As Reported by House Civil and Commercial Law Committee 1
122nd General Assembly 4
Regular Session Sub. S. B. No. 200 5
1997-1998 6
SENATORS CUPP-WATTS-HERINGTON-HOTTINGER-MUMPER-CARNES- 8
BLESSING-FINAN-SUHADOLNIK-REPRESENTATIVES 9
BUCHY-KASPUTIS-CALLENDER-SALERNO 10
_________________________________________________________________ 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, 4701.16, and
4701.19 and to enact section 4701.29 of the 17
Revised Code to permit certain persons who do not 18
hold a certificate or registration to practice as
a certified public accountant or public 19
accountant to acquire an ownership interest in 20
public accounting firms, to add a statutory 21
definition of the "practice of public accounting"
and modify or add other definitions in the 22
Accountancy Board Law, to expand the discipline 24
that may be imposed for infractions of that law,
and to make other related changes in that law. 25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27
Section 1. That sections 1111.01, 2925.01, 4701.01, 29
4701.04, 4701.06, 4701.061, 4701.07, 4701.10, 4701.11, 4701.12, 31
4701.13, 4701.14, 4701.16, and 4701.19 be amended and section 33
4701.29 of the Revised Code be enacted to read as follows: 35
Sec. 1111.01. As used in this chapter: 44
(A) "Charitable trust" means a charitable remainder 46
annuity trust as defined in section 664(d) of the Internal 47
Revenue Code, a charitable remainder unitrust as defined in 48
section 664(d) of the Internal Revenue Code, a charitable lead or 49
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other split interest trust subject to the governing instrument 50
requirements of section 508(e) of the Internal Revenue Code, a 51
pooled income fund as defined in section 642(c) of the Internal
Revenue Code, a trust that is a private foundation as defined in 52
section 509 of the Internal Revenue Code, or a trust of which 53
each beneficiary is a charity. 54
For purposes of this division and division (B) of this 56
section, "Internal Revenue Code" means the "Internal Revenue Code 57
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 58
(B) "Charity" means a state university as defined in 60
section 3345.011 of the Revised Code, a community college as 62
defined in section 3354.01 of the Revised Code, a technical
college as defined in section 3357.01 of the Revised Code, a 63
state community college as defined in section 3358.01 of the 64
Revised Code, a private college or university that possesses a 65
certificate of authorization issued by the Ohio board of regents 66
pursuant to Chapter 1713. of the Revised Code, a trust or 67
organization exempt from taxation under section 501(c)(3) or 68
section 501(c)(13) of the Internal Revenue Code, or a 70
corporation, trust, or organization described in section 71
170(c)(2) of the Internal Revenue Code. The term "charities" 72
means more than one trust or organization that is a charity.
(C) "Collective investment fund" means a fund established 74
by a trust company or an affiliate of a trust company for the 75
collective investment of assets held in a fiduciary capacity, 76
either alone or with one or more cofiduciaries, by the 77
establishing trust company and its affiliates.
(D) "Fiduciary investment company" means a corporation 79
that is both of the following: 80
(1) An investment company; 82
(2) Incorporated, owned, and operated in accordance with 84
rules adopted by the superintendent of financial institutions for 85
the investment of funds held by trust companies in a fiduciary 86
capacity and for true fiduciary purposes, either alone or with 87
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one or more cofiduciaries.
(E) "Instrument" includes any will, declaration of trust, 89
agreement of trust, agency, or custodianship, or court order 90
creating a fiduciary relationship. 91
(F) "Investment company" means any investment company as 93
defined in section 3 and registered under section 8 of the 94
"Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-3 96
and 80a-8.
(G) "Trust business" means accepting and executing trusts 98
of property, serving as a trustee, executor, administrator, 99
guardian, receiver, or conservator, and providing fiduciary 100
services as a business. "Trust business" does not include any of 101
the following:
(1) Any natural person acting as a trustee, executor, 103
administrator, guardian, receiver, or conservator, pursuant to 105
appointment by a court of competent jurisdiction;
(2) Any natural person serving as a trustee who does not 108
hold self out to the public as willing to act as a trustee for
hire. For purposes of division (G) of this section, the 110
solicitation or advertisement of legal or accounting services by 111
a person licensed in this state as an attorney or a person 112
holding a live AN OHIO permit to practice public accounting 113
issued under division (A) of section 4701.10 of the Revised Code 114
shall not be considered to be the act of holding self out to the 115
public as willing to act as a trustee for hire. 116
(3) A charity, an officer or employee of a charity, or a 119
person affiliated with a charity, serving as trustee of a 120
charitable trust of which the charity, or another charity with a
similar purpose, is a beneficiary; 121
(4) Other fiduciary activities the superintendent 123
determines are not undertaken as a business. 124
Sec. 2925.01. As used in this chapter: 133
(A) "Administer," "controlled substance," "dispense," 135
"distribute," "hypodermic," "manufacturer," "official written 137
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order," "person," "pharmacist," "pharmacy," "sale," "schedule I," 139
"schedule II," "schedule III," "schedule IV," "schedule V," and 140
"wholesaler" have the same meanings as in section 3719.01 of the 141
Revised Code.
(B) "Drug dependent person" and "drug of abuse" have the 143
same meanings as in section 3719.011 of the Revised Code. 144
(C) "Drug," "dangerous drug," "licensed health 146
professional authorized to prescribe drugs," and "prescription" 148
have the same meanings as in section 4729.01 of the Revised Code. 149
(D) "Bulk amount" of a controlled substance means any of 151
the following: 152
(1) For any compound, mixture, preparation, or substance 154
included in schedule I, schedule II, or schedule III, with the 156
exception of marihuana, cocaine, L.S.D., heroin, and hashish and
except as provided in division (D)(2) or (5) of this section, 158
whichever of the following is applicable:
(a) An amount equal to or exceeding ten grams or 160
twenty-five unit doses of a compound, mixture, preparation, or 161
substance that is or contains any amount of a schedule I opiate 162
or opium derivative; 163
(b) An amount equal to or exceeding ten grams of a 166
compound, mixture, preparation, or substance that is or contains 167
any amount of raw or gum opium; 168
(c) An amount equal to or exceeding thirty grams or ten 171
unit doses of a compound, mixture, preparation, or substance that 172
is or contains any amount of a schedule I hallucinogen other than 173
tetrahydrocannabinol or lysergic acid amide, or a schedule I 176
stimulant or depressant; 177
(d) An amount equal to or exceeding twenty grams or five 180
times the maximum daily dose in the usual dose range specified in 181
a standard pharmaceutical reference manual of a compound, 182
mixture, preparation, or substance that is or contains any amount 183
of a schedule II opiate or opium derivative; 184
(e) An amount equal to or exceeding five grams or ten unit 186
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doses of a compound, mixture, preparation, or substance that is 187
or contains any amount of phencyclidine; 188
(f) An amount equal to or exceeding one hundred twenty 190
grams or thirty times the maximum daily dose in the usual dose 191
range specified in a standard pharmaceutical reference manual of 192
a compound, mixture, preparation, or substance that is or 193
contains any amount of a schedule II stimulant that is in a final 194
dosage form manufactured by a person authorized by the "Federal 195
Food, Drug, and Cosmetic Act," 52 Stat. 1040 (1938), 21 U.S.C.A. 197
301, as amended, and the federal drug abuse control laws, as 198
defined in section 3719.01 of the Revised Code, that is or
contains any amount of a schedule II depressant substance or a 200
schedule II hallucinogenic substance;
(g) An amount equal to or exceeding three grams of a 203
compound, mixture, preparation, or substance that is or contains 204
any amount of a schedule II stimulant, or any of its salts or 205
isomers, that is not in a final dosage form manufactured by a 206
person authorized by the Federal Food, Drug, and Cosmetic Act and 207
the federal drug abuse control laws. 208
(2) An amount equal to or exceeding one hundred twenty 211
grams or thirty times the maximum daily dose in the usual dose 212
range specified in a standard pharmaceutical reference manual of 214
a compound, mixture, preparation, or substance that is or 216
contains any amount of a schedule III or IV substance other than 218
an anabolic steroid or a schedule III opiate or opium derivative; 219
(3) An amount equal to or exceeding twenty grams or five 221
times the maximum daily dose in the usual dose range specified in 222
a standard pharmaceutical reference manual of a compound, 223
mixture, preparation, or substance that is or contains any amount 225
of a schedule III opiate or opium derivative;
(4) An amount equal to or exceeding two hundred fifty 227
milliliters or two hundred fifty grams of a compound, mixture, 228
preparation, or substance that is or contains any amount of a 229
schedule V substance; 230
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(5) An amount equal to or exceeding two hundred solid 233
dosage units, sixteen grams, or sixteen milliliters of a 234
compound, mixture, preparation, or substance that is or contains 235
any amount of a schedule III anabolic steroid. 236
(E) "Unit dose" means an amount or unit of a compound, 238
mixture, or preparation containing a controlled substance that is 239
separately identifiable and in a form that indicates that it is 241
the amount or unit by which the controlled substance is 242
separately administered to or taken by an individual. 243
(F) "Cultivate" includes planting, watering, fertilizing, 245
or tilling. 246
(G) "Drug abuse offense" means any of the following: 248
(1) A violation of division (A) of section 2913.02 that 250
constitutes theft of drugs, or a violation of section 2925.02, 251
2925.03, 2925.04, 2925.05, 2925.06, 2925.11, 2925.12, 2925.13, 252
2925.22, 2925.23, 2925.31, 2925.32, 2925.36, or 2925.37 of the 254
Revised Code;
(2) A violation of an existing or former law of this or 256
any other state or of the United States that is substantially 257
equivalent to any section listed in division (G)(1) of this 258
section; 259
(3) An offense under an existing or former law of this or 261
any other state, or of the United States, of which planting, 262
cultivating, harvesting, processing, making, manufacturing, 263
producing, shipping, transporting, delivering, acquiring, 264
possessing, storing, distributing, dispensing, selling, inducing 265
another to use, administering to another, using, or otherwise 266
dealing with a controlled substance is an element; 267
(4) A conspiracy to commit, attempt to commit, or 269
complicity in committing or attempting to commit any offense 270
under division (G)(1), (2), or (3) of this section. 271
(H) "Felony drug abuse offense" means any drug abuse 273
offense that would constitute a felony under the laws of this 274
state, any other state, or the United States. 275
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(I) "Harmful intoxicant" does not include beer or 277
intoxicating liquor but means any compound, mixture, preparation, 279
or substance the gas, fumes, or vapor of which when inhaled can 280
induce intoxication, excitement, giddiness, irrational behavior, 281
depression, stupefaction, paralysis, unconsciousness, 282
asphyxiation, or other harmful physiological effects, and 283
includes, but is not limited to, any of the following: 284
(1) Any volatile organic solvent, plastic cement, model 286
cement, fingernail polish remover, lacquer thinner, cleaning 287
fluid, gasoline, or other preparation containing a volatile 288
organic solvent; 289
(2) Any aerosol propellant; 291
(3) Any fluorocarbon refrigerant; 293
(4) Any anesthetic gas. 295
(J) "Manufacture" means to plant, cultivate, harvest, 297
process, make, prepare, or otherwise engage in any part of the 298
production of a drug, by propagation, extraction, chemical 299
synthesis, or compounding, or any combination of the same, and 300
includes packaging, repackaging, labeling, and other activities 301
incident to production. 302
(K) "Possess" or "possession" means having control over a 304
thing or substance, but may not be inferred solely from mere 305
access to the thing or substance through ownership or occupation 306
of the premises upon which the thing or substance is found. 307
(L) "Sample drug" means a drug or pharmaceutical 309
preparation that would be hazardous to health or safety if used 310
without the supervision of a licensed health professional 312
authorized to prescribe drugs, or a drug of abuse, and that, at 313
one time, had been placed in a container plainly marked as a 314
sample by a manufacturer.
(M) "Standard pharmaceutical reference manual" means the 316
current edition, with cumulative changes if any, of any of the 317
following reference works: 318
(1) "The National Formulary"; 320
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(2) "The United States Pharmacopeia," prepared by 322
authority of the United States Pharmacopeial Convention, Inc.; 323
(3) Other standard references that are approved by the 325
state board of pharmacy. 326
(N) "Juvenile" means a person under eighteen years of age. 328
(O) "Counterfeit controlled substance" means any of the 330
following: 331
(1) Any drug that bears, or whose container or label 333
bears, a trademark, trade name, or other identifying mark used 334
without authorization of the owner of rights to that trademark, 335
trade name, or identifying mark; 336
(2) Any unmarked or unlabeled substance that is 338
represented to be a controlled substance manufactured, processed, 339
packed, or distributed by a person other than the person that 340
manufactured, processed, packed, or distributed it; 341
(3) Any substance that is represented to be a controlled 343
substance but is not a controlled substance or is a different 344
controlled substance; 345
(4) Any substance other than a controlled substance that a 347
reasonable person would believe to be a controlled substance 348
because of its similarity in shape, size, and color, or its 349
markings, labeling, packaging, distribution, or the price for 350
which it is sold or offered for sale. 351
(P) An offense is "committed in the vicinity of a school" 353
if the offender commits the offense on school premises, in a 354
school building, or within one thousand feet of the boundaries of 355
any school premises.
