CHAPTER Ac 100  ORGANIZATIONAL RULES

 

PART Ac 101  PURPOSE AND SCOPE

 

          Ac 101.01  Purpose and Scope.

 

          (a)  The rules of this title implement the statutory responsibilities of the New Hampshire board of accountancy created by RSA 309-B:2.

 

          (b)  These provisions regulate to but are not limited to the licensing of certified public accountants and public accountants and the practice of accountancy in the state of New Hampshire.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-l3-83; ss by 3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12

 

PART Ac 102  DEFINITIONS

 

         Ac 102.01  Attest” means “attest” as defined in RSA 309-B:3 I, namely, “providing the following services:

 

         (a)  Any audit or other engagement to be performed in accordance with the “American Institute of Certified Public Accountants’ Statements on Auditing Standards” (SAS);

 

         (b)  Any review of a financial statement to be performed in accordance with the “American Institute of Certified Public Accountants’ Statements on Standards for Accounting and Review Services (SSARS)”;

 

         (c)  Any examination of prospective financial statements to be performed in accordance with the “American Institute of Certified Public Accountants’ Statements on Standards for Attestation Engagements (SSAE)”;

 

         (d)  Any engagement to be performed in accordance with the “Public Company Accounting Oversight Board’s Auditing Standards”; and

 

         (e)  Any examination, review, or agreed upon procedures engagement to be performed in accordance with the “Statements on Standards for Attestation Engagements” (SSAE), other than the examination described in subparagraph (c) above.

 

Source.  #13995, eff 8-9-24

 

         Ac 102.02  "Board" means “board” as defined in RSA 309-B:3 II, namely, “the New Hampshire board of accountancy established under RSA 309-B:4.”

 

Source.  #1663, eff 12-17-80; amd by #1972, eff 2-28-82; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12; ss by #13995, eff 8-9-24

 

Ac 102.03  Certified Public Accountant (CPA)”  means a person holding a current certificate issued under RSA 309-B:5, or a person holding an equivalent accounting license issued in any jurisdiction in the United States.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 101.01)

 

          Ac 102.04  Chartered Accountant  means a person holding an accounting license issued in Australia, Canada, or Ireland that is at a level equivalent to a CPA in the United States.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 101.03)

 

          Ac 102.05  Client” means a person, persons or entity which retains a practicing accountant or the firm of a practicing accountant, which firm is engaged in the practice of public accountancy, for the performance of professional accounting services.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 101.04)

 

         Ac 102.06  Code of Professional Conduct” means the “Code of Professional Conduct” of the American Institute of Certified Public Accountants (AICPA), December 15, 2014 edition, including the interpretations.

 

Source.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 101.05; ss by #13995, eff 8-9-24 (formerly Ac 102.05)

 

          Ac 102.07  Contadores Publicos Certificado  means a person holding a current accounting license issued in Mexico that is at a level equivalent to a CPA in the United States.

 

Source.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 101.06); renumbered by #13995 (formerly Ac 102.06)

 

          Ac 102.08  CPA firm” means “CPA firm” as defined by RSA 309-B:3, IV, namely, “a sole proprietorship, a corporation, a partnership including a limited liability partnership, a limited liability company including a professional limited liability company, or any other legally authorized association issued a license under RSA 309-B:8.”

Source.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 101.07); renumbered by #13995 (formerly Ac 102.07)

 

          Ac 102.09  Financial Statement” means a document and related footnotes that purports to represent actual or prospective financial positions at a particular time, or results of operations, cash flow, or changes in financial position for a period of time, in conformity with generally accepted accounting principles or another comprehensive basis of accounting.

 

Source.  #10053, eff 1-1-12 from Ac 101.08); renumbered by #13995 (formerly Ac 102.08)

 

          Ac 102.10  Firm” means any business entity, however configured or organized, engaged in the practice of public accountancy.  The term includes individuals and shareholders in any legally authorized entity engaged in the practice of public accountancy.

 

Source.  #10053, eff 1-1-12 (from Ac 101.09); renumbered by #13995 (formerly Ac 102.09)

 

          Ac 102.11  License” means “license” as defined by RSA 309-B:3, VIII, namely, “certificate issued under RSA 309-B:5, a permit issued under RSA 309-B:8 or a registration under RSA 309-B:9; or in each case, a certificate or permit issued under corresponding provisions of prior law.”

 

Source.  #10053 (eff 1-1-12) (from Ac 101.10); renumbered by #13995 (formerly Ac 102.10)

 

          Ac 102.12  Licensee” means “licensee” as defined by RSA 309-B:3, IX, namely, “the holder of a license as defined in RSA 309-B:3, VIII” and includes each CPA and PA.

 

Source.  #10053, eff 1-1-12  (from Ac 101.11); renumbered by #13995 (formerly Ac 102.11)

 

          Ac 102.13  Permit” means “permit” as defined in RSA 309-B:3, XIII, namely, “a permit to practice as a CPA firm issued under RSA 309-B:8 or corresponding provisions of prior law, or under corresponding provisions of the laws of other states.”

 

Source.  #10053,eff 1-1-12 (from Ac 101.12); renumbered by #13995 (formerly Ac 102.12)

 

          Ac 102.14  Public Accountancy” means the provision of any service, the undertaking of any function, or the exercise of any privilege for which a certificate, registration, or permit is required pursuant to RSA 309-B.

 

Source.  #10053, eff 1-1-12 (from Ac 101.13); renumbered by #13995 (formerly Ac 102.13)

 

          Ac 102.15  Public Accountant (PA)” means a licensee whose registration has been issued pursuant to RSA 309-B:9.

 

Source.  #10053, eff 1-1-12 (from Ac 101.14); renumbered by #13995 (formerly Ac 102.14)

 

          Ac 102.16  Public Accounting Experience” means the performance of one or more kinds of services regulated under RSA 309-B and these rules and performed under the supervision of a CPA, Chartered Accountant, Contadores Publicos Certificado, PA or  in an entity that holds itself out to the public as a firm as defined in Ac 101.07.

 

Source.  #10053, (eff 1-1-12 (from Ac 101.15); renumbered by #13995 (formerly Ac 102.15)

 

          Ac 102.17  Public Accounting Firm (PA Firm)” means a business entity in which at least a simple  majority of the ownership of the firm, in terms of financial interests and voting rights, holds a registration issued under RSA 309-B:9, and is organized as:

 

          (a)  A sole proprietor;

 

          (b)  A corporation;

 

          (c)  A partnership, including a limited liability partnership;

 

          (d)  A limited liability company, including a professional limited liability company; or

 

          (e)  Any other kind of entity authorized or allowed by law.

 

Source.  #1005, eff 1-1-12 (from Ac 101.16); renumbered by #13995 (formerly Ac 102.16)

 

          Ac 102.18  Semester Hour” means the number of hours which a class meets during a single semester, expressed on a per-credit basis, as calculated by the institution offering the course.

 

Source.  #10053, eff 1-1-12 (from Ac 101.17); renumbered by #13995 (formerly Ac 102.17)

 

PART Ac 103  BOARD ORGANIZATION

 

          Ac 103.01  Members and Officers.  Pursuant to RSA 309-B:4, I(a) the board is composed of a total of 7 members who are residents of New Hampshire and have been appointed by the governor with the approval of the council.  The membership includes 5 current CPAs, and 2 public members, all of whom meet the requirements of RSA 309-B:4, I(a).

 

Source.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 102.01); ss by #10700, eff 11-1-14

 

          Ac 103.02  Organization.  Every year, the board shall elect or appoint a chairperson, vice-chairperson, and secretary at the first meeting of the board in a calendar year.

 

Source.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12

 

          Ac 103.03  Meeting Location.  Board meetings are held at the place specified in the notice for the particular meeting.

 

Source.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 102.04)

 

          Ac 103.04  Presiding Officer.  The board chairperson presides at board meetings.  In the absence of the chairperson, the board vice-chairperson presides at meetings.  In the absence of both the chairperson and the vice-chairperson, the members present select, by consensus, any other member to act as chairperson for that meeting.

 

Source.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 102.05)

 

         Ac 103.05  Functions of the Board.  The duties of the board include:

 

         (a)  Adopting rules relative to:

 

(1)  Peer reviews;

 

(2)  Disciplinary matters;

 

(3)  Qualifications of applicants;

 

(4)  Ethical and professional standards;

 

(5)  Presiding over hearings; and

 

(6)  Any other matters necessary for the proper administration of RSA 309-B;

 

         (b)  The adjudication of complaints against licensees; and

 

         (c)  All other functions set forth in RSA 309-B.

 

Source.  #6901, eff 12-4-98; ss by #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9032, eff 11-21-07; ss by #10053, eff 1-1-12 (from Ac 102.07); ss by #13995, eff 8-9-24

 

         Ac 103.06  Office Hours, Office Location, Mailing Address and Telephone.

 

         (a)  The board’s office is located at the office of professional licensure and certification (OPLC), 7 Eagle Square, Concord, N.H. and shall be open to the public weekdays, excluding holidays, from 8:00 a.m. to 4:00 p.m.

 

         (b)  Correspondence shall be addressed to the board of accountancy at:

 

Board of Accountancy

c/o Office of Professional Licensure

7 Eagle Square

Concord, NH  03301

 

         (c)  The board’s telephone number shall be (603)-271-2152.

 

Source.  #10053, eff 1-1-12; ss by #13995, eff 8-9-24

 

PART Ac 104  PUBLIC ACCESS TO INFORMATION

 

          Ac 104.01  Public Access.  In accordance with RSA 91-A, any person may examine all public, non-exempt governmental records in the possession of the board, at the offices of the board, between 8:00 a.m. and 4:00 p.m., Monday through Friday.

 

Source.  #10053, eff 1-1-12 (from Ac 103.01)

 

          Ac 104.02  Licensee Access to Information.  Any licensee may examine all records of the board with respect to him or herself, except as exempted by law, at the office of the board, between the hours of 8:00 a.m. and 4 p.m. Monday through Friday.

 

Source.  #10053, eff 1-1-12 (from Ac 103.02)

 

          Ac 104.03  Record of Board Actions.  Minutes shall be kept of board meetings and of official actions taken by the board. Minutes of board actions which are not confidential under RSA 91-A:3, II or RSA 91-A:5 shall be available for inspection during the board’s ordinary office hours within 5 days from the close the meeting or vote in questions unless the 72 hours availability requirement of RSA 91-A:3, III is applicable.

 

Source.  #10053, eff 1-1-12

 

         Ac 104.04  Requests for Information and Access to Records.  Requests for information and access to board records shall be requested and processed in accordance with Plc 103.

 

Source.  #10053, eff 1-1-12 (from Ac 103.03); ss by #13995, eff 8-9-24

 

          Ac 104.05  Unavailability of Public Records.  If the board is unable to make a governmental public record available for immediate inspection and photocopying, then it shall, within 5 business days of request:

 

          (a)  Make such record available;

 

          (b)  Deny the request in writing with reasons; or

 

          (c)  Furnish written acknowledgment of receipt of the request and a statement of the time reasonably necessary to determine whether the request will be granted or denied.

 

Source.  #10053, eff 1-1-12 (from Ac 103.04)

 

PART Ac 105  MEETINGS, DELIBERATIONS AND DECISIONS

 

         Ac 105.01  Meetings.  Regular meetings shall be held at least 6 times per year, provided that there is board business to be conducted.  Special meetings shall be called by order of the chairperson or secretary.  Each member of the board shall be provided notice of each meeting and such notice shall contain the place, date, time, and subject of the meeting.  Notice of meetings shall be posted in accordance with RSA 91-A:2.

 

Source.  #10053, eff 1-1-12; ss by #13995, eff -8-9-24

 

          Ac 105.02  Quorum.  A quorum of the board consists of a majority of the board members then in office, pursuant to RSA 309-B:4, II(b).  A vote of the majority of those voting, is necessary for board action on anything requiring a vote of the board.

 

Source.  #10053, eff 1-1-12

 

          Ac 105.03  Tentative Decisions.

 

          (a)  When necessary to conduct the board’s business in a timely and efficient manner, the board shall instruct its staff or a committee of the board to prepare a draft document, subject to subsequent review and approval by the board. Such instructions shall be known as tentative decisions.

 

          (b)  Tentative decisions shall not be final actions, and shall not be binding upon the board. Changes in the form or the substance of a tentative decision shall be made as often as necessary to produce a final document, which satisfactorily sets forth the final result the board intends to reach. The board’s final decision shall be issued only when the necessary majority has voted in favor of the final form of the proposed action, allowing time for printing or servicing the document in question.

