As Passed by the Senate 1
122nd General Assembly 4
Regular Session Am. Sub. S. B. No. 200 5
1997-1998 6
SENATORS CUPP-WATTS-HERINGTON-HOTTINGER-MUMPER-CARNES- 8
BLESSING-FINAN-SUHADOLNIK 9
11
A B I L L
To amend sections 1111.01, 2925.01, 4701.01, 13
4701.04, 4701.06, 4701.061, 4701.07, 4701.10, 14
4701.11, 4701.12, 4701.13, 4701.14, and 4701.16
and to enact section 4701.29 of the Revised Code 16
to permit certain persons who do not hold a 17
license to practice as an accountant to acquire 18
an ownership interest in public accounting firms,
to change the definitions of the "practice of 19
public accounting" and "permit" under the
Accountancy Law, to make other definitional 20
changes, and to expand the discipline that may be 21
imposed for infractions of that law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 23
Section 1. That sections 1111.01, 2925.01, 4701.01, 25
4701.04, 4701.06, 4701.061, 4701.07, 4701.10, 4701.11, 4701.12, 27
4701.13, 4701.14, and 4701.16 be amended and section 4701.29 of 29
the Revised Code be enacted to read as follows: 30
Sec. 1111.01. As used in this chapter: 39
(A) "Charitable trust" means a charitable remainder 41
annuity trust as defined in section 664(d) of the Internal 42
Revenue Code, a charitable remainder unitrust as defined in 43
section 664(d) of the Internal Revenue Code, a charitable lead or 44
other split interest trust subject to the governing instrument 45
requirements of section 508(e) of the Internal Revenue Code, a 46
pooled income fund as defined in section 642(c) of the Internal
2
Revenue Code, a trust that is a private foundation as defined in 47
section 509 of the Internal Revenue Code, or a trust of which 48
each beneficiary is a charity. 49
For purposes of this division and division (B) of this 51
section, "Internal Revenue Code" means the "Internal Revenue Code 52
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 53
(B) "Charity" means a state university as defined in 55
section 3345.011 of the Revised Code, a community college as 57
defined in section 3354.01 of the Revised Code, a technical
college as defined in section 3357.01 of the Revised Code, a 58
state community college as defined in section 3358.01 of the 59
Revised Code, a private college or university that possesses a 60
certificate of authorization issued by the Ohio board of regents 61
pursuant to Chapter 1713. of the Revised Code, a trust or 62
organization exempt from taxation under section 501(c)(3) or 63
section 501(c)(13) of the Internal Revenue Code, or a 65
corporation, trust, or organization described in section 66
170(c)(2) of the Internal Revenue Code. The term "charities" 67
means more than one trust or organization that is a charity.
(C) "Collective investment fund" means a fund established 69
by a trust company or an affiliate of a trust company for the 70
collective investment of assets held in a fiduciary capacity, 71
either alone or with one or more cofiduciaries, by the 72
establishing trust company and its affiliates.
(D) "Fiduciary investment company" means a corporation 74
that is both of the following: 75
(1) An investment company; 77
(2) Incorporated, owned, and operated in accordance with 79
rules adopted by the superintendent of financial institutions for 80
the investment of funds held by trust companies in a fiduciary 81
capacity and for true fiduciary purposes, either alone or with 82
one or more cofiduciaries.
(E) "Instrument" includes any will, declaration of trust, 84
agreement of trust, agency, or custodianship, or court order 85
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creating a fiduciary relationship. 86
(F) "Investment company" means any investment company as 88
defined in section 3 and registered under section 8 of the 89
"Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-3 91
and 80a-8.
(G) "Trust business" means accepting and executing trusts 93
of property, serving as a trustee, executor, administrator, 94
guardian, receiver, or conservator, and providing fiduciary 95
services as a business. "Trust business" does not include any of 96
the following:
(1) Any natural person acting as a trustee, executor, 98
administrator, guardian, receiver, or conservator, pursuant to 100
appointment by a court of competent jurisdiction;
(2) Any natural person serving as a trustee who does not 103
hold self out to the public as willing to act as a trustee for
hire. For purposes of division (G) of this section, the 105
solicitation or advertisement of legal or accounting services by 106
a person licensed in this state as an attorney or a person 107
holding a live AN OHIO permit to practice public accounting 108
issued under division (A) of section 4701.10 of the Revised Code 109
shall not be considered to be the act of holding self out to the 110
public as willing to act as a trustee for hire. 111
(3) A charity, an officer or employee of a charity, or a 114
person affiliated with a charity, serving as trustee of a 115
charitable trust of which the charity, or another charity with a
similar purpose, is a beneficiary; 116
(4) Other fiduciary activities the superintendent 118
determines are not undertaken as a business. 119
Sec. 2925.01. As used in this chapter: 132
(A) "Administer," "controlled substance," "dispense," 134
"distribute," "federal drug abuse control laws," "hypodermic," 135
"manufacturer," "official written order," "person," "pharmacist," 137
"pharmacy," "practitioner," "prescription," "sale," "schedule I," 138
"schedule II," "schedule III," "schedule IV," "schedule V," and 139
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"wholesaler" have the same meanings as in section 3719.01 of the 140
Revised Code.
(B) "Drug dependent person" and "drug of abuse" have the 142
same meanings as in section 3719.011 of the Revised Code. 143
(C) "Drug," "dangerous drug," and "Federal Food, Drug, and 145
Cosmetic Act" have the same meanings as in section 4729.02 of the 146
Revised Code. 147
(D) "Bulk amount" of a controlled substance means any of 149
the following: 150
(1) For any compound, mixture, preparation, or substance 152
included in schedule I, schedule II, or schedule III, with the 154
exception of marihuana, cocaine, L.S.D., heroin, and hashish and
except as provided in division (D)(2) or (5) of this section, 156
whichever of the following is applicable:
(a) An amount equal to or exceeding ten grams or 158
twenty-five unit doses of a compound, mixture, preparation, or 159
substance that is or contains any amount of a schedule I opiate 160
or opium derivative; 161
(b) An amount equal to or exceeding ten grams of a 164
compound, mixture, preparation, or substance that is or contains 165
any amount of raw or gum opium; 166
(c) An amount equal to or exceeding thirty grams or ten 169
unit doses of a compound, mixture, preparation, or substance that 170
is or contains any amount of a schedule I hallucinogen other than 171
tetrahydrocannabinol or lysergic acid amide, or a schedule I 174
stimulant or depressant; 175
(d) An amount equal to or exceeding twenty grams or five 178
times the maximum daily dose in the usual dose range specified in 179
a standard pharmaceutical reference manual of a compound, 180
mixture, preparation, or substance that is or contains any amount 181
of a schedule II opiate or opium derivative; 182
(e) An amount equal to or exceeding five grams or ten unit 184
doses of a compound, mixture, preparation, or substance that is 185
or contains any amount of phencyclidine; 186
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(f) An amount equal to or exceeding one hundred twenty 188
grams or thirty times the maximum daily dose in the usual dose 189
range specified in a standard pharmaceutical reference manual of 190
a compound, mixture, preparation, or substance that is or 191
contains any amount of a schedule II stimulant that is in a final 192
dosage form manufactured by a person authorized by the Federal 193
Food, Drug, and Cosmetic Act and the federal drug abuse control 194
laws, that is or contains any amount of a schedule II depressant 195
substance or a schedule II hallucinogenic substance; 196
(g) An amount equal to or exceeding three grams of a 199
compound, mixture, preparation, or substance that is or contains 200
any amount of a schedule II stimulant, or any of its salts or 201
isomers, that is not in a final dosage form manufactured by a 202
person authorized by the Federal Food, Drug, and Cosmetic Act and 203
the federal drug abuse control laws. 204
(2) An amount equal to or exceeding one hundred twenty 207
grams or thirty times the maximum daily dose in the usual dose 208
range specified in a standard pharmaceutical reference manual of 210
a compound, mixture, preparation, or substance that is or 212
contains any amount of a schedule III or IV substance other than 214
an anabolic steroid or a schedule III opiate or opium derivative; 215
(3) An amount equal to or exceeding twenty grams or five 217
times the maximum daily dose in the usual dose range specified in 218
a standard pharmaceutical reference manual of a compound, 219
mixture, specification PREPARATION, or substance that is or 221
contains any amount of a schedule III opiate or opium derivative;
(4) An amount equal to or exceeding two hundred fifty 223
milliliters or two hundred fifty grams of a compound, mixture, 224
preparation, or substance that is or contains any amount of a 225
schedule V substance; 226
(5) An amount equal to or exceeding two hundred solid 229
dosage units, sixteen grams, or sixteen milliliters of a 230
compound, mixture, preparation, or substance that is or contains 231
any amount of a schedule III anabolic steroid. 232
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(E) "Unit dose" means an amount or unit of a compound, 234
mixture, or preparation containing a controlled substance that is 235
separately identifiable and is in a form indicating that 236
indicates that it is the amount or unit by which the controlled 238
substance is separately administered to or taken by an 239
individual. 240
(F) "Cultivate" includes planting, watering, fertilizing, 242
or tilling. 243
(G) "Drug abuse offense" means any of the following: 245
(1) A violation of division (A) of section 2913.02 that 247
constitutes theft of drugs, or a violation of section 2925.02, 248
2925.03, 2925.04, 2925.05, 2925.06, 2925.11, 2925.12, 2925.13, 249
2925.22, 2925.23, 2925.31, 2925.32, 2925.36, or 2925.37 of the 251
Revised Code;
(2) A violation of an existing or former law of this or 253
any other state or of the United States that is substantially 254
equivalent to any section listed in division (G)(1) of this 255
section; 256
(3) An offense under an existing or former law of this or 258
any other state, or of the United States, of which planting, 259
cultivating, harvesting, processing, making, manufacturing, 260
producing, shipping, transporting, delivering, acquiring, 261
possessing, storing, distributing, dispensing, selling, inducing 262
another to use, administering to another, using, or otherwise 263
dealing with a controlled substance is an element; 264
(4) A conspiracy to commit, attempt to commit, or 266
complicity in committing or attempting to commit any offense 267
under division (G)(1), (2), or (3) of this section. 268
(H) "Felony drug abuse offense" means any drug abuse 270
offense that would constitute a felony under the laws of this 271
state, any other state, or the United States. 272
(I) "Harmful intoxicant" does not include beer or 274
intoxicating liquor but means any compound, mixture, preparation, 276
or substance the gas, fumes, or vapor of which when inhaled can 277
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induce intoxication, excitement, giddiness, irrational behavior, 278
depression, stupefaction, paralysis, unconsciousness, 279
asphyxiation, or other harmful physiological effects, and 280
includes, but is not limited to, any of the following: 281
(1) Any volatile organic solvent, plastic cement, model 283
cement, fingernail polish remover, lacquer thinner, cleaning 284
fluid, gasoline, or other preparation containing a volatile 285
organic solvent; 286
(2) Any aerosol propellant; 288
(3) Any fluorocarbon refrigerant; 290
(4) Any anesthetic gas. 292
(J) "Manufacture" means to plant, cultivate, harvest, 294
process, make, prepare, or otherwise engage in any part of the 295
production of a drug, by propagation, extraction, chemical 296
synthesis, or compounding, or any combination of the same, and 297
includes packaging, repackaging, labeling, and other activities 298
incident to production. 299
(K) "Possess" or "possession" means having control over a 301
thing or substance, but may not be inferred solely from mere 302
access to the thing or substance through ownership or occupation 303
of the premises upon which the thing or substance is found. 304
(L) "Sample drug" means a drug or pharmaceutical 306
preparation that would be hazardous to health or safety if used 307
without the supervision of a practitioner, or a drug of abuse, 308
and that, at one time, had been placed in a container plainly 309
marked as a sample by a manufacturer. 310
(M) "Standard pharmaceutical reference manual" means the 312
current edition, with cumulative changes if any, of any of the 313
following reference works: 314
(1) "The National Formulary"; 316
(2) "The United States Pharmacopeia," prepared by 318
authority of the United States Pharmacopeial Convention, Inc.; 319
(3) Other standard references that are approved by the 321
state board of pharmacy. 322
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(N) "Juvenile" means a person under eighteen years of age. 324
(O) "Counterfeit controlled substance" means any of the 326
following: 327
(1) Any drug that bears, or whose container or label 329
bears, a trademark, trade name, or other identifying mark used 330
without authorization of the owner of rights to that trademark, 331
trade name, or identifying mark; 332
(2) Any unmarked or unlabeled substance that is 334
represented to be a controlled substance manufactured, processed, 335
packed, or distributed by a person other than the person that 336
manufactured, processed, packed, or distributed it; 337
(3) Any substance that is represented to be a controlled 339
substance but is not a controlled substance or is a different 340
controlled substance; 341
(4) Any substance other than a controlled substance that a 343
reasonable person would believe to be a controlled substance 344
because of its similarity in shape, size, and color, or its 345
markings, labeling, packaging, distribution, or the price for 346
which it is sold or offered for sale. 347
(P) An offense is "committed in the vicinity of a school" 349
if the offender commits the offense on school premises, in a 350
school building, or within one thousand feet of the boundaries of 351
any school premises.
