NAC: CHAPTER 628 - ACCOUNTANTS

[Rev. 9/10/2019 10:48:18 AM]

[NAC-628 Revised Date: 8-19]

CHAPTER 628 - ACCOUNTANTS

GENERAL PROVISIONS

628.010              Definitions.

628.015              Committees of Board.

628.016              Fees of Board.

CERTIFICATION

628.019              Investigation of criminal history; submission of fingerprints.

628.020              Examinations: Eligibility; applications; locations; additional prerequisites; fee; failure to appear; notice of acceptance.

628.030              Examinations: Requirements.

628.040              Examinations: Passing grades; conditional credit; extension of time due to personal hardship.

628.055              Requirements for education; conversion to semester hours.

628.060              Requirements for experience: General requirements; request for independent evaluation of experience by Board; verification and recordkeeping requirements.

628.070              Certificate by reciprocity.

628.080              Waiver of examination; submission of proof of continuing education.

628.100              Notification of change of address, electronic mail address, telephone number or other contact information.

628.110              Placement on retired or inactive status; ineligibility; reinstatement; new application after voluntary surrender or revocation.

REGISTRATION OF FIRMS

628.130              Applications; approval or disapproval.

628.140              Name of firm.

628.150              Affiliations of firms.

628.160              Transfer of interest in firm of practitioner who has died, become legally incompetent or is disqualified from practice.

628.180              Reports of firm.

628.190              Renewal of permit and registration.

CONTINUING EDUCATION

628.210              Prerequisites to renewal of permit; exemption; waiver.

628.220              Standards for qualifying programs.

628.230              Acceptable programs and subjects.

628.240              Determination and allowance of credit.

628.250              Application for renewal of permit; maintenance of records; action by Board.

628.430              Complaints issued by Board; notice of hearing; examination of documents. [Replaced in revision by NAC 628.895.]

628.440              Conduct of hearing. [Replaced in revision by NAC 628.900.]

628.450              Publication of decisions. [Replaced in revision by NAC 628.975.]

UNLAWFUL PRACTICE

628.460              Certificate and permit required.

STANDARDS OF PRACTICE

628.500              Adoption by reference of Code of Professional Conduct; exceptions; availability; periodic review.

628.510              Applicability.

628.520              Reporting of certain occurrences to Board.

PROGRAM TO MONITOR QUALITY OF FINANCIAL REPORTING

628.550              Definitions.

628.555              “Evaluation” defined.

628.560              “Practice-monitoring documents” defined.

628.565              “Practice-monitoring program” defined.

628.567              “Sponsoring organization” defined.

628.570              “Transmittal form” defined.

628.572              Peer review oversight committee: Establishment; composition and qualifications of members; powers and duties; confidentiality of information obtained during oversight activities.

628.573              Regional peer review oversight committee: Participation by Board; functions.

628.575              Cycle for review of reports; notification of practitioners.

628.580              Required enrollment in program; submission and verification of practice-monitoring documents; exempt practitioners; required participation in national uniform system.

628.585              Deficient or marginal practice-monitoring documents; refusal to comply with determinations in practice-monitoring documents.

628.590              Confidentiality.

PRACTICE BEFORE THE BOARD

628.850              Definitions.

628.855              “Contested case” defined.

628.860              “License” defined.

628.865              “Licensee” defined.

628.870              “Prosecutor” defined.

628.875              “Records” defined.

628.880              “Conduct discreditable to the profession of public accounting or which reflects adversely upon the fitness of the person to engage in the practice of public accounting” interpreted.

628.885              “Suspension, revocation or placing on probation of the right to practice before any state or federal agency” interpreted.

628.890              Election of Board to follow provisions of NRS 622A.150.

628.895              Complaints issued by Board; requirements for notice of hearing; examination of documents; service of certain documents.

628.900              Conduct of hearing.

628.905              Rules of procedure and evidence; burden of proof.

628.910              Notice of governing provisions; findings and recommendations; consolidation of cases.

628.915              Appearance; representation by attorney; standards of conduct; withdrawal from representation; sanctions; costs of defense.

628.920              Answer; amendment of complaint; continuance; inclusion of pleadings in record.

628.925              Discovery; limitations on interrogatories and depositions.

628.930              Meeting or conference of parties before hearing.

628.935              Prehearing conference.

628.940              Motions.

628.945              Posthearing motions; rehearing and reconsideration; vacation and modification of final decision.

628.950              Limitations on communications with Board, hearing panel or hearing officer.

628.955              Stipulations.

628.960              Effect of failure to appear.

628.965              Judicial review.

628.970              Requirements in cases involving revocation of license; procedure for issuance of license.

628.975              Publication of decisions.

 

 

GENERAL PROVISIONS

     NAC 628.010  Definitions. (NRS 628.120)  As used in this chapter, unless the context otherwise requires:

     1.  “Board” means the Nevada State Board of Accountancy.

     2.  “Firm” means any partnership, corporation, limited-liability company or sole proprietorship.

     3.  “Practice privileges” means the privileges granted a natural person in accordance with the provisions of NRS 628.315.

     4.  “Practitioner” means:

     (a) A certified public accountant or firm of certified public accountants licensed or registered by the Board to engage in the practice of public accounting;

     (b) A certified public accountant who does not hold a live permit and does not have a registered office or residence in this State, but has been granted practice privileges pursuant to NRS 628.315 or 628.335; or

     (c) A firm of certified public accountants that does not have an office in this State, but is registered with the Board pursuant to NRS 628.335.

     [Bd. of Accountancy, Art. 1 § 1, eff. 5-13-82] — (NAC A 12-13-96; R046-13, 12-23-2013)

     NAC 628.015  Committees of Board. (NRS 628.120, 628.160, 628.170)  

     1.  The Board will establish standing or temporary committees as it deems necessary. Except for the deliberations of the standing investigative committee established by subsection 2, minutes of all deliberations must be maintained.

     2.  The Board will establish a standing investigative committee to review grievances and complaints against practitioners, oversee and guide the investigations of such grievances and complaints and to determine whether to proceed with disciplinary action against a practitioner. The standing investigative committee must consist of a member of the Board and such members of the Board’s staff, legal counsel and investigators as may be appointed by the Board or its President. Each member of the standing investigative committee serves at the pleasure of the Board and for such a period as is set by the Board.

     3.  The standing investigative committee established by subsection 2 shall prepare and present a report to the Board at each regular meeting of the Board. All information which may identify a practitioner or complainant must be removed from such a report.

     [Bd. of Accountancy, Art. 8, eff. 5-13-82] — (NAC A by R117-15, 4-4-2016) — (Substituted in revision for NAC 628.290)

     NAC 628.016  Fees of Board. (NRS 628.120, 628.250, 628.280, 628.340, 628.343, 628.345, 628.375, 628.380)

1.  The following fees for examinations are prescribed by the Board:
(a) For an initial examination for a certificate as a certified public accountant, the Board will establish each year a fee that will not exceed..................................................	$500
(b) For reexamination, the Board will establish each year a fee for each section that will not exceed...............................................................................................................	$100
(c) For the transfer of the examination grades of an applicant to another state or jurisdiction of the United States......................................................................................	$50
2.  The following fees for applications are prescribed by the Board:
(a) For an application for a certificate as a certified public accountant by reciprocity or pursuant to passing the Uniform Certified Public Accountant Examination administered in this State or in another jurisdiction...............................................................................	$200
plus the actual cost of the investigation required pursuant to NAC 628.019, which will not exceed $100.
(b) For an application for registration of a firm, the Board will establish each year a fee that will not exceed...................................................................................................	$250
3.  The following other fees are prescribed by the Board:
(a) For filing an annual report for a firm, the Board will establish each year a fee that will not exceed...............................................................................................................	$200
(b) For the late filing of an annual report of a firm, the Board will establish each year a fee that will not exceed...................................................................................................	$200
(c) For reinstatement into public practice from retired or inactive status......................	$250
(d) For the late filing of the annual renewal of a permit to practice public accounting, after January 31 of each year, the Board will establish each year a fee that will not exceed	$200
(e) For an individual evaluation of experience pursuant to subsection 7 of NAC 628.060, in addition to any reasonable costs of travel actually incurred by the Board and imposed pursuant to subsection 8 of NAC 628.060.......................................................	$1,000
(f) For registering a fictitious name............................................................................	$100
(g) For the late completion of continuing education requirements, an administrative fine in the following amounts:
(1) If completed 1 calendar month late.................................................................	$100
(2) If completed 2 to 3 calendar months late........................................................	$350
(3) If completed 4 to 5 calendar months late........................................................	$850
(4) If completed 6 to 7 calendar months late........................................................	$1,600
(h) A uniform fee for an annual permit or an annual renewal of a permit to practice public accounting will be established by the Board each year. The fee will not exceed $200 and will be prorated if an initial annual permit is obtained during the year.
(i) The Board will charge a fee of 50 cents per page, up to 100 pages, for providing a copy of a public record to a requester pursuant to NRS 239.052. For a public records request that exceeds 100 pages, the Board may use a bulk copy center for copying the public record. If the Board uses a bulk copying center to copy a public record, the Board may charge a fee that must not exceed the actual cost to the Board to provide the copy of the public record. The copy of the requested public record may be provided electronically as deemed appropriate by the Board.
4.  Any fee paid pursuant to this section must be paid in the currency of the United States.

     [Bd. of Accountancy, Art. 5 § 2, eff. 5-13-82] — (NAC A 2-6-87; 1-21-88; 12-21-89; 7-6-92; 5-18-94; 12-13-96; R192-97, 1-30-98; R169-99, 12-13-99; R094-01, 10-17-2001; R094-01, 10-17-2001, eff. 1-1-2002; R075-03, 10-28-2003, eff. 1-1-2004; R056-05, 11-17-2005; R031-13, 10-23-2013; R046-13, 12-23-2013; R068-17, 5-16-2018) — (Substituted in revision for NAC 628.120)

CERTIFICATION

     NAC 628.019  Investigation of criminal history; submission of fingerprints. (NRS 628.120, 628.190)  Each applicant for certification must:

     1.  Agree to an investigation of his or her criminal history to determine whether the applicant is qualified for certification pursuant to paragraph (d) of subsection 1 of NRS 628.190; and

     2.  Submit to the Board a complete set of his or her fingerprints.

     (Added to NAC by Bd. of Accountancy, eff. 12-13-96; A by R169-99, 12-13-99)

     NAC 628.020  Examinations: Eligibility; applications; locations; additional prerequisites; fee; failure to appear; notice of acceptance. (NRS 628.120, 628.230)

     1.  To be eligible to take the examination for certification as a certified public accountant, an applicant must have been awarded a bachelor’s degree by a college or university which is recognized or approved by the Board:

     (a) With a major in accounting; or

     (b) With a major other than accounting and the successful completion of at least 21 semester hours in courses above the level of introductory courses and which include 9 hours in financial accounting, 3 hours in auditing, 3 hours in federal income tax, 3 hours in business law and 3 hours in cost and managerial accounting. The semester hours required by this paragraph may be satisfied in whole or in part by the equivalent number of quarter hours of college credits from a college or university recognized by the Board.

