Rule Changes Effective: 7/1/08 |
1. Accounting Concentration
Proposes that effective Jan. 1, 2010, the concentration will become 24 accounting + 24 other business, but with Principles not counting in either section. The “other business” portion could include up to 3 credits of Economics.
2. Fee issues
Proposes a late fee due date of July 31 (vs. June 30). Allows the Board to set fees within a
prescribed ceiling. Clarifies fees for substantial equivalency practice and grade transfers.
Reduces the firm permit fee to $10.
3. Reinstatement Fee
Makes the $100 reinstatement fee applicable for any type of re-activation.
4. Board stipend
The Board stipend is increased to a yearly maximum of $2000.
5. Ethics Code & Peer Review
Proposes to make the full AICPA Code of Ethics applicable to all licensees, and eliminate most all the existing North Dakota regulations.
Extends the AICPA peer review program to firms performing compilations.
| 1 | Changing the “accounting concentration” definition. |
3-01-02-01. Definitions. Unless specifically stated otherwise, the following definitions are applicable throughout this title:
1. “Accountant” means either a certified public accountant (CPA) or a licensed public accountant (LPA), except as provided in section 3-01-02-02.
2. “Accounting concentration” means:
b. After December 31, 1999, twenty-four semester credits or equivalent of accounting education, plus twenty-four credits of other business courses.
c. After December 31, 2004, twenty-four semester credits or equivalent of accounting education (not including principles of accounting or equivalent classes), plus twenty-four credits of other business courses (which could include Principles of Accounting or equivalent courses).
d. After December 31, 2009, twenty-four semester credits or equivalent of accounting courses, plus twenty-four credits of other business courses. Principles of accounting or equivalent courses do not count toward the required accounting or business courses. Up to 3 credits of Economics credits may be included in the “other business” courses.
| 2 | Fee Issues. These changes allow a 30 day penalty-free period, after form due date. Also adds to “ceiling” approach to fee setting, allowing the Board flexibility to adjust fees within a limited range. The filing and fee obligations of those operating under substantial equivalency are clarified. Substantial equivalency forms and fees can be eliminated when the statute fee requirement is removed. The firm permit fee is reduced to $10. The grade transfer fee is made clearly relevant to all, not just residents. |
3-02-02-04. Certificate and license annual renewal fees. The annual renewal fee for every CPA and LPA shall be set by the board but not to exceed one hundred dollars. A CPA or LPA who fails to register or pay the renewal fee by July thirty-first of the board’s current fiscal year shall pay a late filing fee of fifty dollars in addition to the regular annual fee. Individuals registered working within the state under the substantial equivalency provisions are required to file an annual renewal form and pay an the annual renewal fee of forty-five dollars , plus the late filing fee if applicable.
History: Amended effective August 1, 1981; October 1, 1982; July 1, 1987; June 1, 1988; July 1, 1991; March 1, 1995; September 1, 1997; October 1, 1999; December 1, 2000; December 1, 2003 ; .
General Authority: NDCC 43-02.2-03
Law Implemented: NDCC 43-02.2-03, 43-02.2-04, 43-02.2-07
3-03-03-01. Coverage of requirement. The continuing education requirements promulgated by the board will apply to all CPAs and LPAs except those on retired status. In order to enter public practice either full time or part time in North Dakota, an accountant must meet the continuing education requirements as specified in section 3-03-01-01 and furnish evidence of familiarity with current procedures and practices in the service areas they intend to practice.
A late filing fee of fifty dollars will be imposed on any CPA or LPA whose continuing education reports are not
receivedsubmitted to the board by the date indicated on the reporting form.
History: Amended effective July 1, 1991; March 1, 1995; October 1, 1999; December 1, 2000; December 1, 2003 ; .
General Authority: NDCC 43-02.2-03
Law Implemented: NDCC 43-02.2-03, 43-02.2-04
3-02-02-04.1 Fee for annual firm permit. The annual fee for a firm permit is ten fifty dollars for firms with one or two licensees, one hundred dollars for firms with three to fifteen licensees, two hundred dollars for firms with sixteen to forty-nine licensees, and three hundred dollars for firms with fifty or more licensees . For firms which provide no audit, review, compilation, or examination of prospective financial information services, the fee is ten dollars. A late filing fee of fifty dollars shall also be paid by a firm that fails to register or pay the annual firm permit fee by July thirty-first of the board’s current fiscal year. A firm shall register and pay a firm permit fee before commencing any activity that requires such a permit. Failure to register and pay the appropriate firm permit fees may result in the board proceeding to revoke, suspend, or refuse to renew the certificates and licenses of each of the firm's partners, officers, directors, shareholders, or owners.
History: Effective June 1, 1988; amended effective March 1, 1995; September 1, 1997; October 1, 1999; December 1, 2000; December 1, 2003.
General Authority: NDCC 43-02.2-03
Law Implemented: NDCC 43-02.2-03, 43-02.2-06, 43-02.2-07
3-02-02-02. Fee for certificate without examination. The fee for the issuance of a certificate when
the board has waived the examination shall be one hundred forty dollars. The fee for a
resident to transfer examination grades shall be one hundred forty dollars. Individuals
intending to enter the state under the substantial equivalency provisions of North Dakota shall register and pay a registration fee of one
Century Code section 43-02.2-04.1
hundred forty dollars prior to commencing work in this state.
