*Not an Official Version
*Not an Official Version
309-B:1 Citation. – This chapter may be cited as the "Accountancy Act of 1999.''
309-B:2 Purpose. – It is the policy of the state of New Hampshire and the purpose of this chapter, to promote the reliability of information that is used for guidance in financial transactions or for accounting for or assessing the financial status or performance of commercial, noncommercial, and governmental enterprises.
309-B:3 Definitions. – In this chapter:
(1) Any audit or other
engagement to be performed in accordance with the American Institute of
Certified Public Accountants' Statements on Auditing Standards (SAS).
(2) Any review of a
financial statement to be performed in accordance with the American Institute of
Certified Public Accountants' Statements on Standards for Accounting and Review
Services (SSARS).
(3) Any examination of
prospective financial statements to be performed in accordance with the American
Institute of Certified Public Accountants' Statements on Standards for
Attestation Engagements (SSAE).
(4) Any engagement to be
performed in accordance with the Public Company Accounting Oversight Board's
Auditing Standards.
(b) The Statements on Standards specified
in subparagraph (a) shall be adopted by reference by the board pursuant to
rulemaking and shall be those developed for general application by recognized
national accountancy organizations such as the American Institute of Certified
Public Accountants.
II. "Board'' means the
III. "Certificate'' means a certificate as a certified public
accountant issued under
III-a. "Compilation'' means providing a service to be
performed in accordance with the American Institute of Certified Public
Accountants' Statements on Standards for Accounting and Review Services (SSARS)
that is presenting in the form of financial statements, information that is the
representation of management without undertaking to express any assurance on the
statements.
IV. "CPA firm'' means a sole proprietorship, a corporation, a
partnership including a limited liability partnership, a limited liability
company including a professional limited liability company, or any other legally
authorized association issued a license under
V. "Financial Accounting Foundation'' means the independently
incorporated organization, the board of trustees of which consists of members of
organizations having special knowledge of, and interest in, financial reporting,
that is responsible for the oversight and funding for the Financial Accounting
Standards Board and the Governmental Accounting Standards Board.
VI. "Financial Accounting Standards Board'' or "FASB'' means
the designated organization formed by the Financial Accounting Foundation or its
successor organization that establishes the standards of financial accounting
and reporting for nongovernmental entities recognized by the United States
Securities and Exchange Commission and the American Institute of Certified
Public Accountants.
VIII. "License'' means a certificate issued under
IX. "Licensee'' means the holder of a license as defined in
X. "Manager'' means a manager of a professional limited
liability company established under
XI. "Member'' means a member of a professional limited
liability company established under
XII. "Peer review'' means a study, appraisal, or review of
one or more aspects of the professional work of a person or firm that performs
attest services, by a person or persons who hold certificates and who are not
affiliated with the person or firm being reviewed.
XIII. "Permit'' means a permit to practice as a CPA firm
issued under
XIII-a. "Principal place of business'' means the office
location designated by a licensee for purposes of substantial equivalency and
reciprocity.
XIV. "Professional'' means arising out of or related to the
specialized knowledge or skills associated with certified public accountants.
XV. "Report,'' when used with reference to financial
statements, means an opinion, report, or other form of language that states or
implies assurance as to the reliability of any financial statements, and that
also includes or is accompanied by any statement or implication that the person
or firm issuing it has special knowledge or competence in accounting or
auditing. Such a statement or implication of special knowledge or competence may
arise from use by the issuer of the report of names or titles indicating that
such person or firm is an accountant or auditor, or from the language of the
report itself. The term "report'' shall include any form of language which
disclaims an opinion when such form of language is conventionally understood to
imply any positive assurance as to the reliability of the financial statements
referred to or special competence on the part of the person or firm issuing such
language, and it shall include any other form of language that is conventionally
understood to imply such assurance or such special knowledge or competence.
XVI. "Rule'' means any rule adopted by the board under
XVIII. "Substantial equivalency'' is a determination by the
board or its designee that the education, examination, and experience
requirements contained in the statutes and administrative rules of another
jurisdiction are comparable to or exceed the education, examination, and
experience requirements contained in the Uniform Accountancy Act, or that the
individual certified public accountant's education, examination, and experience
qualifications are comparable to or exceed the education, examination, and
experience requirements contained in the Uniform Accountancy Act. In
ascertaining substantial equivalency as used in this statute, the board shall
take into account the qualifications without regard to the sequence in which
experience, education, or examination requirements were attained.
XIX. "Uniform Accountancy Act'' means the July 27, 2007
edition of the model legislation developed jointly by the American Institute of
Certified Public Accountants and the National Association of State Boards of
Accountancy.
309-B:4 Board of Accountancy; Appointment;
Disposition of Fees; Rulemaking. –
(b) Members of the board shall serve
staggered 5-year terms. Members serving terms of less than 5 years under prior
law shall serve out such shorter terms. A vacancy occurring during a term shall
be filled by appointment of the governor and approval of council for the
unexpired portion of such term. Upon the expiration of a member's term, such
member shall continue to serve until a successor shall have been appointed and
taken office.
