license.htm

Licensing

General Information

The Licensing section of the Board is responsible for processing initial and renewal applications for CPA certification as well as initial and renewal CPA firm registration. The Licensing section also administers and monitors the Continuing Professional Education (CPE) compliance program and the peer review program.

Buck Winslow, Manager

(919) 733-1421

buckw@nccpaboard.gov

Alice Steckenrider, Licensing Specialist

Individual CPA licensure applications, renewals, & changes of status

(919) 733-1422

alices@nccpaboard.gov

Cammie Emery, Licensing Assistant

CPE, CPE sponsors, peer review, CPA firm registrations, notifications, & renewals

(919) 733-1423

cemery@nccpaboard.gov

Mailing Address: NC State Board of CPA Examiners, Attn.: Licensing, PO Box 12827, Raleigh, NC 27605-2827

Street Address: NC State Board of CPA Examiners, Attn.: Licensing, 1101 Oberlin Road, Suite 104, Raleigh, NC 27605-1169.

Fax Number: (919) 733-4209, Attn.: Licensing

Unauthorized Use of CPA Title

North Carolina accountancy law is unique in that anyone can practice public accountancy by paying a privilege license fee to the NC Department of Revenue. However, anyone residing in this State who is not licensed by the NC State Board of CPA Examiners as a CPA is restricted to using only the term "accountant," and only the term accountant in connection with his or her name on all reports, letters of transmittal, or advice, and on all stationery and documents used in connection with his or her services as an accountant, and must refrain from the use in any manner of any other title or designation in such practice while in this State.

It is unlawful for any person who has not received a certificate of qualification or not been granted a practice privilege under NCGS 93-10 admitting the person 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 [NCGS 93-3].

It is 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 or been granted a practice privilege admitting each member of the firm, copartnership, or association 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 qualification under this section [NCGS 93-4].

It is 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 [NCGS 93-5].

A person licensed as a CPA in another jurisdiction who moves to North Carolina with the intention of practicing as a CPA (whether in public practice, industry, government, or education) must obtain a certificate of qualification from the Board prior to using the CPA title in any way in this State. Oral or written statements such as, “I am a licensed CPA in another jurisdiction” when used in connection with the individual’s name on all reports, letters of transmittal, or advice, and on all stationery and documents used in connection with the individual’s services as an accountant do not exempt the individual from obtaining a certificate of qualification from the Board.

Non-resident CPAs who wish to practice in North Carolina may do so only in accordance with NCGS 93-10, Practice Privileges.

Change of Address

Without a valid home and/or business address on file for each certificate holder or CPA firm, the Board is unable to disseminate vital information to its licensees. Changes in home and/or business address may be submitted to the Board on-line. If you prefer not to submit your address change on-line, you may submit a Change of Address form by mail, fax, or e-mail. Board staff cannot accept an oral change of address. NOTE: Address changes submitted to the NCACPA have no effect on your address listed with this Board.

State Board of CPA Examiners

PO Box 12827

Raleigh, NC 27605-2827

Fax: (919) 733-4209

E-Mail: vanessiaw@nccpaboard.gov

Eligibility

In North Carolina, an original certificate will be issued to any person who is, or declares an intention to become, a citizen of the United States or is a resident alien; is eighteen (18) years of age or older; is of good moral character; meets the specified educational and experience requirements; and passes all sections of the Uniform CPA Examination.

A person applying for a certificate of qualification as a CPA must file an application and experience affidavit(s) with the Board on forms supplied by the Board. He or she must also supply documentation that proves he or she has met the statutory and regulatory requirements for certification. Three certificates of good moral character signed by properly licensed CPAs must be submitted with the application for a CPA certificate.

Requirements for Certification

Within one year prior to applying for certification, all certificate applicants must complete a course on the North Carolina Accountancy Statutes and Rules, including the Rules of Professional Ethics and Conduct. The Board suggests that applicants meet the requirement within the last few months prior to applying for a certificate.

