§ 7408. Special provisions.
1.Nothing contained in this article shall\nbe deemed to prohibit one or more certified public accountants or one or\nmore public accountants, or any combination thereof, from forming a\nfirm.\n 2. No firm shall use the words "certified public accountant" or\n"certified public accountants" or the letters "CPA" or "CPAs" in\nconnection with its name unless the sole proprietor of such firm or each\npartner of a partnership or limited liability partnership, member of a\nlimited liability company or shareholder of a professional service\ncorporation engaged within the United States in the practice of public\naccountancy is in good standing as a certified public accountant of one\nor more of the states of the United States.\n 3.
a.Any firm that is established fo
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§ 7408. Special provisions. 1. Nothing contained in this article shall\nbe deemed to prohibit one or more certified public accountants or one or\nmore public accountants, or any combination thereof, from forming a\nfirm.\n 2. No firm shall use the words "certified public accountant" or\n"certified public accountants" or the letters "CPA" or "CPAs" in\nconnection with its name unless the sole proprietor of such firm or each\npartner of a partnership or limited liability partnership, member of a\nlimited liability company or shareholder of a professional service\ncorporation engaged within the United States in the practice of public\naccountancy is in good standing as a certified public accountant of one\nor more of the states of the United States.\n 3. a. Any firm that is established for the business purpose of\nlawfully engaging in the practice of public accountancy pursuant to\nsubdivisions one and two of section seventy-four hundred one of this\narticle or uses the title "CPA" or "CPA firm" or the title "PA" or "PA\nfirm" must register with the department. A firm of certified public\naccountants or public accountants engaged in the practice of public\naccountancy pursuant to subdivision three of section seventy-four\nhundred one of this article, but not engaged in the practice of public\naccountancy pursuant to subdivisions one and two of section seventy-four\nhundred one of this article, may register with the department under this\nsubdivision. As a condition of registration or renewal, the firm shall\naffirm that it has not violated the provisions of this article, any\nother applicable laws and such other requirements as the department may\nimpose, consistent with this article, except that the provisions of\nsection seventy-four hundred ten of this article shall not apply on\ninitial registration.\n b. A registration shall be issued to a firm upon payment of the fee\nprescribed by the commissioner upon application showing that:\n (1) At least one partner of a partnership or limited liability\npartnership, member of a limited liability company or shareholder of a\nprofessional service corporation or the sole proprietor is licensed or\notherwise authorized to practice under this article and his or her\nlicense to practice is not currently suspended, annulled or revoked in\nany jurisdiction and he or she is regularly engaged in practice on\nbehalf of the firm within the state or, in the case of a firm that holds\na license, registration, or permit as a firm of certified public\naccountants in another state and is required to register in this state,\nan individual with practice privileges under subdivision two of section\nseventy-four hundred six of this article;\n (2) The firm, other than a sole proprietorship, consists of at least\ntwo present partners, members or shareholders;\n (3) The firm, other than a sole proprietorship, contains at least as\nmany present partners, members or shareholders as the total number of\nnames in the firm name, or, where the word "company" or abbreviation\n"co." is used, the number of present partners, members or shareholders\nshall be greater than the number of names in the firm name;\n (4) Such application includes a list of the location of all offices\nwithin this state, including the names of the persons in charge of such\noffices; and\n (5) Such application includes a list of all states in which the firm\nhas applied for or holds registrations, licenses, or permits as a public\naccounting firm and a list of any past denial, revocation, or suspension\nof a license, registration or permit by any other state or jurisdiction\nwithin the last three years.