§ 43-02.2-04 — Certified public accountants

North Dakota § 43-02.2-04

• Jurisdiction: North Dakota
• Title 43: Occupations and Professions
• Ch. 43-02.2: Accountants

Text

1. The board shall grant the certificate of "certified public accountant" to any person who
meets the requirements of this section.
2. The board may not grant a certificate if the applicant has been convicted of a felony, or
of any crime an element of which is dishonesty or fraud, under the laws of the United
States, this state, or any other state if the acts involved would have constituted a crime
under the laws of this state.
3. The board shall grant or renew certificates to persons who make application and
demonstrate that their qualifications are in accordance with the following:
a. The board shall issue a certificate to a holder of a certificate, license, or permit
issued by another state, upon a showing that the applicant is eligible under the
substantial equivalency standard set out in subsection 1 of section 43-02.2-04.1.
An application under this section may be made through the NASBA qualification
appraisal service.
b. With regard to applicants that do not qualify for reciprocity under the substantial
equivalency standard set out in subdivision a, the board shall issue a certificate to
a holder of a certificate, license, or permit issued by another state upon a
showing that:
(1) The applicant passed the uniform CPA examinations;
(2) The applicant had four years of experience of the type described in
subsection 14 or meets comparable requirements prescribed by the board
by rule, after passing the examination upon which the applicant's certificate
was based and within ten years immediately preceding the application; and
(3) If the applicant's certificate, license, or permit was issued more than four
years prior to the application for issuance of an initial certificate under this
section, that the applicant has fulfilled the requirements of continuing
professional education that would have been applicable under
subsection 15.
c. The applicant shall pay the applicable fee.
d. An individual who establishes that individual's principal place of business in this
state must obtain a certificate under this section.
4. The board shall issue a certificate to a holder of a recognized accounting designation
from a jurisdiction or organization outside of the United States, provided such
jurisdiction or organization extends similar reciprocity to the certificate holders of this
state, and upon a showing to the board's satisfaction that the applicant:
a. Meets the substantial equivalent of the education requirements of subsection 5
and the experience requirements of subsection 14 at the time of application, or at
the time of the issuance of the designation by the other jurisdiction or
organization met the education and experience requirements then applicable in
this state;
b. Has completed examinations generally equivalent to those prescribed under
subsection 6;
c. Has satisfactorily completed any additional examinations that the board
prescribes; and
d. Has paid the applicable fees.
5. The education requirement for a certificate is at least one hundred fifty semester hours
of college education including a baccalaureate or higher degree or its equivalent
conferred by a college or university acceptable to the board, the total educational
program to include an accounting concentration or equivalent as determined by board
rule to be appropriate.
6. The examination required to be passed as a condition for the granting of a certificate
must test the applicant's knowledge of the subjects of accounting and auditing. The
time for holding the examination must be fixed by the board and may be changed from
time to time. The board may prescribe by rule the methods of applying for and
conducting the examination, including methods for grading papers and determining a
passing grade required of an applicant for a certificate provided that the board to the