The North Carolina Association of CPAs (NCACPA) [Phone (919) 469-1040 or 1-800-722-2836] offers two qualifying courses. a one-day, group-study seminar, "Ethics Principles and Professional Responsibilities," and an on-line self-study course, “North Carolina Law Course: Ethics, Principles, and Professional Responsibility for North Carolina License Applicants.”

· “North Carolina Accountancy Law Course: Ethics, Principles, and Professional Responsibilities” – 8-hour group-study course

North Carolina Association of CPAs (NCACPA)

Telephone: (919) 469-1040 or 1-800-722-2836

NOTE: The course is generally taken by certificate applicants, however, the course also satisfies the requirement in 21 NCAC 08G .0410. In addition, this eight-hour group study course also satisfies the Board’s requirement that at least eight hours of the annual 40-hour CPE requirement be non-self-study [21 NCAC 08G .0409(c)]. For a list of course dates and locations, go to the NCACPA’s web site and click on “CPE & Events,” then click on “Ethics.”

· “North Carolina Accountancy Law Course: Ethics, Principles, and Professional Responsibilities” – 8 hour on-line self-study course

North Carolina Association of CPAs (NCACPA)

Telephone: (919) 469-1040 or 1-800-722-2836

The NCACPA has partnered with passonline.com for this course. You may also access the course by going to the NCACPA’s web site.

NOTE: The course is generally taken by certificate applicants, however, the course also satisfies the requirement in 21 NCAC 08G .0410.

The Board will not issue a certificate to an applicant unless the applicant has acquired the appropriate work experience. The work experience requirement is one (1) year experience in the public practice of accountancy under the direct supervision of a properly licensed CPA; or one (1) year experience in the field of accountancy under the direct supervision of a properly licensed CPA; or four (4) years experience in the field of accounting; or four (4) years experience teaching accounting in an accredited college or university; or four (4) years experience self-employed in accounting.

If the applicant does not meet the one-year requirement, he or she must meet the four-year requirement. In calculating work experience, time worked under the supervision of a CPA may be used. However, this time does not count as more than the actual time worked.

An applicant for licensure must have satisfactorily completed at least 150 semester hours of college-level coursework including a bachelor’s degree with a concentration in accounting [What Is A Concentration in Accounting?] before the Board will issue a certificate to the applicant. The 150 semester hours must include coursework as defined in 21 NCAC 08F .0410.

The applicant for certification must submit to the Board experience affidavits from all of the relevant employers. If the experience was not acquired while employed by a CPA firm, the candidate must also submit details of his or her work experience and supervision.

Experience affidavits for part-time work (less than 30 hours each week) must contain a record of the actual part-time hours the applicant performed accounting services only for each week of part-time employment.

Certificate Status

A North Carolina CPA's certificate status may fall into one of several categories including active, retired, or inactive.

"Active," when used to refer to the certificate status of an individual, is defined as a person who possesses a North Carolina certificate of qualification.
"Inactive," when used to refer to the certificate status of a person, is defined as a person who has voluntarily chosen the inactive status, is no longer licensed by the Board, and who does not use the title "certified public accountant" nor does he or she allow anyone else to refer to him or her as a "certified public accountant."
"Retired," when used to refer to the certificate status of a person, is defined as a person possessing a North Carolina certificate of qualification who does not receive any earned compensation for current personal services in any job whatsoever and has no intention to return to active status; however this does not preclude volunteer services for which the retired CPA receives no direct or indirect compensation so long as the retired CPA does not sign any documents, related to such services, as a CPA.

An active CPA may apply to the Board for a change to either retired or inactive status by completing the appropriate paperwork provided by the Board. An individual who has voluntarily placed him or herself on inactive status is no longer considered a CPA and is not subject to the renewal fees or CPE requirements for active CPAs. A retired CPA may reinstate to active status by notifying the Board and completing the appropriate paperwork. An individual on inactive status may change to active status by completing the appropriate paperwork, paying the current certificate application fee, submitting three certificates of moral character and endorsements of eligibility, and furnishing the Board with documentation of the completion of the necessary hours of CPE, including the required course on the North Carolina accountancy statutes and rules.

