Missouri Revised Statutes
Chapter 326
Accountants
←326.286
Section 326.289.1
326.292→
August 28, 2015
Issuance and renewal of permits, procedure.
326.289. 1. The board may grant or renew permits to practice as a
certified public accounting firm to applicants that demonstrate their
qualifications in accordance with this chapter.
(1) The following shall hold a permit issued under this chapter:
(a) Any firm with an office in this state, as defined by the board by
rule, performing attest services;
(b) Any firm with an office in this state that uses the title "CPA" or
"CPA firm"; and
(c) Any firm that does not have an office in this state performing
attest services for a client having a home office in this state.
(2) A firm which does not have an office in this state may perform
compilation and review services for a client having a home office in this
state and may use the title "CPA" or "CPA firm" without a permit issued under
this section only if it:
(a) Has the qualifications described in subsections 4 and 9 of this
section; and
(b) Performs such services through an individual with the privilege to
practice under subsection 1 of section 326.283.
(3) A firm which is not subject to the requirements of subdivisions (1)
or (2) of this subsection may perform other professional services while using
the title "CPA" or "CPA firm" in this state without a permit issued under
this section only if it:
(a) Has qualifications described in subsection 4 of this section;
(b) Performs such services through an individual with the privilege to
practice under section 326.283; and
(c) Can lawfully do so in the state where said individual with privilege
to practice has his or her principal place of business.
2. Permits shall be initially issued and renewed for periods of not more
than three years or for a specific period as prescribed by board rule
following issuance or renewal.
3. The board shall determine by rule the form for application and renewal
of permits and shall annually determine the fees for permits and their
renewals.
4. An applicant for initial issuance or renewal of a permit to practice
under this section shall be required to show that:
(1) A simple majority of the ownership of the firm, in terms of
financial interests and voting rights of all partners, officers, principals,
shareholders, members or managers, belongs to licensees who are licensed in
some state, and the partners, officers, principals, shareholders, members or
managers, whose principal place of business is in this state and who perform
professional services in this state are licensees under section 326.280 or
the corresponding provision of prior law. Although firms may include
nonlicensee owners, the firm and its ownership shall comply with rules
promulgated by the board;
(2) Any certified public accounting firm may include owners who are not
licensees provided that:
(a) The firm designates a licensee of this state, or in the case of a
firm which must have a permit under this section designates a licensee of
another state who meets the requirements of section 326.283, who is
responsible for the proper registration of the firm and identifies that
individual to the board;
(b) All nonlicensee owners are active individual participants in the
certified public accounting firm or affiliated entities;
(c) All owners are of good moral character; and
(d) The firm complies with other requirements as the board may impose by
rule;
(3) Any licensee, initially licensed on or after August 28, 2001, who is
responsible for supervising attest services, or signs or authorizes someone
to sign the licensee's report on the financial statements on behalf of the
firm, shall meet competency requirements as determined by the board by rule
which shall include one year of experience in addition to the experience
required under subdivision (6) of subsection 1 of section 326.280 and shall
be verified by a licensee. The additional experience required by this
subsection shall include experience in attest work supervised by a licensee;
(4) Any licensee who is responsible for supervising review services or
signs or authorizes someone to sign review reports shall meet the competency
requirements as determined by board by rule which shall include experience in
review services.
5. An applicant for initial issuance or renewal of a permit to practice
shall register each office of the firm within this state with the board and
show that all attest, review and compilation services rendered in this state
are under the charge of a licensee.
6. No licensee or firm holding a permit under this chapter shall use a
professional or firm name or designation that is misleading as to:
(1) The legal form of the firm;
(2) The persons who are partners, officers, members, managers or
shareholders of the firm; or
(3) Any other matter.
The names of one or more former partners, members or shareholders may be
included in the name of a firm or its successor unless the firm becomes a
sole proprietorship because of the death or withdrawal of all other partners,
officers, members or shareholders. A firm may use a fictitious name if the
fictitious name is registered with the board and is not otherwise misleading.
The name of a firm shall not include the name or initials of an individual
who is not a present or a past partner, member or shareholder of the firm or
its predecessor. The name of the firm shall not include the name of an
individual who is not a licensee.