     2.  Applications to take the examination for certification as a certified public accountant must be made on a form provided by the Board and filed with the Board. The examinations will be held at locations designated by the Board.

     3.  Each applicant must submit the names of at least three persons, one of whom must be a resident of Nevada and none of whom may be related by blood or marriage to the applicant, who can vouch for the applicant’s character. No person may take the examination until the Board is satisfied that the person is of fiscal integrity and without any history of acts involving dishonesty or moral turpitude.

     4.  An application is not considered filed until the fee for the examination and all required supporting documents, including official transcripts indicating that the education required by subsection 1 has been completed, have been received by the Board.

     5.  An applicant who fails to appear for an examination forfeits the fees charged for the examination unless the Board determines, based on information supplied by the applicant, that there existed reasonable cause beyond the applicant’s control for the failure to appear.

     6.  Notice of the acceptance of the application will be provided to each applicant.

     [Bd. of Accountancy, Art. 2 §§ 1 & 2, eff. 5-13-82] — (NAC A 2-6-87; 5-18-94; 12-13-96; R169-99, 12-13-99; R075-03, 10-28-2003; R046-13, 12-23-2013; R068-17, 5-16-2018)

     NAC 628.030  Examinations: Requirements. (NRS 628.120, 628.190, 628.230)

     1.  The examination required by NRS 628.190 is the Uniform Certified Public Accountant Examination or an examination approved by the Board pursuant to NRS 628.230.

     2.  In addition to the examination described in subsection 1, no earlier than 3 years before filing the application for certification as a certified public accountant, an applicant must pass an examination in professional ethics which is prescribed by or acceptable to the Board.

     [Bd. of Accountancy, Art. 2 § 3, eff. 5-13-82] — (NAC A 5-18-94; R169-99, 12-13-99; R046-13, 12-23-2013)

     NAC 628.040  Examinations: Passing grades; conditional credit; extension of time due to personal hardship. (NRS 628.120, 628.230)

     1.  The passing grade for each section of the examination is 75.

     2.  An applicant who at one sitting receives a passing grade on any section of the examination is entitled to receive conditional credit for each section passed. Any conditional credit granted pursuant to this section expires if all unpassed sections of the examination have not been completed within 18 months after the applicant passes a section of the examination.

     3.  At the discretion of the Board, an extension of time to complete the examination may be granted to an applicant who has demonstrated personal hardship and is unable to complete the examination in the required time frame.

     [Bd. of Accountancy, Art. 2 §§ 4 & 5, eff. 5-13-82] — (NAC A 2-6-87; 7-6-92; 5-18-94; R169-99, 12-13-99; R075-03, 10-28-2003, eff. 1-1-2004; R046-13, 12-23-2013; R117-15, 4-4-2016)

     NAC 628.055  Requirements for education; conversion to semester hours. (NRS 628.120, 628.200)

     1.  The requirement of education for a certificate of certified public accountant set forth in NRS 628.200 requiring at least 150 semester hours from a college or university recognized by the Board may be satisfied in whole or in part by the equivalent number of quarter hours of college credits from a college or university recognized by the Board.

     2.  The 150 semester hours required for a certificate of certified public accountant pursuant to NRS 628.200 must include at least:

     (a) Thirty semester hours in courses above the level of introductory courses which include 9 hours in financial accounting, 3 hours in cost and managerial accounting, 3 hours in auditing, 3 hours in federal income tax and 12 hours in electives related to accounting;

     (b) Three semester hours in business law; and

     (c) Twenty-four semester hours of courses in business, at the undergraduate or graduate level, other than courses in accounting and courses required under paragraphs (a) and (b), in the following subject areas:

          (1) Behavior of organizations, groups and persons.

          (2) Business finance.

          (3) Business law.

          (4) Computers.

          (5) Data processing.

          (6) Economics.

          (7) Ethics in business.

          (8) Legal and social environment of business.

          (9) Management.

          (10) Marketing.

          (11) Oral communication.

          (12) Quantitative applications in business.

          (13) Statistics.

          (14) Written communication, other than English courses for freshman students, including, but not limited to, business communications, advanced grammar and technical writing.

Ê The semester hours required by this subsection may be satisfied in whole or in part by the equivalent number of quarter hours of college credits from a college or university recognized by the Board.

     3.  An applicant holding a bachelor’s degree and a master’s degree in accounting that combined include 150 semester hours of education awarded by an institution which is accredited by an organization approved by the Board on the dates the degrees are awarded shall be deemed to be in compliance with the educational requirements for a certificate of certified public accountant set forth in NRS 628.200 and this section.

     4.  If a school or institution does not use a system of accounting based upon semester hours, the Board will convert the hours completed in such a school or institution to semester hours based upon a standard system of conversion.

     (Added to NAC by Bd. of Accountancy, 5-18-94, eff. 1-1-01; A 12-13-96; R068-17, 5-16-2018)

     NAC 628.060  Requirements for experience: General requirements; request for independent evaluation of experience by Board; verification and recordkeeping requirements. (NRS 628.120, 628.200)

     1.  The requirement of experience must be satisfied by an applicant for a certificate of certified public accountant as set forth in this section and subsection 2 of NRS 628.200.

     2.  To satisfy the requirement of subsection 2 of NRS 628.200, the experience of an applicant must consist of the following, or equivalent experience from another state:

     (a) Two years of full-time employment performing any combination of the tasks set forth in subsection 3 in a partnership, corporation, limited-liability company or sole proprietorship engaged in the practice of public accounting;

     (b) Four years of full-time employment performing any combination of the tasks set forth in subsection 3 in a governmental or other industry position substantially equivalent to a position in the practice of public accounting; or

     (c) Any combination of the experience set forth in paragraphs (a) and (b), except that an applicant who completes any experience described in paragraph (b) is entitled to credit towards any experience required by paragraph (a) in an amount equal to one-half of the amount of the experience completed pursuant to paragraph (b).

     3.  The requirement of experience set forth in subsection 2 must include the preparation, performance, supervision and review of tasks relating to the practice of public accounting that require discretion and judgment with increasing responsibility and levels of complexity and competency. Such tasks must include any combination of the following:

     (a) Compilation or preparation of historical financial statements or prospective financial information consistent with generally accepted accounting principles or other comprehensive basis of accounting;

     (b) Review of financial statements prepared consistent with generally accepted accounting principles or another financial reporting framework;

     (c) Auditing of financial statements;

     (d) Other attestation services relating to historical and prospective financial information and the compliance with all applicable controls, laws and regulations and contractual obligations;

     (e) Operational and other tasks which are frequently referred to as internal auditing activities;

     (f) Preparation of income tax returns, information returns and other federal, state, local and foreign tax returns for individuals, corporations, partnerships and limited-liability companies, charitable organizations and estates and trusts;

     (g) Design of internal controls over financial reporting;

     (h) Testing of compliance with internal controls over financial reporting;

     (i) Testing of compliance with financial accounting and auditing and income tax laws, regulations and contractual obligations;

     (j) Testing of financial information and the design and effectiveness of controls as part of internal audit outsourcing or co-sourcing arrangements;

     (k) Fraud examinations and other forensic accounting;

     (l) Research relating to the application of professional standards, laws and regulations;

     (m) Providing professional advice relating to structuring prospective transactions and events to achieve a desired result in compliance with applicable professional standards, laws and regulations; and

     (n) Completing tasks relating to the tasks provided in paragraphs (a) to (m), inclusive, including:

          (1) Engagement planning, including the identification of significant transactions, accounts and processes, assessment of risks, program design and timing of procedures;

          (2) File organization and report assembly;

          (3) Documenting findings and conclusions, including internal working papers, memoranda and reports for external use;

          (4) Account analysis and verification procedures for all categories of assets, liabilities, equities, revenues, costs and expenses and related information;

          (5) Analytical procedures;

          (6) Inspection and summary of documents;

          (7) Valuation assertion testing, including the testing of the appropriateness of inputs, related metrics and methods;

          (8) Confirmation of information with independent parties;

          (9) Design of sample plans and nonsampling selections;

          (10) Written and verbal inquiry of responsible parties and their advisors;

          (11) Direct observation of circumstances and events;

          (12) Reperformance processes and controls initially performed by others;

          (13) Comparison of expectations and results to industry and other relevant metrics;

          (14) Comparison of budgeted amounts to actual or expected results; or

          (15) Performance auditing activities.

     4.  The following tasks must not be considered to satisfy the requirement of experience set forth in subsection 2:

     (a) Unless significantly related to a task listed in subsection 3, administrative and clerical functions that do not require discretion and judgment;

     (b) Personnel recruiting;

     (c) Industrial engineering;

     (d) Actuarial services;

     (e) Unless performed in connection with a task listed in subsection 3, expert testimony or litigation support;

     (f) Valuation services, except those valuation services performed in connection with the valuation assertion testing of financial statements, including, without limitation, real estate and personal property appraisals and business valuations;

     (g) Bookkeeping, unless performed in connection with a task listed in subsection 3;

     (h) Unless performed in connection with a task listed in subsection 3, approving and processing routine accounting transactions, including, without limitation, transactions involving cash receipts and disbursements, the procurement of goods and services, payroll processing and recurring journal entries; or

     (i) Unless performed in connection with a task listed in subsection 3, the development, maintenance and monitoring of electronic systems and tools, software and hardware.

     5.  To satisfy the requirements for experience set forth in this section, all work must have been performed under the direct supervision of a person engaged in active practice as a certified public accountant who has knowledge about and a higher level of responsibility of the subject tasks and in accordance with all applicable professional standards, including, without limitation:

     (a) The Code of Professional Conduct of the American Institute of Certified Public Accountants, as adopted by reference in NAC 628.500, or, if applicable, the standards set forth by the United States Government Accountability Office or the Public Company Accounting Oversight Board;

     (b) Generally accepted accounting principles, including, without limitation, any principles applicable to the selected financial reporting framework which are derived from authoritative standards and certain interpretive nonauthoritative guidance promulgated by the Financial Accounting Standards Board, the United States Securities and Exchange Commission, the Governmental Accounting Standards Board, the International Accounting Standards Board and the American Institute of Certified Public Accountants and its Financial Reporting Executive Committee;

     (c) Auditing standards, including, without limitation, those promulgated by the Auditing Standards Board of the American Institute of Certified Public Accountants or, if applicable, the Public Company Accounting Oversight Board, the Comptroller General of the United States, the International Auditing and Assurance Standards Board or the Institute of Internal Auditors; and

     (d) Other standards published by the American Institute of Certified Public Accountants, including, without limitation, Statements on Standards for Attestation Engagements (SSAE), Statements on Standards for Accounting and Review Services (SSARS), Statements on Standards for Tax Services (SSTS) and Statements on Standards for Consulting Services (SSCS), each of which is hereby adopted by reference and may be obtained on-line from the American Institute of Certified Public Accountants at its Internet website, https://www.aicpa.org, free of charge.