(Q) "School" means any school operated by a board of 353
education or any school for which the state board of education 354
prescribes minimum standards under section 3301.07 of the Revised 355
Code, whether or not any instruction, extracurricular activities, 356
or training provided by the school is being conducted at the time 357
a criminal offense is committed. 358
(R) "School premises" means either of the following: 360
(1) The parcel of real property on which any school is 362
situated, whether or not any instruction, extracurricular 363
activities, or training provided by the school is being conducted 364
on the premises at the time a criminal offense is committed; 365
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(2) Any other parcel of real property that is owned or 367
leased by a board of education of a school or the governing body 368
of a school for which the state board of education prescribes 369
minimum standards under section 3301.07 of the Revised Code and 370
on which some of the instruction, extracurricular activities, or 371
training of the school is conducted, whether or not any 372
instruction, extracurricular activities, or training provided by 373
the school is being conducted on the parcel of real property at 374
the time a criminal offense is committed. 375
(S) "School building" means any building in which any of 377
the instruction, extracurricular activities, or training provided 378
by a school is conducted, whether or not any instruction, 379
extracurricular activities, or training provided by the school is 380
being conducted in the school building at the time a criminal 381
offense is committed. 382
(T) "Disciplinary counsel" means the disciplinary counsel 384
appointed by the board of commissioners on grievances and 385
discipline of the supreme court under the Rules for the 386
Government of the Bar of Ohio. 387
(U) "Certified grievance committee" means a duly 389
constituted and organized committee of the Ohio state bar 390
association or of one or more local bar associations of the state 391
of Ohio that complies with the criteria set forth in Rule V, 392
section 6 of the Rules for the Government of the Bar of Ohio. 393
(V) "Professional license" means any license, permit, 395
certificate, registration, qualification, admission, temporary 396
license, temporary permit, temporary certificate, or temporary 397
registration that is described in divisions (W)(1) to (35) of 398
this section and that qualifies a person as a professionally 399
licensed person. 400
(W) "Professionally licensed person" means any of the 402
following: 403
(1) A person who has obtained a license as a manufacturer 405
of controlled substances or a wholesaler of controlled substances 406
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under Chapter 3719. of the Revised Code; 407
(2) A person who has received a certificate or temporary 409
certificate as a certified public accountant or who has 410
registered as a public accountant under Chapter 4701. of the 411
Revised Code and who holds a live AN OHIO permit issued under 413
that chapter; 414
(3) A person who holds a certificate of qualification to 416
practice architecture issued or renewed and registered under 417
Chapter 4703. of the Revised Code; 418
(4) A person who is registered as a landscape architect 420
under Chapter 4703. of the Revised Code or who holds a permit as 421
a landscape architect issued under that chapter; 422
(5) A person licensed as an auctioneer or apprentice 424
auctioneer or licensed to operate an auction company under 425
Chapter 4707. of the Revised Code; 426
(6) A person who has been issued a certificate of 428
registration as a registered barber under Chapter 4709. of the 429
Revised Code; 430
(7) A person licensed and regulated to engage in the 432
business of a debt pooling company by a legislative authority, 433
under authority of Chapter 4710. of the Revised Code; 434
(8) A person who has been issued a cosmetologist's 436
license, manicurist's license, esthetician's license, managing 437
cosmetologist's license, managing manicurist's license, managing 438
esthetician's license, cosmetology instructor's license, 439
manicurist instructor's license, esthetician instructor's 440
license, or tanning facility permit under Chapter 4713. of the 441
Revised Code; 442
(9) A person who has been issued a license to practice 444
dentistry, a general anesthesia permit, a conscious intravenous 445
sedation permit, a limited resident's license, a limited teaching 446
license, a dental hygienist's license, or a dental hygienist's 447
teacher's certificate under Chapter 4715. of the Revised Code; 448
(10) A person who has been issued an embalmer's license, a 450
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funeral director's license, or a funeral home license, or who has 451
been registered for a funeral director's apprenticeship under 452
Chapter 4717. of the Revised Code; 453
(11) A person who has been licensed as a registered nurse 455
or practical nurse, or who has been issued a certificate for the 456
practice of nurse-midwifery under Chapter 4723. of the Revised 457
Code; 458
(12) A person who has been licensed to practice optometry 460
or to engage in optical dispensing under Chapter 4725. of the 461
Revised Code; 462
(13) A person licensed to act as a pawnbroker under 464
Chapter 4727. of the Revised Code; 465
(14) A person licensed to act as a precious metals dealer 467
under Chapter 4728. of the Revised Code; 468
(15) A person registered as a pharmacist, a pharmacy 470
intern, a wholesale distributor of dangerous drugs, or a terminal 471
distributor of dangerous drugs under Chapter 4729. of the Revised 472
Code; 473
(16) A person who is authorized to practice as a physician 475
assistant under Chapter 4730. of the Revised Code; 476
(17) A person who has been issued a certificate to 478
practice medicine and surgery, osteopathic medicine and surgery, 479
a limited branch of medicine or surgery, or podiatry under 480
Chapter 4731. of the Revised Code; 481
(18) A person licensed as a psychologist or school 483
psychologist under Chapter 4732. of the Revised Code; 484
(19) A person registered to practice the profession of 486
engineering or surveying under Chapter 4733. of the Revised Code; 487
(20) A person who has been issued a certificate to 489
practice chiropractic under Chapter 4734. of the Revised Code; 490
(21) A person licensed to act as a real estate broker, 492
real estate salesman, limited real estate broker, or limited real 493
estate salesman under Chapter 4735. of the Revised Code; 494
(22) A person registered as a registered sanitarian under 496
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Chapter 4736. of the Revised Code; 497
(23) A person licensed to operate or maintain a junkyard 499
under Chapter 4737. of the Revised Code; 500
(24) A person who has been issued a motor vehicle salvage 502
dealer's license under Chapter 4738. of the Revised Code; 503
(25) A person who has been licensed to act as a steam 505
engineer under Chapter 4739. of the Revised Code; 506
(26) A person who has been issued a license or temporary 508
permit to practice veterinary medicine or any of its branches, or 509
who is registered as a graduate animal technician under Chapter 510
4741. of the Revised Code; 511
(27) A person who has been issued a hearing aid dealer's 513
or fitter's license or trainee permit under Chapter 4747. of the 514
Revised Code; 515
(28) A person who has been issued a class A, class B, or 517
class C license or who has been registered as an investigator or 518
security guard employee under Chapter 4749. of the Revised Code; 519
(29) A person licensed and registered to practice as a 521
nursing home administrator under Chapter 4751. of the Revised 522
Code; 523
(30) A person licensed to practice as a speech pathologist 525
or audiologist under Chapter 4753. of the Revised Code; 526
(31) A person issued a license as an occupational 528
therapist or physical therapist under Chapter 4755. of the 529
Revised Code; 530
(32) A person who is licensed as a professional clinical 532
counselor or professional counselor, licensed as a social worker 533
or independent social worker, or registered as a social work 534
assistant under Chapter 4757. of the Revised Code; 535
(33) A person issued a license to practice dietetics under 537
Chapter 4759. of the Revised Code; 538
(34) A person who has been issued a license or temporary 540
permit to practice respiratory therapy under Chapter 4761. of the 541
Revised Code; 542
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(35) A person who has been issued a real estate appraiser 544
certificate under Chapter 4763. of the Revised Code. 545
(X) "Cocaine" means any of the following: 547
(1) A cocaine salt, isomer, or derivative, a salt of a 549
cocaine isomer or derivative, or the base form of cocaine; 550
(2) Coca leaves or a salt, compound, derivative, or 552
preparation of coca leaves, including ecgonine, a salt, isomer, 553
or derivative of ecgonine, or a salt of an isomer or derivative 554
of ecgonine; 555
(3) A salt, compound, derivative, or preparation of a 557
substance identified in division (X)(1) or (2) of this section 559
that is chemically equivalent to or identical with any of those 560
substances, except that the substances shall not include 561
decocainized coca leaves or extraction of coca leaves if the 562
extractions do not contain cocaine or ecgonine. 563
(Y) "L.S.D." means lysergic acid diethylamide. 566
(Z) "Hashish" means the resin or a preparation of the 568
resin contained in marihuana, whether in solid form or in a 569
liquid concentrate, liquid extract, or liquid distillate form. 570
(AA) "Marihuana" has the same meaning as in section 572
3719.01 of the Revised Code, except that it does not include 574
hashish.
(BB) An offense is "committed in the vicinity of a 576
juvenile" if the offender commits the offense within one hundred 578
feet of a juvenile or within the view of a juvenile, regardless 579
of whether the offender knows the age of the juvenile, whether 580
the offender knows the offense is being committed within one 581
hundred feet of or within view of the juvenile, or whether the 582
juvenile actually views the commission of the offense.
(CC) "Presumption for a prison term" or "presumption that 584
a prison term shall be imposed" means a presumption, as described 585
in division (D) of section 2929.13 of the Revised Code, that a 586
prison term is a necessary sanction for a felony in order to 587
comply with the purposes and principles of sentencing under 588
14
section 2929.11 of the Revised Code.
(DD) "Major drug offender" has the same meaning as in 590
section 2929.01 of the Revised Code. 591
(EE) "Minor drug possession offense" means either of the 593
following: 594
(1) A violation of section 2925.11 of the Revised Code as 596
it existed prior to July 1, 1996; 597
(2) A violation of section 2925.11 of the Revised Code as 599
it exists on and after July 1, 1996, this that is a misdemeanor 600
or a felony of the fifth degree. 601
(FF) "Mandatory prison term" has the same meaning as in 604
section 2929.01 of the Revised Code.
(GG) "Crack cocaine" means a compound, mixture, 606
preparation, or substance that is or contains any amount of 607
cocaine that is analytically identified as the base form of 608
cocaine or that is in a form that resembles rocks or pebbles 609
generally intended for individual use.
Sec. 4701.01. As used in this chapter: 618
(A) "Live permit" means a permit issued under section 620
4701.10 of the Revised Code that is not suspended or revoked 621
PRACTICE OF PUBLIC ACCOUNTING" MEANS PERFORMING OR OFFERING TO 623
PERFORM ANY ENGAGEMENT THAT WILL RESULT IN THE ISSUANCE OF AN 624
ATTEST REPORT, AND, WITH RESPECT TO A PERSON WHO HOLDS A CPA 625
CERTIFICATE, PA REGISTRATION, FOREIGN CERTIFICATE, OR FIRM 627
REGISTRATION, ANY OTHER SERVICES INVOLVING THE USE OF ACCOUNTING 628
OR AUDITING SKILLS AS ESTABLISHED BY RULES ADOPTED BY THE 629
ACCOUNTANCY BOARD.
(B) "Public accounting firm" means a sole proprietorship, 631
a partnership, a limited liability company, a professional 632
association, a corporation-for-profit, or any other legal entity 633
BUSINESS ORGANIZATION that is permitted by the accountancy board 635
to engage ENGAGED in the practice of public accounting in this 636
state. 637
(C) "Opinion on a financial statement" means any opinion 639
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expressed in accordance with generally accepted auditing 640
standards as to the fairness of presentation of information used 641
for guidance in financial transactions or for accounting or for 642
assessing the status or performance of commercial and 643
noncommercial enterprises, whether public, private, or 644
governmental. 645
(D) "Quality PEER review" means a study, appraisal, or 647
review of one or more aspects of the professional work of a 648
public accounting firm that meets the standards and requirements 649
set forth by the accountancy board. 650
(E) "Review report on a financial statement" means either 652
of the following: 653
(1) Any review report issued with respect to any of the 655
following: 656
(a) Interim financial information in accordance with 658
generally accepted auditing standards; 659
(b) The financial information of a nonpublic entity in 661
accordance with statements on standards for accounting and review 662
services; 663
(c) The reliability of another party's written assertion 665
in accordance with statements on standards for attestation 666
engagements. 667
(2) Any other review report issued in accordance with 669
standards promulgated by the American institute of certified 670
public accountants. 671
(F) "Compilation report on a financial statement" means 673
any compilation report issued with respect to financial 674
information of a nonpublic entity in accordance with statements 675
on standards for accounting and review services as promulgated by 676
the American institute of certified public accountants. 677
(G) "Examination report on a financial statement" means 679
any examination report issued with respect to another party's 680
written assertion in accordance with statements on standards for 681
attestation engagements as promulgated by the American institute 682
16
of certified public accountants. 683
(H) "Agreed-upon procedures report on a financial 685
statement" means any report based on agreed-upon procedures 686
issued with respect to another party's written assertion in 687
accordance with statements on standards for attestation 688
engagements as promulgated by the American institute of certified 689
public accountants. 690
(I) "QUALIFIED FIRM" MEANS A PARTNERSHIP, PROFESSIONAL 693
ASSOCIATION, CORPORATION-FOR-PROFIT, LIMITED LIABILITY COMPANY, 694
OR ANY OTHER BUSINESS ORGANIZATION IN WHICH THE INDIVIDUALS WHO 695
OWN A MAJORITY OF THE BUSINESS ORGANIZATION INTERESTS IN THE 697
BUSINESS ORGANIZATION AND CONTROL THE BUSINESS ORGANIZATION HOLD
AN OHIO PERMIT OR A FOREIGN PERMIT. 699
(J) "OWN" MEANS ANY DIRECT OR INDIRECT OWNERSHIP OF AN 702
EQUITY INTEREST IN A PUBLIC ACCOUNTING FIRM OR QUALIFIED FIRM. 703
(K) "CONTROL" OR "CONTROLLED" MEANS THE RIGHT TO EXERCISE 706
THE MAJORITY OF THE VOTING EQUITY INTERESTS IN A PUBLIC 707
ACCOUNTING FIRM WITH RESPECT TO ANY MATTER. 708
(L) "EQUITY INTEREST" MEANS ANY CAPITAL INTEREST OR PROFIT 711
INTEREST IN A PARTNERSHIP, PROFESSIONAL ASSOCIATION, 712
CORPORATION-FOR-PROFIT, LIMITED LIABILITY COMPANY, OR ANY OTHER 713
BUSINESS ORGANIZATION.
