2011 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.
KY Rev Stat § 325.301 (1996 through Reg Sess) What's This?
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
(4)
(5)
(6)
(7)
(8)
office located in this state, who regularly practice in this Commonwealth,
shall maintain current licenses to practice issued by the board;
(e) 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 (0) 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 (0), 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 () 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 (0)
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)
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(11)
(12)
(13)
Satisfying all the requirements of this subsection, including any requirements
established by the board through promulgation of an administrative regulation;
and
(b) In addition to the renewal fee, paying a late fee not to exceed one hundred
dollars (0).
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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