     6.  An applicant must complete and submit a form for the verification of experience to the Board as proof of his or her experience. The form must be signed, under penalty of perjury, by one or more certified public accountants who supervised, or have sufficient knowledge of, the applicant’s work and can certify the character, extent and nature of that work. Upon request, an applicant must obtain and submit any records and supporting documentation of the experience of the applicant for inspection and review by the Board.

     7.  An applicant who has obtained the experience which the applicant believes may satisfy the requirement described in paragraph (b) of subsection 2 but is unable to provide the verification of experience signed, under penalty of perjury, by one or more certified public accountants who supervised, or have sufficient knowledge of, the applicant’s work and can certify the character, extent and nature of that work, as required by subsection 6, may request an individual evaluation by the Board of the character, extent and nature of his or her experience to determine whether the experience satisfies the requirement of paragraph (b) of subsection 2 of NRS 628.200.

     8.  An applicant who has requested an individual evaluation pursuant to subsection 7 must pay an additional fee as provided in paragraph (e) of subsection 3 of NAC 628.016 for the evaluation by the Board of the character, extent and nature of the applicant’s experience. The Board may require an applicant to reimburse the Board for reasonable costs of travel actually incurred in evaluating the character of an applicant’s experience.

     9.  The applicant shall maintain, for 3 years after obtaining a certificate of certified public accountant, the records and supporting documentation of the applicant’s experience for inspection and review by the Board.

     10.  A certified public accountant who signs an applicant’s form for the verification of experience pursuant to subsection 6 shall maintain, for 3 years after signing the form, any records and supporting documentation of the experience of the applicant for inspection and review by the Board. 

     [Bd. of Accountancy, Art. 10, eff. 5-13-82] — (NAC A 2-6-87; 7-6-92; 5-18-94; 12-13-96; R031-13, 10-23-2013; R068-17, 5-16-2018)

     NAC 628.070  Certificate by reciprocity. (NRS 628.120, 628.310)  The Board may grant a certificate by reciprocity to practice to any person who is the holder of:

     1.  A certificate as a certified public accountant then in effect issued pursuant to the laws of any state or other jurisdiction of the United States; or

     2.  An equivalent certificate then in effect issued by a foreign country pursuant to the provisions of NRS 628.310.

     [Bd. of Accountancy, Art. 1 § 3, eff. 5-13-82] — (NAC A by R169-99, 12-13-99; R046-13, 12-23-2013)

     NAC 628.080  Waiver of examination; submission of proof of continuing education. (NRS 628.120, 628.310)

     1.  The examination for a certificate as a certified public accountant will not be waived for an applicant whose certificate as a certified public accountant was based in whole or in part on the entitlement of the applicant to practice public accounting in a foreign country unless the applicant has passed an equivalent examination approved by the Board.

     2.  The Board may accept the scores of an applicant from the Uniform Certified Public Accountant Examination or any other examination approved by the Board taken in another state and waive the manner in which the scores were obtained.

     3.  An applicant must submit proof that he or she has completed at least 20 hours of continuing education within 12 months before the date of filing the application for the issuance of a certificate.

     [Bd. of Accountancy, Art. 3, eff. 5-13-82] — (NAC A 2-6-87; 12-13-96; R169-99, 12-13-99; R056-05, 11-17-2005; R046-13, 12-23-2013)

     NAC 628.100  Notification of change of address, electronic mail address, telephone number or other contact information. (NRS 628.120)  Every holder of a permit and every firm registered with the Board must notify the Board in writing within 30 days after any change in his or her mailing address, electronic mail address, telephone number or any other contact information on file with the Board.

     [Bd. of Accountancy, Art. 1 § 2, eff. 5-13-82] — (NAC A 2-6-87; R046-13, 12-23-2013)

     NAC 628.110  Placement on retired or inactive status; ineligibility; reinstatement; new application after voluntary surrender or revocation. (NRS 628.120, 628.160, 628.380, 628.386)

     1.  The certificate of a certified public accountant who holds a live permit and is in good standing may, upon application to and approval by the Board, be placed on retired or inactive status.

     2.  A certified public accountant whose certificate is placed on retired status pursuant to subsection 1 must, if he or she thereafter includes any reference to his or her certification on a business card, letterhead or similar document or device, include the word “retired” immediately following each such reference.

     3.  Any of the following activities will be considered as active involvement in the accounting profession, and the holder of the certificate will not qualify for retired or inactive status:

     (a) Any employment related to the financial functions of any business, governmental entity or nonprofit organization;

     (b) Any supervision of the financial functions of any business, governmental entity or nonprofit organization;

     (c) Any preparation of tax returns or schedules in support of a tax return for compensation except when prepared for family members;

     (d) Any volunteer position related to the financial functions of an entity, except financial oversight required by law in a fiduciary capacity for the volunteer position; or

     (e) Any work as a trustee that includes the preparation of financial information for the trust except for a family trust of the former holder of a certificate or of any person who is related within the third degree of consanguinity or affinity to the former holder of a certificate.

     4.  A former holder of a certificate may be reinstated into the practice of public accounting from retired or inactive status by submitting an application to the Board accompanied by the fee prescribed in NAC 628.016. The applicant must show that he or she has completed at least 40 hours of continuing education, including 4 hours of continuing education relating to ethics, during the 12 months immediately preceding the application.

     5.  A former holder of a certificate whose certificate has been voluntarily surrendered to the Board must submit:

     (a) A new application for licensing accompanied by:

          (1) The application fee;

          (2) The fee for annual renewal of the permit for any year the fee was not paid before he or she surrendered the certificate; and

          (3) The penalty for late filing for any year fees were not paid before he or she surrendered the certificate as prescribed in paragraph (d) of subsection 3 of NAC 628.016; and

     (b) Proof that he or she has completed at least 40 hours of continuing education during the 12 months immediately preceding the application.

     6.  A former holder of a certificate whose certificate has been revoked or, in lieu of receiving disciplinary action, voluntarily surrendered to the Board, must submit:

     (a) A new application for licensing accompanied by:

          (1) The application fee;

          (2) The fee for annual renewal of the permit for any year that the fee was not paid before the certificate was revoked or surrendered; and

          (3) The penalty for late filing prescribed in paragraph (d) of subsection 3 of NAC 628.016 for any year that a fee was not paid before the certificate was revoked or surrendered;

     (b) Proof that he or she has completed at least 80 hours of continuing education, including 8 hours of continuing education relating to ethics, during the 12 months immediately preceding the filing of the new application; and

     (c) Evidence that any outstanding issues that are related to disciplinary action which caused the revocation or voluntary surrender have been addressed to the satisfaction of the Board.

Ê A practitioner who voluntarily surrenders his or her certificate while subject to a contested case, as defined in NAC 628.855, shall be deemed to have surrendered his or her certificate in lieu of receiving disciplinary action for the purpose of this subsection.

     7.  For the purposes of this section:

     (a) “Inactive status” means the voluntary termination by a holder of a certificate of all activities in the fields of public, private or governmental accounting before reaching the age of retirement.

     (b) “Retired status” means the voluntary termination by a holder of a certificate of all activities in the profession of public, private or governmental accounting upon the attainment of at least 60 years of age or upon becoming permanently disabled and no longer gainfully employed.

     [Bd. of Accountancy, Art. 12, eff. 5-13-82] — (NAC A 2-6-87; 9-17-87; 12-13-96; R192-97, 1-30-98; R169-99, 12-13-99; R094-01, 10-17-2001; R046-13, 12-23-2013; R117-15, 4-4-2016)

REGISTRATION OF FIRMS

     NAC 628.130  Applications; approval or disapproval. (NRS 628.120, 628.335, 628.375, 628.380)

     1.  A firm must file with the Board an application for registration as provided in NRS 628.335. The application must be accompanied by the prescribed fee.

     2.  Before a certified public accountant, or a firm composed of certified public accountants with an office in this State, engages in the practice of public accounting in this State under a fictitious name, the certified public accountant or firm must first obtain the approval of the Board. An application for registration of a fictitious name must be filed with the Board. The application must be accompanied by the prescribed fee in accordance with NAC 628.016.

     3.  The Board, within a reasonable time after the submission of an application for registration, will either approve the application and issue a certificate of registration or refuse approval and notify the applicant of the reasons for refusal and the procedure for requesting a hearing on the disapproval.

     [Bd. of Accountancy, Art. 6 § 6, eff. 5-13-82] — (NAC A 2-6-87; 12-13-96; R094-01, 10-17-2001, eff. 1-1-2002; R046-13, 12-23-2013)

     NAC 628.140  Name of firm. (NRS 628.120, 628.375)

     1.  The name under which a firm engages in the practice of public accounting may not be misleading or deceptive.

     2.  The name of a firm is misleading or deceptive if the name of the firm:

     (a) Implies the existence of a corporation, when the firm is not a corporation, by the use of the abbreviations “P.C.,” “Ltd.” or similar abbreviations.

     (b) Implies the existence of a partnership, when the firm is not a partnership, by the use of a designation similar to “Smith & Jones” or “C.P.A.’s.”

     (c) Implies the existence of a limited-liability company, when the firm is not a limited-liability company, by the use of the abbreviations “Ltd.,” “L.L.C.,” “LLC” or “LC.”

     (d) Includes the name of a proprietor, partner, member or shareholder, without the written consent of the person first being obtained by the firm and filed with the Board, who has:

          (1) Withdrawn from the firm; or

          (2) Terminated his or her employment other than by retirement from public practice, Board-approved inactive status or by death. The name of the proprietor, partner, member or shareholder must be removed from the name of the firm within 120 days after the withdrawal or termination.

     (e) Implies more than one principal, when there is only one shareholder, one member or one proprietor, by the use of a designation similar to “Smith & Co.,” “Smith & Assoc.” or “Smith Group.”

     (f) Contains a misrepresentation of fact.

     (g) Creates or is likely to create false or unjustified expectation of favorable results.

     (h) Includes the name of a person who is not registered as a certified public accountant in any state or other jurisdiction of the United States or a foreign country.

     3.  A fictitious name must not be formulated in such a manner that the initials or parts of the name form a term or phrase that is misleading or deceptive.