 

Source.  #10053, eff 1-1-12; renumbered by #13995 (formerly Ac 105.05)

 

PART Ac 106  APPOINTMENT OF COMMITTEES

 

          Ac 106.01  Committees.

 

          (a)  A committee shall consist of one or more of board members who have been directed by the board to investigate and make recommendations on matters which could be handled by the full board.

 

          (b)  When expressly authorized by the board, the authority of a committee shall include:

 

(1)  The retention of voluntary assistance from qualified non-board members; and

 

(2)  The retention of paid advisors or consultants pursuant to RSA 332:G:3.

 

Source.  #10053, eff 1-1-12

 

CHAPTER Ac 200  RULES OF PRACTICE AND PROCEDURE

 

REVISION NOTE #1:

 

          Document #9033, effective 11-20-07 and #9051, effective 12-27-07, made extensive changes to the wording, format, structure, and numbering of rules in Chapter Ac 200.  Documents #9033 and #9051 superseded all prior filings for the sections in this chapter.  The prior filings for former Chapter Ac 200 included the following documents:

 

          #1663, eff 12-17-80

          #2475, eff 9-13-83

          #3061, eff 7-18-85, EXPIRED 7-18-91

          #5365, eff 3-27-92

          #6721, INTERIM, eff 3-27-98, EXPIRED 7-25-98

          #6902, eff 12-4-98, EXPIRED: 12-4-07

          #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

          The rules in Document #9033, which included Ac 201-Ac 203, Ac 205-Ac 211, Ac 213, Ac 214.01-Ac 214.03 and Ac 215 governing practice and procedure, would not expire except pursuant to RSA 541-A:17, II.

 

The rules in Document #9051, which included Ac 204, Ac 212, Ac 214.04, and Ac 214.05 and Ac 300 through Ac 500 governing procedural rules (8-year provisions); certification, registration and permit requirements; continued status; and ethics, would have expired  in 8 years from the effective date of December 27, 2007 unless they were  amended, repealed or superseded before that.  Ac 204, Ac 214.04, and Ac 214.05 were subsequently superseded by Document #10701-A, effective 11-1-14, before they would have expired, as indicated in Revision Note #2.

 

REVISION NOTE #2:

 

            Document #13996, effective 8-9-24, repealed Part Ac 201 through Part Ac 215 in Chapter Ac 200, titled “Practice and Procedure”, and renamed the chapter as “Rules of Practice and Procedure”.  Document #13996 also adopted a new Part Ac 201 titled “Applicability and Waiver of Substantive Rules”, containing Ac 201.01 titled “Rules of Practice and Procedure” and Ac 201.02 titled “Waiver of Administrative Rules.” 

 

Document #13996 replaces all prior filings affecting the rules in the former Chapter Ac 200.  The prior filings since Document #9051, effective 12-27-07, included the following documents.  Italics indicate the rules were subject to expiration only pursuant to RSA 541-A:17, II:

 

          #10701-A, eff 11-1-14 (Ac 204, Ac 214.04, and Ac 214.05 only)

          #10701-B, eff 11-1-14 (Ac 212 only)

 

As practice and procedure rules, the rules in Document #13996 will not expire except pursuant to RSA 541-A:17, II.

 

PART Ac 201  APPLICABILITY AND WAIVER OF SUBSTANTIVE RULES

 

         Ac 201.01  Applicability of Plc 200.  The Plc 200 rules shall govern the board of accountancy with regard to all procedures for:

 

         (a)  Adjudicatory proceedings;

 

         (b)  Rulemaking submissions, considerations, and disposition of rulemaking petitions;

 

         (c)  Public comment hearings;

 

         (d)  Declaratory rulings;

 

         (e)  All statements of policy and interpretation;

 

         (f)  Explanation of adopted rules; and

 

         (g)  Voluntary surrender of licenses.

 

Source.  (See Revision Note #1 and Revision Note #2 at chapter heading for Ac 200) #13996, eff 8-9-24

 

         Ac 201.02  Waiver of Administrative Rules.

 

         (a)  The board shall initiate a waiver of a substantive rule upon its own motion by providing affected parties with notice and opportunity to be heard, and issuing an order which finds that waiver would be necessary to advance the purpose of the rules of the board.

 

         (b)  Individuals who wish to request a waiver of a rule shall submit a written request to the board, which includes:

 

(1)  The rule for which a waiver is requested;

 

(2)  The anticipated length of time the requested waiver will be needed;

 

(3)  The reason for requesting the waiver;

 

(4)  Evidence of how the waiver will provide for the health and safety of the consumer or licensee;

 

(5)  A time-limited written compliance plan which sets forth plans to achieve compliance including an estimated date of compliance; and

 

(6)  The signature of the applicant.

 

         (c)  The board shall consider the following when determining whether to approve or deny a waiver:

 

(1)  If adherence to the rule would cause the petitioner unnecessary or undue hardship;

 

(2)  If the requested waiver is necessary because of any neglect or misfeasance on the part of the practitioner;

 

(3)  If enforcement of the rule would injure a third person(s); and

 

(4)  If waiver of the rule would injure a third person(s).

 

         (d)  The board shall approve a waiver of an administrative rule request only if:

 

(1)  Granting a waiver does not have the effect of waiving or modifying a provision of RSA 309-B:1 through RSA 309-B:21;

 

(2)  The petitioner has shown good cause exists, as described in (c) above, to waive the rule; and

 

(3)  The board determines that the individual’s plans for compliance with the rule includes an estimated date of compliance and eventual compliance.

 

         (e)  If the board, after receiving and reviewing a request for a waiver, requires further information or documentation to grant or deny the waiver, the board shall:

 

(1)  Notify the applicant in writing within 30 days; and

 

(2)  Specify the information or documentation the board requires.

 

         (f)  The board shall issue a written approval or denial of the waiver within 60 days of the date the request is received, unless additional information or documentation is required.  If additional information and documentation is required, then the board shall issue a written approval or denial within 60 days of receiving the requested information or documentation.

 

Source.  (See Revision Note #1 and Revision Note #2 at chapter heading for Ac 200) #13996, eff 8-9-24

 

CHAPTER Ac 300  CERTIFICATION, REGISTRATION, AND PERMIT REQUIREMENTS

 

REVISION NOTE:

 

          Document #14399, effective 12-5-25, adopted, readopted with amendment, or repealed all of the rules in Chapter Ac 300 titled “Certification, Registration, and Permit Requirements.”  These actions necessitated extensive renumbering of the remaining, existing rules as indicated in the source notes.  Document #14399 replaces all prior filings affecting the former rules in Chapter Ac 300.

 

          The repealed rules are indicated below, with their former part and section numbers. 

 

          PART Ac 301  APPLICATION PROCEDURE: Ac 301.04 titled “Application for Initial Certification as CPA Form”, Ac 301.06 titled “Character Reference Form”, Ac 301.07 titled “Public Accounting Experience Verification Form”, Ac 301.08 titled  “Governmental Accounting Experience Verification Form”, Ac 301.09 titled “Authorization for Interstate Exchange of Information Form”, Ac 301.13 titled “Fees”, and  Ac 301.14 titled “License Issuance and Expiration”.

 

          PART Ac 302  QUALIFICATIONS: Ac 302.05 titled “Character”, and Ac 302.06 titled “CPA Certificate Applicant Personal Appearance”.

 

          PART Ac 303  EXAMINATION: Ac 303.01 titled “Scope”, Ac 303.03 titled “CPA Examination Subjects”, Ac 303.04 titled “Conduct During CPA Examination”, Ac 303.05 titled “International Qualifications Examination (IQEX) Required”, Ac 303.06 titled “IQEX Subjects”, and Ac 303.07 titled “Conduct During IQEX”.

         

          PART Ac 304  RECIPROCITY: Ac 304.02 titled “Domestic Substantial Equivalency”, Ac 304.03 titled “Domestic Reciprocity CPA Certificate Applicant Education”, Ac 304.04 titled “Domestic Reciprocity CPA Applicant Accounting Experience”, Ac 304.05 titled “International Reciprocity”, Ac 304.06 titled “Character”, and Ac 304.07  “CPA Applicant Personal Appearance”.

 

PART Ac 305  CREDENTIALS: Ac 305.01 titled “License” and Ac 305.02 titled “Pocket Cards”

 

The prior filings for all of Ac 300 include the following documents:

 

#1663, eff 12-17-80

#1972, eff 2-28-82

#2475, eff 9-13-83

#3061, eff 7-18-85, EXPIRED: 7-18-91

#4610, eff 5-10-89

#5365, eff 3-27-92

#5586, eff 2-22-93

#5820, eff 5-3-94

#6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

#6903, eff 12-4-98, EXPIRED: 12-4-06

#8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

#9051, eff 12-27-07

#10054, eff 1-1-12

          #10373, eff 7-2-13

#10746, eff 1-1-15

#12991, eff 2-21-20

 

PART Ac 301  DEFINITIONS

                                                                                                                                            

Ac 301.01  Definitions.

 

(a) “Attest” means “attest” as defined in RSA 309-B:3, I(a), namely “ providing the following services:

(1)  Any audit or other engagement to be performed in accordance with the American Institute of Certified Public Accountants’ Statements on Auditing Standards (SAS).

 

(2)  Any review of a financial statement to be performed in accordance with the American Institute of Certified Public Accountants’ Statements on Standards for Accounting and Review Services (SSARS).

 

(3)  Any examination of prospective financial statements to be performed in accordance with the American Institute of Certified Public Accountants’ Statements on Standards for Attestation Engagements (SSAE).

 

(4)  Any engagement to be performed in accordance with the Public Company Accounting Oversight Board's Auditing Standards.

 

(5)  Any examination, review, or agreed upon procedures engagement to be performed in accordance with the Statements on Standards for Attestation Engagements (SSAE), other than the examination described in subparagraph (a)(3).

 

(b)  “Assurance” is the process of evaluating and verifying the financial records, accounting entries, and financial statements as provided by the client.  The term assurance includes “attest.”

 

(c)  “Dishonest act” means any course of conduct involving intentional deception by the applicant, whether in the course of employment or as private conduct, and includes a violation or violations of any professional code of ethics or conduct to which the applicant is required to adhere, provided such violation relates to an intentional act.

 

         (d)  “Good character” means “good character” as defined in RSA 309-B:5, II, namely, “the lack of a history of dishonest or felonious acts.”

 

         (e)  “History of dishonest or felonious acts” means:

 

(1)  Conviction at any time of a felony that has not been annulled by a court of competent jurisdiction;

 

(2)  Conviction within the year immediately preceding the application of any criminal offense whether felony, or misdemeanor involving a dishonest act that has not been annulled by a court of competent jurisdiction;

 

(3)  Conviction within the 5 years immediately preceding the application of 2 criminal offenses, whether felony or misdemeanors, or both, involving dishonest acts that have not been annulled by a court of competent jurisdiction; or

 

(4)  Conviction within the 10 years immediately preceding the application of, in the aggregate, 3 or more criminal offenses, whether felony or misdemeanor, or a combination thereof, involving dishonest acts.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35

 

PART Ac 302  APPLICATION PROCEDURE

 

         Ac 302.01  Purpose.  The purpose of this part is to describe the requirements for application to the Office of Professional Licensure and Certification (OPLC), either for a certificate to practice as a Certified Public Accountant (CPA) in the state of New Hampshire (NH), or for the registration of a firm to engage in an accounting business in NH.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 301.01)

 

         Ac 302.02  CPA Certification Process Requirements.  Each person seeking a NH certificate to practice as a Certified Public Accountant (CPA) shall:

 

         (a)  Meet the education requirements set forth in RSA 309-B:5, III, and in Ac 303.02 prior to taking the applicable CPA exam;   

 

         (b)  Meet the aggregate experience requirements set forth in RSA 309-B:5, IX or X, or a combination of both provided that the minimum amount of experience is documented, as required by Ac 303.04; and

 

         (c)  For an initial certification, each applicant shall submit an application package to the NASBA that includes:

 

(1)  A completed “Universal Application For Initial License” as required by Plc 304.01(a)(1);

 

(2)  A completed “CPA Addendum to the Universal Application for Initial Licensure” described in Ac 302.03(b)(2); and

 

(3)  The initial application fee required by Plc 1002.01.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 301.02)

 

         Ac 302.03  Requirements for Forms and Other Submissions.