(Q) "School" means any school operated by a board of 357
education or any school for which the state board of education 358
prescribes minimum standards under section 3301.07 of the Revised 359
Code, whether or not any instruction, extracurricular activities, 360
or training provided by the school is being conducted at the time 361
a criminal offense is committed. 362
(R) "School premises" means either of the following: 364
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(1) The parcel of real property on which any school is 366
situated, whether or not any instruction, extracurricular 367
activities, or training provided by the school is being conducted 368
on the premises at the time a criminal offense is committed; 369
(2) Any other parcel of real property that is owned or 371
leased by a board of education of a school or the governing body 372
of a school for which the state board of education prescribes 373
minimum standards under section 3301.07 of the Revised Code and 374
on which some of the instruction, extracurricular activities, or 375
training of the school is conducted, whether or not any 376
instruction, extracurricular activities, or training provided by 377
the school is being conducted on the parcel of real property at 378
the time a criminal offense is committed. 379
(S) "School building" means any building in which any of 381
the instruction, extracurricular activities, or training provided 382
by a school is conducted, whether or not any instruction, 383
extracurricular activities, or training provided by the school is 384
being conducted in the school building at the time a criminal 385
offense is committed. 386
(T) "Disciplinary counsel" means the disciplinary counsel 388
appointed by the board of commissioners on grievances and 389
discipline of the supreme court under the Rules for the 390
Government of the Bar of Ohio. 391
(U) "Certified grievance committee" means a duly 393
constituted and organized committee of the Ohio state bar 394
association or of one or more local bar associations of the state 395
of Ohio that complies with the criteria set forth in Rule V, 396
section 6 of the Rules for the Government of the Bar of Ohio. 397
(V) "Professional license" means any license, permit, 399
certificate, registration, qualification, admission, temporary 400
license, temporary permit, temporary certificate, or temporary 401
registration that is described in divisions (W)(1) to (35) of 402
this section and that qualifies a person as a professionally 403
licensed person. 404
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(W) "Professionally licensed person" means any of the 406
following: 407
(1) A person who has obtained a license as a manufacturer 409
of controlled substances or a wholesaler of controlled substances 410
under Chapter 3719. of the Revised Code; 411
(2) A person who has received a certificate or temporary 413
certificate as a certified public accountant or who has 414
registered as a public accountant under Chapter 4701. of the 415
Revised Code and who holds a live AN OHIO permit issued under 417
that chapter; 418
(3) A person who holds a certificate of qualification to 420
practice architecture issued or renewed and registered under 421
Chapter 4703. of the Revised Code; 422
(4) A person who is registered as a landscape architect 424
under Chapter 4703. of the Revised Code or who holds a permit as 425
a landscape architect issued under that chapter; 426
(5) A person licensed as an auctioneer or apprentice 428
auctioneer or licensed to operate an auction company under 429
Chapter 4707. of the Revised Code; 430
(6) A person who has been issued a certificate of 432
registration as a registered barber under Chapter 4709. of the 433
Revised Code; 434
(7) A person licensed and regulated to engage in the 436
business of a debt pooling company by a legislative authority, 437
under authority of Chapter 4710. of the Revised Code; 438
(8) A person who has been issued a cosmetologist's 440
license, manicurist's license, esthetician's license, managing 441
cosmetologist's license, managing manicurist's license, managing 442
esthetician's license, cosmetology instructor's license, 443
manicurist instructor's license, esthetician instructor's 444
license, or tanning facility permit under Chapter 4713. of the 445
Revised Code; 446
(9) A person who has been issued a license to practice 448
dentistry, a general anesthesia permit, a conscious intravenous 449
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sedation permit, a limited resident's license, a limited teaching 450
license, a dental hygienist's license, or a dental hygienist's 451
teacher's certificate under Chapter 4715. of the Revised Code; 452
(10) A person who has been issued an embalmer's license, a 454
funeral director's license, a funeral home license, or a 455
crematory license, or who has been registered for an embalmer's 456
or funeral director's apprenticeship under Chapter 4717. of the 457
Revised Code;
(11) A person who has been licensed as a registered nurse 459
or practical nurse, or who has been issued a certificate for the 460
practice of nurse-midwifery under Chapter 4723. of the Revised 461
Code; 462
(12) A person who has been licensed to practice optometry 464
or to engage in optical dispensing under Chapter 4725. of the 465
Revised Code; 466
(13) A person licensed to act as a pawnbroker under 468
Chapter 4727. of the Revised Code; 469
(14) A person licensed to act as a precious metals dealer 471
under Chapter 4728. of the Revised Code; 472
(15) A person licensed as a pharmacist, a pharmacy intern, 475
a wholesale distributor of dangerous drugs, or a terminal
distributor of dangerous drugs under Chapter 4729. of the Revised 476
Code; 477
(16) A person who is authorized to practice as a physician 479
assistant under Chapter 4730. of the Revised Code; 480
(17) A person who has been issued a certificate to 482
practice medicine and surgery, osteopathic medicine and surgery, 483
a limited branch of medicine or surgery, or podiatry under 484
Chapter 4731. of the Revised Code; 485
(18) A person licensed as a psychologist or school 487
psychologist under Chapter 4732. of the Revised Code; 488
(19) A person registered to practice the profession of 490
engineering or surveying under Chapter 4733. of the Revised Code; 491
(20) A person who has been issued a license to practice 494
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chiropractic under Chapter 4734. of the Revised Code;
(21) A person licensed to act as a real estate broker, 496
real estate salesperson, limited real estate broker, or limited 497
real estate salesperson under Chapter 4735. of the Revised Code; 498
(22) A person registered as a registered sanitarian under 500
Chapter 4736. of the Revised Code; 501
(23) A person licensed to operate or maintain a junkyard 503
under Chapter 4737. of the Revised Code; 504
(24) A person who has been issued a motor vehicle salvage 506
dealer's license under Chapter 4738. of the Revised Code; 507
(25) A person who has been licensed to act as a steam 509
engineer under Chapter 4739. of the Revised Code; 510
(26) A person who has been issued a license or temporary 512
permit to practice veterinary medicine or any of its branches, or 513
who is registered as a graduate animal technician under Chapter 514
4741. of the Revised Code; 515
(27) A person who has been issued a hearing aid dealer's 517
or fitter's license or trainee permit under Chapter 4747. of the 518
Revised Code; 519
(28) A person who has been issued a class A, class B, or 521
class C license or who has been registered as an investigator or 522
security guard employee under Chapter 4749. of the Revised Code; 523
(29) A person licensed and registered to practice as a 525
nursing home administrator under Chapter 4751. of the Revised 526
Code; 527
(30) A person licensed to practice as a speech-language 529
pathologist or audiologist under Chapter 4753. of the Revised 531
Code;
(31) A person issued a license as an occupational 533
therapist or physical therapist under Chapter 4755. of the 534
Revised Code; 535
(32) A person who is licensed as a professional clinical 537
counselor or professional counselor, licensed as a social worker 538
or independent social worker, or registered as a social work 539
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assistant under Chapter 4757. of the Revised Code; 540
(33) A person issued a license to practice dietetics under 542
Chapter 4759. of the Revised Code; 543
(34) A person who has been issued a license or limited 546
permit to practice respiratory therapy under Chapter 4761. of the 547
Revised Code; 548
(35) A person who has been issued a real estate appraiser 550
certificate under Chapter 4763. of the Revised Code. 551
(X) "Cocaine" means any of the following: 553
(1) A cocaine salt, isomer, or derivative, a salt of a 555
cocaine isomer or derivative, or the base form of cocaine; 556
(2) Coca leaves or a salt, compound, derivative, or 558
preparation of coca leaves, including ecgonine, a salt, isomer, 559
or derivative of ecgonine, or a salt of an isomer or derivative 560
of ecgonine; 561
(3) A salt, compound, derivative, or preparation of a 563
substance identified in division (X)(1) or (2) of this section 565
that is chemically equivalent to or identical with any of those 566
substances, except that the substances shall not include 567
decocainized coca leaves or extraction of coca leaves if the 568
extractions do not contain cocaine or ecgonine. 569
(Y) "L.S.D." means lysergic acid diethylamide. 572
(Z) "Hashish" means the resin or a preparation of the 574
resin contained in marihuana, whether in solid form or in a 575
liquid concentrate, liquid extract, or liquid distillate form. 576
(AA) "Marihuana" has the same meaning as in section 578
3719.01 of the Revised Code, except that it does not include 580
hashish.
(BB) An offense is "committed in the vicinity of a 582
juvenile" if the offender commits the offense within one hundred 584
feet of a juvenile or within the view of a juvenile, regardless 585
of whether the offender knows the age of the juvenile, whether 586
the offender knows the offense is being committed within one 587
hundred feet of or within view of the juvenile, or whether the 588
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juvenile actually views the commission of the offense.
(CC) "Presumption for a prison term" or "presumption that 590
a prison term shall be imposed" means a presumption, as described 591
in division (D) of section 2929.13 of the Revised Code, that a 592
prison term is a necessary sanction for a felony in order to 593
comply with the purposes and principles of sentencing under 594
section 2929.11 of the Revised Code.
(DD) "Major drug offender" has the same meaning as in 596
section 2929.01 of the Revised Code. 597
(EE) "Minor drug possession offense" means either of the 599
following: 600
(1) A violation of section 2925.11 of the Revised Code as 602
it existed prior to July 1, 1996; 603
(2) A violation of section 2925.11 of the Revised Code as 605
it exists on and after July 1, 1996, that is a misdemeanor or a 606
felony of the fifth degree. 607
(FF) "Mandatory prison term" has the same meaning as in 610
section 2929.01 of the Revised Code.
(GG) "Crack cocaine" means a compound, mixture, 612
preparation, or substance that is or contains any amount of 613
cocaine that is analytically identified as the base form of 614
cocaine or that is in a form that resembles rocks or pebbles 615
generally intended for individual use.
Sec. 4701.01. As used in this chapter: 624
(A) "Live permit" means a permit issued under section 626
4701.10 of the Revised Code that is not suspended or revoked 627
PRACTICE OF PUBLIC ACCOUNTING" MEANS PERFORMING OR OFFERING TO 629
PERFORM ANY ENGAGEMENT THAT WILL RESULT IN THE ISSUANCE OF AN 630
ATTEST REPORT AND, WITH RESPECT TO A PERSON WHO HOLDS A CPA 631
CERTIFICATE, PA REGISTRATION, FOREIGN CERTIFICATE, OR FIRM 633
REGISTRATION, ANY OTHER SERVICES INVOLVING THE USE OF ACCOUNTING 634
OR AUDITING SKILLS AS ESTABLISHED BY RULES ADOPTED BY THE 635
ACCOUNTANCY BOARD.
(B) "Public accounting firm" means a sole proprietorship, 637
15
a partnership, a limited liability company, a professional 638
association, a corporation-for-profit, or any other legal entity 639
BUSINESS ORGANIZATION that is permitted by the accountancy board 641
to engage ENGAGED in the practice of public accounting in this 642
state. 643
(C) "Opinion on a financial statement REPORT" means any 645
opinion ON A FINANCIAL STATEMENT THAT IS expressed in accordance 646
with generally accepted auditing standards as to the fairness of 648
presentation of information AND THAT IS used for guidance in 650
financial transactions or, for accounting, or for assessing the 652
status or performance of commercial and noncommercial 653
enterprises, whether public, private, or governmental. 654
(D) "Quality PEER review" means a study, appraisal, or 656
review of one or more aspects of the professional work of a 657
public accounting firm that meets the standards and requirements 658
set forth by the accountancy board. 659
(E) "Review report on a financial statement" means either 661
of the following: 662
(1) Any review report ON A FINANCIAL STATEMENT THAT IS 664
issued with respect to any of the following: 666
(a) Interim financial information in accordance with 668
generally accepted auditing standards; 669
(b) The financial information of a nonpublic entity in 671
accordance with statements on standards for accounting and review 672
services; 673
(c) The reliability of another party's written assertion 675
in accordance with statements on standards for attestation 676
engagements. 677
(2) Any other review report ON A FINANCIAL STATEMENT THAT 679
IS NOT DESCRIBED IN DIVISION (E)(1) OF THIS SECTION AND THAT IS 680
issued in accordance with standards promulgated by the American 682
institute of certified public accountants. 683
(F) "Compilation report on a financial statement" means 685
any compilation report ON A FINANCIAL STATEMENT THAT IS issued 686
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with respect to financial information of a nonpublic entity in 688
accordance with statements on standards for accounting and review 689
services as promulgated by the American institute of certified 690
public accountants.
(G) "Examination report on a financial statement" means 692
any examination report ON A FINANCIAL STATEMENT THAT IS issued 693
with respect to another party's written assertion in accordance 695
with statements on standards for attestation engagements as 696
promulgated by the American institute of certified public 697
accountants.
(H) "Agreed-upon procedures report on a financial 699
statement" means any report THAT IS ON A FINANCIAL STATEMENT AND 700
THAT IS based on agreed-upon procedures issued with respect to 702
another party's written assertion in accordance with statements 703
on standards for attestation engagements as promulgated by the 704
American institute of certified public accountants. 705
(I) "QUALIFIED FIRM" MEANS A SOLE PROPRIETORSHIP, 708
PARTNERSHIP, PROFESSIONAL ASSOCIATION, CORPORATION-FOR-PROFIT, 709
LIMITED LIABILITY COMPANY, OR OTHER BUSINESS ORGANIZATION IN 710
WHICH THE INDIVIDUALS WHO OWN A MAJORITY OF THE BUSINESS 711
ORGANIZATION INTERESTS IN THE BUSINESS ORGANIZATION AND CONTROL 713
THE BUSINESS ORGANIZATION HOLD AN OHIO PERMIT OR A FOREIGN 714
CERTIFICATE. 715
(J) "OWN" MEANS ANY DIRECT OR INDIRECT OWNERSHIP OF AN 718
EQUITY INTEREST IN A PUBLIC ACCOUNTING FIRM OR QUALIFIED FIRM. 719
(K) "CONTROL" OR "CONTROLLED" MEANS THE RIGHT TO EXERCISE 722
THE MAJORITY OF THE VOTING EQUITY INTERESTS IN A PUBLIC 723
ACCOUNTING FIRM OR QUALIFIED FIRM WITH RESPECT TO ANY MATTER. 725
(L) "EQUITY INTEREST" MEANS ANY CAPITAL INTEREST OR PROFIT 728
INTEREST IN A SOLE PROPRIETORSHIP, PARTNERSHIP, PROFESSIONAL 730
ASSOCIATION, CORPORATION-FOR-PROFIT, LIMITED LIABILITY COMPANY, 731
OR OTHER BUSINESS ORGANIZATION.
(M) "OHIO PERMIT" MEANS A PERMIT TO PRACTICE PUBLIC 734
ACCOUNTING ISSUED UNDER DIVISION (A) OF SECTION 4701.10 OF THE 736
17
REVISED CODE THAT IS NOT REVOKED OR SUSPENDED. 737
(N) "OHIO REGISTRATION" MEANS THE REGISTRATION UNDER 740
DIVISION (B) OF SECTION 4701.10 OF THE REVISED CODE OF A HOLDER 741
OF A CPA CERTIFICATE OR PA REGISTRATION WHO IS NOT IN THE 744
PRACTICE OF PUBLIC ACCOUNTING IN THIS STATE.
