309-B:8 Firm Permits to Practice; Attest Experience and Peer Review. –
I. The board shall grant or renew permits to practice as a CPA firm to applicants that demonstrate their qualifications therefor in accordance with this section.
(a) The following are required to hold a permit issued under this section:
(1) Any firm with an office in this state performing attest services as defined in RSA 309-B:3, I, or compilation services under RSA 309-B:3, III-a;
(2) Any firm with an office in this state that uses the designation "CPAs" or "CPA firm"; or
(3) Any firm that does not have an office in this state but offers or renders attest services as described in RSA 309-B:3 for a client having its home office in this state, unless it meets each of the following requirements:
(A) It has the qualifications described in paragraphs III and VIII of this section;
(B) It performs such services through an individual with practice privileges under RSA 309-B:6; and
(C) It can lawfully do so in the state where said individuals with practice privilege have their principal place of business.
(b) A firm which is not subject to the requirements of subparagraphs (a)(3) or (b) of this paragraph may perform other professional services while using the title "CPA" or "CPA firm" in the state without a license issued under this section only if:
(1) It performs such services through an individual with practice privileges under RSA 309-B:6; and
(2) It can lawfully do so in the state where said individuals with practice privileges have their principal place of business.
II. Permits shall be initially issued and renewed for periods of not more than 3 years. Annual periods shall coincide with the state's fiscal year, beginning on July 1 and ending on the subsequent June 30. Applications for such permits shall be made in such form and in the case of applications for renewal, between such dates, as the board shall by rule specify. A permit shall remain valid for the period of time that the board requires to act on the application for renewal, provided that the renewal was submitted in accordance with the rules adopted by the board. The board shall grant or deny any application no later than 90 days after the application is filed in proper form. In any case where the applicant seeks the opportunity to show that issuance or renewal of a permit was mistakenly denied or where the board is not able to determine whether it should be granted or denied, the board may issue to the applicant a provisional permit, which shall expire 90 days after its issuance or when the board determines whether or not to issue or renew the permit for which application was made, whichever shall first occur.
III. An applicant for initial issuance or renewal of a permit to practice under this section shall be required to show that:
(a) Notwithstanding any other provision of law, at least a simple majority of the ownership of the firm, in terms of financial interests and voting rights of all partners, officers, shareholders, members or managers, belongs to holders of a certificate who are licensed in some state of the United States and such partners, officers, shareholders, members, or managers, whose principal place of business is in this state, and who perform professional services in this state, hold a valid certificate issued under RSA 309-B:5 or the corresponding provisions of prior law or are public accountants licensed under RSA 309-B:9. Firms may include non-licensee owners but the firm and its ownership shall comply with rules adopted by the board. For firms of public accountants, at least a simple majority of the ownership of the firm, in terms of financial interests and voting rights, shall belong to holders of registration under RSA 309-B:9. An individual who has practice privileges under RSA 309-B:6 and who performs services for which a firm permit is required under RSA 309-B:6, IV shall not be required to obtain a certificate from this state pursuant to RSA 309-B:5.
(b) Any CPA or PA firm may include non-licensee owners provided that:
(1) The firm designates a licensee of this state, or in the case of a firm which must have a permit pursuant to RSA 309-B:6, IV a licensee of another state who meets the requirements in RSA 309-B:6, I, who is responsible for the proper registration of the firm and identifies that individual to the board.
(2) All non-licensee owners are of good moral character and are active individual participants in the CPA or PA firm or affiliated entities.
(3) The firm complies with such other requirements as the board may impose by rule.
(c) Any individual licensee and any individual qualifying for practice privileges under RSA 309-B:6 who is responsible for supervising attest services, and signs or authorizes someone to sign the accountant's report on behalf of the firm, shall meet the appropriate experience requirements for such services as required by professional standards for such services.
(d) Any individual licensee and any individual qualifying for practice privileges under RSA 309-B:6 who signs or authorizes someone to sign the accountant's report on behalf of the firm shall meet the experience requirement of RSA 309-B:8, III(c).
IV. [Repealed.]
V. The board shall charge a fee for each application for initial issuance or renewal of a permit under this section in an amount prescribed by the board by rule.
VI. Applicants for initial issuance or renewal of permits under this section shall in their application list all states in which they have applied for or hold permits as CPA firms and list any past denial, revocation, or suspension of a license or permit by any other state, and each holder of or applicant for a permit under this section shall notify the board in writing, within 30 days after its occurrence, of any change in the identities of partners, officers, shareholders, members, or managers whose principal place of business is in this state, any change in the number or location of offices within the state, any change in the identity of the persons in charge of such offices, and any issuance, denial, revocation, or suspension of license or permit by any other state.
VII. Firms which fall out of compliance with the provisions of this section due to changes in firm ownership or personnel, after receiving or renewing a license, shall take corrective action to bring the firm back into compliance as quickly as possible. The board may grant a reasonable period of time for a firm to take such corrective action. Failure to bring the firm back into compliance within a reasonable period as defined by the board will result in the suspension of the firm permit.
VIII. The board shall by rule require, on either a uniform or random basis, as a condition to renewal of permits under this section, that applicants undergo, no more frequently than once every 3 years, peer reviews conducted in such manner as the board shall specify, and such peer review shall include a verification by the reviewer that individuals in the firm who are responsible for attest services and who sign or authorize someone to sign the accountant's report on the financial statements on behalf of the firm meet the experience requirements set out in professional standards for such services, provided that such rule:
(a) Shall be adopted reasonably in advance of the time when it first becomes effective;
(b) Shall include reasonable provision for compliance by an applicant showing that it has, within the preceding 3 years, undergone a peer review that is a satisfactory equivalent to peer review generally required pursuant to this paragraph;
(c) Shall require, with respect to peer reviews contemplated by subparagraph (b), that they be subject to oversight by an oversight body established or sanctioned by board rule, which body shall periodically report to the board on the effectiveness of the review program under its charge, and provide to the board a listing of firms that have participated in a peer review program that is satisfactory to the board; and
(d) Shall require, with respect to peer reviews contemplated by subparagraph (b), that the peer review processes be operated and documents maintained in a manner designed to preserve confidentiality, and that neither the board nor any third party, other than the peer review oversight body, shall have access to documents furnished or generated in the course of such peer review. This subparagraph shall not be construed to limit the board's subpoena power under RSA 309-B:11, I; nor shall it be construed to prevent the board from obtaining from the applicant, its peer review report, the related letter of comment, and the related letter of response.
Source. 1999, 236:1. 2001, 96:1. 2009, 155:14, 15, eff. July 1, 2009. 2018, 69:5, 6, 9, II, eff. July 24, 2018.