Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
325.220(6),
325.301,
325.380
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
325.240(2) authorizes the
Kentucky State Board of Accountancy to promulgate administrative regulations
for the administration of KRS Chapter 325.
KRS
325.301(4) through (8)
require the board to promulgate administrative regulations concerning
applications, renewals, and related fees. This administrative regulation
establishes the procedures for firms to obtain and renew a license to practice
as required by KRS
325.301.
Section
1. Definitions.
(1) "Certified
public accountant owner" means a certified public accountant with a current and
active license to practice issued by a state board of accountancy and who is
operating a public accounting firm as a:
(a)
Shareholder in a corporation;
(b)
Partner in a partnership or registered limited liability partnership;
(c) Member of a limited liability company;
or
(d) Sole proprietor.
(2) "Firm" is defined by
KRS
325.220(3).
(3) "Firm manager" is defined by
KRS
325.220(4).
(4) "Nonlicensed owner of the firm" means a
person referred to in
KRS
325.301(3)(b).
Section 2. To obtain an initial
license to practice, the firm manager shall submit:
(1) A completed Instate Application form;
and
(2) A check or money order made
payable to the Kentucky State Board of Accountancy in the amount of $100. This
fee shall be nonrefundable.
Section
3. To obtain an initial license to practice, a sole proprietor
shall submit:
(1) A completed Sole Proprietor
Firm Application form; and
(2) The
fee required by Section 2(2) of this administrative regulation.
Section 4. A certified public
accountant shall:
(1) Have ultimate
responsibility for all services provided by the firm;
(2) Have ultimate authority over any unit,
division, or branch of the firm that performs attest services; and
(3) Comply with the Statement on Quality
Control Standards, January, 2012, issued by the American Institute of Certified
Public Accountants Auditing Standards Board, as incorporated by
reference.
Section 5. A
nonlicensed owner of the firm shall not sell or otherwise transfer any
ownership interest in the firm to any person who fails to satisfy the
requirements of KRS
325.301(3).
Section 6. Renewal of a Firm License.
(1) Except as provided in subsection (2) of
this section, a firm manager shall renew a firm license by:
(a) Using the online Firm License Renewal
System offered by the board at
www.cpa.ky.gov; and
(b) Paying a nonrefundable renewal fee in the
amount of $100.
(2) If a
firm manager is unable to use the online procedure, he or she shall:
(a) Submit a written request to obtain a
paper copy of the Firm License Renewal form to the Kentucky State Board of
Accountancy, 332 W. Broadway, Suite 310, Louisville, Kentucky 40202;
(b) Complete and submit the form to the
board; and
(c) Submit a check or
money order made payable to the Kentucky State Board of Accountancy in the
amount of $100. This fee shall be nonrefundable.
(3) A sole proprietor shall renew his or her
firm license according to the procedures contained in this section.
Section 7.
(1) A firm manager who fails to renew the
firm license by the August 1 deadline shall renew the license on or before
September 1 by:
(a) Utilizing the online Firm
License Renewal System offered by the board at
www.cpa.ky.gov;
(b) Paying the nonrefundable $100 renewal
fee; and
(c) Paying a nonrefundable
$100 late fee.
(2) A
firm manager shall correct any outdated or inaccurate information listed on the
Firm License Renewal System except for a change in the name of the
firm.
Section 8. A firm
is prohibited from operating and holding out as a CPA firm if the firm license
is expired for a period of more than one (1) month.
Section 9. Changes in firm information. A
firm manager shall notify the board within thirty (30) days of any changes to
the licensing information on file with the board by submitting a Firm Change
form.
Section 10.
(1) Upon the death or retirement of a firm
member which is composed of only two (2) certified public accountant owners,
the board shall authorize the continuation of the use of the firm name by the
surviving certified public accountant owner for a period of time not to exceed
two (2) years from the date of the certified public accountant owner's death or
retirement.
(2) The remaining
certified public accountant owner shall advise the board in writing of this
change within thirty (30) days of its occurrence.
Section 11. The firm name registered with the
board shall be the firm name used in all circumstances.
Section 12.
(1) The following material is incorporated by
reference:
(a) "Instate Firm Application",
August, 2015;
(b) "Firm Change
Form" August, 2015;
(c) "Firm
Online License Renewal Process", August, 2015;
(d) "Firm License Renewal", January,
2015;
(e) "Statement on Quality
Control Standards", January 2012; and
(f) "Sole Proprietor Firm Application",
August, 2015.
(2) This
material may be inspected, copied, or obtained, subject to applicable copyright
law, at the State Board of Accountancy, 332 W. Broadway, Suite 310, Louisville,
Kentucky 40202, Monday through Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY:
KRS
325.240(2),
325.301(4), (5), (6), (7),
(8)
