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17-12-401. Professional partnerships, corporations, limited liability companies, and sole proprietorships of certified public accountants.
Arkansas Code — all titles (historical 2020) · legal_authorities
17-12-401. Professional partnerships, corporations, limited liability companies, and sole proprietorships of certified public accountants.
(a) The Arkansas State Board of Public Accountancy shall grant or renew a registration as a CPA firm to an applicant that meets the qualifications of this section.
(b)(1) A firm shall hold a registration under this section if the firm:
(A) Has an office in this state:
(i) Engaged in the practice of public accounting; or
(ii) That uses the title “CPA” or “CPA firm”; or
(B) Does not have an office in this state but performs attest services described in § 17-12-103(a)(2)(A), § 17-12-103(a)(2)(C), or § 17-12-103(a)(2)(D) for a client having its home office in this state.
(2) A firm that does not have an office in this state may perform services under § 17-12-103(a)(2)(B), § 17-12-103(a)(2)(E), or § 17-12-103(a)(5) for a client having its home office in this state and may use the title “CPA” or “CPA firm” without registering under this section only if the firm:
(A) Meets the applicable qualifications of this section and § 17-12-507;
(B) Performs the services through an individual with practice privileges under § 17-12-311; and
(C) Meets the peer review requirements under § 17-12-508.
(3) A firm that is not subject to the requirements of subdivision (b)(1)(B) or subdivision (b)(2) of this section may perform other professional services while using the title “CPA” or “CPA firm” in this state without registering under this section only if the firm:
(A) Performs the services through an individual with practice privileges under § 17-12-311; and
(B) Can lawfully perform the services in the state where the individuals with practice privileges have their principal place of business.
(c) If required to register under su
Source: Arkansas Code — historical release 78 (November 6, 2020) · 17-12-401
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:17-12-401
Source file: gov.ar.code.title.17.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 528f98691bfc6f9d456a74ec129202f130827cd1a1555c0765b1237c69f3e5da
Source location: content.xml paragraph 1324
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17-12-401. Professional partnerships, corporations, limited liability companies, and sole proprietorships of certified public accountants.
(a) The Arkansas State Board of Public Accountancy shall grant or renew a registration as a CPA firm to an applicant that meets the qualifications of this section.
(b)(1) A firm shall hold a registration under this section if the firm:
(A) Has an office in this state:
(i) Engaged in the practice of public accounting; or
(ii) That uses the title “CPA” or “CPA firm”; or
(B) Does not have an office in this state but performs attest services described in § 17-12-103(a)(2)(A), § 17-12-103(a)(2)(C), or § 17-12-103(a)(2)(D) for a client having its home office in this state.
(2) A firm that does not have an office in this state may perform services under § 17-12-103(a)(2)(B), § 17-12-103(a)(2)(E), or § 17-12-103(a)(5) for a client having its home office in this state and may use the title “CPA” or “CPA firm” without registering under this section only if the firm:
(A) Meets the applicable qualifications of this section and § 17-12-507;
(B) Performs the services through an individual with practice privileges under § 17-12-311; and
(C) Meets the peer review requirements under § 17-12-508.
(3) A firm that is not subject to the requirements of subdivision (b)(1)(B) or subdivision (b)(2) of this section may perform other professional services while using the title “CPA” or “CPA firm” in this state without registering under this section only if the firm:
(A) Performs the services through an individual with practice privileges under § 17-12-311; and
(B) Can lawfully perform the services in the state where the individuals with practice privileges have their principal place of business.