\n c. In addition to authority granted under any other provision of law,\nthe board of regents may revoke such registration or take other action\npursuant to a consent order or surrender of registration in accordance\nwith this title and the rules of the board of regents, in the same\nmanner and to the same extent as is provided with respect to individuals\nlicensed pursuant to this article, or pursuant to a settlement in which\nthe firm neither admits nor denies the allegations of professional\nmisconduct, or after a hearing conducted in accordance with the\nprovisions of section sixty-five hundred ten of this title upon proof:\n (1) That the registration was obtained by either misrepresentation or\nsuppression of any material fact;\n (2) That the license or authorization to practice of any sole\nproprietor, partner of a partnership or limited liability partnership,\nmember of a limited liability company or shareholder of a professional\nservice corporation is suspended, annulled or revoked in any\njurisdiction;\n (3) That any sole proprietor, partner of a partnership or limited\nliability partnership, member of a limited liability company or\nshareholder of a professional service corporation in such firm is or has\nbeen engaged in the practice of public accountancy in this state who is\nnot licensed or otherwise authorized to practice in this state;\n (4) That the firm failed to file the written notification required\npursuant to paragraph e of this subdivision;\n (5) That the firm failed to undergo a peer review of its attest\nservices pursuant to section seventy-four hundred ten of this article at\nleast once every three years; or\n (6) That the firm has engaged in professional misconduct pursuant to\nsection sixty-five hundred nine of this title.\n d. Personal service on a sole proprietor, any general partner of a\npartnership or limited liability partnership, member of a limited\nliability company or shareholder of a professional service corporation\nlicensed in this state of a notice of a hearing to revoke the\nregistration of, or take other disciplinary action against a firm\nregistered hereunder shall be deemed service on the firm.\n e. A firm registered to practice pursuant to this section shall file\nwith the department annually on or before the anniversary of the date of\nthe firm's first registration written notification of:\n (1) Any admission of a partner, member or shareholder,\n (2) Any resignation, termination, retirement or death of a partner,\nmember or shareholder,\n (3) Any termination of a firm,\n (4) Any change in the number or location of offices within this state\nand any change in the identity of the persons in charge of such offices,\nor\n (5) Any occurrence of any event or events which would eliminate as to\nsuch firm conformity with the applicable requirements of this section.\n f. The commissioner shall establish in regulations a registration\nprocess for certified public accountancy firms and public accountancy\nfirms, including the imposition of application and registration fees and\nprocedures to suspend or revoke a registration or take other\ndisciplinary action for cause.\n g. Firms shall register triennially.\n h. An individual licensee or individual practicing under subdivision\ntwo of section seventy-four hundred six of this article who signs or\nauthorizes someone to sign the accountant's report on the financial\nstatements on behalf of a firm shall meet the competency requirements\nset out in the professional standards for such services, as recognized\nin subdivision one of section seventy-four hundred one-a of this\narticle, and as set out in the rules of the board of regents.\n 4. Any person shall be guilty of a class A misdemeanor who shall use,\nin connection with the practice of public accountancy, or in any manner\ntending to imply that he or she is an independent accountant or auditor,\nthe designations "chartered accountant", "certified accountant", "expert\naccountant", "certified tax accountant", "tax accountant", "enrolled\naccountant", "enrolled public accountant", "registered accountant",\n"licensed accountant", "incorporated accountant", "registered public\naccountant", "licensed public accountant", or any abbreviation thereof,\nor the letters "C.A.", "E.A.", "C.T.A.", "T.A.", "E.P.A.", "R.A.",\n"L.A.", "I.A.", "P.A.", "R.P.A.", or, "L.P.A.", except as provided\nelsewhere in this article, or any other designation tending to imply\nthat he or she has expert knowledge in accounting or auditing. The title\n"enrolled agent" or the designation "E.A." may only be used by\nindividuals so designated by the United States Internal Revenue Service.\n 5. An individual not licensed as a certified public accountant or\npublic accountant or otherwise authorized to practice public\naccountancy, or an entity not required to register under this section\nmay prepare a financial statement so long as it is not accompanied by\nany statement, report, or wording indicating such individual is a\ncertified public accountant or public accountant or that such entity is\nregistered to practice public accountancy under this article. Such\nnon-licensed individuals and non-registered entities shall include the\nfollowing written language when preparing financial statements:\n a. "(I, We) have prepared the accompanying financial statement(s) of\n(name of business or organization) as of the (time period) and for the\n(period) then ended. This presentation is limited to preparing, in the\nform of a financial statement(s), information that is the representation\nof (name of business or organization)"; and\n b. "(I, We) have not audited or reviewed the accompanying financial\nstatement(s) and accordingly do not express an opinion or any other form\nof assurance on them."\n