(c) No person who has served 2 successive
complete terms shall be eligible for reappointment, but appointment to fill an
unexpired term shall not be considered a complete term for this purpose. All
terms of service under prior law shall be considered in determining the
completion of 2 consecutive terms.
(d) Any member of the board whose
certificate under
II. (a) The board shall elect annually from among its members
a chairperson, a secretary-treasurer, and such other officers as the board may
deem appropriate.
(b) The board shall meet at such times and
places as may be fixed by the board. Meetings of the board shall be open to the
public, except insofar as they are concerned with investigations under
(c) The board shall have a seal which shall
be judicially noticed.
(d) The board shall retain or arrange for
the retention of all applications, all documents under oath that are filed with
the board, and records of its proceedings. The board shall maintain a registry
of the names and addresses of all licensees under this chapter. In any
proceeding in court, civil or criminal, arising out of or founded upon any
provision of this chapter, copies of any of the records certified as true copies
under the seal of the board shall be admissible in evidence as tending to prove
the contents of said records.
III. (a) Each member of the board shall be paid $100 for each
day or portion of a day spent in the discharge of official duties and shall be
reimbursed for actual and necessary expenses incurred in the discharge of
official duties.
(b) In addition to the amounts in
subparagraph (a), the secretary-treasurer shall be compensated in an amount to
be determined by the board, but not to exceed $5,000.
IV. All moneys collected by the board from fees authorized
under this chapter shall be received and accounted for by the board, shall be
deposited in the state treasury to the credit of the board, and shall not lapse.
Administration expenses shall be limited to the funds collected and may include,
but shall not be limited to, the costs of conducting investigations and of
taking testimony and procuring the attendance of witnesses before the board or
its committees; all legal proceedings taken under this chapter for the
enforcement of this chapter; and educational programs for the benefit of the
public or licensees and their employees. All fees prescribed by the board under
prior law shall remain in effect until the board shall prescribe a new schedule
of fees pursuant to
V. The board shall file an annual report of its activities
with the governor, the president of the senate, and the speaker of the house of
representatives. The report shall include a statement of all receipts and
disbursements and a listing of all current licensees under this chapter. The
board shall mail a copy of the annual report to any person requesting it, upon
payment of a reasonable charge.
VI. The board may employ an executive director,
investigators, and such other personnel as it deems necessary for administration
and enforcement under this chapter. It may appoint such committees or persons to
advise or assist it in such administration and enforcement, as it may see fit.
It may retain its own counsel to advise and assist it, in addition to such
advice and assistance as is provided by the department of justice.
VIII. The board shall adopt rules, pursuant to
(a) Rules governing the board's meetings
and conduct of its business.
(b) Rules of procedure governing the
conduct of investigations and hearings by the board.
(c) Rules specifying the educational and
experience qualifications required for all licensees, and the continuing
professional education required for renewal of certificates or registrations.
(d) Rules of professional conduct directed
to controlling the quality and integrity of the practice of public accountancy
by licensees, including, but not limited to, matters relating to independence,
integrity, objectivity, competence, technical standards, responsibilities to the
public, and responsibilities to clients.
(e) Rules on substantial equivalency for
implementation of
(f) Rules governing the manner and
circumstances of use of the titles "certified public accountant'', "CPA,''
"public accountant'' and "PA.''
(g) Rules regarding peer review as required
under this chapter. Such rules shall include conduct and cost parameters to
ensure that charges for the off-site peer review process are not excessive.
(h) The establishment of all fees required
under this chapter.
(i)
The establishment of administrative fines for
violations of this chapter.
(j) Such other rules as the board may
deem necessary or appropriate for implementing the provisions and purposes of
this chapter.
IX. In accordance with
X. All administrative, clerical, and business processing
functions of the board shall be transferred to the joint board of licensure and
certification, established in
309-B:5 Qualifications for a Certificate as a
Certified Public Accountant. –
I. The certificate of "certified public accountant'' shall be
granted to persons of good character who meet the education, experience, and
examination requirements of this section, who make application therefor pursuant
to
II. Good character for purposes of this section means the
lack of a history of dishonest or felonious acts.
III. The education requirements for a certificate shall be as
follows:
(a) Until
(b) After January 1, 2005 and until June
30, 2014, at least 120 semester hours of college education including a
baccalaureate or higher degree conferred by a college or university acceptable
to the board, the total educational program to include an accounting
concentration or equivalent as determined by board rule to be appropriate;
provided however, that candidates for a certificate may sit for the examination
described in paragraph IV if they have at least 120 semester hours of college
education including a baccalaureate degree conferred by a college or university
acceptable to the board, the total educational program to include an accounting
concentration or equivalent as determined by board rule to be appropriate.