(O) "FIRM REGISTRATION" OR "REGISTERED FIRM" MEANS 747
REGISTRATION AS A PUBLIC ACCOUNTING FIRM UNDER SECTION 4701.04 OF 748
THE REVISED CODE.
(P) "PA REGISTRATION" MEANS REGISTRATION AS A PUBLIC 751
ACCOUNTANT UNDER SECTION 4701.07 OF THE REVISED CODE THAT IS NOT 752
REVOKED OR SUSPENDED. 753
(Q) "CPA CERTIFICATE" MEANS A CERTIFICATE ISSUED UNDER 756
SECTION 4701.06 OR 4701.061 OF THE REVISED CODE THAT IS NOT 757
REVOKED OR SUSPENDED. 758
(R) "FOREIGN CERTIFICATE" MEANS A CERTIFICATE OF A 761
CERTIFIED PUBLIC ACCOUNTANT ISSUED UNDER THE LAWS OF ANOTHER 762
STATE.
(S) "ATTEST REPORT" MEANS AN OPINION REPORT, REVIEW 765
REPORT, COMPILATION REPORT, EXAMINATION REPORT, AGREED-UPON 766
PROCEDURES REPORT, OR ANY SIMILAR REPORT PREPARED IN ACCORDANCE 767
WITH STANDARDS ESTABLISHED BY THE AMERICAN INSTITUTE OF CERTIFIED 768
PUBLIC ACCOUNTANTS WITH RESPECT TO A FINANCIAL STATEMENT OR OTHER 769
FINANCIAL INFORMATION. 770
(T) "PERSON" MEANS ANY INDIVIDUAL, CORPORATION-FOR-PROFIT, 773
BUSINESS TRUST, ESTATE, PARTNERSHIP, LIMITED LIABILITY COMPANY, 774
PROFESSIONAL ASSOCIATION, OR OTHER BUSINESS ORGANIZATION. 775
(U) Technical terms that define specific public accounting 777
engagements have the same meanings as in the professional 778
standards promulgated by the American institute of certified 779
public accountants. 780
(V)(1) "GOOD MORAL CHARACTER" MEANS THE COMBINATION OF 782
PERSONAL TRAITS OF HONESTY, INTEGRITY, ATTENTION TO DUTY, 783
FORTHRIGHTNESS, AND SELF-RESTRAINT THAT ENABLES A PERSON TO 784
DISCHARGE THE DUTIES OF THE ACCOUNTING PROFESSION FULLY AND 785
18
FAITHFULLY. 786
(2) A HISTORY OF DISHONEST ACTS OR FELONIOUS ACTS OR 788
CONVICTIONS IS SUFFICIENT TO PROVE LACK OF GOOD MORAL CHARACTER 789
IF THAT HISTORY DEMONSTRATES BY A PREPONDERANCE OF THE EVIDENCE 790
THAT THE PERSON LACKS ONE OR MORE OF THE PERSONAL TRAITS REFERRED 791
TO IN DIVISION (V)(1) OF THIS SECTION. A PERSON WHO HAS A FELONY 793
CONVICTION RELATED TO ONE OR MORE OF THOSE PERSONAL TRAITS BEARS 794
THE BURDEN OF ESTABLISHING THE PERSON'S PRESENT GOOD MORAL
CHARACTER, INCLUDING THE PERSON'S FULL AND COMPLETE 795
REHABILITATION SUBSEQUENT TO THE CONVICTION. IF LESS THAN ONE 796
YEAR HAS PASSED SINCE THE COMPLETION OF THE PERSON'S SENTENCE ON 798
A FELONY CONVICTION, INCLUDING ANY PERIOD UNDER A COMMUNITY 799
CONTROL SANCTION OR POST-RELEASE CONTROL, THE BOARD MAY DELAY ANY 800
DETERMINATION OF THE PERSON'S GOOD MORAL CHARACTER UNTIL ONE YEAR 801
HAS PASSED FROM THE TIME OF THE COMPLETION OF THAT SENTENCE. 802
(3) IN DETERMINING WHETHER A PERSON WHO HAS A FELONY 804
CONVICTION HAS MET THE PERSON'S BURDEN OF PROOF DESCRIBED IN 806
DIVISION (V)(2) OF THIS SECTION, THE ACCOUNTANCY BOARD MAY 808
CONSIDER THE FOLLOWING FACTORS:
(a) THE PERSON'S PATH TOWARD PROFESSIONAL LICENSING 810
FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 811
(b) THE NATURE AND DEGREE OF THE PERSON'S ACADEMIC 813
ACHIEVEMENTS; 814
(c) THE NATURE AND DEGREE OF THE PERSON'S EMPLOYMENT 816
FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 817
(d) THE PERSON'S DEGREE OF SELF-SUFFICIENCY FOLLOWING 819
COMPLETION OF THE PERSON'S SENTENCE; 820
(e) THE NATURE AND DEGREE OF THE PERSON'S OTHER 822
RESPONSIBILITIES FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 823
(f) THE PERSON'S CONVICTION FOR ANY OTHER CRIMINAL OFFENSE 826
SINCE COMPLETION OF THE PERSON'S SENTENCE FOR THE PERSON'S FIRST 827
FELONY CONVICTION;
(g) WHETHER THE PERSON'S APPLICATION OR PRESENTATION 829
CONTAINS ANY INCONSISTENCIES OR MISLEADING EXPLANATIONS THAT 830
19
CONVINCE THE BOARD THAT EITHER THE PERSON OR THE PERSON'S 831
ATTORNEY IS TRYING TO KEEP THE BOARD FROM ACQUIRING A TRUE, 832
THOUGH DAMAGING, REPRESENTATION OF THE PERSON'S CHARACTER; 833
(h) THE NATURE AND CIRCUMSTANCES OF THE DISHONEST ACTS OR 835
FELONIOUS ACTS OR CONVICTIONS OF THE PERSON; 836
(i) ANY OTHER SPECIFICALLY IDENTIFIABLE INFORMATION THAT 838
THE BOARD DETERMINES TO BE RELEVANT TO THE PERSON'S ABILITY TO 839
DISCHARGE THE DUTIES OF THE ACCOUNTING PROFESSION FULLY AND 840
FAITHFULLY. 841
Sec. 4701.04. (A) No public accounting firm shall ENGAGE 851
IN THE practice under the firm's name OF PUBLIC ACCOUNTING in 852
this state unless it registers with the accountancy board and 853
pays a registration fee set by the board. 854
(B) New public PUBLIC accounting firms shall apply for 856
initial registration within ninety days of AFTER formation OR 857
WITHIN NINETY DAYS AFTER THE COMMENCEMENT OF PRACTICING PUBLIC 858
ACCOUNTING IN THIS STATE. All public accounting firms shall 860
renew their registration triennially. All public accounting 861
firms shall submit with their initial and renewal registration 862
applications a ALL OF THE FOLLOWING:
(1) A list of the names, addresses, and certificate OR 865
REGISTRATION numbers of all license holders INDIVIDUALS WHO HOLD 866
AN OHIO PERMIT AND WHO OWN AN EQUITY INTEREST IN THE PUBLIC 867
ACCOUNTING FIRM OR ARE employed by them THE PUBLIC ACCOUNTING 869
FIRM;
(2) A LIST OF THE NAMES AND ADDRESSES OF EACH PERSON WHO 871
DOES NOT HOLD AN OHIO PERMIT OR A FOREIGN CERTIFICATE AND WHO 872
OWNS AN EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM IF THE 875
PERSON'S PRINCIPAL PLACE OF BUSINESS IS LOCATED IN THIS STATE; 877
(3) A STATEMENT THAT THE PUBLIC ACCOUNTING FIRM AND EACH 879
PERSON WHO OWNS AN EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM 880
OR IS EMPLOYED BY THE PUBLIC ACCOUNTING FIRM AND WHO DOES NOT 881
HOLD AN OHIO PERMIT OR A FOREIGN CERTIFICATE IS IN COMPLIANCE 883
WITH DIVISIONS (C) AND (D) OF THIS SECTION. 885
20
(C) A PUBLIC ACCOUNTING FIRM SHALL SATISFY ALL OF THE 888
FOLLOWING REQUIREMENTS IN ORDER TO REGISTER: 889
(1) EXCEPT AS PROVIDED IN DIVISION (C)(5) OF THIS SECTION, 892
EACH PARTNER, SHAREHOLDER, MEMBER, OR OTHER PERSON WHO OWNS AN 893
EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM SHALL HOLD AN OHIO 895
PERMIT OR A FOREIGN CERTIFICATE.
(2) THE CHIEF EXECUTIVE OF ANY OFFICE OF A PUBLIC 897
ACCOUNTING FIRM LOCATED IN OR DOING BUSINESS IN THIS STATE SHALL 898
HOLD AN OHIO PERMIT OR A FOREIGN CERTIFICATE. 899
(3) EACH INDIVIDUAL IN A PUBLIC ACCOUNTING FIRM WHO SIGNS 902
ANY ATTEST REPORT ISSUED FROM AN OFFICE OF THE PUBLIC ACCOUNTING
FIRM LOCATED IN THIS STATE SHALL HOLD AN OHIO PERMIT. 905
(4) AN INDIVIDUAL WHO OWNS AN EQUITY INTEREST IN THE 907
PUBLIC ACCOUNTING FIRM OR IS EMPLOYED BY THE PUBLIC ACCOUNTING 908
FIRM AND WHO HOLDS AN OHIO PERMIT OR A FOREIGN CERTIFICATE, OR A 910
QUALIFIED FIRM THAT OWNS AN EQUITY INTEREST IN THE PUBLIC
ACCOUNTING FIRM, SHALL ASSUME ULTIMATE RESPONSIBILITY FOR ANY 912
ATTEST REPORT ISSUED FROM AN OFFICE OF THE PUBLIC ACCOUNTING FIRM 914
LOCATED IN THIS STATE.
(5) ANY PERSON WHO DOES NOT HOLD AN OHIO PERMIT OR A 917
FOREIGN CERTIFICATE AND WHO HOLDS AN EQUITY INTEREST IN THE 920
PUBLIC ACCOUNTING FIRM SHALL SATISFY THE CONDITIONS SET FORTH IN
DIVISION (D) OF THIS SECTION. 921
(6) THE PUBLIC ACCOUNTING FIRM SHALL PROVIDE FOR THE 923
TRANSFER OF THE EQUITY INTEREST OWNED BY PERSONS WHO DO NOT HOLD 924
AN OHIO PERMIT OR A FOREIGN CERTIFICATE TO EITHER THE PUBLIC 925
ACCOUNTING FIRM OR TO ANOTHER PERSON WHO OWNS AN EQUITY INTEREST 928
IN THE FIRM IF A PERSON WHO DOES NOT HOLD AN OHIO PERMIT OR A 930
FOREIGN CERTIFICATE WITHDRAWS FROM OR CEASES TO BE EMPLOYED BY 931
THE PUBLIC ACCOUNTING FIRM. THE PUBLIC ACCOUNTING FIRM MAY MAKE 933
PAYMENTS IN CONNECTION WITH THE PERSON'S WITHDRAWAL FROM THE FIRM 934
TO THAT PERSON OR, IF THAT PERSON IS DECEASED OR DISSOLVED, TO 936
THE PERSON'S ESTATE OR SUCCESSOR IN INTEREST.
(D) A PERSON WHO DOES NOT HOLD AN OHIO PERMIT OR A FOREIGN 939
21
CERTIFICATE MAY OWN AN EQUITY INTEREST IN A PUBLIC ACCOUNTING 940
FIRM IF ALL OF THE FOLLOWING CONDITIONS ARE MET: 942
(1) ALL OF THE INDIVIDUALS WHO HOLD AN OHIO PERMIT OR A 944
FOREIGN CERTIFICATE AND WHO OWN EQUITY INTERESTS IN THE PUBLIC 945
ACCOUNTING FIRM, AND QUALIFIED FIRMS THAT OWN EQUITY INTERESTS IN 946
THE PUBLIC ACCOUNTING FIRM, OWN, IN THE AGGREGATE, A MAJORITY OF 947
THE EQUITY INTERESTS IN THE PUBLIC ACCOUNTING FIRM AND CONTROL 948
THE PUBLIC ACCOUNTING FIRM.
(2) THE PERSON DOES NOT ASSUME OR USE ANY TITLES OR 951
DESIGNATIONS SPECIFIED IN DIVISION (A) OF SECTION 4701.14 OF THE 952
REVISED CODE. THE PERSON MAY DESIGNATE OR REFER TO THE PERSON AS 953
A SHAREHOLDER, PARTNER, MEMBER, PRINCIPAL, OWNER, OR OFFICER OF 954
THE PUBLIC ACCOUNTING FIRM AND ALSO MAY USE ANY OTHER TITLE THAT 956
THE BOARD AUTHORIZES BY RULE.
(3) THE PERSON IS NOT IN VIOLATION OF ANY STANDARD 959
REGARDING THE CHARACTER OR CONDUCT OF THAT PERSON THAT THE BOARD 960
ESTABLISHES BY RULE.
(4) THE PERSON'S PARTICIPATION IN THE BUSINESS OF THE 963
PUBLIC ACCOUNTING FIRM IS THE PERSON'S PRINCIPAL OCCUPATION AND
CONSISTS OF PROVIDING SERVICES TO OR ON BEHALF OF THE PUBLIC 964
ACCOUNTING FIRM, AND THE PERSON IS NOT FUNCTIONING SOLELY OR 966
PREDOMINATELY AS A PASSIVE INVESTOR IN THE PUBLIC ACCOUNTING 967
FIRM.
(5) THE PERSON HAS GRADUATED WITH A BACCALAUREATE OR 971
HIGHER DEGREE CONFERRED BY A COLLEGE OR UNIVERSITY APPROVED BY 972
THE BOARD.
(6) THE PERSON MEETS OR EXCEEDS THE CONTINUING EDUCATION 975
REQUIREMENTS THAT THE BOARD ESTABLISHES BY RULE.
(7) A PERSON WHO HOLDS A PROFESSIONAL LICENSE, 977
REGISTRATION, OR CERTIFICATION ISSUED BY THIS STATE OR ANOTHER 978
STATE COMPLIES WITH THE REQUIREMENTS OF THAT LICENSE, 980
REGISTRATION, OR CERTIFICATION.
