REVISION OF CHAPTER 6, TITLE 32; STATUTES RELATING
TO PROFESSIONS AND OCCUPATIONS; AMENDING LAWS RELATING
TO CERTIFIED PUBLIC ACCOUNTANTS AND PUBLIC ACCOUNTANTS,
AS ADOPTED BY THE FORTY-SIXTH LEGISLATURE,
FIRST REGULAR SESSION, 2003

INDEX

ARTICLE 1. BOARD OF ACCOUNTANCY

Section

32-701. Definitions.

32-702. Organization; compensation.

32-703. Rule-making powers of board; exemption.

32-704. Immunity.

32-705. Disposition of fees.

32-706. Repealed.

32-707. Record of proceedings; admissibility as evidence.

ARTICLE 2. CERTIFICATION AND REGISTRATION

32-721. Certified public accountant; qualifications.

32-722. Repealed.

32-723. Certified public accountant examination; qualifications.

32-724. Reciprocity; certificate.

32-725. Reciprocity; incidental practice.

32-726. Substantial equivalency.

32-727. Repealed.

32-728. Repealed.

32-729. Examination and certificate fee.

32-730. Biennial registration; continuing education.

32-730.01. Repealed.

32-731. Certified public accountant partnership; qualifications.

32-732. Public accountant partnership; requirements.

32-733. Repealed.

32-734. Professional corporations; qualifications.

32-735. Professional limited liability companies; qualifications

ARTICLE 3. REGULATION OF CERTIFIED PUBLIC ACCOUNTANTS

32-741. Revocation or suspension of certificate; disciplinary action for holder.

32-741.01. Relinquishment of certificate with disciplinary proceedings pending.

32-742. Revocation or suspension of certificate; partnerships; professional corporations.

32-742.01. Investigations.

32-743. Hearings before board; notice; procedure; review.

32-744. Statements and working papers as property of accountant; exception.

32-745. Employment of persons by accountants.

32-746. Fraudulent audit practices; classification.

32-747. Unlawful use of designation or abbreviation; classification.

32-747.01. Restricted financial services; requirements.

32-748. Reinstatement.

32-749. Confidential nature of information acquired by accountants; privilege; conditions for disclosure; public records; exceptions.

32-750. Injunction against unlawful act.

32-751. Actions to recover civil penalties.

ARTICLE 1. BOARD OF ACCOUNTANCY

§ 32-701. Definitions

§ 32-702. Arizona state board of accountancy; membership; administrative duties; compensation

§ 32-703. Powers and duties; rules; executive director; advisory committees and persons

§ 32-704. Immunity from liability

There is no liability on the part of, and no cause of action may arise against, the board, its members or professional investigators or any board formed committee and its members, agents or employees for any act done or proceeding undertaken or performed in good faith and in furthering the purposes of this chapter.

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§ 32-705. Board of accountancy fund; disposition of monies

A. The board of accountancy fund is established consisting of fees authorized by this chapter. Except as provided by subsection c of this section, the board shall deposit, pursuant to sections 35-146 and 35-147, ninety per cent of all monies collected under this chapter in the board of accountancy fund and the remaining ten per cent in the state general fund.

B. Monies deposited in the fund are subject to section 35-143.01.

C. Monies collected by the board as administrative penalties pursuant to this chapter shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

D. The legislature shall appropriate monies from the fund for the expenses of administering this chapter, including:

1. Costs of conducting investigations, taking testimony and procuring the attendance of witnesses before the board or its committees.

2. Legal proceedings taken for the enforcement of this chapter.

3. Educational programs for the benefit of the public, registrants and their employees.

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§ 32-707. Record of proceedings; admissibility as evidence

The board shall keep records of its proceedings, and in any proceeding in court, civil or criminal, arising out of or founded upon any provision of this chapter, copies of such records certified as correct under the seal of the board shall be admissible in evidence as tending to prove the content of such records.