     4.  A firm engaged in the practice of public accounting may not render professional services using:

     (a) A name other than that which is stated in its certificate of registration; or

     (b) A fictitious name unless:

          (1) The fictitious name has been registered with and approved by the Board; or

          (2) The firm is performing services under practice privileges granted pursuant to NRS 628.315 or 628.335 and the fictitious name is approved by the state in which the firm’s principal place of business is located.

     [Bd. of Accountancy, Art. 6 § 1, eff. 5-13-82] — (NAC A 2-6-87; 12-13-96; R169-99, 12-13-99; R075-03, 10-28-2003; R046-13, 12-23-2013)

     NAC 628.150  Affiliations of firms. (NRS 628.120)

     1.  Firms holding certificates of registration to practice as certified public accountants may affiliate with other partnerships, partnerships of partnerships, limited-liability companies or corporations for the practice of public accounting if all sole proprietors, partners, members or shareholders of the affiliated firms in the practice of public accounting in the United States or its territories are:

     (a) Certified public accountants in good standing in some other state or territory of the United States;

     (b) Persons who are the holders of an equivalent certificate then in effect issued by a foreign country who meet the requirements set forth in subsection 2 of NRS 628.310; or

     (c) Persons who meet the requirements set forth in subsection 5 of NRS 628.325.

     2.  Firms holding permits to practice as public accountants may affiliate with other partnerships, partnerships of partnerships, limited-liability companies or corporations for the practice of public accounting if all sole proprietors, partners, members or shareholders of affiliated firms regularly engaged in the practice of public accounting in this State are public accountants or certified public accountants holding a live permit in this State and all other proprietors, partners, members or shareholders of the affiliated firms in the practice of public accounting in the United States or its territories are:

     (a) Certified public accountants in good standing in some other state or territory of the United States;

     (b) Persons who are the holders of an equivalent certificate then in effect issued by a foreign country who meet the requirements set forth in subsection 2 of NRS 628.310; or

     (c) Persons who meet the requirements set forth in subsection 5 of NRS 628.325.

     [Bd. of Accountancy, Art. 6 §§ 2 & 3, eff. 5-13-82] — (NAC A 12-13-96; R169-99, 12-13-99; R046-13, 12-23-2013)

     NAC 628.160  Transfer of interest in firm of practitioner who has died, become legally incompetent or is disqualified from practice. (NRS 628.120)

     1.  The personal representative or estate of a practitioner who has died or become legally incompetent or a practitioner who is disqualified from practicing public accounting must sell his or her interest in a firm to the remaining owners or to the legal entity not later than 6 months after the death or incompetency of the practitioner or not later than 120 days after the practitioner becomes disqualified.

     2.  All restrictions on the ownership and transfer of the interest described in subsection 1 must be set forth in the articles of incorporation or the bylaws of the corporation or in the operating agreement or articles of organization of the limited-liability company or partnership agreement.

     [Bd. of Accountancy, Art. 6 § 4, eff. 5-13-82] — (NAC A by R169-99, 12-13-99; R046-13, 12-23-2013; R117-15, 4-4-2016)

     NAC 628.180  Reports of firm. (NRS 628.120)

     1.  A firm registered pursuant to NRS 628.335 shall, on or before January 31 of each year, file with the Board an annual report on a form provided by the Board reflecting its status and containing such information as the Board may require.

     2.  Each firm shall notify the Board within 30 days after any occurrence relating to the requirements of the law and the regulations of the Board, including changes in officers, directors, members, shareholders, proprietors and amendments to bylaws and articles of incorporation.

     [Bd. of Accountancy, Art. 6 § 7, eff. 5-13-82] — (NAC A 2-6-87; 5-18-94; 12-13-96; R046-13, 12-23-2013)

     NAC 628.190  Renewal of permit and registration. (NRS 628.120, 628.380)  Every permit and registration must be renewed by payment of the prescribed renewal fee on or before January 31 of each year. After that time, a certificate holder or firm may not lawfully practice public accounting in this State until all delinquent fees and penalties have been paid.

     [Bd. of Accountancy, Art. 5 § 1, eff. 5-13-82] — (NAC A by R046-13, 12-23-2013)

CONTINUING EDUCATION

     NAC 628.210  Prerequisites to renewal of permit; exemption; waiver. (NRS 628.120, 628.386)

     1.  Except as otherwise provided in subsection 3 and NAC 628.110, an applicant for the renewal of a permit to engage in the practice of public accounting must complete at least 80 hours of continuing education during the 2 years immediately preceding the date for renewal of the permit, of which:

     (a) At least 20 hours must be completed in each year;

     (b) Four hours must be in professional ethics; and

     (c) Eight hours must be in courses that focus on accounting and auditing in each year in which the applicant performed work on any audit, review, full disclosure compilation or attestation services.

     2.  In addition to the requirements set forth in subsection 1, an applicant for the renewal of a permit to engage in the practice of public accounting must be in compliance with the requirements for continuing education established by applicable professional standards.

     3.  An applicant seeking the first annual renewal of an initial permit is exempt from the requirements of NAC 628.210 to 628.250, inclusive.

     4.  If an applicant for the renewal of a permit to engage in the practice of public accounting is permitted, certified or licensed to engage in the practice of public accounting in another state and resides in that state, the applicant must demonstrate compliance with the continuing education requirements of that state by signing a statement to that effect on his or her application to the Board for the renewal of a permit to engage in the practice of public accounting. If the state in which the applicant resides does not have continuing education requirements, the applicant must comply with the requirements set forth in this section.

     5.  The requirements of NAC 628.210 to 628.250, inclusive, may be waived by the Board for reasons of personal hardship, including, without limitation, health problems, military service, foreign residence, retirement or other good cause.

     [Bd. of Accountancy, Art. 7 §§ 2 & 3, eff. 5-13-82] — (NAC A 2-6-87; R169-99, 12-13-99; R056-05, 11-17-2005; R031-13, 10-23-2013; R117-15, 4-4-2016)

     NAC 628.220  Standards for qualifying programs. (NRS 628.120, 628.200, 628.386)

     1.  A program qualifies as a program of continuing education if it:

     (a) Is a formal program of learning which contributes to a growth in professional knowledge and the competence of a person engaged in the practice of public accounting; and

     (b) Meets the minimum standards of quality of development, presentation, measurement and the reporting of credits set forth in the most current version of the Statement on Standards for Continuing Professional Education (CPE) Programs published jointly by the American Institute of CPAs and the National Association of State Boards of Accountancy, which is hereby adopted by reference, or other educational standards which may be established by the Board.

     2.  A copy of the statement may be obtained at no cost from the National Association of State Boards of Accountancy, 150 Fourth Avenue North, Suite 700, Nashville, Tennessee 37219-2417, or on its Internet website at www.learningmarket.org.

     3.  The Board will periodically review the standards adopted in this section and determine within 30 days after the review whether any change made to the standards is appropriate for application in this State. If the Board does not disapprove a change to the standards within 30 days after the review, the change is deemed to be approved by the Board.

     [Bd. of Accountancy, Art. 7 part § 4, eff. 5-13-82] — (NAC A 5-18-94; 12-13-96; R169-99, 12-13-99; R094-01, 10-17-2001; R075-03, 10-28-2003; R031-13, 10-23-2013)

     NAC 628.230  Acceptable programs and subjects. (NRS 628.120, 628.200, 628.386)

     1.  Qualified programs of continuing education dealing with the following general subjects are acceptable:

     (a) Accounting and auditing;

     (b) Taxation;

     (c) Management;

     (d) Computer science;

     (e) Communication arts;

     (f) Mathematics, statistics, probability and quantitative applications in business;

     (g) Economics;

     (h) Business law;

     (i) Functional fields of business, including finance, production, marketing, personnel relations, and business management and organization;

     (j) Specialized areas of industry, including the film industry, real estate and farming; and

     (k) Administrative practice, including engagement letters and personnel.

     2.  Subjects other than those listed in subsection 1 may be acceptable if the applicant can demonstrate that they contribute to his or her professional competence. The applicant is responsible for demonstrating that a particular program is acceptable.

     3.  Programs for independent study or self-study are acceptable if they are approved by the Board.

     4.  The following group programs are acceptable if they meet the standards specified in NAC 628.220 and deal with the subjects listed in subsection 1:

     (a) Professional educational and developmental programs of national, state and local accounting organizations;

     (b) Technical sessions at meetings of national, state and local accounting organizations and their chapters;

     (c) Courses offered by a university or college, credit and noncredit;

     (d) Formal educational programs of a firm;

     (e) Programs of other accounting, industrial or professional organizations;

     (f) Meetings of committees of professional societies which are structured as formal educational programs;

     (g) Dinner, luncheon and breakfast meetings which are structured as formal educational programs; and

     (h) Meetings of firms for staff groups or management groups, or both, which are structured as formal educational programs. The portions of these meetings which are devoted to the communication and application of general professional policy or procedure may qualify, but those portions which are devoted to administrative, financial and operating matters of firms generally do not qualify.

     [Bd. of Accountancy, Art. 7 part § 4, eff. 5-13-82] — (NAC A 12-13-96; R075-03, 10-28-2003)

     NAC 628.240  Determination and allowance of credit. (NRS 628.120, 628.200, 628.386)

     1.  For the purposes of continuing education, 50 minutes of instruction equals one credit of continuing education. Credit for continuing education may be earned in increments of less than one credit.

     2.  Each semester hour of credit given for a college course equals 15 hours. A quarter hour of credit equals 10 hours.

     3.  The amount of credit allowed for correspondence programs and formal programs for independent study or self-study, including taped programs, will be that amount which is recommended by the sponsor of the program. Applicants claiming credit for correspondence programs or formal programs for independent study or self-study must obtain evidence of satisfactory completion of the course from the sponsor of the program. Credit is allowed for the period of renewal in which the course is completed.

     4.  The amount of credit for continuing education allowed for independent study will be the amount which is recommended by the sponsor of the program.

     5.  The Board may allow credit for continuing education for the publication of an article or book written by a practitioner if:

     (a) A written evaluation of the article or book is prepared by a person designated by the Board and submitted to the Board for its review; and

     (b) After a review of the evaluation, the Board determines that the article or book contributes to the professional knowledge and competence of the practitioner.

     6.  Applicants who have served as instructors, leaders of discussions or speakers at qualified programs may claim credit for continuing education for time spent on both preparation and presentation. Credit claimed for preparation may not exceed two times the number of hours of the presentation. Credit for teaching a course may not be claimed more than once in any consecutive 12 months without the prior approval of the Board. Approval will only be granted if the Board determines that the content of the course has been substantially altered during that period.

