§ 43-02.2-06 — Permits to practice - Firms

North Dakota § 43-02.2-06

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

Text

1. The board shall grant or renew permits to practice as a CPA or LPA firm to applicants
that demonstrate their qualifications therefor in accordance with this subsection.
a. The following must hold a permit issued under this subsection:

(1) Any firm with an office in this state practicing public accountancy as defined
in subsection 8 of section 43-02.2-02; or
(2) Any firm with an office in this state that uses the title "CPA", "LPA", "CPA
firm", or "LPA firm", or similar titles.
b. A firm which is not subject to the requirements of subdivision a may perform
professional services within the practice of public accountancy while using the
title "CPA" or "CPA firm" in this state without a permit issued under this subsection
only if:
(1) It performs such services through an individual with practice privileges under
subsection 1 of section 43-02.2-04.1; and
(2) It can lawfully do so in the state where such individuals with practice
privileges have their principal place of business.
2. Permits must be issued and renewed on an annual basis. Applications for permits
must be made in the form the board specifies. The board shall grant or deny any
application no later than ninety days after the application is filed in proper form. If the
applicant seeks the opportunity to show that issuance or renewal of a permit was
mistakenly denied or if the board is not able to determine whether it should be granted
or denied, the board may issue to the applicant a provisional permit, which expires
ninety days after its issuance or when the board determines whether or not to issue or
renew the permit for which application was made, whichever occurs first.
3. Except as provided in section 43-02.2-06.1, an applicant for initial issuance or renewal
of a permit to practice under this section must show that a simple majority of the
ownership of the firm, in terms of financial interests and voting rights, belongs to
licensees of a state or other recognized jurisdiction and that all certified public
accountants or licensed public accountants associated with the firm whose principal
place of business is in this state and who perform professional services in this state
hold a valid certificate or license issued by this state. The minority of the ownership of
a firm may belong to an individual or a qualified plan as described and defined in
sections 401(a) and 4975(e)(7) of the Internal Revenue Code [26 U.S.C. 401(a) and
4975(e)(7)], including an employee stock ownership plan. The firm and its owners
must comply with all board rules regarding ownership.
4. An applicant for initial issuance or renewal of a permit to practice under this section is
required to register each office of the firm within this state with the board.
5. The board may charge a fee for each application for initial issuance or renewal of a
permit under this section in an amount prescribed by the board by rule.
6. Applicants for initial issuance or renewal of permits under this section shall in their
applications list all states and jurisdictions in which they have applied for or hold
permits to practice public accountancy or similar authorizations, and each holder of or
applicant for a permit under this section shall notify the board in writing, within thirty
days after its occurrence, of any change in the identities of partners, officers, or
shareholders who work regularly within this state, any change in the number or
location of offices within this state, any change in the identity of the persons in charge
of such offices, and any issuance, denial, revocation, or suspension of a permit by any
other state or jurisdiction.
7. The board may require by rule, on either a uniform or a random basis, as a condition
to renewal of permits under this section, that applicants undergo practice reviews
conducted no more frequently than once every three years in such manner and
producing such satisfactory result as the board specifies; provided that any such
requirement must be adopted reasonably in advance of the time when it is first
required to be met and must include reasonable provision for compliance by an
applicant's showing that it has undergone a satisfactory review performed for other
purposes which was substantially equivalent to practice reviews generally required
under this subsection and completion of such review was within the three years
immediately preceding the renewal period.