2014 Kentucky Revised Statutes CHAPTER 325 - PUBLIC ACCOUNTANTS 325.301 Firms required to obtain license to practice in Kentucky -- Firms exempted from licensure requirement -- Criteria for license.
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325.301 Firms required to obtain license to practice in Kentucky -- Firms
exempted from licensure requirement -- Criteria for license.
(1)
(2)
(3)
The following firms shall obtain a license to practice in this state:
(a) Any firm with an office located in this state performing attest services, as
defined in KRS 325.220;
(b) Any firm with an office in this state that uses the title "CPA" or other
phrase or abbreviation in any manner described in KRS 325.410 to
suggest it is a certified public accounting firm; and
(c) Any firm that does not have an office located in this state but performs
any attest service described in KRS 325.220(4)(a), (c), or (d) for a client
with his or her home office in this state or a client who is a resident of this
state.
The following firms shall not be required to obtain a license to practice in this
state and may use the title "CPA" in the name of the firm:
(a) A firm which does not have an office in this state that performs services
described in KRS 325.220(4)(b) for a client having its home office in this
state or a client who is a resident of this state if:
1.
The firm complies with the requirements contained in subsections
(3)(a) and (12) of this section; and
2.
All services provided by the firm are performed by an individual with
a practice privilege granted under KRS 325.282; and
(b) A firm which does not have an office in this state and does not provide
attest services, as defined in KRS 325.220, to a client having his or her
home office located in this state or a client who is a resident of this state
may provide other services that are regulated activities, as defined in KRS
325.220, if:
1.
The services are provided through an individual granted a practice
privilege as described in KRS 325.282; and
2.
The firm can legally provide the services in the state where the
individual with a practice privilege has his or her principal place of
business.
All firms seeking to obtain a license to practice in this Commonwealth shall
meet the following requirements:
(a) Certified public accountants shall hold fifty-one percent (51%) or more of
the ownership of the firm in terms of financial interests and voting rights of
all partners, officers, shareholders, members, or managers of the firm;
(b) All owners of the firm who are not certified public accountants shall be
natural persons actively engaged in the firm's operations and shall satisfy
additional requirements established by the board through promulgation of
an administrative regulation;
(c) The name of the firm shall comply with the requirements of KRS 325.380;
(d) All certified public accountants who are sole proprietors, partners,
shareholders, members, officers, directors, or employees of a firm with an
office located in this state, who regularly practice in this Commonwealth,
shall maintain current licenses to practice issued by the board;
(e)
(4)
(5)
(6)
(7)
(8)
Any individual licensee and any individual qualifying for a practice
privilege under this chapter who is responsible for supervising attest
services and signs or authorizes someone to sign the report on the
financial statements on behalf of the firm shall meet the competency
requirements established by the board through promulgation of an
administrative regulation; and
(f) The firm shall comply with the provisions of this chapter, the
administrative regulations promulgated by the board, and all other laws of
this Commonwealth applicable to the firm's particular form of business
organization.
Before a firm may practice in this Commonwealth, the firm manager shall:
(a) Submit an initial application which contains information required by the
board through promulgation of an administrative regulation; and
(b) Pay a fee not to exceed two hundred dollars ($200) established by an
administrative regulation promulgated by the board.
The firm license shall be renewed every two (2) years by the firm manager:
(a) Completing the renewal process according to the procedures as
established in administrative regulation promulgated by the board; and
(b) Paying the renewal fee, which shall not exceed two hundred dollars
($200), as established by administrative regulation promulgated by the
board.
A firm license due to expire on July 1, 2011, shall:
(a) Be renewed by the firm manager according to the procedures established
by the board through promulgation of an administrative regulation;
(b) Require payment of a fee not to exceed fifty dollars ($50) established by
the board through promulgation of an administrative regulation; and
(c) Expire on August 1, 2012.
A firm license that expires on or after August 1, 2012, shall:
(a) Be renewed by the firm manager prior to August 1, 2012;
(b) Require payment of a fee not to exceed two hundred dollars ($200)
established by the board through promulgation of an administrative
regulation;
(c) Be effective for two (2) years; and
(d) Be renewed by the firm manager on or before August 1 of each two (2)
year period thereafter according to the procedures contained in this
subsection and as established by the board through promulgation of an
administrative regulation.
If a firm license has been expired for a period of less than one (1) month and
the firm has not violated any other provision of this chapter or the
accompanying administrative regulations promulgated thereunder, the firm
manager may renew the license by:
(a) Satisfying all the requirements of this subsection, including any
requirements established by the board through promulgation of an
administrative regulation; and
(b)
(9)
(10)
(11)
(12)
(13)
In addition to the renewal fee, paying a late fee not to exceed one
hundred dollars ($100).
A firm with a license expired for a period of longer than one (1) month after the
date of expiration shall cease operating immediately. The firm shall not operate
until the board approves the issuance of a new license to the firm.
Effective August 1, 2012, sole proprietors shall comply with the licensing
requirements for firms under this section.
The firm manager shall notify the board in accordance with procedures
established in an administrative regulation promulgated by the board, of any
change in its licensing information within thirty (30) days. Any change in the
name of a firm shall require the filing of an initial application.
All firms that perform audits, reviews, or compilations shall enroll in and
complete on a regular basis an approved peer review program with standards
that are equivalent to or better than the peer review program administered by
the American Institute of Certified Public Accountants as determined by
administrative regulations promulgated by the board. Every firm shall comply
with any requirements or restrictions placed on its license as prescribed by the
board in response to the results of peer reviews.
Nothing contained in this chapter shall require a certified public accountant or
firm of certified public accountants licensed by another state to obtain a license
to practice in this Commonwealth if the certified public accountant or firm of
certified public accountants enters this Commonwealth solely to:
(a) Conduct a peer review of a firm; or
(b) Perform attestation work, incidental to an engagement which was initiated
with a client located outside of the Commonwealth and has extended into
the Commonwealth due to common ownership or existence of a
subsidiary, assets, or other operations located within the Commonwealth.
Effective:June 8, 2011
History: Amended 2011 Ky. Acts ch. 31, sec. 2, effective June 8, 2011. -Amended 2008 Ky. Acts ch. 101, sec. 6, effective July 15, 2008. -- Amended
2000 Ky. Acts ch. 99, sec. 7, effective July 14, 2000. -- Amended 1996 Ky. Acts
ch. 24, sec. 2, effective July 15, 1996. -- Created 1994 Ky. Acts ch. 248, sec. 1,
effective July 15, 1994.
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