the
Board and the necessary expenses incurred by them in the performance of the
duties imposed upon them, shall be reported annually to the State Treasurer.
All fees and other moneys received by the Board pursuant to the provisions of
the General Statutes shall be kept in a separate fund by the treasurer of the
Board, to be held and expended only for such purposes as are proper and
necessary to the discharge of the duties of the Board and to enforce the
provisions of this Chapter. No expense incurred by the Board shall be charged
against the State.
(15) Any certificate of qualification issued under the provisions
of this Chapter, or issued under the provisions of Chapter 157 of the Public
Laws of 1913, shall be forfeited for the failure of the holder to renew same
and to pay the renewal fee therefore to the State Board of Accountancy within
30 days after demand for such renewal fee shall have been made by the State
Board of Accountancy.
(16) To apply to the courts, in its own name, for injunctive relief
to prevent violations of this Chapter or violations of any rules adopted
pursuant to this Chapter. Any court may grant injunctive relief regardless of
whether criminal prosecution or any other action is instituted as a result of
the violation. A single violation is sufficient to invoke the injunctive relief
under this subdivision.
(17) The Board shall have the power to acquire, hold, rent,
encumber, alienate, and otherwise deal with real property in the same manner as
a private person or corporation, subject only to approval of the Governor and
the Council of State as to the acquisition, rental, encumbering, leasing, and
sale of real property. Collateral pledged by the Board for an encumbrance is
limited to the assets, income, and revenues of the Board.
§ 93‑12.1.
Effect of new requirements. Any person who applies to the
Board of Certified Public Accountant Examiners before July 1, 1983, to take the
examination, who meets the educational requirement as it existed prior to June
4, 1979, and complies with any of the experience requirements of this Chapter
shall be deemed to have met the prerequisites to taking such examination.
§ 93‑12.2.
Board records are confidential. Records, papers, and other documents containing information collected
or compiled by the Board, its members, or employees, as a result of a
complaint, investigation, inquiry, or interview in connection with an application
for examination, certification, or registration, or in connection with a
certificate holder's professional ethics and conduct, shall not be considered
public records within the meaning of Chapter 132 of the General Statutes. Any
notice or statement of charges against a certificate holder or applicant, or
any notice to a certificate holder or applicant of a hearing to be held by the
Board is a public record, even though it may contain information collected and
compiled as a result of a complaint, investigation, inquiry, or interview
conducted by the Board. If any record, paper, or other document containing
information collected and compiled by the Board is admitted into evidence in a
hearing held by the Board, it shall then be a public record within the meaning
of Chapter 132 of the General Statutes.
§ 93-13. Violation of Chapter;
penalty. A violation of G.S. 93-3, 93-4, 93-5, 93-6, or 93-8 shall be a Class 1
misdemeanor. EFFECTIVE December
1, 2007.
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