RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.10
24July1996
ORGANIZATION(96-2955)
Original: English Working Party onProfessional Services
COMMUNICATION FROM THE UNITED STATES
Response tothequestionnaire ontheaccountancy sector
Thefollowing communication iscirculated attherequest oftheUnited States.
_______________
I. GENERAL
1. What aretheprofessional titlesofaccountants inyourcountry? Arethese professional titles
protected? Please specify how.
SeeResponse toB3OECD Survey. Inaddition to“certified public accountant, ”thefollowing
titles areinuseinsome jurisdictions: “public accountant, ”“registered public accountant, ”
“licensed public accountant, ”and“accounting practitioner. ”
Response toB3OECD. Nearly allstates prohibit practising public accountancy andproviding
attest services without alicense. Arizona, North Carolina andWyoming (theso-called “title”
states)donotprohibitservicesprovidedbyunlicensedindividuals,buttheunlicensedindividuals
maynotuserestricted titles.
2. Howistheaccountancy sector regulated inyourcountry: bylaw,professional self-regulation,
acombination ofboth?
Bystatelawandbyprofessional self-regulation. Self-regulation applies tostandard setting
(accounting/auditing), code ofprofessional conduct (including independence requirement).
SeeResponse toB2IFAC Survey.
Response toB2IFAC. Aspects oftheprofession thatareself-regulated: standards setting
(accounting/auditing), codeofprofessional conduct (including independence requirement).
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
SeeResponse toA6OECD Survey.
Response toA6.OECD. NoU.S.restrictions apply totheuseofinternational firmnames.
Theprovisions oftheU.S.trademark laworinternational conventions towhich theU.S.is
aparty mayapply ininstances where aforeign name isperceived asbeing deceptively similar
toaU.S.trademarked name. Statelicensing lawsalsodefine firmnames, theuseoffictitious
surnames, andtheuseofnames ofdeceased individuals previously named inthefirmtitle.S/WPPS/W/7/Add.10
Page2
4. What aretheprofessional bodies inyourcountry? Aretheyrecognized bylawasaregulatory
ordisciplinary bodyfortheaccountancy profession inyourcountry, orarethese functions
fulfilled byother institutions (please specify)?
TheAmerican Institute ofCertified Public Accountants isthenational professional body for
CPAs. There arealsosocieties ofCPAs ineachoftheU.S.jurisdictions. Thestates license
CPAs andenforce licensing requirements. Seealsoresponses toA2,B4andB5IFAC Survey.
The54stateandterritorial boards ofaccountancy belong toanumbrella organization, called
theNational Association ofState Boards ofAccountancy.
Response toA2IFAC. States license CPAs. TheAICPA hasfunctions suchasQuality Review
andProfessional Ethics which statelicensing authorities mayutilize. Thisvaries from state
tostate. Response toB4.B5.IFAC. Auditing (forallcompanies) isgenerally regulated by
StateBoards ofAccountancy, and(forpublicly-trade companies) theSecurities andExchange
Commission. Taxconsultation andrepresentation isregulated bytheInternal Revenue Service
andbyStateBoards. Industry andpublic sector accounting andbookkeeping services arenot
regulated.
5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
- inpublic practice
- inindustry orcommerce
- inthepublic sector
- ineducation
- unoccupied (retired, etc.)
- other
In1995, of323,779 AICPA members, 40.7% wereinpublic accounting; 41.7% inbusiness
andindustry; 2.4% ineducation; 4.4% ingovernment; and10.8% were retired orengaged
inmiscellaneous activities.
6. What isthescope ofactivities regularly practised byaccountants inyourcountry?
- statutory audit
- audit ofmergers
- audit ofcontributions inkind
- public sector audit
- other audits
- accounting
- insolvency practice
- taxadvice
- taxrepresentation
- investment advice
- consulting
- expert witness inaccounting
- other
Accountants intheUnited States practice allofthefunctions listed. Seeresponses B8,B9.1,
B9.2, IFAC Survey.S/WPPS/W/7/Add.10
Page3
Response toB8IFAC. Auditing functions arereserved exclusively fortheaccountancy
profession.Accounting,bookkeepingandinsolvencypracticeisnotreservedforanyprofession.