(M) "OHIO PERMIT" MEANS A PERMIT TO PRACTICE PUBLIC 716
ACCOUNTING ISSUED UNDER DIVISION (A) OF SECTION 4701.10 OF THE 718
REVISED CODE THAT IS NOT REVOKED OR SUSPENDED. 719
(N) "FOREIGN PERMIT" MEANS A PERMIT TO PRACTICE PUBLIC 722
ACCOUNTING ISSUED UNDER THE LAWS OF A STATE OTHER THAN OHIO OR 724
UNDER THE LAWS OF A FOREIGN JURISDICTION.
(O) "OHIO REGISTRATION" MEANS THE REGISTRATION OF A HOLDER 727
OF A CPA CERTIFICATE OR PA CERTIFICATE WHO IS NOT IN THE PRACTICE 730
OF PUBLIC ACCOUNTING UNDER DIVISION (B) OF SECTION 4701.10 OF THE 731
REVISED CODE. 732
(P) "FIRM REGISTRATION" OR "REGISTERED FIRM" MEANS 735
REGISTRATION AS A PUBLIC ACCOUNTING FIRM UNDER SECTION 4701.04 OF 736
17
THE REVISED CODE.
(Q) "PA REGISTRATION" MEANS REGISTRATION AS A PUBLIC 739
ACCOUNTANT UNDER SECTION 4701.07 OF THE REVISED CODE THAT IS NOT 740
REVOKED OR SUSPENDED. 741
(R) "CPA CERTIFICATE" MEANS A CERTIFICATE ISSUED UNDER 744
SECTION 4701.06 OR 4701.061 OF THE REVISED CODE THAT IS NOT 745
REVOKED OR SUSPENDED. 746
(S) "FOREIGN CERTIFICATE" MEANS A CERTIFICATE OF CERTIFIED 749
PUBLIC ACCOUNTANT ISSUED UNDER THE LAWS OF A STATE OTHER THAN 751
OHIO OR UNDER THE LAWS OF A FOREIGN JURISDICTION. 752
(T) "ATTEST REPORT" MEANS AN OPINION REPORT, REVIEW 755
REPORT, COMPILATION REPORT, EXAMINATION REPORT, AGREED-UPON 756
PROCEDURES REPORT, OR ANY SIMILAR REPORT PREPARED IN ACCORDANCE 757
WITH STANDARDS ESTABLISHED BY THE AMERICAN INSTITUTE OF CERTIFIED 758
PUBLIC ACCOUNTANTS WITH RESPECT TO A FINANCIAL STATEMENT OR OTHER 759
FINANCIAL INFORMATION. 760
(U) "PERSON" MEANS AN INDIVIDUAL, CORPORATION, BUSINESS 763
TRUST, ESTATE, PARTNERSHIP, LIMITED LIABILITY COMPANY, 764
PROFESSIONAL ASSOCIATION, AND ANY OTHER BUSINESS ORGANIZATION. 765
(V) Technical terms that define specific public accounting 767
engagements have the same meanings as in the professional 768
standards promulgated by the American institute of certified 769
public accountants. 770
(W) "GOOD MORAL CHARACTER" MEANS THE COMBINATION OF 772
PERSONAL TRAITS OF HONESTY, INTEGRITY, ATTENTION TO DUTY, 773
FORTHRIGHTNESS, AND SELF-RESTRAINT THAT ENABLES A PERSON TO 774
DISCHARGE THE DUTIES OF THE ACCOUNTING PROFESSION FULLY AND 775
FAITHFULLY. 776
(1) A HISTORY OF DISHONEST OR FELONIOUS ACTS OR 778
CONVICTIONS IS SUFFICIENT TO PROVE LACK OF GOOD MORAL CHARACTER 779
WHERE THAT HISTORY DEMONSTRATES BY A PREPONDERANCE OF THE 780
EVIDENCE THAT THE PERSON LACKS ONE OR MORE SUCH PERSONAL TRAITS. 781
A PERSON WHO HAS A FELONY CONVICTION RELATED TO ONE OR MORE SUCH 782
PERSONAL TRAITS BEARS THE BURDEN OF ESTABLISHING THE PERSON'S 783
18
PRESENT GOOD MORAL CHARACTER, INCLUDING THE PERSON'S FULL AND 784
COMPLETE REHABILITATION SUBSEQUENT TO THE CONVICTION. 785
(2) IF LESS THAN ONE YEAR HAS PASSED SINCE THE COMPLETION 787
OF THE PERSON'S SENTENCE ON A FELONY CONVICTION, INCLUDING ANY 788
PROBATIONARY TERM, THE BOARD MAY DELAY ANY DETERMINATION OF THE 789
PERSON'S GOOD MORAL CHARACTER UNTIL ONE YEAR HAS PASSED FROM THE 790
TIME OF SUCH COMPLETION. 791
(3) IN DETERMINING WHETHER A PERSON HAS MET THE PERSON'S 793
BURDEN OF PROOF, THE FOLLOWING FACTORS MAY BE CONSIDERED BY THE 794
BOARD:
(a) THE PERSON'S PATH TOWARD PROFESSIONAL LICENSING 796
FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 797
(b) THE NATURE AND DEGREE OF THE PERSON'S ACADEMIC 799
ACHIEVEMENTS; 800
(c) THE NATURE AND DEGREE OF THE PERSON'S EMPLOYMENT 802
FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 803
(d) THE PERSON'S DEGREE OF SELF-SUFFICIENCY FOLLOWING 805
COMPLETION OF THE PERSON'S SENTENCE; 806
(e) THE NATURE AND DEGREE OF THE PERSON'S OTHER 808
RESPONSIBILITIES FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 809
(f) THE PERSON'S CONVICTION FOR ANY OTHER CRIMINAL OFFENSE 812
SINCE COMPLETION OF THE PERSON'S SENTENCE FOR THE PERSON'S FIRST 813
FELONY CONVICTION;
(g) WHETHER THE PERSON'S APPLICATION OR PRESENTATION 815
CONTAINS ANY INCONSISTENCIES OR MISLEADING EXPLANATIONS THAT 816
CONVINCE THE BOARD THAT EITHER THE PERSON OR THE PERSON'S 817
ATTORNEY IS TRYING TO KEEP THE BOARD FROM ACQUIRING A TRUE, 818
THOUGH DAMAGING, REPRESENTATION OF THE PERSON'S CHARACTER; 819
(h) THE NATURE AND CIRCUMSTANCES OF THE DISHONEST OR 821
FELONIOUS ACTS OR CONVICTIONS OF THE PERSON; 822
(i) ANY OTHER SPECIFICALLY IDENTIFIABLE INFORMATION THE 824
BOARD DETERMINES TO BE RELEVANT TO THE PERSON'S ABILITY TO 825
DISCHARGE THE DUTIES OF THE ACCOUNTING PROFESSION FULLY AND 826
FAITHFULLY. 827
19
Sec. 4701.04. (A) No public accounting firm shall ENGAGE 837
IN THE practice under the firm's name OF PUBLIC ACCOUNTING in 838
this state unless it registers with the accountancy board and 839
pays a registration fee set by the board. 840
(B) New public PUBLIC accounting firms shall apply for 842
initial registration within ninety days of AFTER formation OR 843
WITHIN NINETY DAYS OF THE COMMENCEMENT OF PRACTICING PUBLIC 844
ACCOUNTING IN THIS STATE. All public accounting firms shall 846
renew their registration triennially. All public accounting 847
firms shall submit with their initial and renewal registration 848
applications a ALL OF THE FOLLOWING:
(1) A list of the names, addresses, and certificate 851
numbers of all license holders INDIVIDUALS WHO HOLD AN OHIO 852
PERMIT AND WHO OWN AN EQUITY INTEREST IN THE PUBLIC ACCOUNTING 853
FIRM OR WHO ARE employed by them THE PUBLIC ACCOUNTING FIRM; 854
(2) A LIST OF THE NAMES AND ADDRESSES OF EACH PERSON WHO 856
DOES NOT HOLD AN OHIO PERMIT OR A FOREIGN PERMIT WHO OWNS AN 857
EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM IF THE PERSON'S 860
PRINCIPAL PLACE OF BUSINESS IS LOCATED IN THIS STATE; 861
(3) A STATEMENT THAT THE PUBLIC ACCOUNTING FIRM AND EACH 863
PERSON WHO OWNS AN EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM, 864
OR IS EMPLOYED BY THE PUBLIC ACCOUNTING FIRM, AND DOES NOT HOLD 865
AN OHIO PERMIT OR A FOREIGN PERMIT IS IN COMPLIANCE WITH 867
DIVISIONS (C) AND (D) OF THIS SECTION. 869
(C) A PUBLIC ACCOUNTING FIRM SHALL SATISFY ALL OF THE 872
FOLLOWING REQUIREMENTS IN ORDER TO REGISTER: 873
(1) EXCEPT AS PROVIDED IN DIVISION (C)(5) OF THIS SECTION, 876
EACH PARTNER, SHAREHOLDER, MEMBER, OR OTHER PERSON WHO OWNS AN 877
EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM HOLDS AN OHIO 879
PERMIT OR A FOREIGN PERMIT;
(2) THE CHIEF EXECUTIVE OF ANY OFFICE OF A PUBLIC 881
ACCOUNTING FIRM LOCATED IN OR DOING BUSINESS IN THIS STATE HOLDS 882
AN OHIO PERMIT OR A FOREIGN PERMIT; 883
(3) EACH INDIVIDUAL IN A PUBLIC ACCOUNTING FIRM WHO SIGNS 886
20
ANY ATTEST REPORT ISSUED FROM AN OFFICE LOCATED IN THIS STATE 887
HOLDS AN OHIO PERMIT; 888
(4) AN INDIVIDUAL WHO OWNS AN EQUITY INTEREST IN THE 890
PUBLIC ACCOUNTING FIRM OR WHO IS EMPLOYED BY THE PUBLIC 891
ACCOUNTING FIRM AND WHO HOLDS AN OHIO PERMIT OR A FOREIGN PERMIT, 892
OR A QUALIFIED FIRM THAT OWNS AN EQUITY INTEREST IN THE PUBLIC 893
ACCOUNTING FIRM, ASSUMES ULTIMATE RESPONSIBILITY FOR ANY ATTEST 895
REPORT ISSUED FROM AN OFFICE OF THE PUBLIC ACCOUNTING FIRM 896
LOCATED IN THIS STATE;
(5) ANY PERSON WHO DOES NOT HOLD AN OHIO PERMIT OR A 899
FOREIGN PERMIT AND WHO HOLDS AN EQUITY INTEREST IN THE PUBLIC 901
ACCOUNTING FIRM SATISFIES THE CONDITIONS SET FORTH IN DIVISION 902
(D) OF THIS SECTION;
(6) THE PUBLIC ACCOUNTING FIRM PROVIDES FOR THE TRANSFER 904
OF THE EQUITY INTEREST OWNED BY PERSONS WHO DO NOT HOLD AN OHIO 906
PERMIT OR A FOREIGN PERMIT TO EITHER THE PUBLIC ACCOUNTING FIRM 907
OR TO ANOTHER PERSON WHO OWNS AN EQUITY INTEREST IN THE FIRM IF A 908
PERSON NOT HOLDING AN OHIO PERMIT OR A FOREIGN PERMIT WITHDRAWS 911
FROM OR CEASES TO BE EMPLOYED BY THE PUBLIC ACCOUNTING FIRM. THE
PUBLIC ACCOUNTING FIRM MAY MAKE PAYMENTS IN CONNECTION WITH THE 914
PERSON'S WITHDRAWAL FROM THE FIRM TO THAT PERSON OR, IF THAT 915
PERSON IS DECEASED OR DISSOLVED, TO THE PERSON'S ESTATE OR 916
SUCCESSOR IN INTEREST.
