CORRECTED VERSION As Passed by the House 0/2
122nd General Assembly 0/5
Regular Session Sub. S. B. No. 200 0/6
1997-1998 0/7
SENATORS CUPP-WATTS-HERINGTON-HOTTINGER-MUMPER-CARNES- 0/9
BLESSING-FINAN-SUHADOLNIK-REPRESENTATIVES 0/10
BUCHY-KASPUTIS-CALLENDER-SALERNO-CORBIN-REID- 0/11
GRENDELL-PERZ-BENDER-WILLIAMS- WILLAMOWSKI-MOTTL-TIBERI 0/13
_________________________________________________________________ 0/14
A B I L L
To amend sections 1111.01, 2925.01, 4701.01, 0/16
4701.04, 4701.06, 4701.061, 4701.07, 4701.10, 0/17
4701.11, 4701.12, 4701.13, 4701.14, 4701.16, and
4701.19 and to enact section 4701.29 of the 19
Revised Code to permit certain persons who do not 20
hold a certificate or registration to practice as
a certified public accountant or public 21
accountant to acquire an ownership interest in 22
public accounting firms, to add a statutory 23
definition of the "practice of public accounting"
and modify or add other definitions in the 24
Accountancy Board Law, to expand the discipline 26
that may be imposed for infractions of that law,
and to make other related changes in that law. 27
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 29
Section 1. That sections 1111.01, 2925.01, 4701.01, 31
4701.04, 4701.06, 4701.061, 4701.07, 4701.10, 4701.11, 4701.12, 33
4701.13, 4701.14, 4701.16, and 4701.19 be amended and section 35
4701.29 of the Revised Code be enacted to read as follows: 37
Sec. 1111.01. As used in this chapter: 46
(A) "Charitable trust" means a charitable remainder 48
annuity trust as defined in section 664(d) of the Internal 49
Revenue Code, a charitable remainder unitrust as defined in 50
2
section 664(d) of the Internal Revenue Code, a charitable lead or 51
other split interest trust subject to the governing instrument 52
requirements of section 508(e) of the Internal Revenue Code, a 53
pooled income fund as defined in section 642(c) of the Internal
Revenue Code, a trust that is a private foundation as defined in 54
section 509 of the Internal Revenue Code, or a trust of which 55
each beneficiary is a charity. 56
For purposes of this division and division (B) of this 58
section, "Internal Revenue Code" means the "Internal Revenue Code 59
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 60
(B) "Charity" means a state university as defined in 62
section 3345.011 of the Revised Code, a community college as 64
defined in section 3354.01 of the Revised Code, a technical
college as defined in section 3357.01 of the Revised Code, a 65
state community college as defined in section 3358.01 of the 66
Revised Code, a private college or university that possesses a 67
certificate of authorization issued by the Ohio board of regents 68
pursuant to Chapter 1713. of the Revised Code, a trust or 69
organization exempt from taxation under section 501(c)(3) or 70
section 501(c)(13) of the Internal Revenue Code, or a 72
corporation, trust, or organization described in section 73
170(c)(2) of the Internal Revenue Code. The term "charities" 74
means more than one trust or organization that is a charity.
(C) "Collective investment fund" means a fund established 76
by a trust company or an affiliate of a trust company for the 77
collective investment of assets held in a fiduciary capacity, 78
either alone or with one or more cofiduciaries, by the 79
establishing trust company and its affiliates.
(D) "Fiduciary investment company" means a corporation 81
that is both of the following: 82
(1) An investment company; 84
(2) Incorporated, owned, and operated in accordance with 86
rules adopted by the superintendent of financial institutions for 87
the investment of funds held by trust companies in a fiduciary 88
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capacity and for true fiduciary purposes, either alone or with 89
one or more cofiduciaries.
(E) "Instrument" includes any will, declaration of trust, 91
agreement of trust, agency, or custodianship, or court order 92
creating a fiduciary relationship. 93
(F) "Investment company" means any investment company as 95
defined in section 3 and registered under section 8 of the 96
"Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C.A. 80a-3 98
and 80a-8.
(G) "Trust business" means accepting and executing trusts 100
of property, serving as a trustee, executor, administrator, 101
guardian, receiver, or conservator, and providing fiduciary 102
services as a business. "Trust business" does not include any of 103
the following:
(1) Any natural person acting as a trustee, executor, 105
administrator, guardian, receiver, or conservator, pursuant to 107
appointment by a court of competent jurisdiction;
(2) Any natural person serving as a trustee who does not 110
hold self out to the public as willing to act as a trustee for
hire. For purposes of division (G) of this section, the 112
solicitation or advertisement of legal or accounting services by 113
a person licensed in this state as an attorney or a person 114
holding a live AN OHIO permit to practice public accounting 115
issued under division (A) of section 4701.10 of the Revised Code 116
shall not be considered to be the act of holding self out to the 117
public as willing to act as a trustee for hire. 118
(3) A charity, an officer or employee of a charity, or a 121
person affiliated with a charity, serving as trustee of a 122
charitable trust of which the charity, or another charity with a
similar purpose, is a beneficiary; 123
(4) Other fiduciary activities the superintendent 125
determines are not undertaken as a business. 126
Sec. 2925.01. As used in this chapter: 135
(A) "Administer," "controlled substance," "dispense," 137
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"distribute," "hypodermic," "manufacturer," "official written 139
order," "person," "pharmacist," "pharmacy," "sale," "schedule I," 141
"schedule II," "schedule III," "schedule IV," "schedule V," and 142
"wholesaler" have the same meanings as in section 3719.01 of the 143
Revised Code.
(B) "Drug dependent person" and "drug of abuse" have the 145
same meanings as in section 3719.011 of the Revised Code. 146
(C) "Drug," "dangerous drug," "licensed health 148
professional authorized to prescribe drugs," and "prescription" 150
have the same meanings as in section 4729.01 of the Revised Code. 151
(D) "Bulk amount" of a controlled substance means any of 153
the following: 154
(1) For any compound, mixture, preparation, or substance 156
included in schedule I, schedule II, or schedule III, with the 158
exception of marihuana, cocaine, L.S.D., heroin, and hashish and
except as provided in division (D)(2) or (5) of this section, 160
whichever of the following is applicable:
(a) An amount equal to or exceeding ten grams or 162
twenty-five unit doses of a compound, mixture, preparation, or 163
substance that is or contains any amount of a schedule I opiate 164
or opium derivative; 165
(b) An amount equal to or exceeding ten grams of a 168
compound, mixture, preparation, or substance that is or contains 169
any amount of raw or gum opium; 170
(c) An amount equal to or exceeding thirty grams or ten 173
unit doses of a compound, mixture, preparation, or substance that 174
is or contains any amount of a schedule I hallucinogen other than 175
tetrahydrocannabinol or lysergic acid amide, or a schedule I 178
stimulant or depressant; 179
(d) An amount equal to or exceeding twenty grams or five 182
times the maximum daily dose in the usual dose range specified in 183
a standard pharmaceutical reference manual of a compound, 184
mixture, preparation, or substance that is or contains any amount 185
of a schedule II opiate or opium derivative; 186
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(e) An amount equal to or exceeding five grams or ten unit 188
doses of a compound, mixture, preparation, or substance that is 189
or contains any amount of phencyclidine; 190
(f) An amount equal to or exceeding one hundred twenty 192
grams or thirty times the maximum daily dose in the usual dose 193
range specified in a standard pharmaceutical reference manual of 194
a compound, mixture, preparation, or substance that is or 195
contains any amount of a schedule II stimulant that is in a final 196
dosage form manufactured by a person authorized by the "Federal 197
Food, Drug, and Cosmetic Act," 52 Stat. 1040 (1938), 21 U.S.C.A. 199
301, as amended, and the federal drug abuse control laws, as 200
defined in section 3719.01 of the Revised Code, that is or
contains any amount of a schedule II depressant substance or a 202
schedule II hallucinogenic substance;
(g) An amount equal to or exceeding three grams of a 205
compound, mixture, preparation, or substance that is or contains 206
any amount of a schedule II stimulant, or any of its salts or 207
isomers, that is not in a final dosage form manufactured by a 208
person authorized by the Federal Food, Drug, and Cosmetic Act and 209
the federal drug abuse control laws. 210
(2) An amount equal to or exceeding one hundred twenty 213
grams or thirty times the maximum daily dose in the usual dose 214
range specified in a standard pharmaceutical reference manual of 216