Reciprocal Certificates and Temporary Permits to Practice

The Board may issue a reciprocal CPA certificate to a properly licensed CPA from another jurisdiction who now resides in North Carolina or whose principal place of business is in North Carolina and who meets the North Carolina requirements for licensure. Please note that reciprocal certification is based on the individual’s licensure to practice public accountancy in another jurisdiction. If an individual applies for and receives a reciprocal certificate for North Carolina, he or she is not required to maintain his or her out-of-state license as part of this State's CPA licensing requirements. However, he or she may choose to remain active in another jurisdiction.

A CPA from another jurisdiction who now resides in North Carolina or whose principal place of business in North Carolina who desires to use the CPA title in North Carolina must apply for a temporary permit and a reciprocal certificate. He or she must furnish the Board with an affidavit signed by an official of the CPA licensing board in the jurisdiction in which the CPA is currently licensed to practice public accounting, showing both the certificate number and that the applicant is in good standing. The applicant must provide evidence of his or her grades on the Uniform CPA Examination through an affidavit signed by an official of a CPA licensing board that can verify the grades.

Upon approval of a temporary permit, the Board will issue the applicant a statement confirming that the CPA is in good standing in the jurisdiction issuing the CPA's certificate and is entitled temporarily to use the CPA title and engage in the public practice of accountancy in North Carolina for a stated period. The stated period will expire 120 days after issue or upon issuance of the individual's reciprocal certificate, whichever comes first. The Board grants temporary permits to practice only to applicants for reciprocal certificates pending their qualification under 21 NCAC 08H .0101.

If you have questions regarding reciprocal certificates or temporary permits to practice, please contact Alice Steckenrider.

Practice Privilege (Individuals)

Individual Practice Privilege

Effective July 27, 2009, an individual whose principal place of business is outside North Carolina is granted the privilege to perform or offer to perform services, whether in person or by mail, telephone or electronic means, in North Carolina as a CPA without notice to the North Carolina State Board of CPA Examiners, the submission of any other documentation or the payment of any fee if the individual meets all of the following conditions:

Holds a valid unrevoked certificate as a CPA or its equivalent issued by another state, a territory of the US, or the District of Columbia;
Holds a valid and unrevoked license or permit to practice as a CPA issued by another state, a territory of the US, or the District of Columbia;
Has passed the Uniform CPA Examination; and
Has not been convicted of a felony under the laws of the US, any state, a territory of the US, of the District of Columbia and has never been convicted of a crime, an essential element of which is dishonesty, deceit, or fraud unless the jurisdiction in which the individual is licensed has determined the felony or other crime has no effect on the individual's license.

Individual Consent to Jurisdiction

Effective July 27, 2009, an individual who qualifies for practice privilege and exercise the privilege by performing or offering to perform services as a CPA in North Carolina simultaneously consents as a condition to the grant of this privilege to:

Comply with the laws of North Carolina, the provisions of the chapter and rules adopted by the North Carolina State Board of CPA Examiners;
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; and
Be subject to personal jurisdiction, subject matter jurisdiction, and disciplinary authority of the North Carolina State Board of CPA Examiners.

If you have questions regarding the individual practice privilege, please contact Buck Winslow or Alice Steckenrider.

Foreign Accountants

A foreign accountant must meet all requirements for certification in effect at the time of application. North Carolina and the Institute of Chartered Accountants of Ontario, Nova Scotia, Manitoba, New Brunswick, British Columbia, and Saskatchewan have established mutual findings of substantial equivalence, which allows for licensure between the jurisdictions.

Use of Title

A person who holds a CPA certificate from another jurisdiction, but not from this Board, and who temporarily enters North Carolina for the purpose of teaching either a college or CPE course; delivering any other lecture; or moderating any panel discussion may use the CPA title provided that each instance in which the CPA title is used, the jurisdiction, territory or district granting the certificate is disclosed.

Any person who holds a CPA certificate from another jurisdiction and who temporarily enters this State for the sole purpose of rendering advisory or consulting services to persons employed by the same employer as the CPA (including parent, sister, or subsidiary entities) is not required to obtain licensure in North Carolina. Out-of-state CPAs neither residing nor employed in North Carolina who enter the State for the sole purpose of performing a peer review or quality review for a North Carolina licensee are not required to obtain licensure to perform the review.