Non-CPAs maypractice industry andprivate sector accounting andbookkeeping. Tax
consultation andrepresentation arenotreserved foraccountancy orother professions, butare
practised primarily bythelegalandaccountancy professions. Response toB91IFAC. The
accountancy profession isamajor provider ofauditing, accounting (including public sector)
andtaxconsultation andrepresentation functions; average providers ofbookkeeping and
insolvency services. Response toB92IFAC. Firms aremajor providers ofauditing services,
averageprovidersofinsolvencyservices.Individualsaremajorprovidersofaccountingservices
(including public sector), average providers ofbookkeeping andinsolvency services. CPA
firms donotpractice before taxing authorities, individuals do.However, many ofthem are
members offirms andaclient mayengage thefirmeventhough anindividual provides the
service.
7. Which ofthese activities areregulated inyourcountry?
IntheUnited States, apractitioner mustbelicensed asa“certified public accountant ”(CPA)
ora“public accountant ”(PA)insome states toperform audits ofcompanies. Alicense is
nottypically required fortheperformance ofaccounting functions other thanaudit andattest
services forcompanies bythose notholding outtothepublic asCPAs.
8. Which oftheseactivities arereserved bylawtoaccountants, shared byaccountants withother
professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.byfull
prohibition orbynotallowing cumulation ofcertain activities which areconsidered
incompatible ormutually exclusive?
SeeAnswer toQuestion 7.Allstates prohibit anindividual from claiming tobeaCPA or
using similar words ortitles ifthatperson isnotlicensed assuch.
II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber
ofyears require foreach element, andthedifferences according totheactivities (audit,
insolvency, tax,etc.)covered bythequalification.
Thelicense isgranted andregulated bytheindividual states andterritories. Licensure is
dependent upon satisfaction ofcertain requirements, primarily dealing withexamination,
education andexperience: (1)Allstates require thatapplicants passthesame professional
examination-- theUniform CPA Examination. (Some states maysupplement thiswithan
examination onethics andlocalregulations. (2)Generally, applicants musthavecompleted
anundergraduate degree withaspecialization inaccountancy. (Many states haveadopted,
andafewstates havealready implemented, a150-hour education requirement, alsowitha
specialization inaccounting.)
10. Arethere anypre-conditions tomeet tostarttheprofessional education: minimum age,
particular diploma ortitle,prior education, registration withaprofessional body, payment
ofafee,other (please specify)?
None.S/WPPS/W/7/Add.10
Page4
11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general law,
economics, ethics, information technology, other (please specify)?
Thevastmajority ofStates require allCPAs tohaveabaccalaureate degree fromanaccredited
college oruniversity. Thirty-six states havepassed lawswhich (when theytakeeffect) will
require 150hours ofpost-secondary education withaconcentration inaccounting. Most states
require business-related subjects, suchasbusiness law,management, marketing, statistics,
economics andfinance. Some states require acourse inaccounting-related computer and
information systems.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify theirmain policy objectives.
Auditingandaccountingstandardsgoverntheprofessionalpracticeofcertifiedpublicaccountants
whoaudit financial statements prepared inconformity withgenerally accepted accounting
principles andaudited inaccordance withgenerally accepted auditing standards.
13. Which bodyorinstitution develops thesestandards andmonitors theirimplementation? What
aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients, etc.)?
TheAuditingStandardsBoardoftheAmericanInstituteofCertifiedPublicAccountants(AICPA)
develops theobjectives foranaudit andstandards forcarrying outaudits andother attest
services. TheFinancial Accounting Standards Board (FASB) istheprimary body thatsets
accounting standards thatconstitute generally accepted accounting principles. Inaddition, the
AICPA Accounting Standards Executive Committee issues statements ofposition which also
constitute generally accepted accounting principles. TheSecurities andExchange Commission
(SEC) hastheultimate authority tosetaccounting standards forpublic companies, andthe
Congress hasrecently recognized theSEC’sauthority tosetauditing standards. However,
theSECgenerally relies ontheprivate sector process, subject toSECoversight. Bothauditing
andaccounting standards aredeveloped inkeeping withthemajor policy objective ofserving
thebroad public interest. Statelicensing boards haveauthority torevoke CPAlicenses. AICPA
hasenforcement procedures under itsethics codewhich canresult insuspensions ofpractice
andrevocation ofmembership. TheSecurities andExchange Commission candiscipline a
CPAforimproper professional conduct before theSECthrough suspension ofpractice. For
companies thatissuefinancial statements, failure tocomply withaccounting standards canresult
inaqualified oradverse auditopinion which mayinhibit theability toborrow orissuestock.
Further, bothcompanies andauditing firms canbe(andoften are)suedforfailure tocomply
withaccounting orauditing standards.