a compound, mixture, preparation, or substance that is or 218
contains any amount of a schedule III or IV substance other than 220
an anabolic steroid or a schedule III opiate or opium derivative; 221
(3) An amount equal to or exceeding twenty grams or five 223
times the maximum daily dose in the usual dose range specified in 224
a standard pharmaceutical reference manual of a compound, 225
mixture, preparation, or substance that is or contains any amount 227
of a schedule III opiate or opium derivative;
(4) An amount equal to or exceeding two hundred fifty 229
milliliters or two hundred fifty grams of a compound, mixture, 230
preparation, or substance that is or contains any amount of a 231
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schedule V substance; 232
(5) An amount equal to or exceeding two hundred solid 235
dosage units, sixteen grams, or sixteen milliliters of a 236
compound, mixture, preparation, or substance that is or contains 237
any amount of a schedule III anabolic steroid. 238
(E) "Unit dose" means an amount or unit of a compound, 240
mixture, or preparation containing a controlled substance that is 241
separately identifiable and in a form that indicates that it is 243
the amount or unit by which the controlled substance is 244
separately administered to or taken by an individual. 245
(F) "Cultivate" includes planting, watering, fertilizing, 247
or tilling. 248
(G) "Drug abuse offense" means any of the following: 250
(1) A violation of division (A) of section 2913.02 that 252
constitutes theft of drugs, or a violation of section 2925.02, 253
2925.03, 2925.04, 2925.05, 2925.06, 2925.11, 2925.12, 2925.13, 254
2925.22, 2925.23, 2925.31, 2925.32, 2925.36, or 2925.37 of the 256
Revised Code;
(2) A violation of an existing or former law of this or 258
any other state or of the United States that is substantially 259
equivalent to any section listed in division (G)(1) of this 260
section; 261
(3) An offense under an existing or former law of this or 263
any other state, or of the United States, of which planting, 264
cultivating, harvesting, processing, making, manufacturing, 265
producing, shipping, transporting, delivering, acquiring, 266
possessing, storing, distributing, dispensing, selling, inducing 267
another to use, administering to another, using, or otherwise 268
dealing with a controlled substance is an element; 269
(4) A conspiracy to commit, attempt to commit, or 271
complicity in committing or attempting to commit any offense 272
under division (G)(1), (2), or (3) of this section. 273
(H) "Felony drug abuse offense" means any drug abuse 275
offense that would constitute a felony under the laws of this 276
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state, any other state, or the United States. 277
(I) "Harmful intoxicant" does not include beer or 279
intoxicating liquor but means any compound, mixture, preparation, 281
or substance the gas, fumes, or vapor of which when inhaled can 282
induce intoxication, excitement, giddiness, irrational behavior, 283
depression, stupefaction, paralysis, unconsciousness, 284
asphyxiation, or other harmful physiological effects, and 285
includes, but is not limited to, any of the following: 286
(1) Any volatile organic solvent, plastic cement, model 288
cement, fingernail polish remover, lacquer thinner, cleaning 289
fluid, gasoline, or other preparation containing a volatile 290
organic solvent; 291
(2) Any aerosol propellant; 293
(3) Any fluorocarbon refrigerant; 295
(4) Any anesthetic gas. 297
(J) "Manufacture" means to plant, cultivate, harvest, 299
process, make, prepare, or otherwise engage in any part of the 300
production of a drug, by propagation, extraction, chemical 301
synthesis, or compounding, or any combination of the same, and 302
includes packaging, repackaging, labeling, and other activities 303
incident to production. 304
(K) "Possess" or "possession" means having control over a 306
thing or substance, but may not be inferred solely from mere 307
access to the thing or substance through ownership or occupation 308
of the premises upon which the thing or substance is found. 309
(L) "Sample drug" means a drug or pharmaceutical 311
preparation that would be hazardous to health or safety if used 312
without the supervision of a licensed health professional 314
authorized to prescribe drugs, or a drug of abuse, and that, at 315
one time, had been placed in a container plainly marked as a 316
sample by a manufacturer.
(M) "Standard pharmaceutical reference manual" means the 318
current edition, with cumulative changes if any, of any of the 319
following reference works: 320
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(1) "The National Formulary"; 322
(2) "The United States Pharmacopeia," prepared by 324
authority of the United States Pharmacopeial Convention, Inc.; 325
(3) Other standard references that are approved by the 327
state board of pharmacy. 328
(N) "Juvenile" means a person under eighteen years of age. 330
(O) "Counterfeit controlled substance" means any of the 332
following: 333
(1) Any drug that bears, or whose container or label 335
bears, a trademark, trade name, or other identifying mark used 336
without authorization of the owner of rights to that trademark, 337
trade name, or identifying mark; 338
(2) Any unmarked or unlabeled substance that is 340
represented to be a controlled substance manufactured, processed, 341
packed, or distributed by a person other than the person that 342
manufactured, processed, packed, or distributed it; 343
(3) Any substance that is represented to be a controlled 345
substance but is not a controlled substance or is a different 346
controlled substance; 347
(4) Any substance other than a controlled substance that a 349
reasonable person would believe to be a controlled substance 350
because of its similarity in shape, size, and color, or its 351
markings, labeling, packaging, distribution, or the price for 352
which it is sold or offered for sale. 353
(P) An offense is "committed in the vicinity of a school" 355
if the offender commits the offense on school premises, in a 356
school building, or within one thousand feet of the boundaries of 357
any school premises.
(Q) "School" means any school operated by a board of 359
education or any school for which the state board of education 360
prescribes minimum standards under section 3301.07 of the Revised 361
Code, whether or not any instruction, extracurricular activities, 362
or training provided by the school is being conducted at the time 363
a criminal offense is committed. 364
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(R) "School premises" means either of the following: 366
(1) The parcel of real property on which any school is 368
situated, whether or not any instruction, extracurricular 369
activities, or training provided by the school is being conducted 370
on the premises at the time a criminal offense is committed; 371
(2) Any other parcel of real property that is owned or 373
leased by a board of education of a school or the governing body 374
of a school for which the state board of education prescribes 375
minimum standards under section 3301.07 of the Revised Code and 376
on which some of the instruction, extracurricular activities, or 377
training of the school is conducted, whether or not any 378
instruction, extracurricular activities, or training provided by 379
the school is being conducted on the parcel of real property at 380
the time a criminal offense is committed. 381
(S) "School building" means any building in which any of 383
the instruction, extracurricular activities, or training provided 384
by a school is conducted, whether or not any instruction, 385
extracurricular activities, or training provided by the school is 386
being conducted in the school building at the time a criminal 387
offense is committed. 388
(T) "Disciplinary counsel" means the disciplinary counsel 390
appointed by the board of commissioners on grievances and 391
discipline of the supreme court under the Rules for the 392
Government of the Bar of Ohio. 393
(U) "Certified grievance committee" means a duly 395
constituted and organized committee of the Ohio state bar 396
association or of one or more local bar associations of the state 397
of Ohio that complies with the criteria set forth in Rule V, 398
section 6 of the Rules for the Government of the Bar of Ohio. 399
(V) "Professional license" means any license, permit, 401
certificate, registration, qualification, admission, temporary 402
license, temporary permit, temporary certificate, or temporary 403
registration that is described in divisions (W)(1) to (35) of 404
this section and that qualifies a person as a professionally 405
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licensed person. 406
(W) "Professionally licensed person" means any of the 408
following: 409
(1) A person who has obtained a license as a manufacturer 411
of controlled substances or a wholesaler of controlled substances 412
under Chapter 3719. of the Revised Code; 413
(2) A person who has received a certificate or temporary 415