 

         (a)  All forms and other documents submitted to the NASBA pursuant to Ac 300 shall be written in English unless the original document is in another language, in which case a copy of the document in its original language shall be accompanied by a translation that has been attested to by the person who translated the document as being accurate and complete.

 

         (b)  The following forms shall be submitted to the NASBA as required by Plc 301.02(c):

 

(1)  The “Universal Application for Initial License” required by Plc 304.01(a)(1);

 

(2)  The “CPA Addendum to the Universal Application for Initial License” revised 10/2025 requiring:

 

a chronological summary of the applicant’s public and governmental accounting experience as required by RSA 309-B:5, IX - X, that includes:

 

a.  The applicant’s position title;

 

b.  The beginning and ending dates of such employment;

 

c.  The name of the employer; and

 

d.  The city and state of the employer; and

 

(3)  The fee required by Plc 1002.01.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 301.03)

 

         Ac 302.04  Application for Certification as CPA Through Endorsement.  Each applicant for certification as a CPA, who is licensed in another jurisdiction with substantially similar licensing requirements as this state as required by Plc 313.13  shall apply directly to the NASBA as described in Plc 301.02(c).

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 301.05)

 

         Ac 302.05  CPA Firm Permit Requirements.

 

         (a)  A CPA firm permit to practice is required for all CPA firms wishing to do business in NH.

 

         (b)  Each CPA firm seeking a permit to practice as a CPA firm in NH that provides assurance services or compilation services for a client having its home office in NH shall:

 

(1)  Demonstrate compliance with the ownership requirements set forth in RSA 309-B:8, III(a);

 

(2)  Demonstrate that any individual CPA who is responsible for supervising assurance services or authorizes someone to sign the accountant’s report on the financial statements on behalf of the firm, meets the experience requirements set forth in RSA 309-B:8, III(c);

 

(3)  Submit a fully completed “Universal Application for Initial License” as required by Plc 304.01(a)(1);

 

(4)  Submit an “Affidavit for Peer Review” revised 10/2025, if required pursuant to Ac 302.07;

 

(5)  Submit a copy of the most recent peer review acceptance letter, if the CPA firm has been issuing reports for 3 or more years, as required pursuant to Ac 302.07; and

 

(6)  Submit the application fee required by Plc 1002.01.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 301.10)

 

         Ac 302.06  CPA Firm Permit Application.  Each CPA firm seeking a permit to practice as a CPA firm in NH that provides assurance services or compilation services shall complete and submit to the OPLC the “CPA Firm Permit Application” requiring the following information:

 

         (a)  The complete name of the CPA firm;

 

         (b)  The telephone number and business address of the CPA firm and contact information, including:

 

(1)  Street and number;

 

(2)  City;

 

(3)  State;

 

(4)  Zip code;

 

(5)  Contact person; and

 

(6)  Contact person’s e-mail address;

 

         (c)  An indication of the type of practice by selecting one of the following:

 

(1)  Certified Public Accountant(s);

 

(2)  Public Accountant(s);

 

(3)  Both CPA and PA; and

 

(4)  CPA or PA with non-licensee owners;

 

         (d)  A list of all partners, shareholders, or owners, including non-licensee owners on firm letterhead, that specifies:

 

(1)  Each such person’s name, home address, and home or cell phone number, person’s business address and business telephone number; and  

 

(3)  A description of each person’s ownership interest, including percentage of ownership;

 

         (e)  A list of all licensees who work in NH for the CPA firm, that specifies:

 

(1)  Each such licensee’s name;

 

(2)  Each such licensee’s NH certificate number; and  

 

(3)  Each such NH licensee’s certificate expiration date;

 

         (f)  A list of every state in which the CPA firm has applied for or holds a permit to practice as a CPA firm;

 

         (g)  A list of every past denial, revocation, suspension, or other disciplinary action taken against the CPA firm’s permit to practice in any state;

 

         (h)  Identification of the individual or individuals who will be in charge of attest services rendered in NH, including each licensee’s:

 

(1)  Full name;

 

(2)  Business address, business telephone number and e-mail address; and

 

(3)  NH certification number and certification expiration date;

 

         (i)  The type of entity, including but not limited to:

 

(1)  Professional corporation;

 

(2)  Partnership;

 

(3)  Limited liability company; or

 

(4)  Professional limited liability company;

 

         (j)  A copy of the most recent peer review acceptance letter, if the CPA firm has issued reports for 3 or more years;

 

         (k)  A statement indicating whether the application is an initial or a renewal;

 

         (l)  The affidavit described in Ac 302.07(b);

 

         (m)  The fee specified Plc 1002.01;

 

         (n)  A certification signed by an authorized representative of the firm indicating that the application is true and correct to the best of the representative’s knowledge and belief;

 

         (o)  Acknowledgment that the provision of false information is a basis for disciplinary action by the board; and

 

         (p)  A certification that at least a simple majority of the ownership of the firm is in accordance with RSA 309-B:8, III(a).

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 301.11)

 

Ac 302.07  Affidavit for Peer Review.

 

         (a)  Each CPA firm seeking a permit to practice as a CPA firm in NH shall submit an affidavit regarding peer review that complies with this section.

         (b)  The applicant shall complete and submit the “Affidavit for Peer Review” revised 10/2025 requiring the following information:

 

(1)  If the CPA firm does not issue reports, a statement indicating that the CPA firm does not issue reports and is exempt from the peer review requirement, and that the firm will:

 

      a.  Notify the board within 30 days of issuing their first report;

 

      b.  Enroll in an approved practice-monitoring program; and

 

      c.  Complete a peer review within 18 months of the year-end of the first report issued;

 

(2)  If the CPA firm has issued its first report less than 18 months prior to the date of the affidavit, a statement indicating that the CPA firm has issued its first report less than 18 months prior to the date of the affidavit and the year-end date on such engagement;

 

(3)  If the CPA firm issues reports and has received a peer review report with a rating of pass, a statement indicating that the CPA firm has had a peer review report with the rating of pass and when the next peer review is due; and

 

(4)  If the CPA firm issues reports and has received a peer review report of pass with deficiency or deficiencies or fail reporting rating, the CPA firm shall submit a statement indicating that the CPA firm is currently taking the necessary steps to correct the deficiency or deficiencies outlined in the reviewer’s report and the date that the CPA firm shall notify the board and submit a copy of the final completion letter.  If the firm receives an "Accept-provide-that" letter with corrective action(s) to complete, the CPA firm will notify the board and submit a copy of the final completion letter from the administering entity upon receipt.

 

         (c)  Each affidavit submitted pursuant to this section shall:

 

(1)  Include the printed name of the authorized representative of the CPA firm;

 

(2)  Be signed by the authorized representative, attesting to the accuracy and truthfulness of the affidavit; and

 

(3)  Include the date the authorized representative signed the affidavit attesting to its accuracy and truthfulness.

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 301.12)

 

         Ac 302.08  Denial of Application.  An applicant who has been denied a license shall be provided an opportunity for an administrative hearing before the board in accordance with the requirements of Plc 200.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35

 

PART Ac 303  QUALIFICATIONS

 

         Ac 303.01  Initial CPA Applicant Qualifications.  To be granted initial certification, CPA applicants shall meet or exceed the minimum qualifications relative to:

 

         (a)  Education as set forth in RSA 309-B:5, III, and Ac 303.02;

 

         (b)  Experience as set forth in RSA 309-B:5, IX or X, and Ac 303.04;

 

         (c)  Examination as set forth in RSA 309-B:5, IV through VI, and Ac 304.02; and

 

         (d)  Good character as set forth in RSA 309-B:5, II.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 302.01)

 

         Ac 303.02  CPA Certificate Applicant Education Requirements.

 

         (a)  Each applicant for certification as a CPA shall have met at least one of the following educational requirements in effect in NH, at the time the applicant successfully completed the exam, as follows:

 

(1)  For those applicants who successfully completed the exam before January 1, 2005:

 

a.  At least a baccalaureate degree from an educational institution accredited pursuant to Ac 303.02(b);

 

b.  At least 24 semester hours in business; and

 

c.  At least 12 semester hours in accounting;

 

(2)  For those applicants who successfully completed the exam on or after January 1, 2005:

 

a.  At least a baccalaureate degree from an educational institution accredited pursuant to Ac 303.02(b);

 

b.  At least 120 semester hours of education;

 

c.  At least 24 semester hours in business; and

 

d.  At least 12 semester hours in accounting; or

 

(3)  For those applicants who successfully completed the exam on or after July 1, 2014:

 

a.  At least a baccalaureate degree that includes at least 150 hours pursuant to Ac 303.02(f) from an educational institution accredited pursuant to Ac 303.02(b);

 

b.  At least 30 semester hours of education meeting the criteria in Ac 303.02;

 

c.  The total required semester hours of education consisting of not less than 30 hours in accounting and 24 hours in business courses accredited pursuant to 303.02(b).

 

         (b)  An educational institution shall be considered by the OPLC to be accredited if:

 

(1)  Approved by a member of a regional or national accrediting agency that is recognized by the United States Department of Education; or

 

(2)  Approved by the “American Assembly of Collegiate Schools” (AACSB).

 

         (c)  A candidate shall be considered as having graduated from an accredited educational institution if, at the time the educational institution granted the applicant's degree, it was accredited pursuant to (b) above.

 

         (d)  If the educational institution was not accredited at the time the applicant's degree was received, but was accredited at the time the application is filed with the OPLC, the institution shall be deemed to be accredited provided that the educational institution:

 

(1)  Certifies that the applicant’s total educational program would qualify the applicant for graduation with a baccalaureate degree during the time the institution has been accredited; and

 

(2)  Furnishes the OPLC with college catalogue course numbers and descriptions that demonstrate that the pre-accreditation courses are substantively equivalent to their analogous post-accreditation courses.

 

         (e)  If an applicant's degree was received at an accredited educational institution, but contained course work taken at a non-accredited institution, such courses shall be deemed to have been taken at the accredited educational institution from which applicant's degree was received, provided the accredited educational institution either:

 

(1)  Has accepted such courses by including them in its official transcript; or

 

(2)  Has certified to the OPLC that it will accept such courses for credit toward graduation.

 

         (f)  A graduate of a 4-year degree-granting educational institution not accredited at the time applicant’s degree was received or at the time the application was filed shall be deemed by the OPLC to be a graduate of an accredited educational institution if all of the following are true:

 

(1)  A credentials evaluation service approved by the OPLC certifies that the applicant's degree is equivalent to a degree from an accredited educational institution;

 

(2)  An accredited educational institution has accepted the applicant’s non-accredited baccalaureate degree for admission to a graduate business degree program; and

 

(3)  The applicant has satisfactorily completed at least 150 semester hours, including at least 24 semester hours of business of which 12 shall be in accounting from the baccalaureate or post baccalaureate education.

 

         (g)  The OPLC shall deny an application for initial certification if the OPLC determines by a preponderance of the evidence that the applicant has not met the education requirements set forth in RSA 309-B:5, III, and this section.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 302.02)

 

         Ac 303.03  Educational Qualifications for CPA Examination.  Pursuant to RSA 309-B:5, III (c) on or after July 1, 2014 applicants for the CPA examination required pursuant to RSA 310-B:5 and Ac 304 shall have at least 120 semester hours of college education and include a baccalaureate degree conferred by a college or university accredited pursuant to Ac 303.02(b). The 150 semester hours of college education shall:

 

         (a)  Include at least 30 semester hours of accounting courses which shall include coverage in financial accounting auditing, taxation, and management accounting; and

 

         (b)  Include at least 24 semester hours of business courses other than accounting courses which includes business law, business information systems, finance, professional ethics, business organizations, and economics.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 302.03)

 

         Ac 303.04  CPA Certificate Applicant Accounting Experience.

 

         (a)  Definition:

 

(1)  “Accounting or auditing skills” means the provision of:

 

a.  One or more of the following public accounting services, as specified by RSA 309-B:5, IX, namely:

 

i.  Assurance services;

 

ii.  Management advisory services;

 

iii.  Financial advisory services;

 

iv.  Consulting services;

 

v.  Preparation of tax returns; or

 

vi.  Furnishing tax advice; or

 

b.  One or more of the following government accounting services, as specified by RSA 309-B:5, X(a) through (c), namely:

 

i.  Auditing the tax returns or books and accounts of nongovernmental entities in 3 or more distinct lines of commercial or industrial business in accordance with generally accepted auditing standards;

 

ii.  Auditing the books and accounts or activities of 3 or more governmental agencies or distinct organizational units in accordance with generally accepted auditing standards and reporting on their operations to a third party, to the Congress, or to a state legislature; or

 

iii.  Reviewing financial statements and supporting material covering the financial condition and operations of nongovernmental entities engaged in 3 or more distinct lines of commercial or industrial business under the supervision of a licensee to determine the reliability and fairness of the financial reporting and compliance with generally accepted accounting principles and applicable government regulations for the protection of investors and consumers.