(8) THE PERSON ABIDES BY THE CODE OF CONDUCT OF THE 983
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OR A 984
22
COMPARABLE CODE OF PROFESSIONAL CONDUCT THAT THE BOARD ADOPTS BY 985
RULE.
(9) THE PERSON COMPLIES WITH ALL APPLICABLE PROVISIONS OF 988
THIS CHAPTER AND THE RULES ADOPTED BY THE BOARD. 989
(C)(E) A PERSON WHO OWNS A VOTING EQUITY INTEREST IN A 992
PUBLIC ACCOUNTING FIRM MAY NOT DELEGATE, BY PROXY OR OTHERWISE, 993
THE DUTY TO EXERCISE ANY VOTING RIGHTS TO A PERSON THAT DOES NOT 994
HOLD AN OHIO PERMIT OR A FOREIGN CERTIFICATE OR TO A PERSON THAT 995
IS NOT A QUALIFIED FIRM. 996
(F) As a condition for initial or renewal registration OF 998
A PUBLIC ACCOUNTING FIRM on and after January 1, 1993, the board, 1,000
by rule, shall require that all EACH public accounting firms FIRM 1,001
undergo a quality PEER review to determine the PUBLIC ACCOUNTING 1,004
FIRM'S degree of compliance by the firm IN THE PRACTICE OF PUBLIC 1,005
ACCOUNTING with generally accepted accounting principles and, 1,007
GENERALLY ACCEPTED auditing standards, and other generally 1,008
accepted technical standards, unless the applicant PUBLIC 1,009
ACCOUNTING firm meets one of the exceptions in division (G)(J) of 1,011
this section.
(D)(G) The board shall adopt rules establishing guidelines 1,013
for quality PEER reviews. The rules shall do all of the 1,014
following: 1,015
(1) Designate a quality PEER review committee consisting 1,017
of accounting professionals to serve as advisors to the board and 1,018
to ensure that the board's guidelines are followed. The board 1,019
shall MAY establish fair and reasonable compensation for the 1,020
committee members to be paid for time they spend conducting 1,022
committee business.
(2) Require that the quality PEER review be conducted by a 1,024
reviewer that is both independent of the PUBLIC ACCOUNTING firm 1,025
reviewed and qualified pursuant to board rules; 1,027
(3) Require that the standards and practices applied by 1,029
the reviewer be at least as stringent as those applied by the 1,030
American institute of certified public accountants; 1,031
23
(4) Prohibit the use or disclosure of information obtained 1,033
by members of the board OR A COMMITTEE of PEER reviewers during 1,034
or in connection with the quality PEER review process for 1,036
purposes other than those related to determining the degree of 1,038
compliance by the PUBLIC ACCOUNTING firm with generally accepted 1,040
accounting principles and, GENERALLY ACCEPTED auditing standards, 1,041
and other generally accepted technical standards. Division 1,043
(D)(G)(4) of this section does not apply to the use or disclosure 1,044
of information that is described in division (H)(K)(3) of this 1,045
section or that is necessary to comply with any provision of law. 1,047
(E)(H)(1) If a quality PEER review report indicates that a 1,050
PUBLIC ACCOUNTING firm does not comply with standards and 1,052
practices set forth in board guidelines, the board may, at, IN 1,053
its discretion, or shall, upon submission of a written 1,055
application by the firm, MAY hold a hearing to determine whether 1,056
the firm complies with the standards and practices. If the 1,057
board, after conducting the hearing, determines that the firm 1,058
complies with the standards and practices, it shall issue an 1,059
order requiring the reviewer and the quality review committee to 1,060
take any necessary action to record and implement the board's 1,061
determination and to restore the status of compliance upon the 1,062
firm. However, if REVIEW THE RESULTS OF THE PEER REVIEW REPORT. 1,063
IF the board, after conducting the hearing, determines that the 1,064
PUBLIC ACCOUNTING firm does not comply with the standards and 1,066
practices, it may issue an order that requires both of the 1,067
following:
(a) Remedial OR DISCIPLINARY action, which may include ANY 1,069
OF THE FOLLOWING: 1,070
(i) Requiring employees of the PUBLIC ACCOUNTING firm to 1,072
complete general or specific continuing professional education 1,074
courses;
(ii) Requiring the PUBLIC ACCOUNTING firm to undergo 1,076
quality PEER review more frequently than triennially and PEER 1,079
REVIEW THAT IS conducted in whole or part under the direct 1,081
24
supervision of the board or its designee;
(iii) Any other remedial action specified by the board; 1,083
(iv) IMPOSING ANY DISCIPLINARY MEASURES SET FORTH IN 1,085
DIVISION (B) OF SECTION 4701.16 OF THE REVISED CODE. 1,086
(b) An affidavit from the PUBLIC ACCOUNTING firm submitted 1,088
within the time specified by the board indicating completion of 1,090
required remedial actions. 1,091
(2) Notwithstanding divisions (H)(K)(1) and (2) of this 1,093
section, all matters relating to the procedures for determining 1,094
compliance with the standards and practices under division 1,096
(E)(H)(1) of this section are subject to Chapter 119. of the 1,097
Revised Code, including the notice and conduct of any hearing, 1,098
and the issuance and appeal of any order. 1,099
(F)(I) The PUBLIC ACCOUNTING firm reviewed shall pay for 1,102
any quality PEER review performed. 1,103
(G)(J) The board may exempt a PUBLIC ACCOUNTING firm from 1,106
the requirement to undergo a quality PEER review if the PUBLIC 1,107
ACCOUNTING firm submits to the board a written and notarized 1,110
statement that the PUBLIC ACCOUNTING firm meets at least one of 1,112
the following grounds for exemption identified in the statement: 1,113
(1) Within three years of the date of application for 1,115
initial or renewal registration, the PUBLIC ACCOUNTING firm has 1,116
been subject to a quality PEER review acceptable to the board and 1,118
conducted pursuant to standards not less stringent than review 1,120
standards applied by the American institute of certified public 1,121
accountants. The PUBLIC ACCOUNTING firm shall submit to the 1,123
board a copy of the results of the quality PEER review and any 1,125
additional documentation required by the board. The board, 1,126
however, shall not require submittal of the working papers 1,127
related to the quality PEER review process.
(2) Within three years of the date of application for 1,129
initial or renewal registration, the PUBLIC ACCOUNTING firm has 1,130
undergone a quality PEER review conducted in another state or 1,132
foreign country. The PUBLIC ACCOUNTING firm shall submit to the 1,134
25
board a copy of the results of the quality PEER review and any 1,136
additional documentation required by the board, including a 1,137
detailed report of the procedures and standards applied by the 1,138
reviewer.
(3) The PUBLIC ACCOUNTING firm has never practiced public 1,140
accounting in this state or any other state or foreign country 1,142
and will undergo a quality PEER review within eighteen months of 1,143
registration.
(4) The PUBLIC ACCOUNTING firm, on a schedule as required 1,145
by rule adopted by the board, submits a report to the board that 1,146
states all of the following: 1,147
(a) The PUBLIC ACCOUNTING firm does not engage in any 1,149
financial reporting areas of practice including audits, 1,151
compilations, or reviews UNDERTAKE ANY ENGAGEMENT THAT WILL 1,152
RESULT IN THE ISSUANCE OF AN ATTEST REPORT.
(b) Within the next three years, the PUBLIC ACCOUNTING 1,154
firm does not intend to engage in any financial reporting areas 1,156
of practice including audits, compilations, reviews, or 1,157
prospective financial statements UNDERTAKE ANY ENGAGEMENT THAT 1,158
WILL RESULT IN THE ISSUANCE OF ANY ATTEST REPORT. 1,159
(c) The PUBLIC ACCOUNTING firm agrees to notify the board 1,161
within ninety days of engaging in any financial reporting areas 1,163
of practice including audits, compilations, or reviews AFTER 1,164
ACCEPTING ANY ENGAGEMENT THAT WILL RESULT IN THE ISSUANCE OF ANY 1,165
ATTEST REPORT and will undergo a quality PEER review within one 1,168
year of commencing such practices AFTER THE ACCEPTANCE OF AN 1,170
ENGAGEMENT OF THAT NATURE.
(5) Subject to the board's approval, for reasons of 1,172
personal health, military service, or other good cause, the 1,173
PUBLIC ACCOUNTING firm is entitled to an exemption. 1,175
(H)(K) In any civil action, arbitration, or administrative 1,177
proceeding involving a PUBLIC ACCOUNTING firm, all of the 1,178
following shall apply: 1,179
(1) The proceedings, records, and work papers of any 1,181
26
reviewer, including board members and review committee members, 1,182
involved in the quality PEER review process are privileged and 1,183
not subject to discovery, subpoena, or other means of legal 1,185
process and may not be introduced into evidence. 1,186
(2) No reviewer, including board members and review 1,188
committee members, involved in the quality PEER review process 1,189
shall be permitted or required to testify as to any matters 1,191
produced, presented, disclosed, or discussed during or in 1,192
connection with the quality PEER review process; or SHALL be 1,193
required to testify to any finding, recommendation, evaluation, 1,196
opinion, or other actions of such THOSE committees, or their 1,197
members.
(3) No privilege exists under this section for either of 1,199
the following: 1,200
(a) Information presented or considered in the quality 1,202
PEER review process which THAT was otherwise available to the 1,203
public;
(b) Materials prepared in connection with a particular 1,205
engagement merely because they subsequently are presented or 1,206
considered as part of the quality PEER review process. 1,207
(I)(L) If a quality PEER review report indicates that a 1,210
PUBLIC ACCOUNTING firm complies with standards and practices set 1,212
forth in board guidelines, the board shall destroy all documents 1,213
and reports related to the quality PEER review within thirty days 1,214
after the board completes its review of the report. If a quality 1,216
PEER review report indicates that a PUBLIC ACCOUNTING firm does 1,218
not comply with such THOSE standards and practices, the board 1,221
shall retain all documents and reports related to the quality 1,222
PEER review until completion of the next quality PEER review. 1,223
Sec. 4701.06. The ACCOUNTANCY BOARD SHALL GRANT THE 1,232
certificate of "certified public accountant" shall be granted by 1,234
the accountancy board to any person WHO SATISFIES THE FOLLOWING 1,235
REQUIREMENTS:
(A) Who THE PERSON is a resident of this state or has a 1,237
27
place of business therein IN THIS STATE or, as an employee, is 1,239
regularly employed therein IN THIS STATE. The board may 1,241
DETERMINE by rule determine circumstances under which the 1,244
residency requirement may be waived.
(B) Who THE PERSON has attained the age of eighteen 1,247
years;.
(C) Who THE PERSON is of good moral character;. 1,249
(D) Who THE PERSON meets the FOLLOWING requirements of 1,251
education and experience as provided in this division: 1,253
(1)(a) Prior to January 1, 2000, graduation with a 1,255
baccalaureate degree conferred by a college or university 1,256
recognized by the board, with a concentration in accounting that 1,257
includes related courses in other areas of business 1,258
administration, or what the board determines to be substantially 1,259
the equivalent of the foregoing; 1,260
(b) On and after January 1, 2000, graduation with a 1,262
baccalaureate or higher degree that includes successful 1,263
completion of one hundred fifty semester hours of undergraduate 1,264
or graduate education. The board shall by rule SHALL specify 1,265
graduate degrees that satisfy this requirement and shall also by 1,267
rule SHALL require such ANY subjects as THAT it considers 1,269
appropriate. The total educational program shall include an 1,270
accounting concentration with related courses in other areas of 1,271
business administration, as defined by board rule. 1,272
(2)(a) The experience requirement for candidates meeting 1,274
the educational requirements set forth in division (D)(1)(a) or 1,275
(b) of this section is two years ONE YEAR of public accounting 1,277
experience, satisfactory to the board, in any state in practice, 1,278
as a certified public accountant or as a public accountant, or, 1,279
in any state in employment, as a staff accountant by anyone 1,280
practicing public accounting, or such experience in private or 1,281
governmental accounting as is, in the opinion of the board, the 1,282
equivalent of such public accounting practice, or any combination 1,283
of such types of experience. 1,285
28
(b) The experience requirement is only one year of the 1,287
experience described in division (D)(2)(a) of this section for 1,288
any candidate holding a master's degree in accounting or business 1,289
administration from a college or university recognized by the 1,290
board, if he has satisfactorily completed such number of semester 1,293
hours in graduate accounting and such related subjects as the
board determines to be appropriate ANY OF THE FOLLOWING: 1,294
(i) A PUBLIC ACCOUNTING FIRM; 1,296
(ii) GOVERNMENT; 1,298
(iii) BUSINESS; 1,300
(iv) ACADEMIA. 1,302
(c)(b) Except as provided in division (D)(2)(d)(c) of this 1,305
section, the experience requirement for any candidate who, on and 1,306
after January 1, 2000, does not meet the educational requirement 1,307
set forth in division (D)(1)(b) of this section is four years of 1,308
experience described in division (D)(2)(a) of this section. The 1,309
experience requirement for any candidate who, prior to January 1, 1,310
2000, does not meet the educational requirement set forth in 1,311
division (D)(1)(a) of this section is two years of experience 1,312
described in division (D)(2)(a) of this section. 1,313
(d)(c) On and after January 1, 2000, the experience 1,315
requirement for any candidate who, subsequent to obtaining a 1,316
baccalaureate or higher degree, other than a baccalaureate or 1,317
higher degree described in division (D)(1)(b) of this section, 1,318
successfully completes coursework that meets the educational 1,319
requirement set forth in division (D)(1)(b) of this section, is 1,320
two years of experience described in division (D)(2)(a) of this 1,321
section. 1,322
(E) Who THE PERSON has passed a written examination in 1,324
accounting and auditing and in such ANY related subjects as THAT 1,326
the board determines to be appropriate. The board shall adopt 1,328
rules, consistent with this section, for these examinations and 1,329
for application to take these examinations. 1,330
None of the educational requirements specified in division 1,332
29
(D) of this section apply to a candidate who is registered as a 1,333
public accountant under section 4701.07 of the Revised Code HAS A 1,334
PA REGISTRATION, but the experience requirement for such THE 1,336
candidate who does not meet such THOSE educational requirements 1,338
is four years of the experience described in division (D)(2)(a) 1,340
of this section.