certificate as a certified public accountant or who has 416
registered as a public accountant under Chapter 4701. of the 417
Revised Code and who holds a live AN OHIO permit issued under 419
that chapter; 420
(3) A person who holds a certificate of qualification to 422
practice architecture issued or renewed and registered under 423
Chapter 4703. of the Revised Code; 424
(4) A person who is registered as a landscape architect 426
under Chapter 4703. of the Revised Code or who holds a permit as 427
a landscape architect issued under that chapter; 428
(5) A person licensed as an auctioneer or apprentice 430
auctioneer or licensed to operate an auction company under 431
Chapter 4707. of the Revised Code; 432
(6) A person who has been issued a certificate of 434
registration as a registered barber under Chapter 4709. of the 435
Revised Code; 436
(7) A person licensed and regulated to engage in the 438
business of a debt pooling company by a legislative authority, 439
under authority of Chapter 4710. of the Revised Code; 440
(8) A person who has been issued a cosmetologist's 442
license, manicurist's license, esthetician's license, managing 443
cosmetologist's license, managing manicurist's license, managing 444
esthetician's license, cosmetology instructor's license, 445
manicurist instructor's license, esthetician instructor's 446
license, or tanning facility permit under Chapter 4713. of the 447
Revised Code; 448
(9) A person who has been issued a license to practice 450
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dentistry, a general anesthesia permit, a conscious intravenous 451
sedation permit, a limited resident's license, a limited teaching 452
license, a dental hygienist's license, or a dental hygienist's 453
teacher's certificate under Chapter 4715. of the Revised Code; 454
(10) A person who has been issued an embalmer's license, a 456
funeral director's license, a funeral home license, or a 457
crematory license, or who has been registered for an embalmer's 458
or funeral director's apprenticeship under Chapter 4717. of the 459
Revised Code;
(11) A person who has been licensed as a registered nurse 461
or practical nurse, or who has been issued a certificate for the 462
practice of nurse-midwifery under Chapter 4723. of the Revised 463
Code; 464
(12) A person who has been licensed to practice optometry 466
or to engage in optical dispensing under Chapter 4725. of the 467
Revised Code; 468
(13) A person licensed to act as a pawnbroker under 470
Chapter 4727. of the Revised Code; 471
(14) A person licensed to act as a precious metals dealer 473
under Chapter 4728. of the Revised Code; 474
(15) A person licensed as a pharmacist, a pharmacy intern, 477
a wholesale distributor of dangerous drugs, or a terminal
distributor of dangerous drugs under Chapter 4729. of the Revised 478
Code; 479
(16) A person who is authorized to practice as a physician 481
assistant under Chapter 4730. of the Revised Code; 482
(17) A person who has been issued a certificate to 484
practice medicine and surgery, osteopathic medicine and surgery, 485
a limited branch of medicine or surgery, or podiatry under 486
Chapter 4731. of the Revised Code; 487
(18) A person licensed as a psychologist or school 489
psychologist under Chapter 4732. of the Revised Code; 490
(19) A person registered to practice the profession of 492
engineering or surveying under Chapter 4733. of the Revised Code; 493
12
(20) A person who has been issued a license to practice 496
chiropractic under Chapter 4734. of the Revised Code;
(21) A person licensed to act as a real estate broker, 498
real estate salesperson, limited real estate broker, or limited 499
real estate salesperson under Chapter 4735. of the Revised Code; 500
(22) A person registered as a registered sanitarian under 502
Chapter 4736. of the Revised Code; 503
(23) A person licensed to operate or maintain a junkyard 505
under Chapter 4737. of the Revised Code; 506
(24) A person who has been issued a motor vehicle salvage 508
dealer's license under Chapter 4738. of the Revised Code; 509
(25) A person who has been licensed to act as a steam 511
engineer under Chapter 4739. of the Revised Code; 512
(26) A person who has been issued a license or temporary 514
permit to practice veterinary medicine or any of its branches, or 515
who is registered as a graduate animal technician under Chapter 516
4741. of the Revised Code; 517
(27) A person who has been issued a hearing aid dealer's 519
or fitter's license or trainee permit under Chapter 4747. of the 520
Revised Code; 521
(28) A person who has been issued a class A, class B, or 523
class C license or who has been registered as an investigator or 524
security guard employee under Chapter 4749. of the Revised Code; 525
(29) A person licensed and registered to practice as a 527
nursing home administrator under Chapter 4751. of the Revised 528
Code; 529
(30) A person licensed to practice as a speech-language 531
pathologist or audiologist under Chapter 4753. of the Revised 533
Code;
(31) A person issued a license as an occupational 535
therapist or physical therapist under Chapter 4755. of the 536
Revised Code; 537
(32) A person who is licensed as a professional clinical 539
counselor or professional counselor, licensed as a social worker 540
13
or independent social worker, or registered as a social work 541
assistant under Chapter 4757. of the Revised Code; 542
(33) A person issued a license to practice dietetics under 544
Chapter 4759. of the Revised Code; 545
(34) A person who has been issued a license or limited 548
permit to practice respiratory therapy under Chapter 4761. of the 549
Revised Code; 550
(35) A person who has been issued a real estate appraiser 552
certificate under Chapter 4763. of the Revised Code. 553
(X) "Cocaine" means any of the following: 555
(1) A cocaine salt, isomer, or derivative, a salt of a 557
cocaine isomer or derivative, or the base form of cocaine; 558
(2) Coca leaves or a salt, compound, derivative, or 560
preparation of coca leaves, including ecgonine, a salt, isomer, 561
or derivative of ecgonine, or a salt of an isomer or derivative 562
of ecgonine; 563
(3) A salt, compound, derivative, or preparation of a 565
substance identified in division (X)(1) or (2) of this section 567
that is chemically equivalent to or identical with any of those 568
substances, except that the substances shall not include 569
decocainized coca leaves or extraction of coca leaves if the 570
extractions do not contain cocaine or ecgonine. 571
(Y) "L.S.D." means lysergic acid diethylamide. 574
(Z) "Hashish" means the resin or a preparation of the 576
resin contained in marihuana, whether in solid form or in a 577
liquid concentrate, liquid extract, or liquid distillate form. 578
(AA) "Marihuana" has the same meaning as in section 580
3719.01 of the Revised Code, except that it does not include 582
hashish.
(BB) An offense is "committed in the vicinity of a 584
juvenile" if the offender commits the offense within one hundred 586
feet of a juvenile or within the view of a juvenile, regardless 587
of whether the offender knows the age of the juvenile, whether 588
the offender knows the offense is being committed within one 589
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hundred feet of or within view of the juvenile, or whether the 590
juvenile actually views the commission of the offense.
(CC) "Presumption for a prison term" or "presumption that 592
a prison term shall be imposed" means a presumption, as described 593
in division (D) of section 2929.13 of the Revised Code, that a 594
prison term is a necessary sanction for a felony in order to 595
comply with the purposes and principles of sentencing under 596
section 2929.11 of the Revised Code.
(DD) "Major drug offender" has the same meaning as in 598
section 2929.01 of the Revised Code. 599
(EE) "Minor drug possession offense" means either of the 601
following: 602
(1) A violation of section 2925.11 of the Revised Code as 604
it existed prior to July 1, 1996; 605
(2) A violation of section 2925.11 of the Revised Code as 607
it exists on and after July 1, 1996, that is a misdemeanor or a 608
felony of the fifth degree. 609
(FF) "Mandatory prison term" has the same meaning as in 612
section 2929.01 of the Revised Code.
(GG) "Crack cocaine" means a compound, mixture, 614
preparation, or substance that is or contains any amount of 615
cocaine that is analytically identified as the base form of 616
cocaine or that is in a form that resembles rocks or pebbles 617
generally intended for individual use.
Sec. 4701.01. As used in this chapter: 626
(A) "Live permit" means a permit issued under section 628
4701.10 of the Revised Code that is not suspended or revoked 629
PRACTICE OF PUBLIC ACCOUNTING" MEANS PERFORMING OR OFFERING TO 631
PERFORM ANY ENGAGEMENT THAT WILL RESULT IN THE ISSUANCE OF AN 632
ATTEST REPORT AND, WITH RESPECT TO A PERSON WHO HOLDS A CPA 633
CERTIFICATE, PA REGISTRATION, FOREIGN CERTIFICATE, OR FIRM 635
REGISTRATION, ANY OTHER SERVICES INVOLVING THE USE OF ACCOUNTING 636
OR AUDITING SKILLS AS ESTABLISHED BY RULES ADOPTED BY THE 637
ACCOUNTANCY BOARD.