 

         (b)  Pursuant to RSA 309-B:5, IX, each applicant submitting an “Universal Application For Initial License” for certification as a CPA shall meet the following general experience requirements:

 

(1)  Such experience shall be earned prior to the date that the candidate applies for certification in NH; and

 

(2)  Compliance with one of the following:

 

a.  A minimum of 2 years’ experience in accounting for an applicant with a baccalaureate degree; or

 

b.  A minimum of one years’ experience in accounting for an applicant with a master’s degree in:

 

1.  Accounting;

 

2.  Taxation;

 

3.  Finance; or

 

4.  Business administration; and

 

                           c.  A minimum of one year’s experience in accounting for an applicant on or after July                                1, 2014 that meets the educational requirements of Ac 303.02(4) and RSA 309-B-5.

 

         (c)  For full-time accounting employees, each year’s experience shall consist of 12 calendar months as an employee under the supervision of a licensed CPA, CA, CPC, or other equivalent foreign designation holder, and shall include at least 1,500 hours of service solely involving the use of accounting or auditing skills, as defined in Ac 303.04(a)(1)a.

 

         (d)  For non-full time accounting employees 2,080 hours of accounting practice under the supervision of a licensed CPA, CA, CPC, or other equivalent foreign designation holder shall be completed within 6 years immediately preceding the submission of the application, and shall include at least 1,500 hours of services solely involving accounting or auditing skills, as defined in Ac 303.04(a)(1)a. 

 

         (e)  For purposes of (c) and (d) above, no experience shall be counted as being under the supervision of a licensed CPA, CA, CPC, or other equivalent foreign designation holder unless such licensee has the authority to review, direct, and evaluate on a continuing basis the accounting activities of those who are under the supervision of a licensed CPA, CA, CPC, or other equivalent foreign designation holder. 

 

         (f)  The applicant shall demonstrate that the minimum required experience in accounting has been fulfilled by the submission of the required documents.

 

         (g)  The OPLC shall make decisions on applications as required by Plc 304.09.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 302.04)

 

         Ac 303.05  CPA Firms.

 

         (a)  A CPA firm shall be granted a permit to practice as a CPA firm in NH if the applicant CPA firm meets the requirements of this section.

 

         (b)  The applicant CPA firm shall file with the OPLC a “CPA Firm Permit Application” as described in Ac 302.06 and any supporting data, documents, or information, required pursuant to Ac 302.05 through Ac 302.07. Such documentation shall demonstrate that the firm meets all statutory and rule requirements without demonstrating that any basis for denial of the permit exists.

 

         (c)  The applicant CPA firm shall demonstrate, pursuant to RSA 309-B:8, I, that it has or will have a physical presence in NH by a date certain specified by the applicant CPA firm.  Each CPA firm’s primary office doing business in NH shall be registered with the OPLC.

 

         (d)  If the applicant CPA firm specifies a date by which it will have a physical presence in NH, pursuant to (c) above, the permit shall become effective on the date of issuance of the permit or the date that the applicant specifies that it will have a physical presence in NH, whichever is later.

 

         (e)  The applicant CPA firm shall demonstrate that at least a simple majority of the ownership of the firm belongs to those who are certified in NH.

 

         (f)  The applicant CPA firm shall demonstrate that any individual CPA who is responsible for supervising attest services or authorizes someone to sign the accountant's report on the financial statements on behalf of the firm, meets the experience requirements set forth in RSA 309-B:8, III(c).

 

         (g)  The applicant CPA firm shall demonstrate, through the peer review affidavit required pursuant to Ac 302.07, that it is in compliance with any applicable provision of Ac 405 relative to peer review.

 

         (h)  The applicant CPA firm shall submit a copy of the most recent peer review letter obtained in compliance with Ac 405.02, if the CPA firm has been issuing reports for 3 or more years.  If the letter indicates that the CPA firm has received an unqualified peer review report, the CPA firm shall be determined by the OPLC to be in compliance with Ac 405.

 

         (i)  If the applicant CPA firm has received an adverse or qualified peer review report, the affidavit required pursuant to (g) above shall indicate that fact as well as the date by which the CPA firm expects to be able to submit to the OPLC an unqualified peer review report after taking the steps necessary to address the bases of the adverse or qualified peer review report.  The OPLC shall issue a conditional permit that shall remain in effect for 2 years, or until the CPA firm timely submitting the subsequent unqualified peer review letter. However, no conditional permit shall remain in effect for longer than 2 years.

 

         (j)  The applicant CPA firm shall submit the application fee required by Plc 1002.01.

 

         (k)  Applications shall be reviewed as required by Plc 304.06 and Plc 304.08.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 302.07)

 

PART Ac 304  EXAMINATION

 

         Ac 304.01 CPA Examination Required.

 

         (a)  Every applicant for examination for initial certification as a CPA shall take and pass, with a grade of 75 or above, each section of the Uniform Certified Public Accountant Examination and Advisory Grading Service (examination) of the American Institute of Certified Public Accountants (AICPA) as specified by RSA 309-B:5, IV.  The examination shall be administered by the NASBA.

 

         (b)  Pursuant to RSA 309-B:5, V, the applicant examinee shall be required to pass all sections of the examination within a 30 month period within the date that their first score was released by the NASBA. 

        

         (c)  Pursuant to RSA 309-B:5, V, no section passed more than 30 months prior to an applicant examinee receiving notification of passing the remaining sections shall be recognized for the purpose of determining (a) and (b).

 

         (d)  Applicants seeking a waiver of the 30-month limitation shall submit a petition for waiver as required by Plc 211.03 through Plc 211.05 to explain the circumstances that are beyond the control of the applicant that have rendered them unable to meet the requirements for passing all sections of the examination within the 30-month period.

 

         (e)  To arrange to sit for the examination, each applicant shall contact the NASBA directly as required by Plc 301.02(c) and Plc 303.03.

 

Source. #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 303.02)

 

PART Ac 305 ENDORSEMENT

 

         Ac 305.01  Endorsement CPA Certificate Applicant Qualifications.  To be granted certification through reciprocity, applicants shall comply with Plc 313.13.

 

Source.  #14399, eff 12-5-25, EXPIRES: 12-5-35 (formerly Ac 304.01)

 

CHAPTER Ac 400  CONTINUED STATUS

 

REVISION NOTE:

 

          Document #14322, effective 9-15-25, adopted, readopted, readopted with amendment, or repealed all of the rules in Chapter Ac 400 titled “Continued Status.”  Document #14322 also deleted the number Ac 404.04 which had previously been reserved after rule Ac 404.04 titled “Claims Against Licensees” had been repealed by Document #10054, effective 1-1-12.  Document #14322 replaces all prior filings affecting the former rules in Chapter Ac 400.

 

          The following rules were repealed by Document #14322:

 

                  Ac 401.08 titled “Voluntary Surrender by Licensees”

                  Ac 402.03 titled “Revocation”

                  Ac 402.04 titled “License Suspension”

                  Ac 402.05 titled “Primary Sanctions”

                  Ac 402.07 titled “Procedures for Assessing and Collecting Fines”

 

          All but Ac 402.07 were replaced by new rules as indicated in the source notes.

 

          The prior filing affecting the repealed Ac 401.08 and Ac 402.07 included the following document:

 

                  #10746, eff 1-1-15

 

          The prior filings affecting the repealed Ac 402.03 included the following documents:

 

                  #9051, eff 12-27-07

                  #10746, eff 1-1-15

 

          The prior filing affecting the repealed Ac 402.04 included the following document:

 

                  #10746, eff 1-1-15 (from Ac 402.02)

 

          The prior filing affecting the repealed Ac 402.05 included the following document:

 

                  #10746, eff 1-1-15 (from Ac 402.03)

 

          The prior filings affecting the previously repealed Ac 404.04 included the following documents:

 

        #6904, eff 12-4-98, EXPIRED: 12-4-06

        #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

        #9051, eff 12-27-07

        #10054, eff 1-1-12

 

PART Ac 401  RENEWAL

 

          Ac 401.01  Renewal Process.

 

         (a)  Applications for renewal of a certificate, registration, or permit shall be processed in accordance with Plc 308.09 through Plc 308.12.

 

         (b)  For biennial renewal of a CPA certificate or for a PA registration, the applicant shall submit the following:

 

(1)  A completed and signed “Universal Application for License Renewal” required by Plc 308.05(b)(1);

 

(2)  A completed “CPA Certification and PA Registration Addendum to the Universal Application for License Renewal” required by Ac 401.04”;

 

(3)  On a separate sheet, a detailed report of the relevant circumstances, if any, of the answers to the “yes-no” questions on the application which are in the affirmative and include relevant supporting documents;

 

(4)  A resume or curriculum vitae showing a chronological summary of the applicant’s public, industry, government, and academic accounting experience since the license lapsed that includes:

 

a.  The applicant’s position title;

 

b.  The beginning and ending dates of such employment;

 

c.  The name of the employer; and

 

d.  The city and state of the employer; and

 

(5)  The renewal fee required by Plc 1002.01.

 

         (c)  For biennial renewal of a firm permit, the applicant shall submit the following:

 

(1)  A completed and signed “Universal Application for License Renewal” required by Plc 308.05(b)(1);

 

(2)  A completed “CPA or PA Firm Addendum to the Universal Application For License Renewal”;

 

(3)  On a separate sheet, a detailed report of the relevant circumstances, if any, of the answers to the “yes-no” questions on the application which are in the affirmative and include relevant supporting documents;

 

(4)  Documentation of peer review, if required pursuant to Ac 405; and

 

(5)  The renewal fee required by Plc 1002.01.

 

Source.  #1663, eff 12-17-80; ss by #1972, eff 2-28-82; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED:
7-18-91

 

New.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

         Ac 401.02  General Requirements for Renewal Documentation.  All forms and other documents submitted to the OPLC as part of an application for renewal shall be in English unless the original document is in another language, in which case a copy of the document in its original language shall be accompanied by a translation that has been attested to by the person who translated the document as being accurate and complete.

 

Source.  #1972, eff 2-28-82; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 401.03  Certificate, Registration, and Permit Expiration.

 

         (a)  Each CPA certificate shall expire 2 years from the day the license was issued. No person shall hold themselves out as a CPA to the public in New Hampshire without a valid New Hampshire certificate.

 

         (b)  Each PA registration shall expire 2 years from the day the license was issued. No person shall hold themselves out as a PA to the public in New Hampshire, without a valid New Hampshire registration.

 

         (c)  Each firm permit shall expire 2 years from the day the license was issued. No firm shall hold itself out as an accounting firm to the public in New Hampshire without a valid New Hampshire permit.

 

Source.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 401.04  Renewal Forms.

 

         (a)  The individual applying for CPA certification or PA registration renewal shall complete and submit:

 

(1)  The “Universal Application for License Renewal” as required by Plc 308.05(b)(1); and

 

(2)  The “CPA Certification or PA Registration Addendum to the Universal Application for Renewal” by providing the following information:

 

a.  A list of all names the applicant has ever been known by;

 

b.  A yes or no answer to “I have met the continuing professional education described in Ac 403.”; and

 

c.  A yes or no answer to the question “I have included with the application a resume or curriculum vitae showing a chronological summary of the applicant’s public, industry, government, and academic accounting experience since the license lapsed that includes:

 

1.  The applicant’s position title;

 

2.  The beginning and ending dates of such employment;

 

3.  The name of the employer; and

 

4.  The city and state of the employer.

 

         (b)  A CPA firm shall complete and submit:

 

a.  The “Universal Application for License Renewal” required by Plc 308.05(b)(1); and

 

b.  The “CPA or PA Firm Addendum to the Universal Application for License Renewal” by providing the following:

 

1.  A yes or no answer to the question “Have you used the full CPA designation as opposed to the “CPA Inactive” designation, since becoming inactive?”; and

 

2.  A yes or no answer to the question “I have submitted with this application documentation of peer review, if required pursuant to Ac 405?”.