14. Aretheinternational standards developed byIFAC (International Education Standards and
Guidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognized orusedinyourcountry? Ifyes,please explain how. Ifno.Please
explain why.
TheU.S. profession isactive inIFAC andinIASC indeveloping international standards.
Ingeneral, however, theinternational standards arenotusedintheUnited States because
domestic standards aremore definitive. Forforeign companies filing withtheSEC, however,
someinternationalstandardsareaccepted(e.g.,portionsofthebusinesscombinationsandforeign
currency transaction standards andthecashflowstandards). TheSECisworking through theS/WPPS/W/7/Add.10
Page5
International Organization ofSecurities Commissions (IOSCO) tomonitor thedevelopment
ofanacceptable coresetofaccounting standards bytheIASC andacceptable auditing standards
byIFAC thatIOSCO could recommend tomember countries foracceptance incross-border
offerings andlistings. Matters withrespect tointernational standards areprudential and
responsibilityfortheirdevelopmentrestswiththeappropriateregulatorsandthosewithexpertise
inaccounting.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
AICPA ’sethics codeapplies toallCPAs. SeeAnswer toQuestion 13.
16. Which body orinstitution develops thiscodeandmonitors itsimplementation? What are
theconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
SeeAnswer toQuestion 13.
17. Arethere restrictions onmarketing, solicitation, advertising?
SeeResponse toC6OECD Survey.
Response toC6OECD. Advertising isgenerally permitted aslongasitisnotfalse or
misleading. Federal andstate laws preclude restrictions onadvertising byprofessional
organizations, firms orindividuals.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
SeeResponse toC7OECD Survey.
Response toC7OECD. There arenorestrictions onfee-setting forpurposes ofinternational
practice. Most states bancommissions andcontingent fees. Texas doesnotallow audit fees
tobebelow thecostofproviding theservice.
IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart fromthequalification requirements, whatarethelicensing requirements forindividuals
inyourcountry?
- membership ofaprofessional body(inthejurisdiction, elsewhere)
- registration withtheministry oranyother institution
- subscription toaprofessional indemnity insurance
- taking ofanoath
- absence ofanycriminal record
- police inquiry
- minimum age
- other (please specify)
SeeResponses toB1,B4,B6a,B6b, C1OECD Survey.S/WPPS/W/7/Add.10
Page6
Response toB1OECD. Innearly alljurisdictions, U.S.citizenship isnotrequired forlicensing
ofaccountants. Citizenship isrequired forlicensure inthefollowing jurisdictions: Alabama
(temporary licensing isavailable, however); North Carolina (citizenship notrequired ifthe
applicant ’scountry extends toNorth Carolina citizens similar privileges tobecertified); Puerto
RicoandtheVirgin Islands. (Thelatter twoareoutside theterritories subject tocommitments
intheGATS.) Response toB4OECD. Many states require residency and/or anin-state office
inorder toobtain alicense, butmajor states suchasNewYork, Texas, Illinois andFlorida
donot.Response toitemC1OECD. Some states (including NewYork) provide fortemporary
licensing under specified conditions. Response toB6aOECD. Allstates require candidates
forCPA licenses topasstheUniform Certified Public Accountants examination. Butsome
statesallowCanadianCharteredAccountantstoobtainaCPAcertificatebypassingtheChartered
Accountants Qualification Examination (CAQEX) inlieuoftheCPAexamination. Response
toB6bOECD. Foreign education andprofessional experience maybetaken intoaccount for
admission totheUniform CPAexamination. Theextent varies fromstatetostateanddepends
onthecountrywhereeducation/experiencewereacquired.Typically,applicantswillberequired
tocomplete additional course work. Work experience intheUnited States under supervision
ofaCPA mayberequired.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
Thefollowing persons mayqualify foradmission asmembers oftheAmerican Institute of
Certified Public Accountants: those whoareinpossession ofavalid andunrevoked certified
public accountant certificate issued byalegally constituted stateauthority; whoshallhavepassed
anexamination inaccounting andother related subjects satisfactory totheBoard ofDirectors;
who, ifengaged inthepractice ofpublic accounting asaproprietor, partner, orshareholder
orasanemployee whohasbeenlicensed asaCPA formore thantwoyears, arepractising
infirms enrolled inInstitute-approved practice-monitoring programs; those applying for
membership whofirstbecome eligible totaketherequired examination aftertheyear2000
whoshallhaveobtained 150semester hours ofeducation atanaccredited college oruniversity
including abachelor ’sdegree oritsequivalent.
