References
are to North Carolina Administrative Code, Title 21 - Occupational Licensing
Boards, Chapter 08 - Board of Certified Public Accountant Examiners, as amended
through January 1, 2007.
CHAPTER 08 - BOARD OF CERTIFIED
PUBLIC ACCOUNTANT EXAMINERS
SUBCHAPTER 08J - RENEWALS AND
REGISTRATIONS
08J .0101 ANNUAL RENEWAL OF CERTIFICATE, FORFEITURE,
AND REAPPLICATION
(a) All active CPAs shall renew their certificates
annually by the first day of July. The fee for such renewal is the maximum
amount allowed by statute.
(b) To renew a certificate a CPA shall submit to
the Board:
(1) a properly completed certificate renewal
application form;
(2) a properly completed CPE report, as
required by 21 NCAC 08G .0406(a); and
(3) the annual renewal fee.
(c) Upon failure of a CPA to comply with any
applicable part of Paragraph (b) of this Rule by July 1, the Board shall send
notice of such failure in the form of a demand letter to the CPA at the most
recent mailing address the Board has on file. Completed renewal application
packages shall be postmarked with proper postage not later than 30 days after
the mailing date of the demand letter, unless that date falls on a weekend, in
which case the renewal package must be postmarked or received in the Board
office on the next business day. For renewal packages sent via the U.S. Postal
Service, only a U.S. Postal Service cancellation shall be considered as the
postmark. If the renewal package is sent to the Board office via a private
delivery service, the date the package is received by the delivery service
shall be considered as the postmark. Subsequent failure of the CPA to comply
with any applicable part of Paragraph (b) of this Rule within 30 days after
such notice is mailed automatically results in forfeiture of the CPA's
certificate, as required by G.S. 93‑12(15).
(d) Upon forfeiture of a certificate, the
certificate holder is no longer a CPA and the Board shall send notice of such
forfeiture to the certificate holder by certified mail to the most recent
mailing address the Board has on file. The certificate holder shall return the
certificate to the Board office within 15 days after receipt of notice of
forfeiture or, if the certificate has been destroyed or lost, shall submit an
affidavit, on a form supplied by the Board, within 15 days of receipt of such
notice that the certificate has been destroyed or has been lost and shall be
returned to the Board if found.
(e) A person who has forfeited a certificate
pursuant to G.S. 93‑12(15) for failure to renew his or her certificate
may apply for reissuance under 21 NCAC 08J .0006.
(f) If a check or credit card authorization for
the annual renewal fee fails to clear the bank, the annual renewal shall be
deemed incomplete and returned.
08J .0105 RETIRED AND INACTIVE STATUS: CHANGE OF
STATUS
(a) A CPA may apply to the Board for change of
status to retired status or inactive status provided the CPA meets the
description of the appropriate status as defined in 21 NCAC 08A .0301.
Application for any status change may be made on the annual certificate renewal
form or another form provided by the Board.
(b) A CPA who does not meet the description of
inactive or retired as defined in 21 NCAC 08A .0301 may not be or remain on
inactive or retired status.
(c) A CPA on retired status may change to active
status by:
(1) paying the certificate renewal fee for
the license year in which the application for change of status is received; and
(2) furnishing the Board with evidence of
satisfactory completion of 40 hours of acceptable CPE courses during the 12
month period immediately preceding the application for change of status. Eight
of the required hours must be credits derived from a course or examination in
North Carolina accountancy statutes and rules (including the Code of
Professional Ethics and Conduct contained therein) as set forth in 21 NCAC 08G
.0401(a).
(d) A CPA on retired status may request change to
inactive status by application to the Board.
(e) Any individual on inactive status may change
to active status by complying with the requirements of 21 NCAC 08J .0006(c).
08J .0106 FORFEITURE OR INACTIVATION OF CERTIFICATE
AND REISSUANCE OR REINSTATEMENT
(a) A certificate holder who determines that the
certificate of qualification issued by the Board is no longer needed or desired
may request inactive status by application to the Board.
(b) A person who is inactive or has forfeited a
certificate is no longer a CPA and thus is not subject to the renewal fee or
CPE requirements contained in these Rules.
(c) A person who desires to reinstate an inactive
certificate or reissue a forfeited certificate shall make application and
provide the following to the Board:
(1) payment of the current certificate application fee;
(2) three certificates of moral character and endorsements as to
eligibility signed by CPAs holding valid certificates granted by any state or
territory of the United States or the District of Columbia; and
(3) evidence of satisfactory completion of the CPE requirement
described in 21 NCAC 08J .0005(c)(2).
(d) The certificate may be reinstated or reissued
if determined by the Board that the person meets the requirements as listed in
Paragraph (c) of this Rule.