15
(B) "Public accounting firm" means a sole proprietorship, 639
a partnership, a limited liability company, a professional 640
association, a corporation-for-profit, or any other legal entity 641
BUSINESS ORGANIZATION that is permitted by the accountancy board 643
to engage ENGAGED in the practice of public accounting in this 644
state. 645
(C) "Opinion on a financial statement REPORT" means any 647
opinion ON A FINANCIAL STATEMENT THAT IS expressed in accordance 648
with generally accepted auditing standards as to the fairness of 650
presentation of information AND THAT IS used for guidance in 652
financial transactions or, for accounting, or for assessing the 654
status or performance of commercial and noncommercial 655
enterprises, whether public, private, or governmental. 656
(D) "Quality PEER review" means a study, appraisal, or 658
review of one or more aspects of the professional work of a 659
public accounting firm that meets the standards and requirements 660
set forth by the accountancy board. 661
(E) "Review report on a financial statement" means either 663
of the following: 664
(1) Any review report ON A FINANCIAL STATEMENT THAT IS 666
issued with respect to any of the following: 668
(a) Interim financial information in accordance with 670
generally accepted auditing standards; 671
(b) The financial information of a nonpublic entity in 673
accordance with statements on standards for accounting and review 674
services; 675
(c) The reliability of another party's written assertion 677
in accordance with statements on standards for attestation 678
engagements. 679
(2) Any other review report ON A FINANCIAL STATEMENT THAT 681
IS NOT DESCRIBED IN DIVISION (E)(1) OF THIS SECTION AND THAT IS 682
issued in accordance with standards promulgated by the American 684
institute of certified public accountants. 685
(F) "Compilation report on a financial statement" means 687
16
any compilation report ON A FINANCIAL STATEMENT THAT IS issued 688
with respect to financial information of a nonpublic entity in 690
accordance with statements on standards for accounting and review 691
services as promulgated by the American institute of certified 692
public accountants.
(G) "Examination report on a financial statement" means 694
any examination report ON A FINANCIAL STATEMENT THAT IS issued 695
with respect to another party's written assertion in accordance 697
with statements on standards for attestation engagements as 698
promulgated by the American institute of certified public 699
accountants.
(H) "Agreed-upon procedures report on a financial 701
statement" means any report THAT IS ON A FINANCIAL STATEMENT AND 702
THAT IS based on agreed-upon procedures issued with respect to 704
another party's written assertion in accordance with statements 705
on standards for attestation engagements as promulgated by the 706
American institute of certified public accountants. 707
(I) "QUALIFIED FIRM" MEANS A SOLE PROPRIETORSHIP, 710
PARTNERSHIP, PROFESSIONAL ASSOCIATION, CORPORATION-FOR-PROFIT, 711
LIMITED LIABILITY COMPANY, OR OTHER BUSINESS ORGANIZATION IN 712
WHICH THE INDIVIDUALS WHO OWN A MAJORITY OF THE BUSINESS 713
ORGANIZATION INTERESTS IN THE BUSINESS ORGANIZATION AND CONTROL 715
THE BUSINESS ORGANIZATION HOLD AN OHIO PERMIT OR A FOREIGN 716
CERTIFICATE. 717
(J) "OWN" MEANS ANY DIRECT OR INDIRECT OWNERSHIP OF AN 720
EQUITY INTEREST IN A PUBLIC ACCOUNTING FIRM OR QUALIFIED FIRM. 721
(K) "CONTROL" OR "CONTROLLED" MEANS THE RIGHT TO EXERCISE 724
THE MAJORITY OF THE VOTING EQUITY INTERESTS IN A PUBLIC 725
ACCOUNTING FIRM OR QUALIFIED FIRM WITH RESPECT TO ANY MATTER. 727
(L) "EQUITY INTEREST" MEANS ANY CAPITAL INTEREST OR PROFIT 730
INTEREST IN A SOLE PROPRIETORSHIP, PARTNERSHIP, PROFESSIONAL 732
ASSOCIATION, CORPORATION-FOR-PROFIT, LIMITED LIABILITY COMPANY, 733
OR OTHER BUSINESS ORGANIZATION.
(M) "OHIO PERMIT" MEANS A PERMIT TO PRACTICE PUBLIC 736
17
ACCOUNTING ISSUED UNDER DIVISION (A) OF SECTION 4701.10 OF THE 738
REVISED CODE THAT IS NOT REVOKED OR SUSPENDED. 739
(N) "OHIO REGISTRATION" MEANS THE REGISTRATION UNDER 742
DIVISION (B) OF SECTION 4701.10 OF THE REVISED CODE OF A HOLDER 743
OF A CPA CERTIFICATE OR PA REGISTRATION WHO IS NOT IN THE 746
PRACTICE OF PUBLIC ACCOUNTING IN THIS STATE.
(O) "FIRM REGISTRATION" OR "REGISTERED FIRM" MEANS 749
REGISTRATION AS A PUBLIC ACCOUNTING FIRM UNDER SECTION 4701.04 OF 750
THE REVISED CODE.
(P) "PA REGISTRATION" MEANS REGISTRATION AS A PUBLIC 753
ACCOUNTANT UNDER SECTION 4701.07 OF THE REVISED CODE THAT IS NOT 754
REVOKED OR SUSPENDED. 755
(Q) "CPA CERTIFICATE" MEANS A CERTIFICATE ISSUED UNDER 758
SECTION 4701.06 OR 4701.061 OF THE REVISED CODE THAT IS NOT 759
REVOKED OR SUSPENDED. 760
(R) "FOREIGN CERTIFICATE" MEANS A CERTIFICATE OF A 763
CERTIFIED PUBLIC ACCOUNTANT ISSUED UNDER THE LAWS OF ANOTHER 764
STATE.
(S) "ATTEST REPORT" MEANS AN OPINION REPORT, REVIEW 767
REPORT, COMPILATION REPORT, EXAMINATION REPORT, AGREED-UPON 768
PROCEDURES REPORT, OR ANY SIMILAR REPORT PREPARED IN ACCORDANCE 769
WITH STANDARDS ESTABLISHED BY THE AMERICAN INSTITUTE OF CERTIFIED 770
PUBLIC ACCOUNTANTS WITH RESPECT TO A FINANCIAL STATEMENT OR OTHER 771
FINANCIAL INFORMATION. 772
(T) "PERSON" MEANS ANY INDIVIDUAL, CORPORATION-FOR-PROFIT, 775
BUSINESS TRUST, ESTATE, PARTNERSHIP, LIMITED LIABILITY COMPANY, 776
PROFESSIONAL ASSOCIATION, OR OTHER BUSINESS ORGANIZATION. 777
(U) Technical terms that define specific public accounting 779
engagements have the same meanings as in the professional 780
standards promulgated by the American institute of certified 781
public accountants. 782
(V)(1) "GOOD MORAL CHARACTER" MEANS THE COMBINATION OF 784
PERSONAL TRAITS OF HONESTY, INTEGRITY, ATTENTION TO DUTY, 785
FORTHRIGHTNESS, AND SELF-RESTRAINT THAT ENABLES A PERSON TO 786
18
DISCHARGE THE DUTIES OF THE ACCOUNTING PROFESSION FULLY AND 787
FAITHFULLY. 788
(2) A HISTORY OF DISHONEST ACTS OR FELONIOUS ACTS OR 790