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ARTICLE 2. CERTIFICATION AND REGISTRATION

§ 32-721. Certified public accountant; qualifications

A.  The board shall issue a certificate of certified public accountant to any individual who:

1.  Meets the requirement to take the examination pursuant to section 32‑723.

2.  Within a period of time prescribed by the rules of the board, has obtained a passing grade in each subject of the examination for certified public accountant in this state, or in any other state, territory or possession of the United States that uses the questions and grading facilities of the American institute of certified public accountants or any other institution approved by the board.

3.  Meets the following character and fitness requirements:

(a)  Is at least eighteen years of age.

(b)  Is of good moral character.

(c)  Has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate or other disciplinary action pursuant to section 32‑741.

4.  Meets the additional experience and educational requirements prescribed by subsection B of this section, as applicable.

B.  In addition to the requirements prescribed by subsection A of this section, the applicant must meet both of the following requirements:

1.  Have been employed full time, either before or after passing each section of the examination for certified public accountant, for at least one year in the office of a certified public accountant or public accountant, in private industry or with a government agency that has exposed the applicant to and provided the applicant with experience in the practice of accounting. The board may accept part‑time employment as a substitute for the requirement of one year of full‑time employment if the part‑time employment provides the applicant with equivalent experience in the practice of accounting.

2.  Present satisfactory evidence from an accredited institution or a college or university maintaining standards comparable to those of an accredited institution that the applicant has completed at least one hundred fifty semester hours of education of which:

(a)  At least thirty‑six semester hours are accounting courses of which at least thirty semester hours are upper level courses.

(b)  At least thirty semester hours are related courses.

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§ 32-722. Repealed by Laws 1980, Ch. 175, § 3, eff. July 1, 1980

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§ 32-723. Certified public accountant examination; qualifications

§ 32-724. Reciprocity; certificate

The board may issue a certificate of reciprocity to the holder of a certificate or license issued by another state or a foreign country:

1. On application.

2. On a showing that the applicant has qualifications that are considered to be substantially equivalent to those required by this chapter as provided by section 32-726.

3. On payment of an application fee in an amount prescribed pursuant to section 32-729, subsection B.

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A. The board may grant permission of limited reciprocity to an applicant whose principal place of business is not in this state and who holds either:

1. A valid certificate or license as a certified public accountant issued by any state or foreign country with licensure requirements for certified public accountants that the board has verified to be substantially equivalent to the requirements for licensure as a certified public accountant in this state. That individual is considered to have qualifications that are substantially equivalent to the requirements prescribed pursuant to this chapter, as provided by section 32-726, and has all of the privileges of certificate holders and licensees in this state without obtaining a certificate or permit under this chapter. To obtain limited reciprocity under this paragraph, the individual must:

(a) Notify the board of the intent to enter this state for purposes of this section.

(b) Affirm to the board by affidavit that the applicant is in good standing in each state in which the applicant holds a certificate or license.

(c) Designate an address in this state for the service of process.

(d) Pay an application fee in an amount prescribed pursuant to section 32-729, subsection B.

2. A valid certificate or license as a certified public accountant issued by any state or foreign country with licensure requirements for certified public accountants that the board has not verified to be substantially equivalent to the requirement for licensure as a certified public accountant in this state. That individual is considered to have qualifications that are substantially equivalent to the requirements prescribed pursuant to this chapter, as provided by section 32-726, and has all of the privileges of certificate holders and licensees in this state without obtaining a certificate or permit under this chapter. To obtain limited reciprocity under this paragraph, the individual must:

(a) notify the board of the intent to enter this state for purposes of this section.

(b) submit to the board an affidavit on a form provided by the board affirming that the applicant:

(i) possesses qualifications that are considered to be substantially equivalent to the requirement for licensure as a certified public accountant in this state.

(ii) is in good standing in each state in which the applicant holds a license or certificate.

(c) designate an address in this state for the service of process.

(d) pay an application fee in an amount prescribed pursuant to section 32-729, subsection b and section 32-730, subsection A.

B. The privileges extended under this section permit the individual to practice as a certified public accountant in this state for not more than twelve consecutive months. On written application, the board in its discretion may extend the certificate for an additional six months. Each application for extension must include an application fee in an amount prescribed pursuant to section 32-729, subsection B.

