Arkansas Administrative Code › Agency 019 - State Board of Accountancy › Rule 019.00.09-002 - Amendment to Rules 6, 7, 10, 12, 14

Current through Register Vol. 49, No. 6, June, 2024
Rule
		  6
PRACTICE UNDER SUBSTANTIAL EQUIVALENCY
6.1 Individuals and firms practicing under
		  substantial equivalency
(a) Individuals
		  practicing under substantial equivalency
(1)
		  Pursuant to A.C.A. §
										17-12-311,
		  a CPA who holds a current valid license from a state other than Arkansas whose
		  principal place of business is not in this state may perform certain
		  professional services in this state without registering with the
		  Board.
(2) To qualify for practice
		  under substantial equivalency, the NASBA National Qualification Appraisal
		  Service must have determined that:
a. The
		  education, examination and experience requirements of the state in which the
		  individual holds a valid license are comparable to or exceed the education,
		  examination and experience requirements contained in the UAA; or
b. The CPA holds a valid license issued by a
		  state whose education, examination and experience requirements are not
		  comparable to those contained in the UAA, but the individual CPA's education,
		  examination and experience requirements are comparable to or exceed the
		  education, examination and experience requirements contained in the UAA. If
		  requested by the board, the individual and the firm for which the individual
		  CPA is performing services in this state shall provide a copy of the NASBA
		  National Qualification Appraisal Service verification letter.
(3) An individual who qualifies
		  for practice privileges under substantial equivalency may offer or render
		  professional services in person, by mail, by telephone, or by electronic means
		  without notifying the Board, registering with the Board, or paying a
		  fee.
(4) An individual who
		  qualifies for practice privileges under substantial equivalency may perform the
		  following services for a client with its home office in this state only through
		  a firm that has registered under A.C.A. §
										17-12-401:
a. A financial statement audit or other
		  engagement to be performed in accordance with the "
Statements of
		  Auditing Standards";
b. An
		  examination of prospective financial information to be performed in accordance
		  with "
Statements on Standards for Attestation Engagements";
or
c. An engagement to be
		  performed in accordance with PCAOB Standards.
(5) An individual licensee who performs
		  professional services under substantial equivalency and the firm which employs
		  that individual licensee consent and agree, as a condition of the exercise of
		  this privilege to:
a. The personal and subject
		  matter jurisdiction and disciplinary authority of the Board,
b. Comply with the Arkansas Accountancy Act
		  and Rules of the Board, and
c.
		  Cease offering or rendering professional services in this state individually
		  and on behalf of a firm if the license from the state of the individual's
		  principal place of business is no longer valid, and
d. The appointment of the board issuing the
		  individual's license and the firm's license as the individual's agent upon whom
		  process may be served in an action or proceeding of the Arkansas State Board of
		  Public Accountancy against the licensee.
(6) An individual who passed the Uniform CPA
		  Examination and holds a valid license issued by any other state prior to
		  January 1, 2012 may be exempt from this state's education requirements in
		  A.C.A. §
										17-12-302
		  for purposes of determining substantial equivalency under Rule 6.
(7) An individual who held an Arkansas CPA
		  certificate or license at one time whose Arkansas CPA certificate or license
		  has been revoked or surrendered in connection with a disciplinary investigation
		  or proceeding is prohibited from practicing public accounting or using the
		  title "CPA" in this state whether or not such an individual may otherwise
		  qualify for practice privileges under Rule 6.1.
(8) If a CPA does not qualify under the
		  substantial equivalency standards in A.C.A. §
										17-12-311,
		  the Board may issue a reciprocal certificate or license to the holder of a
		  certificate, license or other authority by another state provided that the CPA
		  qualifies pursuant to A.C.A. §
										17-12-308.