(D) A PERSON WHO DOES NOT HOLD AN OHIO PERMIT OR A FOREIGN 919
PERMIT MAY OWN AN EQUITY INTEREST IN A PUBLIC ACCOUNTING FIRM IF 921
ALL OF THE FOLLOWING CONDITIONS ARE MET: 922
(1) ALL OF THE INDIVIDUALS WHO HOLD AN OHIO PERMIT OR A 924
FOREIGN PERMIT AND WHO OWN EQUITY INTERESTS IN THE PUBLIC 925
ACCOUNTING FIRM, AND QUALIFIED FIRMS THAT OWN EQUITY INTERESTS IN 926
THE PUBLIC ACCOUNTING FIRM, OWN, IN THE AGGREGATE, A MAJORITY OF 927
THE EQUITY INTERESTS IN THE PUBLIC ACCOUNTING FIRM AND CONTROL 928
THE PUBLIC ACCOUNTING FIRM;
(2) THE PERSON DOES NOT ASSUME OR USE ANY TITLES OR 931
DESIGNATIONS SPECIFIED IN DIVISION (A) OF SECTION 4701.14 OF THE 932
21
REVISED CODE. THE PERSON MAY DESIGNATE OR REFER TO THE PERSON AS 933
A SHAREHOLDER, PARTNER, MEMBER, PRINCIPAL, OWNER, OR OFFICER OF 934
THE PUBLIC ACCOUNTING FIRM, AND ALSO MAY USE ANY OTHER TITLE THAT 936
THE BOARD BY RULE AUTHORIZES. 937
(3) THE PERSON IS NOT IN VIOLATION OF ANY STANDARD 940
REGARDING THE CHARACTER OR CONDUCT OF THAT PERSON AS ESTABLISHED 941
BY THE BOARD BY RULE;
(4) THE PERSON'S PARTICIPATION IN THE BUSINESS OF THE 944
PUBLIC ACCOUNTING FIRM IS THE PERSON'S PRINCIPAL OCCUPATION AND
CONSISTS OF PROVIDING SERVICES TO OR ON BEHALF OF THE PUBLIC 945
ACCOUNTING FIRM, AND THE PERSON IS NOT FUNCTIONING SOLELY OR 947
PREDOMINATELY AS A PASSIVE INVESTOR IN THE PUBLIC ACCOUNTING 948
FIRM;
(5) THE INDIVIDUAL HAS GRADUATED WITH A BACCALAUREATE OR 952
HIGHER DEGREE CONFERRED BY A COLLEGE OR UNIVERSITY APPROVED BY 953
THE BOARD;
(6) THE INDIVIDUAL MEETS OR EXCEEDS THE CONTINUING 956
EDUCATION REQUIREMENTS AS ESTABLISHED BY BOARD RULE;
(7) A PERSON WHO HOLDS A PROFESSIONAL LICENSE, 958
REGISTRATION, OR CERTIFICATION ISSUED BY THIS STATE, ANOTHER 959
STATE, OR A FOREIGN JURISDICTION COMPLIES WITH THE REQUIREMENTS 960
OF THAT LICENSE, REGISTRATION, OR CERTIFICATION; 961
(8) THE INDIVIDUAL ABIDES BY THE CODE OF CONDUCT OF THE 964
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OR A 965
COMPARABLE CODE OF PROFESSIONAL CONDUCT THAT THE BOARD BY RULE 966
ADOPTS;
(9) THE PERSON COMPLIES WITH ALL APPLICABLE PROVISIONS OF 969
THIS CHAPTER AND RULES ADOPTED BY THE BOARD. 970
(C)(E) A PERSON WHO OWNS A VOTING EQUITY INTEREST IN A 973
PUBLIC ACCOUNTING FIRM MAY NOT DELEGATE, BY PROXY OR OTHERWISE, 974
THE DUTY TO EXERCISE ANY VOTING RIGHTS TO A PERSON THAT DOES NOT 975
HOLD AN OHIO PERMIT OR A FOREIGN PERMIT OR TO A PERSON THAT IS 976
NOT A QUALIFIED FIRM. 977
(F) As a condition for initial or renewal registration on 979
22
and after January 1, 1993, the board, by rule, shall require that 980
all public accounting firms undergo a quality PEER review to 981
determine the degree of compliance IN THE PRACTICE OF PUBLIC 983
ACCOUNTING by the PUBLIC ACCOUNTING firm with generally accepted 985
accounting principles and, GENERALLY ACCEPTED auditing standards, 987
and other generally accepted technical standards, unless the 988
applicant PUBLIC ACCOUNTING firm meets one of the exceptions in 990
division (G)(J) of this section.
(D)(G) The board shall adopt rules establishing guidelines 992
for quality PEER reviews. The rules shall do all of the 993
following: 994
(1) Designate a quality PEER review committee consisting 996
of accounting professionals to serve as advisors to the board and 997
to ensure that the board's guidelines are followed. The board 998
shall MAY establish fair and reasonable compensation for the 999
committee members to be paid for time they spend conducting 1,001
committee business.
(2) Require that the quality PEER review be conducted by a 1,003
reviewer that is both independent of the PUBLIC ACCOUNTING firm 1,004
reviewed and qualified pursuant to board rules; 1,006
(3) Require that the standards and practices applied by 1,008
the reviewer be at least as stringent as those applied by the 1,009
American institute of certified public accountants; 1,010
(4) Prohibit the use or disclosure of information obtained 1,012
by members of the board of reviewers during or in connection with 1,013
the quality PEER review process for purposes other than those 1,014
related to determining the degree of compliance by the PUBLIC 1,016
ACCOUNTING firm with generally accepted accounting principles 1,018
and, GENERALLY ACCEPTED auditing standards, and other generally 1,020
accepted technical standards. Division (D)(G)(4) of this section 1,021
does not apply to the use or disclosure of information that is 1,023
described in division (H)(K)(3) of this section or that is 1,025
necessary to comply with any provision of law.
(E)(H)(1) If a quality PEER review report indicates that a 1,028
23
PUBLIC ACCOUNTING firm does not comply with standards and 1,030
practices set forth in board guidelines, the board may, at its 1,031
discretion, or shall, upon submission of a written application by 1,032
the firm, MAY hold a hearing to determine whether the firm 1,033
complies with the standards and practices. If the board, after 1,034
conducting the hearing, determines that the firm complies with 1,035
the standards and practices, it shall issue an order requiring 1,036
the reviewer and the quality review committee to take any 1,037
necessary action to record and implement the board's 1,038
determination and to restore the status of compliance upon the 1,039
firm. However, if REVIEW THE RESULTS OF THE PEER REVIEW REPORT. 1,040
IF the board, after conducting the hearing, determines that the 1,041
PUBLIC ACCOUNTING firm does not comply with the standards and 1,043
practices, it may issue an order that requires both of the 1,044
following:
(a) Remedial OR DISCIPLINARY action, which may include: 1,046
(i) Requiring employees of the PUBLIC ACCOUNTING firm to 1,048
complete general or specific continuing professional education 1,050
courses;
(ii) Requiring the PUBLIC ACCOUNTING firm to undergo 1,052
quality PEER review more frequently than triennially and 1,055
conducted in whole or part under the direct supervision of the 1,056
board or its designee;
(iii) Any other remedial action specified by the board; 1,058
(iv) IMPOSING ANY DISCIPLINARY MEASURES SET FORTH IN 1,060
DIVISION (B) OF SECTION 4701.16 OF THE REVISED CODE. 1,061
(b) An affidavit from the PUBLIC ACCOUNTING firm submitted 1,063
within the time specified by the board indicating completion of 1,065
required remedial actions. 1,066
(2) Notwithstanding divisions (H)(K)(1) and (2) of this 1,068
section, all matters relating to the procedures for determining 1,069
compliance with the standards and practices under division 1,071
(E)(H)(1) of this section are subject to Chapter 119. of the 1,072
Revised Code, including the notice and conduct of any hearing, 1,073
24
and the issuance and appeal of any order. 1,074
(F)(I) The PUBLIC ACCOUNTING firm reviewed shall pay for 1,077
any quality PEER review performed. 1,078
(G)(J) The board may exempt a PUBLIC ACCOUNTING firm from 1,081
the requirement to undergo a quality PEER review if the PUBLIC 1,082
ACCOUNTING firm submits to the board a written and notarized 1,085
statement that the PUBLIC ACCOUNTING firm meets at least one of 1,087
the following grounds for exemption identified in the statement: 1,088
(1) Within three years of the date of application for 1,090
initial or renewal registration, the PUBLIC ACCOUNTING firm has 1,091
been subject to a quality PEER review acceptable to the board and 1,093
conducted pursuant to standards not less stringent than review 1,095
standards applied by the American institute of certified public 1,096
accountants. The PUBLIC ACCOUNTING firm shall submit to the 1,098
board a copy of the results of the quality PEER review and any 1,100
additional documentation required by the board. The board, 1,101
however, shall not require submittal of the working papers 1,102
related to the quality PEER review process.
(2) Within three years of the date of application for 1,104
initial or renewal registration, the PUBLIC ACCOUNTING firm has 1,105
undergone a quality PEER review conducted in another state or 1,107
foreign country. The PUBLIC ACCOUNTING firm shall submit to the 1,109
board a copy of the results of the quality PEER review and any 1,111
additional documentation required by the board, including a 1,112
detailed report of the procedures and standards applied by the 1,113
reviewer.
(3) The PUBLIC ACCOUNTING firm has never practiced public 1,115
accounting in this state or any other state or foreign country 1,117
and will undergo a quality PEER review within eighteen months of 1,118
registration.
(4) The PUBLIC ACCOUNTING firm, on a schedule as required 1,120
by rule adopted by the board, submits a report to the board that 1,121
states all of the following: 1,122
(a) The PUBLIC ACCOUNTING firm does not engage in any 1,124
25
financial reporting areas of practice including audits, 1,126
compilations, or reviews UNDERTAKE ANY ENGAGEMENT THAT WILL 1,127
RESULT IN THE ISSUANCE OF AN ATTEST REPORT.
(b) Within the next three years, the PUBLIC ACCOUNTING 1,129
firm does not intend to engage in any financial reporting areas 1,131
of practice including audits, compilations, reviews, or 1,132
prospective financial statements UNDERTAKE ANY ENGAGEMENT THAT 1,133
WILL RESULT IN THE ISSUANCE OF ANY ATTEST REPORT. 1,134
(c) The PUBLIC ACCOUNTING firm agrees to notify the board 1,136
within ninety days of engaging in any financial reporting areas 1,138
of practice including audits, compilations, or reviews AFTER 1,139
ACCEPTING ANY ENGAGEMENT THAT WILL RESULT IN THE ISSUANCE OF ANY 1,140
ATTEST REPORT, and will undergo a quality PEER review within one 1,143
year of commencing such practices THE ACCEPTANCE OF SUCH AN 1,145
ENGAGEMENT.
(5) Subject to the board's approval, for reasons of 1,147
personal health, military service, or other good cause, the 1,148
PUBLIC ACCOUNTING firm is entitled to an exemption. 1,150
(H)(K) In any civil action, arbitration, or administrative 1,152
proceeding involving a PUBLIC ACCOUNTING firm, all of the 1,153
following shall apply: 1,154
(1) The proceedings, records, and work papers of any 1,156
reviewer, including board members and review committee members, 1,157
involved in the quality PEER review process are privileged and 1,158
not subject to discovery, subpoena, or other means of legal 1,160
process and may not be introduced into evidence. 1,161
(2) No reviewer, including board members and review 1,163
committee members, involved in the quality PEER review process 1,164
shall be permitted or required to testify as to any matters 1,166
produced, presented, disclosed, or discussed during or in 1,167
connection with the quality PEER review process; or be required 1,168
to testify to any finding, recommendation, evaluation, opinion, 1,170
or other actions of such committees, or their members. 1,171
(3) No privilege exists under this section for either of 1,173
26
the following: 1,174
(a) Information presented or considered in the quality 1,176
PEER review process which was otherwise available to the public; 1,177
(b) Materials prepared in connection with a particular 1,179
engagement merely because they subsequently are presented or 1,180
considered as part of the quality PEER review process. 1,181
(I)(L) If a quality PEER review report indicates that a 1,184
PUBLIC ACCOUNTING firm complies with standards and practices set 1,186
forth in board guidelines, the board shall destroy all documents 1,187
and reports related to the quality PEER review within thirty days 1,188
after the board completes its review of the report. If a quality 1,190
PEER review report indicates that a PUBLIC ACCOUNTING firm does 1,192
not comply with such standards and practices, the board shall 1,194
retain all documents and reports related to the quality PEER 1,195
review until completion of the next quality PEER review. 1,196
Sec. 4701.06. The certificate of "certified public 1,205
accountant" shall be granted by the accountancy board to any 1,206
person: 1,207
(A) Who is a resident of this state or has a place of 1,209
business therein IN THIS STATE or, as an employee, is regularly 1,210
employed therein IN THIS STATE. The board may by rule determine 1,212
circumstances under which the residency requirement may be 1,214
waived.
(B) Who has attained the age of eighteen years; 1,216
(C) Who is of good moral character; 1,218
(D) Who meets the requirements of education and experience 1,220
as provided in this division: 1,221
(1)(a) Prior to January 1, 2000, graduation with a 1,223
baccalaureate degree conferred by a college or university 1,224
recognized by the board, with a concentration in accounting that 1,225
includes related courses in other areas of business 1,226
administration, or what the board determines to be substantially 1,227
the equivalent of the foregoing; 1,228
(b) On and after January 1, 2000, graduation with a 1,230
27
baccalaureate or higher degree that includes successful 1,231
completion of one hundred fifty semester hours of undergraduate 1,232
or graduate education. The board shall by rule SHALL specify 1,233
graduate degrees that satisfy this requirement and shall also by 1,235
rule require such subjects as it considers appropriate. The 1,236
total educational program shall include an accounting 1,237
concentration with related courses in other areas of business 1,238
administration, as defined by board rule. 1,239
(2)(a) The experience requirement for candidates meeting 1,241
the educational requirements set forth in division (D)(1)(a) or 1,242
(b) of this section is two years ONE YEAR of public accounting 1,244
experience, satisfactory to the board, in any state in practice, 1,245
as a certified public accountant or as a public accountant, or, 1,246
in any state in employment, as a staff accountant by anyone 1,247
practicing public accounting, or such experience in private or 1,248
governmental accounting as is, in the opinion of the board, the 1,249
equivalent of such public accounting practice, or any combination 1,250
of such types of experience. 1,252
(b) The experience requirement is only one year of the 1,254
experience described in division (D)(2)(a) of this section for 1,255
any candidate holding a master's degree in accounting or business 1,256
administration from a college or university recognized by the 1,257
board, if he has satisfactorily completed such number of semester 1,260
hours in graduate accounting and such related subjects as the
board determines to be appropriate ANY OF THE FOLLOWING: 1,261
(i) A PUBLIC ACCOUNTING FIRM; 1,263
(ii) GOVERNMENT; 1,265
(iii) BUSINESS; 1,267
(iv) ACADEMIA. 1,269
(c)(b) Except as provided in division (D)(2)(d)(c) of this 1,272
section, the experience requirement for any candidate who, on and 1,273
after January 1, 2000, does not meet the educational requirement 1,274
set forth in division (D)(1)(b) of this section is four years of 1,275
experience described in division (D)(2)(a) of this section. The 1,276
28
experience requirement for any candidate who, prior to January 1, 1,277
2000, does not meet the educational requirement set forth in 1,278
division (D)(1)(a) of this section is two years of experience 1,279
described in division (D)(2)(a) of this section. 1,280
(d)(c) On and after January 1, 2000, the experience 1,282
requirement for any candidate who, subsequent to obtaining a 1,283
baccalaureate or higher degree, other than a baccalaureate or 1,284
higher degree described in division (D)(1)(b) of this section, 1,285
successfully completes coursework that meets the educational 1,286
requirement set forth in division (D)(1)(b) of this section, is 1,287
two years of experience described in division (D)(2)(a) of this 1,288
section. 1,289
(E) Who has passed a written examination in accounting and 1,291
auditing and in such related subjects as the board determines to 1,292
be appropriate. The board shall adopt rules, consistent with 1,293
this section, for these examinations and for application to take 1,294
these examinations. 1,295
None of the educational requirements specified in division 1,297
(D) of this section apply to a candidate who is registered as a 1,298
public accountant under section 4701.07 of the Revised Code, but 1,299
the experience requirement for such THE candidate who does not 1,300
meet such THOSE educational requirements is four years of the 1,302
experience described in division (D)(2)(a) of this section. 1,304
Prior to January 1, 2000, the board shall waive the 1,306
educational requirement set forth in division (D)(1)(a) of this 1,307
section for any candidate if it finds that the candidate has 1,308
attained the equivalent education by attendance at a business 1,309
school, by self-study, or otherwise, and if it is satisfied from 1,310
the results of special written examinations given the candidate 1,311
by the board to test his THE CANDIDATE'S educational 1,312
qualifications that he THE CANDIDATE is as well equipped, 1,313
educationally, as if he THE CANDIDATE met the applicable 1,314
educational requirement specified in division (D)(1)(a) of this 1,315
section.