C. As a condition of exercising the privileges provided by this section, a licensee or registrant of another state who exercises the privileges provided by this section agrees and consents, as a registrant for purposes of limited reciprocity, to:

1. Comply with this chapter and rules adopted pursuant to this chapter.

2. The personal and subject matter jurisdiction and disciplinary authority of the board.

3. Accept service of process in any action or proceeding by the board at the address designated in the application for limited reciprocity under this section.

D. Persons who hold valid certificates or licenses as certified public accountants issued by other states or foreign countries, whose principal places of business are not in this state, may practice and hold themselves out as certified public accountants in this state for a period of not more than sixty calendar days in a calendar year without complying with the limited reciprocity requirements of this section if either:

1. The person is acting in the capacity of a partner, director, member or employee of a firm that is registered to practice public accounting in this state pursuant to section 32-731 or 32-732.

2. The person notifies the person's client in this state that the person is not subject to the regulatory jurisdiction of the board and the client acknowledges receiving the notice in writing.

3. The person is sponsored by an individual or firm that is licensed or registered to practice public accounting in this state and the sponsor agrees in writing to be liable for any damages caused by, resulting from or attributable to the sponsored person's acts or omissions while the person is providing any manner of accounting services, including tax services, in this state.

E. If the person's activities are limited to the following, the time period provided in subsection d of this section does not apply:

1. Expert witness services.

2. Teaching or lecturing.

3. Other services as determined by the board.

A. If a provision of this article requires a person to have qualifications that are substantially equivalent to the requirements prescribed by this article, the person must meet the requirements prescribed in subsection B, C, D or E of this section.

B. The person must hold a license or certificate to engage in the practice of accounting by a certified public accountant issued by a state whose requirements are determined by the board to be substantially equivalent to those prescribed by subsection C, D, or E of this section.

C. The person must meet the requirements for licensure prescribed by section 32-721.

D. The person must:

1. Have received a baccalaureate or higher degree from an accredited institution or a college or university maintaining standards comparable to those of an accredited institution consisting of at least one hundred fifty semester hours of education.

2. Have at least twenty-four semester hours in accounting courses and at least eighteen semester hours in related courses.

3. Have passed the uniform certified public accountant examination.

4. Have been employed for at least three years in the practice of accounting.

5. Meet the following character and fitness requirements:

(a) Be at least eighteen years of age.

(b) Be of good moral character.

(c) Not have been engaged in any conduct that would constitute grounds for revocation or suspension of a certificate or other disciplinary action pursuant to section 32-741.

E. The person must:

1. Have received a baccalaureate or higher degree from an accredited institution or a college or university maintaining standards comparable to those of an accredited institution.

2. Have at least twenty-four semester hours in accounting courses and at least eighteen semester hours in related courses.

3. Have passed the uniform certified public accountant examination.

4. Have been employed for at least five of the last ten preceding years in the practice of accounting.

5. Meet the following character and fitness requirements:

(a) be at least eighteen years of age.

(b) be of good moral character.

(c) not have been engaged in any conduct that would constitute grounds for revocation or suspension of a certificate or other disciplinary action pursuant to section 32-741.

F. If a person is not able to qualify for substantial equivalency pursuant to this section, the board may consider the person substantially equivalent if the person meets the following requirements:

1. Has passed the uniform certified public accountant examination.

2. Has been employed for at least ten of the last fifteen preceding years in the practice of accounting.

3. Is at least eighteen years of age.

4. Is of good moral character.

5. Has not engaged in any conduct that would constitute grounds for revocation or suspension of a certificate or any other disciplinary action pursuant to section 32-741.

A. The board shall establish and collect a uniform fee from each applicant for each examination held pursuant to section 32-723 to cover reasonable costs of the examination. No additional fee shall be required from an applicant entitled to a certificate after having successfully passed the examination except as provided in subsection B of this section. If the board refuses to allow an applicant to take the examination, the board shall return to the applicant one-half of the examination fee.

B. The board shall establish and collect a uniform fee from each applicant for a certificate to be issued pursuant to section 32-721 or 32-724.