(c) If required to register under subdivision (b)(1)(A) of this section:
(1) A partnership engaged in this state in the practice of public accounting shall register with the board as a partnership of certified public accountants and meet the following requirements:
(A) At least one (1) general partner shall be a certified public accountant of this state in good standing; and
(B) Each resident manager in charge of an office of the partnership in this state shall be a certified public accountant of this state in good standing;
(2) A corporation engaged in this state in the practice of public accounting shall register with the board as a corporation of certified public accountants and meet the following requirements:
(A) Any officer or director of the corporation having authority over the practice of public accounting by the corporation in this state shall be a certified public accountant of some state in good standing;
(B) At least one (1) shareholder of the corporation shall be a certified public accountant of this state in good standing;
(C) Each resident manager in charge of an office of the corporation in this state shall be a certified public accountant of this state in good standing; and
(D) The corporation shall be in compliance with other rules pertaining to corporations practicing public accounting in this state that the board may prescribe;
(3) A limited liability company engaged in this state in the practice of public accounting shall register with the board as a limited liability company of certified public accountants and meet the following requirements:
(A) Any manager, member, officer, or director of the limited liability company having authority over the practice of public accounting by the limited liability company in this state shall be a certified public accountant of some state in good standing;
(B) At least one (1) member of the limited liability company shall be a certified public accountant of this state in good standing;
(C) Each resident manager in charge of an office of the limited liability company in this state shall be a certified public accountant of this state in good standing; and
(D) The limited liability company shall be in compliance with other rules pertaining to limited liability companies practicing public accounting in this state that the board may prescribe; and
(4) A certified public accountant operating as a sole proprietorship and engaged in this state in the practice of public accounting shall register with the board as a sole proprietor if registration is required under subdivision (b)(1) of this section and shall comply with the requirements of § 17-12-403.
(d)(1) Application for registration shall be made upon the affidavit of a general partner, shareholder, or member who is a certified public accountant of this state in good standing or, if registration is required under subdivision (b)(1)(B) of this section, a licensee of another state who meets the requirements set forth in § 17-12-311.
(2) An individual who has practice privileges under § 17-12-311 and performs services for which registration is required under § 17-12-311(a)(4) shall not be required to obtain a license from this state under § 17-12-301.
(e) The board shall in each case determine whether the applicant is eligible for registration.
(f) Notification shall be given to the board within one (1) month after the admission or withdrawal of a partner, shareholder, or member from any firm so registered.
(g) Any firm registered under this section may include nonlicensee owners or public accountants who hold a valid license under § 17-12-312, provided that:
(1) A majority of the ownership of the firm in terms of financial interests and voting rights of all partners, officers, directors, shareholders, members, or managers belongs to holders of certificates who are licensed in some state, and such partners, officers, directors, 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 § 17-12-301 et seq. or the corresponding provisions of prior law;
(2) The firm designates a licensee of this state or, in the case of a firm that must be registered under subdivision (b)(1)(B) of this section, a licensee of another state who meets the requirements of § 17-12-311 who is responsible for the proper registration of the firm and identifies that individual to the board;
(3) All nonlicensee owners are active individual participants in the firm or other entities affiliated with the firm; and
(4) The firm complies with such other requirements as the board may impose by rule.
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Arkansas Code — all titles (historical 2020) · legal_authorities
17-12-103. Definitions.
(a) As used in this chapter:
(1) “AICPA” means the American Institute of Certified Public Accountants, or its successor;
(2) “Attest” means providing the following services:
(A) An audit or other engagement to be performed in accordance with the AICPA Statements on Auditing Standards;
(B) A review of a financial statement to be performed in accordance with the AICPA Statements on Standards for Accounting and Review Services;
(C) An examination of prospective financial information to be performed in accordance with the AICPA Statements on Standards for Attestation Engagements;
(D) An engagement to be performed in accordance with PCAOB standards; and
(E) An examination, review, or agreed-upon procedures engagement to be performed in accordance with the AICPA Statements on Auditing Standards for Attestation Engagements other than an examination described in subdivision (a)(2)(C) of this section;
(3) “Beneficial owner” means an individual who is the grantor and sole trustee of a revocable trust in which the individual reserves the unrestricted right to revoke the trust;
(4) “Certificate” means a certificate as “certified public accountant” issued under § 17-12-301 or a corresponding certificate as “certified public accountant” issued after examination under the laws of any other state;
(5) “Compilation” means providing a service of any compilation engagement to be performed in accordance with the AICPA Statements on Standards for Accounting and Review Services;
(6) “Conviction” means all instances in a criminal case in which a defendant has been found guilty or pleads guilty or nolo contendere regardless of whether:
(A) Sentencing or imposition of sentencing has been deferred or suspended; or
(B) The adjudication of guilt
Source: Arkansas Code — historical release 78 (November 6, 2020) · 17-12-103
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 17-12-103. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
17-12-311. Substantial equivalency.