     [Bd. of Accountancy, Art. 7 part § 4, eff. 5-13-82] — (NAC A 2-6-87; 5-18-94; R075-03, 10-28-2003; R117-15, 4-4-2016)

     NAC 628.250  Application for renewal of permit; maintenance of records; action by Board. (NRS 628.120, 628.380, 628.386)

     1.  An applicant for the renewal of a permit to engage in the practice of public accounting issued pursuant to NRS 628.380 must list on the application the number of hours of continuing education completed by the applicant during the previous calendar year. The applicant shall maintain a record of the classes of continuing education completed by the applicant for 3 years after the applicant files the application. The application must include, without limitation:

     (a) The name of the sponsoring organization;

     (b) The location of the program;

     (c) The title of the program or a description of its content;

     (d) The dates attended; and

     (e) The number of hours of credit claimed by the applicant.

     2.  In addition to the record required to be maintained pursuant to subsection 1, the applicant is responsible for documenting the acceptability of the program and the validity of the credits. The documentation must be retained for 3 years after the applicant files an application for the renewal of a permit to practice issued pursuant to NRS 628.380. The documentation must consist of one of the following:

     (a) A certificate of completion.

     (b) A copy of the outline of the course prepared by the sponsor of the course along with the information required by subsection 1.

     (c) For courses taken for academic credit at accredited universities and colleges, evidence of the satisfactory completion of the course. For noncredit courses, a statement of the hours of attendance signed by the instructor.

     (d) For formal programs for independent study or self-study, written evidence of completion.

     (e) Any other documentation acceptable to the Board.

     3.  The Board will verify information submitted by an applicant for a permit on the basis of a test. If the Board determines that the requirement for continuing education has not been met, the Board may grant additional time for the deficiencies to be corrected.

     [Bd. of Accountancy, Art. 7 § 5, eff. 5-13-82] — (NAC A 5-18-94; 12-13-96; R075-03, 10-28-2003; R056-05, 11-17-2005; R031-13, 10-23-2013)

     NAC 628.430  Complaints issued by Board; notice of hearing; examination of documents. (NRS 628.120, 628.410)  [Replaced in revision by NAC 628.895.]

 

     NAC 628.440  Conduct of hearing. (NRS 628.120, 628.410)  [Replaced in revision by NAC 628.900.]

 

     NAC 628.450  Publication of decisions. (NRS 628.120, 628.390)  [Replaced in revision by NAC 628.975.]

 

UNLAWFUL PRACTICE

     NAC 628.460  Certificate and permit required. (NRS 628.120)

     1.  A person may not perform or offer to perform tax or management services while holding oneself out to be a certified public accountant if the person does not hold a current certificate and a live permit.

     2.  For the purposes of this section, a person is considered to “hold himself or herself out” as engaged in the practice of public accounting if the person represents to persons other than his or her employer or an affiliate, but for whom the person or the employer is performing or offering to perform services described in NRS 628.023, that he or she is a certified public accountant. Such representation occurs with any written or verbal communication which represents the person to be a certified public accountant or other similar title commonly understood to express expertise in accounting and auditing. The display in a place where services are performed by a person for others than himself or herself or his or her employer of a sign, certificate, diploma or other device whereby the public may reasonably conclude that the person is qualified and currently entitled to practice public accounting, when such person does not hold a live permit, constitutes holding oneself out as engaged in the practice of public accounting.

     [Bd. of Accountancy, Art. 11, eff. 5-13-82] — (NAC A 2-6-87; R068-17, 5-16-2018) — (Substituted in revision for NAC 628.300)

STANDARDS OF PRACTICE

     NAC 628.500  Adoption by reference of Code of Professional Conduct; exceptions; availability; periodic review. (NRS 628.120, 628.160)

     1.  The Board hereby adopts by reference the Code of Professional Conduct adopted by the American Institute of Certified Public Accountants, with the following exceptions:

     (a) References to “member” are amended to refer to “practitioner.”

     (b) The definition of “financial statements” in paragraph .17 of section 0.400 is amended to read as follows:

          (1) “Financial statements” means:

               (I) Any statements or footnotes related thereto that purport to demonstrate the financial condition of a person at a particular time or the change in a person’s financial condition during a particular period; or

               (II) Any statements prepared using a cash or other comprehensive basis of accounting.

          (2) The term includes balance sheets, statements of income, statements of retained earnings, statements of cash flows and statements of changes in equity.

          (3) The term does not include incidental financial data that is included in reports concerning advisory services for management made to support recommendations to a client, tax returns or schedules in support of a tax return, or the statement, affidavit or signature of the person who prepares a tax return.

     (c) The definition of “public practice” in paragraph .42 of section 0.400 is amended to have the meaning ascribed to the definition of “practice of public accounting” in NRS 628.023.

     (d) The disclosure required pursuant to paragraph .03 of section 1.520.001 must:

          (1) Include the amount of the commission expressed in dollars or the method, described in plain language, used to calculate the commission;

          (2) Include the name of the person or entity paying the commission;

          (3) Be written;

          (4) Be made on or before the date of referral or recommendation; and

          (5) Be signed and dated.

     (e) The statement, affidavit or signature of the preparer of a tax return does not constitute an opinion on a financial statement, and the preparer of the tax return is not required to make a disclaimer of such an opinion.

     (f) The Board does not adopt by reference, pursuant to this section, Appendix B of the Code of Professional Conduct.

     2.  A copy of the Code of Professional Conduct may be obtained from the American Institute of Certified Public Accountants at its Internet website, http://pub.aicpa.org/codeofconduct, free of charge.

     3.  The Board will periodically review the standards adopted by reference in this section and determine within 30 days after the review whether any change made to the standards is appropriate for application in this State. If the Board does not disapprove a change to the standards within 30 days after the review, the change is deemed to be approved by the Board.

     (Added to NAC by Bd. of Accountancy, eff. 12-13-96; A by R169-99, 12-13-99; R094-01, 10-17-2001; R056-05, 11-17-2005; R046-13, 12-23-2013; R117-15, 4-4-2016)

     NAC 628.510  Applicability. (NRS 628.120, 628.160)

     1.  The provisions of this section and the provisions adopted by reference pursuant to NAC 628.500 apply to all persons who are engaged in the practice of public accounting in this State.

     2.  The provisions of this section and the provisions adopted by reference pursuant to NAC 628.500 do not apply to a practitioner who engages in the practice of public accounting outside this State unless the practitioner’s name is included in a financial statement and the manner in which the statement is written would cause a reasonable person to believe that the statement was prepared pursuant to the laws of this State or under practice privileges granted pursuant to NRS 628.315 or 628.335.

     3.  A practitioner may be held responsible for compliance with the provisions of this section and the provisions adopted by reference pursuant to NAC 628.500 by all persons associated with him or her in the practice of public accounting who are under the practitioner’s supervision or are the partners or shareholders of the practitioner.

     4.  A practitioner shall not permit another person to perform on his or her behalf, with or without compensation, actions which, if performed by the practitioner, would result in a violation of any of the provisions adopted by reference pursuant to NAC 628.500.

     (Added to NAC by Bd. of Accountancy, eff. 12-13-96; A by R046-13, 12-23-2013)

     NAC 628.520  Reporting of certain occurrences to Board. (NRS 628.120, 628.160, 628.386)  A practitioner or firm shall report to the Board not more than 30 days after:

     1.  The practitioner or firm receives a peer review or inspection report with identified deficiencies.

     2.  The decision against the practitioner or firm for the imposition of a disciplinary action, including, without limitation, a censure, a reprimand, a sanction, probation, a civil penalty, a fine, a consent decree, an order for the suspension, revocation, modification, restriction or denial of a license, certificate, permit or right to practice or the voluntary surrender, lapse, cancellation or resignation of a license, certificate, permit or right to practice while under investigation by:

     (a) Any agency of another state authorized to regulate the practice of accountancy in that state for any cause except:

          (1) The failure to pay by the date due a fee for a license, certificate, permit or right to practice; or

          (2) The failure to comply with a requirement for continuing education;

     (b) Any federal or state agency for conduct of the practitioner or firm relating to the provision of professional services;

     (c) Any agency of this State, another state or territory, any agency of the Federal Government or a foreign country; or

     (d) The American Institute of Certified Public Accountants, the Public Company Accounting Oversight Board or any other similar membership organization or association related to, having oversight of or primarily composed of practitioners.

     3.  Except as otherwise provided in this subsection, any settlement, award or judgment of $150,000 or more against the practitioner or firm for a claim of or action for gross negligence, violation of a specific standard of practice, fraud or misappropriation of money in the practice of accounting. If the practitioner is a firm of certified public accountants, the practitioner shall notify the Board, pursuant to this subsection, of any settlement, award or judgment involving the practice of public accounting in this State.

     4.  The practitioner or firm is charged with, is convicted of or pleads nolo contendere to, or has an order of deferred prosecution entered in a case involving the practitioner or firm for:

     (a) Any criminal offense, other than a minor traffic offense, under the laws of any state or of the United States; or

     (b) A crime, an element of which is dishonesty or fraud, or any crime involving moral turpitude, under the laws of any state or of the United States or any foreign country.

     5.  The practitioner or firm is named as a defendant or respondent in any type of administrative action relating to the practice of public accounting or action based on an allegation of an accounting violation, dishonesty, fraud, misrepresentation or breach of fiduciary duty.

     6.  The practitioner or firm is named as a defendant or respondent in any type of civil action relating to the practice of public accounting or action based on an allegation of an accounting violation, dishonesty, fraud, misrepresentation or breach of fiduciary duty.

     (Added to NAC by Bd. of Accountancy by R056-05, eff. 11-17-2005; A by R046-13, 12-23-2013; R117-15, 4-4-2016; R068-17, 5-16-2018)

PROGRAM TO MONITOR QUALITY OF FINANCIAL REPORTING

     NAC 628.550  Definitions. (NRS 628.120, 628.160, 628.386)  As used in NAC 628.550 to 628.590, inclusive, unless the context otherwise requires, the words and terms defined in NAC 628.555 to 628.570, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008; A by R068-17, 5-16-2018)

     NAC 628.555  “Evaluation” defined. (NRS 628.120, 628.160, 628.386)  “Evaluation” means the process conducted pursuant to the practice-monitoring program established pursuant to NAC 628.550 to 628.590, inclusive, to ensure that a practitioner complies with the Code of Professional Conduct adopted by reference pursuant to NAC 628.500.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

     NAC 628.560  “Practice-monitoring documents” defined. (NRS 628.120, 628.160, 628.386)  “Practice-monitoring documents” means the determinations and reports developed as the result of an evaluation of a practitioner conducted pursuant to a practice-monitoring program, including, without limitation:

     1.  An enrollment letter;

     2.  A peer review report;

     3.  A letter of comment;

     4.  A letter of response;

     5.  A letter of acceptance;

     6.  A letter of completion; and

     7.  Any other report or determination developed as a result of the evaluation of a practitioner conducted pursuant to a practice-monitoring program.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008; A by R068-17, 5-16-2018)

     NAC 628.565  “Practice-monitoring program” defined. (NRS 628.120, 628.160, 628.386)  “Practice-monitoring program” means a program to monitor the quality of financial reporting of a practitioner conducted pursuant to NAC 628.550 to 628.590, inclusive.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

     NAC 628.567  “Sponsoring organization” defined. (NRS 628.120, 628.170, 628.386)  “Sponsoring organization” means an entity which administers a practice-monitoring program.