29
On and after January 1, 2000, the board shall waive the 1,317
educational requirement set forth in division (D)(1)(b) of this 1,318
section for any candidate if the board finds that the candidate 1,319
has obtained from an accredited college or university approved by 1,320
the board, either an associate degree or a baccalaureate degree, 1,321
other than a baccalaureate degree described in division (D)(1)(b) 1,322
of this section, with a concentration in accounting that includes 1,323
related courses in other areas of business administration, and if 1,324
the board is satisfied from the results of special written 1,325
examinations given the candidate by the board to test his THE 1,326
CANDIDATE'S educational qualification that the candidate is as 1,327
well equipped, educationally, as if he THE CANDIDATE met the 1,329
applicable educational requirement specified in division 1,330
(D)(1)(b) of this section.
The board shall provide by rule for the general scope of 1,332
any special written examinations for a waiver of the educational 1,333
requirements under division (D)(1)(a) or (b) of this section, and 1,334
may obtain such advice and assistance as it considers appropriate 1,335
to assist it in preparing and grading such THOSE special written 1,336
examinations. The board may use any existing examinations or may 1,337
prepare any number of new examinations to assist in determining 1,338
the equivalent training of a candidate. The board shall by rule 1,339
SHALL prescribe any special written examinations for a waiver of 1,340
the educational requirements under division (D)(1)(a) or (b) of 1,341
this section and the passing score required for each examination. 1,342
The examinations described in division (E) of this section 1,344
and the special written examinations for a waiver of the 1,345
educational requirements under division (D)(1)(a) or (b) of this 1,346
section shall be held by the board and shall take place as often 1,347
as the board determines to be desirable, but the examinations 1,348
described in division (E) of this section shall be held not less 1,349
frequently than once each year. The board may make such THE use 1,350
of all or any part of the uniform certified public accountants' 1,352
examination and advisory grading service, or either, as it 1,353
30
considers appropriate to assist it in performing its duties 1,354
hereunder UNDER THIS SECTION. The board may also contract with 1,355
qualified organizations for assistance in the administration of 1,357
any examinations. The board by rule may provide for granting 1,358
credit to a candidate for his satisfactory completion of a 1,359
written examination in one or more of the subjects specified in 1,360
division (E) of this section given by the licensing authority in 1,361
any other state. 1,362
A candidate who has met the educational requirements, or 1,364
with respect to whom they either do not apply or have been 1,365
waived, is eligible to take the examination specified in division 1,366
(E) of this section without waiting until he THE CANDIDATE meets 1,367
the experience requirements, provided he THE CANDIDATE also meets 1,369
the requirements of divisions (A) and (C) of this section. 1,370
A candidate for the certificate of certified public 1,372
accountant who has successfully completed the examination under 1,373
division (E) of this section has no status as a certified public 1,374
accountant, unless and until he THE CANDIDATE has the requisite 1,375
experience and has received his A certificate as a certified 1,376
public accountant. The board shall determine and charge a fee 1,377
for issuing the certificate that is adequate to cover the 1,378
expense.
The board may by rule MAY prescribe the terms and 1,380
conditions under which a candidate who passes the examination in 1,381
one or more of the subjects indicated in division (E) of this 1,382
section may be reexamined in only the remaining subjects, with 1,383
credit for the subjects previously passed. It may also MAY 1,384
provide by rule for a reasonable waiting period for a candidate's 1,386
reexamination in a subject he THE CANDIDATE has failed. Subject 1,387
to the foregoing and such ANY other rules as THAT the board may 1,388
adopt governing reexaminations, a candidate is entitled to any 1,390
number of reexaminations under division (E) of this section. No 1,391
candidate shall be required to be reexamined in all subjects 1,392
unless a period of four years has elapsed since the candidate 1,393
31
initially earned credit on the examination. 1,394
The applicable educational and experience requirements 1,396
under division (D) of this section shall be those in effect on 1,397
the date on which the candidate first sits for the examination. 1,398
The board shall charge such candidate a reasonable fee, to 1,400
be determined by the board, that is adequate to cover all 1,401
rentals, compensation for proctors, and other administrative 1,402
expenses of the board related to examination or reexamination, 1,403
including the expenses of procuring and grading the examination 1,404
provided for in division (E) of this section and for any special 1,405
written examinations for a waiver of the educational requirements 1,406
under division (D)(1)(a) or (b) of this section. Fees for 1,407
reexamination under division (E) of this section shall be charged 1,408
by the board in amounts determined by it. The applicable fees 1,409
shall be paid by the candidate at the time he THE CANDIDATE 1,410
applies for examination or reexamination. 1,411
Any person who has received from the board a certificate as 1,413
a certified public accountant and who holds a AN OHIO permit 1,415
issued under section 4701.10 of the Revised Code, which is in 1,416
full force and effect, shall be styled and known as a "certified 1,417
public accountant" and may also MAY use the abbreviation "CPA." 1,419
The board shall maintain a list of certified public accountants. 1,420
Any certified public accountant may also MAY be known as a 1,421
"public accountant." 1,422
Persons who, on the effective date of an amendment of this 1,424
section, held certified public accountant certificates 1,425
theretofore issued under the laws of this state shall not be 1,426
required to obtain additional certificates under this section, 1,427
but shall otherwise be subject to all provisions of this section; 1,428
and such THOSE certificates theretofore issued shall, for all 1,430
purposes, SHALL be considered certificates issued under this 1,431
section and subject to the ITS provisions hereof. 1,432
The board may waive the examination under division (E) of 1,434
this section, and upon payment of a fee determined by it may 1,435
32
issue a certificate as a "certified public accountant" to any 1,436
person possessing the qualifications specified in divisions (A), 1,437
(B), and (C) of this section and what the board determines to be 1,438
substantially the equivalent of the applicable qualifications 1,439
under division (D) of this section, who is the holder of a 1,440
certificate as a certified public accountant, then in full force 1,441
and effect, issued under the laws of any state, or is the holder 1,442
of a certificate, license, or degree in a foreign country 1,443
constituting a recognized qualification for the practice of 1,444
public accounting in such country, comparable to that of a 1,445
certified public accountant of this state, which is then in full 1,446
force and effect. 1,447
Sec. 4701.061. Notwithstanding anything to the contrary in 1,456
section 4701.06 of the Revised Code, the certificate of 1,457
"certified public accountant" shall be granted by the accountancy 1,458
board to any public accountant who meets all the following 1,459
requirements: 1,460
(A) The public accountant applies to the board for the 1,462
certificate under this section; 1,463
(B) At the time of application and the time that the 1,465
certificate is granted, the public accountant holds a live AN 1,467
OHIO permit issued under division (A) of section 4701.10 of the 1,468
Revised Code;
(C) At the time of application, any public accounting firm 1,470
that employs the public accountant or in which the public 1,471
accountant has an interest is registered, and meets the 1,472
applicable quality PEER review requirements of the board, under 1,473
section 4701.04 of the Revised Code; 1,474
(D) For not less than one hundred twenty months, the 1,476
public accountant has held a AN OHIO permit issued under division 1,478
(A) of section 4701.10 of the Revised Code and has completed and 1,479
reported to the board all applicable continuing education hours 1,480
required by section 4701.11 of the Revised Code and the rules 1,481
adopted pursuant thereto. 1,482
33
Sec. 4701.07. The accountancy board shall register as a 1,491
public accountant any person who meets all the following 1,492
requirements: 1,493
(A) Is a resident of this state, or has a place of 1,495
business therein; 1,496
(B) Has attained the age of eighteen years; 1,498
(C) Is of good moral character; 1,500
(D) Holds a baccalaureate or higher degree conferred by a 1,502
college or university recognized by the board, with a 1,503
concentration in accounting, or with what the board determines to 1,504
be substantially THE equivalent of the foregoing; or with a 1,505
nonaccounting concentration supplemented by what the board 1,506
determines to be substantially the equivalent of an accounting 1,507
concentration, including related courses in other areas of 1,508
business administration. 1,509
The board may waive the educational requirement for any 1,511
candidate if it finds that the candidate has attained the 1,512
equivalent education by attendance at a business school or 1,513
two-year college, by self-study, or otherwise, and if it is 1,514
satisfied from the result of a special written examination given 1,515
the candidate by the board to test his THE CANDIDATE'S 1,516
educational qualifications that he THE CANDIDATE is as well 1,517
equipped, educationally, as if he THE CANDIDATE met the 1,518
applicable educational requirement specified in this division. 1,519
The board may provide by rule for the general scope of such THESE 1,520
examinations and may obtain such advice and assistance as it 1,521
considers appropriate to assist it in preparing and grading such 1,522
THE special examinations. The board may use any existing 1,524
examinations or may prepare any number of new examinations to 1,525
assist it in determining the equivalent training of a candidate. 1,526
The board may by rule MAY prescribe such examinations and the 1,527
passing score required for each examination. 1,529
(E) Has completed two years of public accounting 1,531
experience, satisfactory to the board, in any state in practice 1,532
34
as a public accountant, or in any state in employment, as a staff 1,533
accountant by anyone practicing public accounting, or such 1,534
experience in private or governmental accounting as will, in the 1,535
opinion of the board, WILL be the equivalent of such public 1,536
accounting practice, or any combination of such types of 1,537
experience, except that the experience requirement is only one 1,538
year of the experience described in this division for any 1,539
candidate holding a master's degree in accounting or business 1,540
administration from a college or university recognized by the 1,541
board, if he THE CANDIDATE has satisfactorily completed such THE 1,542
number of credit hours in accounting, business administration, 1,544
economics, and such related subjects as the board determines to 1,545
be appropriate; and
(1) Has passed the uniform national society of public 1,547
accountants examination or a comparable examination approved by 1,548
the public accountant members of the accountancy board; or 1,549
(2) Has passed the accounting practice and auditing 1,551
sections of the uniform CPA examination. 1,552
The examination described in division (E)(1) of this 1,554
section shall be held by the board and shall take place as often 1,555
as the board determines, but shall not be held less frequently 1,556
than once each year. The board shall charge a candidate an 1,557
application fee, to be determined by the board, that is adequate 1,558
to cover all rentals, compensation for proctors, and other 1,559
expenses of the board related to examination or reexamination 1,560
except the expenses of procuring and grading the examination. In 1,561
addition, the board shall charge such candidate an examination 1,562
fee to be determined by the board, that is adequate to cover the 1,563
expense of procuring and grading the examination. Fees for 1,564
reexamination under division (E) of this section shall also SHALL 1,566
be charged by the board in amounts determined by it to be 1,567
adequate to cover the expenses of procuring and grading the 1,568
examinations. The applicable fees shall be paid by the candidate 1,569
at the time he THE CANDIDATE applies for examination or 1,570
35
reexamination.
(F) Applied, on or before the effective date of this 1,572
amendment APRIL 16, 1993, for registration as a public 1,574
accountant.
The board shall determine and charge a fee for registration 1,576
under this section that is adequate to cover the expense. 1,577
The board shall in each case SHALL determine whether the 1,579
applicant is eligible for registration. Any individual who is so 1,580
registered and who holds a AN OHIO permit issued under section 1,582
4701.10 of the Revised Code shall be styled and known as a 1,583
"public accountant" and may use the abbreviation "PA." 1,584
A person who, on the effective date of an amendment of this 1,586
section, holds a valid registration as a public accountant issued 1,587
under the laws of this state shall not be required to obtain 1,588
additional registration under this section, but shall otherwise 1,589
be subject to all provisions of this section; and such THAT 1,591
registration shall, for all purposes, SHALL be considered a 1,592
registration issued under this section and subject to the ITS 1,594
provisions hereof.
