Arizona State Board of Accountancy

1. Audits or other engagements to be performed in accordance with the Statements on Auditing standards adopted by the American Institute of Certified Public Accountants (AICPA).
2. Reviews of financial statements to be performed in accordance with the Statements on Standards for Accounting and Review services adopted by the AICPA.
3. Any examination of prospective financial information to be performed in accordance with the Statements on standards for Attestation Engagements adopted by the AICPA.
4. Any engagement to be performed in accordance with the Standards of the Public Company Accounting Oversight Board or its successor.
5. Any examination, review or agreed on procedure engagement to be performed in accordance with the statements on Standards for Attestation engagements adopted by the AICPA, other than an examination described in subdivision (c) of this paragraph.

Providing a service of any compilation engagement to be performed in accordance with the Statements on Standards for Accounting and Review Services.

• Partnership, PC, PLLC, LLC, or LLP that meets all of the following criteria:
  • Has a simple majority of the ownership, in terms of direct and indirect financial interests and voting rights, that belong to holders in good standing^1/ of certificates or licenses as CPAs in any jurisdiction^2/.
  • Has an office in this state.
  • Either:
    • Performs attest services or compilation services; or
    • Uses the CPA designation in its business name.
• Sole Proprietorship^3/ that meets all of the following criteria:
  • Has an owner that is a CPA in good standing in this state.
  • Has an office in this state.
  • Either:
    • Performs attest services or compilation services.
    • Uses the CPA designation in its business name, unless the business name is the name of the sole proprietorship as registered with the Board.
• An individual that meets all of the following criteria:
  • Is a CPA in good standing in this state.
  • Either:
  • 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 as described above or in the capacity as an employee of a governmental entity.
  • Uses the CPA designation, unless the name used is the name of the individual as registered with the Board.

Once registered with the Board as a CPA firm, you need to maintain the above-applicable requirements in order to operate as a CPA firm. Failure to do so may result in revocation of the CPA firm’s registration, pursuant to A.R.S. § 32-730.03(A)(4), unless granted an extension of time to comply with firm registration requirements pursuant to A.R.S. § 32-731(F).

^1/ “Good Standing” means 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; which, in Arizona, means “Active” or “Probation,” but which may be a different status in another jurisdiction.

^2/ “Jurisdiction” means the 50 states of the United States, District of Columbia, U.S. Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands or Puerto Rico.

• As trademarked with the Secretary of State (sole proprietors/individuals)
• As organized or incorporated with the Arizona Corporation Commission (partnership, PC, PLLC, LLC, or LLP)
• As certified or registered with the Arizona State Board of Accountancy (sole proprietors/individuals/partnership, PC, PLLC, LLC, or LLP)

• Change your business name to exclude the CPA designation, and if currently registered as a firm, submit a cancelation order with the Board.

• Submit a name change with the Board to amend your name as certified by and registered with the Board to exactly match your business name.
• Change your business name to exactly match your name as certified by and registered with the Board, and if currently registered as a firm, submit a name change form with the Board.

1. Submit application materials
   Helpful Hints - There is no application fee for new firm applications or firm reinstatement applications.
   
   
2. Staff Review
   Pursuant to A.A.C. R4-1-341(C)(2), within 10 days of receiving an application packet, the Board shall notify the applicant that the application is complete. If the application is incomplete, an incomplete notice shall be sent to the applicant that specifies what information is missing. The applicant has 30 days from the incomplete letter to respond in writing and provide all the missing information or the Board may administratively close the file.
   
   
3. Executive Director/Board Review
   Pursuant to A.R.S. § 32-703(B)(14), the Board may delegate to the Executive Director the authority to approve an application for firm registration. If the application is complete and the applicant meets firm registration requirements, it will be approved by the Executive Director and the applicant will be notified of the approval by U.S. mail. If the application is complete but applicant does not meet appropriate requirements, the application will go before the Board to review and make a final determination. The Board generally meets monthly, except for April and October (see the calendar for dates).
   