 

Source.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; amd by #10054, eff 1-1-12; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 401.05  Documentation of Completion of Continuing Professional Education.  Documentation acceptable to the board relative to CPE shall comply with Ac 403.02(d) through (g), as applicable.

 

Source.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 401.06  Inactive Status Designation.

 

         (a)  A CPA or PA who does not intend to practice accounting but who, at a later date, intends to re-enter practice, shall apply to the OPLC for permission to enter inactive status. If inactive status is granted pursuant to (f) below, the individual shall only use CPA or PA designation if the full word “Inactive” appears immediately after the letter “A” or word “accountant” in their title.

 

         (b)  A CPA or PA seeking permission to use the inactive status designation shall complete and submit the “Universal Application for Initial License” required by Plc 304.01(a)(1).

 

         (c)  A CPA or PA seeking permission to use the inactive status designation shall complete and submit the “Inactive Status Addendum to the Universal Application for Initial Licensure” by providing the following:

 

(1)  An answer of yes or no to the statement “I do not intend to practice public accounting during the next 2 years”;

 

(2)  An answer of yes or no to the statement “I shall not hold myself out as a currently practicing CPA or PA nor knowingly allow anyone else to represent that I hold such certification or credential”;

 

(3)  An answer of yes or no to the statement “I shall notify the OPLC at least 30 days prior to the proposed date of re-entry into practice”; and

 

(4)  An answer of yes or no to the statement “I shall, before actually re-entering practice, satisfy all CPE requirements that would have been applicable had I remained active in practice, which requires at least 80 hours completed within the 2-years immediately preceding the submission of this application”.

 

         (d)  The applicant shall include with the application the fee required by Plc 1002.01.

 

         (e)  The applicant shall sign and attest in accordance with Plc 308.08.

 

         (f)  The OPLC shall grant the application for inactive status if it determines that the application is complete and the fee has been paid.

 

         (g)  The CPA or PA whose application has been granted  shall only use the inactive status designation for the 2 years during which the renewal would have been effective. In order to remain on inactive status after the 2-year period, the CPA or PA shall reapply as required by (a) through (e) above.

 

Source.  #9051, eff 12-27-07; amd by #10054, eff 1-1-12; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 401.07  Return to Active Practice from Inactive Status.

 

         (a)  A licensee on inactive status pursuant to Ac 401.06, or a person who otherwise no longer holds a current license issued by the OPLC, shall not return to active practice before the OPLC determines that the licensee has complied with all requirements of this section.

 

         (b)  A licensee on inactive status pursuant to Ac 401.06 who seeks to return to active practice, within 6 years of the lapse of that CPA license shall complete and submit the “Universal Application for Initial License” required by Plc 304.01(a)(1).

 

         (c)  In addition to the form required in (b) above, the applicant shall complete and submit a “Return to Active Practice Addendum to the Universal Application for Initial License” providing the following information:

 

(1)  An answer of yes or no to the question “Have you used the full CPA designation, as opposed to the ‘CPA Inactive’ designation, since becoming inactive?”; and

 

(2)  An answer of yes or no to the question “I have included with this application documentation, as required by Ac 401.05, showing completion of 80 hours of CPE, including at least 4 hours of ethics?

 

         (d)  The applicant who wishes to return to active practice shall submit the following with the “Universal Application for Initial License”:

 

(1)  An explanation of all material facts detailing each response to the questions required in Plc 304.03(e) that are in the affirmative;

 

(2)  Documentation, as required by Ac 401.05, showing completion of 80 hours of CPE, including at least 4 hours of ethics; and

 

(3)  Payment of the fee required by Plc 1002.01.

 

Source.  #9200, eff 7-4-08; amd by #10054, eff 1-1-12; ss by #10746, eff 1-1-15; ss by #12991, eff 2-21-20; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

         Ac 401.08  Reinstatement of a License Lapsed for Non-Renewal.

 

         (a)  Licenses subject to reinstatement by the OPLC under this section shall be those licenses lapsed for no more than 1 year.

 

         (b)  Applications for license reinstatement shall be processed in accordance with Plc 312.

 

         (c)  The OPLC shall reinstate a license lapsed for no more one year if the applicant for reinstatement submits to the OPLC:

 

(1)  Evidence of good moral character as shown by:

 

a.  The answers to the “yes-no” questions on the reinstatement application form;

 

b.  Any detailed reports of the relevant circumstances related to answers to those questions as described in Plc 304.04; and

 

c.  The written statement required by Plc 308.06(e);

 

(2)  For a PA, a complete application required by Ac 401.01(b);

 

(3)  For a CPA firm, a completed application required by Ac 401.01(c);

 

(4)  For a PA, the documents described in Ac 401.01(b)(3) and (4);

 

(5)  For a CPA firm, the documents described in Ac 401.01(c)(3); and

 

(6)  The reinstatement fee required by Plc 1002.01.

 

         (d)  The applicant who wishes to activate the license that lapsed for one or more years shall provide all documents required for initial licensure.

 

Source.  #14322, eff 9-15-25, EXPIRES: 9-15-35

 

PART Ac 402  revocation, suspension, and other sanctions

 

         Ac 402.01  Professional Misconduct.  Professional misconduct shall be:

 

         (a)  Knowingly or negligently providing inaccurate material information to the board or the OPLC or failing to provide complete and truthful material information upon inquiry by the board or the OPLC, including during the process of applying for a license, license renewal, or license reinstatement;

 

         (b)  Conviction of any criminal offense other than a traffic violation;

 

         (c)  Failure to report to the board through the OPLC a conviction described in (b) above within 30 days;

 

         (d)  Any violation of Ac 500;

 

         (e)  Any conduct that results in disciplinary action by a regulatory authority in another domestic or foreign jurisdiction;

 

         (f)  Practice without a currently valid license; and

 

         (g)  Any violation of:

 

(1)  Any provision of RSA 309-B;

 

(2)  Any rule adopted by the board; or

 

(3)  Any state or federal law reasonably related to the licensee’s authority to practice or the licensee’s ability to practice competently.

 

Source.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff
3-27-98, EXPIRED: 7-25-98;

 

New.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 402.02  Disciplinary Sanctions.

 

         (a)  When the board, through the OPLC, receives notice that a licensee has been subjected to disciplinary action related to professional conduct by the licensing authority of another jurisdiction the board and the OPLC shall proceed as required in Plc 311.14.

 

         (b)  In a disciplinary proceeding brought on the basis of discipline imposed in another jurisdiction, the licensee shall be subject to any disciplinary sanction required by Plc 311.14(b).

 

         (c)  After a finding that misconduct has occurred, the board shall impose one or more of the disciplinary sanctions authorized by RSA 310:12.

 

         (d)  In imposing sanctions, the board shall consider the following factors, along with the presence of other aggravating or mitigating circumstances, in determining the level or kind of disciplinary sanction imposed:

 

(1)  The seriousness of the offense;

 

(2)  Prior disciplinary record;

 

(3)  State of mind at the time of the offense;

 

(4)  Acknowledgment of wrongdoing;

 

(5)  Willingness to cooperate with the board or the OPLC;

 

(6)  The purpose of the rule or statute violated;

 

(7)  The potential harm to public interest; and

 

(8)  The nature and extent of the enforcement activities required of the board or the OPLC as a result of the offense.

 

         (e)  Copies of board orders imposing disciplinary sanctions and copies of all settlement agreements or consent decrees shall be sent to the licensing body of each state in which the licensee is licensed and to such other entities, organizations, associations, or boards as are required to be notified under applicable state or federal law.

 

Source.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

         Ac 402.03  Procedure for Imposition of Sanctions.  Other than immediate license suspension authorized by RSA 541-A:30, III, the board shall impose disciplinary sanctions only:

 

         (a)  After prior notice to the licensee in accordance with Plc 200 and the opportunity for the licensee to be heard; or

 

         (b)  By agreement in a settlement between the board and the licensee made pursuant to Plc 200.

 

Source.  #14322, eff 9-15-25, EXPIRES: 9-15-35

 

         Ac 402.04  Determinations Required for Sanctions.

 

         (a)  In determining which sanction or combination of sanctions to impose, the board shall:

 

(1)  First determine the nature of the act or omission constituting the misconduct done by the certified, registered, or permitted individual;

 

(2)  Next determine whether the misconduct has one or more of the characteristics listed in (b) below; and

 

(3)  Finally, apply the standards in (b) below.

 

         (b)  The characteristics shall be:

 

(1)  The misconduct actually caused harm to the client or another person;

 

(2)  The misconduct had the potential to cause harm to the client or another person;

 

(3)  The misconduct repeated earlier misconduct done by the certified, registered, or permitted individual, as determined by:

 

a.  An earlier hearing;

 

b.  An earlier settlement agreement predicated on the same misconduct by the certified, registered, or permitted individual; or

 

c.  An admission by the certified, registered, or permitted individual;

 

(4)  The misconduct was not the first misconduct by the certified, registered, or permitted individual, as determined by:

 

a.  An earlier hearing;

 

b.  An earlier settlement agreement predicated on the same misconduct by the certified, registered, or permitted individual; or

 

c.  An admission by the certified, registered, or permitted individual; and

 

(5)  The misconduct was intentional rather than the result of negligence or inadvertence.

 

Source.  #14322, eff 9-15-25, EXPIRES: 9-15-35

 

         Ac 402.05  Standards for the Selection of Sanctions.  The board shall select appropriate sanction(s):

 

         (a)  From the list authorized in RSA 310-B:12;

 

         (b)  From the list of fines in Ac 402.06; and

 

         (c)  By choosing, in light of the characteristics determined pursuant to Ac 402.04(b), the sanction or combination of sanctions most likely to:

 

(1)  Protect the public;

 

(2)  Deter future misconduct by the certified, registered, or permitted individual;

 

(3)  Take into account any acknowledgement of fault by the certified, registered, or permitted individual within investigation of the misconduct;

 

(4)  Correct any attitudinal, educational, or other deficiencies which led to the misconduct;

 

(5)  Encourage the responsible practice of accountancy; and

 

(6) Demonstrate to the certified, registered, permitted individual, and the public, the board's intention to insure that its certified, registered, or permitted individuals practice in accordance with applicable laws and the public welfare.

 

Source.  #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 402.06  Administrative Fines.

 

         (a)  When persons subject to the board’s disciplinary authority are directed to pay fines in accordance with this section, such fines shall be assessed in accordance with the factors stated in Ac 402.02(d) and the following additional considerations:

 

(1)  The cost of any investigation or hearing conducted by the board or the OPLC; and

 

(2)  The licensee’s ability to pay a fine assessed by the board through the OPLC.

 

         (b)  Administrative fines shall not exceed the following amounts:

 

(1)  When no violation of the same type has occurred within the 5 years preceding the board’s notice to the respondent, the fine assessed shall not exceed $250.00 per day or $1,000.00 per offense whichever is greater;

 

(2)  When a single disciplinary infraction of the same type has occurred within the 5 years preceding the board’s notice to the respondent, the fine assessed shall not exceed $250.00 per day or $1,500.00 per offense whichever is greater;

 

(3)  When more than one disciplinary infraction of the same type has occurred within the 5 years preceding the board’s notice to the respondent, the fine assessed shall not exceed $250.00 per day or $2,000.00 per offense whichever is greater; and

 

(4)  In the case of continuing violations, a separate fine shall be assessed for each day the violation continues, but the total amount of the fine and the respondent’s promptness and cooperativeness in ceasing the prohibited conduct in question shall be considered in assessing the daily fines. A single course of continuing conduct shall be treated as a single violation for purposes and (1)-(3) above.

 

Source.  #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

PART Ac 403  CONTINUING EDUCATION

 

          Ac 403.01  Continuing Professional Education Requirements.

 

         (a)  Up to 40 hours of CPE in excess of the required 80 hours shall only be carried over to the next succeeding biennial period.

 

         (b)  Notwithstanding any other provision of Ac 403, a licensee, who is a new licensee or has activated an inactive license shall complete a minimum of 20 hours of CPE each year prior to renewal. For purposes of this paragraph, carryover hours shall not be applicable to new licensees.

 

         (c)  Notwithstanding any other provision of Ac 403, a licensee shall complete a minimum of 4 hours of CPE in the area of professional ethics in each 2-year certification or registration period or as a condition of renewal upon returning to active practice from inactive status, regardless of the duration of inactive status.

 

         (d)  A licensee who has previously held a certificate or registration but who was on inactive status shall show compliance with Ac 403.01(a) and (c).