7. Applicants for initial issuance or renewal of permits shall list in
their application all states in which they have applied for or hold permits
as certified public accounting firms and list any past denial, revocation,
suspension or any discipline of a permit by any other state. Each holder of
or applicant for a permit under this section shall notify the board in
writing within thirty days after its occurrence of any change in the
identities of partners, principals, officers, shareholders, members or
managers whose principal place of business is in this state; any change in the
number or location of offices within this state; any change in the identity
of the persons in charge of such offices; and any issuance, denial,
revocation, suspension or any discipline of a permit by any other state.
8. Firms which fall out of compliance with the provisions of this section
due to changes in firm ownership or personnel after receiving or renewing a
permit shall take corrective action to bring the firm back into compliance as
quickly as possible. The board may grant a reasonable period of time for a
firm to take such corrective action. Failure to bring the firm back into
compliance within a reasonable period as defined by the board may result in
the suspension or revocation of the firm permit.
9. The board shall require by rule, as a condition to the renewal of
permits, that firms undergo, no more frequently than once every three years,
peer reviews conducted in a manner as the board shall specify. The review
shall include a verification that individuals in the firm who are responsible
for supervising attest, review and compilation services or sign or authorize
someone to sign the accountant's report on the financial statements on behalf
of the firm meet the competency requirements set out in the professional
standards for such services, provided that any such rule:
(1) Shall include reasonable provision for compliance by a firm showing
that it has within the preceding three years undergone a peer review that is
a satisfactory equivalent to peer review generally required under this
subsection;
(2) May require, with respect to peer reviews, that peer reviews be
subject to oversight by an oversight body established or sanctioned by board
rule, which shall periodically report to the board on the effectiveness of the
review program under its charge and provide to the board a listing of firms
that have participated in a peer review program that is satisfactory to the
board; and
(3) Shall require, with respect to peer reviews, that the peer review
processes be operated and documents maintained in a manner designed to
preserve confidentiality, and that the board or any third party other than
the oversight body shall not have access to documents furnished or generated
in the course of the peer review of the firm except as provided in subdivision
(2) of this subsection.
10. Prior to January 1, 2008, licensees who perform fewer than three
attest services during each calendar year shall be exempt from the
requirements of subsection 9 of this section.
11. The board may, by rule, charge a fee for oversight of peer reviews,
provided that the fee charged shall be substantially equivalent to the cost
of oversight.
12. In connection with proceedings before the board or upon receipt of a
complaint involving the licensee performing peer reviews, the board shall not
have access to any documents furnished or generated in the course of the
performance of the peer reviews except for peer review reports, letters of
comment and summary review memoranda. The documents shall be furnished to
the board only in a redacted manner that does not specifically identify any
firm or licensee being peer reviewed or any of their clients.
13. The peer review processes shall be operated and the documents
generated thereby be maintained in a manner designed to preserve their
confidentiality. No third party, other than the oversight body, the board,
subject to the provisions of subsection 12 of this section, or the
organization performing peer review shall have access to documents furnished
or generated in the course of the review. All documents shall be privileged
and closed records for all purposes and all meetings at which the documents
are discussed shall be considered closed meetings under subdivision (1) of
section 610.021. The proceedings, records and workpapers of the board and any
peer review subjected to the board process shall be privileged and shall not
be subject to discovery, subpoena or other means of legal process or
introduction into evidence at any civil action, arbitration, administrative
proceeding or board proceeding. No member of the board or person who is
involved in the peer review process shall be permitted or required to testify
in any civil action, arbitration, administrative proceeding or board
proceeding as to any matters produced, presented, disclosed or discussed
during or in connection with the peer review process or as to any findings,
recommendations, evaluations, opinions or other actions of such committees or
any of its members; provided, however, that information, documents or records
that are publicly available shall not be subject to discovery or use in any
civil action, arbitration, administrative proceeding or board proceeding
merely because they were presented or considered in connection with the peer
review process.
(L. 2001 H.B. 567, A.L. 2002 H.B. 1600, A.L. 2008 S.B. 788)
2002
2001
2002
326.289. 1. The board may grant or renew permits to practice as a
certified public accounting firm to entities that make application and
demonstrate their qualifications in accordance with this section or to
certified public accounting firms originally licensed in another state that
establish an office in this state. A firm shall hold a permit issued
pursuant to this section to provide attest, review or compilation services
or to use the title certified public accountant or certified public
accounting firm.
2. Permits shall be initially issued and renewed for periods of not
more than three years or for a specific period as prescribed by board rule
following issuance or renewal.
3. The board shall determine by rule the form for application and
renewal of permits and shall annually determine the fees for permits and
their renewals.
