309-B:14 Unlawful Acts. –
I. Only licensees, individuals who have practice privileges under RSA 309-B:6, and firms exempt from the permit requirement under RSA 309-B:8, may issue a report on financial statements of any other person, firm, organization, or governmental unit or otherwise offer to render or render any attest service. This restriction shall not prohibit any act of a public official or public employee in the performance of that person's duties as such; or prohibit the performance by any person from the use of accounting skills, or analyzing and preparing projections of financial data in the performance of management advisory services, financial advisory services, consulting services, the preparation of tax returns, or the furnishing of advice on tax matters. This restriction also does not apply to non-licensees who may prepare financial statements and issue reports thereon which do not purport to be in compliance with the Statements on Standards for Accounting and Review Services (SSARS).
II. Licensees, individuals who have practice privileges under RSA 309-B:6, and firms exempt from the permit requirement under RSA 309-B:8, performing attest services shall provide those services pursuant to statements on standards relating to those services adopted by reference or directly by the board.
III. No person not holding a valid certificate or a practice privilege under RSA 309-B:6 shall use or assume the title or designation "certified public accountant," or the abbreviation "CPA" or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such person is a certified public accountant.
IV. No firm shall provide attest services or assume or use the title or designation "certified public accountants," or the abbreviation "CPAs," or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such firm is a CPA firm unless (1) the firm holds a valid permit issued under RSA 309-B:8 or is in compliance with a valid exemption from the permit requirement pursuant to RSA 309-B:8.
V. No person shall assume or use the title or designation "public accountant," or the abbreviation "PA," or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such person is a public accountant unless such person holds a valid registration issued under RSA 309-B:9.
VI. No person or firm not holding a valid certificate, permit, or registration issued under RSA 309-B:7, 309-B:8, or 309-B:9, unless they qualify for a practice privilege under RSA 309-B:6 or are exempt from the permit requirement under RSA 309-B:8, shall provide attest services or assume or use the title or designation "public accountant," the abbreviation "PA," or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such firm is composed of public accountants.
VII. No person or firm not holding a valid certificate, permit, or registration issued under RSA 309-B:7, 309-B:8, or 309-B:9, or qualifying for a practice privilege under RSA 309-B:6, or an exemption from the permit requirement under RSA 309-B:8, shall assume or use the title or designation "certified accountant," "chartered accountant," "enrolled accountant," "licensed accountant," "registered accountant," "accredited accountant," or any other title or designation likely to be confused with the titles "certified public accountant" or "public accountant," or use any of the abbreviations "CA," "LA," "RA," "AA," or similar abbreviation likely to be confused with the abbreviations "CPA" or "PA." The title "Enrolled Agent" or "EA" may only be used by individuals so designated by the Internal Revenue Service.
VIII. Persons not licensed under this chapter, unless they qualify for a practice privilege under RSA 309-B:6 or are exempt from the permit requirement under RSA 309-B:8, shall not use language in any statement relating to the affairs of a person or entity which is conventionally used by licensees in reports on financial statements or any attest service. In this regard, the board shall issue safe harbor language that persons not licensed under this chapter, or not qualifying for a practice privilege under RSA 309-B:6, or not exempt from the permit requirement under RSA 309-B:8 may use in connection with such financial information. Such disclaimer language shall include the following:
"I (we) have prepared the accompanying (financial statements) of (name of entity) as of (time period) for the (period) then ended. This presentation is limited to preparing in the form of financial statements information that is the representation of management (owners).
I (we) have not audited or reviewed the accompanying financial statements and accordingly do not express an opinion or any form of assurance on them."
IX. No person or firm not holding a valid certificate, permit, or registration issued under RSA 309-B:7, 309-B:8, or 309-B:9, or qualifying for a practice privilege under RSA 309-B:6, or an exemption from the permit requirement under RSA 309-B:8, shall assume or use any title or designation that includes the words "accountant," "auditor," or "accounting," in connection with any other language, including the language of a report, that implies that such person or firm holds such a certificate, permit, or registration or has special competence as an accountant or auditor. This paragraph shall not prohibit any officer, partner, or employee of any firm or organization from affixing a signature to any statement in reference to the financial affairs of such firm or organization with any wording designating the position, title, or office that person holds, nor shall it prohibit any act of a public official or employee in the performance of that person's duties. Nothing in this chapter shall prohibit non-licensees who perform services involving the use of accounting skills from describing such services as "bookkeeping", "tax preparation" or "general accounting" services, or describing themselves as "accountants."