CONVICTIONS IS SUFFICIENT TO PROVE LACK OF GOOD MORAL CHARACTER 791
IF THAT HISTORY DEMONSTRATES BY A PREPONDERANCE OF THE EVIDENCE 792
THAT THE PERSON LACKS ONE OR MORE OF THE PERSONAL TRAITS REFERRED 793
TO IN DIVISION (V)(1) OF THIS SECTION. A PERSON WHO HAS A FELONY 795
CONVICTION RELATED TO ONE OR MORE OF THOSE PERSONAL TRAITS BEARS 796
THE BURDEN OF ESTABLISHING THE PERSON'S PRESENT GOOD MORAL
CHARACTER, INCLUDING THE PERSON'S FULL AND COMPLETE 797
REHABILITATION SUBSEQUENT TO THE CONVICTION. IF LESS THAN ONE 798
YEAR HAS PASSED SINCE THE COMPLETION OF THE PERSON'S SENTENCE ON 800
A FELONY CONVICTION, INCLUDING ANY PERIOD UNDER A COMMUNITY 801
CONTROL SANCTION OR POST-RELEASE CONTROL, THE BOARD MAY DELAY ANY 802
DETERMINATION OF THE PERSON'S GOOD MORAL CHARACTER UNTIL ONE YEAR 803
HAS PASSED FROM THE TIME OF THE COMPLETION OF THAT SENTENCE. 804
(3) IN DETERMINING WHETHER A PERSON WHO HAS A FELONY 806
CONVICTION HAS MET THE PERSON'S BURDEN OF PROOF DESCRIBED IN 808
DIVISION (V)(2) OF THIS SECTION, THE ACCOUNTANCY BOARD MAY 810
CONSIDER THE FOLLOWING FACTORS:
(a) THE PERSON'S PATH TOWARD PROFESSIONAL LICENSING 812
FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 813
(b) THE NATURE AND DEGREE OF THE PERSON'S ACADEMIC 815
ACHIEVEMENTS; 816
(c) THE NATURE AND DEGREE OF THE PERSON'S EMPLOYMENT 818
FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 819
(d) THE PERSON'S DEGREE OF SELF-SUFFICIENCY FOLLOWING 821
COMPLETION OF THE PERSON'S SENTENCE; 822
(e) THE NATURE AND DEGREE OF THE PERSON'S OTHER 824
RESPONSIBILITIES FOLLOWING COMPLETION OF THE PERSON'S SENTENCE; 825
(f) THE PERSON'S CONVICTION FOR ANY OTHER CRIMINAL OFFENSE 828
SINCE COMPLETION OF THE PERSON'S SENTENCE FOR THE PERSON'S FIRST 829
FELONY CONVICTION;
(g) WHETHER THE PERSON'S APPLICATION OR PRESENTATION 831
19
CONTAINS ANY INCONSISTENCIES OR MISLEADING EXPLANATIONS THAT 832
CONVINCE THE BOARD THAT EITHER THE PERSON OR THE PERSON'S 833
ATTORNEY IS TRYING TO KEEP THE BOARD FROM ACQUIRING A TRUE, 834
THOUGH DAMAGING, REPRESENTATION OF THE PERSON'S CHARACTER; 835
(h) THE NATURE AND CIRCUMSTANCES OF THE DISHONEST ACTS OR 837
FELONIOUS ACTS OR CONVICTIONS OF THE PERSON; 838
(i) ANY OTHER SPECIFICALLY IDENTIFIABLE INFORMATION THAT 840
THE BOARD DETERMINES TO BE RELEVANT TO THE PERSON'S ABILITY TO 841
DISCHARGE THE DUTIES OF THE ACCOUNTING PROFESSION FULLY AND 842
FAITHFULLY. 843
Sec. 4701.04. (A) No public accounting firm shall ENGAGE 853
IN THE practice under the firm's name OF PUBLIC ACCOUNTING in 854
this state unless it registers with the accountancy board and 855
pays a registration fee set by the board. 856
(B) New public PUBLIC accounting firms shall apply for 858
initial registration within ninety days of AFTER formation OR 859
WITHIN NINETY DAYS AFTER THE COMMENCEMENT OF PRACTICING PUBLIC 860
ACCOUNTING IN THIS STATE. All public accounting firms shall 862
renew their registration triennially. All public accounting 863
firms shall submit with their initial and renewal registration 864
applications a ALL OF THE FOLLOWING:
(1) A list of the names, addresses, and certificate OR 867
REGISTRATION numbers of all license holders INDIVIDUALS WHO HOLD 868
AN OHIO PERMIT AND WHO OWN AN EQUITY INTEREST IN THE PUBLIC 869
ACCOUNTING FIRM OR ARE employed by them THE PUBLIC ACCOUNTING 871
FIRM;
(2) A LIST OF THE NAMES AND ADDRESSES OF EACH PERSON WHO 873
DOES NOT HOLD AN OHIO PERMIT OR A FOREIGN CERTIFICATE AND WHO 874
OWNS AN EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM IF THE 877
PERSON'S PRINCIPAL PLACE OF BUSINESS IS LOCATED IN THIS STATE; 879
(3) A STATEMENT THAT THE PUBLIC ACCOUNTING FIRM AND EACH 881
PERSON WHO OWNS AN EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM 882
OR IS EMPLOYED BY THE PUBLIC ACCOUNTING FIRM AND WHO DOES NOT 883
HOLD AN OHIO PERMIT OR A FOREIGN CERTIFICATE IS IN COMPLIANCE 885
20
WITH DIVISIONS (C) AND (D) OF THIS SECTION. 887
(C) A PUBLIC ACCOUNTING FIRM SHALL SATISFY ALL OF THE 890
FOLLOWING REQUIREMENTS IN ORDER TO REGISTER: 891
(1) EXCEPT AS PROVIDED IN DIVISION (C)(5) OF THIS SECTION, 894
EACH PARTNER, SHAREHOLDER, MEMBER, OR OTHER PERSON WHO OWNS AN 895
EQUITY INTEREST IN THE PUBLIC ACCOUNTING FIRM SHALL HOLD AN OHIO 897
PERMIT OR A FOREIGN CERTIFICATE.
(2) THE CHIEF EXECUTIVE OF ANY OFFICE OF A PUBLIC 899
ACCOUNTING FIRM LOCATED IN OR DOING BUSINESS IN THIS STATE SHALL 900
HOLD AN OHIO PERMIT OR A FOREIGN CERTIFICATE. 901
(3) EACH INDIVIDUAL IN A PUBLIC ACCOUNTING FIRM WHO SIGNS 904
ANY ATTEST REPORT ISSUED FROM AN OFFICE OF THE PUBLIC ACCOUNTING
FIRM LOCATED IN THIS STATE SHALL HOLD AN OHIO PERMIT. 907
(4) AN INDIVIDUAL WHO OWNS AN EQUITY INTEREST IN THE 909
PUBLIC ACCOUNTING FIRM OR IS EMPLOYED BY THE PUBLIC ACCOUNTING 910
FIRM AND WHO HOLDS AN OHIO PERMIT OR A FOREIGN CERTIFICATE, OR A 912
QUALIFIED FIRM THAT OWNS AN EQUITY INTEREST IN THE PUBLIC
ACCOUNTING FIRM, SHALL ASSUME ULTIMATE RESPONSIBILITY FOR ANY 914
ATTEST REPORT ISSUED FROM AN OFFICE OF THE PUBLIC ACCOUNTING FIRM 916
LOCATED IN THIS STATE.
(5) ANY PERSON WHO DOES NOT HOLD AN OHIO PERMIT OR A 919
FOREIGN CERTIFICATE AND WHO HOLDS AN EQUITY INTEREST IN THE 922
PUBLIC ACCOUNTING FIRM SHALL SATISFY THE CONDITIONS SET FORTH IN
DIVISION (D) OF THIS SECTION. 923
(6) THE PUBLIC ACCOUNTING FIRM SHALL PROVIDE FOR THE 925
TRANSFER OF THE EQUITY INTEREST OWNED BY PERSONS WHO DO NOT HOLD 926
AN OHIO PERMIT OR A FOREIGN CERTIFICATE TO EITHER THE PUBLIC 927
ACCOUNTING FIRM OR TO ANOTHER PERSON WHO OWNS AN EQUITY INTEREST 930
IN THE FIRM IF A PERSON WHO DOES NOT HOLD AN OHIO PERMIT OR A 932
FOREIGN CERTIFICATE WITHDRAWS FROM OR CEASES TO BE EMPLOYED BY 933
THE PUBLIC ACCOUNTING FIRM. THE PUBLIC ACCOUNTING FIRM MAY MAKE 935
PAYMENTS IN CONNECTION WITH THE PERSON'S WITHDRAWAL FROM THE FIRM 936
TO THAT PERSON OR, IF THAT PERSON IS DECEASED OR DISSOLVED, TO 938
THE PERSON'S ESTATE OR SUCCESSOR IN INTEREST.