   
4. Payment of Registration Fee
   Upon approval of the application, the Board will send a letter requesting the biennial registration fee of $300 which is due within 30 days of the date of the letter or the firm will be automatically-suspended without prior notice or a hearing, pursuant to A.R.S. § 32-741.01

• A.R.S § 32-731(I) states that a registrant, which means any CPA or CPA firm registered with the Board, may not use any firm name other than the firm name that is registered with the Board.
• A.A.C. R4-1-455.03(C) provides that a registrant shall not use a professional or firm name or designation that is misleading about the legal form of the firm, or about the persons who are partners, officers, members, managers, or shareholders of the firm, or about any other matter. A firm name or designation shall not include words such as “& Company,” “& Associates,” or “& Consultants” unless the terms refer to additional full‐time CPAs that are not otherwise mentioned in the firm name. (See examples of possible misleading firm names below.)
  
  

Examples of firm names that would be considered misleading include, but are not limited to, the following:

• The CPA firm name includes the plural form of the CPA designation, when only one owner in the firm is a CPA.
• The CPA firm name includes the name of a non-CPA owner of the firm.
• The firm name includes the use of “& Company,” “& Associates,” “& Consultants,” “Group,” or other similar descriptor, when the firm does not have at least two CPA owners not already named in the firm name, or two additional CPA employees with the firm, in addition all named owners.
• The CPA firm name implies the existence of a legal business entity when the firm is not organized or incorporated with the Arizona Corporation Commission as such (e.g., the use of P.C., PLLC, LLC, or LLP).
• The CPA firm name implies certain favorable results can be achieved or creates unjustified expectations (e.g., Arizona’s Best Accounting Firm Ever, PLLC).
• The CPA firm uses a doing-business-as name (e.g. CPA firm uses the firm name “Smith Financial” when it is registered with the Board as “John Smith, CPA, PLLC”.)

^1/A “sole proprietorship” means a business that is owned by one individual and that does not have a legal distinction between the owner and the business. A “sole proprietor” means the owner of a sole proprietorship.

^2/An “individual” means a CPA that IS NOT an owner or employee of a business organization or sole proprietorship or an employee of a governmental entity.

Firm registrations can be reinstated from cancelled, expired, relinquished, or revoked status pursuant to A.R.S. § 32-732.

Cancelled Firms: Pursuant to A.R.S. § 32-732(E), an individual, sole proprietor or business organization whose firm registration has been cancelled may request that the firm registration be reinstated if the individual, sole proprietor or business organization does all of the following:

1. Files an application for reinstatement on the form prescribed by the Board and pays the reinstatement application fee pursuant to A.R.S. § 32-729.
2. Meets the requirements of A.R.S. § 32-731.
3. On Board approval of reinstatement, pays the registration fee pursuant to A.R.S. § 32-729.

Expired, Relinquished, or Revoked Firms: Pursuant to A.R.S. § 32-732(F), an individual, sole proprietor or business organization whose firm registration has expired or been relinquished or revoked may request that the firm registration be reinstated if the individual, sole proprietor or business organization meets all of the following requirements:

1. Files an application for reinstatement on the form prescribed by the Board and pays the reinstatement application fee pursuant to A.R.S. § 32-729.
2. Meets the requirements of A.R.S. § 32-731.
3. On Board approval of reinstatement, pays the registration fee pursuant to A.R.S. § 32-729.
4. Demonstrates through substantial evidence presented to the Board that the firm is completely rehabilitated with respect to the conduct that was pending or outstanding at the time the registration was relinquished or revoked or that occurred before or after the registration expired. Demonstration of rehabilitation includes evidence of the following:
   1. The firm or any owner of the firm has not engaged in any conduct that, if the firm had been registered during the period the conduct occurred, would have constituted a basis for revocation or suspension pursuant to A.R.S. § 32-741.
   2. The firm has addressed or remediated any complaints, investigations or board-ordered requirements that were pending or outstanding at the time of expiration, relinquishment or revocation.
   3. The firm has made restitution as ordered by the Board or by a court of competent jurisdiction as a result of any violation of this chapter or rules adopted pursuant to this chapter.
   4. Other evidence of rehabilitation that the Board deems appropriate.