(c) On or after July 1, 2014, at least 150
semester hours of college education including a baccalaureate or higher degree
conferred by a college or university acceptable to the board, the total
educational program to include an accounting concentration or equivalent as
determined by board rule to be appropriate; provided however, that candidates
for a certificate may sit for the examination described in paragraph IV if they
have at least 120 semester hours of college education including a baccalaureate
degree conferred by a college or university acceptable to the board the total
educational program to include an accounting concentration or equivalent as
determined by board rule to be appropriate. The applicant's degree shall include
30 semester hours of accounting courses. The accounting credits shall include
coverage in financial accounting auditing, taxation, and management accounting.
In addition, the degree shall include, or be supplemented by, 24 semester hours
of business courses other than accounting courses. These business courses may
include, but not be limited to, coverage in the areas of business law, business
information systems, finance, professional ethics, business organizations, and
economics.
IV. The examination required to be passed as a condition for
the granting of a certificate shall be held as often as the board may specify by
rule, and shall test the applicant's knowledge of the subjects of accounting and
auditing and such other related subjects as the board may specify by rule. The
time for holding such examination shall be determined by the board and may be
changed from time to time. The board shall prescribe by rule the methods of
applying for and conducting the examination, including methods for grading
papers and determining a passing grade required of an applicant for a
certificate, provided, however, that the board shall, to the extent possible,
see to it that the examination itself, the grading of the examination and the
passing grades are uniform with those applicable in all other states. The board
may make such use of all or any part of the Uniform Certified Public Accountant
Examination and Advisory Grading Service of the American Institute of Certified
Public Accountants, and may contract with third parties to perform such
administrative services with respect to the examination as it deems appropriate
to assist it in performing its duties under this section.
V. An applicant shall be required to pass all sections of the
examination provided for in paragraph IV in order to qualify for a certificate.
A passing grade for each section shall be 75. The applicant shall pass all
sections of the examination within 18 months of the examination at which the
first section was passed.
VI. An applicant shall be given credit for any and all
sections of an examination passed in another state if such credit would have
been given, under applicable requirements at that time, had the applicant taken
the examination in this state.
VIII. The board may charge, or provide for a third party
administering the examination to charge, each applicant a fee in an amount
prescribed by the board by rule, for each section of the examination or
reexamination taken by the applicant.
IX. The experience requirement shall consist of public
accounting experience in providing one or more kinds of services involving the
use of accounting or auditing skills, including the issuance of reports on
financial statements, or one or more kinds of management advisory, financial
advisory, or consulting services, or the preparation of tax returns or the
furnishing of advice on tax matters, or the equivalent, all of which was under
the direction of a licensee in any state in practice as a certified public
accountant or as a public accountant, or in any state in employment as a staff
accountant by a certified public accountant or anyone practicing public
accounting, or a combination of either of such types of experience and for the
following periods of time:
(a) Until June 30, 2014, 2 years for a
candidate with a 4-year college degree, or the equivalent, and one year for a
candidate holding a master's degree in accounting, taxation, finance, or
business administration.
(b) On or after
X. Experience obtained in the employment of a governmental
agency for the periods of time provided in paragraph IX in the following areas
shall be accepted by the board as qualifying experience under this section:
(a) In auditing the tax returns or books
and accounts of nongovernmental entities in 3 or more distinct lines of
commercial or industrial business in accordance with generally accepted auditing
standards under the direction of a licensee; or
(b) In auditing the books and accounts or
activities of 3 or more governmental agencies or distinct organizational units
in accordance with generally accepted auditing standards under the direction of
a licensee and reporting on their operations to a third party, to the Congress,
or to a state legislature; or
(c) In reviewing financial statements and
supporting material covering the financial condition and operations of
nongovernmental entities engaged in 3 or more distinct lines of commercial or
industrial business under the direction of a licensee to determine the
reliability and fairness of the financial reporting and compliance with
generally accepted accounting principles and applicable government regulations
for the protection of investors and consumers.
XI. [Repealed.]
309-B:6 Substantial Equivalency. –
I. The practice, privilege, and discipline for substantially
equivalent individuals shall be governed by the following provisions:
(a) An individual whose principal place of
business is not in this state and who holds a valid certificate or license as a
certified public accountant from any United States jurisdiction which the board
or its designee has verified to be in substantial equivalence with the certified
public accountant licensure requirements of the Uniform Accountancy Act shall be
presumed to have qualifications substantially equivalent to this state's
requirements and shall have all rights and privileges of licensees of this state
without the need to obtain a certificate under
(b) An individual whose principal place of
business is not in this state and who has a valid certificate or license as a
certified public accountant from any United States jurisdiction which the board
or its designee has not verified to be in substantial equivalence with the
certified public accountant licensure requirements of the Uniform Accountancy
Act shall be presumed to have qualifications substantially equivalent to this
state's requirements and shall have all rights and privileges of certificate
holders and licensees of this state without the need to obtain a certificate
under
II. A licensee of this state offering or rendering services
or using this state's certified public accountant designation in another state
shall be subject to disciplinary action in this state for an act committed in
another state for which the licensee would be subject to discipline in the other
state. Notwithstanding
III. Any individual licensee of another state exercising the
privileges afforded under subparagraph I(a) or (b) and the firm which employs
that licensee hereby simultaneously consents, as a condition of the grant of
this privilege:
(a) To the personal and subject matter
jurisdiction and disciplinary authority of the board;
(b) To comply with this chapter and the
rules of the board;
(c) That in the event the license from the
state of the individual's principal place of business is no longer valid, the
individual will cease offering or rendering professional services in this state
individually and on behalf of a firm; and
(d) To the appointment of the out-of-state
board of accountancy which issued their license as their agent upon whom process
may be served in any action or proceeding by this board against the licensee.