Annual Certificate Renewal

All active North Carolina CPAs are required to renew their certificates annually prior to July 1. (Online renewal is available March-June each year.)To renew a certificate, the licensee must submit a properly completed certificate renewal application form which shows the number of CPE hours completed in the previous calendar year and the annual renewal fee of $50.00. If a CPA fails to renew his or her certificate prior to July 1, the Board will send a letter of demand to the CPA at his or her last known mailing address. Failure to submit the completed renewal package to the Board within 30 days of the mailing date of the demand letter automatically results in forfeiture of the certificate. Upon forfeiture of the certificate, the individual is no longer a CPA and the Board will send, by certified mail, a notice to the individual that requires him or her to return the actual certificate to the Board within fifteen (15) days. A person who has forfeited his or her certificate for failure to renew may apply to the Board for reinstatement.

If you have questions regarding certificate renewal, please contact Alice Steckenrider or Buck Winslow.

Continuing Professional Education (CPE)

As a requirement for continued licensure, the Board requires all active CPAs to complete a specific number of CPE hours, calculated in accordance with the Board's rule on the computation of CPE credits, by December 31 of each year. As part of the annual CPE requirement (generally 40 hours), each active CPA must complete a Board-approved ethics course and at least 8 hours of non-self-study CPE.

To receive credit for a CPE course, an individual must complete the course, the course must meet the requirements of the Board's rules on CPE, and the course must increase the professional competency of the CPA. There are no CPE requirements for retired or inactive CPAs.

Any CPE hours completed in the calendar year in which a certificate is approved may be used for that year's requirement even if the hours were completed before the certificate was granted. When a CPA has completed more than the required number of CPE hours in one calendar year, the extra hours, not to exceed 20 hours, may be carried forward and treated as hours earned in the following year. Please note that carry-forward hours may not be used to satisfy the ethics CPE requirement or the non-self-study CPE requirement.

A licensee may check his or her carry-forward CPE hours by looking up his or her own record using the “Licensee Search” function of the Board’s web site. If there is a discrepancy in the number of carry-forward hours, please contact Cammie Emery at (919) 733-1423 or by e-mail at cemery@nccpaboard.gov.

Any CPE hours used to satisfy the requirements for change of status, for reinstatement, or for application for a new certificate may also be used to satisfy the annual CPE requirement. Each CPA must maintain records that substantiate the CPE credits claimed for the current year and for each of the four calendar years prior to the current year. Forms required to report CPE hours are included in the online renewal process and the Board may audit information submitted by a licensee who applies for a renewal license.

The Board does not approve specific CPE courses, but does register sponsors of CPE courses. Registered sponsors are those that have signed an agreement with the Board stipulating they will conduct programs in accordance with the Board's rules. The sponsor determines whether the courses it offers are conducted according to the CPE rules. Some sponsors offer courses that are designed to meet the CPE requirements as well as courses that are not intended for CPE purposes. Sponsors of CPE programs that are listed in good standing on the National Registry of CPE Sponsors maintained by the National Association of State Boards of Accountancy (NASBA) are also considered approved sponsors although they are not required to sign an agreement form with the Board. If you want to know if a sponsor is registered with this Board, please go to the on-line listing. However, if you want to know if a course is intended for CPE purposes, you must contact the sponsor directly.

The Board may review documentation furnished by the CPE sponsor on specific courses. However, this documentation review is not intended to determine if a course is acceptable for CPE purposes. Instead, the documentation review is done to determine if the sponsor understands and appears to be complying with the terms of the Sponsor Agreement.

Failure of an approved sponsor to comply with the terms of the CPE program sponsor agreement is grounds for the Board to terminate the agreement, remove the sponsor's name from the Board list of approved sponsors, and notify the public of the revocation of approval as a CPE sponsor.

Credit for a CPE course will not be allowed by the Board unless the course is in one of the seven fields of study recognized by the Board; is actually developed by an individual who has education and work experience in the course subject matter; and uses instructional techniques and materials that are current and accurate.