Prior to January 1, 2000, the board shall waive the 1,342
educational requirement set forth in division (D)(1)(a) of this 1,343
section for any candidate if it finds that the candidate has 1,344
attained the equivalent education by attendance at a business 1,345
school, by self-study, or otherwise, and if it is satisfied from 1,346
the results of special written examinations given THAT THE BOARD 1,347
GIVES the candidate by the board to test his THE CANDIDATE'S 1,349
educational qualifications that he THE CANDIDATE is as well 1,350
equipped, educationally, as if he THE CANDIDATE met the 1,351
applicable educational requirement specified in division 1,352
(D)(1)(a) of this section.
On and after January 1, 2000, the board shall waive the 1,354
educational requirement set forth in division (D)(1)(b) of this 1,355
section for any candidate if the board finds that the candidate 1,356
has obtained from an accredited college or university approved by 1,357
the board, either an associate degree or a baccalaureate degree, 1,358
other than a baccalaureate degree described in division (D)(1)(b) 1,359
of this section, with a concentration in accounting that includes 1,360
related courses in other areas of business administration, and if 1,361
the board is satisfied from the results of special written 1,362
examinations given THAT THE BOARD GIVES the candidate by the 1,363
board to test his THE CANDIDATE'S educational qualification that 1,365
the candidate is as well equipped, educationally, as if he THE 1,367
CANDIDATE met the applicable educational requirement specified in 1,368
division (D)(1)(b) of this section.
The board shall provide by rule for the general scope of 1,370
any special written examinations for a waiver of the educational 1,371
requirements under division (D)(1)(a) or (b) of this section, and 1,372
30
may obtain such ANY advice and assistance as THAT it considers 1,374
appropriate to assist it in preparing and grading such THOSE 1,375
special written examinations. The board may use any existing 1,376
examinations or may prepare any number of new examinations to 1,377
assist in determining the equivalent training of a candidate. 1,378
The board shall by rule SHALL prescribe any special written 1,379
examinations for a waiver of the educational requirements under 1,380
division (D)(1)(a) or (b) of this section and the passing score 1,381
required for each examination.
The examinations described in division (E) of this section 1,383
and the special written examinations for a waiver of the 1,384
educational requirements under division (D)(1)(a) or (b) of this 1,385
section shall be held by the board and shall take place as often 1,386
as the board determines to be desirable, but the examinations 1,387
described in division (E) of this section shall be held not less 1,388
frequently than once each year. The board may make such THE use 1,389
of all or any part of the uniform certified public accountants' 1,391
examination and advisory grading service, or either, as it 1,392
considers appropriate to assist it in performing its duties 1,393
hereunder UNDER THIS SECTION. The board ALSO may also contract 1,395
with qualified organizations for assistance in the administration 1,397
of any examinations. The board by rule may provide for granting 1,398
credit to a candidate for his satisfactory completion of a 1,399
written examination in one or more of the subjects specified 1,400
REFERRED TO in division (E) of this section given by the 1,402
licensing authority in any other state. 1,403
A candidate who has met the educational requirements, or 1,405
with respect to whom they either do not apply or have been 1,406
waived, is eligible to take the examination specified REFERRED TO 1,408
in division (E) of this section without waiting until he THE 1,409
CANDIDATE meets the experience requirements, provided he THE 1,410
CANDIDATE also meets the requirements of divisions (A) and (C) of 1,412
this section.
A candidate for the certificate of certified public 1,414
31
accountant who has successfully completed the examination under 1,415
division (E) of this section has no status as a certified public 1,416
accountant, unless and until he THE CANDIDATE has the requisite 1,417
experience and has received his A certificate as a certified 1,418
public accountant. The board shall determine and charge a fee 1,419
for issuing the certificate that is adequate to cover the 1,420
expense.
The board may by rule MAY prescribe the terms and 1,422
conditions under which a candidate who passes the examination in 1,423
one or more of the subjects indicated REFERRED TO in division (E) 1,424
of this section may be reexamined in only the remaining subjects, 1,426
with credit for the subjects previously passed. It may also MAY 1,427
provide by rule for a reasonable waiting period for a candidate's 1,429
reexamination in a subject he THE CANDIDATE has failed. Subject 1,430
to the foregoing BOARD RULES OF THOSE TYPES and such ANY other 1,432
rules as THAT the board may adopt governing reexaminations, a 1,433
candidate is entitled to any number of reexaminations under 1,434
division (E) of this section. No candidate shall be required to 1,435
be reexamined in all subjects unless a period of four years has 1,436
elapsed since the candidate initially earned credit on the 1,437
examination. 1,438
The applicable educational and experience requirements 1,440
under division (D) of this section shall be those in effect on 1,441
the date on which the candidate first sits for the examination. 1,442
The board shall charge such A candidate a reasonable fee, 1,444
to be determined by the board, that is adequate to cover all 1,445
rentals, compensation for proctors, and other administrative 1,446
expenses of the board related to examination or reexamination, 1,447
including the expenses of procuring and grading the examination 1,448
provided for in division (E) of this section and for any special 1,449
written examinations for a waiver of the educational requirements 1,450
under division (D)(1)(a) or (b) of this section. Fees for 1,451
reexamination under division (E) of this section shall be charged 1,452
by the board in amounts determined by it. The applicable fees 1,453
32
shall be paid by the candidate at the time he THE CANDIDATE 1,454
applies for examination or reexamination. 1,455
Any person who has received from the board a certificate as 1,457
a certified public accountant and who holds a AN OHIO permit 1,459
issued under section 4701.10 of the Revised Code, which is in 1,460
full force and effect, shall be styled and known as a "certified 1,461
public accountant" and may also MAY use the abbreviation "CPA." 1,463
The board shall maintain a list of certified public accountants. 1,464
Any certified public accountant may also MAY be known as a 1,465
"public accountant." 1,466
Persons who, on the effective date of an amendment of this 1,468
section, held certified public accountant certificates 1,469
theretofore PREVIOUSLY issued under the laws of this state shall 1,470
not be required to obtain additional certificates under this 1,472
section, but shall otherwise be subject to all provisions of this 1,473
section;, and such THOSE PREVIOUSLY ISSUED certificates 1,475
theretofore issued shall, for all purposes, SHALL be considered 1,478
certificates issued under this section and subject to the ITS 1,479
provisions hereof.
The board may waive the examination under division (E) of 1,481
this section, and, upon payment of a fee determined by it, may 1,483
issue a certificate as a "certified public accountant" to any 1,484
person possessing WHO POSSESSES the qualifications specified in 1,485
divisions (A), (B), and (C) of this section and what the board 1,487
determines to be substantially the equivalent of the applicable 1,488
qualifications under division (D) of this section, AND who is the 1,489
holder of a certificate as a certified public accountant, then in 1,490
full force and effect, issued under the laws of any state, or is 1,491
the holder of a certificate, license, or degree in a foreign 1,492
country constituting THAT CONSTITUTES a recognized qualification 1,493
for the practice of public accounting in such THAT country, THAT 1,495
IS comparable to that of a certified public accountant of this 1,497
state, which AND THAT is then in full force and effect. 1,499
Sec. 4701.061. Notwithstanding anything to the contrary in 1,508
33
section 4701.06 of the Revised Code, the ACCOUNTANCY BOARD SHALL 1,509
GRANT A certificate of "certified public accountant" shall be 1,511
granted by the accountancy board to any public accountant who 1,512
meets all the following requirements: 1,513
(A) The public accountant applies to the board for the 1,515
certificate under this section;. 1,516
(B) At the time of application and the time that the 1,518
certificate is granted, the public accountant holds a live AN 1,520
OHIO permit issued under division (A) of section 4701.10 of the 1,521
Revised Code;. 1,522
(C) At the time of application, any public accounting firm 1,524
that employs the public accountant or in which the public 1,525
accountant has an interest is registered, and meets the 1,526
applicable quality PEER review requirements of the board, under 1,528
section 4701.04 of the Revised Code;. 1,529
(D) For not less than one hundred twenty months, the 1,531
public accountant has held a AN OHIO permit issued under division 1,533
(A) of section 4701.10 of the Revised Code and has completed and 1,534
reported to the board all applicable continuing education hours 1,535
required by section 4701.11 of the Revised Code and the rules 1,536
adopted pursuant thereto TO THAT SECTION. 1,537
Sec. 4701.07. The accountancy board shall register as a 1,546
public accountant any person who meets all the following 1,547
requirements: 1,548
(A) Is THE PERSON IS a resident of this state, or has a 1,550
place of business therein; IN THIS STATE. 1,552
(B) Has THE PERSON HAS attained the age of eighteen 1,555
years;.
(C) Is THE PERSON IS of good moral character;. 1,557
(D) Holds THE PERSON HOLDS a baccalaureate or higher 1,559
degree conferred by a college or university recognized by the 1,561
board, with a concentration in accounting, or with what the board 1,562
determines to be substantially THE equivalent of the foregoing; 1,563
or with a nonaccounting concentration supplemented by what the 1,564
34
board determines to be substantially the equivalent of an 1,565
accounting concentration, including related courses in other 1,566
areas of business administration. 1,567
The board may waive the educational requirement for any 1,569
candidate if it finds that the candidate has attained the 1,570
equivalent education by attendance at a business school or 1,571
two-year college, by self-study, or otherwise, and if it is 1,572
satisfied from the result of a special written examination given 1,573
THAT THE BOARD GIVES the candidate by the board to test his THE 1,575
CANDIDATE'S educational qualifications that he THE CANDIDATE is 1,576
as well equipped, educationally, as if he THE CANDIDATE met the 1,577
applicable educational requirement specified in this division. 1,578
The board may provide by rule for the general scope of such THESE 1,579
examinations and may obtain such ANY advice and assistance as 1,581
THAT it considers appropriate to assist it in preparing and 1,582
grading such THE special examinations. The board may use any 1,584
existing examinations or may prepare any number of new 1,585
examinations to assist it in determining the equivalent training 1,586
of a candidate. The board may by rule MAY prescribe such THE 1,587
SPECIAL examinations and the passing score required for each 1,590
examination.
(E) Has THE PERSON HAS completed two years of public 1,592
accounting experience, satisfactory to the board, in any state in 1,593
practice as a public accountant, or in any state in employment, 1,594
as a staff accountant by anyone practicing public accounting, or 1,596
such OTHER experience in private or governmental accounting as 1,597
will THAT, in the opinion of the board, WILL be the equivalent of 1,599
such THAT public accounting practice, or any combination of such 1,601
THOSE types of experience, except that the experience requirement 1,603
is only one year of the experience described in this division for 1,604
any candidate holding a master's degree in accounting or business 1,605
administration from a college or university recognized by the 1,606
board, if he THE CANDIDATE has satisfactorily completed such THE 1,607
number of credit hours in accounting, business administration, 1,609
35
economics, and such ANY related subjects as THAT the board 1,611
determines to be appropriate; and IF EITHER OF THE FOLLOWING 1,612
APPLIES:
(1) Has THE PERSON HAS passed the uniform national society 1,614
of public accountants examination or a comparable examination 1,616
approved by the public accountant members of the accountancy 1,617
board; or.
(2) Has THE PERSON HAS passed the accounting practice and 1,619
auditing sections of the uniform CPA examination. 1,621
The examination described in division (E)(1) of this 1,623
section shall be held by the board and shall take place as often 1,624
as the board determines, but shall not be held less frequently 1,625
than once each year. The board shall charge a candidate an 1,626
application fee, to be determined by the board, that is adequate 1,627
to cover all rentals, compensation for proctors, and other 1,628
expenses of the board related to examination or reexamination 1,629
except the expenses of procuring and grading the examination. In 1,630
addition, the board shall charge such THE candidate an 1,631
examination fee to be determined by the board, that is adequate 1,633
to cover the expense of procuring and grading the examination. 1,634
Fees for reexamination under division (E) of this section shall 1,635
also SHALL be charged by the board in amounts determined by it to 1,637
be adequate to cover the expenses of procuring and grading the 1,638
examinations. The applicable fees shall be paid by the candidate 1,639
at the time he THE CANDIDATE applies for examination or 1,640
reexamination.
(F) Applied THE PERSON APPLIED, on or before the effective 1,642
date of this amendment APRIL 16, 1993, for registration as a 1,644
public accountant. 1,645
The board shall determine and charge a fee for registration 1,647
under this section that is adequate to cover the expense. 1,648
The board shall in each case SHALL determine whether the 1,650
applicant is eligible for registration. Any individual who is so 1,651
registered and who holds a AN OHIO permit issued under section 1,654
36
4701.10 of the Revised Code shall be styled and known as a 1,655
"public accountant" and may use the abbreviation "PA." 1,656
A person who, on the effective date of an amendment of this 1,658
section, holds a valid registration as a public accountant issued 1,659
under the laws of this state shall not be required to obtain 1,660
additional registration under this section, but shall otherwise 1,661
be subject to all provisions of this section; and such. THAT 1,663
registration shall, for all purposes, SHALL be considered a 1,664
registration issued under this section and subject to the ITS 1,666
provisions hereof.