IV. An individual who qualifies for practice privileges under
this section who, for any entity with its home office in this state, performs
any of the following services may only do so through a firm which has obtained a
permit issued under
(a) Any financial statement audit or other
engagement to be performed in accordance with Statements on Auditing Standards;
(b) Any examination of prospective
financial information to be performed in accordance with Statements on Standards
for Attestation Engagements; or
(c) Any engagement to be performed in
accordance with PCAOB Auditing Standards.
309-B:7 Issuance and Renewal of Certificates;
Maintenance of Competency. –
I. The board shall grant or renew certificates to persons who
make application and demonstrate that their qualifications, including where
applicable the qualifications prescribed by
II. Certificates shall be initially issued, and renewed, for
periods of not more than 3 years. Annual periods shall coincide with the state's
fiscal year, beginning on July 1 and ending on the subsequent June 30.
Applications for such certificates shall be made in such form, and in the case
of applications for renewal, between such dates, as the board shall by rule
specify. The licensee shall have 60 days to renew the certificate. If the
renewal forms and fees are not submitted within 60 days after the expiration
date of the license, the licensee shall file an application for return to active
practice which shall be required to return to active status. A certificate shall
remain valid for the period of time that the board requires to act on the
application for renewal, provided that the renewal was submitted in accordance
with the rules adopted by the board. The board shall grant or deny any
application no later than 90 days after the application is filed in proper form.
In any case where the applicant seeks the opportunity to show that issuance or
renewal of a certificate was mistakenly denied, or where the board is not able
to determine whether it should be granted or denied, the board may issue to the
applicant a provisional certificate, which shall expire 90 days after its
issuance or when the board determines whether or not to issue or renew the
certificate for which application was made, whichever shall first occur.
III. With regard to applicants that are not eligible for
reciprocity under the substantial equivalency standard set out in
(a) The applicant passed the examination
required for issuance of the applicant's certificate with grades that would have
been passing grades at the time in this state;
(b) The applicant had at least 4 years of
experience outside of this state of the type described in
(c) If the applicant's certificate,
license, or permit was issued more than one year prior to the application for
issuance of an initial certificate under this section, that the applicant has
fulfilled the requirements of continuing professional education that would have
been applicable under paragraph IV of this section.
III-a. (a) As an alternative to the requirements of paragraph
III, a certificate holder licensed by another state who establishes his or her
principal place of business in this state shall request the issuance of a
certificate from the board prior to establishing such principal place of
business. The board shall issue a certificate to such person who obtains from
the NASBA National Qualification Appraisal Service verification that such
individual's CPA qualifications are substantially equivalent to the CPA
licensure requirements of the AICPA/NASBA Uniform Accountancy Act.
(b) An application under this paragraph may
be made through the NASBA Qualification Appraisal Service.
IV. The board may charge a fee to any licensee of another
state receiving a reciprocal certificate under this section, in accordance with
rules adopted by the board.
V. Persons requesting issuance of certificates under
paragraph IV of this section shall in their request list all states in which
they have applied for or hold certificates, or licenses, and list any past
denial, revocation, or suspension of a certificate or license and shall notify
the board, in writing, within 30 days after its occurrence, of any issuance,
denial, revocation, or suspension of a certificate or license by another state.
VI. An application under this section may be made through any
qualification service that the board may approve by rule.
VIII. The board shall charge a fee for each application for
initial issuance or renewal of a certificate under this section in an amount
prescribed by the board by rule.
IX. Applicants for initial issuance or renewal of
certificates under this section shall in their applications list all states in
which they have applied for or hold certificates, licenses, or permits and list
any past denial, revocation, or suspension of a certificate, license, or permit,
and each holder of or applicant for a certificate under this section shall
notify the board in writing, within 30 days after its occurrence, of any
issuance, denial, revocation, or suspension of a certificate, license, or permit
by another state.
X. The board shall issue a certificate to a holder of a
substantially equivalent foreign designation, granted in a foreign country,
provided that:
(a) The foreign authority which granted the
designation makes similar provision to allow a person who holds a valid
certificate issued by this state to obtain such foreign authority's comparable
designation; and
(b) The foreign designation:
(1) Was duly issued by a
foreign authority that regulates the practice of public accountancy and the
foreign designation has not expired or been revoked or suspended;
(2) Entitles the holder
to issue reports upon financial statements; and
(3) Was issued upon the
basis of educational, examination, and experience requirements established by
the foreign authority or by law; and
(c) The applicant:
(1) Received the
designation, based on educational and examination standards substantially
equivalent to those in effect in this state, at the time the foreign designation
was granted;
(2) Completed an
experience requirement, substantially equivalent to the requirement set out in
(3) Passed a uniform
qualifying examination in national standards acceptable to the board.