21. Arethere specific licensing requirements forprofessional firms?
- minimum capital
- number ofpartners
- membership ofaprofessional body
- registration withtheministry oranyother institution
- professional indemnity insurance
- withreference tonatural persons carrying outaccountancy activities onbehalf of
thefirm
- withreference tovoting rights
- withreference tomanagement/administration ofthefirm
- other (please specify)
SeeResponses A1,A2,andA5OECD Survey.
Response toA1OECD. Some states only allow accounting firms tooperate assole
proprietorships, partnerships orprofessional corporations (PCs). Themajority ofstates have
passed legislation toincrease theforms ofpractice opentoaccounting firms. Theamount of
liability protection provided byaProfessional Corporation varies fromstatetostate. Response
toA2OECD. Ownership ofaccounting firms islimited topersons licensed asaccountantsS/WPPS/W/7/Add.10
Page7
innearly allstates. Also, some states mayrequire thatonlyaccountants licensed inthat
particular statemayownaninterest inprofessional corporations; astoothertypes ofaccounting
firmsownershipbyaccountantslicensedinotherstatesmaybeallowed.ResponsetoA5OECD.
Norestrictions apply torelationships withinternational firms ornetworks; noronthetransfer
offees,profits androyalties; noroninternational profit-sharing andcost-sharing.
22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? Howlongdoesittaketocomplete thewhole licensing procedure? Please specify
incaseofdifferences between individuals andfirms.
Licensing applications maybefiledbyaperson orafirmatanytime, buttheCPAexamination
isonlyadministered bythestates inNovember andMay. Theamount oftimeforcompletion
ofthelicensing procedure islikely tovaryfrom statetostate.
23. Arethere differences interms oflicensing requirements and/or procedures, according to
theactivities covered bythelicense (audit, insolvency, etc.)? Please specify. What kindof
documentation isnecessary/accepted? Aredocuments issued inother countries acceptable?
Please specify.
Sub-types ofpublic accounting services arenotseparately licensed.
24. What happens when thelicensing conditions arenolonger respected bytheindividual or
thefirm?
StatelicensingboardshaveauthoritytorevokeCPAlicenses.AICPAhasenforcementprocedures
under itsethics codewhich canresult insuspensions ofpractice andrevocation ofmembership.
TheSecuritiesandExchangeCommission(SEC)candisciplineaCPAforimproperprofessional
conduct before theSECthrough suspension ofpractice.
V. RECOGNITION OFQUALIFICATIONS
25. Arethereanypossibilitiesfortakingaccountofqualificationsacquiredbyforeignprofessionals
inanother country? Arethere bilateral agreements withother countries inthisrespect?
SeeResponses toB3,B5andB6bOECD Survey. Alsoseeresponses toQuestions 19and
26.
Response toB3OECD. Inthemajority ofjurisdictions, recognition ofCPAs isbased on
equivalence ofqualifications interms ofeducation, experience andexamination, generally at
thediscretion ofthelicensing board. Anumber ofstates permit temporary practice incidental
toregular practice inanother country. Asmall number ofjurisdictions havenoprovision for
reciprocity ordonotpermit reciprocity. Response toB5OECD. Most states takeintoaccount
foreign qualifications. Response toB6bOECD. Foreign education andprofessional experience
maybetaken intoaccount foradmission totheUniform CPAexamination. Theextent varies
from statetostateanddepends onthecountry where education/experience were acquired.
Typically, applicants willberequired tocomplete additional course work. Work experience
intheUnited States under supervision ofaCPA mayberequired.S/WPPS/W/7/Add.10
Page8
26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheircounterparts inother countries? Ifso,please specify themain
characteristics ofsuchagreements; ifnot,please explain why.
