Practice Privilege for Non-Resident CPAs and CPA Firms

On July 27, 2009, Governor Perdue signed into law legislation that amends NCGS 93 to allow non-resident CPAs and CPA firms to perform, or offer to perform, services for North Carolina clients without obtaining a reciprocal license or filing a notification of intent to practice with the Board.

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.

Questions about practice privileges for non-resident CPAs should be sent by email to the Board’s Manager of Licensing, Buck Winslow, or the Board’s Licensing Assistant, Alice Steckenrider.

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.

Questions about practice privileges for non-resident CPA firms should be sent by e-mail to the Board’s Manager of Licensing, Buck Winslow, or the Board’s CPA Firm Licensing Assistant, Cammie Emery.

Information about mobility legislation enacted by other jurisdictions is available from the mobility section of NASBA's website.