XI. An applicant under paragraph X shall in the application
list all jurisdictions, foreign and domestic, in which the applicant has applied
for or holds a designation to practice public accountancy, and each holder of a
certificate issued under this paragraph shall notify the board in writing,
within 30 days after its occurrence, of any issuance, denial, revocation, or
suspension of a designation or commencement of a disciplinary or enforcement
action by any jurisdiction.
XII. The board has the sole authority to interpret the
application of the provisions of paragraphs X and XI.
XIII. The board shall by rule require as a condition for
renewal of a certificate under this section, by any certificate holder who
issues compilation reports for the public other than through a CPA firm, that
such individual undergo, no more frequently than once every 3 years, a peer
review conducted in such manner as the board shall by rule specify, and such
review shall include verification that such individual has met the competency
requirements set out in professional standards for such services.
XIV. Upon the request of a licensee or certificate holder who
is a member of any reserve component of the armed forces of the
309-B:8 Firm Permits to Practice; Attest Experience
and Peer Review. –
I. The board shall grant or renew permits to practice as a
CPA firm to applicants that demonstrate their qualifications therefor in
accordance with this section.
(a) The following are required to hold a
permit issued under this section:
(1) Any firm with an
office in this state performing attest services as defined in
(2) Any firm with an
office in this state that uses the designation "CPAs'' or "CPA firm''; or
(3) Any firm that does
not have an office in this state but performs attest services described in
(b) A firm which does not have an office in
this state may perform services described in
(1) It has the
qualifications described in paragraphs III and VIII of this section; and
(2) It performs such
services through an individual with practice privileges under
(c) A firm which is not subject to the
requirements of subparagraphs (a)(3) or (b) of this paragraph may perform other
professional services while using the title "CPA'' or "CPA firm'' in the state
without a license issued under this section only if:
(1) It performs such
services through an individual with practice privileges under
(2) It can lawfully do so
in the state where said individuals with practice privileges have their
principal place of business.
II. Permits shall be initially issued and renewed for periods
of not more than 3 years. Annual periods shall coincide with the state's fiscal
year, beginning on July 1 and ending on the subsequent June 30. Applications for
such permits shall be made in such form and in the case of applications for
renewal, between such dates, as the board shall by rule specify. A permit shall
remain valid for the period of time that the board requires to act on the
application for renewal, provided that the renewal was submitted in accordance
with the rules adopted by the board. The board shall grant or deny any
application no later than 90 days after the application is filed in proper form.
In any case where the applicant seeks the opportunity to show that issuance or
renewal of a permit was mistakenly denied or where the board is not able to
determine whether it should be granted or denied, the board may issue to the
applicant a provisional permit, which shall expire 90 days after its issuance or
when the board determines whether or not to issue or renew the permit for which
application was made, whichever shall first occur.
III. An applicant for initial issuance or renewal of a permit
to practice under this section shall be required to show that:
(a) Notwithstanding any other provision of
law, at least a simple majority of the ownership of the firm, in terms of
financial interests and voting rights of all partners, officers, shareholders,
members or managers, belongs to holders of a certificate who are licensed in
some state of the United States and such partners, officers, shareholders,
members, or managers, whose principal place of business is in this state, and
who perform professional services in this state, hold a valid certificate issued
under
(b) Any CPA or PA firm may include
non-licensee owners provided that:
(1) The firm designates a
licensee of this state, or in the case of a firm which must have a permit
pursuant to
(2) All non-licensee
owners are active individual participants in the CPA or PA firm or affiliated
entities.
(3) The firm complies
with such other requirements as the board may impose by rule.
(c) Any individual licensee and any
individual qualifying for practice privileges under
(d) Any individual licensee and any
individual qualifying for practice privileges under
IV. An applicant for initial issuance or renewal of a permit
to practice under this section shall be required to register each office of the
firm within this state with the board and show that all attest services rendered
in this state are under the charge of a person holding a valid certificate
issued under
V. The board shall charge a fee for each application for
initial issuance or renewal of a permit under this section in an amount
prescribed by the board by rule.
VI. Applicants for initial issuance or renewal of permits
under this section shall in their application list all states in which they have
applied for or hold permits as CPA firms and list any past denial, revocation,
or suspension of a license or permit by any other state, and each holder of or
applicant for a permit under this section shall notify the board in writing,
within 30 days after its occurrence, of any change in the identities of
partners, officers, shareholders, members, or managers whose principal place of
business is in this state, any change in the number or location of offices
within the state, any change in the identity of the persons in charge of such
offices, and any issuance, denial, revocation, or suspension of license or
permit by any other state.