Sec. 4701.10. (A) Permits to practice public accounting 1,604
shall be issued by the THE accountancy board SHALL ISSUE OHIO 1,605
PERMITS TO PRACTICE PUBLIC ACCOUNTING to holders of the 1,607
certificate of certified public accountant issued under section 1,608
4701.06 or 4701.061 of the Revised Code and to persons registered 1,609
under sections 4701.07 and 4701.09 of the Revised Code. Subject 1,610
to division (D)(1) of this section, there shall be a triennial 1,611
OHIO permit fee in an amount to be determined by the board not to 1,613
exceed one hundred fifty dollars. All OHIO permits shall expire 1,615
on the last day of December of the year assigned by the board 1,616
and, subject to division (D)(1) of this section, shall be renewed 1,617
triennially for a period of three years by certificate holders 1,618
and registrants in good standing upon payment of a triennial 1,619
renewal fee not to exceed one hundred fifty dollars. For the
purpose of implementing this section and enforcing section 1,621
36
4701.11 of the Revised Code, the board may issue a AN OHIO permit 1,622
for less than three years' duration. A prorated fee shall be 1,623
determined by the board for such THAT OHIO permit. Renewal of 1,625
OHIO permits shall be according to the standard renewal procedure 1,626
of sections 4745.01 to 4745.03 of the Revised Code. Failure of 1,627
any certificate holder or registrant to apply for a triennial 1,628
OHIO permit to practice within three years from the expiration 1,630
date of the OHIO permit to practice last obtained or renewed, or 1,631
three years from the date upon which the certificate holder or 1,633
registrant was granted his A certificate or registration, shall 1,634
result in suspension of such certificate or registration unless 1,635
the board determines such failure to have been due to excusable 1,636
neglect. In such THAT case, the renewal fee or the fee for the 1,638
issuance of the original OHIO permit, as the case may be, shall 1,639
be such amount as the board shall determine, but not in excess of 1,641
fifty dollars plus the fee for each triennial period or part of a 1,642
period the certificate holder or registrant did not have a AN 1,643
OHIO permit. 1,644
(B) All certificate holders and registrants who are not in 1,646
the practice of public accounting in this state shall register 1,647
with the board every three years at a fee, not to exceed 1,648
fifty-five dollars, established by the board. Such persons shall 1,649
not convey to the general public that they are actively engaged 1,650
in the practice of public accounting in this state. 1,651
(C) The board shall suspend the certificate or 1,653
registration of any person failing to obtain a AN OHIO permit in 1,655
accordance with this section except that the board may by rule 1,656
MAY exempt persons from the requirement of holding a AN OHIO 1,659
permit for such reasons as retirement, health reasons, military 1,660
service, foreign residency, or other just cause. 1,661
(D)(1) On and after January 1, 1995, the board shall, by 1,663
rule adopted in accordance with Chapter 119. of the Revised Code, 1,664
SHALL increase the triennial OHIO permit and renewal fee imposed 1,666
pursuant to this section by at least fifteen dollars but no more 1,667
37
than thirty dollars. 1,668
(2) Beginning with the first quarter of 1995 and each 1,670
quarter thereafter, the board, for the purpose provided in 1,671
section 4743.05 of the Revised Code, shall certify to the 1,672
director of budget and management the number of triennial OHIO 1,673
permits renewed under this chapter during the preceding quarter 1,675
and the amount equal to that number times the amount by which the 1,676
triennial OHIO permit and renewal fee is increased by the board 1,678
under division (D)(1) of this section. 1,679
Sec. 4701.11. The accountancy board may adopt rules 1,688
requiring that each applicant for the OHIO permit required by 1,689
section 4701.10 of the Revised Code shall have demonstrated to 1,691
the satisfaction of the board that the applicant has maintained a 1,692
high level of professional competence by the completion of 1,693
programs of continuing education satisfactory to the board during 1,694
the period immediately prior to the application for the permit or 1,695
renewal. The board shall not require more than one hundred 1,696
twenty hours of such programs over any three-year period for 1,697
applicants possessing a live AN OHIO permit. For purposes of 1,699
this section, the board shall not approve any continuing 1,700
education courses for which fees are charged and which are 1,701
sponsored by an accounting association in this state unless such 1,702
courses are open to all persons registered or certified under 1,703
this chapter and unless the fees charged are reasonable for all 1,704
persons desiring to take the courses. 1,705
The board may issue a AN OHIO permit required by section 1,708
4701.10 of the Revised Code for less than three years to any 1,709
person who is unable to complete continuing education hours 1,710
required for renewal of a triennial OHIO permit for good cause, 1,711
as established by rule. Such THE OHIO permit shall be 1,713
conditioned upon the completion of all required continuing 1,715
education hours during the period for which such THE OHIO permit 1,716
is issued.
Sec. 4701.12. The display or uttering by a person of a 1,725
38
card, sign, advertisement, or other printed, engraved, or written 1,726
instrument or device, bearing a person's name in conjunction with 1,728
the words "certified public accountant" or any abbreviation 1,729
thereof, or "public accountant" or any abbreviation thereof shall 1,730
be prima-facie evidence in any action brought under section 1,732
4701.18 or section 4701.99 of the Revised Code, that the person
whose name is so displayed caused or procured the display or 1,733
uttering of such THAT card, sign, advertisement, or other 1,735
printed, engraved, or written instrument or device, and that such 1,737
THE person is holding himself SELF out to be a certified public 1,739
accountant or a public accountant holding a AN OHIO permit to 1,740
practice under section 4701.10 of the Revised Code. In any 1,741
action, evidence of the commission of a single act prohibited by 1,742
this section shall be sufficient to justify an injunction or a 1,743
conviction without evidence of a general course of conduct. 1,744
Sec. 4701.13. The accountancy board shall publish annually 1,753
a printed register, which shall contain in separate lists the 1,755
names and business addresses of all certified public accountants 1,756
and public accountants holding live OHIO permits as of the date 1,758
of preparation of the register.
Sec. 4701.14. (A) No person EXCEPT AS PERMITTED BY RULES 1,767
ADOPTED BY THE ACCOUNTANCY BOARD, NO INDIVIDUAL shall assume or 1,768
use the title or designation "certified public accountant," 1,770
"CERTIFIED ACCOUNTANT," "CHARTERED ACCOUNTANT," "ENROLLED
ACCOUNTANT," "LICENSED ACCOUNTANT," "REGISTERED ACCOUNTANT," OR 1,771
ANY OTHER TITLE OR DESIGNATION LIKELY TO BE CONFUSED WITH 1,772
"CERTIFIED PUBLIC ACCOUNTANT," or abbreviation ANY OF THE 1,775
ABBREVIATIONS "CPA," "PA," "CA," "EA," "LA," OR "RA," OR SIMILAR 1,781
ABBREVIATIONS LIKELY TO BE CONFUSED WITH "CPA," or any other 1,783
title, designation, words, letters, abbreviation, sign, card, or 1,784
device tending to indicate that the person INDIVIDUAL is a 1,785
certified public accountant, unless the person has received 1,787
INDIVIDUAL HOLDS a CPA certificate as a certified public 1,788
accountant under section 4701.06 or 4701.061 of the Revised Code 1,789
39
and holds a live AN OHIO permit issued under section 4701.10 of 1,791
the Revised Code; provided that a foreign accountant who. 1,793
HOWEVER, AN INDIVIDUAL WHO POSSESSES A FOREIGN CPA CERTIFICATE, 1,794
has registered under section 4701.09 of the Revised Code, and 1,796
holds a live AN OHIO permit issued under section 4701.10 of the 1,797
Revised Code may use the title PERMITTED under which he is 1,798
generally known in his country THE LAWS OF THE INDIVIDUAL'S OTHER 1,800
LICENSING JURISDICTION, followed by the name of the country from 1,802
which he received his certificate, license, or degree 1,804
JURISDICTION.
(B) No partnership shall assume or use the title or 1,806
designation "certified public accountant" or abbreviation "CPA" 1,808
or any other title, designation, words, letters, abbreviation, 1,809
sign, card, or device tending to indicate that the partnership is 1,811
composed of certified public accountants unless it meets all of
the following requirements: 1,812
(1) At least one general partner of the partnership is a 1,814
certified public accountant of this state in good standing. 1,815
(2) Each partner who is personally engaged within this 1,817
state in the practice of public accounting as a member of the 1,818
partnership is a certified public accountant of this state in 1,819
good standing.
(3) Each partner of the partnership is a certified public 1,823
accountant of some state in good standing. 1,824
(4) Each resident manager in charge of an office of the 1,826
firm in this state is a certified public accountant of this state 1,827
in good standing. 1,828
(C) No person EXCEPT AS PERMITTED BY RULES ADOPTED BY THE 1,830
BOARD, NO INDIVIDUAL shall assume or use the title or designation 1,831
"public accountant," or "CERTIFIED PUBLIC ACCOUNTANT," "CERTIFIED 1,833
ACCOUNTANT," "CHARTERED ACCOUNTANT," "ENROLLED ACCOUNTANT," 1,834
"REGISTERED ACCOUNTANT," OR "LICENSED ACCOUNTANT," OR ANY OTHER 1,835
TITLE OR DESIGNATION LIKELY TO BE CONFUSED WITH "PUBLIC 1,836
ACCOUNTANT," OR ANY OF THE ABBREVIATIONS "PA," "CPA," "CA," "EA," 1,841
40
"LA," OR "RA," OR SIMILAR ABBREVIATIONS LIKELY TO BE CONFUSED 1,844
WITH "PA," or any other title, designation, words, letters, 1,847
abbreviation, sign, card, or device tending to indicate that the 1,848
person INDIVIDUAL is a public accountant, unless the person is 1,850
registered as a public accountant under section 4701.07 of the 1,851
Revised Code and INDIVIDUAL HOLDS A PA REGISTRATION AND holds a 1,852
live AN OHIO permit issued under section 4701.10 of the Revised 1,854
Code, or unless the person has received a INDIVIDUAL HOLDS A CPA 1,855
certificate as a certified public accountant under section 1,856
4701.06 or 4701.061 of the Revised Code or holds a live permit 1,857
issued under section 4701.10 of the Revised Code. AN INDIVIDUAL 1,859
WHO HOLDS A PA REGISTRATION AND AN OHIO PERMIT MAY HOLD SELF OUT 1,861
TO THE PUBLIC AS AN "ACCOUNTANT" OR "AUDITOR." 1,862
(D) No partnership shall assume or use the title or 1,864
designation "public accountant" or abbreviation "PA" or any other 1,866
title, designation, words, letters, abbreviation, sign, card, or 1,867
device tending to indicate that the partnership is composed of 1,868
public accountants, unless all of the following apply: 1,869
(1) At least one general partner of the partnership is a 1,871
certified public accountant or a public accountant of this state 1,872
in good standing. 1,873
(2) Each partner who is personally engaged within this 1,875
state in the practice of public accounting as a member of the 1,876
partnership is a certified public accountant or a public 1,877
accountant of this state in good standing. 1,878
(3) Each resident manager in charge of an office of a firm 1,880
in this state is a certified public accountant or a public 1,881
accountant of this state in good standing. 1,882
(E) No person or partnership shall assume or use the title 1,884
or designation "certified accountant," "chartered accountant," 1,885
"enrolled accountant," "licensed accountant," "registered 1,886
accountant," or any other title or designation likely to be 1,887
confused with "certified public accountant" or "public 1,888
accountant," or any of the abbreviations "CA," "EA," "RA," or"LA" or similar abbreviations likely to be confused with "CPA" or 1,894
"PA"; provided that anyone who holds a live permit issued under 1,897
section 4701.10 of the Revised Code may hold himself out to the 1,898
public as an "accountant" or "auditor"; and provided that a 1,900
foreign accountant who has registered under section 4701.09 of 1,901
the Revised Code and holds a live permit issued under section 1,902
4701.10 of the Revised Code may use the title under which he is 1,904
generally known in his country, followed by the name of the 1,906
country from which he received his certificate, license, or 1,908
degree. 1,909
(F) No (C) EXCEPT AS PROVIDED IN DIVISIONS (C)(1), (2), 1,912
(3), AND (4) OF THIS SECTION, NO PARTNERSHIP, professional 1,914
association, corporation-for-profit, limited liability company, 1,917
or other legal entity BUSINESS ORGANIZATION not addressed in 1,918
another division of this section THAT IS PRACTICING PUBLIC 1,920
ACCOUNTING IN THIS STATE shall assume or use the title or 1,922
designation "certified public accountant," or "public 1,923
accountant," and no professional association, 1,925
corporation-for-profit, limited liability company, or other legal 1,926
entity not addressed in another division of this section shall
assume or use the title or designation "certified accountant," 1,928
"chartered accountant," "enrolled accountant," "licensed 1,929
accountant," "registered accountant," or any other title or 1,930
designation likely to be confused with "certified public 1,931
accountant" or "public accountant," or any of the abbreviations 1,932
"CPA," "PA," "CA," "EA," "RA," or "LA," or similar abbreviations 1,934
likely to be confused with "CPA" or "PA," except that a OR ANY 1,937
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 1,938
CARD, OR DEVICE TENDING TO INDICATE THAT THE BUSINESS 1,939
ORGANIZATION IS A PUBLIC ACCOUNTING FIRM.