4. An applicant for initial issuance or renewal of a permit to
practice pursuant to this section shall be required to show that:
(1) Notwithstanding any other provision of law to the contrary, a
simple majority of the ownership of the firm, in terms of financial
interests and voting rights of all partners, officers, principals,
shareholders, members or managers, belongs to licensees who are licensed in
some state, and the partners, officers, principals, shareholders, members
or managers, whose principal place of business is in this state and who
perform professional services in this state are licensees pursuant to
section 326.280 or the corresponding provision of prior law. Although
firms may include nonlicensee owners, the firm and its ownership shall
comply with rules promulgated by the board;
(2) Any certified public accounting firm may include owners who are
not licensees, provided that:
(a) The firm designates a licensee of this state who is responsible
for the proper registration of the firm and identifies that individual to
the board;
(b) All nonlicensee owners are active individual participants in the
certified public accounting firm or affiliated entities;
(c) The firm complies with other requirements as the board may impose
by rule;
(3) Any licensee, initially licensed on or after August 28, 2001, who
is responsible for supervising attest services, or signs or authorizes
someone to sign the licensee's report on the financial statements on behalf
of the firm, shall meet competency requirements as determined by the board
by rule which shall include one year of experience in addition to the
experience required pursuant to subdivision (6) of subsection 1 of section
326.280 and shall be verified by a licensee. The additional experience
required by this subsection shall include experience in attest work
supervised by a licensee;
(4) Any licensee who is responsible for supervising review services
or signs or authorizes someone to sign review reports shall meet the
competency requirements as determined by board by rule which shall include
experience in review services.
5. An applicant for initial issuance or renewal of a permit to
practice shall register each office of the firm within this state with the
board and show that all attest, review and compilation services rendered in
this state are under the charge of a licensee.
6. No licensee or firm holding a permit pursuant to this chapter
shall use a professional or firm name or designation that is misleading as
to:
(1) The legal form of the firm;
(2) The persons who are partners, officers, members, managers or
shareholders of the firm; or
(3) Any other matter.
The names of one or more former partners, members or shareholders may be
included in the name of a firm or its successor unless the firm becomes a
sole proprietorship because of the death or withdrawal of all other
partners, officers, members or shareholders. A firm may use a fictitious
name if the fictitious name is registered with the board and is not
otherwise misleading. The name of a firm shall not include the name or
initials of an individual who is not a present or a past partner, member or
shareholder of the firm or its predecessor. The name of the firm shall not
include the name of an individual who is not a licensee.
7. Applicants for initial issuance or renewal of permits shall list
in their application all states in which they have applied for or hold
permits as certified public accounting firms and list any past denial,
revocation, suspension or any discipline of a permit by any other state.
Each holder of or applicant for a permit pursuant to this section shall
notify the board in writing within thirty days after its occurrence of any
change in the identities of partners, principals, officers, shareholders,
members or managers whose principal place of business is in this state; any
change in the number or location of offices within this state; any change
in the identity of the persons in charge of such offices; and any issuance,
denial, revocation, suspension or any discipline of a permit by any other
state.
8. Firms which fall out of compliance with the provisions of this
section due to changes in firm ownership or personnel after receiving or
renewing a permit shall take corrective action to bring the firm back into
compliance as quickly as possible. The board may grant a reasonable period
of time for a firm to take such corrective action. Failure to bring the
firm back into compliance within a reasonable period as defined by the
board may result in the suspension or revocation of the firm permit.
9. The board shall require by rule, as a condition to the renewal of
permits, that firms undergo, no more frequently than once every three
years, peer reviews conducted in a manner as the board shall specify. The
review shall include a verification that individuals in the firm who are
responsible for supervising attest, review and compilation services or sign
or authorize someone to sign the accountant's report on the financial
statements on behalf of the firm meet the competency requirements set out
in the professional standards for such services, provided that any such
rule:
(1) Shall include reasonable provision for compliance by a firm
showing that it has within the preceding three years undergone a peer
review that is a satisfactory equivalent to peer review generally required
pursuant to this subsection;
(2) May require, with respect to peer reviews, that peer reviews be
subject to oversight by an oversight body established or sanctioned by
board rule, which shall periodically report to the board on the
effectiveness of the review program under its charge and provide to the
board a listing of firms that have participated in a peer review program
that is satisfactory to the board; and
(3) Shall require, with respect to peer reviews, that the peer review
processes be operated and documents maintained in a manner designed to
preserve confidentiality, and that the board or any third party other than
the oversight body shall not have access to documents furnished or
generated in the course of the peer review of the firm except as provided
in subdivision (2) of this subsection.