VIII. The board shall by rule require, on either a uniform or
random basis, as a condition to renewal of permits under this section, that
applicants undergo, no more frequently than once every 3 years, peer reviews
conducted in such manner as the board shall specify, and such peer review shall
include a verification by the reviewer that individuals in the firm who are
responsible for attest services and who sign or authorize someone to sign the
accountant's report on the financial statements on behalf of the firm meet the
experience requirements set out in professional standards for such services,
provided that such rule:
(a) Shall be adopted reasonably in advance
of the time when it first becomes effective;
(b) Shall include reasonable provision for
compliance by an applicant showing that it has, within the preceding 3 years,
undergone a peer review that is a satisfactory equivalent to peer review
generally required pursuant to this paragraph;
(c) Shall require, with respect to peer
reviews contemplated by subparagraph (b), that they be subject to oversight by
an oversight body established or sanctioned by board rule, which body shall
periodically report to the board on the effectiveness of the review program
under its charge, and provide to the board a listing of firms that have
participated in a peer review program that is satisfactory to the board; and
(d) Shall require, with respect to peer
reviews contemplated by subparagraph (b), that the peer review processes be
operated and documents maintained in a manner designed to preserve
confidentiality, and that neither the board nor any third party, other than the
peer review oversight body, shall have access to documents furnished or
generated in the course of such peer review. This subparagraph shall not be
construed to limit the board's subpoena power under
309-B:9 Public Accountants and Firms of Public
Accountants. –
I. Persons who on January 1, 2,000 hold registrations as
public accountants issued under prior law of this state shall be entitled to
have their registrations renewed upon fulfillment of the continuing professional
education requirements for renewal of certificates set out in
II. Firms of public accountants holding permits to practice
as such issued under prior law of this state shall be entitled to have their
permits to practice renewed pursuant to the procedures set out in
III. So long as such public accountants hold valid
registrations and permits to practice, they shall be entitled to perform attest
services to the same extent as holders of certificates and holders of permits.
In addition, they shall be entitled to use the title "public accountant'' and
"PA,'' but no other title under this chapter. The holder of a registration
issued under this section may perform attest services only in a firm that holds
a permit under
309-B:10
Enforcement Against Holders of Certificates, Permits, and Registrations. –
I. After notice and hearing
pursuant to
(a) By
written reprimand or censure.
(b) By
suspension or refusal to renew for a period of not more than 5 years, any such
certificate, permit, or registration.
(c) By
limiting the scope of practice of any licensee or placing a licensee on
probation, with or without terms, conditions, and limitations.
(d) By
revocation of any certificate, permit, or registration issued under
(e) By
assessing administrative fines, after notification and due process, in amounts
established by the board which shall not exceed $2,000 per offense or, in the
case of continuing offenses, $200 for each day the violation continues,
whichever is greater.
I-a. Misconduct sufficient to
support disciplinary proceedings under this section shall include:
(a) Fraud or deceit in obtaining a certificate, permit, or registration.
(b) Cancellation, revocation, suspension, or refusal to renew a license or
practice rights by any other state, including possessions of the
(c) Failure, on the part of a holder of a certificate under
(d) Revocation or suspension of the right to practice before any state,
including possessions of the
(e) Dishonesty, fraud, or gross negligence in the performance of services as
a licensee or in the filing or failure to file the licensee’s own income or
employment tax returns or the payment of the licensee’s income or employment tax
liability.
(f) Violation of any provision of this chapter or rule adopted by the board
under this chapter or violation of professional standards.
(g) Violation of any rule of professional conduct adopted by the board under
(h) Conviction of a felony, or of any crime an element of which is dishonesty
or fraud, under the laws of the
(i) Performance of any fraudulent act while holding a certificate,
registration, or permit issued under this chapter or prior law.
(j) Any conduct reflecting adversely upon the licensee’s fitness to perform
services as a licensee.
(k) Making any false or misleading statement or verification, in support of an application for a certificate, registration, or permit filed by another.
II. In lieu of, or in addition to, any remedy specifically provided in paragraph I of this section, the board may require one or both of the following of a licensee:III. In any proceeding in which a remedy provided by paragraph I or II of this section is imposed, the board may also require the respondent licensee to pay the costs of the proceeding.
309-B:11 Enforcement Procedures; Investigations. –
I. The board may, upon receipt of a complaint or other
information suggesting violations of this chapter or of the rules of the board,
conduct investigations to determine whether there is probable cause to institute
proceedings under
II. The board may designate a member, or any other person of
appropriate competence, to serve as investigating officer to conduct an
investigation. Upon completion of the investigation, the investigating officer
shall file a report with the board. The board shall find probable cause or lack
of probable cause based upon the report or shall return the report to the
investigating officer for further investigation. Unless there has been a
determination of probable cause, the report of the investigating officer, the
complaint, if any, the testimony and documents submitted in support of the
complaint or gathered in the investigation, and the fact of pendency of the
investigation shall be treated as confidential information and shall not be
disclosed to any person except law enforcement authorities, and, to the extent
deemed necessary in order to conduct the investigation, the subject of the
investigation, persons whose complaints are being investigated, and witnesses
questioned in the course of the investigation.