extent possible sees to it that the grading of the examination and the passing grade
requirements are uniform with those applicable in all other states. The board may use
all or any part of the uniform certified public accountant examination and advisory
grading service of the American institute of certified public accountants and may
contract with third parties to perform administrative services with respect to the
examination it deems appropriate to assist it in performing its duties. The board may
permit a candidate to take the examination if the candidate has at least one hundred
twenty semester hours of college education.
7. An applicant must pass the examination provided for in subsection 6, as specified by
rule, in order to qualify for a certificate.
8. An applicant must be given credit for any and all sections of an examination passed in
another state if such credit would have been given under then applicable
requirements, if the applicant had taken the examination in this state.
9. The board may in particular cases waive or defer any of the requirements of
subsections 7 and 8 regarding the circumstances under which the examination must
be passed, upon a showing that, by reason of circumstances beyond the applicant's
control, the applicant was unable to meet the requirement.
10. The board may charge, or provide for a third party administering the examination to
charge, each applicant a fee, in an amount prescribed by the board by rule, for
examination or re-examination.
11. A certificate of certified public accountant must be renewed each year, with renewal
subject to payment of fees and any other requirements prescribed by the board.
12. The board may require examination of other related subjects as specified by rule.
13. Applicants for initial issuance or renewal of certificates under this section shall list in
the applications all states and jurisdictions in which they have applied for or hold
certificates or permits or other recognized accounting designation, and each holder of
or applicant for a certificate under this section shall notify the board in writing, within
thirty days after its occurrence, of any issuance, denial, revocation, or suspension of a
certificate or permit or other recognized accounting designation by another state or
jurisdiction.
14. After December 31, 2000, an applicant for initial issuance of a certificate under this
section shall show that the applicant has had one year of experience. This experience
must include providing any type of service or advice involving the use of accounting,
attest, management advisory, financial advisory, tax, or consulting skills. This
experience must be verified and must meet any other requirements prescribed by the
board by rule. This experience is acceptable if it was gained through employment in
government, industry, academia, or public accounting. This experience requirement
does not apply to those who received a certificate from this state prior to January 1,
2000.
15. The board may require by rule, as a condition for granting and renewal of certificates
under this section, that applicants show completion of continuing education meeting
requirements of board rule. The continuing education rules may include provisions for
exceptions and must include reasonable provision for an applicant who cannot meet
the continuing education requirements due to circumstances beyond the applicant's
reasonable control.
16. The board may by rule create an exception to the continuing education requirements
for certificate holders who do not perform or offer to perform for the public one or more
kinds of services involving the use of accounting or auditing skills, including issuance
of reports on financial statements or of one or more kinds of management advisory,
financial advisory or consulting services, or the preparation of tax returns or the
furnishing of advice on tax matters. Licensees granted such an exception by the board
shall place the word "inactive" adjacent to the licensee's CPA title or LPA title on any
business card, letterhead or any other document or device, with the exception of the
licensee's CPA or LPA certificate, on which the licensee's CPA or LPA title appears. In
addition, inactive CPAs, in lieu of "inactive", may place the word "retired" adjacent to
the individual's CPA title or LPA title on any business card, letterhead or any other

document or device, with the exception of the individual's CPA or LPA certificate, on
which the individual's CPA or LPA title appears. Nothing in this section precludes an
inactive CPA, from providing the following volunteer, uncompensated services: tax
preparation services, participating in a government-sponsored business mentoring
program, serving on the board of directors for a nonprofit or governmental
organization, or serving on a government-appointed advisory body. A licensee only
may convert to inactive status if the licensee holds a license in good standing.
43-02.2-04.1. Substantial equivalency.
1. An individual whose principal place of business is not in this state shall have all the
privileges of certificate holders and licensees of this state without the need to obtain a
certificate or permit under section 43-02.2-04, if the individual holds a valid license as
a CPA from any state that the NASBA national qualification appraisal service has
verified to be in substantial equivalence with the CPA licensure requirements of the
Uniform Accountancy Act, or, if the individual's license is not from any state which the
NASBA national qualification appraisal service has verified to be in substantial
equivalence with the CPA licensure requirements of the Uniform Accountancy Act, that
the individual has obtained from the NASBA national qualification appraisal service
verification that such individual's CPA qualifications are substantially equivalent to the
CPA licensure requirements of the Uniform Accountancy Act. An individual who passed
the uniform CPA examination and holds a valid license issued by any other state prior
to January 1, 2012, may be exempt from the education requirement in the Uniform
Accountancy Act for purposes of this section.
2. Notwithstanding any other provision of law, an individual who offers or renders
professional services, whether in person or by mail, telephone, or electronic means,
under this section shall be granted practice privileges in this state and may use the title
"CPA" or "certified public accountant" and no notice, fee, or other submission shall be
provided by any such individual. Such an individual is subject to the requirements of
subsection 3.
3. Any individual licensee of another state exercising the privilege afforded under this
section and the firm that employs that licensee hereby simultaneously consent, as a
condition of the grant of this privilege:
a. To the personal and subject matter jurisdiction and disciplinary authority of the
board;
b. To comply with this chapter and the board's rules;
c. That in the event the license from the state of the individual's principal place of
business is no longer valid, the individual will cease offering or rendering
professional services in this state individually and on behalf of a firm; and
d. To the appointment of the state board which issued the person's license as the
person's agent upon whom process may be served in any action or proceeding
by this board against the licensee.
4. A licensee of this state offering or rendering services or using the licensee's CPA title
in another state is subject to disciplinary action in this state for an act committed in
another state for which the licensee would be subject to discipline in the other state.
The board shall investigate any complaint made by the board of accountancy of
another state.