 

         (e)  A licensee certified in New Hampshire by reciprocity and seeking renewal shall complete 20 hours of CPE for each year during the biennial license period.

 

         (f)  A licensee may petition the board to waive the specific requirements of this section based upon individual hardship due to:

 

(1)  Health issues supported by documentation from the licensee’s physician or medical professional that shall be furnish to the board when necessary for a fair and informed determination by the board;

 

(2)  Military service for serving on temporary active duty in the armed forces of the United States for a period of time exceeding 120 consecutive days in a year; or

 

(3)  A showing of good cause that includes serious accident, illness, or other circumstances beyond the control of the licensee which actually prevents the licensee from satisfying the CPE requirements.

 

         (g)  If, in any one year within a biennial certification or registration period, a licensee fails to earn 20 hours of CPE as required by (b) above, the licensee shall petition the board to waive the 20 hour per year CPE requirement for that one year.

 

         (h)  As soon as a licensee realizes that they will not meet the 20 hours per year CPE requirement in a non-renewal year, the licensee shall petition the board for permission to satisfy the deficiency within 6 months of the filing of the petition, except that all CPE shall be earned within a renewal year.

 

         (i)  As soon as a licensee realizes that they will not meet the 20 hour per year CPE, the 80-hour or prorated biennial CPE requirement, or both in a renewal year, the licensee shall petition the board for permission to satisfy the deficiency within 60 days.

 

         (j)  In cases where a licensee fails to meet the 20 hour per year CPE requirement more than one time, they shall petition the board for permission to satisfy the deficiency in the immediately following year.  Waivers for repeat offenders shall be issued on a case by case basis with exceptions given for reasons of individual hardship, including health, military service, or other good cause.

 

         (k)  The OPLC shall deny any renewal application of a licensee who does not satisfy the hourly requirement for renewal of their license, unless the applicant petitions the board and demonstrates that the failure was beyond their control.

 

         (l)  Documentation of completion of continuing professional education shall be retained by the licensee for a period of, no less than, 4 years from the date of renewal.

 

Source.  #1972, eff 2-28-82; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5365, eff 3-27-92; amd by #5586, eff 2-22-93; ss by #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #9200, eff 7-4-08; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 403.02  Continuing Professional Education.

 

         (a)  Continuing professional education activities shall be learning opportunities that contribute directly to a licensee’s knowledge, ability, and competence to perform their professional responsibilities.

 

         (b)  An activity or program shall qualify as acceptable CPE for the renewal period in which the activity occurred, or program was attended, except as provided in Ac 403.01(b) or (g), if it is a formal activity or program of learning which contributes to the growth and the professional knowledge and professional competence of an individual licensed under RSA 309-B. All programs shall meet current the NASBA requirements.

 

         (c)  The responsibility for demonstrating that a particular program meets the requirements of this section shall rest solely upon the licensee. All documentation of CPE shall be retained for not less than 4 years from the date of the renewal in which the CPE was claimed.

 

         (d)  Activities or programs shall be in one of the 4 following formats:

 

(1)  Self-study;

 

(2)  Seminar, lecture, or webinar;

 

(3)  Authoring articles, books, or other publications; and

 

(4)  Presenting, lecturing, or instructing.

 

         (e)  Activities or programs dealing with the following general subjects shall be acceptable provided they meet all other requirements of this section:

 

(1)  Public accounting;

 

(2)  Governmental accounting;

 

(3)  Public auditing;

 

(4)  Governmental auditing;

 

(5)  Administrative practices;

 

(6)  Social environment of business;

 

(7)  Regulatory ethics;

 

(8)  Business law;

 

(9)  Business management and organization;

 

(10)  Finance;

 

(11)  Management advisory services;

 

(12)  Marketing;

 

(13)  Behavioral ethics;

 

(14)  Communications;

 

(15)  Personal development;

 

(16)  Personnel and human resources;

 

(17)  Computer science;

 

(18)  Economics;

 

(19)  Mathematics;

 

(20)  Production;

 

(21)  Specialized knowledge and its application;

 

(22)  Statistics;

 

(23)  Taxes; and

 

(24)  Data analytics.

 

         (f)  CPE credit shall be given with a ratio of a minimum of 50 minutes constituting one hour. For university or college courses, each semester hour of credit shall equal 15 hours toward the requirement.

 

         (g)  CPE credit shall be given to nano learning programs consisting of tutorial program designed to permit a participant to learn a given subject in ten-minute timeframes through the use of electronic media without instruction of a real-time instructor and meeting the NASBA requirements shall be limited to no more than 3 hours per year.

 

         (h)  To qualify for CPE as a program of self-study by a licensee, the self-study shall be documented by a certificate of completion prepared by the program sponsor that includes:

 

(1)  The name of the participant;

 

(2)  The name of the program;

 

(3)  The specific subject or subjects included in the program;

 

(4)  The date of completion;

 

(5)  A statement that indicates the participant passed a test, prepared by the program sponsor, that demonstrates mastery of the subject matter of the program of self-study;

 

(6)  The number of hours that the program sponsor has determined should be awarded for each subject studied as part of the program;

 

(7)  Whether hours are computed on a 50-minute or 100-minute basis; and

 

(8)  The signature of an authorized representative of the program provider, certifying the accuracy of the information provided on the certificate of completion.

 

         (i)  To qualify for CPE as a program seminar or lecture attended by a licensee, it shall:

 

(1)  Fall within one of the following descriptions of subject matter and program provider:

 

a. Professional education and development programs of national, state, and local accounting organizations;

 

b.  Technical sessions at meeting of national, state, and local accounting organizations and their chapters;

 

c.  Credit and non-credit courses from a university or college;

 

d.  Formal firm or in-house education programs;

 

e.  Programs of other organizations in the areas of professional accounting and industry;

 

f.  Committee meetings of professional accounting and trade societies which are structured as formal education programs;

 

g.  Dinner, luncheon, and breakfast meetings which are structured as formal education programs; and

 

h.  The portions of firm or in house meetings for staff, management groups, or both, which are structured as formal education programs and are devoted to the communication and application of general professional policy or procedure;

 

(2)  Not include time devoted to firm or organizational administrative, financial, and operating matters; and

 

(3)  Be documented by a certificate of completion from the program provider that shall include:

 

a.  The name of the participant;

 

b.  The name of the program;

 

c.  The dates and hours of attendance;

 

d.  The date of completion;

 

e.  The specific subject or subjects included in the program;

 

f.  The number of hours that the program sponsor has determined should be awarded for each subject studied as part of the program;

 

g.  Whether hours are computed on a 50-minute or 100-minute basis; and

 

h.  The signature of an authorized representative of the program provider, certifying the accuracy of the information provided on the certificate of completion.

 

         (j)  To qualify for CPE for authoring articles, books, or other publications, a licensee shall:

 

(1)  Be capable of substantiating the claim through the production of research notes, drafts, or other documents;

 

(2)  Keep a copy of each article, book, or other publication, as well as substantiation of authorship, in its published form for a period of 4 years after the licensee has claimed such authorship as CPE pursuant to Ac 403.02(d);

 

(3)  Not claim CPE under this paragraph in excess of 50% of the total number of hours of CPE required for renewal; and

 

(4)  Be documented by a certificate of completion from the licensee that shall include:

 

a.  The name of the licensee-author;

 

b.  The title of the article, book, or other publication;

 

c.  The beginning and ending dates of the writing project;

 

d.  The total number of hours spent on the writing project;

 

e.  The specific subject or subjects included in the article, book, or other publication; and

 

f.  The signature of the licensee, certifying the accuracy of the information provided on the certificate of completion.

 

         (k)  To qualify for CPE as a presentation, lecture, or instruction, a licensee shall:

 

(1)  Retain documentation, in the form of research notes, drafts, or other documents, of the licensee preparing the presentation, lecture, or instruction;

 

(2)  Submit information regarding the time spent for preparation and for presentation;

 

(3)  Limit claimed preparation time to no more than twice the presentation time claimed;

 

(4)  Limit claimed presentation time to the actual time of presentation by the licensee; 

 

(5)  Claim credit for multiple presentations of the same course within a single renewal period, only if the licensee made substantive changes to the materials or presentation requiring preparation time in excess of 25% of the preparation time claimed for the original preparation for the course;

 

(6)  Not claim CPE under this paragraph in excess of 50% of the total number of hours of CPE required for renewal; and

 

(7)  Be documented by a certificate of completion from a representative of the program sponsor that shall include:

 

a.  The name of the licensee who prepared the materials;

 

b.  The title of the presentation, lecture, or instruction;

 

c.  The name of the licensee who presented the materials;

 

d.  The date(s) on and hours during which the presentation, lecture, or instruction was given; 

 

e.  The total number of hours spent in the actual presentation of such materials;

 

f.  The specific subject or subjects included in the presentation, lecture, or instruction; and

 

g.  The signature of an authorized representative of the program provider certifying the accuracy of the information provided on the certificate of completion.

 

         (l)  The licensee shall maintain documentation of education programs that are not the NASBA approved and provide that documentation to the OPLC, so the board is able to determine if the hours meet the requirements set forth in Ac 403.02(a) through (i).  Acceptable documentation shall be:

 

(1)  Documentation from the educational provider or sponsor containing the following information:

 

a.  The name of the program;

 

b.  The name of the provider or sponsor;

 

c.  A syllabus of the program’s content;

 

d.  The presenter’s name(s); and

 

e.  Duration of the program with the number of hours attributed to the program.

 

         (m)  All licensees shall submit, as required by Plc 308.04, all documented continuing professional education intended to be used toward the continuing professional education requirements required by Ac 403.01 and Ac 403.02.

 

Source.  #1972, eff 2-28-82; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5365, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6904, eff 12-4-98, EXPIRED: 12-4-06, EXPIRED:
12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #9200, eff 7-4-08; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

         Ac 403.03  Continuing Professional Education Audit Procedure.  The OPLC shall conduct audits as required by Plc 308.04(d) for compliance with Ac 403.01 and Ac 403.02.

 

Source.  #14322, eff 9-15-25, EXPIRES: 9-15-35

 

PART Ac 404  ONGOING REQUIREMENTS

 

         Ac 404.01  Change of Address.  All CPAs shall notify the OPLC in writing within 30 business days of a change in mailing address or e-mail address to ensure the OPLC has a current mailing and e-mail address.  Failure to provide a written notification of change of address shall not be exculpatory grounds for failing to respond to governing board or the OPLC inquiries or timelines and shall be grounds for disciplinary actions.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 404.02  CPA Outsourcing Disclosures to Clients.

 

         (a)  If a CPA is using a third-party provider to assist the CPA in providing any professional services to a client, the CPA shall provide a written disclosure of such outsourcing to the client.  Such written disclosure shall comply with (b) below.

 

         (b)  A disclosure required pursuant to (a) above shall be in a separate written statement of the services to be rendered by the third-party provider.  The statement shall provide the client with an opportunity to opt out and clear instructions on how to opt out.

 

         (c)  A CPA outsourcing professional services to a third-party provider shall be responsible for insuring a third-party provider is in compliance with all applicable rules of professional conduct and ethics in Ac 500.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 404.03  Retention of Client Records.

 

         (a)  A CPA shall return client records in their possession to the client upon request by the client or the client’s designated agent for their return. The records shall be returned immediately upon demand unless a delay is necessary in order to retrieve a closed file or to extract the CPA’s work papers described in (d) – (f) below. If the records cannot be returned immediately upon demand, the CPA shall immediately notify the client of the date by which the records will be returned. Nothing in this section shall require a CPA to pay delivery costs when the records are returned to the client.

 

         (b)  If the client is any form of a partnership, records shall be returned upon request by any of its general partners, its managing partner, or their designated agent. If the client is a corporation, records shall be returned upon request by its president. If the client is a limited liability company, records shall be returned upon request by the managing member. Joint records shall be returned upon request by any party.

 

         (c)  A CPA shall not retain a client’s records in order to force payment of any kind.

 

         (d)  Work papers shall be the CPA’s property and need not be surrendered to the client. If work papers contain data which should properly be reflected in the client’s books and records but have not been duplicated therein, copies of any such work papers shall be provided to the client.

