South Carolina Code 40-2-30. Licensing or registration requirement; form for issuance of report by person other than CPA or PA; use of titles CPA and PA; exemptions
(B) Only licensed certified public accountants or public accountants or individuals qualifying for a practice privilege pursuant to § 40-2-245 may issue a report on financial statements of a person, firm, organization, or governmental unit or offer to render or render any attest or compilation service as defined, except as provided in § 40-2-610. This restriction does not prohibit an act of a public official or public employee in the performance of that person’s duties or prohibit the performance by any nonlicensee of other services involving the use of accounting skills, including the preparation of tax returns, management advisory services, and the preparation of financial statements without the issuance of reports.
Terms Used In South Carolina Code 40-2-30
- Board: means the South Carolina Board of Accountancy. See South Carolina Code 40-2-20
- Client: means a person or entity that agrees with a licensee or licensee's employer to receive any professional service. See South Carolina Code 40-2-20
- Compilation: means providing a service of any compilation engagement to be performed in accordance with SSARS. See South Carolina Code 40-2-20
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Firm: includes a person or persons practicing public accounting in the form of a proprietorship, partnership, limited liability partnership, limited liability company, or professional corporation or association. See South Carolina Code 40-2-20
- License: means authorization to practice as issued under this chapter. See South Carolina Code 40-2-20
- Practice of accounting: means :
(a) issuing a report on financial statements of a person, firm, organization, or governmental unit or offering to render or rendering any attest or compilation service. See South Carolina Code 40-2-20 - Preparation of financial statements: means any preparation of financial statements engagement to be performed in accordance with SSARS. See South Carolina Code 40-2-20
- Principal place of business: means the office location designated by a licensee for the purposes of substantial equivalency and reciprocity. See South Carolina Code 40-2-20
- Professional: means arising out of or related to the specialized knowledge or skills associated with licensees. See South Carolina Code 40-2-20
- Registration: means an authorization, issued under this chapter, to practice as a firm. See South Carolina Code 40-2-20
- report: includes any form of language which disclaims an opinion when the form of language is conventionally understood to imply positive assurance as to the reliability of the attested information or compiled financial statements referred to or special competency on the part of the person or firm issuing such language, or both; and it includes any other form of language that is conventionally understood to imply such assurance or such special knowledge or competency, or both. See South Carolina Code 40-2-20
- State: means any state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and Guam; except that "this State" means the State of South Carolina. See South Carolina Code 40-2-20
(C) Persons, other than certified public accountants or public accountants, may prepare financial statements and issue nonattest transmittals or information thereon which do not purport to be in compliance with the SSARS. Transmittals using the following language must not be considered the unlicensed practice of accountancy:
"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 other form of assurance on them."
(D) Only a person holding a valid license as a certified public accountant or qualifying for a practice privilege under § 40-2-245 shall use or assume the title "Certified Public Accountant" or the abbreviation "CPA" or any other title, designation, words, letters, abbreviation, sign, card, or device indicating that the person is a certified public accountant.
(E) A firm may not provide attest services or assume or use the title "Certified Public Accountants", "Public Accountants" or the abbreviation "CPAs" and "PAs", or any other title, designation, words, letters, abbreviation, sign, card, or device indicating the firm is a CPA firm unless:
(1) the firm holds a valid registration issued under this chapter or is exempt from the registration requirement by operation of subsection (I);
(2) ownership of the firm is in accordance with § 40-2-40(C) and implementing regulations promulgated by the board, unless the firm is exempt from the registration requirement by operation of subsection (I); and
(3) owners who are not certified public accountants must be permitted to use the titles "principal", "partner", "owner", "officer", "member", or "shareholder" but must not hold themselves out to be certified public accountants.
(F) A person must not assume or use the title "Public Accountant" or the abbreviation "PA" or any other title, designation, words, letters, abbreviation, sign, card, or device indicating that the person is a public accountant unless that person holds a valid registration issued under this chapter.
(G)(1) Only a person or firm holding a valid license or registration issued under this chapter, an individual qualifying for practice privileges under § 40-2-245, or a firm exempt from the registration requirement by operation of subsection (I) shall assume or use any title or designation likely to be confused with the titles "Certified Public Accountant" or "Public Accountant" or use a similar abbreviation likely to be confused with the abbreviations "CPA" or "PA". The title "Enrolled Agent" or "EA" may only be used by individuals designated by the Internal Revenue Service.
(2) Persons or firms that are not licensed or registered, individuals qualifying for practice privileges under § 40-2-245, and firms exempt from the registration requirement by operation of subsection (I) may use designations granted by national accrediting organizations so long as those designations do not imply qualification to render any attest or compilation service.
(H) This section does not apply to a person or firm holding a certification, designation, degree, or license granted in a foreign country entitling the holder to engage in the practice of public accountancy or its equivalent in that 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 the entitlement; who performs no attest or compilation services and who issues no reports, as defined in this chapter, 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 the person practices in their country, followed by a translation of the title or designation into the English language, if it is in a different language, and by the name of the country.
(I)(1) Firms that do not have an office in this State may engage in the practice of accounting, without obtaining a registration pursuant to § 40-2-40, as specified in this subsection.
(2) A firm described in item (1) may perform services described in § 40-2-20(2) for a client in this State, may engage in the practice of accounting, as specified in this section, and may use the title "CPA" or "CPA firm" only if the firm:
(a) has the qualifications described in § 40-2-40(C) and § 40-2-255(C);
(b) performs these services through an individual with practice privileges under § 40-2-245; and
(c) can lawfully perform these services in the state where the individual with practice privileges under § 40-2-245 has his principal place of business.
(3) A firm described in item (1) that is not subject to the requirements of item (2) may perform other professional services within the practice of accounting while using the title "CPA" or "CPA firm" in this State only if the firm:
(a) performs these services through an individual with practice privileges under § 40-2-245; and
(b) can lawfully do so in the state where these individuals with practice privileges have their principal place of business.
(4) Notwithstanding any other provision of this section, it is not a violation of this section for a firm that does not hold a valid permit under § 40-2-40 and which does not have an office in this State to provide its professional services or to engage in the practice of accounting so long as it complies with the requirements of item (2) or (3), whichever is applicable.
(J) Notwithstanding another provision of law, a licensed certified public accountant while in the performance of his duties is exempt from the licensing requirements of Chapter 18 of this title.