X. No persons holding a certificate or registration, individual qualifying for a practice privilege under RSA 309-B:6, or firm holding a permit under this chapter or an exemption from the permit requirement under RSA 309-B:8, shall use a professional or firm name or designation that is misleading about the legal form of the firm, or about the persons or number of persons who are partners, officers, members, managers, or shareholders of the firm, or about any other matter; provided, however, that names of one or more of the former partners, members, managers or shareholders may be included in the name of a firm or its successor.
XI. No provision of this section shall have any application to a person holding a certification, designation, degree, license, or permit granted in a foreign country entitling the holder to engage in the practice of public accountancy or its equivalent in such country, whose activities in this state are limited to the provision of professional services to persons or firms who are residents of, governments of, or business entities of the country in which the person holds such entitlement, who performs no attest services as defined, and who issues no reports with respect to the information of any other persons, firms, or governmental units in this state, and who does not use in this state any title or designation other than the one under which that person practices in such country, followed by a translation of such title or designation into English, if it is in a different language, and by the name of such country.
XII. No holder of a certificate issued under RSA 309-B:7 or a registration issued under RSA 309-B:9 shall perform attest services described in RSA 309-B:3, I(a) or compilation services described in RSA 309-B:3, III-a in any firm that does not hold a valid permit issued under RSA 309-B:8.
XIII. (a) A licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, shall not for a commission recommend or refer to a client any product or service, or for a commission recommend or refer any product or service to be supplied by a client, or receive a commission, when the licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, also performs for that client an attest service as defined in RSA 309-B:3, I or a compilation of a financial statement when the licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, expects, or reasonably might expect, that a third party will use the financial statement and the compilation report does not disclose a lack of independence.
(b) A licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, who is not prohibited by this section from performing services for or receiving a commission and who is paid or expects to be paid a commission shall disclose that fact to any person or entity to whom the licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, recommends or refers a product or service to which the commission relates.
(c) Any licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, who accepts a referral fee for recommending or referring any service of a licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, to any person or entity or who pays a referral fee to obtain a client shall disclose such acceptance or payment to the client.
XIV. (a) A licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, shall not:
(1) Perform for a contingent fee any professional services for, or receive such a fee from a client for whom the licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, or the licensee's firm or firm of the individual qualifying for a practice privilege under RSA 309-B:6 performs an attest service as defined in RSA 309-B:3, I or a compilation of a financial statement when the licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, expects, or reasonably might expect, that a third party will use the financial statement and the compilation report does not disclose a lack of independence; or
(2) Prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client; provided however that a licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, may prepare an amended return or claim for refund for a contingent fee if that licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, has a reasonable expectation that the amended return or claim for refund will be the subject of substantive review by the taxing authority.
(b) The prohibition in subparagraph (a) applies during the period in which the licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, is engaged to perform any of the services listed in subparagraph (a) and the period covered by any historical financial statements involved in any such listed services.
(c) Except as otherwise provided in this subparagraph, a contingent fee is a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. Solely for purposes of this section, fees are not regarded as being contingent if fixed by courts or other public authorities, or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies. The fees of a licensee, individual qualifying for a practice privilege under RSA 309-B:6, or firm exempt from the permit requirement under RSA 309-B:8, may vary depending, for example, on the complexity of services rendered.
XV. Nothing within this section shall prohibit a practicing attorney or firm of attorneys from preparing or presenting records or documents customarily prepared by an attorney or firm of attorneys in connection with the attorney's professional work in the practice of law, or from billing a client or receiving a fee from a client in conformity with the professional conduct rules that govern the practice of law by such attorney or firm of attorneys.
XVI. Notwithstanding any provision of this section, it shall not be a violation of this section for a firm which does not hold a valid permit under RSA 309-B:8 and which does not have an office in this state to provide its professional services in this state if it complies with the requirements of RSA 309-B:8, I(b) or (c), whichever is applicable.
Source. 1999, 236:1. 2009, 155:16, eff. July 1, 2009. 2018, 69:7, 8, eff. July 24, 2018.