§ 32-732. Public accountant partnership; requirements

§ 32-733. Repealed

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§ 32-734. Professional corporations; qualifications

Professional corporations composed of certified public accountants or public accountants shall meet the requirements of title 10, chapter 20 and any additional nonconflicting requirements contained in sections 32-731 and 32-732. For purposes of this section, wherever in section 32-731 or 32-732 the word "partner" appears, the term shall apply to any shareholder of a professional corporation and, wherever in section 32-731 or 32-732 the word "partnership" appears, the term shall apply to a professional corporation.

Limited liability companies, professional limited liability companies and limited liability partnerships composed of certified public accountants or public accountants shall meet the applicable requirement of title 29, chapters 4 or 5 and any additional nonconflicting requirements contained in sections 32-731 and 32-732. For purposes of this section, wherever in section 32-731 or 32-732 the word "partner" appears, the term shall also apply to any member of a limited liability company or a professional limited liability company and, wherever in section 32-731 or 32-732 the word "partnership" appears, the term shall also apply to a limited liability company or a professional limited liability company.

A. After notice and an opportunity for a hearing, the board may revoke or suspend any certificate granted under this chapter and may take disciplinary action concerning the holder of any certificate for any of the following causes:

1. Conviction of a felony under the laws of any state or of the United States if civil rights have not been restored pursuant to title 13, chapter 9 or other applicable recognized judicial or gubernatorial order.

2. Conviction of any crime that has a reasonable relationship to the practice of accounting by a certified public accountant or by a public accountant, including crimes involving accounting or tax violations, dishonesty, fraud, misrepresentation, embezzlement, theft, forgery, perjury or breach of fiduciary duty, regardless of whether civil rights have been restored.

3. Fraud or deceit in obtaining a certificate as a certified public accountant or in obtaining a certificate as a public accountant under this chapter.

4. Dishonesty, fraud or gross or continuing negligence in the practice of accounting.

5. Cancellation, revocation or suspension of any certificate or other authority to practice or refusal to renew the certificate or other authority to practice as a certified public accountant by any other state or foreign country for any cause other than failure to pay license or registration fees.

6. Violation of any of the provisions of this chapter, of title 44, chapter 12, article 13 or of any fraud provisions of the federal securities laws.

7. Final judgment in a civil action if the court makes findings of accounting violations, dishonesty, fraud, misrepresentation or breach of fiduciary duty.

8. Final judgment or order in a civil action or administrative proceeding if the court or agency makes findings of violations of any fraud provisions of the laws of this state or federal securities laws.

9. Knowing violation of any decision, order or rule issued or adopted by the board.

10. Suspension or revocation for cause of the right to practice before the federal securities exchange commission or any other governmental body or agency.

11. Offering or accepting commissions or contingency fees for services rendered for clients for whom attest function services are also offered or rendered in the performance of the practice of accounting unless:

(a) The fee is fixed by a court or another public authority.

(b) In a tax matter, the fee is determined based on the results of a judicial proceeding or the finding of a governmental agency.

12. Failing to disclose to a client that the registrant has received or expects to receive a commission from a third party for any engagement, services or product sales involving services other than the attest function.

13. Knowingly making any false or misleading statement or verification in support of an application for a certificate, registration or permit filed by another person.

14. Knowingly making a false or misleading statement:

(a) To the board or its designated agent.

(b) On a form required by the board.

(c) In written correspondence to the board.

15. Failing to respond or furnish information in a timely manner to the board or its designated agent, if the information is legally requested by the board and is in the registrant's possession or control.

B. Pursuant to title 41, chapter 6, article 10, the board may summarily suspend the certificate of any certified public accountant or public accountant pending proceedings for revocation or other disciplinary action on the receipt of either of the following:

1. A notice of conviction of any crime that has a reasonable relationship to the practice of accounting, including crimes involving accounting or tax violations, dishonesty, fraud, misrepresentation, embezzlement, theft, forgery, perjury or breach of fiduciary duty or of any felony.

2. A final judgment or order in a civil action or administrative proceeding in which the court or agency made findings of violations of any fraud provisions of the laws of this state or federal securities laws.