III. Upon a finding of probable cause,
if the subject of the investigation is a licensee, the board shall direct that a
complaint be issued under
IV. The board may review the publicly available professional
work of licensees on a general and random basis, without any requirement of a
formal complaint or suspicion of impropriety on the part of any particular
licensee. If, as a result of such review, the board discovers reasonable grounds
for a more specific investigation, the board may proceed under paragraphs I
through III of this section.
309-B:12 Enforcement Procedures; Hearings by the
Board. –
I. In any case where probable cause with respect to a
violation by a licensee has been determined by the board, whether following an
investigation under
II. A licensee against whom a complaint has been issued under
this section shall have the right, reasonably in advance of the hearing, to
examine and copy the report of investigation, if any, and any documentary or
testimonial evidence and summaries of anticipated evidence in the board's
possession relating to the subject matter of the complaint. The board's rules
governing proceedings under this section shall specify the time and manner in
which such right may be exercised.
III. In a hearing under this section the respondent licensee
may appear in person or, in the case of a firm, through a duly authorized
partner, officer, director, or shareholder member or manager, or by counsel. The
respondent or counsel may examine witnesses and evidence presented in support of
the complaint, and may present evidence and witnesses on the licensee's behalf.
The licensee shall have the right, on application to the board, to the issuance
of subpoenas to compel the attendance of witnesses and the production of
documentary evidence.
IV. The evidence supporting the complaint shall be presented
by the investigating officer, by a board member designated for that purpose, or
by counsel. A board member who presents the evidence, or who has conducted the
investigation of the matter under
V. In a hearing under this section, the board shall be
advised by counsel, and such individual shall not be the same counsel who
presents or assists in presenting the evidence supporting the complaint under
paragraph IV of this section.
VI. In a hearing under this section, the board shall not be
bound by the technical rules of evidence.
VIII. In a hearing under this section, a recorded vote of a
majority of all members of the board, excluding members disqualified by reason
of paragraph IV or other reasons under this section, shall be required to
sustain any charge and to impose any penalty with respect to such hearing.
IX. If, after service of a complaint and notice of hearing as
provided in paragraph I of this section, the respondent licensee fails to appear
at the hearing, the board may proceed to hear evidence against the licensee and
may enter such order as it deems warranted by the evidence. The order shall be
final unless the licensee petitions for review under paragraph X of this
section, provided, however, that within 30 days from the date of any such order,
upon a showing of good cause for the licensee's failure to appear and defend,
the board may set aside the order and schedule a new hearing on the complaint to
be conducted in accordance with applicable paragraphs of this section.
X. Any person or firm adversely affected by any order of the
board entered after a hearing under this section may appeal such order by filing
a written petition with the superior court in the county in which the respondent
resides or, if not a resident of this state, in the county in which the
respondent has a place of business or resident agent. An appeal shall not
suspend the order of the board unless the court orders otherwise. The record of
the hearing of the board's action shall be presented to the superior court for
its review pursuant to the procedures and standards of
XI. In any case where the board renders a decision imposing
discipline against a licensee under
309-B:13 Reinstatement. –
I. In any case where the board has suspended or revoked a
certificate, permit, or registration or refused to renew a certificate, permit,
or registration, the board may, upon application in writing by the individual or
firm affected and for good cause shown, modify the suspension or reissue the
certificate, permit, or registration.
II. The board shall by rule specify the manner in which such
applications shall be made, the times within which they shall be made, and the
circumstances under which hearings will be held.
III. Before reissuing or terminating the suspension of a
certificate, permit, or registration under this section, and as a condition to
such action, the board may require the applicant to show successful completion
of specified continuing professional education. The board may make the
reinstatement of a certificate, permit, or registration conditional and subject
to satisfactory completion of a peer review conducted in such fashion as the
board shall specify.
309-B:14 Unlawful Acts. –
I. Only licensees, individuals who have practice privileges
under
II. Licensees, individuals who have practice privileges under
III. No person not holding a valid certificate or a practice
privilege under
IV. No firm shall provide attest services or assume or use
the title or designation "certified public accountants,'' or the abbreviation
"CPAs,'' or any other title, designation, words, letters, abbreviation, sign,
card, or device tending to indicate that such firm is a CPA firm unless (1) the
firm holds a valid permit issued under
V. No person shall assume or use the title or designation
"public accountant,'' or the abbreviation "PA,'' or any other title,
designation, words, letters, abbreviation, sign, card, or device tending to
indicate that such person is a public accountant unless such person holds a
valid registration issued under
VI. No person or firm not holding a valid certificate,
permit, or registration issued under
VIII. Persons not licensed under this chapter, unless they
qualify for a practice privilege under
"I (we) have prepared the accompanying (financial statements)
of (name of entity) as of (time period) for the (period) then ended. This
presentation is limited to preparing in the form of financial statements
information that is the representation of management (owners).
