2019 Connecticut General Statutes
Title 20 - Professional and Occupational Licensing, Certification, Title Protection and Registration. Examining Boards
Chapter 389 - Public Accountants
Section 20-281 - Permit to practice. Quality review.
(a) No firm shall practice public accountancy in this state unless such firm: (1) Has obtained a permit to practice, or (2) is exempt from the permit requirement contained in section 20-281e.
(b) The State Board of Accountancy shall require, by regulation, that on and after January 1, 1990, as a condition to renewal of a permit to practice issued under section 20-281e that permit holders undergo a quality review, conducted in such manner as the board may by regulation specify, to determine and report on the degree of compliance by the permit holder with generally accepted accounting principals, generally accepted auditing standards and other similarly recognized authoritative technical standards. Such a review shall be required every three years, except as provided in subsection (c) of this section. Any such regulations shall provide that an applicant may comply with such regulations by furnishing sufficient evidence to the board that a similar quality review has been completed for other purposes. Each such review shall be performed by a reviewer having such qualifications as shall be set forth by regulation. Each reviewer shall be independent of the firm being reviewed. The firm which is the subject of the review shall furnish a copy of the opinion letter accompanying the report of the review performed by the reviewer to the board within thirty days of the acceptance of the final report by a qualified oversight body as determined by the board. Such letter shall not be a public record unless it is made part of the record of a disciplinary hearing. If the review report is designated “modified”, the board may require the firm which is the subject of the review to submit an affidavit, within such time as the board may specify, indicating that the remedial action suggested by the reviewer has been completed. Payment for any review shall be the responsibility of the firm which is the subject of the review.
(c) A permit holder may be granted a waiver from the quality review requirements under subsection (b) of this section: (1) If it annually represents to the board that: (A) It does not engage in financial reporting or attest areas of practice, including audits, compilations and reviews, (B) it does not intend to engage in such a practice during the following year, and (C) it will immediately notify the board if it engages in such practice; (2) for reasons of health; (3) due to military service; (4) in instances of individual hardship; or (5) for other good cause as the board may determine. Any such requests for waivers and any such representations shall be made in writing, under oath, and upon forms provided by the board. Such requests and representations shall be made at the time the firm applies for renewal of its firm permit. Any firm which has been granted a waiver pursuant to subdivision (1) of this subsection shall immediately notify the board if it engages in the financial reporting or attest areas of practice and shall undergo a quality review during the first calendar year after its initial acceptance of such an engagement.
(1955, S. 2294d; P.A. 78-255, S. 3, 10; P.A. 81-203, S. 2; P.A. 82-417, S. 1, 3; P.A. 83-22, S. 2, 3; 83-487, S. 11, 33; P.A. 89-96; 89-251, S. 113, 203; P.A. 90-170, S. 1, 3; P.A. 92-212, S. 6; P.A. 08-52, S. 2; P.A. 15-181, S. 2.)
History: P.A. 78-255 combined provisions setting forth conditions for practice as certified public accountant or public accountant, specified that certificates are granted by the board and substituted “chapter 389” for “section 2297d of the 1955 supplement to the general statutes or section 20-283”; P.A. 81-203 deleted this section's prohibition against practicing as a certified public accountant without a valid certificate and annual registration card; P.A. 82-417 required each firm practicing public accountancy to obtain a permit to practice and set forth the application requirements in new Subsecs. (b) to (g); P.A. 83-22 amended Subsec. (e) by eliminating from the provisions of this section those partners, officers and shareholders who reside in this state without personally practicing public accounting in this state and amended Subsec. (g) by eliminating the requirement that public accountancy firms notify the board of any change of partners, officers or shareholders who reside in this state without working in this state; P.A. 83-487 changed term “annual registration card” to “license” and specified requirements for practice by accountants; P.A. 89-96 added Subsecs. (h) and (i) requiring quality review as a condition to renewal of a permit to practice and standards for waivers; P.A. 89-251 increased the application fee from $25 to $75 for individuals and to $125 for firms; P.A. 90-170 amended Subsec. (c) by deleting the reference to individuals in relation to the fee of $75 and in addition, deleted the fee of $125 for applications submitted by firms, thus establishing a fee of $75 for both individuals and firms; P.A. 92-212 deleted former Subsec. (a) requiring certificate or license to practice, relettering Subsec. (b) as (a) and deleting definition of “firm”, and deleted former Subsecs. (c) to (g), inclusive, which had detailed application procedure and requirements, relettering former Subsecs. (h) and (i) accordingly and making technical changes to conform language with other portions of the act; P.A. 08-52 amended Subsec. (a) by designating existing provision re permit to practice as Subdiv. (1) and adding Subdiv. (2) re Sec. 20-281e exemption, effective May 12, 2008; P.A. 15-181 amended Subsec. (c) by adding references to attest areas of practice.