In addition to courses provided by registered sponsors, courses taken at regionally accredited colleges and universities; formal correspondence courses; formal education programs conducted within an association of accounting firms; technical sessions at meetings of national and state accounting organizations; and professional development programs of national and state accounting organizations may qualify as acceptable continuing education.

CPE credit may also be granted for teaching a CPE course or authoring a publication as long as the preparation to teach or write increases the CPA's professional competency and is in one of the seven fields of study approved by the Board.

Please note that the Board does not allow CPE credit for reading or researching accounting journals, periodicals, or reference guides and manuals. The Board also does not allow tests designed to assess the comprehension of reading material to count as CPE credit.

21 NCAC 08G .0409 requires that at least eight (8) hours of CPE credit earned in any calendar year must be non-self-study, excluding any carry-forward used to meet the minimum requirement. In addition, the amount of credit for all self-study courses is based on the average completion time—in 50-minute hours—as determined by the sponsor, regardless of whether the course is interactive or not. Questions regarding the recommended hours should be directed to the course sponsor.

21 NCAC 08G .0410, Professional Ethics and Conduct CPE, states:

(a) As part of the annual CPE requirement, all active CPAs shall complete CPE on professional ethics and conduct as set out in 21 NCAC 08N. They shall complete either two hours in a group study format or four hours in a self-study format. These courses shall be approved by the Board pursuant to 21 NCAC 08G .0400. This CPE shall be offered by a CPE sponsor registered with the Board pursuant to 21 NCAC 08G .0403(a) or (b).

(b) A non-resident licensee whose primary office is in North Carolina must comply with Paragraph (a) of this Rule. All other non-resident licensees may satisfy Paragraph (a) of this Rule by completing the ethics requirements in the jurisdiction in which he or she is licensed as a CPA and works or resides. If there is no ethics CPE requirement in the jurisdiction where he or she is licensed and currently works or resides, he or she must comply with Paragraph (a) of this Rule.

21 NCAC 08G .0406, Compliance with CPE Requirements, states:

(a) All active CPAs shall file with the Board a completed CPE reporting form by the July 1 renewal date of each year.

(b) If a CPA fails to complete the CPE requirements prior to the end of the previous calendar year but the CPA has completed them by June 30, the Board may:

(1) issue a letter of warning for the first such failure within a five calendar year period; and

(2) deny the renewal of the CPA's certificate for a period of not less than 30 days and until the CPA meets the reinstatement requirements set forth in 21 NCAC 08J .0106 for the second such failure within a five calendar year period.

If you have questions regarding CPE, please contact Cammie Emery .

CPA Firm Registration

Pursuant to 21 NCAC 08J .0108, a CPA firm, unless it is a professional corporation (PC), professional limited liability company (PLLC), or registered limited liability partnership (LLP), must register with the Board within 30 days after opening an office in this State. CPA firms that are professional corporations, professional limited liability companies, or registered limited liability partnerships must register with the Board prior to the formation of the CPA firm. In addition to the initial CPA firm registration, all North Carolina CPA firms are required to renew with the Board by January 31 each year.

All information provided for registration must pertain to the events and actions taken during the year preceding the year of registration. The last day of the preceding calendar year is considered the "year-end." One representative of a CPA firm may file all registration documents for each of the CPA firm's offices in North Carolina, but responsibility for compliance with the Board's rules remains with the individual office supervisors or managers.

One annual listing by a representative of a partnership, registered limited liability partnership, or professional limited liability company will satisfy the requirements of all partners or members of the CPA firm. The absence of an annual filing will be interpreted to mean that no partnership, registered limited liability partnership, or professional limited liability company exists. If a CPA firm has dissolved or if any of the information provided to the Board during registration changes, the Board must be notified in writing within 30 days after the dissolution or change occurs.

If a CPA firm fails to comply with any part of the Board's rules regarding CPA firm registration or peer review, the Board may take disciplinary action against the CPA firm's members. Such disciplinary actions may include:

· a conditional license for less than 60 days of non-compliance;

· a conditional license plus a $100.00 civil penalty for more than 60 days, but less than 120 days of non-compliance; or

· a suspension for at least 30 days of each member's CPA certificate for more than 120 days of non-compliance.