C. The certificate of any certified public accountant or public accountant who fails to timely register and pay the biennial registration fee as required by section 32-730, subsection A shall be automatically suspended without prior notice or a hearing. Terms of a suspension issued under this subsection shall include a provision that the suspension shall be automatically vacated when the registrant has paid all past due fees. The board may waive the collection of any fee after suspension under conditions which the board deems justifiable. If the certified public accountant or public accountant fails to reinstate the certificate within twelve months of the date of suspension, the certificate expires. The board shall not reinstate a certificate of a certified public accountant or public accountant whose certificate has expired pursuant to this subsection unless the certified public accountant or public accountant complies with section 32-730, subsection H or section 32-748.

D. The board shall, after notice and a hearing, suspend the certificate of any certified public accountant or public accountant who fails to show proof, in accordance with section 32-730, subsection D, of compliance with the continuing professional education requirements established by the board. If the board determines that the failure was for reasonable cause or excusable neglect, the board may require compliance as expeditiously as possible. If the certified public accountant or public accountant fails to reinstate the certificate within twelve months after the date of suspension, the certificate expires. The board shall not reinstate a certificate that has expired pursuant to this subsection unless the certified public accountant or public accountant complies with section 32-748 and all other requirements for reinstatement.

E. The board may take disciplinary action against a holder of a certificate issued pursuant to this chapter who is practicing accounting even if the person is not representing to the public that the person is a certified public accountant or a public accountant and even if the person is practicing accounting in a firm that is not registered by the board.

F. The board may issue a letter of concern if, in the opinion of the board, there is insufficient evidence to support disciplinary action against the registrant, but the board believes, as a result of information ascertained during an investigation, that continuation of the activities that led to the investigation may result in future board action against the registrant. A registrant may file a response with the board within thirty days after receipt of a letter of concern. Letters of concern issued by the board and records kept by the board in connection with investigations leading to letters of concern are confidential and are not public records.

A. A certified public accountant or public accountant against whom disciplinary proceedings have been initiated may relinquish his certificate to the board during the course of the board's investigation. The board shall consider a relinquishment tendered by a certified public accountant or public accountant pursuant to this section and shall determine whether to accept the relinquishment. The board shall issue an order documenting its decision.

B. A certified public accountant or public accountant who relinquishes a certificate pursuant to this section loses the right to practice accounting as a certified public accountant or public accountant in this state. A person who relinquishes a certificate pursuant to this section and who desires to apply for a new certificate shall meet all of the requirements for applicants for initial certification pursuant to section 32-721.

C. If the board accepts the relinquishment of a certificate of a certified public accountant or public accountant, the person shall return the certificate to the board and shall attach to the certificate a document that is signed and dated and that is in substantially the following form:

I, (Insert name of registrant), acknowledge that disciplinary proceedings have been initiated against me pursuant to title 32, chapter 6, article 3, Arizona Revised Statutes, and I relinquish my right to practice accounting as a (insert either "certified public accountant" or "public accountant") in the state of Arizona. I understand that if I choose to apply for a new certificate, I must meet all requirements for initial certification pursuant to section 32-721, Arizona Revised Statutes. I further understand that, in deciding whether to issue a new certificate to me, the board will consider all disciplinary actions currently pending against me and any other matters it determines to be appropriate.

§ 32-742.01. Investigations

A. The board on its own motion, or on receiving a complaint or other information suggesting violations of this chapter or board rules, may conduct or direct an authorized committee to conduct an initial analysis which shall be completed before the board may open an investigation file pursuant to subsection b to determine whether reasonable cause exists to believe that there is a violation of this chapter or board rules. The board or its authorized committee may designate one or more persons of appropriate competence to assist the board in its initial analysis.

B. After an initial analysis if the board finds reasonable cause to believe there is a violation of this chapter or board rules, the board may direct that an investigation file be opened to determine if there is reasonable cause to institute disciplinary proceedings under this chapter. An investigation is not a prerequisite to disciplinary proceedings under this chapter if reasonable cause can be determined without an investigation.