 

         (e)  Work papers considered part of the client’s records shall include but not be limited to:

 

(1)  Worksheets in lieu of original entries, such as listings and distributions of cash receipts or cash disbursements on columnar work paper;

 

(2)  Worksheets in lieu of general ledger or subsidiary ledgers, such as accounts receivable, job cost and equipment ledgers, or similar types of depreciation records;

 

(3)  All adjusting and closing journal entries and supporting details not fully set forth in the journal entry;

 

(4)  Consolidating or combining journal entries worksheets and supporting detail used in arriving at final figures incorporated in an end product such as financial statements or tax returns;

 

(5)  Depreciation and amortization schedules; and

 

(6)  Cost basis calculation.

 

         (f)  Work papers developed by the CPA incident to the performance of an engagement which do not result in changes to the client’s records, or are not in themselves part of the records ordinarily maintained by such clients, shall be solely the CPA’s work papers and shall not be the property of the client.

 

         (g)  A CPA shall ensure that the work product and the work papers created in the performance of an engagement for a client are retained for a minimum of 5 years after creation unless the CPA is required by law to retain such records for a longer period.

 

Source.  #6904, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

PART Ac 405  PEER REVIEW

 

          Ac 405.01  Definitions.

 

         (a)  “Agreed-upon procedure” means a professional service whereby a CPA is engaged to issue a report of findings based on specific procedures performed on financial information prepared by or on behalf of the client, and for which attestation by the CPA is required pursuant to the agreement with the client.

 

         (b)  “Peer review” means “peer review” as defined in RSA 309-B:3, XII,  namely “a study, appraisal, or review of one or more aspects of the professional work of a person or firm that performs attest services, by a person or persons who hold certificates and who are not affiliated with the person or firm being reviewed.”

 

         (c)  “Peer review entity” means a peer review program administrator approved by the board.

 

         (d)  “Peer review program” means an independent review and analysis of the procedures and methodologies used by a firm in its provision of any of the services listed under Ac 405.02(a) for the purpose of determining compliance with generally accepted standards for such services and making recommendations to the firm for coming into compliance when gaps in compliance have been found.

 

Source.  #9051, eff 12-27-07; amd by #10054, eff 1-1-12; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 405.02  Peer Review Required.

 

         (a)  Each firm that provides any of the following services to the public shall participate in a peer review program:

 

(1)  Audits, whether financial, performance, or both;

 

(2)  Reviews of financial statements;

 

(3)  Compilations of financial statements; and

 

(4)  Agreed-upon procedures.

 

          (b)  No firm shall be required to participate in a peer review program until the firm agrees to undertake a report engagement for a service listed under (a) above.

 

(c)  A peer review shall be performed and reported in accordance with standards that are no less stringent than the “AICPA Peer Review Program Manual, Audit and Assurance”, version November 2024, available as noted in Appendix B.

 

         (d)  Within 30 days of first being engaged to provide any service listed under (a) above, a firm shall notify the OPLC in writing, and provide documentation of enrollment in a peer review program that meets the requirements of this part. Failure to comply with the peer review requirements of this part shall subject the firm to disciplinary action by board in accordance with RSA 309-B:10, I-a.

 

         (e)  Within 18 months of the year-end date of the report on engagement the firm first agrees to undertake a service listed under Ac 405.02(a), the firm shall undergo a peer review.

 

         (f)  Within 24 months of the year-end date of the report on the engagement the first agrees to undertake a service listed under Ac 405.02(a), the firm shall furnish to the board a peer review final acceptance letter.

 

         (g)  If a firm is unable to furnish a final acceptance letter within 24 months pursuant to (f) above due to being issued a report with a rating of pass with deficiency or deficiencies or fail, the firm shall, within the 24 month period, provide to the board an accept-provided-that letter, describing required follow-up actions and their due date, from the peer review entity.

 

         (h)  If the final letter of acceptance has not been issued as of the date the CPA firm files the firm registration form, the status of the peer review in process, as is within confidentiality requirements, shall be obtained from the peer review entity and submitted with the firm registration form.

 

         (i)  Any firm that receives a report with a rating of pass with deficiency or deficiencies or fail shall abide by the peer review entity’s required follow-up actions, including fulfilling such follow-up actions within the time frame established by the peer review entity, and subsequently obtain a final peer review acceptance letter from the peer review entity.

 

         (j)  A peer review shall not be considered by the board to be complete until the final letter of acceptance has been issued by the peer review entity. Such final letter of acceptance shall indicate the new due date of the firm’s next peer review.

 

         (k)  If the final letter of acceptance has not been issued as of the date the CPA firm files the firm registration form, it shall be submitted within 60 days of the date it is issued.

 

         (l)  Firms required to participate in a peer review program shall participate in and complete one of the following peer review programs:

 

(1)  AICPA National Peer Review Committee; or

 

(2)  AICPA Peer Review Program.

 

         (m)  Each firm required to participate in a peer review program shall continue participating in a peer review program until the firm or its successor in interest has, for a period of at least one year, outside of its peer review year, not engaged in any service listed in (a) above and does not intend to in the future.

 

         (n)  Subsequent peer reviews of a firm shall be due no later than 6 months from the end of the 3-year peer review period unless an extension is granted by the peer review program entity.

 

         (o)  If a firm is granted an extension of time to complete its peer review, the firm shall submit to the board a copy of the letter from the peer review entity that granted the extension.

 

Source.  #9051, eff 12-27-07; amd by #10054, eff 1-1-12; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

          Ac 405.03  Duties of Reviewer.

 

         (a)  A reviewer shall be independent with respect to the reviewed firm and comply with “Section 1000 Standards for Performing and Reporting on Peer Reviews,” as found in the “AICPA Peer Review Program Manual, Audit and Assurance”, version November 2024, available as noted in Appendix B.

 

         (b)  Information concerning the participating firm or its clients or personnel that is obtained as a consequence of the review shall be confidential and shall not be disclosed to anyone not involved in the peer review process.

 

Source.  #9051, eff 12-27-07; amd by #10054, eff 1-1-12; ss by #10746, eff 1-1-15; ss by #14322, eff 9-15-25, EXPIRES: 9-15-35

 

CHAPTER Ac 500  ETHICS

 

PART Ac 501 ACCOUNTABILITY

 

         Ac 501.01  Ethical Standards for All Professional Services.

 

         (a)  The ethical standards that follow shall apply to all professional services performed by a licensee in the practice of public accounting except that a licensee who is practicing outside the United States shall not be subject to discipline for departing from any of the rules stated herein as long as the licensee’s conduct is in accord with the rules of the organized accounting profession in the country in which they are practicing.

 

         (b)  Where a licensee’s name is associated with financial statements that require United States practices to be followed, the licensee shall comply with the requirements of Ac 504.01 and Ac 504.02.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

         Ac 501.02  Licensee Responsibility for Associates.  A licensee shall be held responsible for noncompliance with the rules by all persons associated with their practice of public accounting who are either under the licensee’s supervision or are the licensee’s partners or shareholders in the practice, if the licensee knew or should have known of such associated person’s failure to comply with the rules.

 

Source.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25 (formerly Ac 501.03)

 

         Ac 501.03  Applicability to Indirect Services.  A licensee shall not permit others to carry out on their behalf, either with or without compensation, acts which, if carried out by the licensee, would place the licensee in violation of the rules.

 

Source.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25 (formerly Ac 501.04)

 

PART Ac 502  INDEPENDENCE

 

         Ac 502.01  Opinion on Financial Statements.

 

         (a)  An accountant or a firm of which they are a partner, shareholder, or member shall not express an opinion on financial statements of an enterprise unless the accountant and the accountant’s firm are independent with respect to such enterprise.

 

         (b)  Instances where an accountant or their firm’s independence shall be considered impaired include, but are not limited to:

 

(1)  Periods of their professional engagement, or at the time of expressing their opinion, when the accountant or the accountant’s firm:

 

a.  Had or was committed to acquire any direct or material indirect financial interest in the enterprise;

 

b.  Was a trustee of any trust or executor or administrator of any estate if such trust or estate had or was committed to acquire any direct or material indirect financial interest in the enterprise;

 

c.  Had any joint closely-held business investment with the enterprise or any officer, director, or principal stockholder thereof which was material in relation to their or their firm’s net worth; or

 

d.  Had any loan to or from the enterprise or any officer, director, or principal stockholder thereof, except for the following loans from a financial institution when made under normal lending procedures, terms, and requirements:

 

1.  Loans obtained by an accountant or the firm which are not material in relation to the net worth of such borrower;

 

2.  Home mortgages; and

 

3.  Other secured loans, except loans guaranteed by an accountant’s firm which are otherwise unsecured; and

 

(2)  Periods covered by the financial statements, the time period of the professional engagement, or at the time of expressing an opinion, when the accountant or firm:

 

a.  Was connected with the enterprise as a promoter, underwriter or voting trustee, a director or officer, or in any capacity equivalent to that of an accountant of management or of an employee; or

 

b.  Was a trustee for any pension or profit-sharing trust of the enterprise.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

PART Ac 503  INDEPENDENCE, INTEGRITY, AND OBJECTIVITY

 

         Ac 503.01  Standards of Integrity and Objectivity.  In the performance of any professional service, a licensee shall:

 

         (a)  Maintain independence, objectivity, and integrity;

 

         (b)  Be free of conflicts of interest; and

 

         (c)  Not knowingly misrepresent facts or subordinate their judgment to others.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

PART Ac 504  GENERAL STANDARDS OF ACCOUNTING PRINCIPLES

 

         Ac 504.01  Professional Standards.

 

(a)  The board hereby adopts the principles, standards, and interpretations set forth in the December 15, 2014 and updated for all official releases through August 31, 2016, American Institute of Certified Public Accountants (AICPA) “Code of Professional Conduct” as available in Appendix B.

 

         (b)  Licensees shall comply with the standards and interpretations incorporated in (a) above.

 

         (c)  In addition to the standards incorporated in (a) above, licensees shall:

 

(1)  Undertake only those professional services that the licensee or the licensee’s firm can complete with professional competence;

 

(2)  Exercise due professional care in the performance of professional services;

 

(3)  Adequately plan and supervise the performance of professional services;

 

(4)  Obtain sufficient relevant data to afford a basis for conclusions or recommendations in relation to any professional services performed; and

 

(5)  Cooperate with investigations and requests for information from the board and the OPLC.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #13932, eff 6-22-24

 

         Ac 504.02  Accounting Principles.

 

         (a)  If financial statements or financial data contain any departure from an accounting principle contained in any professional standards incorporated in Ac 504.01 and adopted by the American Institute of Certified Public Accountants, the Financial Accounting Standards Board, or other globally recognized standard setting body that has a material effect on the statements or data taken as a whole, then a licensee shall not:

 

(1)  Express an opinion or state affirmatively that the financial statements or other financial data of any entity are presented in conformity with generally accepted accounting principles; or

 

(2)  State that they are not aware of any material modifications that should be made to such statements or data in order for them to be in conformity with generally accepted accounting principles.

 

         (b)  If, however, the statements or data contain such a departure and the licensee can demonstrate that due to unusual circumstances the financial statements or data would otherwise have been misleading, the licensee may comply with the rule by describing the departure, its approximate effects, if practicable, and the reasons why compliance with the principle would result in a misleading statement.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #13932, eff 6-22-24

 

PART Ac 505  CONFIDENTIAL CLIENT INFORMATION

 

         Ac 505.01  Disclosure of Confidential Information.

 

         (a)  A licensee in public practice shall not disclose any confidential client information without the specific consent of the client.

 

         (b)  The requirement in (a) above shall not:

 

(1)  Relieve a licensee of their professional obligations under Ac 504.01 and Ac 504.02;

 

(2)  Affect in any way the licensee’s obligation to comply with a validly issued and enforceable subpoena or summons, or prohibit a licensee’s compliance with applicable laws and government regulations;

 

(3)  Prohibit review of a licensee’s professional practice under American Institute of Certified Public Accountants or state certified public accountant (CPA) society or board of accountancy authorization; or

 

(4)  Preclude a licensee from initiating a complaint with, or responding to any inquiry made by, the professional ethics division or trial board of the Institute or a duly constituted investigative or disciplinary body of a state CPA society or board of accountancy.

 

         (c)  Licensees of any of the bodies identified in (b)(4) above and licensees involved with professional practice reviews identified in (b)(3) above shall not use to their own advantage or disclose any licensee’s confidential client information that comes to their attention in carrying out those activities.  This prohibition shall not restrict licensees’ exchange of information in connection with the investigative or disciplinary proceedings described in (b)(4) above or the professional practice reviews described in (b)(3) above.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

         Ac 505.02  Use of Third Party Service Providers.