     (Added to NAC by Bd. of Accountancy by R068-17, eff. 5-16-2018)

     NAC 628.570  “Transmittal form” defined. (NRS 628.120, 628.160, 628.386)  “Transmittal form” means the document distributed by the Board to be used in submitting reports for evaluation or to advise the Board that no reports were issued by the practitioner in the previous year.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

     NAC 628.572  Peer review oversight committee: Establishment; composition and qualifications of members; powers and duties; confidentiality of information obtained during oversight activities. (NRS 628.120, 628.170, 628.386)

     1.  The Board may establish a peer review oversight committee to:

     (a) Monitor a sponsoring organization to ensure that peer reviews are being conducted and reported in accordance with peer review minimum standards;

     (b) Review the policies and procedures of an organization applying to the Board to become a sponsoring organization to ensure that such policies and procedures conform with peer review minimum standards; and

     (c) Report to the Board any conclusions or recommendations based on the functions performed pursuant to paragraphs (a) and (b).

     2.  The peer review oversight committee must consist of three members appointed by the Board, none of whom is a current member of the Board. Each member of the peer review oversight committee serves at the pleasure of the Board and for such a period of time as is set by the Board.

     3.  Each member of the peer review oversight committee must be a person engaged in active practice as a certified public accountant, in at least a supervisory position related to accounting or auditing functions. Each member or his or her firm must be engaged in a practice-monitoring program and have received an unmodified or pass report on its most recent peer review.

     4.  At least two members of the peer review oversight committee must satisfy the qualifications of a team captain of a peer review team as set forth in the Standards for Performing and Reporting on Peer Reviews of the American Institute of Certified Public Accountants, which is hereby adopted by reference and may be obtained on-line from the American Institute of Certified Public Accountants at its Internet website, https://www.aicpa.org, free of charge.

     5.  A member of the peer review oversight committee must not:

     (a) Concurrently serve as a member of a peer review committee or joint trial board of the American Institute of Certified Public Accountants or similar body of another state; or

     (b) Participate in any discussion or have any vote with respect to the review of a practitioner or firm when the committee member lacks independence or has a conflict of interest.

Ê The Board may appoint an alternate committee member if an appointed member is unable to serve pursuant to this subsection.

     6.  The peer review oversight committee may:

     (a) Establish and perform procedures ensuring that peer reviews are performed and reported in accordance with the Standards for Performing and Reporting on Peer Reviews adopted by the American Institute of Certified Public Accountants, or other standards approved by the Board and rules promulgated, herein by the Board;

     (b) Review remedial and corrective actions prescribed by a sponsoring organization which address the deficiencies of the quality control policies and procedures of a reviewed practitioner or firm;

     (c) Monitor the remedial and corrective actions implemented by a sponsoring organization to determine compliance by a reviewed practitioner or firm;

     (d) Establish a process of accepting a report which facilitates the exchange of viewpoints among committee members, a sponsoring organization or a report acceptance body; and

     (e) Communicate to the Board on a recurring basis:

          (1) Problems experienced by a practitioner or firm enrolled in a practice-monitoring program in the systems of quality control of the practitioner or firm, as noted in the peer reviews conducted by the sponsoring organization;

          (2) Problems experienced in the implementation of the practice-monitoring program; and

          (3) A summary of the historical results of the practice-monitoring program.

     7.  The peer review oversight committee shall make periodic recommendations to the Board, as determined by the Board but not less than annually, as to the continuing qualifications of each sponsoring organization as an approved sponsoring organization.

     8.  Information concerning a specific firm or peer reviewer obtained by the peer review oversight committee during oversight activities must be kept confidential, and the identity of the firm or reviewer must not be reported to the Board. Reports submitted to the Board must not contain information concerning specific registrants, firms or reviewers.

     (Added to NAC by Bd. of Accountancy by R068-17, eff. 5-16-2018)

     NAC 628.573  Regional peer review oversight committee: Participation by Board; functions. (NRS 628.120, 628.170, 628.386)  The Board may arrange to participate with a regional peer review oversight committee. If the Board makes such arrangements, the regional peer review oversight committee has the authority and shall perform the functions set forth in subsections 6, 7 and 8 of NAC 628.572.

     (Added to NAC by Bd. of Accountancy by R068-17, eff. 5-16-2018)

     NAC 628.575  Cycle for review of reports; notification of practitioners. (NRS 628.120, 628.160, 628.386)

     1.  The Board will review the reports submitted by practitioners pursuant to NAC 628.550 to 628.590, inclusive, to determine whether the practitioners have complied with applicable standards of reporting on a 3-year cycle and will assign one-third of the practitioners who hold a live permit or current certificate in this State to each year of the cycle.

     2.  Each calendar year, the Board will notify each practitioner who is required for that year to submit to the Board a copy of the practice-monitoring documents or a transmittal form indicating that no audit, review, full disclosure compilation or attestation reports were issued by the practitioner in the previous year.

     3.  The 3-year cycle established pursuant to this section does not affect the requirements for the annual renewal of office registrations or permits contained in NRS 628.370 and 628.380.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008; A by R046-13, 12-23-2013; R068-17, 5-16-2018)

     NAC 628.580  Required enrollment in program; submission and verification of practice-monitoring documents; exempt practitioners; required participation in national uniform system. (NRS 628.120, 628.160, 628.386)

     1.  Except as otherwise provided in subsection 4, a practitioner who performs audit, review, full disclosure compilation or attestation services shall enroll in a practice-monitoring program, which is approved by the Board, to ensure that he or she is maintaining the standards of the profession.

     2.  If a practitioner enrolls in a practice-monitoring program, the practitioner shall submit to the Board the practice-monitoring documents of the practice-monitoring program during the year in which he or she is assigned to submit the practice-monitoring documents pursuant to NAC 628.575. The Board may extend the deadline for the submission of practice-monitoring documents to the Board by a practitioner.

     3.  The Board may verify the validity of the determinations in the practice-monitoring documents submitted by the practitioner. The Board may request from the practitioner any document or information necessary to further the verification of the validity of the practice-monitoring process or findings. The failure of a practitioner to provide any document or information requested by the Board pursuant to this subsection constitutes grounds for disciplinary action.

     4.  A practitioner who does not perform audit, review, full disclosure compilation or attestation services shall report these facts to the Board on a transmittal form. The form must be accompanied by an affirmation by the practitioner that the statements contained in the form are true. The practitioner is exempt from the requirements of NAC 628.550 to 628.590, inclusive, only for that period during which the practitioner does not perform audit, review, full disclosure compilation or attestation services. If a practitioner who is exempt from enrolling in a practice-monitoring program pursuant to this subsection enters into an engagement to perform audit, review, full disclosure compilation or attestation services, the practitioner must notify the Board not more than 60 days after the date of entering into such engagement and must enroll in a practice-monitoring program not more than 18 months after the date upon which he or she enters into the engagement.

     5.  A practitioner who enrolls in a practice-monitoring program must opt into the Facilitated State Board Access, as administered by the American Institute of Certified Public Accountants, or other national uniform system approved by the Board, which reflects the results of a peer review of the practitioner.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008; A by R046-13, 12-23-2013; R117-15, 4-4-2016; R068-17, 5-16-2018)

     NAC 628.585  Deficient or marginal practice-monitoring documents; refusal to comply with determinations in practice-monitoring documents. (NRS 628.120, 628.160, 628.386)

     1.  If the Board determines that the practice-monitoring documents submitted by a practitioner are deficient or marginal with respect to any applicable professional standard, the Board may require the practitioner to:

     (a) Correct any deficiency within a specific period;

     (b) Provide a plan to ensure that a similar occurrence will not occur;

     (c) Submit to the Board practice-monitoring documents more frequently than the practitioner was scheduled to submit such documents to the Board;

     (d) Complete successfully continuing education that is specified by the Board;

     (e) Maintain a library of reference material; or

     (f) Submit to the Board, or its designated representative, the reports developed as a result of the practitioner’s engaging in audit, review, full disclosure compilation or attestation services, for review by the Board at the expense of the practitioner, before such reports are provided to the clients of the practitioner.

     2.  If a practitioner refuses to comply with the determinations in the practice-monitoring documents, the Board may initiate disciplinary action against the practitioner pursuant to NRS 628.390.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008; A by R068-17, 5-16-2018)

     NAC 628.590  Confidentiality. (NRS 628.120, 628.160, 628.386)

     1.  Any practice-monitoring document or other documentation submitted to the Board pursuant to NAC 628.550 to 628.590, inclusive, is confidential.

     2.  Any action taken by the Board pursuant to NAC 628.550 to 628.590, inclusive, which does not result in the Board’s initiating disciplinary action against a practitioner pursuant to NRS 628.390 is confidential.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008; A by R117-15, 4-4-2016; R068-17, 5-16-2018)

PRACTICE BEFORE THE BOARD

     NAC 628.850  Definitions. (NRS 628.120, 628.160)  As used in NAC 628.850 to 628.975, inclusive, unless the context otherwise requires, the words and terms defined in NAC 628.855 to 628.875, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.855  “Contested case” defined. (NRS 628.120, 628.160)

     1.  “Contested case” and “case” have the meaning ascribed to “contested case” in NRS 233B.032.