C. To assist in the investigation, the board or an authorized committee may designate one or more persons of appropriate competence to be investigators. When completing an investigation, the investigator shall file a report with the board or an authorized committee. Based on the investigator's report, the board or authorized committee may request further investigation, hold voluntary investigative interviews, make appropriate recommendations for dismissal, letters of concern, consent orders or other disciplinary actions.

D. If the board does not find reasonable cause to believe that there is a violation of this chapter or board rules, the board shall close the investigation file.

A. The board may initiate proceedings under this chapter, for cause, either on its own motion or a verified complaint pursuant to title 41, chapter 6, article 10.

B. A written notice stating the nature of the charge or charges against the holder of a certificate and the time and place of the hearing before the board on the charges shall be served not less than twenty days prior to the date of the hearing either personally or by mailing a copy of the notice, certified mail, to the address last known to the board.

C. If, after having been served with the notice of hearing, the person fails to appear at the hearing and defend, the board may proceed to hear evidence against the person and may enter such order as shall be justified by the evidence.

D. At all hearings the attorney general of this state, one of the attorney general's assistants or a special assistant designated by the attorney general shall appear and represent the board.

E. The decision of the board shall be by majority vote. Any person aggrieved by the decision may file a motion for a rehearing pursuant to title 41, chapter 6, article 10.

F. Except as provided in section 41-1092.08, subsection H, the board's final decision is subject to judicial review pursuant to title 12, chapter 7, article 6.

A. All statements, records, schedules, working papers and memoranda prepared by a registrant or a partner, shareholder, officer, director, member, manager or employee of a registrant incidental to or in the course of rendering professional services to a client while a registrant are and shall remain the property of the registrant, except:

1. In the case of an express agreement between the registrant and the client to the contrary.

2. The reports submitted by the registrant to the client.

3. Records that are part of the client's records.

B. Without the consent of the client or the client's personal representative or assignee, no statement, record, schedule, working paper or memorandum may be sold, transferred or bequeathed to anyone other than surviving partners, stockholders or members or new partners, new stockholders, new members of the firm or any combined or merged firm or successor in interest to the firm.

C. On request with reasonable notice, a registrant shall timely furnish to a client or former client:

1. A copy of the registrant's working papers, to the extent that the working papers include records that would ordinarily constitute part of the client's records and are not otherwise available to the client.

2. Any accounting or other records belonging to, or obtained from or on behalf of, the client that the registrant removed from the client's premises or received for the client's account. The registrant may make and retain copies of these documents if they form the basis for work done by the registrant.

D. A registrant or firm shall maintain all records pertaining to any legal action initiated against the registrant or firm for a period of three years after the resolution of the action. On request, the registrant or firm shall timely furnish all records pertaining to the legal action to the board. For the purposes of this subsection, "legal action" means any civil or criminal lawsuit or state or federal administrative proceeding where the allegations against the registrant or firm are violations of accounting or auditing standards or that result from negligence, gross negligence or reckless conduct, dishonesty, fraud, misrepresentation, breach of fiduciary duty or the suspension or revocation of the right to practice before the federal securities and exchange commission, the internal revenue service or any other state or federal agency.

E. Except as provided in subsection d, this section does not require a registrant to keep any work paper beyond the period prescribed by any other applicable statute.

Nothing in this chapter shall be construed as preventing a person from being employed by a certified public accountant, a public accountant, a partnership of certified public accountants or a partnership of public accountants if such employed person does not sign reports or assume any responsibility for the conduct of his employer's professional practice.

A. A person commits fraudulent audit practices if such person knowingly prepares, issues or offers or files with any public agency an audit report or certificate on any financial statement which is materially false or misleading or fraudulent, or which purports to fairly present the financial position, results of operations or changes in financial position of the person or entity reported on but fails to do so.

B. Fraudulent audit practices is a class 5 felony. Fraudulent audit practices in connection with any securities offering or involving the filing of financial statements in connection with securities is a class 4 felony.

A.  An individual who has received from the board a certificate to practice as a certified public accountant,  or as a public accountant issued under the laws of the state or who is a limited reciprocity privilege holder under section 32-725 shall be known as a "certified public accountant" or "public accountant", in accordance with the certificate or the privilege and may also use the abbreviation "C.P.A.", "CPA", "P.A." or "PA", in accordance with the certificate or the privilege.  No other individual or firm shall assume or use any title, designation or abbreviation or any other title, designation, sign, card or device in this state tending to indicate that the individual or firm using it is authorized to practice public accounting or is a certified public accountant or a public accountant.