Sec. 4701.10. (A) Permits to practice public accounting 1,676
shall be issued by the THE accountancy board SHALL ISSUE OHIO 1,677
PERMITS TO PRACTICE PUBLIC ACCOUNTING to holders of the 1,679
certificate of certified public accountant issued under section 1,680
4701.06 or 4701.061 of the Revised Code and to persons registered 1,681
under sections 4701.07 and 4701.09 of the Revised Code. Subject 1,682
to division (D)(1) of this section, there shall be a triennial 1,683
permit fee in an amount to be determined by the board not to 1,684
exceed one hundred fifty dollars. All OHIO permits shall expire 1,686
on the last day of December of the year assigned by the board 1,687
and, subject to division (D)(1) of this section, shall be renewed 1,688
triennially for a period of three years by certificate holders 1,689
and registrants in good standing upon payment of a triennial 1,690
renewal fee not to exceed one hundred fifty dollars. For the
purpose of implementing this section and enforcing section 1,692
4701.11 of the Revised Code, the board may issue a AN OHIO permit 1,693
for less than three years' duration. A prorated fee shall be 1,694
determined by the board for such THAT OHIO permit. Failure of 1,696
any certificate holder or registrant to apply for a triennial 1,697
OHIO permit to practice within three years from the expiration 1,699
date of the OHIO permit to practice last obtained or renewed, or 1,700
three years from the date upon which the certificate holder or 1,702
registrant was granted a certificate or registration, shall 1,703
result in suspension of such THE certificate or registration 1,704
37
unless the board determines such THE failure to have been due to 1,706
excusable neglect. In such THAT case, the renewal fee or the fee 1,708
for the issuance of the original OHIO permit, as the case may be, 1,709
shall be such THE amount as THAT the board shall determine, but 1,711
not in excess of fifty dollars plus the fee for each triennial 1,712
period or part of a period the certificate holder or registrant 1,713
did not have a AN OHIO permit. 1,714
(B) All certificate holders and registrants who are not in 1,716
the practice of public accounting in this state shall register 1,717
with the board every three years at a fee, not to exceed 1,718
fifty-five dollars, established by the board. Such persons shall 1,719
not convey to the general public that they are actively engaged 1,720
in the practice of public accounting in this state. 1,721
(C) The board shall suspend the certificate or 1,723
registration of any person failing to obtain a AN OHIO permit in 1,725
accordance with this section, except that the board may by rule 1,726
MAY exempt persons from the requirement of holding a AN OHIO 1,728
permit for such SPECIFIED reasons as, INCLUDING, BUT NOT LIMITED 1,729
TO, retirement, health reasons, military service, foreign 1,730
residency, or other just cause. 1,731
(D)(1) On and after January 1, 1995, the board shall, by 1,733
rule adopted in accordance with Chapter 119. of the Revised Code, 1,734
SHALL increase the triennial OHIO permit and renewal fee imposed 1,736
pursuant to this section by at least fifteen dollars but no more 1,737
than thirty dollars. 1,738
(2) Beginning with the first quarter of 1995 and each 1,740
quarter thereafter, the board, for the purpose provided in 1,741
section 4743.05 of the Revised Code, shall certify to the 1,742
director of budget and management the number of triennial OHIO 1,743
permits renewed under this chapter during the preceding quarter 1,745
and the amount equal to that number times the amount by which the 1,746
triennial OHIO permit and renewal fee is increased by the board 1,748
under division (D)(1) of this section. 1,749
Sec. 4701.11. The accountancy board may adopt rules 1,758
38
requiring that each applicant for the AN OHIO permit required by 1,760
section 4701.10 of the Revised Code shall have demonstrated to 1,762
the satisfaction of the board that the applicant has maintained a 1,763
high level of professional competence by the completion of 1,764
programs of continuing education satisfactory to the board during 1,765
the period immediately prior to the application for the permit or 1,766
renewal. The board shall not require more than one hundred 1,767
twenty hours of such THOSE programs over any three-year period 1,768
for applicants possessing a live AN OHIO permit. For purposes of 1,771
this section, the board shall not approve any continuing 1,772
education courses for which fees are charged and which THAT are 1,773
sponsored by an accounting association in this state unless such 1,775
THOSE courses are open to all persons registered or certified 1,777
under this chapter and unless the fees charged are reasonable for 1,778
all persons desiring to take the courses. 1,779
The board may issue a AN OHIO permit required by section 1,782
4701.10 of the Revised Code for less than three years to any 1,783
person who is unable to complete continuing education hours 1,784
required for renewal of a triennial OHIO permit for good cause, 1,785
as established by rule. Such THE OHIO permit shall be 1,787
conditioned upon the completion of all required continuing 1,789
education hours during the period for which such THE OHIO permit 1,790
is issued.
Sec. 4701.12. The display or uttering by a person of a 1,799
card, sign, advertisement, or other printed, engraved, or written 1,800
instrument or device, bearing a person's name in conjunction with 1,802
the words "certified public accountant" or any abbreviation 1,803
thereof OF THOSE WORDS, or "public accountant" or any 1,804
abbreviation thereof OF THOSE WORDS, shall be prima-facie 1,806
evidence in any action brought under section 4701.18 or section 1,808
4701.99 of the Revised Code, that the person whose name is so 1,810
displayed caused or procured the display or uttering of such THAT 1,811
card, sign, advertisement, or other printed, engraved, or written 1,812
instrument or device, and that such THE person is holding himself 1,814
39
SELF out to be a certified public accountant or a public 1,816
accountant holding a AN OHIO permit to practice under section 1,818
4701.10 of the Revised Code. In any action, evidence of the 1,820
commission of a single act prohibited by this section shall be
sufficient to justify an injunction or a conviction without 1,821
evidence of a general course of conduct. 1,822
Sec. 4701.13. The accountancy board shall publish annually 1,831
a printed register, which. THE PRINTED REGISTER shall contain in 1,833
separate lists the names and business addresses of all certified 1,835
public accountants and public accountants holding live OHIO 1,836
permits as of the date of preparation of the register. 1,837
Sec. 4701.14. (A) No person EXCEPT AS PERMITTED BY RULES 1,846
ADOPTED BY THE ACCOUNTANCY BOARD, NO INDIVIDUAL shall assume or 1,847
use the title or designation "certified public accountant," 1,849
"CERTIFIED ACCOUNTANT," "CHARTERED ACCOUNTANT," "ENROLLED
ACCOUNTANT," "LICENSED ACCOUNTANT," OR "REGISTERED ACCOUNTANT," 1,850
OR ANY OTHER TITLE OR DESIGNATION LIKELY TO BE CONFUSED WITH 1,851
"CERTIFIED PUBLIC ACCOUNTANT," or abbreviation ANY OF THE 1,854
ABBREVIATIONS "CPA," "PA," "CA," "EA," "LA," OR "RA," OR SIMILAR 1,860
ABBREVIATIONS LIKELY TO BE CONFUSED WITH "CPA," or any other 1,862
title, designation, words, letters, abbreviation, sign, card, or 1,863
device tending to indicate that the person INDIVIDUAL is a 1,864
certified public accountant, unless the person has received 1,866
INDIVIDUAL HOLDS a CPA certificate as a certified public 1,867
accountant under section 4701.06 or 4701.061 of the Revised Code 1,868
and holds a live AN OHIO permit issued under section 4701.10 of 1,870
the Revised Code; provided that a foreign accountant who. 1,872
HOWEVER, AN INDIVIDUAL WHO POSSESSES A FOREIGN CERTIFICATE, has 1,873
registered under section 4701.09 of the Revised Code, and holds a 1,875
live AN OHIO permit issued under section 4701.10 of the Revised 1,876
Code may use the title PERMITTED under which he is generally 1,878
known in his country THE LAWS OF THE INDIVIDUAL'S OTHER LICENSING 1,879
JURISDICTION, followed by the name of the country from which he 1,881
received his certificate, license, or degree JURISDICTION. 1,883
40
(B) No partnership shall assume or use the title or 1,885
designation "certified public accountant" or abbreviation "CPA" 1,887
or any other title, designation, words, letters, abbreviation, 1,888
sign, card, or device tending to indicate that the partnership is 1,890
composed of certified public accountants unless it meets all of
the following requirements: 1,891
(1) At least one general partner of the partnership is a 1,893
certified public accountant of this state in good standing. 1,894
(2) Each partner who is personally engaged within this 1,896
state in the practice of public accounting as a member of the 1,897
partnership is a certified public accountant of this state in 1,898
good standing.
(3) Each partner of the partnership is a certified public 1,902
accountant of some state in good standing. 1,903
(4) Each resident manager in charge of an office of the 1,905
firm in this state is a certified public accountant of this state 1,906
in good standing. 1,907
(C) No person EXCEPT AS PERMITTED BY RULES ADOPTED BY THE 1,909
BOARD, NO INDIVIDUAL shall assume or use the title or designation 1,910
"public accountant," or "CERTIFIED PUBLIC ACCOUNTANT," "CERTIFIED 1,912
ACCOUNTANT," "CHARTERED ACCOUNTANT," "ENROLLED ACCOUNTANT," 1,913
"REGISTERED ACCOUNTANT," OR "LICENSED ACCOUNTANT," OR ANY OTHER 1,914
TITLE OR DESIGNATION LIKELY TO BE CONFUSED WITH "PUBLIC 1,915
ACCOUNTANT," OR ANY OF THE ABBREVIATIONS "PA," "CPA," "CA," "EA," 1,920
"LA," OR "RA," OR SIMILAR ABBREVIATIONS LIKELY TO BE CONFUSED 1,923
WITH "PA," or any other title, designation, words, letters, 1,926
abbreviation, sign, card, or device tending to indicate that the 1,927
person INDIVIDUAL is a public accountant, unless the person is 1,929
registered as a public accountant under section 4701.07 of the 1,930
Revised Code and INDIVIDUAL HOLDS A PA REGISTRATION AND holds a 1,931
live AN OHIO permit issued under section 4701.10 of the Revised 1,933
Code, or unless the person has received a INDIVIDUAL HOLDS A CPA 1,934
certificate as a certified public accountant under section 1,935
4701.06 or 4701.061 of the Revised Code or holds a live permit 1,936
41
issued under section 4701.10 of the Revised Code. AN INDIVIDUAL 1,938
WHO HOLDS A PA REGISTRATION AND AN OHIO PERMIT MAY HOLD SELF OUT 1,940
TO THE PUBLIC AS AN "ACCOUNTANT" OR "AUDITOR." 1,941
(D) No partnership shall assume or use the title or 1,943
designation "public accountant" or abbreviation "PA" or any other 1,945
title, designation, words, letters, abbreviation, sign, card, or 1,946
device tending to indicate that the partnership is composed of 1,947
public accountants, unless all of the following apply: 1,948
(1) At least one general partner of the partnership is a 1,950
certified public accountant or a public accountant of this state 1,951
in good standing. 1,952
(2) Each partner who is personally engaged within this 1,954
state in the practice of public accounting as a member of the 1,955
partnership is a certified public accountant or a public 1,956
accountant of this state in good standing. 1,957
(3) Each resident manager in charge of an office of a firm 1,959
in this state is a certified public accountant or a public 1,960
accountant of this state in good standing. 1,961
(E) No person or partnership shall assume or use the title 1,963
or designation "certified accountant," "chartered accountant," 1,964
"enrolled accountant," "licensed accountant," "registered 1,965
accountant," or any other title or designation likely to be 1,966
confused with "certified public accountant" or "public 1,967
accountant," or any of the abbreviations "CA," "EA," "RA," or"LA" or similar abbreviations likely to be confused with "CPA" or 1,973
"PA"; provided that anyone who holds a live permit issued under 1,976
section 4701.10 of the Revised Code may hold himself out to the 1,977
public as an "accountant" or "auditor"; and provided that a 1,979
foreign accountant who has registered under section 4701.09 of 1,980
the Revised Code and holds a live permit issued under section 1,981
4701.10 of the Revised Code may use the title under which he is 1,983
generally known in his country, followed by the name of the 1,985
country from which he received his certificate, license, or 1,987
degree. 1,988
42
(F) No (C) EXCEPT AS PROVIDED IN DIVISIONS (C)(1), (2), 1,991
(3), AND (4) OF THIS SECTION, NO PARTNERSHIP, professional 1,993
association, corporation-for-profit, limited liability company, 1,996
or other legal entity BUSINESS ORGANIZATION not addressed in 1,997
another division of this section THAT IS PRACTICING PUBLIC 1,999
ACCOUNTING IN THIS STATE shall assume or use the title or 2,001
designation "certified public accountant," or "public 2,002
accountant," and no professional association, 2,004
corporation-for-profit, limited liability company, or other legal 2,005
entity not addressed in another division of this section shall
assume or use the title or designation "certified accountant," 2,007
"chartered accountant," "enrolled accountant," "licensed 2,008
accountant," "registered accountant," or any other title or 2,009
designation likely to be confused with "certified public 2,010
accountant" or "public accountant," or any of the abbreviations 2,011
"CPA," "PA," "CA," "EA," "RA," or "LA," or similar abbreviations 2,013
likely to be confused with "CPA" or "PA," except that a OR ANY 2,016
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,017
CARD, OR DEVICE TENDING TO INDICATE THAT THE BUSINESS 2,018
ORGANIZATION IS A PUBLIC ACCOUNTING FIRM.
(1)(a) A PARTNERSHIP MAY ASSUME OR USE THE TITLE OR 2,021
DESIGNATION "CERTIFIED PUBLIC ACCOUNTANT," THE ABBREVIATION 2,022
"CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, LETTERS, 2,023
ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE THAT THE 2,024
PARTNERSHIP IS COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS IF IT IS 2,025
A REGISTERED FIRM, IF A MAJORITY OF ITS PARTNERS WHO ARE 2,026
INDIVIDUALS HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE, AND 2,029
IF A MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A 2,030
PARTNER HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE. 2,032
(b) A PARTNERSHIP MAY ASSUME OR USE THE TITLE OR 2,035
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 2,036
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,037
CARD, OR DEVICE TENDING TO INDICATE THAT THE PARTNERSHIP IS 2,038
COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A REGISTERED FIRM, IF A 2,039
43
MAJORITY OF ITS PARTNERS WHO ARE INDIVIDUALS HOLD A PA 2,041
REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN CERTIFICATE, AND IF 2,044
A MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A PARTNER 2,045
HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN 2,048
CERTIFICATE.
