(a) 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.
(1) The following must hold a permit issued under this Section: (A) any firm with an office in Guam performing attest
services as defined in § 35103(b) of this Chapter;

(B) any firm with an office in Guam that uses the title ‘CPA’
or ‘CPA firm’; or

(C) any firm that does not have an office in Guam but performs attest services described in § 35103(b)(1), (3), (4), or (5) of this Chapter for a client having its home office in Guam.

(2) A firm which does not have an office in Guam may perform services described in § 35103(b)(2) or § 35103(f) for a client having its home office in Guam and may use the title ‘CPA’ or ‘CPA firm’ without a permit issued under this Section only if:

(A) it has the qualifications described in Subsections (d) and
(i) of this Section; and

(B) it performs such services through an individual with practice privileges under § 35122 of this Chapter.

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(3) A firm which is not subject to the requirements of Subsections (a)(1)(C) or (a)(2) of this Section may perform other professional services while using the title ‘CPA’ or ‘CPA firm’ in Guam without a permit issued under this Section only if:

(A) it performs such services through an individual with practice privileges under § 35122 of this Chapter; and

(B) it can lawfully do so in the State where said individuals with practice privileges have their principal place of business.

(b) Firm Permits to Practice shall be initially issued and renewed for periods of not more than three years but in any event expiring on the last day of June in the year of expiration. Applications for Firm Permits to Practice shall be made in such form, and in the case of applications for renewal, between such dates as the Board may by rule specify, and the Board shall grant or deny any such application no later than sixty (60) days after the application is filed in proper form.

(c) In any case where the applicant seeks the opportunity to show that issuance or renewal of a Firm Permit to Practice 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 Firm Permit to Practice, which shall expire ninety (90) days after its issuance or when the Board determines whether or not to issue or renew the Firm Permit to Practice for which application was made, whichever shall first occur.

(d) An applicant for initial issuance or renewal of a Firm Permit to
Practice under this Section shall be required to show that:

(1) Notwithstanding any other provision of law, a simple majority of the ownership of the CPA 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, and such partners, officers, shareholders, members, or managers, whose principal place of business is in Guam, and who perform professional services in Guam hold a valid license issued under § 35106 or the corresponding provision of prior law. Although CPA firms may include non-licensee owners, the CPA firm and its ownership must comply with rules promulgated by the Board. An individual who has practice privileges under § 35122 who performs services for which a firm permit is required under § 35122(a)(4) shall

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not be required to obtain a license from Guam pursuant to § 35106 of this Chapter.

(2) Any CPA firm as defined in this Chapter may include non- licensee owners, provided that:

(A) the CPA firm designates a licensee of Guam, or in the case of a firm which must have a permit pursuant to § 35122(a)(4), a licensee of another State who meets the requirements set out in §§ 35122(a)(1) or 35122(a)(2), who is responsible for the proper registration of the firm and identifies that individual to the Board;

(B) all non-licensee owners are of good moral character and active individual participants in the CPA firm or affiliated entities; and

(C) the CPA firm complies with such other requirements as the Board may impose by rule.

(3) Any individual licensee and any individual granted practice privileges under this Chapter who is responsible for supervising attest or compilation services and signs or authorizes someone to sign the accountant’s report on behalf of the CPA firm, shall meet the competency requirements set out in the professional standards for such services as prescribed by the Board by rule.

(4) Any individual licensee and any individual granted practice privileges under this Chapter who signs or authorizes someone to sign the accountant’s report on behalf of the CPA firm shall meet the competency requirement of Subsection (d)(3) of this Section.

(e) An applicant for initial issuance or renewal of a Firm Permit to Practice under this Section shall be required to register each office of the firm within Guam with the Board and to show that all attest and compilation services as defined herein rendered in Guam are under the charge of a person holding a valid license issued under either § 35106, a corresponding provision of prior Guam law, or the law of another state.

(f) The Board shall charge a fee for each application for initial issuance, or renewal, of a permit under § 35107 in an amount prescribed by the Board by rule.

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(g) Applicants for initial issuance or renewal of Firm Permits to Practice under § 35107 shall in their applications 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 permit by any other state, and each holder of or applicant for a Firm Permit to Practice under § 35107 shall notify the Board in writing, within thirty (30) days after its occurrence, of any change in the identities of owners, partners, officers, shareholders, members or managers whose principal place of business is in Guam, any change in the number or location of offices within Guam, any change in the identity of the persons in charge of such offices, and any issuance, denial, revocation, or suspension of a license or permit by any other state.

(h) CPA Firms which fall out of compliance with the provisions of § 35107 due to changes in CPA firm ownership or personnel, after receiving or renewing a Firm Permit to Practice , shall take corrective action to bring the CPA firm back into compliance as quickly as possible. The Board may grant a reasonable period of time for a CPA firm to take such corrective action. Failure to bring the CPA firm back into compliance within a reasonable period as defined by the Board will result in the suspension or revocation of the Firm Permit to Practice.

(i) The Board shall by rule require, as a condition to renewal of Firm Permits to Practice under § 35107, that applicants undergo, no more frequently than once every three (3) years, peer reviews conducted in such manner as the Board shall specify, and such review shall include a verification that individuals in the CPA firm who are responsible for supervising attest and compilation services and sign or authorize someone to sign the report on the financial statements on behalf of the CPA firm meet the competency requirements set out in the professional standards for such services, provided that any such rule:

(1) shall be promulgated reasonably in advance of the time when it first becomes effective;

(2) shall include reasonable provision for compliance by an applicant showing that it has, within the preceding three (3) years, undergone a peer review that is a satisfactory equivalent to peer review generally required pursuant to this § 35107(I);

(3) may require, with respect to peer reviews contemplated by § 35107(i)(2), that they be subject to oversight by the Board or an oversight body established or sanctioned by Board rule, which body

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shall periodically report to the Board on the effectiveness of the review program under its charge, and provide to the Board a listing of CPA firms that have participated in a peer review program that is satisfactory to the Board; and

(4) shall require, with respect to peer reviews contemplated by § 35107(i)(2), 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 oversight body) shall have access to documents furnished or generated in the course of the review.

SOURCE: Subsection (d)(4) amended by P.L. 28-118:15 (Apr 26, 2006), and P.L.
33-193:21 (Dec. 15, 2016). Subsection (i)(3) amended by P.L.28-118:16 (Apr 26,
2006). Subsection (a) amended by P.L. 33-193:17 (Dec. 15, 2016). Subsection (d)(1)
amended by P.L. 33-193:18 (Dec. 15, 2016). Subsection (d)(2) amended by P.L. 33-
193:19 (Dec. 15, 2016). Subsection (d)(3) amended by P.L. 33-193:20 (Dec. 15,
2016).