21
(D) A PERSON WHO DOES NOT HOLD AN OHIO PERMIT OR A FOREIGN 941
CERTIFICATE MAY OWN AN EQUITY INTEREST IN A PUBLIC ACCOUNTING 942
FIRM IF ALL OF THE FOLLOWING CONDITIONS ARE MET: 944
(1) ALL OF THE INDIVIDUALS WHO HOLD AN OHIO PERMIT OR A 946
FOREIGN CERTIFICATE AND WHO OWN EQUITY INTERESTS IN THE PUBLIC 947
ACCOUNTING FIRM, AND QUALIFIED FIRMS THAT OWN EQUITY INTERESTS IN 948
THE PUBLIC ACCOUNTING FIRM, OWN, IN THE AGGREGATE, A MAJORITY OF 949
THE EQUITY INTERESTS IN THE PUBLIC ACCOUNTING FIRM AND CONTROL 950
THE PUBLIC ACCOUNTING FIRM.
(2) THE PERSON DOES NOT ASSUME OR USE ANY TITLES OR 953
DESIGNATIONS SPECIFIED IN DIVISION (A) OF SECTION 4701.14 OF THE 954
REVISED CODE. THE PERSON MAY DESIGNATE OR REFER TO THE PERSON AS 955
A SHAREHOLDER, PARTNER, MEMBER, PRINCIPAL, OWNER, OR OFFICER OF 956
THE PUBLIC ACCOUNTING FIRM AND ALSO MAY USE ANY OTHER TITLE THAT 958
THE BOARD AUTHORIZES BY RULE.
(3) THE PERSON IS NOT IN VIOLATION OF ANY STANDARD 961
REGARDING THE CHARACTER OR CONDUCT OF THAT PERSON THAT THE BOARD 962
ESTABLISHES BY RULE.
(4) THE PERSON'S PARTICIPATION IN THE BUSINESS OF THE 965
PUBLIC ACCOUNTING FIRM IS THE PERSON'S PRINCIPAL OCCUPATION AND
CONSISTS OF PROVIDING SERVICES TO OR ON BEHALF OF THE PUBLIC 966
ACCOUNTING FIRM, AND THE PERSON IS NOT FUNCTIONING SOLELY OR 968
PREDOMINATELY AS A PASSIVE INVESTOR IN THE PUBLIC ACCOUNTING 969
FIRM.
(5) THE PERSON HAS GRADUATED WITH A BACCALAUREATE OR 973
HIGHER DEGREE CONFERRED BY A COLLEGE OR UNIVERSITY APPROVED BY 974
THE BOARD.
(6) THE PERSON MEETS OR EXCEEDS THE CONTINUING EDUCATION 977
REQUIREMENTS THAT THE BOARD ESTABLISHES BY RULE.
(7) A PERSON WHO HOLDS A PROFESSIONAL LICENSE, 979
REGISTRATION, OR CERTIFICATION ISSUED BY THIS STATE OR ANOTHER 980
STATE COMPLIES WITH THE REQUIREMENTS OF THAT LICENSE, 982
REGISTRATION, OR CERTIFICATION.
(8) THE PERSON ABIDES BY THE CODE OF CONDUCT OF THE 985
22
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OR A 986
COMPARABLE CODE OF PROFESSIONAL CONDUCT THAT THE BOARD ADOPTS BY 987
RULE.
(9) THE PERSON COMPLIES WITH ALL APPLICABLE PROVISIONS OF 990
THIS CHAPTER AND THE RULES ADOPTED BY THE BOARD. 991
(C)(E) A PERSON WHO OWNS A VOTING EQUITY INTEREST IN A 994
PUBLIC ACCOUNTING FIRM MAY NOT DELEGATE, BY PROXY OR OTHERWISE, 995
THE DUTY TO EXERCISE ANY VOTING RIGHTS TO A PERSON THAT DOES NOT 996
HOLD AN OHIO PERMIT OR A FOREIGN CERTIFICATE OR TO A PERSON THAT 997
IS NOT A QUALIFIED FIRM. 998
(F) As a condition for initial or renewal registration OF 1,000
A PUBLIC ACCOUNTING FIRM on and after January 1, 1993, the board, 1,002
by rule, shall require that all EACH public accounting firms FIRM 1,003
undergo a quality PEER review to determine the PUBLIC ACCOUNTING 1,006
FIRM'S degree of compliance by the firm IN THE PRACTICE OF PUBLIC 1,007
ACCOUNTING with generally accepted accounting principles and, 1,009
GENERALLY ACCEPTED auditing standards, and other generally 1,010
accepted technical standards, unless the applicant PUBLIC 1,011
ACCOUNTING firm meets one of the exceptions in division (G)(J) of 1,013
this section.
(D)(G) The board shall adopt rules establishing guidelines 1,015
for quality PEER reviews. The rules shall do all of the 1,016
following: 1,017
(1) Designate a quality PEER review committee consisting 1,019
of accounting professionals to serve as advisors to the board and 1,020
to ensure that the board's guidelines are followed. The board 1,021
shall MAY establish fair and reasonable compensation for the 1,022
committee members to be paid for time they spend conducting 1,024
committee business.
(2) Require that the quality PEER review be conducted by a 1,026
reviewer that is both independent of the PUBLIC ACCOUNTING firm 1,027
reviewed and qualified pursuant to board rules; 1,029
(3) Require that the standards and practices applied by 1,031
the reviewer be at least as stringent as those applied by the 1,032
23
American institute of certified public accountants; 1,033
(4) Prohibit the use or disclosure of information obtained 1,035
by members of the board OR A COMMITTEE of PEER reviewers during 1,036
or in connection with the quality PEER review process for 1,038
purposes other than those related to determining the degree of 1,040
compliance by the PUBLIC ACCOUNTING firm with generally accepted 1,042
accounting principles and, GENERALLY ACCEPTED auditing standards, 1,043
and other generally accepted technical standards. Division 1,045
(D)(G)(4) of this section does not apply to the use or disclosure 1,046
of information that is described in division (H)(K)(3) of this 1,047
section or that is necessary to comply with any provision of law. 1,049
(E)(H)(1) If a quality PEER review report indicates that a 1,052
PUBLIC ACCOUNTING firm does not comply with standards and 1,054
practices set forth in board guidelines, the board may, at, IN 1,055
its discretion, or shall, upon submission of a written 1,057
application by the firm, MAY hold a hearing to determine whether 1,058
the firm complies with the standards and practices. If the 1,059
board, after conducting the hearing, determines that the firm 1,060
complies with the standards and practices, it shall issue an 1,061
order requiring the reviewer and the quality review committee to 1,062
take any necessary action to record and implement the board's 1,063
determination and to restore the status of compliance upon the 1,064
firm. However, if REVIEW THE RESULTS OF THE PEER REVIEW REPORT. 1,065
IF the board, after conducting the hearing, determines that the 1,066
PUBLIC ACCOUNTING firm does not comply with the standards and 1,068
practices, it may issue an order that requires both of the 1,069
following:
(a) Remedial OR DISCIPLINARY action, which may include ANY 1,071
OF THE FOLLOWING: 1,072
(i) Requiring employees of the PUBLIC ACCOUNTING firm to 1,074
complete general or specific continuing professional education 1,076
courses;
(ii) Requiring the PUBLIC ACCOUNTING firm to undergo 1,078
quality PEER review more frequently than triennially and PEER 1,081
24
REVIEW THAT IS conducted in whole or part under the direct 1,083
supervision of the board or its designee;
(iii) Any other remedial action specified by the board; 1,085
(iv) IMPOSING ANY DISCIPLINARY MEASURES SET FORTH IN 1,087
DIVISION (B) OF SECTION 4701.16 OF THE REVISED CODE. 1,088
(b) An affidavit from the PUBLIC ACCOUNTING firm submitted 1,090
within the time specified by the board indicating completion of 1,092
required remedial actions. 1,093
(2) Notwithstanding divisions (H)(K)(1) and (2) of this 1,095
section, all matters relating to the procedures for determining 1,096
compliance with the standards and practices under division 1,098
(E)(H)(1) of this section are subject to Chapter 119. of the 1,099
Revised Code, including the notice and conduct of any hearing, 1,100
and the issuance and appeal of any order. 1,101
(F)(I) The PUBLIC ACCOUNTING firm reviewed shall pay for 1,104
any quality PEER review performed. 1,105
(G)(J) The board may exempt a PUBLIC ACCOUNTING firm from 1,108
the requirement to undergo a quality PEER review if the PUBLIC 1,109
ACCOUNTING firm submits to the board a written and notarized 1,112
statement that the PUBLIC ACCOUNTING firm meets at least one of 1,114
the following grounds for exemption identified in the statement: 1,115
(1) Within three years of the date of application for 1,117
initial or renewal registration, the PUBLIC ACCOUNTING firm has 1,118
been subject to a quality PEER review acceptable to the board and 1,120
conducted pursuant to standards not less stringent than review 1,122
standards applied by the American institute of certified public 1,123
accountants. The PUBLIC ACCOUNTING firm shall submit to the 1,125
board a copy of the results of the quality PEER review and any 1,127
additional documentation required by the board. The board, 1,128
however, shall not require submittal of the working papers 1,129
related to the quality PEER review process.