10. Prior to January 1, 2008, licensees who perform fewer than three
attest services during each calendar year shall be exempt from the
requirements of subsection 9 of this section.
11. The board may, by rule, charge a fee for oversight of peer
reviews, provided that the fee charged shall be substantially equivalent to
the cost of oversight.
12. In connection with proceedings before the board or upon receipt
of a complaint involving the licensee performing peer reviews, the board
shall not have access to any documents furnished or generated in the course
of the performance of the peer reviews except for peer review reports,
letters of comment and summary review memoranda. The documents shall be
furnished to the board only in a redacted manner that does not specifically
identify any firm or licensee being peer reviewed or any of their clients.
13. The peer review processes shall be operated and the documents
generated thereby be maintained in a manner designed to preserve their
confidentiality. No third party, other than the oversight body, the board,
subject to the provisions of subsection 12 of this section, or the
organization performing peer review shall have access to documents
furnished or generated in the course of the review. All documents shall be
privileged and closed records for all purposes and all meetings at which
the documents are discussed shall be considered closed meetings pursuant to
subdivision (1) of section 610.021, RSMo. The proceedings, records and
workpapers of the board and any peer review subjected to the board process
shall be privileged and shall not be subject to discovery, subpoena or
other means of legal process or introduction into evidence at any civil
action, arbitration, administrative proceeding or board proceeding. No
member of the board or person who is involved in the peer review process
shall be permitted or required to testify in any civil action, arbitration,
administrative proceeding or board proceeding as to any matters produced,
presented, disclosed or discussed during or in connection with the peer
review process or as to any findings, recommendations, evaluations,
opinions or other actions of such committees or any of its members;
provided, however, that information, documents or records that are publicly
available shall not be subject to discovery or use in any civil action,
arbitration, administrative proceeding or board proceeding merely because
they were presented or considered in connection with the peer review
process.
2001
326.289. 1. The board may grant or renew permits to practice as a
certified public accounting firm to entities that make application and
demonstrate their qualifications in accordance with this section or to
certified public accounting firms originally licensed in another state that
establish an office in this state. A firm shall hold a permit issued
pursuant to this section to provide attest, review or compilation services
or to use the title certified public accountant or certified public
accounting firm.
2. Permits shall be initially issued and renewed for periods of not
more than three years or for a specific period as prescribed by board rule
following issuance or renewal.
3. The board shall determine by rule the form for application and
renewal of permits and shall annually determine the fees for permits and
their renewals.
4. An applicant for initial issuance or renewal of a permit to
practice pursuant to this section shall be required to show that:
(1) Notwithstanding any other provision of law to the contrary, a
simple majority of the ownership of the firm, in terms of financial
interests and voting rights of all partners, officers, principals,
shareholders, members or managers, belongs to licensees who are licensed in
some state, and the partners, officers, principals, shareholders, members
or managers, whose principal place of business is in this state and who
perform professional services in this state are licensees pursuant to
section 326.280 or the corresponding provision of prior law. Although
firms may include nonlicensee owners, the firm and its ownership shall
comply with rules promulgated by the board;
(2) Any certified public accounting firm may include owners who are
not licensees, provided that:
(a) The firm designates a licensee of this state who is responsible
for the proper registration of the firm and identifies that individual to
the board;
(b) All nonlicensee owners are active individual participants in the
certified public accounting firm or affiliated entities;
(c) The firm complies with other requirements as the board may impose
by rule;
(3) Any licensee who is responsible for supervising attest, review or
compilation services, or signs or authorizes someone to sign the licensee's
report on the financial statements on behalf of the firm, shall meet
competency requirements as determined by the board by rule which shall
include one year of experience in addition to the experience required
pursuant to subdivision (6) of subsection 1 of section 326.280 and shall be
verified by a licensee. The additional experience required by this
subsection shall include experience in attest work supervised by a
licensee.
5. An applicant for initial issuance or renewal of a permit to
practice shall register each office of the firm within this state with the
board and show that all attest, review and compilation services rendered in
this state are under the charge of a licensee.
6. No licensee or firm holding a permit pursuant to this chapter
shall use a professional or firm name or designation that is misleading as
to:
(1) The legal form of the firm;
(2) The persons who are partners, officers, members, managers or
shareholders of the firm; or
(3) Any other matter.