History: Amended effective March 1, 1995; September 1, 1997; July 1, 1999; September 1, 2001.
General Authority: NDCC 43-02.2-03
Law Implemented: NDCC 43-02.2-04
| 3 | Reinstatement Fee Enacts a $100 fee to re-activate any certificate. |
3-02-02-08 Reinstatement fee. A CPA, LPA, or permitholder whose certificate, license, or permit is suspended , relinquished, not renewed, or revoked, is required to pay a reinstatement fee of one hundred dollars in addition to the annual fee, as provided in sections 3-02-02-4 and 3-02-02-04.1, and must also satisfy the board that all current requirements to hold a certificate or license or permit in good standing have been met. Application for reinstatement shall be in writing, showing good cause for the reinstatement; such application may be submitted at any time and will be considered at the board’s next regular meeting. If the board rules against the applicant, the applicant shall have the right to request a hearing on the application, and such hearing will be held within ninety days from receipt of such request at a time and location set by the board.
A CPA or LPA who voluntarily relinquishes the certificate or license may be subsequently reinstated upon payment of the current annual registration fee and satisfying the board that all current requirements to hold a certificate or license in good standing have been met.
History: Effective June 1, 1988; amended effective July 1, 1991; March 1, 1995.
General Authority: NDCC 43-02.2-03
Law Implemented: NDCC 43-02.2-03, 43-02.2-11
| 4 | Increasing the annual board stipend These changes increase the annual board stipend. The editing also eliminates reference to exam administration; any such future activity of the board can be covered by the daily stipend rate. |
3-01-01-01. Organization of the state board of accountancy.5. Compensation of board members. Each member of the state board of accountancy shall receive compensation of three hundred dollars for each day, or portion thereof, spent in official business of the board, not to exceed
twelve hundredtwo thousand dollars per fiscal year.In addition, each member shall receive sixty-two dollars and fifty cents for each day or portion thereof spent at the exam site in the role of overseeing the administration of the uniform certified public accountant examination.
History: Amended effective August 1, 1981; September 1, 1983; October 1, 1983; July 1, 1991; March 1, 1995.
General Authority: NDCC 28-32-02.1, 43-02.2-03
Law Implemented: NDCC 28-32-02.1, 43-02.2-03
| 5 | Ethics Code and Peer Review These changes enact the AICPA ethics code for all licensees, and eliminate existing North Dakota ethics regulations (Article 3-04), except the current firm ownership rule which is being relocated into a new section 3-01-03-02. A new Section 3-01-03-01 requires adherence to the AICPA code. The following changes also enact the AICPA practice review program for all accounting firms providing audit, review, or compilation services. A new Section 3-01-03-03 is created to convey related regulations. The Positive Review Program (Article 3-05) is repealed. |
Article
3-01 General Administration
3-02 Examination, Fees, and Experience
3-03 Continuing Education
3-04 Code of Ethics [Repealed]
3-05 Positive Review Program [Repealed]
Article 3-01 General Administration
Chapter
3-01-01 Organization of the Board
3-01-02 Definitions
3-01-03 Ethics, Firm Ownership, and Firm Review
Chapter 3-01-03
Ethics, Firm Ownership, and Firm Review
Section
3-01-03-01 Code of Ethics
3-01-03-02 Firm Ownership
3-01-03-03 Firm Review
3-01-03-01. Code of Ethics. Licenees must observe the Code of Professional Conduct of the American Institute of Certified Public Accountants, with references to “member” being understood to apply to licensees. Licensees must also observe the codes of conduct of the General Accounting Office, the Securities and Exchange Administration, and any other bodies, whenever they are relevant and applicable based on services performed by the licensee.
History: Effective
Law Implemented: NDCC 43-02.2-03
3-01-03-02. Firm ownership. A minority of the ownership of a firm practicing public accountancy within this state may be held by individuals who are not CPAs or LPAs, but each such owner:
2. Must not serve as the principal executive officer of the firm;
3. Must not exercise authority over the performance of audit, review, compilation, or other attest services; and
4. Must not aid in the unauthorized practice of public accounting, or knowingly misrepresent facts, or commit any act discreditable to the accounting profession.
When any such owner fails to meet one of these conditions, or is convicted of a felony or other crime involving fraud or dishonesty, or is disciplined by a regulatory agency, that person’s ownership in the firm must be fully divested within six months thereafter, unless the board shall determine otherwise.
History: Effective October 1, 1982; amended effective March 1, 1995; September 1, 1997; October 1, 1999 [ also insert {month} {day} , 2007] .
General Authority: NDCC 43-02.2-04
Law Implemented: NDCC 43-02.2-03
3-01-03-03. Firm Review. When directed by the Board, a firm which performs audit, review, or compilation services, is required to undergo a practice review conforming to the standards of the AICPA peer review program, or a program deemed comparable by the board. The board will not require such review more frequently than every three years, except in the case of quality concerns or the lack of timely review progress. A copy of the review report and letter of acceptance, plus any letters of comment and response issued, are to be submitted to the board when directed. When the review process reveals substantive quality concerns, the board may take various actions against the firm, such as requiring specific continuing education, preissuance report review, accelerated practice review, practice restrictions, and other measures.
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Article 3-04 [Code of Ethics] is to be deleted, in its entirety.
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Article 3-05 [Positive Review Program] is to be deleted, in its entirety.
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