B.  No individual or firm shall when referring to accounting or accounting practices assume or use the title or designation "chartered accountant", "certified accountant", "enrolled accountant", "registered accountant", "licensed accountant", "certified tax accountant", "certified tax consultant" or any other title or designation likely or intended to be confused with "certified public accountant" or "public accountant" unless the individual or firm has received from the board a certificate to practice as a certified public accountant or as a public accountant issued under the laws of this state, the individual is a limited reciprocity privilege holder under section 32-725 or the partnership, corporation or other entity is permitted to practice accounting in this state pursuant to section 32-725, subsection G.  No individual or firm shall assume or use any of the abbreviations "C.A.", "E.A.", "R.A.", "C.T.A.", "C.T.C.", "L.A." or similar abbreviations likely or intended to be confused with "C.P.A.", "CPA", "P.A." or "PA".  An individual who is qualified as a certified public accountant in this state and who also holds a comparable title under the laws of another country may use the title in conjunction with the title "certified public accountant", "C.P.A." or "CPA", and an individual enrolled to practice before the internal revenue service and recognized as an enrolled agent may use the abbreviation "E.A.".

C.   This section does not apply to or affect or limit the right to continuous use of a partnership name, or a modification of a partnership name, by successor firms formed by the remaining partner or partners or added partner or partners even though the individuals whose names are included in the partnership name are not partners, but the successor firm shall conform to all other provisions of this chapter.  This section does not apply to or affect or limit the right to continuous use of a professional corporation's name as provided pursuant to this chapter or title 10, chapter 20 or a professional limited liability company's name pursuant to this chapter or title 29, chapter 4.

D.  No corporation or professional limited liability company shall be permitted to practice public accounting in this state, except that this subsection does not apply to a professional corporation incorporated under the laws of this state or to a professional limited liability company, either of which is properly qualified to do business within this state and is otherwise qualified to practice accounting under this chapter.

E.  If an individual violates this chapter, or represents himself to the public as having received a certificate or registration to practice after a certificate or registration has been revoked or suspended, the individual is guilty of a class 2 misdemeanor unless another classification is specifically prescribed in this chapter.  Each day an offense is committed constitutes a separate offense.

F.  The displaying or uttering by an individual or firm of any card, sign, advertisement or other printed, engraved or written instrument or device bearing an individual's or firm's name and intended to be confused with the words "certified public accountant" or "public accountant" or an abbreviation of either shall be prima facie evidence in a prosecution, proceeding or hearing brought under this section that the individual or firm whose name is so displayed caused or procured the displaying or uttering of the card, sign, advertisement or other printed, engraved or written instrument or device.

Except as provided in section 32-725, subsection G, an individual who holds a certificate issued by the board to practice as a certified public accountant or a public accountant may provide restricted financial services only if the individual provides restricted financial services through a firm registered pursuant to this chapter.

A. On application in writing, on completing all of the requirements prescribed by the board and for good cause shown, the board may:

1. Issue a new certificate to a certified public accountant or a public accountant whose certificate has been revoked.

2. Permit the reinstatement of anyone whose certificate has expired, has been canceled or has been suspended.

3. Modify the suspension of any certificate to practice public accounting which has been suspended.

4. Find that the probationary requirements have been fulfilled.

B. "Good cause shown" as used in this section means that the person making application for reinstatement or reissuance shall demonstrate through substantial evidence presented to the board that he is completely rehabilitated with respect to the conduct which was the basis of the revocation or suspension of his certificate or registration. Demonstration of rehabilitation shall include evidence:

1. That the person has not engaged in any conduct during the revocation, suspension, expiration or cancellation period which, if licensed or registered during the period, would have constituted basis for revocation or suspension pursuant to section 32-741 or 32-742.