The names of one or more former partners, members or shareholders may be
included in the name of a firm or its successor unless the firm becomes a
sole proprietorship because of the death or withdrawal of all other
partners, officers, members or shareholders. A firm may use a fictitious
name if the fictitious name is registered with the board and is not
otherwise misleading. The name of a firm shall not include the name of an
individual who is a present or a past partner, member or shareholder of the
firm or its predecessor. The name of the firm shall not include the name
of an individual who is not a licensee.
7. Applicants for initial issuance or renewal of permits shall list
in their application all states in which they have applied for or hold
permits as certified public accounting firms and list any past denial,
revocation, suspension or any discipline of a permit by any other state.
Each holder of or applicant for a permit pursuant to this section shall
notify the board in writing within thirty days after its occurrence of any
change in the identities of partners, principals, officers, shareholders,
members or managers whose principal place of business is in this state; any
change in the number or location of offices within this state; any change
in the identity of the persons in charge of such offices; and any issuance,
denial, revocation, suspension or any discipline of a permit by any other
state.
8. Firms which fall out of compliance with the provisions of this
section due to changes in firm ownership or personnel after receiving or
renewing a permit shall take corrective action to bring the firm back into
compliance as quickly as possible. The board may grant a reasonable
period of time for a firm to take such corrective action. Failure to bring
the firm back into compliance within a reasonable period as defined by the
board may result in the suspension or revocation of the firm permit.
9. The board shall require by rule, as a condition to the renewal of
permits, that firms undergo, no more frequently than once every three
years, peer reviews conducted in a manner as the board shall specify. The
review shall include a verification that individuals in the firm who are
responsible for supervising attest, review and compilation services or sign
or authorize someone to sign the accountant's report on the financial
statements on behalf of the firm meet the competency requirements set out
in the professional standards for such services, provided that any such
rule:
(1) Shall include reasonable provision for compliance by a firm
showing that it has within the preceding three years undergone a peer
review that is a satisfactory equivalent to peer review generally required
pursuant to this subsection;
(2) May require, with respect to peer reviews, that peer reviews be
subject to oversight by an oversight body established or sanctioned by
board rule, which shall periodically report to the board on the
effectiveness of the review program under its charge and provide to the
board a listing of firms that have participated in a peer review program
that is satisfactory to the board; and
(3) Shall require, with respect to peer reviews, that the peer review
processes be operated and documents maintained in a manner designed to
preserve confidentiality, and that the board or any third party other than
the oversight body shall not have access to documents furnished or
generated in the course of the peer review of the firm except as provided
in subdivision (2) of this subsection.
10. Prior to January 1, 2008, licensees who perform fewer than three
attest services during each calendar year shall be exempt from the
requirements of subsection 9 of this section.
11. The board may, by rule, charge a fee for oversight of peer
reviews, provided that the fee charged shall be substantially equivalent to
the cost of oversight.
12. In connection with proceedings before the board or upon receipt
of a complaint involving the licensee performing peer reviews, the board
shall not have access to any documents furnished or generated in the course
of the performance of the peer reviews except for peer review reports,
letters of comment and summary review memoranda. The documents shall be
furnished to the board only in a redacted manner that does not specifically
identify any firm or licensee being peer reviewed or any of their clients.
13. The peer review processes shall be operated and the documents
generated thereby be maintained in a manner designed to preserve their
confidentiality. No third party, other than the oversight body, the board,
subject to the provisions of subsection 12 of this section, or the
organization performing peer review shall have access to documents
furnished or generated in the course of the review. All documents shall be
privileged and closed records for all purposes and all meetings at which
the documents are discussed shall be considered closed meetings pursuant to
subdivision (1) of section 610.021, RSMo. The proceedings, records and
workpapers of the board and any peer review subjected to the board process
shall be privileged and shall not be subject to discovery, subpoena or
other means of legal process or introduction into evidence at any civil
action, arbitration, administrative proceeding or board proceeding. No
member of the board or person who is involved in the peer review process
shall be permitted or required to testify in any civil action, arbitration,
administrative proceeding or board proceeding as to any matters produced,
presented, disclosed or discussed during or in connection with the peer
review process or as to any findings, recommendations, evaluations,
opinions or other actions of such committees or any of its members;
provided, however, that information, documents or records that are publicly
available shall not be subject to discovery or use in any civil action,
arbitration, administrative proceeding or board proceeding merely because
they were presented or considered in connection with the peer review
process.
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