08J .0107 MAILING ADDRESSES OF CERTIFICATE HOLDERS
AND CPA FIRMS
All certificate holders and
CPA firms shall notify the Board in writing within 30 days of any change in
address or business location.
08J .0108 CPA FIRM REGISTRATION
(a) All CPA firms shall register with the Board
within 30 days after opening a North Carolina office or beginning a new CPA
firm unless they are a professional corporation, professional limited liability
company, or registered limited liability partnership, in which case they shall
register prior to formation pursuant to 21 NCAC 08K .0104 and .0301.
(b) In addition to the registration required by
Paragraph (a) of this Rule, all CPA firms shall renew annually by January 31
with the Board upon forms provided by the Board.
(c) The information provided by the registration
shall include:
(1) Either an application for exemption from
peer review, a request to be deemed in compliance with peer review or
registration for peer review, pursuant to 21 NCAC 08M .0105;
(2) For all CPA firms not exempt from the
peer review program, with the registration immediately following its review,
the information required by 21 NCAC 08M .0106(a);
(3) For all
(4) For all partnerships or registered
limited liability partnerships, a list of all resident and nonresident partners
of the partnership;
(5) For all professional limited liability
companies, the information set forth in 21 NCAC 08K .0104(d);
(6) For all incorporated CPA firms, the
information set forth in 21 NCAC 08K .0104(d);
(7) For all CPA firms, the appropriate
registration fees as set forth in 21 NCAC 08J .0110; and
(8) For all new CPA firms, the percentage of
ownership held individually by each owner who has five percent or more of
ownership:
(A) in the new CPA firm; and
(B) at the year‑end in each CPA firm in which that owner
was an owner during the preceding two years.
(9) For all changes in ownership of a CPA
firm, the percentage of ownership held individually by each owner who has five
percent or more of ownership.
(d) All information provided for registration
with the Board shall pertain to events of and action taken during the year
preceding the year of registration. The last day of the preceding calendar year
is the "year‑end.”
(e) With regard to Paragraph (c)(3) of this Rule,
one representative of a CPA firm may file all documents with the Board on
behalf of the CPA firm's offices in
(f) With regard to Paragraph (c)(4) or (c)(5) of
this Rule, one annual listing by a representative of the partnership, registered
limited liability partnership, or professional limited liability company shall
satisfy the requirement for all owners of the CPA firm. However, each owner
shall remain responsible for compliance with this Rule. The absence of a filing
under Paragraph (c)(4) or (c)(5) of this Rule shall be construed to mean that
no partnership, registered limited liability partnership, or professional
limited liability company exists.
(g) Notice that a CPA firm has dissolved or any
change in the information required by Paragraph (c)(3) of this Rule shall be
delivered to the Board's office within 30 days after the change or dissolution
occurs. A professional corporation or professional limited liability company
which is dissolving shall deliver the Articles of Dissolution to the Board's
office within 30 days of filing with the Office of the Secretary of State.
(h) Upon written petition by a CPA firm, the
Board may grant the CPA firm a conditional registration for a period of 60 days
or less, if the CPA firm shows that circumstances beyond its control prohibited
it from registering with the Board, completing a peer review or notifying the
Board of change or dissolution pursuant to Paragraphs (a), (b), (c), and (g) of
this Rule. The Board may grant a second extension under continued extenuating
circumstances.
(i) A complete registration, as required by 21
NCAC 08J .0108(b) and (c), shall be postmarked with proper postage or received
in the Board office not later than the last day of January unless that date
falls on a weekend or federal holiday, in which case that day shall be the next
business day. Only a U.S. Postal Service cancellation shall be considered as
the postmark. If a registration is sent to the Board office via a private
delivery service, the date the package is received by the delivery service
shall be considered as the postmark.
T The annual registration fees shall be as follows:
(1) For all professional corporations or professional limited
liability companies, twenty‑five dollars ($25.00); and
(2) For all non‑incorporated CPA firms which have offices
both within and outside the state of North Carolina, whether sole
proprietorships, partnerships, or registered limited liability partnerships, an
amount equal to two thousand five hundred dollars ($2,500.00) or the number of
CPA members of the CPA firm multiplied by ten dollars ($10.00), whichever is
less.
08J .0111 COMPLIANCE WITH CPA FIRM REGISTRATION
If a CPA firm fails to
comply with any part of 21 NCAC 08J .0108, or 08J .0110 the Board may take
disciplinary action against the CPA firm's members. Such discipline may
include:
(1) a conditional license upon such conditions as the Board may
deem appropriate for non-compliance of less than 60 days;
(2) a conditional license and one hundred dollar ($100.00) civil
penalty for non-compliance in excess of 60 days but not more than 120 days;
(3) a suspension of each member's CPA certificate for a period of
not less than 30 days for non-compliance in excess of 120 days.
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