AnagreementonPrinciplesofReciprocitywasreachedinSeptember1991betweentheAmerican
Institute ofCertified Public Accountants, theCanadian Institute ofChartered Accountants,
andtheNational Association ofState Boards ofAccountancy .Theagreement isbased ona
detailed review oftheexamination, education, andexperience requirements thatmustbemet
inorder tobelicensed asacertified public accountant (CPA) intheU.S.andasachartered
accountant (CA) inCanada. Theparticipants, having found thatthedesignations wereofequal
standing, agreed thatsuccessful completion oftheU.S. Uniform CPA Examination and
certification/licensure byastateboard ofaccountancy, orsuccessful completion oftheCanadian
Uniform Final Examination andmembership inaprovincial institute ofchartered accountants,
should betherespective basic requirement forreciprocal recognition oftheCPA andCA
designations. Candidates meeting thatrequirement, whoaretherefore eligible forreciprocity
under theAgreement, should bepermitted toqualify without duplicating allofthesteps in
thelicensing process. Withrespect toprofessional examination, theAgreement recommends
totherespective regulatory authorities intheU.S. andCanada thatCanadian chartered
accountants seeking tousethetitleofCPAintheU.S.andU.S.CPAs seeking tousethetitle
ofCAinCanada, bepermitted toqualify without taking theentire uniform accountancy
examination forthejurisdiction inwhich licensure issought. Rather, theywould bepermitted
totakeanabbreviated examination designed todemonstrate satisfactory knowledge ofnational
andlocallegislation, standards, andpractices forthejurisdiction inwhich licensure issought.
IntheU.S., more than35jurisdictions accept theAgreement ’srecommendations concerning
abbreviated examination requirements.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocalexamination
oralocaltraining exceeding 12months required? Please specify. Isalocallicense always
necessary topractice aregulated accountancy activity? Please specify when thisisnotthe
case.
SeeResponses toQuestions 19and25.
28. Whataretheaccreditation/licensingrequirementsimposedonforeignprofessionalsauthorized
topractice intheirhome country? Maycertain (regulated) activities becarried outonthe
basis ofaforeign license.
SeeResponses toQuestions 19and25.
VI. REGULATIONS GOVERNING THE ESTABLISHMENT OFACOMMERCIAL
PRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
SeeResponse toQuestion 21.AlsoseeResponse toA1OECD Survey.
Response toA1OECD. Some states only allow accounting firms tooperate assole
proprietorships, partnerships orprofessional corporations (PCs). Themajority ofstates have
passed legislation toincrease theforms ofpractice opentoaccounting firms. Theamount of
liability protection provided byaProfessional Corporation varies from statetostate.S/WPPS/W/7/Add.10
Page9
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
SeeResponse toQuestion 21.AlsoseeResponse toA2OECD Survey.
Response toA2OECD. Ownership ofaccounting firms islimited topersons licensed as
accountants innearly allstates. Also, some states mayrequire thatonlyaccountants licensed
inthatparticular statemayownaninterest inprofessional corporations; astoother types of
accounting firms ownership byaccountants licensed inother states maybeallowed.
31. Isthere arequirement ofaminimum number orpercentage oflocal directors, managers
orstaff(please specify)?
SeeResponses toQuestions 29and30.
32. Arethererestrictionsontheabilityoflocallyestablishedfirmstodevelopinternationalrelations
(membership ofaninternational network, association withforeign firms, etc)?Please specify.
SeeResponse toQuestion 21.AlsoseeResponse toA5OECD Survey.
Response toA5OECD. Norestrictions apply torelationships withinternational firms or
networks; noronthetransfer offees,profits androyalties; noroninternational profit-sharing
andcost-sharing.
33. Istheuseofinternational orforeign names restricted forfirms?
SeeResponse toQuestion 3.AlsoseeResponse toA6OECD Survey.
Response toA6OECD. NoU.S. restrictions apply totheuseofinternational firmnames.
Theprovisions oftheU.S.trademark laworinternational conventions towhich theU.S.is
aparty mayapply ininstances where aforeign name isperceived asbeing deceptively similar
toaU.S.trademarked name. Statelicensing lawsalsodefine firmnames, theuseoffictitious
surnames, andtheuseofnames ofdeceased individuals previously named inthefirmtitle.
VII. REGULATIONSGOVERNINGTHEENTRYANDTEMPORARYSTAYOFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentry andstayofprofessionals subject tolabor market testsoranyother restrictions?
Please specify.
SeeResponses toA4andC2OECD Survey.