(2)(a) A professional association organized for the 2,050
practice of public accounting and incorporated under Chapter 2,052
1785. of the Revised Code may assume or use the title OR 2,053
DESIGNATION "certified public accountant," if all of its 2,055
shareholders are certified public accountants in good standing 2,058
under the law of this state or another state or may assume or use 2,059
the title "public accountant" if all of its shareholders are 2,060
public accountants in good standing under this chapter or its 2,063
shareholders consist of certified public accountants and public 2,064
accountants in good standing under this chapter, except that a 2,065
THE ABBREVIATION "CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, 2,068
LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE 2,069
THAT THE PROFESSIONAL ASSOCIATION IS COMPOSED OF CERTIFIED PUBLIC 2,070
ACCOUNTANTS IF IT IS A REGISTERED FIRM, IF A MAJORITY OF ITS 2,071
SHAREHOLDERS WHO ARE INDIVIDUALS HOLD A CPA CERTIFICATE OR A 2,072
FOREIGN CERTIFICATE, AND IF A MAJORITY OF THE OWNERS OF ANY 2,075
QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A CPA CERTIFICATE OR A 2,076
FOREIGN CERTIFICATE. 2,077
(b) A PROFESSIONAL ASSOCIATION INCORPORATED UNDER CHAPTER 2,080
1785. OF THE REVISED CODE MAY ASSUME OR USE THE TITLE OR 2,082
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 2,083
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,084
CARD, OR DEVICE TENDING TO INDICATE THAT THE PROFESSIONAL 2,085
ASSOCIATION IS COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A 2,086
REGISTERED FIRM, IF A MAJORITY OF ITS SHAREHOLDERS WHO ARE 2,087
INDIVIDUALS HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A 2,089
FOREIGN CERTIFICATE, AND IF A MAJORITY OF THE OWNERS OF ANY 2,092
QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A PA REGISTRATION, A 2,093
CPA CERTIFICATE, OR A FOREIGN CERTIFICATE. 2,095
44
(3)(a) A corporation-for-profit organized for the practice 2,098
of public accounting and incorporated under Chapter 1701. of the 2,100
Revised Code may assume or use the title OR DESIGNATION
"certified public accountant," if all of its shareholders are 2,105
certified public accountants in good standing under the law of 2,107
this state or another state or may assume or use the title 2,108
"public accountant" if all of its shareholders are public 2,110
accountants in good standing under this chapter or its 2,111
shareholders consist of certified public accountants and public 2,113
accountants in good standing under this chapter, and except that 2,114
a THE ABBREVIATION "CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, 2,117
LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE 2,118
THAT THE CORPORATION IS COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS 2,119
IF IT IS A REGISTERED FIRM, IF A MAJORITY OF ITS SHAREHOLDERS WHO 2,120
ARE INDIVIDUALS HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE, 2,122
AND IF A MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A 2,124
SHAREHOLDER HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE. 2,126
(b) A CORPORATION INCORPORATED UNDER CHAPTER 1701. OF THE 2,129
REVISED CODE MAY ASSUME OR USE THE TITLE OR DESIGNATION "PUBLIC 2,131
ACCOUNTANT," THE ABBREVIATION "PA," OR ANY OTHER TITLE, 2,132
DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE 2,133
TENDING TO INDICATE THAT THE CORPORATION IS COMPOSED OF PUBLIC 2,134
ACCOUNTANTS IF IT IS A REGISTERED FIRM, IF A MAJORITY OF THE 2,135
SHAREHOLDERS WHO ARE INDIVIDUALS HOLD A PA REGISTRATION, A CPA 2,138
CERTIFICATE, OR A FOREIGN CERTIFICATE, AND IF A MAJORITY OF THE 2,140
OWNERS OF ANY QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A PA 2,142
REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN CERTIFICATE. 2,144
(4)(a) A limited liability company formed ORGANIZED under 2,147
Chapter 1705. of the Revised Code for the purpose of rendering 2,149
public accounting services may assume and OR use the title OR 2,152
DESIGNATION "certified public accountant," if each member of the 2,155
company and, if the management of the company is not reserved to 2,156
its members, each manager of the company is a certified public 2,158
accountant in good standing under the law of this state or 2,160
45
another state or may assume and use the title "public accountant" 2,161
if each member of the company and, if the management of the 2,162
company is not reserved to its members, each manager of the 2,165
company is a public accountant in good standing under this 2,166
chapter or those members and, if applicable, managers are either 2,168
a certified public accountant or a public accountant in good 2,170
standing under this chapter THE ABBREVIATION "CPA," OR ANY OTHER 2,173
TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, CARD, OR 2,174
DEVICE TENDING TO INDICATE THAT THE LIMITED LIABILITY COMPANY IS 2,175
COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS IF IT IS A REGISTERED 2,176
FIRM, IF A MAJORITY OF ITS MEMBERS WHO ARE INDIVIDUALS HOLD A CPA 2,178
CERTIFICATE OR A FOREIGN CERTIFICATE, AND IF A MAJORITY OF THE 2,180
OWNERS OF ANY QUALIFIED FIRM THAT IS A MEMBER HOLD A CPA 2,182
CERTIFICATE OR A FOREIGN CERTIFICATE. 2,183
(b) A LIMITED LIABILITY COMPANY ORGANIZED UNDER CHAPTER 2,186
1705. OF THE REVISED CODE MAY ASSUME OR USE THE TITLE OR 2,189
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 2,190
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,191
CARD, OR DEVICE TENDING TO INDICATE THAT THE LIMITED LIABILITY 2,192
COMPANY IS COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A REGISTERED 2,193
FIRM, IF A MAJORITY OF THE MEMBERS WHO ARE INDIVIDUALS HOLD A PA 2,195
REGISTRATION, CPA CERTIFICATE, OR A FOREIGN CERTIFICATE, AND IF A 2,198
MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A MEMBER 2,199
HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN 2,201
CERTIFICATE. 2,202
(G)(D) No person INDIVIDUAL shall sign, affix, or 2,205
associate his THE INDIVIDUAL'S name or any trade or assumed name 2,207
used by him THE INDIVIDUAL in his THE INDIVIDUAL'S profession or 2,209
business to any opinion, review report, compilation report, 2,210
examination report, or agreed-upon procedures report on a 2,211
financial statement ATTEST REPORT with any wording indicating 2,212
that he THE INDIVIDUAL is an accountant or auditor, or with any 2,215
wording accompanying or contained in the opinion or ATTEST report 2,216
that indicates that he THE INDIVIDUAL has expert knowledge in 2,219
46
accounting or auditing or expert knowledge regarding compliance 2,220
with conditions established by law or contract, including, but 2,221
not limited to, statutes, ordinances, regulations, grants, loans, 2,222
and appropriations, unless he THE INDIVIDUAL holds a live AN OHIO 2,224
permit issued under section 4701.10 of the Revised Code; provided 2,226
that. HOWEVER, this division does not prohibit any officer, 2,228
employee, partner, or principal of any organization from affixing 2,229
his THE OFFICER'S, EMPLOYEE'S, PARTNER'S, OR PRINCIPAL'S 2,230
signature to any statement or report in reference to the 2,231
financial affairs of that organization with any wording 2,232
designating the position, title, or office that he THE INDIVIDUAL 2,233
holds in that organization; and provided that this. THIS 2,234
division ALSO does not prohibit any act of a public official or 2,236
public employee in the performance of his THE PUBLIC OFFICIAL'S 2,237
OR PUBLIC EMPLOYEE'S duties. 2,238
(H)(E) No person shall sign, affix, or associate the name 2,240
of a partnership, limited liability company, professional 2,242
association, corporation-for-profit, or other legal entity 2,243
BUSINESS ORGANIZATION not addressed in another division of this 2,245
section to any opinion, review report, compilation report, 2,246
examination report, or agreed-upon procedures report on a 2,247
financial statement ATTEST REPORT with any wording accompanying 2,248
or contained in the opinion or ATTEST report that indicates that 2,249
the partnership, limited liability company, professional 2,251
association, corporation-for-profit, or other legal entity 2,252
BUSINESS ORGANIZATION is composed of or employs accountants or 2,255
auditors or persons having expert knowledge in accounting or
auditing or expert knowledge regarding compliance with conditions 2,256
established by law or contract, including, but not limited to, 2,257
statutes, ordinances, regulations, grants, loans, and 2,258
appropriations, unless the partnership is entitled to designate 2,260
itself as a partnership of certified public accountants under 2,261
division (B) of this section or as a partnership of public 2,262
accountants under division (D) of this section and, if it is 2,264
47
required to be registered, is registered under section 4701.04 of 2,265
the Revised Code or unless the, limited liability company, 2,266
professional association, or corporation-for-profit is entitled 2,267
to designate itself as a limited liability company, professional 2,269
association, or corporation-for-profit of certified public 2,270
accountants or public accountants under division (F) of this 2,271
section and, if it is required to be registered, OR OTHER
BUSINESS ORGANIZATION is A registered under section 4701.04 of 2,273
the Revised Code FIRM.
(I)(F) No person INDIVIDUAL WHO DOES not holding a live 2,277
HOLD AN OHIO permit under section 4701.10 of the Revised Code 2,278
shall hold himself SELF out to the public as an "accountant" or 2,280
"auditor" by use of either or both of those words on any sign, 2,281
card, or letterhead, in any advertisement or directory, or 2,282
otherwise, without indicating thereon or therein ON THE SIGN, 2,283
CARD, OR LETTERHEAD, IN THE ADVERTISEMENT OR DIRECTORY, OR IN THE
OTHER MANNER OF HOLDING OUT that the person does not hold a live 2,285
AN OHIO permit; provided that. AN INDIVIDUAL WHO HOLDS A CPA 2,286
CERTIFICATE AND AN OHIO PERMIT MAY HOLD SELF OUT TO THE PUBLIC AS 2,287
AN "ACCOUNTANT" OR "AUDITOR." HOWEVER, this division does not 2,290
prohibit any officer, employee, partner, or principal of any 2,291
organization from describing himself SELF by the position, title, 2,293
or office he THE PERSON holds in that organization; and provided 2,294
that this. THIS division ALSO does not prohibit any act of a 2,296
public official or public employee in the performance of his THE 2,297
PUBLIC OFFICIAL'S OR PUBLIC EMPLOYEE'S duties. 2,298
(J)(G) No partnership that is not entitled to designate 2,300
itself as a partnership of certified public accountants under 2,302
division (B) of this section or as a partnership of public 2,303
accountants under division (D) of this section, and no limited 2,304
liability company, professional association, 2,306
corporation-for-profit, LIMITED LIABILITY COMPANY, or other legal 2,307
entity BUSINESS ORGANIZATION not addressed in another division of 2,308
this section that is not entitled to assume or use the title 2,309
48
"certified public accountant" or "public accountant" under 2,310
division (F)(C) of this section, shall hold itself out to the 2,313
public as a firm, partnership, limited liability company, 2,314
professional association, corporation-for-profit, LIMITED 2,315
LIABILITY COMPANY, or other legal entity BUSINESS ORGANIZATION 2,316
not addressed in another division of this section of AS BEING 2,318
COMPOSED OF OR EMPLOYING "accountants" or "auditors" by use of 2,320
either or both of those words on any sign, card, or letterhead, 2,321
in any advertisement or directory, or otherwise, without 2,322
indicating thereon or therein ON THE SIGN, CARD, OR LETTERHEAD, 2,323
IN THE ADVERTISEMENT OR DIRECTORY, OR IN THE OTHER MANNER OF
HOLDING OUT that the partnership, limited liability company, 2,326
professional association, corporation-for-profit, LIMITED 2,327
LIABILITY COMPANY, or other legal entity BUSINESS ORGANIZATION is 2,328
not A REGISTERED FIRM AND IS NOT permitted by law to practice as 2,330
a partnership, limited liability company, professional 2,331
association, corporation-for-profit, or other legal entity of 2,332
public accountants PUBLIC ACCOUNTING FIRM.
(K)(H) No person shall assume or use the title or 2,334
designation "certified public accountant" or "public accountant" 2,335
in conjunction with names indicating or implying that there is a 2,336
partnership or in conjunction with the designation "and Company" 2,337
or "and Co." or a similar designation if, in any such case OF 2,339
THOSE CASES, there is in fact no bona fide partnership entitled 2,340
to designate itself as a partnership of certified public 2,341
accountants under division (B)(C)(1)(a) of this section or as a 2,342
partnership of public accountants under division (D)(C)(1)(b) of 2,344
this section; provided that. HOWEVER, a sole proprietor or 2,347
partnership that was on October 22, 1959, or a corporation that 2,348
on or after September 30, 1974, has been, lawfully using a title 2,349
or designation of those types in conjunction with names or 2,350
designations of those types, may continue to do so if he or it
THE SOLE PROPRIETOR, PARTNERSHIP, OR CORPORATION otherwise 2,351
complies with this section. 2,352
49
(I)(1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS 2,354
CHAPTER, AN INDIVIDUAL WHOSE PRINCIPAL PLACE OF BUSINESS IS NOT 2,355
IN THIS STATE AND WHO HOLDS A VALID FOREIGN CERTIFICATE AS A 2,357
CERTIFIED PUBLIC ACCOUNTANT SHALL BE PRESUMED TO HAVE 2,358
QUALIFICATIONS SUBSTANTIALLY EQUIVALENT TO THIS STATE'S CPA 2,360
REQUIREMENTS AND SHALL HAVE ALL OF THE PRIVILEGES OF A HOLDER OF 2,361
A CPA CERTIFICATE AND AN OHIO PERMIT WITHOUT THE NEED TO OBTAIN A 2,362
CPA CERTIFICATE AND AN OHIO PERMIT IF THE ACCOUNTANCY BOARD HAS 2,365
FOUND AND HAS SPECIFIED IN ITS RULES ADOPTED PURSUANT TO DIVISION 2,366
(A) OF SECTION 4701.03 OF THE REVISED CODE THAT THE CPA 2,368
REQUIREMENTS OF THE STATE THAT ISSUED THE INDIVIDUAL'S FOREIGN 2,370
CERTIFICATE ARE SUBSTANTIALLY EQUIVALENT TO THIS STATE'S CPA 2,371
REQUIREMENTS.