2. That, with respect to any criminal conviction which constituted any part of the basis for the previous revocation or suspension, civil rights have been fully restored pursuant to statute or other applicable recognized judicial or gubernatorial order.

3. That restitution has been made as ordered by the board and that restitution has been made as ordered by a court of competent jurisdiction as a result of the registrant's violation of this chapter or rules adopted pursuant to this chapter.

4. Such other evidence of rehabilitation that the board deems appropriate.

C. Any person making application for issuance or reinstatement of a revoked certificate shall, in addition to the other requirements of this section, comply with all then existing qualifications and requirements for initial certification for the practice of accounting by a certified public accountant or by a public accountant, except those requirements which are inconsistent with this section.

D. The board shall not issue or reinstate a certificate to a certified public accountant or public accountant whose certificate has been revoked prior to the expiration of five years from the effective date of revocation, except if the revocation is based only on section 32-741, subsection A, paragraph 1 or 2 and the criminal conviction is ultimately reversed on appeal, the board shall enter an order vacating such revocation.

A. Certified public accountants and public accountants practicing in this state shall not be required to divulge, nor shall they voluntarily divulge, client records or information which they have received by reason of the confidential nature of their employment. Information derived from or as a result of such professional source shall be kept confidential as provided in this section, but this section shall not be construed as modifying, changing or affecting the criminal or bankruptcy laws of this state or the United States, nor shall it be construed to limit the authority of this state or any agency of this state to subpoena and use the information in connection with any investigation, public hearing or other proceeding.

B. The board shall not require a registrant to disclose taxpayer information protected from disclosure by section 42-2069 or section 43-381 except as provided by those sections.

C. This section and section 32-744 do not prohibit the disclosure of information for:

1. Compliance with ethical investigations or practice monitoring programs conducted by the board or private professional organizations pursuant to programs preapproved by the board. These programs include, but are not limited to, quality and peer reviews. The scope of quality and peer reviews may include subsequent, remedial or corrective actions. Disclosure of information under this paragraph shall not destroy its confidentiality and privilege nor relieve any registrant of the obligation of confidentiality. The registrants to whom the information is provided shall be bound by this section.

2. Access by the board or its duly authorized agents or employees during business hours to examine and copy any documents, reports, records or other physical evidence of any person being investigated by the board on its own motion or as the result of a complaint received, if the documents, reports, records or evidence relates to the competence or professional conduct of the registrant who is being investigated.

D. Records the board maintains in exercising its statutory duties are presumed to be public records pursuant to title 39, chapter 1, article 2 and are generally accessible for inspection and copying. Exceptions to the public records presumption include investigations of registrants. The board shall treat as confidential information the complaint, the investigation report, the testimony and documents submitted in support of the complaint or gathered in the investigation, including information obtained pursuant to section 32-721, and any correspondence related to the complaint or investigation. After the initial analysis under section 32-742.01, if the board opens an investigation file on a complaint, the details and records of the complaint and investigation shall remain confidential however the fact that a complaint or investigation is pending and the nature of the complaint shall be public. The board shall not disclose this confidential information to any person except law enforcement authorities and, to the extent deemed necessary to conduct the investigation, the subject of the investigation, persons whose complaints are being investigated and witnesses questioned in the course of the investigation. Except for client records or information and any information from which the client or the client's property may be identified, the information made confidential under this subsection becomes public record if the board institutes civil enforcement or disciplinary proceedings or issues a consent order in lieu of disciplinary proceedings. If the board dismisses the matter with no disciplinary action, the board may disclose the information relating to the matter only with the consent of the registrant or entity under investigation.

When in the judgment of the board any person has engaged, or is about to engage, in any acts or practices which constitute, or will constitute, a violation of § 32-747, the board may make application to the appropriate court for an order enjoining such acts or practices, and upon a showing by the board that such person has engaged, or is about to engage, in any such acts or practices, an injunction, restraining order, or such other order as may be appropriate shall be granted by such court without bond.

The board may request the attorney general to bring an action in superior court to recover any administrative penalties imposed by the board pursuant to this chapter. An action to recover such penalties shall be brought in the county in which the board has its office, or in the county of residence or principal place of business of the person subject to the penalties.