(1)(a) A PARTNERSHIP MAY ASSUME OR USE THE TITLE OR 1,942
DESIGNATION "CERTIFIED PUBLIC ACCOUNTANT," THE ABBREVIATION 1,943
"CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, LETTERS, 1,944
ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE THAT THE 1,945
42
PARTNERSHIP IS COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS IF IT IS 1,946
A REGISTERED FIRM AND A MAJORITY OF ITS PARTNERS WHO ARE 1,947
INDIVIDUALS HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE, AND 1,950
A MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A PARTNER 1,951
HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE. 1,953
(b) A PARTNERSHIP MAY ASSUME OR USE THE TITLE OR 1,956
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 1,957
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 1,958
CARD, OR DEVICE TENDING TO INDICATE THAT THE PARTNERSHIP IS 1,959
COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A REGISTERED FIRM AND A 1,960
MAJORITY OF ITS PARTNERS WHO ARE INDIVIDUALS HOLD A PA 1,962
REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN CERTIFICATE, AND A 1,965
MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A PARTNER 1,966
HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN 1,969
CERTIFICATE.
(2)(a) A professional association organized for the 1,971
practice of public accounting and incorporated under Chapter 1,973
1785. of the Revised Code may assume or use the title OR 1,974
DESIGNATION "certified public accountant," if all of its 1,976
shareholders are certified public accountants in good standing 1,979
under the law of this state or another state or may assume or use 1,980
the title "public accountant" if all of its shareholders are 1,981
public accountants in good standing under this chapter or its 1,984
shareholders consist of certified public accountants and public 1,985
accountants in good standing under this chapter, except that a 1,986
THE ABBREVIATION "CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, 1,989
LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE 1,990
THAT THE PROFESSIONAL ASSOCIATION IS COMPOSED OF CERTIFIED PUBLIC 1,991
ACCOUNTANTS, IF IT IS A REGISTERED FIRM AND A MAJORITY OF ITS 1,992
SHAREHOLDERS WHO ARE INDIVIDUALS HOLD A CPA CERTIFICATE OR A 1,993
FOREIGN CERTIFICATE, AND A MAJORITY OF THE OWNERS OF ANY 1,996
QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A CPA CERTIFICATE OR A 1,997
FOREIGN CERTIFICATE. 1,998
(b) A PROFESSIONAL ASSOCIATION INCORPORATED UNDER CHAPTER 2,001
43
1785. OF THE REVISED CODE MAY ASSUME OR USE THE TITLE OR 2,003
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 2,004
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,005
CARD, OR DEVICE TENDING TO INDICATE THAT THE PROFESSIONAL 2,006
ASSOCIATION IS COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A 2,007
REGISTERED FIRM AND A MAJORITY OF ITS SHAREHOLDERS WHO ARE 2,008
INDIVIDUALS HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A 2,010
FOREIGN CERTIFICATE, AND A MAJORITY OF THE OWNERS OF ANY 2,013
QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A PA REGISTRATION, A 2,014
CPA CERTIFICATE, OR A FOREIGN CERTIFICATE. 2,016
(3)(a) A corporation-for-profit organized for the practice 2,019
of public accounting and incorporated under Chapter 1701. of the 2,021
Revised Code may assume or use the title OR DESIGNATION
"certified public accountant," if all of its shareholders are 2,026
certified public accountants in good standing under the law of 2,028
this state or another state or may assume or use the title 2,029
"public accountant" if all of its shareholders are public 2,031
accountants in good standing under this chapter or its 2,032
shareholders consist of certified public accountants and public 2,034
accountants in good standing under this chapter, and except that 2,035
a THE ABBREVIATION "CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, 2,038
LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE 2,039
THAT THE CORPORATION IS COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS 2,040
IF IT IS A REGISTERED FIRM AND A MAJORITY OF ITS SHAREHOLDERS WHO 2,041
ARE INDIVIDUALS HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE, 2,043
AND A MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A 2,045
SHAREHOLDER HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE. 2,047
(b) A CORPORATION INCORPORATED UNDER CHAPTER 1701. OF THE 2,050
REVISED CODE MAY ASSUME OR USE THE TITLE OR DESIGNATION "PUBLIC 2,052
ACCOUNTANT," THE ABBREVIATION "PA," OR ANY OTHER TITLE, 2,053
DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE 2,054
TENDING TO INDICATE THAT THE CORPORATION IS COMPOSED OF PUBLIC 2,055
ACCOUNTANTS IF IT IS A REGISTERED FIRM AND A MAJORITY OF THE 2,056
SHAREHOLDERS WHO ARE INDIVIDUALS HOLD A PA REGISTRATION, A CPA 2,059
44
CERTIFICATE, OR A FOREIGN CERTIFICATE, AND A MAJORITY OF THE 2,061
OWNERS OF ANY QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A PA 2,063
REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN CERTIFICATE. 2,065
(4)(a) A limited liability company formed ORGANIZED under 2,068
Chapter 1705. of the Revised Code for the purpose of rendering 2,070
public accounting services may assume and OR use the title OR 2,073
DESIGNATION "certified public accountant," if each member of the 2,076
company and, if the management of the company is not reserved to 2,077
its members, each manager of the company is a certified public 2,079
accountant in good standing under the law of this state or 2,081
another state or may assume and use the title "public accountant" 2,082
if each member of the company and, if the management of the 2,083
company is not reserved to its members, each manager of the 2,086
company is a public accountant in good standing under this 2,087
chapter or those members and, if applicable, managers are either 2,089
a certified public accountant or a public accountant in good 2,091
standing under this chapter THE ABBREVIATION "CPA," OR ANY OTHER 2,094
TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, CARD, OR 2,095
DEVICE TENDING TO INDICATE THAT THE LIMITED LIABILITY COMPANY IS 2,096
COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS IF IT IS A REGISTERED 2,097
FIRM AND A MAJORITY OF ITS MEMBERS WHO ARE INDIVIDUALS HOLD A CPA 2,099
CERTIFICATE OR A FOREIGN CERTIFICATE, AND A MAJORITY OF THE 2,101
OWNERS OF ANY QUALIFIED FIRM THAT IS A MEMBER HOLD A CPA 2,103
CERTIFICATE OR A FOREIGN CERTIFICATE. 2,104
(b) A LIMITED LIABILITY COMPANY ORGANIZED UNDER CHAPTER 2,107
1705. OF THE REVISED CODE MAY ASSUME OR USE THE TITLE OR 2,110
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 2,111
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,112
CARD, OR DEVICE TENDING TO INDICATE THAT THE LIMITED LIABILITY 2,113
COMPANY IS COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A REGISTERED 2,114
FIRM AND A MAJORITY OF THE MEMBERS WHO ARE INDIVIDUALS HOLD A PA 2,116
REGISTRATION, CPA CERTIFICATE, OR A FOREIGN CERTIFICATE, AND A 2,119
MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A MEMBER 2,120
HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN 2,122
45
CERTIFICATE. 2,123
(G)(D) No person INDIVIDUAL shall sign, affix, or 2,126
associate his THE INDIVIDUAL'S name or any trade or assumed name 2,128
used by him THE INDIVIDUAL in his THE INDIVIDUAL'S profession or 2,130
business to any opinion, review report, compilation report, 2,131
examination report, or agreed-upon procedures report on a 2,132
financial statement ATTEST REPORT with any wording indicating 2,133
that he THE INDIVIDUAL is an accountant or auditor, or with any 2,136
wording accompanying or contained in the opinion or ATTEST report 2,137
that indicates that he THE INDIVIDUAL has expert knowledge in 2,140
accounting or auditing or expert knowledge regarding compliance 2,141
with conditions established by law or contract, including, but 2,142
not limited to, statutes, ordinances, regulations, grants, loans, 2,143
and appropriations, unless he THE INDIVIDUAL holds a live AN OHIO 2,145
permit issued under section 4701.10 of the Revised Code; provided 2,147
that. HOWEVER, this division does not prohibit any officer, 2,149
employee, partner, or principal of any organization from affixing 2,150
his THE OFFICER'S, EMPLOYEE'S, PARTNER'S, OR PRINCIPAL'S 2,151
signature to any statement or report in reference to the 2,152
financial affairs of that organization with any wording 2,153
designating the position, title, or office that he THE INDIVIDUAL 2,154
holds in that organization; and provided that this. THIS 2,155
division ALSO does not prohibit any act of a public official or 2,157
public employee in the performance of his THE PUBLIC OFFICIAL'S 2,158
OR PUBLIC EMPLOYEE'S duties. 2,159
(H)(E) No person shall sign, affix, or associate the name 2,161
of a partnership, limited liability company, professional 2,163
association, corporation-for-profit, or other legal entity 2,164
BUSINESS ORGANIZATION not addressed in another division of this 2,166
section to any opinion, review report, compilation report, 2,167
examination report, or agreed-upon procedures report on a 2,168
financial statement ATTEST REPORT with any wording accompanying 2,169
or contained in the opinion or ATTEST report that indicates that 2,170
the partnership, limited liability company, professional 2,172
46
association, corporation-for-profit, or other legal entity 2,173
BUSINESS ORGANIZATION is composed of or employs accountants or 2,176
auditors or persons having expert knowledge in accounting or
auditing or expert knowledge regarding compliance with conditions 2,177
established by law or contract, including, but not limited to, 2,178
statutes, ordinances, regulations, grants, loans, and 2,179
appropriations, unless the partnership is entitled to designate 2,181
itself as a partnership of certified public accountants under 2,182
division (B) of this section or as a partnership of public 2,183
accountants under division (D) of this section and, if it is 2,185
required to be registered, is registered under section 4701.04 of 2,186
the Revised Code or unless the, limited liability company, 2,187
professional association, or corporation-for-profit is entitled 2,188
to designate itself as a limited liability company, professional 2,190
association, or corporation-for-profit of certified public 2,191
accountants or public accountants under division (F) of this 2,192
section and, if it is required to be registered, OR OTHER
BUSINESS ORGANIZATION is A registered under section 4701.04 of 2,194
the Revised Code FIRM.
(I)(F) No person INDIVIDUAL not holding a live AN OHIO 2,197
permit under section 4701.10 of the Revised Code shall hold 2,198
himself SELF out to the public as an "accountant" or "auditor" by 2,200
use of either or both of those words on any sign, card, or 2,201
letterhead, in any advertisement or directory, or otherwise, 2,202
without indicating thereon or therein that the person does not 2,203
hold a live AN OHIO permit; provided that. AN INDIVIDUAL WHO 2,204
HOLDS A CPA CERTIFICATE AND AN OHIO PERMIT MAY HOLD SELF OUT TO 2,205
THE PUBLIC AS AN "ACCOUNTANT" OR "AUDITOR." HOWEVER, this 2,207
division does not prohibit any officer, employee, partner, or 2,208
principal of any organization from describing himself SELF by the 2,210
position, title, or office he THE PERSON holds in that 2,211
organization; and provided that this. THIS division ALSO does 2,213
not prohibit any act of a public official or public employee in 2,215
the performance of his THE PUBLIC OFFICIAL'S OR PUBLIC EMPLOYEE'S 2,216
47
duties.
(J)(G) No partnership that is not entitled to designate 2,218
itself as a partnership of certified public accountants under 2,220
division (B) of this section or as a partnership of public 2,221
accountants under division (D) of this section, and no limited 2,222
liability company, professional association, 2,224
corporation-for-profit, LIMITED LIABILITY COMPANY, or other legal 2,225
entity BUSINESS ORGANIZATION not addressed in another division of 2,226
this section that is not entitled to assume or use the title 2,227
"certified public accountant" or "public accountant" under 2,228
division (F)(C) of this section, shall hold itself out to the 2,230
public as a firm, partnership, limited liability company, 2,231
professional association, corporation-for-profit, LIMITED 2,232
LIABILITY COMPANY, or other legal entity BUSINESS ORGANIZATION 2,233
not addressed in another division of this section of AS BEING 2,235
COMPOSED OF OR EMPLOYING "accountants" or "auditors" by use of 2,237
either or both of those words on any sign, card, or letterhead, 2,238
in any advertisement or directory, or otherwise, without 2,239
indicating thereon or therein that the partnership, limited 2,240
liability company, professional association, 2,241
corporation-for-profit, LIMITED LIABILITY COMPANY, or other legal 2,243
entity BUSINESS ORGANIZATION is not A REGISTERED FIRM AND IS NOT 2,244
permitted by law to practice as a partnership, limited liability 2,246
company, professional association, corporation-for-profit, or 2,247
other legal entity of public accountants PUBLIC ACCOUNTING FIRM.