(2) ANY INDIVIDUAL EXERCISING THE PRIVILEGE AFFORDED UNDER 2,373
DIVISION (I)(1) OF THIS SECTION HEREBY CONSENTS AND IS SUBJECT, 2,375
AS A CONDITION OF THE GRANT OF THE PRIVILEGE, TO ALL OF THE 2,376
FOLLOWING:
(a) THE PERSONAL AND SUBJECT MATTER JURISDICTION OF THE 2,378
ACCOUNTANCY BOARD; 2,379
(b) ALL PRACTICE AND DISCIPLINARY PROVISIONS OF THIS 2,381
CHAPTER AND THE ACCOUNTANCY BOARD'S RULES; 2,382
(c) THE APPOINTMENT OF THE BOARD THAT ISSUED THE 2,384
INDIVIDUAL'S FOREIGN CERTIFICATE AS THE INDIVIDUAL'S AGENT UPON 2,386
WHOM PROCESS MAY BE SERVED IN ANY ACTION OR PROCEEDING BY THE 2,387
ACCOUNTANCY BOARD AGAINST THE INDIVIDUAL. 2,388
(3) THE HOLDER OF A CPA CERTIFICATE AND AN OHIO PERMIT WHO 2,391
OFFERS OR RENDERS ATTEST SERVICES OR USES THE HOLDER'S CPA TITLE 2,393
IN ANOTHER STATE SHALL BE SUBJECT TO DISCIPLINARY ACTION IN THIS 2,394
STATE FOR AN ACT COMMITTED IN THE OTHER STATE FOR WHICH THE 2,396
HOLDER OF A FOREIGN CERTIFICATE ISSUED BY THE OTHER STATE WOULD 2,397
BE SUBJECT TO DISCIPLINE IN THE OTHER STATE. 2,398
(4) THE HOLDER OF A FOREIGN CERTIFICATE WHO OFFERS OR 2,401
RENDERS ATTEST SERVICES OR USES A CPA TITLE OR DESIGNATION IN 2,402
THIS STATE PURSUANT TO THE PRIVILEGE AFFORDED BY DIVISION (I)(1) 2,403
50
OF THIS SECTION SHALL BE SUBJECT TO DISCIPLINARY ACTION IN THIS 2,405
STATE FOR ANY ACT THAT WOULD SUBJECT THE HOLDER OF A CPA 2,406
CERTIFICATE AND AN OHIO PERMIT TO DISCIPLINARY ACTION IN THIS 2,408
STATE.
Sec. 4701.16. (A) After notice and hearing as provided in 2,420
Chapter 119. of the Revised Code, the accountancy board may 2,421
discipline AS DESCRIBED IN DIVISION (B) OF THIS SECTION a 2,422
registrant or certificate holder as specified in division (B) of 2,425
this section PERSON HOLDING AN OHIO PERMIT, AN OHIO REGISTRATION, 2,427
A FIRM REGISTRATION, A CPA CERTIFICATE, OR A PA REGISTRATION OR 2,428
ANY OTHER PERSON WHOSE ACTIVITIES ARE REGULATED BY THE BOARD for 2,431
any one or any combination of the following causes: 2,432
(1) Fraud or deceit in registering as a public accounting 2,434
OBTAINING A firm, REGISTRATION OR in obtaining a CPA certificate 2,437
as a certified public accountant, or in obtaining a permit to 2,438
practice accounting pursuant to sections 4701.02 to 4701.19 of 2,439
the Revised Code, A PA REGISTRATION, AN OHIO PERMIT, OR AN OHIO 2,440
REGISTRATION; 2,441
(2) Dishonesty, fraud, or gross negligence in the practice 2,443
of public accounting; 2,444
(3) Violation of any of the provisions of section 4701.14 2,446
of the Revised Code; 2,447
(4) Violation of a rule of professional conduct 2,449
promulgated by the board under the authority granted by sections 2,450
4701.02 to 4701.22 of the Revised Code THIS CHAPTER; 2,451
(5) Conviction of a felony under the laws of any state or 2,453
of the United States; 2,454
(6) Conviction of any crime, an element of which is 2,456
dishonesty or fraud, under the laws of any state or of the United 2,457
States; 2,458
(7) Cancellation, revocation, suspension, or refusal to 2,460
renew authority to practice as a certified public accountant, a 2,461
public accountant, or a public accounting firm by any other 2,462
state, for any cause other than failure to pay registration fees 2,463
51
in such THAT other state; 2,464
(8) Suspension or revocation of the right to practice 2,466
before any state or federal agency; 2,467
(9) Failure of a certified public accountant or public 2,469
accountant HOLDER OF A CPA CERTIFICATE OR PA REGISTRATION to 2,471
obtain the AN OHIO permit required by section 4701.10 of the 2,473
Revised Code OR AN OHIO REGISTRATION, or THE failure of a public 2,474
accounting firm to register with the board pursuant to section 2,475
4701.04 of the Revised Code OBTAIN A FIRM REGISTRATION; 2,476
(10) Conduct discreditable to the public accounting 2,478
profession OR TO THE HOLDER OF AN OHIO PERMIT, OHIO REGISTRATION, 2,480
OR FOREIGN CERTIFICATE;
(11) FAILURE OF A PUBLIC ACCOUNTING FIRM TO COMPLY WITH 2,482
SECTION 4701.04 OF THE REVISED CODE. 2,483
(B) For any of the reasons specified in division (A) of 2,485
this section, the board may DO ANY OF THE FOLLOWING: 2,486
(1) Revoke or, suspend, OR REFUSE TO RENEW any CPA 2,489
certificate issued under section 4701.06 or 4701.061 of the 2,490
Revised Code OR PA REGISTRATION or any registration granted under 2,492
section 4701.04 or 4701.07 of the Revised Code OHIO PERMIT, OHIO 2,493
REGISTRATION, OR FIRM REGISTRATION;
(2) Revoke, suspend, or refuse to renew any permit issued 2,495
under section 4701.10 of the Revised Code DISQUALIFY A PERSON WHO 2,497
IS NOT A HOLDER OF AN OHIO PERMIT OR A FOREIGN CERTIFICATE FROM 2,499
OWNING AN EQUITY INTEREST IN A PUBLIC ACCOUNTING FIRM OR 2,500
QUALIFIED FIRM;
(3) Publicly censure a registrant REGISTERED FIRM or A 2,502
holder of a CPA certificate, A PA REGISTRATION, AN OHIO PERMIT, 2,507
OR AN OHIO REGISTRATION; 2,508
(4) Levy AGAINST A REGISTERED FIRM OR A HOLDER OF A CPA 2,512
CERTIFICATE, A PA REGISTRATION, AN OHIO PERMIT, OR AN OHIO 2,515
REGISTRATION a penalty OR fine not to exceed one thousand dollars 2,516
for each offense. Any fine shall be reasonable and in relation 2,517
to the severity of the offense. 2,518
52
(5) In the case of violations of division (A)(2) or (4) of 2,520
this section, require completion of remedial continuing education 2,521
programs prescribed by the board in addition to those required by 2,522
section 4701.11 of the Revised Code; 2,523
(6) In the case of violations of division (A)(2) or (4) of 2,525
this section, require the HOLDER OF A CPA certificate holder or 2,527
registrant, PA REGISTRATION, OR FIRM REGISTRATION to submit to a 2,529
quality PEER review by a professional committee designated by the 2,531
board, which committee shall report to the board concerning the 2,532
certificate holder's or registrant's THAT HOLDER'S compliance 2,533
with generally accepted accounting principles or, GENERALLY 2,534
ACCEPTED auditing standards, OR OTHER GENERALLY ACCEPTED 2,536
TECHNICAL STANDARDS;
(7) REVOKE OR SUSPEND THE PRIVILEGES TO OFFER OR RENDER 2,538
ATTEST SERVICES IN THIS STATE OR TO USE A CPA TITLE OR 2,539
DESIGNATION IN THIS STATE OF AN INDIVIDUAL WHO HOLDS A FOREIGN 2,540
CERTIFICATE.
(C) Where IF the board levies a fine against or suspends 2,542
the certificate of a person or registration of a person or firm 2,543
for a violation of division (A)(2) or (4) of this section, it may 2,544
waive all or any portion of the fine or suspension where IF the 2,545
HOLDER OF THE CPA certificate holder or registrant, PA 2,547
REGISTRATION, OR FIRM REGISTRATION complies fully with division 2,548
(B)(5) or (6) of this section. 2,549
Sec. 4701.19. (A) All statements, records, schedules, 2,558
working papers, and memoranda made by a certified public 2,559
accountant or public accountant incident to or in the course of 2,560
professional service to clients by the accountant, except reports 2,561
submitted by a certified public accountant or public accountant 2,562
to a client, shall be and remain the property of the accountant, 2,563
in the absence of an express agreement between the accountant and 2,564
the client to the contrary. No such statement, record, schedule, 2,565
working paper, or memorandum OF THAT NATURE shall be sold, 2,566
transferred, or bequeathed, without the consent of the client or 2,568
53
his THE CLIENT'S personal representative or assignee, to anyone 2,569
ANY PERSON other than one or more surviving partners or new 2,571
partners of the accountant.
(B) The statements, records, schedules, working papers, 2,573
and memoranda made by a certified public accountant or public 2,574
accountant incident to or in the course of performing an audit of 2,575
a public office or private entity, except reports submitted by 2,576
the accountant to the client, are not a public record as defined. 2,578
STATEMENTS, RECORDS, SCHEDULES, WORKING PAPERS, AND MEMORANDA 2,579
THAT ARE SO MADE IN AN AUDIT BY A CERTIFIED PUBLIC ACCOUNTANT OR
PUBLIC ACCOUNTANT AND THAT ARE IN THE POSSESSION OF THE AUDITOR 2,580
OF STATE ALSO ARE NOT A PUBLIC RECORD. AS USED IN THIS DIVISION, 2,581
"PUBLIC RECORD" HAS THE SAME MEANING AS in section 149.43 of the 2,583
Revised Code.
Sec. 4701.29. (A) THE ACCOUNTANCY BOARD MAY INVESTIGATE 2,586
WHETHER A PERSON HAS VIOLATED ANY PROVISION OF THIS CHAPTER OR 2,587
RULE ADOPTED UNDER IT BEFORE COMMENCING A DISCIPLINARY PROCEEDING 2,588
PURSUANT TO SECTION 4701.16 OF THE REVISED CODE OR TAKING LEGAL 2,589
ACTION PURSUANT TO SECTION 4701.18 OF THE REVISED CODE. AN 2,591
INVESTIGATION UNDER THIS SECTION IS NOT SUBJECT TO CHAPTER 119. 2,593
OF THE REVISED CODE. 2,595
THE BOARD MAY APPOINT A COMMITTEE OF BOARD MEMBERS OR STAFF 2,598
EMPLOYED BY THE BOARD TO CONDUCT AN INVESTIGATION.
NOTWITHSTANDING ANY STATUTE OR RULE TO THE CONTRARY, A BOARD 2,599
MEMBER WHO PARTICIPATES IN AN INVESTIGATION MAY PARTICIPATE 2,601
ACTIVELY IN ANY HEARING OR PROCEEDING TO THE SAME EXTENT AS A 2,602
BOARD MEMBER WHO DID NOT PARTICIPATE IN THE INVESTIGATION. 2,603
(B) DURING AN INVESTIGATION, THE BOARD MAY ADMINISTER 2,606
OATHS, ORDER THE TAKING OF DEPOSITIONS, ISSUE SUBPOENAS, COMPEL 2,607
THE ATTENDANCE AND TESTIMONY OF A PERSON AT A DEPOSITION, AND 2,608
COMPEL THE PRODUCTION OF ANY FORM OF DOCUMENTARY EVIDENCE OR 2,609
RECORD. SUBPOENAS AND ORDERS TO COMPEL UNDER THIS SECTION MAY BE 2,610
SERVED BY A DESIGNEE OF THE BOARD OR BY CERTIFIED MAIL, RETURN 2,611
RECEIPT REQUESTED, TO THE RESIDENCE OR PLACE OF BUSINESS OF THE 2,613
54
INDIVIDUAL, PROFESSIONAL ASSOCIATION, FIRM, CORPORATION,
PARTNERSHIP, SOLE PROPRIETORSHIP, LIMITED LIABILITY COMPANY, OR 2,615
OTHER BUSINESS ORGANIZATION NAMED IN THE SUBPOENA OR ORDER. 2,617
(C)(1) ANY WITNESS WHO APPEARS IN RESPONSE TO A SUBPOENA 2,620
OF THE BOARD MAY REQUEST, AND SHALL RECEIVE WITHIN A REASONABLE 2,621
TIME AFTER MAKING THE REQUEST, THE FEES AND MILEAGE PROVIDED FOR 2,622
WITNESSES IN CIVIL CASES IN THE COURTS OF COMMON PLEAS IN THIS 2,623
STATE.
(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOENA OR ORDER 2,625
ISSUED BY THE BOARD UNDER THIS SECTION, THE BOARD MAY APPLY TO 2,627
THE FRANKLIN COUNTY COURT OF COMMON PLEAS FOR AN ORDER COMPELLING 2,628
COMPLIANCE WITH THE BOARD'S SUBPOENA OR ORDER. UPON APPLICATION 2,629
BY THE BOARD AND UPON EVIDENCE OF THE PERSON'S FAILURE TO COMPLY, 2,630
THE COURT SHALL COMPEL THE APPEARANCE OF THE PERSONS OR THE 2,631
PRODUCTION OF THE DOCUMENTS NAMED IN THE BOARD'S SUBPOENA OR 2,632
ORDER IN ACCORDANCE WITH THE RULES OF CIVIL PROCEDURE. THE COURT 2,635
ALSO MAY ISSUE ANY CONTEMPT CITATION AND SANCTION THE COURT DEEMS 2,636
APPROPRIATE. 2,637
(D) THE INVESTIGATIVE PROCEEDINGS OF THE BOARD UNDER THIS 2,640
SECTION ARE NOT A PUBLIC RECORD UNDER SECTION 149.43 OF THE 2,641
REVISED CODE, ARE CONFIDENTIAL, AND ARE NOT SUBJECT TO DISCOVERY 2,642
IN ANY CIVIL OR ADMINISTRATIVE ACTION OR PROCEEDING. 2,643
Section 2. That existing sections 1111.01, 2925.01, 2,645
4701.01, 4701.04, 4701.06, 4701.061, 4701.07, 4701.10, 4701.11, 2,646
4701.12, 4701.13, 4701.14, 4701.16, and 4701.19 of the Revised 2,648
Code are hereby repealed. 2,649
Section 3. Section 2925.01 of the Revised Code is 2,651
presented in this act as a composite of the section as amended by 2,652
both Am. Sub. S.B. 66 and Am. Sub. S.B. 117 of the 122nd General 2,654
Assembly, with the new language of neither of the acts shown in 2,655
capital letters. Section 4701.16 of the Revised Code is 2,657
presented in this act as a composite of the section as amended by 2,658
both Am. Sub. S.B. 165 and Am. S.B. 316 of the 119th General 2,659
Assembly, with the new language of neither of the acts shown in 2,661
55
capital letters. This is in recognition of the principle stated 2,662
in division (B) of section 1.52 of the Revised Code that such 2,663
amendments are to be harmonized where not substantively 2,664
irreconcilable and constitutes a legislative finding that such is 2,665
the resulting version in effect prior to the effective date of 2,666
this act.