Response toA4OECD. Nolabour market test(orlabor certification) isrequired for
intracorporate transferees (nonimmigrant visaclassification L-1), regardless ofoccupation or
theposition tobefilled. Noquotas apply tointracorporate transferees. Theintracorporate
transferee performs services asamanager, anexecutive, orinaspecialized knowledge capacity
forabranch ofhis/her same employer abroad oraparent, affiliate orsubsidiary thereof. Also
seeresponses toitems B2andC2.Response toC2OECD. There isnolimitonthenumber
offoreign firms permitted todobusiness intheUnited States. Limitations apply onlytoone
nonimmigrant visacategory (H-1B) forspecialty occupations, which includes professionals
hired foratemporary period byaU.S. firm(65,000 petition approvals inanyfiscal year).S/WPPS/W/7/Add.10
Page10
ALabor Condition Application bytheU.S.employer isrequired. Professionals employed by
foreign firms maybetemporarily admitted asbusiness visitors (visacategory B-1)toperform
services fortheforeign firm. Aliens, including professionals, employed byforeign firms as
managers, executives, orinaspecialized knowledge capacity maybeadmitted temporarily
asintracorporate transferees towork foraU.S.branch, subsidiary affiliate, orparent ofthe
foreign firminamanagerial, executive, orspecialized knowledge capacity. Nolimitapplies
totemporary entrants under these categories. Self-employed professionals maynotenter the
United States towork forthemselves, buttheymaybepermitted temporarily towork fora
U.S. employer under theH-1B orLcategories, orforaforeign employer under theB-1
category. Seealsoresponses toitems A4andB2.
35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
SeeResponse toB2OECD Survey.
Response toB2OECD. Analienwhoseeks temporary entrytoperform professional accounting
services forhis/her foreign employer, whoispaidfrom abroad, andwhowillreturn toan
unrelinquished residence abroad, maybeclassifiable asaB-1visitor forbusiness. Accountants
mayenter asbusiness persons (nonimmigrant visacategory B-1)toengage inactivities such
asnegotiatingcontracts,settingupoffices,andtrainingsalespersonnelfortheforeignemployer.
Analienwhoseeks temporary entry toperform services inanoccupational specialty, including
professional accounting services, foraU.S.employer musthaveaLabor Condition Application
andpetition filedinhis/her behalf bytheU.S.employer (nonimmigrant visacategory H-1B).
Thenumber ofpetition approvals fortheH-1B category islimited to65,000 inanyfiscal year.
Analienprofessional licensed inanother country, wholacks aU.S.license, maybepermitted
toenter theUnited States intheH-1B category towork foraU.S.employer, depending upon
thenature oftheduties, thelevel atwhich theduties areperformed, andthedegree of
supervision received. Foreign professionals whoarelicensed intheUnited States havelittle
ornorestrictions onthetypeofactivities theymayengage inwithin theirlicensed profession.
Foreign professionals whoarenotlicensed intheUnited States, however, maynotengage
inactivities thatrequire alicense andmaynotrepresent themselves aslicensed professionals.
Alsoseeresponses toitems A4andC2.
36. Arethereanyrestrictions onhiring oflocalprofessionals byforeign firms andprofessionals?
Please explain.
SeeResponse toC4OECD Survey.
Response toC4OECD. ForU.S.firms, inorder tobehired, non-U.S. citizens musthave
required documentation issued bytheU.S. Immigration andNaturalization Service. Fora
foreign firmhiring aU.S.citizen, there arenorestrictions.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicense, tobecome member ofaprofessional body, etc.? Please specify.
SeeResponse toQuestion 19.AlsoseeResponse toB1OECD Survey.S/WPPS/W/7/Add.10
Page11
Response toB1OECD. Innearly alljurisdictions, U.S.citizenship isnotrequired forlicensing
ofaccountants, butAlabama, North Carolina andPuerto Ricolimitlicensing toaperson who
isaU.S.citizen “orhasdeclared intent tobecome acitizen. ”
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicense, tobecome member ofaprofessional body, etc.? Please specify
theconditions andthedefinition ofestablishment, residency, etc.when relevant. Isitpossible
tohaveaprofessional establishment inmore thanonecountry?
SeeResponse toQuestion 19.AlsoseeResponses toB4andC1OECD Survey.
Response toB4OECD. Many states require residency and/or anin-state office inorder to
obtain alicense, butmajor states suchasNew York, Texas, Illinois andFlorida donot.
ResponsetoitemC1OECD.Somestates(includingNewYork)providefortemporarylicensing
under specified conditions. Anin-state office mustbemaintained forlicensure in:Arkansas,
Iowa,Kansas,Maine,Michigan,Minnesota,Missouri,Nebraska,NewHampshire,NewMexico,
Ohio, Pennsylvania, Rhode Island, Tennessee, Vermont, WestVirginia andWyoming. In-state
residency isrequired forlicensure inArkansas, District ofColumbia, Idaho, Indiana, Iowa,
Kansas, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New
Hampshire, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island,
Tennessee, andWest Virginia andWyoming. Yes,itispossible tohaveanestablishment in
more thanonecountry.