(K)(H) No person shall assume or use the title or 2,249
designation "certified public accountant" or "public accountant" 2,250
in conjunction with names indicating or implying that there is a 2,251
partnership or in conjunction with the designation "and Company" 2,252
or "and Co." or a similar designation if, in any such case, there 2,253
is in fact no bona fide partnership entitled to designate itself 2,254
as a partnership of certified public accountants under division 2,255
(B)(C)(1)(a) of this section or as a partnership of public 2,256
accountants under division (D)(C)(1)(b) of this section; provided 2,258
48
that. HOWEVER, a sole proprietor or partnership that was on 2,261
October 22, 1959, or a corporation that on or after September 30, 2,262
1974, has been, lawfully using a title or designation of those 2,263
types in conjunction with names or designations of those types, 2,264
may continue to do so if he or it THE SOLE PROPRIETOR, 2,265
PARTNERSHIP, OR CORPORATION otherwise complies with this section. 2,266
(I)(1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS 2,268
CHAPTER, AN INDIVIDUAL WHOSE PRINCIPAL PLACE OF BUSINESS IS NOT 2,269
IN THIS STATE AND WHO HAS A VALID CERTIFICATION AND LICENSE OR 2,270
PERMIT AS A CERTIFIED PUBLIC ACCOUNTANT FROM ANY OTHER UNITED 2,272
STATES JURISDICTION IS DEEMED TO HAVE QUALIFICATIONS 2,273
SUBSTANTIALLY EQUIVALENT TO THIS STATE'S REQUIREMENTS AND HAS ALL 2,274
THE PRIVILEGES OF CERTIFICATE HOLDERS AND LICENSEES OF THIS STATE 2,275
WITHOUT THE NEED TO OBTAIN AN OHIO PERMIT AND CPA CERTIFICATE. 2,276
(2) ANY INDIVIDUAL EXERCISING THE PRIVILEGE AFFORDED UNDER 2,278
THIS SECTION HEREBY CONSENTS AND IS SUBJECT, AS A CONDITION OF 2,279
THE GRANT OF THIS PRIVILEGE, TO: 2,280
(a) THE PERSONAL AND SUBJECT MATTER JURISDICTION OF THE 2,282
BOARD; 2,283
(b) ALL PRACTICE AND DISCIPLINARY PROVISIONS OF THIS 2,285
CHAPTER AND THE BOARD'S RULES; 2,286
(c) THE APPOINTMENT OF THE BOARD THAT ISSUED THE 2,288
INDIVIDUAL'S CPA CERTIFICATE OR PERMIT AS THE INDIVIDUAL'S AGENT 2,290
UPON WHOM PROCESS MAY BE SERVED IN ANY ACTION OR PROCEEDING BY 2,291
THE ACCOUNTANCY BOARD OF OHIO AGAINST THE LICENSEE. 2,292
(3) HOLDERS OF AN OHIO PERMIT OR CPA CERTIFICATE OFFERING 2,295
OR RENDERING ATTEST SERVICES OR USING THEIR CPA TITLE IN ANOTHER 2,296
UNITED STATES JURISDICTION ARE SUBJECT TO DISCIPLINARY ACTION IN 2,297
THIS STATE FOR AN ACT COMMITTED IN ANOTHER UNITED STATES 2,298
JURISDICTION FOR WHICH THE HOLDERS OF THAT JURISDICTION'S PERMIT 2,299
OR CPA CERTIFICATE WOULD BE SUBJECT TO DISCIPLINE IN THAT 2,301
JURISDICTION.
(4) ANY HOLDER OF A CPA CERTIFICATE OR PERMIT ISSUED BY 2,303
ANOTHER UNITED STATES JURISDICTION WHO PERFORMS ATTEST SERVICES 2,305
49
OR USES SUCH CPA TITLE OR DESIGNATION IN THIS STATE PURSUANT TO 2,306
THE PRIVILEGE ESTABLISHED BY THIS SECTION IS SUBJECT TO 2,307
DISCIPLINARY ACTION IN THIS STATE FOR ANY ACTION COMMITTED IN 2,308
THIS STATE WHICH WOULD SUBJECT THE HOLDER OF AN OHIO PERMIT OR 2,309
CPA CERTIFICATE TO DISCIPLINARY ACTION. 2,310
Sec. 4701.16. (A) After notice and hearing as provided in 2,322
Chapter 119. of the Revised Code, the accountancy board may 2,323
discipline a registrant or certificate holder PERSON HOLDING AN 2,325
OHIO PERMIT, AN OHIO REGISTRATION, A FIRM REGISTRATION, A CPA 2,327
CERTIFICATE, A PA REGISTRATION, OR ANY OTHER PERSON WHOSE 2,329
ACTIVITIES ARE REGULATED BY THE BOARD as specified in division 2,332
(B) of this section for any one or any combination of the 2,333
following causes:
(1) Fraud or deceit in registering as a public accounting 2,335
OBTAINING A firm REGISTRATION, in obtaining a CPA certificate as 2,337
a certified public accountant, or in obtaining a permit to 2,338
practice accounting pursuant to sections 4701.02 to 4701.19 of 2,339
the Revised Code, A PA CERTIFICATE, AN OHIO PERMIT, OR AN OHIO 2,340
REGISTRATION; 2,341
(2) Dishonesty, fraud, or gross negligence in the practice 2,343
of public accounting; 2,344
(3) Violation of any of the provisions of section 4701.14 2,346
of the Revised Code; 2,347
(4) Violation of a rule of professional conduct 2,349
promulgated by the board under the authority granted by sections 2,350
4701.02 to 4701.22 of the Revised Code; 2,351
(5) Conviction of a felony under the laws of any state or 2,353
of the United States; 2,354
(6) Conviction of any crime, an element of which is 2,356
dishonesty or fraud, under the laws of any state or of the United 2,357
States; 2,358
(7) Cancellation, revocation, suspension, or refusal to 2,360
renew authority to practice as a certified public accountant, a 2,361
public accountant, or a public accounting firm by any other 2,362
50
state, for any cause other than failure to pay registration fees 2,363
in such other state; 2,364
(8) Suspension or revocation of the right to practice 2,366
before any state or federal agency; 2,367
(9) Failure of a certified public accountant or public 2,369
accountant HOLDER OF A CPA CERTIFICATE OR PA CERTIFICATE to 2,371
obtain the AN OHIO permit required by section 4701.10 of the 2,373
Revised Code OR AN OHIO REGISTRATION, or THE failure of a public 2,374
accounting firm to register with the board pursuant to section 2,375
4701.04 of the Revised Code OBTAIN A FIRM REGISTRATION; 2,376
(10) Conduct discreditable to the public accounting 2,378
profession OR TO THE HOLDER OF AN OHIO PERMIT, OHIO REGISTRATION, 2,380
FOREIGN PERMIT, OR FOREIGN CERTIFICATION;
(11) FAILURE OF A PUBLIC ACCOUNTING FIRM TO COMPLY WITH 2,382
SECTION 4701.04 OF THE REVISED CODE. 2,383
(B) For any of the reasons specified in division (A) of 2,385
this section, the board may: 2,386
(1) Revoke or, suspend, OR REFUSE TO RENEW any CPA 2,389
certificate issued under section 4701.06 or 4701.061 of the 2,390
Revised Code OR PA CERTIFICATE or any registration granted under 2,392
section 4701.04 or 4701.07 of the Revised Code OHIO PERMIT, OHIO 2,393
REGISTRATION, OR FIRM REGISTRATION;
(2) Revoke, suspend, or refuse to renew any permit issued 2,395
under section 4701.10 of the Revised Code DISQUALIFY A PERSON WHO 2,397
IS NOT A HOLDER OF AN OHIO PERMIT OR A HOLDER OF A FOREIGN PERMIT 2,399
FROM OWNING AN EQUITY INTEREST IN A PUBLIC ACCOUNTING FIRM OR 2,400
QUALIFIED FIRM;
(3) Publicly censure a registrant REGISTERED FIRM or 2,402
holder of a CPA certificate, A PA CERTIFICATE, AN OHIO PERMIT, OR 2,406
AN OHIO REGISTRATION; 2,407
(4) Levy AGAINST A REGISTERED FIRM OR A HOLDER OF A CPA 2,411
CERTIFICATE, A PA CERTIFICATE, AN OHIO PERMIT, OR AN OHIO 2,414
REGISTRATION a penalty OR fine not to exceed one thousand dollars 2,415
for each offense. Any fine shall be reasonable and in relation 2,416
51
to the severity of the offense. 2,417
(5) In the case of violations of division (A)(2) or (4) of 2,419
this section, require completion of remedial continuing education 2,420
programs prescribed by the board in addition to those required by 2,421
section 4701.11 of the Revised Code; 2,422
(6) In the case of violations of division (A)(2) or (4) of 2,424
this section, require the HOLDER OF A CPA certificate holder or 2,426
registrant, PA REGISTRATION, OR FIRM REGISTRATION to submit to a 2,428
quality PEER review by a professional committee designated by the 2,430
board, which committee shall report to the board concerning the 2,431
certificate holder's or registrant's THAT PERSON'S compliance 2,432
with generally accepted accounting principles or, GENERALLY 2,433
ACCEPTED auditing standards, OR OTHER GENERALLY ACCEPTED 2,435
TECHNICAL STANDARDS.
(C) Where the board levies a fine against or suspends the 2,437
certificate of a person or registration of a person or firm for a 2,438
violation of division (A)(2) or (4) of this section, it may waive 2,439
all or any portion of the fine or suspension where the HOLDER OF 2,441
THE CPA certificate holder or registrant, PA REGISTRATION, OR 2,442
FIRM REGISTRATION complies fully with division (B)(5) or (6) of 2,444
this section.
Sec. 4701.29. (A) THE ACCOUNTANCY BOARD MAY INVESTIGATE 2,447
WHETHER A PERSON HAS VIOLATED ANY PROVISION OF THIS CHAPTER OR 2,448
RULE ADOPTED UNDER IT BEFORE COMMENCING A DISCIPLINARY PROCEEDING 2,449
PURSUANT TO SECTION 4701.16 OF THE REVISED CODE OR TAKING LEGAL 2,450
ACTION PURSUANT TO SECTION 4701.18 OF THE REVISED CODE. AN 2,452
INVESTIGATION UNDER THIS SECTION IS NOT SUBJECT TO CHAPTER 119. 2,454
OF THE REVISED CODE. 2,456
THE BOARD MAY APPOINT A COMMITTEE OF BOARD MEMBERS OR STAFF 2,459
EMPLOYED BY THE BOARD TO CONDUCT AN INVESTIGATION.
NOTWITHSTANDING ANY STATUTE OR RULE TO THE CONTRARY, A BOARD 2,460
MEMBER WHO PARTICIPATES IN AN INVESTIGATION MAY PARTICIPATE 2,462
ACTIVELY IN ANY HEARING OR PROCEEDING TO THE SAME EXTENT AS A 2,463
BOARD MEMBER WHO DID NOT PARTICIPATE IN THE INVESTIGATION. 2,464
52
(B) DURING AN INVESTIGATION, THE BOARD MAY ADMINISTER 2,467
OATHS, ORDER THE TAKING OF DEPOSITIONS, ISSUE SUBPOENAS, COMPEL 2,468
THE ATTENDANCE AND TESTIMONY OF A PERSON AT A DEPOSITION, AND 2,469
COMPEL THE PRODUCTION OF ANY FORM OF DOCUMENTARY EVIDENCE OR 2,470
RECORD. SUBPOENAS AND ORDERS TO COMPEL UNDER THIS SECTION MAY BE 2,471
SERVED BY A DESIGNEE OF THE BOARD OR BY CERTIFIED MAIL TO THE 2,472
RESIDENCE OR PLACE OF BUSINESS OF THE PERSON, FIRM, CORPORATION, 2,473
PARTNERSHIP, SOLE PROPRIETORSHIP, LIMITED LIABILITY COMPANY, OR 2,474
OTHER BUSINESS ORGANIZATION NAMED IN THE SUBPOENA OR ORDER. 2,476
(C)(1) ANY WITNESS WHO APPEARS IN RESPONSE TO A SUBPOENA 2,479
OF THE BOARD MAY REQUEST, AND SHALL RECEIVE WITHIN A REASONABLE 2,480
TIME AFTER MAKING THE REQUEST, THE FEES AND MILEAGE PROVIDED FOR 2,481
WITNESSES IN CIVIL CASES IN THE COURTS OF COMMON PLEAS IN THIS 2,482
STATE.
(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOENA OR ORDER 2,484
ISSUED BY THE BOARD UNDER THIS SECTION, THE BOARD MAY PETITION 2,486
THE FRANKLIN COUNTY COURT OF COMMON PLEAS FOR AN ORDER COMPELLING 2,487
COMPLIANCE WITH THE BOARD'S SUBPOENA OR ORDER. UPON APPLICATION 2,488
BY THE BOARD AND UPON EVIDENCE OF THE PERSON'S FAILURE TO COMPLY, 2,489
THE COURT SHALL COMPEL THE APPEARANCE OF THE PERSONS OR THE 2,490
PRODUCTION OF THE DOCUMENTS NAMED IN THE BOARD'S SUBPOENA OR 2,491
ORDER IN ACCORDANCE WITH THE RULES OF CIVIL PROCEDURE. THE COURT 2,494
ALSO MAY ISSUE ANY CONTEMPT CITATION AND SANCTION THE COURT DEEMS 2,495
APPROPRIATE. 2,496
(D) THE INVESTIGATIVE PROCEEDINGS OF THE BOARD UNDER THIS 2,499
SECTION ARE NOT A PUBLIC RECORD, ARE CONFIDENTIAL, AND ARE NOT 2,500
SUBJECT TO DISCOVERY IN ANY CIVIL OR ADMINISTRATIVE ACTION. 2,501
Section 2. That existing sections 1111.01, 2925.01, 2,503
4701.01, 4701.04, 4701.06, 4701.061, 4701.07, 4701.10, 4701.11, 2,504
4701.12, 4701.13, 4701.14, and 4701.16 of the Revised Code are 2,506
hereby repealed.
Section 3. Section 2925.01 of the Revised Code is 2,508
presented in this act as a composite of the section as amended by 2,509
Am. Sub. S.B. 143, Am. Sub. S.B. 269, Sub. S.B. 223, and Sub. 2,510
53
H.B. 125 of the 121st General Assembly, with the new language of 2,511
none of the acts shown in capital letters. Section 4701.16 of
the Revised Code is presented in this act as a composite of the 2,513
section as amended by both Am. Sub. S.B. 165 and Am. S.B. 316 of 2,514
the 119th General Assembly, with the new language of neither of 2,516
the acts shown in capital letters. This is in recognition of the 2,517
principle stated in division (B) of section 1.52 of the Revised 2,518
Code that such amendments are to be harmonized where not 2,519
substantively irreconcilable and constitutes a legislative 2,520
finding that such is the resulting version in effect prior to the 2,521
effective date of this act.