(2) Within three years of the date of application for 1,131
initial or renewal registration, the PUBLIC ACCOUNTING firm has 1,132
undergone a quality PEER review conducted in another state or 1,134
25
foreign country. The PUBLIC ACCOUNTING firm shall submit to the 1,136
board a copy of the results of the quality PEER review and any 1,138
additional documentation required by the board, including a 1,139
detailed report of the procedures and standards applied by the 1,140
reviewer.
(3) The PUBLIC ACCOUNTING firm has never practiced public 1,142
accounting in this state or any other state or foreign country 1,144
and will undergo a quality PEER review within eighteen months of 1,145
registration.
(4) The PUBLIC ACCOUNTING firm, on a schedule as required 1,147
by rule adopted by the board, submits a report to the board that 1,148
states all of the following: 1,149
(a) The PUBLIC ACCOUNTING firm does not engage in any 1,151
financial reporting areas of practice including audits, 1,153
compilations, or reviews UNDERTAKE ANY ENGAGEMENT THAT WILL 1,154
RESULT IN THE ISSUANCE OF AN ATTEST REPORT.
(b) Within the next three years, the PUBLIC ACCOUNTING 1,156
firm does not intend to engage in any financial reporting areas 1,158
of practice including audits, compilations, reviews, or 1,159
prospective financial statements UNDERTAKE ANY ENGAGEMENT THAT 1,160
WILL RESULT IN THE ISSUANCE OF ANY ATTEST REPORT. 1,161
(c) The PUBLIC ACCOUNTING firm agrees to notify the board 1,163
within ninety days of engaging in any financial reporting areas 1,165
of practice including audits, compilations, or reviews AFTER 1,166
ACCEPTING ANY ENGAGEMENT THAT WILL RESULT IN THE ISSUANCE OF ANY 1,167
ATTEST REPORT and will undergo a quality PEER review within one 1,170
year of commencing such practices AFTER THE ACCEPTANCE OF AN 1,172
ENGAGEMENT OF THAT NATURE.
(5) Subject to the board's approval, for reasons of 1,174
personal health, military service, or other good cause, the 1,175
PUBLIC ACCOUNTING firm is entitled to an exemption. 1,177
(H)(K) In any civil action, arbitration, or administrative 1,179
proceeding involving a PUBLIC ACCOUNTING firm, all of the 1,180
following shall apply: 1,181
26
(1) The proceedings, records, and work papers of any 1,183
reviewer, including board members and review committee members, 1,184
involved in the quality PEER review process are privileged and 1,185
not subject to discovery, subpoena, or other means of legal 1,187
process and may not be introduced into evidence. 1,188
(2) No reviewer, including board members and review 1,190
committee members, involved in the quality PEER review process 1,191
shall be permitted or required to testify as to any matters 1,193
produced, presented, disclosed, or discussed during or in 1,194
connection with the quality PEER review process; or SHALL be 1,195
required to testify to any finding, recommendation, evaluation, 1,198
opinion, or other actions of such THOSE committees, or their 1,199
members.
(3) No privilege exists under this section for either of 1,201
the following: 1,202
(a) Information presented or considered in the quality 1,204
PEER review process which THAT was otherwise available to the 1,205
public;
(b) Materials prepared in connection with a particular 1,207
engagement merely because they subsequently are presented or 1,208
considered as part of the quality PEER review process. 1,209
(I)(L) If a quality PEER review report indicates that a 1,212
PUBLIC ACCOUNTING firm complies with standards and practices set 1,214
forth in board guidelines, the board shall destroy all documents 1,215
and reports related to the quality PEER review within thirty days 1,216
after the board completes its review of the report. If a quality 1,218
PEER review report indicates that a PUBLIC ACCOUNTING firm does 1,220
not comply with such THOSE standards and practices, the board 1,223
shall retain all documents and reports related to the quality 1,224
PEER review until completion of the next quality PEER review. 1,225
Sec. 4701.06. The ACCOUNTANCY BOARD SHALL GRANT THE 1,234
certificate of "certified public accountant" shall be granted by 1,236
the accountancy board to any person WHO SATISFIES THE FOLLOWING 1,237
REQUIREMENTS:
27
(A) Who THE PERSON is a resident of this state or has a 1,239
place of business therein IN THIS STATE or, as an employee, is 1,241
regularly employed therein IN THIS STATE. The board may 1,243
DETERMINE by rule determine circumstances under which the 1,246
residency requirement may be waived.
(B) Who THE PERSON has attained the age of eighteen 1,249
years;.
(C) Who THE PERSON is of good moral character;. 1,251
(D) Who THE PERSON meets the FOLLOWING requirements of 1,253
education and experience as provided in this division: 1,255
(1)(a) Prior to January 1, 2000, graduation with a 1,257
baccalaureate degree conferred by a college or university 1,258
recognized by the board, with a concentration in accounting that 1,259
includes related courses in other areas of business 1,260
administration, or what the board determines to be substantially 1,261
the equivalent of the foregoing; 1,262
(b) On and after January 1, 2000, graduation with a 1,264
baccalaureate or higher degree that includes successful 1,265
completion of one hundred fifty semester hours of undergraduate 1,266
or graduate education. The board shall by rule SHALL specify 1,267
graduate degrees that satisfy this requirement and shall also by 1,269
rule SHALL require such ANY subjects as THAT it considers 1,271
appropriate. The total educational program shall include an 1,272
accounting concentration with related courses in other areas of 1,273
business administration, as defined by board rule. 1,274
(2)(a) The experience requirement for candidates meeting 1,276
the educational requirements set forth in division (D)(1)(a) or 1,277
(b) of this section is two years ONE YEAR of public accounting 1,279
experience, satisfactory to the board, in any state in practice, 1,280
as a certified public accountant or as a public accountant, or, 1,281
in any state in employment, as a staff accountant by anyone 1,282
practicing public accounting, or such experience in private or 1,283
governmental accounting as is, in the opinion of the board, the 1,284
equivalent of such public accounting practice, or any combination 1,285
28
of such types of experience. 1,287
(b) The experience requirement is only one year of the 1,289
experience described in division (D)(2)(a) of this section for 1,290
any candidate holding a master's degree in accounting or business 1,291
administration from a college or university recognized by the 1,292
board, if he has satisfactorily completed such number of semester 1,295
hours in graduate accounting and such related subjects as the
board determines to be appropriate ANY OF THE FOLLOWING: 1,296
(i) A PUBLIC ACCOUNTING FIRM; 1,298
(ii) GOVERNMENT; 1,300
(iii) BUSINESS; 1,302
(iv) ACADEMIA. 1,304
(c)(b) Except as provided in division (D)(2)(d)(c) of this 1,307
section, the experience requirement for any candidate who, on and 1,308
after January 1, 2000, does not meet the educational requirement 1,309
set forth in division (D)(1)(b) of this section is four years of 1,310
experience described in division (D)(2)(a) of this section. The 1,311
experience requirement for any candidate who, prior to January 1, 1,312
2000, does not meet the educational requirement set forth in 1,313
division (D)(1)(a) of this section is two years of experience 1,314
described in division (D)(2)(a) of this section. 1,315
(d)(c) On and after January 1, 2000, the experience 1,317
requirement for any candidate who, subsequent to obtaining a 1,318
baccalaureate or higher degree, other than a baccalaureate or 1,319
higher degree described in division (D)(1)(b) of this section, 1,320
successfully completes coursework that meets the educational 1,321
requirement set forth in division (D)(1)(b) of this section, is 1,322
two years of experience described in division (D)(2)(a) of this 1,323
section. 1,324
(E) Who THE PERSON has passed a written examination in 1,326
accounting and auditing and in such ANY related subjects as THAT 1,328
the board determines to be appropriate. The board shall adopt 1,330
rules, consistent with this section, for these examinations and 1,331
for application to take these examinations. 1,332
29
None of the educational requirements specified in division 1,334
(D) of this section apply to a candidate who is registered as a 1,335
public accountant under section 4701.07 of the Revised Code HAS A 1,336
PA REGISTRATION, but the experience requirement for such THE 1,338
candidate who does not meet such THOSE educational requirements 1,340
is four years of the experience described in division (D)(2)(a) 1,342
of this section.