 

         (a)  Before using a third party service provider, the licensee shall:

 

(1)  Enter into a binding, enforceable contractual agreement with the third-party service provider to maintain the confidentiality of the information; and

 

(2)  Receive reasonable assurances from the third-party service provider that it has appropriate procedures in place to prevent the unauthorized release of confidential information to others. 

 

         (b)  The nature and extent of procedures necessary to obtain reasonable assurance shall depend on the facts and circumstances, including the extent of publicly available information on the third party service provider’s controls and procedures to safeguard confidential client information.

 

         (c)  When a licensee has entered into a binding, enforceable contractual agreement with a third-party service provider, the licensee shall comply with Ac 404.02.  Such disclosure shall not relieve the licensee of their obligations under these rules.

 

         (d)  A licensee shall not be required to inform the client when the licensee contracts with or uses a third party service provider to provide administrative support service to the licensee.

 

         (e)  A licensee shall provide a written disclosure to the client that the licensee is using a third-party provider to assist the licensee in providing any professional services to the client, excluding (d) above.

 

         (f)  A licensee outsourcing professional services to a third-party provider shall be responsible for ensuring a third-party provider is and remains in compliance with all applicable provisions of Ac 500.

 

Source.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

PART Ac 506  CONTINGENT FEES

 

         Ac 506.01  Prohibition.

 

         (a)  A licensee in public practice shall not:

 

(1)  Perform, for a contingent fee, any professional services for, or receive such a fee from, a client for whom the licensee or the licensee’s firm performs:

 

a.  An audit or review of a financial statement;

 

b.  A compilation of a financial statement when the licensee’s compilation report does not disclose a lack of independence; or

 

c.  An examination of prospective financial information;

 

(2)  Under any circumstances receive a contingent fee for the preparation of an audit, review, or compiled financial statement; or

 

(3)  Prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client, subject to Ac 506.02 and (c) below.

 

         (b)  The prohibition in (a)(1) above shall apply during the period in which the licensee or the licensee’s firm is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in any such listed services.

 

         (c)  The prohibition in (a)(3) above shall not apply to a contingent fee for preparation of an amended return or claim for refund if the licensee has a reasonable expectation that the amended return or claim for refund will be subject of a substantive review by the taxing authority.

 

Source.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

         Ac 506.02 “Contingent fee” means a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service.  The term does not include fees fixed by courts or other public authorities, or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies.

 

Source.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

         Ac 506.03  Fees.  A licensee’s fees may vary depending on the complexity of services rendered.

 

Source.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

PART Ac 507  ETHICS IN ADVERTISING

 

         Ac 507.01  Advertising and Other Forms of Solicitation.  A licensee in public practice shall not seek to obtain clients by advertising or other forms of solicitation in a manner that is false, misleading, or deceptive.  Solicitation by the use of coercion, over-reaching, or harassing conduct shall be prohibited.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25

 

         Ac 507.02  Commissions.

 

         (a)  A licensee in public practice shall not for a commission recommend or refer to a client any product or service, or for a commission recommend or refer any product or service to be supplied by a client, or receive any other form of a commission when the licensee or the licensee’s firm also performs for that client:

 

(1)  An audit or review of a financial statement;

 

(2)  A compilation of a financial statement when the member expects, or reasonably might expect, that a third party will use the financial statement and the member’s compilation report does not disclose a lack of independence; or

 

(3)  An examination of prospective financial information.

 

         (b)  The prohibition in (a) above shall apply to the period in which the licensee is engaged to perform any of the services listed in (a)(1) – (3) above and to the period covered by any historical financial statements involved in such listed services.

 

         (c)  A licensee who is not prohibited by this section or RSA 309-B:14 from performing services for or receiving a commission and who is paid or expects to be paid a commission shall disclose that fact to any person or entity to whom the licensee recommends or refers a product or service to which the commission relates.

 

         (d)  This section shall not prohibit payments to individuals formerly engaged on the practice of public accounting, or payments to their heirs or estates.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25 (formerly Ac 507.03)

 

         Ac 507.03  Referral Fees.  Any licensee who accepts a referral fee for recommending or referring any service of a licensee to any person or entity or who pays a referral fee to obtain a client shall disclose such acceptance or payment to the client.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92, EXPIRED: 7-18-91

 

New.  #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

  New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25 (formerly Ac 507.04)

 

         Ac 507.04  Form of Practice and Name.  A licensee shall not practice public accounting under a firm name that is misleading.  Names of one or more past owners may be included in the firm name of a successor organization. An owner surviving the death or withdrawal of all other owners may continue to practice under a name which includes the name of past owners for up to 2 years after becoming a sole practitioner.

 

Source.  #1663, eff 12-17-80; ss by #2475, eff 9-13-83; ss by #3061, eff 7-18-85, EXPIRED: 7-18-91

 

New.  #5366, eff 3-27-92; ss by #6721, INTERIM, eff 3-27-98, EXPIRED: 7-25-98

 

New.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25 (formerly Ac 507.05)

 

         Ac 507.05  Registered Investment Advisors.

 

         (a)  A registered investment advisor shall not be deemed an incompatible occupation with that of a certified public accountant or a public accountant (PA).

 

         (b)  CPAs and PAs who are registered investment advisors may be compensated on an hourly rate, fixed rate, or as a percentage of assets under management.  However, CPAs and PAs shall not receive or accept commissions.  A CPA or PA who simultaneously practices as a registered investment advisor shall be subject to the standards of independence contained in Ac 502.

 

Source.  #6905, eff 12-4-98, EXPIRED: 12-4-06

 

New.  #8810, INTERIM, eff 1-25-07, EXPIRED: 7-25-07

 

New.  #9051, eff 12-27-07; ss by #10746, eff 1-1-15; ss by #14188, eff 4-5-25 (formerly Ac 507.06)

 


APPENDIX A

 

Rule

Specific State Statute which the Rule Implements

Ac 101

RSA 309-B:1; RSA 309-B:2

Ac 102

RSA 309-B:3

Ac 102.01

RSA 541-A:16, I(a); RSA-B:3, I

Ac 102.02

RSA 309-B:3

Ac 102.06

RSA 309-B:3

Ac 103

RSA 309-B:4, I, II;RSA 309-B:VIII(a) – (i); RSA 91-A:2, II; RSA 541-A:16, I (a)

Ac 103.05

RSA 309-B:4, I, II; RSA 309-B:4, VIII(a)–(i);

Ac 103.06

RSA 91-A:2, II; RSA 541-A:16, I(a)

Ac 104

RSA 91-A:4, II(d); RSA 91-A:4, IV; RSA 541-A:16, I (a)

Ac 104.04

RSA 91-A:4, II(d); RSA 91-A:4, IV; RSA 541-A:16, I(a)

Ac 105

RSA 541-A:16, I(a); RSA 309-B:4, II (b)

Ac 106

RSA 309-B:4, VI

 

 

Ac 201.01

RSA 541-A:16, I(b)-(d)

Ac 201.02

RSA 541-A:16, I(b); RSA 310:6, II

 

 

Ac 301.01

RSA 309-B:4, VI(c); RSA 309-B:5, I and II; RSA 309-B:8, III(b)(2)

Ac 302.01

RSA 541-A:16, I(b)

Ac 302.02

RSA 309-B:5, I; RSA 309-B:7, I II, VI; RSA 541-A:16, I(b);

Ac 302.03

RSA 309-B:5; RSA 309-B:7, I, II, VI

Ac 302.04

RSA 309-B:5; RSA 309-B:7, I, II, VI

Ac 302.05

RSA 309-B:8, I; RSA 541-A:16, I(b)

Ac 302.06

RSA 309-B:8, I, VI; RSA 541-A:16, I(b)

Ac 302.07

RSA 309-B:8, I, VI; RSA 541-A:16, I(b)

Ac 302.08

RSA 310:14, I

Ac 303.01

RSA 309-B:5, II, III, IV, V, VI, IX, X

Ac 303.02

RSA 309-B:5, III, IX, X; RSA 309-B:7

Ac 303.03

RSA 309-B:5, III; RSA 309-B:7

Ac 303.04

RSA 309-B:5, I, IX; RSA 309-B:7

Ac 303.05

RSA 309-B:8

Ac 304.01

RSA 309-B:5, V

Ac 305.01

RSA 541-A:16, I(b)

 

 

Ac 401.01

RSA 541-A:7; RSA 541-A:16, I(b); RSA 541-A:8

Ac 401.02

RSA 541-A:7; RSA 541-A:16, I(b); RSA 541-A:8

Ac 401.03

RSA 309-B:7, II; RSA 309-B:8, II; RSA 310:8

Ac 401.04

RSA 309-B:7, II

Ac 401.05

RSA 309-B:4, VI(c); RSA 309-B:7, III; RSA 309-B:7, VII

Ac 401.06

RSA 309-B:7, VII

Ac 401.07

RSA 309-B:7, VII; RSA 161-B:11, VI-a

Ac 401.08 (repeal)

RSA 309-B:6

Ac 401.08

RSA 309-B:4, III; RSA 309-B:13

Ac 402.01

RSA 309-B:10; RSA 309-B:14

Ac 402.02

RSA 309-B:16; RSA 309-B:17; RSA 310:12

Ac 402.03 (repeal)

RSA 309-B:10

Ac 402.03

RSA 309-B:17; RSA 541-A:30, III

Ac 402.04 (repeal)

RSA 309-B:10

Ac 402.04

RSA 309-B:16

Ac 402.05 (repeal)

RSA 309-B:10

Ac 402.05

RSA 409-B:16

Ac 402.06

RSA 309-B:4, VI(h)

Ac 402.07 (repeal)

RSA 309-B:4

Ac 403.01

RSA 309-B:4, VI(c); RSA 309-B:7, III; RSA 309-B:7, VII

Ac 403.02

RSA 309-B:4, VI(c); RSA 309-B:7, III; RSA 309-B:7, VII

Ac 403.03

RSA 309-B:4, VI(c); RSA 309-B:7, III; RSA 309-B:7, VII

Ac 404.01

RSA 541-A:16, I(b)

Ac 404.02

RSA 309-B:4, VI(j)

Ac 404.03

RSA 309-B:19

Ac 405.01

RSA 541-A:16, I(b)

Ac 405.02

RSA 309-B:4, VI(g); RSA 309-B:8; RSA 309-B:18; RSA 309-B:19, I

Ac 405.03

RSA 309-B:4, VI(g), RSA 309-B:7

 

 

Ac 501

RSA 309-B:4, VI(d)

Ac 502

RSA 309-B:14, VIII

Ac 503

RSA 309-B:4, VI(d); RSA 309-B:14, XIII

Ac 504.01

RSA 309-B:5, X(c);

Ac 504.02

RSA 309-B:5, X(c)

Ac 505

RSA 309-B:8, VIII(d); RSA 309-B:18

Ac 506

RSA 309-B:14, XIV

Ac 507

RSA 309-B:4, VI(d)

 


APPENDIX B: Incorporation by Reference Information

 

Rule

Title

Obtain at:

Ac 402.02

AICPA Peer Review Program Manual, Audit and Assurance, version November 2024

American Institute of Certified Public Accountants

1211 Avenue of the Americas

New York, New York 10036

 

Phone: 1(212) 596-6200

 

Available online at: https://www.aicpa-cima.com/cpe-learning/publication/aicpa-peer-review-program-manual-OPL

 

Cost:  Members of the AICPA or CIMA $335.00

          Nonmembers $415.00

Ac 405.02(c)

 

and

 

Ac 405.03(a)

 

 

 

 

 

 

 

 

 

Ac 504.01

AICPA Peer Review Program Manual, Audit and Assurance, version November 2024

 

 

 

 

 

 

 

 

 

 

 

 

AICPA Code of Professional Conduct, Effective December 15, 2014 and updated for all official releases through August 31, 2016

American Institute of Certified Public Accountants

1211 Avenue of the Americas

New York, New York 10036

 

Phone: 1(212) 596-6200

 

Available online at: https://www.aicpa-cima.com/cpe-learning/publication/aicpa-peer-review-program-manual-OPL

 

Cost:  Members of the AICPA or CIMA $335.00

          Nonmembers $415.00

 

 

American Institute of Certified Public Accountants,

 

Telephone (888) 777-7077

Downloadable version is free online at

https://us.aicpa.org/content/dam/aicpa/research/standards/codeofconduct/downloadabledocuments/2014december15contentasof2016august31codeofconduct.pdf