2023 New York Laws › EDN - Education › Title 8 - The Professions › Article 149 - Public Accountancy › 7408 - Special Provisions.

§ 7408. Special provisions. 1. Nothing contained in this article shall
be deemed to prohibit one or more certified public accountants or one or
more  public  accountants,  or  any  combination thereof, from forming a
firm.
2. No firm shall  use  the  words  "certified  public  accountant"  or
"certified  public  accountants"  or  the  letters  "CPA"  or  "CPAs" in
connection with its name unless the sole proprietor of such firm or each
partner of a partnership or limited liability partnership, member  of  a
limited  liability  company  or  shareholder  of  a professional service
corporation engaged within the United States in the practice  of  public
accountancy  is in good standing as a certified public accountant of one
or more of the states of the United States.
3. a. Any firm  that  is  established  for  the  business  purpose  of
lawfully  engaging  in  the  practice  of public accountancy pursuant to
subdivisions one and two of section seventy-four  hundred  one  of  this
article  or  uses the title "CPA" or "CPA firm" or the title "PA" or "PA
firm" must register with the department.  A  firm  of  certified  public
accountants  or  public  accountants  engaged  in the practice of public
accountancy  pursuant  to  subdivision  three  of  section  seventy-four
hundred  one  of this article, but not engaged in the practice of public
accountancy pursuant to subdivisions one and two of section seventy-four
hundred one of this article, may register with the department under this
subdivision. As a condition of registration or renewal, the  firm  shall
affirm  that  it  has  not  violated the provisions of this article, any
other applicable laws and such other requirements as the department  may
impose,  consistent  with  this  article,  except that the provisions of
section seventy-four hundred ten of this  article  shall  not  apply  on
initial registration.
b.  A  registration  shall be issued to a firm upon payment of the fee
prescribed by the commissioner upon application showing that:
(1) At least  one  partner  of  a  partnership  or  limited  liability
partnership,  member  of a limited liability company or shareholder of a
professional service corporation or the sole proprietor is  licensed  or
otherwise  authorized  to  practice  under  this  article and his or her
license to practice is not currently suspended, annulled or  revoked  in
any  jurisdiction  and  he  or  she  is regularly engaged in practice on
behalf of the firm within the state or, in the case of a firm that holds
a license, registration,  or  permit  as  a  firm  of  certified  public
accountants  in another state and is required to register in this state,
an individual with practice privileges under subdivision two of  section
seventy-four hundred six of this article;
(2)  The  firm, other than a sole proprietorship, consists of at least
two present partners, members or shareholders;
(3) The firm, other than a sole proprietorship, contains at  least  as
many  present  partners,  members or shareholders as the total number of
names in the firm name, or, where the  word  "company"  or  abbreviation
"co."  is  used, the number of present partners, members or shareholders
shall be greater than the number of names in the firm name;
(4) Such application includes a list of the location  of  all  offices
within  this state, including the names of the persons in charge of such
offices; and
(5) Such application includes a list of all states in which  the  firm
has applied for or holds registrations, licenses, or permits as a public
accounting firm and a list of any past denial, revocation, or suspension
of  a license, registration or permit by any other state or jurisdiction
within the last three years.
c. In addition to authority granted under any other provision of  law,
the  board  of regents may revoke such registration or take other action

pursuant to a consent order or surrender of registration  in  accordance
with  this  title  and  the  rules  of the board of regents, in the same
manner and to the same extent as is provided with respect to individuals
licensed  pursuant to this article, or pursuant to a settlement in which
the firm neither admits  nor  denies  the  allegations  of  professional
misconduct,  or  after  a  hearing  conducted  in  accordance  with  the
provisions of section sixty-five hundred ten of this title upon proof:
(1) That the registration was obtained by either misrepresentation  or
suppression of any material fact;
(2)  That  the  license  or  authorization  to  practice  of  any sole
proprietor, partner of a partnership or limited  liability  partnership,
member  of  a limited liability company or shareholder of a professional
service  corporation  is  suspended,  annulled   or   revoked   in   any
jurisdiction;
(3)  That  any  sole  proprietor,  partner of a partnership or limited
liability  partnership,  member  of  a  limited  liability  company   or
shareholder of a professional service corporation in such firm is or has
been  engaged in the practice of public accountancy in this state who is
not licensed or otherwise authorized to practice in this state;
(4) That the firm failed to file  the  written  notification  required
pursuant to paragraph e of this subdivision;
(5)  That  the  firm  failed  to  undergo  a peer review of its attest
services pursuant to section seventy-four hundred ten of this article at
least once every three years; or
(6) That the firm has engaged in professional misconduct  pursuant  to
section sixty-five hundred nine of this title.