     2.  A final decision of the Board approving or denying an application for issuance or renewal of a license is not a contested case for the purposes of this chapter.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.860  “License” defined. (NRS 628.120, 628.160)  “License” means any license, certificate, registration, permit or similar type of authorization issued by the Board.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.865  “Licensee” defined. (NRS 628.120, 628.160)  “Licensee” means a person who holds any license, certificate, registration, permit or similar type of authorization issued by the Board.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.870  “Prosecutor” defined. (NRS 628.120, 628.160)  “Prosecutor” means:

     1.  The Attorney General or a deputy attorney general who prosecutes a contested case pursuant to this chapter;

     2.  If the Attorney General and the deputies of the Attorney General are disqualified to act in such a matter, an attorney appointed by the Attorney General to prosecute a contested case pursuant to this chapter; or

     3.  If the Board is authorized to employ or retain attorneys other than the Attorney General and the deputies of the Attorney General, an attorney employed or retained by the Board to prosecute a contested case pursuant to this chapter.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.875  “Records” defined. (NRS 628.120, 628.160)  “Records” has the meaning ascribed to it in NRS 622A.080.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.880  “Conduct discreditable to the profession of public accounting or which reflects adversely upon the fitness of the person to engage in the practice of public accounting” interpreted. (NRS 628.120, 628.160)  The Board will interpret the term “conduct discreditable to the profession of public accounting or which reflects adversely upon the fitness of the person to engage in the practice of public accounting” as used in paragraph (j) of subsection 1 of NRS 628.390 to include, without limitation:

     1.  Failure by a licensee to provide information or documents to the Board, its staff or its investigators upon a reasonable request in the course of an investigation or prosecution of an administrative matter;

     2.  Failure by a licensee to comply with a subpoena from the Board;

     3.  Failure to abide by or comply with an order of the Board; and

     4.  Making a false statement to the Board, its staff or its investigators in the course of an investigation or prosecution of an administrative matter.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.885  “Suspension, revocation or placing on probation of the right to practice before any state or federal agency” interpreted. (NRS 628.120, 628.160)  The Board will interpret the term “suspension, revocation or placing on probation of the right to practice before any state or federal agency” as used in paragraph (h) of subsection 1 of NRS 628.390 to include any surrender of a license while the licensee is under investigation or has been charged with any violation in a disciplinary or administrative matter.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.890  Election of Board to follow provisions of NRS 622A.150. (NRS 622A.120, 628.120, 628.160)  Pursuant to subsection 2 of NRS 622A.120, the Board elects to follow the provisions of NRS 622A.150.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.895  Complaints issued by Board; requirements for notice of hearing; examination of documents; service of certain documents. (NRS 628.120, 628.160, 628.410)

     1.  A complaint issued by the Board will include:

     (a) A short and plain statement of the matters which are asserted or charged;

     (b) References to any particular sections of chapter 628 of NRS, the rules of professional conduct or the regulations of the Board which are asserted to have been involved in the complaint; and

     (c) A notice of hearing served pursuant to subsection 2 of NRS 628.410.

     2.  A notice of hearing served pursuant to subsection 2 of NRS 628.410 will be accompanied by:

     (a) A brief statement of:

          (1) The date, time and place of the hearing;

          (2) The right of the licensee to examine reports and evidence in advance of the hearing; and

          (3) The right to appear with counsel at the hearing, to present evidence and to appeal an adverse decision.

     (b) Notice that a copy of this chapter and chapter 628 of NRS may be obtained at the Internet addresses http://www.leg.state.nv.us/nac and http://www.leg.state.nv.us/nrs, respectively.

     (c) Notice of whether the case will be governed by the provisions of NAC 628.925 to 628.945, inclusive.

     3.  Except for documents and information that are privileged by law, a licensee has the right in advance of the hearing to examine and copy any report of an investigation and documentary or testimonial evidence and summaries of evidence in the Board’s possession relating to the subject of the complaint. The right of examination may be exercised by the licensee or his or her attorney or agent at the Board’s office where the records are kept, during regular business hours, if written notice is given 3 days in advance. Copies of any documents designated for copying will be promptly furnished. The Board may charge a fee for the copying.

     4.  The complaint and notice of hearing must be served personally or by registered or certified mail upon the licensee at the last known address of the licensee contained in the records of the Board. If service is by registered or certified mail, the complaint and notice of hearing shall be deemed to have been served on the date on which they are mailed, regardless of when or whether the licensee accepts the registered or certified mail.

     [Bd. of Accountancy, Art. 9 §§ 1-3, eff. 5-13-82] — (NAC A by R046-13, 12-23-2013) — (Substituted in revision for NAC 628.260; 628.430; R117-15, 4-4-2016) — (Substituted in revision for NAC 628.260; 628.430)

     NAC 628.900  Conduct of hearing. (NRS 628.120, 628.410)

     1.  A hearing on a complaint will be conducted by the Board or a member of the Board appointed by the Board to serve as hearing officer.

     2.  The order of the proceedings is as follows:

     (a) Statements and evidence supporting the complaint may be presented by the investigating officer, if any, by a member of the Board designated for this purpose or by counsel.

     (b) Statements and evidence may be presented by the respondent, or in the case of a firm through a partner, officer, director, member or shareholder, or by counsel, or by both.

     (c) Rebuttal evidence in support of the complaint may be presented.

     (d) Surrebuttal evidence of the respondent may be presented.

     (e) Closing statements may be made.

     (f) If the proceeding is conducted by a member of the Board appointed by the Board to serve as hearing officer, the hearing officer shall present his or her findings and recommendations to the Board.

     (g) The decision of the Board will be rendered.

     3.  The hearing officer, members of the Board, the respondent and the person presenting the complaint may question, examine or cross-examine any witness.

     4.  The burden of presenting evidence to support a fact or position rests on the proponent of that fact or position.

     5.  The hearing may be continued with recesses as determined by the Board or the hearing officer.

     6.  The Board or the hearing officer may set reasonable time limits for oral presentation.

     7.  Exhibits must be marked and preserved along with the stenographic transcript as part of the record of the hearing.

     [Bd. of Accountancy, Art. 9 § 4, eff. 5-13-82] — (NAC A 2-6-87; 12-13-96) — (Substituted in revision for NAC 628.440)

     NAC 628.905  Rules of procedure and evidence; burden of proof. (NRS 628.120, 628.160)

     1.  Except as otherwise provided in this chapter or chapter 628 of NRS, the Board or a hearing panel or officer is not bound by strict rules of procedure or rules of evidence when conducting a hearing, except that evidence must be taken and considered in the hearing pursuant to NRS 233B.123.

     2.  In all disciplinary proceedings, the party that bears the burden of proof for a particular proposition must prove that proposition by a preponderance of the evidence.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.910  Notice of governing provisions; findings and recommendations; consolidation of cases. (NRS 628.120, 628.160)

     1.  The prosecutor shall, in the notice of hearing which accompanies a complaint pursuant to NAC 628.895, notify the licensee if the prosecutor intends for the case to be governed by the provisions of NAC 628.925 to 628.945, inclusive. If the notice of hearing does not include such a notification, the licensee may file a written notice with the Board within 20 days after the date of service of the complaint to request that the case be governed by the provisions of NAC 628.925 to 628.945, inclusive.

     2.  If a case is tried before a hearing panel or officer, the findings and recommendations of the hearing panel or officer do not become final unless they are approved by the Board after review. In reviewing the findings and recommendations of the hearing panel or officer, the Board may:

     (a) Approve the findings and recommendations, with or without modification;

     (b) Reject the findings and recommendations and remand the case to the hearing panel or officer;

     (c) Reject the findings and recommendations and order a hearing de novo before the Board; or

     (d) Take any other action that the Board deems appropriate to resolve the case.

     3.  The Board or the hearing panel or officer, with the approval of the Board, may consolidate two or more cases if it appears that the cases involve common issues of law or fact and the interests of the parties will not be prejudiced by the consolidation.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.915  Appearance; representation by attorney; standards of conduct; withdrawal from representation; sanctions; costs of defense. (NRS 628.120, 628.160)

     1.  Except as otherwise provided in subsection 4 of NRS 628.410, in any contested case against a licensee pursuant to this chapter and chapter 628 of NRS, the licensee may appear on his or her own behalf or the licensee may be represented by:

     (a) An attorney licensed to practice law in this State; or

     (b) An attorney licensed to practice law in another state who is properly associated with an attorney licensed to practice law in this State and who provides a certificate of good standing from the licensing authority of the other state.

     2.  An attorney representing a licensee shall:

     (a) Ensure that his or her conduct complies with the Nevada Rules of Professional Conduct; and

     (b) Conform to all standards of ethical and courteous behavior required in the courts of this State.

     3.  An attorney may withdraw from representing a licensee upon notice to the licensee and the Board or hearing panel or officer. The notice must include the reason for the requested withdrawal. The Board or hearing panel or officer may deny the request if there may be an unreasonable delay in the case or the substantial rights of the licensee may be prejudiced.

     4.  If the Board or hearing panel or officer finds that an attorney has violated any provision of this section, the Board or hearing panel or officer may bar the attorney from participating in the case or may impose such other sanctions as the Board or hearing panel or officer deems appropriate.

     5.  A licensee is responsible for all costs related to the presentation of his or her defense.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.920  Answer; amendment of complaint; continuance; inclusion of pleadings in record. (NRS 628.120, 628.160)

     1.  After being served with the complaint pursuant to NAC 628.895, the licensee may, but is not required to, file an answer to the complaint. The licensee may file such an answer not later than 20 days after the date of service of the complaint.

     2.  The prosecutor may amend the complaint at any time before the hearing. If the prosecutor amends the complaint before the hearing, the prosecutor shall:

     (a) File the amended complaint with the Board or hearing panel or officer; and

     (b) Serve the licensee with the amended complaint.

     3.  After being served with an amended complaint, the licensee may do any or all of the following:

     (a) File an answer to the amended complaint. The licensee may file such an answer not later than 20 days after the date of service of the amended complaint or not later than the date of the hearing, whichever date is sooner.

     (b) Move for a continuance of the hearing. The Board or hearing panel or officer shall grant the continuance if the licensee demonstrates that:

          (1) The amendment materially alters the allegations in the complaint; and

          (2) The licensee does not have a reasonable opportunity to prepare a defense against the amended complaint before the date of the hearing.

     4.  The prosecutor may amend the complaint at the time of the hearing if the amendment is not considered material and the substantial rights of the licensee would not be prejudiced by the amendment.

     5.  The complaint, any amended complaint and any answer filed by the licensee must be made part of the record at the hearing.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.925  Discovery; limitations on interrogatories and depositions. (NRS 628.120, 628.160)

     1.  At any time after being served with a complaint pursuant to NAC 628.895, and not later than 20 days before the scheduled date for the hearing on the matter, the licensee may file with the Board or hearing panel or officer a written discovery request for a copy of all documents and other evidence intended to be presented by the prosecutor in support of the case and a list of proposed witnesses.

     2.  The investigative file for the case is not discoverable unless the prosecutor intends to present materials from the investigative file as evidence in support of the case. The investigative file for the case includes all communications, records, affidavits or reports acquired or created as part of the investigation of the case, whether or not acquired through a subpoena related to the investigation of the licensee. The prosecutor is not required to produce or provide any document that is privileged by law.

     3.  A party may not serve any interrogatories on another party or take any depositions relating to the case.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.930  Meeting or conference of parties before hearing. (NRS 628.120, 628.160)  The parties to a disciplinary proceeding shall, not later than 20 days before the hearing, meet or confer and:

     1.  Exchange copies of all documents that each party intends to offer as evidence in support of its case.

     2.  Identify, describe or produce all tangible things, other than documents, that each party intends to offer as evidence in support of its case and, if requested, arrange for the opposing party to inspect, copy, test or sample such evidence under reasonable supervision.