(a)(1) An individual whose principal place of business is not in this state and who holds a valid license as a certified public accountant from a state which the NASBA National Qualification Appraisal Service has verified to be in substantial equivalence with the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act:
(A) Shall be presumed to have qualifications substantially equivalent to this state's requirements;
(B) Shall have all the privileges of licensees of this state without the need to obtain a certificate under § 17-12-301 or § 17-12-308 or a license under § 17-12-313 or § 17-12-501; and
(C) May offer or render professional services in person, by mail, by telephone, or by electronic means without notifying the Arkansas State Board of Public Accountancy or paying a fee.
(2)(A) An individual whose principal place of business is not in this state and who holds a valid license as a certified public accountant from a state which the NASBA National Qualification Appraisal Service has not verified to be in substantial equivalence with the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act:
(i) Shall be presumed to have qualifications substantially equivalent to the requirements of this state;
(ii) Shall have all the privileges of licensees of this state without the need to obtain a certificate under § 17-12-301 or § 17-12-308 or a license under § 17-12-313 or § 17-12-501 if the individual obtains from the NASBA National Qualification Appraisal Service verification that the individual's CPA qualifications are substantially equivalent to the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act; and
(iii) May offer or render professional services, whether in person, b
Source: Arkansas Code — historical release 78 (November 6, 2020) · 17-12-311
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 17-12-311. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
17-12-507. Quality review of each practice unit.
(a) The Arkansas State Board of Public Accountancy may by rule require as a condition for the renewal of a license a quality review of each practice unit maintained in this state.
(b)(1) The board may charge the accountant or firm reviewed a fee for each:
(A) Quality review of each practice unit; and
(B) Follow-up action to a quality review that is not in conformity with applicable professional standards.
(2) The amount of the fee shall be established by board rule.
(c)(1) The quality review shall consist of either a uniform or random annual submission by each licensee of the following kinds of reports issued by that licensee during the twelve-month period immediately preceding the date of submission, if reports were issued during the period:
(A) A compilation report;
(B) A review report;
(C) An agreed-upon procedures report;
(D) An audit report;
(E) An audit report under a federal grant program or other government program; and
(F) An examination of prospective financial information.
(2) If none of the above reports were issued during the twelve (12) months immediately preceding the date of submission, a licensee is required to submit reports issued since the date of its last quality review survey submission.
(d) All persons acting on behalf of the board in a quality review program under this section shall be considered officers or employees of the State of Arkansas for purposes of:
(1) Immunity from civil liability pursuant to § 19-10-301 et seq.; and
(2) Payment of actual damages on behalf of state officers or employees pursuant to § 21-9-201 et seq.
(e) All financial statements, working papers, or other documents obtained from applicants for quality review shall be confidential and sha
Source: Arkansas Code — historical release 78 (November 6, 2020) · 17-12-507
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 17-12-507. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
17-12-508. Peer review.
(a)(1) Beginning January 1, 2019, the Arkansas State Board of Public Accountancy shall by rule require licensees who perform attest services to enroll in an approved peer review program and have a peer review one (1) time every three (3) years.
(2) Licensees who perform compilation or preparation of financial statements as their highest level of service shall be excluded from the peer review requirement under this section.
(b) Peer reviews shall be conducted in accordance with standards that the board sets by rule.
(c) Licensees who fail to obtain peer review ratings required by the board or who otherwise fail to comply with peer review standards established or adopted by the board are subject to sanctions under § 17-12-602.
(d)(1) All financial statements, working papers, or other documents obtained from licensees or applicants for peer review shall be confidential and shall not be subject to public inspection except under an order of a court of competent jurisdiction.
(2)(A) The documents deemed confidential under subdivision (d)(1) of this section shall be exempt from disclosure under the Freedom of Information Act of 1967, § 25-19-101 et seq.
(B) Documents exempted under subdivision (d)(2)(A) of this section may be introduced as evidence in any relevant proceeding before the board.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 17-12-508
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 17-12-508. This identifies an authority to review, not proof of applicability.