d.  Personal  service  on  a sole proprietor, any general partner of a
partnership or  limited  liability  partnership,  member  of  a  limited
liability  company  or shareholder of a professional service corporation
licensed in  this  state  of  a  notice  of  a  hearing  to  revoke  the
registration  of,  or  take  other  disciplinary  action  against a firm
registered hereunder shall be deemed service on the firm.
e. A firm registered to practice pursuant to this section  shall  file
with the department annually on or before the anniversary of the date of
the firm's first registration written notification of:
(1) Any admission of a partner, member or shareholder,
(2)  Any  resignation,  termination, retirement or death of a partner,
member or shareholder,
(3) Any termination of a firm,
(4) Any change in the number or location of offices within this  state
and any change in the identity of the persons in charge of such offices,
or
(5)  Any occurrence of any event or events which would eliminate as to
such firm conformity with the applicable requirements of this section.
f. The commissioner shall  establish  in  regulations  a  registration
process  for  certified  public accountancy firms and public accountancy
firms, including the imposition of application and registration fees and
procedures  to  suspend  or  revoke  a  registration   or   take   other
disciplinary action for cause.
g. Firms shall register triennially.
h.  An  individual licensee or individual practicing under subdivision
two of section seventy-four hundred six of this  article  who  signs  or
authorizes  someone  to  sign  the  accountant's report on the financial
statements on behalf of a firm shall meet  the  competency  requirements
set  out  in the professional standards for such services, as recognized
in subdivision  one  of  section  seventy-four  hundred  one-a  of  this
article, and as set out in the rules of the board of regents.
4.  Any person shall be guilty of a class A misdemeanor who shall use,
in connection with the practice of public accountancy, or in any  manner
tending to imply that he or she is an independent accountant or auditor,
the designations "chartered accountant", "certified accountant", "expert
accountant",  "certified  tax  accountant",  "tax accountant", "enrolled
accountant",  "enrolled  public  accountant",  "registered  accountant",
"licensed  accountant",  "incorporated  accountant",  "registered public
accountant", "licensed public accountant", or any abbreviation  thereof,
or  the  letters  "C.A.",  "E.A.",  "C.T.A.",  "T.A.", "E.P.A.", "R.A.",
"L.A.", "I.A.", "P.A.",  "R.P.A.",  or,  "L.P.A.",  except  as  provided
elsewhere  in  this  article,  or any other designation tending to imply
that he or she has expert knowledge in accounting or auditing. The title
"enrolled  agent"  or  the  designation  "E.A."  may  only  be  used  by
individuals so designated by the United States Internal Revenue Service.
5.  An  individual  not  licensed  as a certified public accountant or
public  accountant  or   otherwise   authorized   to   practice   public
accountancy,  or  an  entity not required to register under this section
may prepare a financial statement so long as it is  not  accompanied  by
any  statement,  report,  or  wording  indicating  such  individual is a
certified public accountant or public accountant or that such entity  is
registered  to  practice  public  accountancy  under  this article. Such
non-licensed individuals and non-registered entities shall  include  the
following written language when preparing financial statements:
a.  "(I,  We) have prepared the accompanying financial statement(s) of
(name of business or organization) as of the (time period) and  for  the
(period)  then  ended. This presentation is limited to preparing, in the
form of a financial statement(s), information that is the representation
of (name of business or organization)"; and
b. "(I, We) have not audited or reviewed  the  accompanying  financial
statement(s) and accordingly do not express an opinion or any other form
of assurance on them."