     3.  Exchange written lists of persons that each party intends to call as witnesses in support of its case. The list must identify each witness by name and position and, if known, business address. If no business address is available, the party intending to call the witness shall disclose the home address of the witness or make the witness available for service of process. The list must also include, for each witness, a summary of the proposed testimony and the purpose for which the witness will be called.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.935  Prehearing conference. (NRS 628.120, 628.160)

     1.  The President or presiding officer of the Board, the chair or presiding officer of the hearing panel or the hearing officer may, upon his or her own motion or a motion by a party, hold a prehearing conference not later than 10 days before a hearing to:

     (a) Formulate or simplify the issues involved in the proceeding;

     (b) Obtain an admission of fact or stipulation of the parties;

     (c) Arrange for the exchange of prefiled direct testimony of a witness ordered by the Board or hearing panel or officer;

     (d) Limit the number of witnesses;

     (e) Rule on any pending procedural motions, motions for discovery or motions for protective orders; or

     (f) Establish any other procedure which may expedite the orderly conduct and disposition of the proceeding.

     2.  Notice of any prehearing conference must be provided to all parties to the proceeding. Except as otherwise ordered for good cause shown, the failure of a party to attend a prehearing conference constitutes a waiver of any objection to the agreements reached or rulings made at the prehearing conference.

     3.  The actions taken and the agreements made at a prehearing conference:

     (a) Must be made part of the record;

     (b) Control the course of subsequent proceedings unless modified by the Board or hearing panel or officer; and

     (c) Are binding upon the parties to the proceeding and any person who subsequently becomes a party to the proceeding.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.940  Motions. (NRS 628.120, 628.160)

     1.  Except as otherwise provided in this chapter or chapter 628 of NRS, or as permitted by the Board or hearing panel or officer, to request a ruling from the Board or hearing panel or officer on any issue of law or procedure in a case, a party must file a written motion with the Board or hearing panel or officer.

     2.  A party may file only the following prehearing motions:

     (a) A motion requesting a continuance or an extension of time.

     (b) A motion requesting, for good cause, the recusal of a member of the Board, a member of the hearing panel or the hearing officer from participation in the case.

     (c) A motion requesting the separation of consolidated cases.

     (d) A motion requesting a more definite statement regarding the allegations in the complaint on the ground that there is not enough information in the complaint to formulate a defense.

     (e) A motion requesting dismissal of the complaint for failure to state facts which, if true, would form a sufficient basis for discipline.

     (f) With prior leave of the President or presiding officer of the Board, the chair or presiding officer of the hearing panel or the hearing officer, any other motion requesting appropriate action or relief before the date of the hearing.

     3.  A prehearing motion must be filed with the Board or hearing panel or officer at least 20 days before the date of the hearing. A party who opposes the motion may file a response to the prehearing motion not later than 7 days after the date of service of the motion. No reply may be filed by the moving party. Upon a showing of good cause, the President or presiding officer of the Board or the hearing officer may allow a party to file such a motion or response within such other times as he or she deems appropriate.

     4.  The President or presiding officer of the Board, the chair or presiding officer of the hearing panel or the hearing officer shall rule on any prehearing motion before or on the date of the hearing. A hearing panel may authorize the presiding officer of the hearing panel to rule on any prehearing motion before the date of the hearing.

     5.  A party may file only the following motions after the commencement of the hearing:

     (a) After the prosecutor has concluded the presentation of his or her case in chief, a motion requesting dismissal of the complaint for failure of the prosecutor to meet the burden of proof.

     (b) With leave of the Board or hearing panel or officer, any other motion requesting appropriate action or relief during the hearing.

     6.  A party may file only the motions set forth in NAC 628.945 after the close of the hearing.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.945  Posthearing motions; rehearing and reconsideration; vacation and modification of final decision. (NRS 628.120, 628.160)

     1.  After the close of the hearing, a party may file only the following motions:

     (a) A motion requesting a rehearing.

     (b) A motion requesting reconsideration of the findings and recommendations of the hearing panel or officer or the final decision of the Board.

     (c) A motion requesting that the final decision of the Board be vacated or modified.

     (d) With leave of the Board or hearing panel or officer, any other motion requesting appropriate action or relief after the close of the hearing.

     2.  A motion requesting a rehearing or reconsideration must be filed with:

     (a) The hearing panel or officer not later than 15 days after the date of service of the findings and recommendations of the hearing panel or officer.

     (b) The Board not later than 15 days after the date of service of the final decision of the Board.

     3.  A party who opposes a motion filed pursuant to this section may file a response to the motion not later than 7 days after the date of service of the motion.

     4.  The Board may authorize the President or presiding officer of the Board to rule on the motion. The hearing panel may authorize the chair or presiding officer of the hearing panel to rule on the motion.

     5.  A motion requesting a rehearing or reconsideration may be based only on one of the following grounds:

     (a) Newly discovered or available evidence that could not have been presented at the hearing.

     (b) Error in the hearing or in the findings and recommendations or the decision that would be grounds for reversal of the findings and recommendations or decision.

     (c) The need in the public interest for further consideration of the issues or evidence, or both.

     6.  The Board will, or the hearing panel or officer shall, enter an order ruling on a motion requesting a rehearing or reconsideration not later than 25 days after the date on which the motion was filed. A copy of the order must be served on each party. The Board or hearing panel or officer may:

     (a) Deny the motion;

     (b) Order a rehearing or partial rehearing;

     (c) Order reconsideration of the findings and recommendations or decision; or

     (d) Direct other proceedings as the Board or hearing panel or officer deems appropriate.

     7.  If the Board or hearing panel or officer orders a rehearing, the rehearing must be confined to the issues upon which the rehearing was ordered.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.950  Limitations on communications with Board, hearing panel or hearing officer. (NRS 628.120, 628.160)  A party shall not communicate either directly or indirectly with any member of the Board, any member of the hearing panel or the hearing officer about any issue of fact or law related to the case unless the communication:

     1.  Is part of a pleading, motion or other document that is properly filed and served on all parties; or

     2.  Occurs while all parties are present or occurs during a meeting or hearing for which all parties have been given proper notice, whether or not all parties are present at that meeting or hearing.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.955  Stipulations. (NRS 628.120, 628.160)

     1.  With the approval of the President or presiding officer of the Board, the chair or presiding officer of the hearing panel or the hearing officer presiding over and conducting a hearing concerning a disciplinary proceeding, the parties to the disciplinary proceeding may stipulate as to any fact in issue, either by written stipulation introduced in evidence as an exhibit or by an oral statement made upon the record. The stipulation is binding only upon the parties so stipulating and is not binding upon the Board or hearing panel or officer.

     2.  A stipulation may be considered by the Board or hearing panel or officer as evidence at a hearing concerning the disciplinary proceeding. Notwithstanding the stipulation of the parties, the Board or hearing panel or officer may require proof of the facts stipulated to by independent evidence.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.960  Effect of failure to appear. (NRS 628.120, 628.160)

     1.  If a party fails to appear at a scheduled hearing and a continuance has not been scheduled or granted, any party who is present at the hearing may make an offer of proof that the absent party was given sufficient legal notice. Upon a determination by the Board or hearing panel or officer that the absent party was given sufficient legal notice, the Board or hearing panel or officer may proceed to consider and dispose of the case without the participation of the absent party.

     2.  If the licensee fails to appear at a hearing, the Board or hearing panel or officer may accept the allegations against the licensee in the complaint as true.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.965  Judicial review. (NRS 628.120, 628.160)

     1.  Except as otherwise provided in the Nevada Constitution, a party may not seek any type of judicial intervention or review of a contested case until after the contested case results in a final decision of the Board.

     2.  Except as otherwise provided in this section, a party may seek judicial review of a final decision of the Board in accordance with the provisions of chapter 233B of NRS that apply to a contested case.

     3.  Notwithstanding the provisions of subsection 1 of NRS 233B.131 regarding transmittal of the record of the proceeding under judicial review:

     (a) The party filing the petition for judicial review shall provide an original or certified copy of the transcript of the hearing to the reviewing court; and

     (b) The Board will provide an original or certified copy of the remainder of the record of the proceeding under review to the reviewing court.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.970  Requirements in cases involving revocation of license; procedure for issuance of license. (NRS 628.120, 628.160)

     1.  If the Board revokes the license of a person in a contested case pursuant to this chapter and chapter 628 of NRS, the Board will, in the final decision of the Board ordering the revocation, prescribe a period during which the person may not apply for a new license. The period must not be more than 5 years.

     2.  In addition to any other requirements set forth in this chapter or chapter 628 of NRS, if a person applies for a new license after his or her previous license was revoked in a contested case pursuant to this chapter and chapter 628 of NRS, the person shall:

     (a) Submit an application on a form supplied by the Board.

     (b) Satisfy all the current requirements for the issuance of an initial license.

     (c) Attest that, in this State or any other jurisdiction:

          (1) The person has not, during the period of revocation, violated any state or federal law governing the practice of public accounting or any related occupation or profession, and no criminal or civil action involving such a violation is pending against the person; and

          (2) No other regulatory body having jurisdiction over the practice of public accounting or any related occupation or profession has, during the period of revocation, taken disciplinary action against the person, and no such disciplinary action is pending against the person.

     (d) Satisfy any additional requirements for reinstatement of the license prescribed by the Board, including, without limitation, any applicable requirement of NAC 628.110.

     3.  The Board will consider each application for a license submitted pursuant to this section. In determining whether to issue the license, the Board will consider the following criteria:

     (a) The severity of the act resulting in the revocation of the license.

     (b) The conduct of the person after the revocation of the license.

     (c) The amount of time elapsed since the revocation of the license.

     (d) The veracity of the attestations made by the person pursuant to subsection 2.

     (e) The degree of compliance by the person with any additional requirements for issuance of the license prescribed by the Board.

     (f) The degree of rehabilitation demonstrated by the person.

     (g) Any other information the Board deems relevant.

     4.  If the Board issues the license, the Board may place any conditions, limitations or restrictions on the license as it deems necessary.

     5.  The Board may deny issuance of the license if the person fails to comply with any provision of this section.

     6.  The Board’s denial of issuance of the license is not a contested case for the purposes of judicial review.

     (Added to NAC by Bd. of Accountancy by R117-15, eff. 4-4-2016)

     NAC 628.975  Publication of decisions. (NRS 628.120, 628.160, 628.390)  Decisions of the Board that result from a contested case will be made public. Decisions to dismiss a matter before the filing of a complaint pursuant to NAC 628.895 will not be made public, unless the respondent requests that this be done.

     [Bd. of Accountancy, Art. 9 § 6, eff. 5-13-82] — (Substituted in revision for NAC 628.280) — (NAC A by R117-15, eff. 4-4-2016) — (Substituted in revision for NAC 628.280; 628.450)