I (we) have not audited or reviewed the accompanying
financial statements and accordingly do not express an opinion or any form of
assurance on them.''
IX. No person or firm not holding a valid certificate,
permit, or registration issued under
X. No persons holding a certificate or registration,
individual qualifying for a practice privilege under
XI. No provision of this section shall have any application
to a person holding a certification, designation, degree, license, or permit
granted in a foreign country entitling the holder to engage in the practice of
public accountancy or its equivalent in such country, whose activities in this
state are limited to the provision of professional services to persons or firms
who are residents of, governments of, or business entities of the country in
which the person holds such entitlement, who performs no attest services as
defined, and who issues no reports with respect to the financial statements of
any other persons, firms, or governmental units in this state, and who does not
use in this state any title or designation other than the one under which that
person practices in such country, followed by a translation of such title or
designation into English, if it is in a different language, and by the name of
such country.
XII. No holder of a certificate issued under
XIII. (a) A licensee, individual qualifying for a practice
privilege under
(b) A licensee, individual qualifying for a
practice privilege under
(c) Any licensee, individual qualifying for
a practice privilege under
XIV. (a) A licensee, individual qualifying for a practice
privilege under
(1) Perform for a
contingent fee any professional services for, or receive such a fee from a
client for whom the licensee, individual qualifying for a practice privilege
under
(2) Prepare an original
or amended tax return or claim for a tax refund for a contingent fee for any
client; provided however that a licensee, individual qualifying for a practice
privilege under
(b) The prohibition in subparagraph (a)
applies during the period in which the licensee, individual qualifying for a
practice privilege under
(c) Except as otherwise provided in this
subparagraph, a contingent fee is a fee established for the performance of any
service pursuant to an arrangement in which no fee will be charged unless a
specified finding or result is attained, or in which the amount of the fee is
otherwise dependent upon the finding or result of such service. Solely for
purposes of this section, fees are not regarded as being contingent if fixed by
courts or other public authorities, or, in tax matters, if determined based on
the results of judicial proceedings or the findings of governmental agencies.
The fees of a licensee, individual qualifying for a practice privilege under
XV. Nothing within this section shall prohibit a practicing
attorney or firm of attorneys from preparing or presenting records or documents
customarily prepared by an attorney or firm of attorneys in connection with the
attorney's professional work in the practice of law, or from billing a client or
receiving a fee from a client in conformity with the professional conduct rules
that govern the practice of law by such attorney or firm of attorneys.
XVI. Notwithstanding any provision of this section, it shall
not be a violation of this section for a firm which does not hold a valid permit
under
309-B:15 Injunctions Against Unlawful Acts. –
Whenever, as a result of an investigation under
309-B:16 Criminal Penalties. –
I. Whenever, by reason of an investigation under
II. Any person who knowingly violates any provision of
309-B:17 Single Act as Evidence of Practice. –
In any action brought under
309-B:18 Confidential Communications. – Except
by permission of the client for whom a licensee performs services, or the heirs,
successors, or personal representatives of such client, a licensee or any
partner, officer, member, manager, shareholder, or employee of a licensee shall
not voluntarily disclose information communicated to such person by the client
relating to and in connection with services rendered to the client by the
licensee. Such information shall be deemed confidential, provided, however, that
nothing in this chapter shall be construed as prohibiting the disclosure of
information required to be disclosed by the standards of the public accounting
profession in reporting on the examination of financial statements or as
prohibiting disclosures in court proceedings or administrative proceedings
before governmental agencies in instances where a subpoena or summons has been
issued, in investigations or proceedings under
309-B:19 Licensees' Working Papers and Clients'
Records. –
I. Subject to the provisions of
II. A licensee shall furnish to the client or former client,
upon request and reasonable notice:
(a) A copy of the licensee's working
papers, to the extent that such working papers include records that would
ordinarily constitute part of the client's records and are not otherwise
available to the client; and
(b) Any accounting or other records
belonging to, or obtained from or on behalf of, the client that the licensee
removed from the client's premises or received for the client's account. The
licensee may make and retain copies of such documents of the client when they
form the basis for work done by the licensee.
(c) A copy of computer-prepared client data
diskettes containing client ledger data, spread sheet data, client documents and
any other such data of the client or former client that would ordinarily
constitute part of the client's records and not otherwise be available to the
client.
III. Nothing in this section shall require a licensee to keep
any work paper beyond the period prescribed in any other applicable statute.
309-B:20 Appointment of Secretary of State as Agent.
– Application by a person or a firm not a resident of this state for a
certificate under
309-B:21 Severability. – If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provisions or applications, and to this end the provisions of this chapter are severable.
Updated
New Hampshire Joint Board of Licensure and Certification
57 Regional Drive
Concord, New Hampshire 03301
(603) 271-2219
*FOR THE OFFICIAL VERSION OF ANY STATUTE, PLEASE CONSULT THE BOUND VOLUMES AND SUPPLEMENTS OF THE NEW HAMPSHIRE REVISED STATUTES ANNOTATED