Arizona § 32-731 - Certified public accountant firm registration requirements; performance of attest services and compilation services; definition

§ 32-731. Certified public accountant firm registration requirements; performance of attest services and compilation services; definition

A. Except as provided in section 32-725, subsection G, once every two years each of the following shall pay the registration fee pursuant to section 32-729 and register with the board as a firm:

1. A business organization that meets all of the following criteria:

(a) Has a simple majority of the ownership, in terms of direct and indirect financial interests and voting rights, that belongs to holders in good standing of certificates or licenses as certified public accountants in any jurisdiction.

(b) Has an office in this state.

(c) Either:

(i) Performs attest services or compilation services.

(ii) Uses the CPA designation in its firm name.

2. A sole proprietorship that meets all of the following criteria:

(a) Has an owner that is a certified public accountant in good standing in this state.

(b) Has an office in this state.

(c) Either:

(i) Performs attest services or compilation services.

(ii) Uses the CPA designation in its business name, unless the business name is the name of the sole proprietor as registered with the board.

3. An individual who meets both of the following criteria:

(a) Is a certified public accountant in good standing in this state.

(b) Either:

(i) Performs attest services or compilation services in this state, other than as an owner or employee of a sole proprietorship or business organization required to register under paragraph 1 or 2 of this subsection or in the capacity as an employee of a governmental entity.

(ii) Uses the CPA designation, unless the name used is the name of the individual as registered with the board.

B. Attest services or compilation services shall be provided only through a registered firm in good standing in this state.  Any attest services or compilation services reports issued by a firm must be signed by a person who is certified pursuant to this chapter or qualified to exercise the limited reciprocity privilege pursuant to section 32-725, subsection G.

C. An application or registration pursuant to this section shall be made by an owner of the firm who is a certified public accountant in good standing. A firm that is registered pursuant to this section may use the CPA designation in connection with its firm name as provided for by the board in its rules.

D. A firm that applies or registers pursuant to this section shall list in its application or registration all jurisdictions in which the firm has any disciplinary actions, other than for failure to timely renew a registration, license or permit, by any other jurisdiction.

E. Except as provided in subsection F of this section, an applicant for registration or a firm registered pursuant to this section shall notify the board in writing within one month of any change in owners that results in less than a simple majority of the ownership in terms of direct and indirect financial interests and voting rights that belong to holders in good standing of certificates or licenses as certified public accountants in any jurisdiction.

F. The board or the board's executive director may grant a reasonable period of time for the firm to take corrective action to maintain its qualifications as a firm.

G. Professional corporations that are composed of certified public accountants shall meet the requirements of title 10, chapter 20 and any additional nonconflicting requirements contained in this section.

H. Limited liability companies, professional limited liability companies and limited liability partnerships composed of certified public accountants shall meet the requirements of title 29, chapter 5 or 7 and any additional nonconflicting requirements contained in this section.

I. A registrant may not use any firm name other than the firm name that is registered with the board.

J. For the purposes of this section, "good standing" means:

1. For an individual, a status that allows the individual to use the CPA designation and to perform accounting services for a fee or other compensation.

2. For a firm, a status that allows the firm to use the CPA designation.