Arizona Laws 32-731. Certified public accountant firm registration requirements; performance of attest services and compilation services; definition
A. Except as provided in section 32-725, subsection G, once every two years each of the following shall pay the registration fee pursuant to section 32-729 and register with the board as a firm:
Terms Used In Arizona Laws 32-731
- Accounting services: means services that are commonly and historically performed by accountants, including recording or summarizing financial transactions, bookkeeping, analyzing or verifying financial information, reporting financial results, financial planning or providing attest services, compilation services, tax services or consulting services. See Arizona Laws 32-701
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Attest services: means the following services to be performed by the holder of a certificate issued by the board:
(a) Audits or other engagements to be performed in accordance with the statements on auditing standards adopted by the American institute of certified public accountants. See Arizona Laws 32-701
- Board: means the Arizona state board of accountancy established by section 32-702. See Arizona Laws 32-701
- Business organization: means a partnership, professional corporation, professional limited liability company, limited liability company or limited liability partnership or any other entity that is recognized by the board and that is established under the laws of any state or foreign country. See Arizona Laws 32-701
- Certified public accountant: means an individual who has been issued a certificate of authority by the board to practice as a certified public accountant or who meets the limited reciprocity privilege requirements pursuant to section 32-725. See Arizona Laws 32-701
- Compilation services: means providing a service of any compilation engagement to be performed in accordance with the statements on standards for accounting and review services. See Arizona Laws 32-701
- CPA designation: means the title "certified public accountant" or any abbreviation or grammatical derivative of the term "certified public accountant". See Arizona Laws 32-701
- Firm: means a business organization, a sole proprietorship or an individual who is registered pursuant to section 32-731. See Arizona Laws 32-701
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Jurisdiction: means , for the purposes of examination, certification, firm registration or limited reciprocity privilege, the fifty states of the United States, the District of Columbia, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands or the Commonwealth of Puerto Rico. See Arizona Laws 32-701
- Limited reciprocity privilege: means the permission to practice as a certified public accountant in this state pursuant to section 32-725 for an individual whose principal place of business is outside of this state. See Arizona Laws 32-701
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Registrant: means any certified public accountant or firm that is registered with the board. See Arizona Laws 32-701
- Sole proprietor: means the owner of a sole proprietorship. See Arizona Laws 32-701
- Sole proprietorship: means a business that is owned by one individual and that does not have a legal distinction between the owner and the business. See Arizona Laws 32-701
- Writing: includes printing. See Arizona Laws 1-215
1. A business organization that meets all of the following criteria:
(a) Has a simple majority of the ownership, in terms of direct and indirect financial interests and voting rights, that belongs to holders in good standing of certificates or licenses as certified public accountants in any jurisdiction.
(b) Has an office in this state.
(c) Either:
(i) Performs attest services or compilation services.
(ii) Uses the CPA designation in its firm name.
2. A sole proprietorship that meets all of the following criteria:
(a) Has an owner that is a certified public accountant in good standing in this state.
(b) Has an office in this state.
(c) Either:
(i) Performs attest services or compilation services.
(ii) Uses the CPA designation in its business name, unless the business name is the name of the sole proprietor as registered with the board.
3. An individual who meets both of the following criteria:
(a) Is a certified public accountant in good standing in this state.
(b) Either:
(i) Performs attest services or compilation services in this state, other than as an owner or employee of a sole proprietorship or business organization required to register under paragraph 1 or 2 of this subsection or in the capacity as an employee of a governmental entity.
(ii) Uses the CPA designation, unless the name used is the name of the individual as registered with the board.
B. Attest services or compilation services shall be provided only through a registered firm in good standing in this state. Any attest services or compilation services reports issued by a firm must be signed by a person who is certified pursuant to this chapter or qualified to exercise the limited reciprocity privilege pursuant to section 32-725, subsection G.
C. An application or registration pursuant to this section shall be made by an owner of the firm who is a certified public accountant in good standing. A firm that is registered pursuant to this section may use the CPA designation in connection with its firm name as provided for by the board in its rules.
D. A firm that applies or registers pursuant to this section shall list in its application or registration all jurisdictions in which the firm has any disciplinary actions, other than for failure to timely renew a registration, license or permit, by any other jurisdiction.
E. Except as provided in subsection F of this section, an applicant for registration or a firm registered pursuant to this section shall notify the board in writing within one month of any change in owners that results in less than a simple majority of the ownership in terms of direct and indirect financial interests and voting rights that belong to holders in good standing of certificates or licenses as certified public accountants in any jurisdiction.
F. The board or the board’s executive director may grant a reasonable period of time for the firm to take corrective action to maintain its qualifications as a firm.
G. Professional corporations that are composed of certified public accountants shall meet the requirements of Title 10, Chapter 20 and any additional nonconflicting requirements contained in this section.
H. Limited liability companies, professional limited liability companies and limited liability partnerships composed of certified public accountants shall meet the requirements of Title 29, Chapter 5 or 7 and any additional nonconflicting requirements contained in this section.
I. A registrant may not use any firm name other than the firm name that is registered with the board.
J. For the purposes of this section, "good standing" means:
1. For an individual, a status that allows the individual to use the CPA designation and to perform accounting services for a fee or other compensation.
2. For a firm, a status that allows the firm to use the CPA designation.