If you have questions regarding CPA firm registration, please contact Cammie Emery.

Practice Privilege (Firms)/Firm Notice of Intent to Practice

Firm Practice Privilege, Consent to Jurisdiction, and Firm Notification Requirements

Effective July 27, 2009, a CPA firm whose principal place of business is outside North Carolina and that has no office in North Carolina is granted the privilege to perform, or offer to perform, services, whether in person or by mail, telephone or electronic means, in North Carolina as a CPA firm without notice to the North Carolina State Board of CPA Examiners, submission of any other documentation, or payment of any fee, except as otherwise provided below. A firm that exercises the privilege afforded simultaneously consents as a condition to the grant of the privilege to:

Comply with the laws of North Carolina, the provisions of the chapter and rules adopted by the North Carolina State Board of CPA Examiners;
Be subject to personal jurisdiction, subject matter jurisdiction and disciplinary authority of the North Carolina State Board of CPA Examiners; and
Provide notice without fee to the Board if any individual with the firm who has been granted privileges in North Carolina to practice as a CPA performs any of the following services for a client in North Carolina:

A financial statement audit or other engagement performed in accordance with Statements on Auditing Standards (SAS);
An examination of prospective financial information performed in accordance with Statements on Standards for Attestation Engagements (SSAE); or
An engagement performed in accordance with the Public Company Accounting Oversight Board (PCAOB) auditing standards.

If you have questions regarding CPA firm registration or the firm practice privilege/Intent to Practice, please contact Buck Winslow or Cammie Emery.

Peer Review Program

Pursuant to 21 NCAC 08M, a CPA or CPA firm providing any of the following services to the public must participate in an approved peer review program:

· audits;

· reviews of financial statements;

· compilations of financial statements; or

· agreed-upon procedures of written assertions.

A CPA or CPA firm not providing any of the services listed above is exempt from peer review until the issuance of the first report provided to a client. If your CPA firm does not have an office in North Carolina and does not provide, to North Carolina clients, services which require participation in a peer review program, the firm is not required to participate in a peer review program.

Within 30 days of issuing one of the reports listed above, the CPA or CPA firm must enroll in an approved peer review program. Approved peer review programs include:

· AICPA Center for Public Company Audit Firms;

· AICPA Peer Review Program; or

· Any other peer review program which the Board determines in advance to be substantially equivalent to the AICPA Center for Public Company Audit Firms; or AICPA Peer Review Program.

To enroll in the AICPA Peer Review program, please contact the NCACPA’s Peer Review Program Coordinator by telephone at (919) 469-1040, ext. 136.

The Board does not grant extensions to complete the peer review; you must contact the administrator of the peer review program to request an extension. If you are participating in the AICPA Peer Review program and need to request an extension, please contact the AICPA’s Peer Review Program Coordinator by telephone at (919) 469-1040, ext. 136.

A CPA firm registered for peer review must provide to the Board the following:

· peer review due date;

· year-end date;

· Final Letter of Acceptance from peer review program within 60 days of the date of the letter; and

· A package to include the Peer Review Report, Letter of Comments, Letter of Response and Final Letter of Acceptance for all adverse and second modified reports issued by a peer review program within 60 days of the date of the Final Letter of Acceptance.

A peer review is not complete until the Final Letter of Acceptance is issued by the peer review program with the new peer review date.

If a CPA firm which is required to participate in a peer review program fails to comply with 21 NCAC 08M .0105(c), (d), or (g), the Board may take disciplinary action against the CPA firm's members which may include:

· a conditional license and one hundred dollars ($100.00) civil penalty upon conditions as the Board may deem appropriate for non-compliance of less than 60 days;

· a conditional license and two hundred fifty dollars ($250.00) civil penalty for non-compliance in excess of 60 days but not more than 120 days; and

· a suspension of each member's CPA certificate for a period of not less than 30 days and a civil penalty of five hundred dollars ($500.00) for non-compliance in excess of 120 days.

If you have questions regarding peer review, please contact Cammie Emery.