Prior to January 1, 2000, the board shall waive the 1,344
educational requirement set forth in division (D)(1)(a) of this 1,345
section for any candidate if it finds that the candidate has 1,346
attained the equivalent education by attendance at a business 1,347
school, by self-study, or otherwise, and if it is satisfied from 1,348
the results of special written examinations given THAT THE BOARD 1,349
GIVES the candidate by the board to test his THE CANDIDATE'S 1,351
educational qualifications that he THE CANDIDATE is as well 1,352
equipped, educationally, as if he THE CANDIDATE met the 1,353
applicable educational requirement specified in division 1,354
(D)(1)(a) of this section.
On and after January 1, 2000, the board shall waive the 1,356
educational requirement set forth in division (D)(1)(b) of this 1,357
section for any candidate if the board finds that the candidate 1,358
has obtained from an accredited college or university approved by 1,359
the board, either an associate degree or a baccalaureate degree, 1,360
other than a baccalaureate degree described in division (D)(1)(b) 1,361
of this section, with a concentration in accounting that includes 1,362
related courses in other areas of business administration, and if 1,363
the board is satisfied from the results of special written 1,364
examinations given THAT THE BOARD GIVES the candidate by the 1,365
board to test his THE CANDIDATE'S educational qualification that 1,367
the candidate is as well equipped, educationally, as if he THE 1,369
CANDIDATE met the applicable educational requirement specified in 1,370
division (D)(1)(b) of this section.
The board shall provide by rule for the general scope of 1,372
any special written examinations for a waiver of the educational 1,373
30
requirements under division (D)(1)(a) or (b) of this section, and 1,374
may obtain such ANY advice and assistance as THAT it considers 1,376
appropriate to assist it in preparing and grading such THOSE 1,377
special written examinations. The board may use any existing 1,378
examinations or may prepare any number of new examinations to 1,379
assist in determining the equivalent training of a candidate. 1,380
The board shall by rule SHALL prescribe any special written 1,381
examinations for a waiver of the educational requirements under 1,382
division (D)(1)(a) or (b) of this section and the passing score 1,383
required for each examination.
The examinations described in division (E) of this section 1,385
and the special written examinations for a waiver of the 1,386
educational requirements under division (D)(1)(a) or (b) of this 1,387
section shall be held by the board and shall take place as often 1,388
as the board determines to be desirable, but the examinations 1,389
described in division (E) of this section shall be held not less 1,390
frequently than once each year. The board may make such THE use 1,391
of all or any part of the uniform certified public accountants' 1,393
examination and advisory grading service, or either, as it 1,394
considers appropriate to assist it in performing its duties 1,395
hereunder UNDER THIS SECTION. The board ALSO may also contract 1,397
with qualified organizations for assistance in the administration 1,399
of any examinations. The board by rule may provide for granting 1,400
credit to a candidate for his satisfactory completion of a 1,401
written examination in one or more of the subjects specified 1,402
REFERRED TO in division (E) of this section given by the 1,404
licensing authority in any other state. 1,405
A candidate who has met the educational requirements, or 1,407
with respect to whom they either do not apply or have been 1,408
waived, is eligible to take the examination specified REFERRED TO 1,410
in division (E) of this section without waiting until he THE 1,411
CANDIDATE meets the experience requirements, provided he THE 1,412
CANDIDATE also meets the requirements of divisions (A) and (C) of 1,414
this section.
31
A candidate for the certificate of certified public 1,416
accountant who has successfully completed the examination under 1,417
division (E) of this section has no status as a certified public 1,418
accountant, unless and until he THE CANDIDATE has the requisite 1,419
experience and has received his A certificate as a certified 1,420
public accountant. The board shall determine and charge a fee 1,421
for issuing the certificate that is adequate to cover the 1,422
expense.
The board may by rule MAY prescribe the terms and 1,424
conditions under which a candidate who passes the examination in 1,425
one or more of the subjects indicated REFERRED TO in division (E) 1,426
of this section may be reexamined in only the remaining subjects, 1,428
with credit for the subjects previously passed. It may also MAY 1,429
provide by rule for a reasonable waiting period for a candidate's 1,431
reexamination in a subject he THE CANDIDATE has failed. Subject 1,432
to the foregoing BOARD RULES OF THOSE TYPES and such ANY other 1,434
rules as THAT the board may adopt governing reexaminations, a 1,435
candidate is entitled to any number of reexaminations under 1,436
division (E) of this section. No candidate shall be required to 1,437
be reexamined in all subjects unless a period of four years has 1,438
elapsed since the candidate initially earned credit on the 1,439
examination. 1,440
The applicable educational and experience requirements 1,442
under division (D) of this section shall be those in effect on 1,443
the date on which the candidate first sits for the examination. 1,444
The board shall charge such A candidate a reasonable fee, 1,446
to be determined by the board, that is adequate to cover all 1,447
rentals, compensation for proctors, and other administrative 1,448
expenses of the board related to examination or reexamination, 1,449
including the expenses of procuring and grading the examination 1,450
provided for in division (E) of this section and for any special 1,451
written examinations for a waiver of the educational requirements 1,452
under division (D)(1)(a) or (b) of this section. Fees for 1,453
reexamination under division (E) of this section shall be charged 1,454
32
by the board in amounts determined by it. The applicable fees 1,455
shall be paid by the candidate at the time he THE CANDIDATE 1,456
applies for examination or reexamination. 1,457
Any person who has received from the board a certificate as 1,459
a certified public accountant and who holds a AN OHIO permit 1,461
issued under section 4701.10 of the Revised Code, which is in 1,462
full force and effect, shall be styled and known as a "certified 1,463
public accountant" and may also MAY use the abbreviation "CPA." 1,465
The board shall maintain a list of certified public accountants. 1,466
Any certified public accountant may also MAY be known as a 1,467
"public accountant." 1,468
Persons who, on the effective date of an amendment of this 1,470
section, held certified public accountant certificates 1,471
theretofore PREVIOUSLY issued under the laws of this state shall 1,472
not be required to obtain additional certificates under this 1,474
section, but shall otherwise be subject to all provisions of this 1,475
section;, and such THOSE PREVIOUSLY ISSUED certificates 1,477
theretofore issued shall, for all purposes, SHALL be considered 1,480
certificates issued under this section and subject to the ITS 1,481
provisions hereof.
The board may waive the examination under division (E) of 1,483
this section, and, upon payment of a fee determined by it, may 1,485
issue a certificate as a "certified public accountant" to any 1,486
person possessing WHO POSSESSES the qualifications specified in 1,487
divisions (A), (B), and (C) of this section and what the board 1,489
determines to be substantially the equivalent of the applicable 1,490
qualifications under division (D) of this section, AND who is the 1,491
holder of a certificate as a certified public accountant, then in 1,492
full force and effect, issued under the laws of any state, or is 1,493
the holder of a certificate, license, or degree in a foreign 1,494
country constituting THAT CONSTITUTES a recognized qualification 1,495
for the practice of public accounting in such THAT country, THAT 1,497
IS comparable to that of a certified public accountant of this 1,499
state, which AND THAT is then in full force and effect. 1,501
33
Sec. 4701.061. Notwithstanding anything to the contrary in 1,510
section 4701.06 of the Revised Code, the ACCOUNTANCY BOARD SHALL 1,511
GRANT A certificate of "certified public accountant" shall be 1,513
granted by the accountancy board to any public accountant who 1,514
meets all the following requirements: 1,515
(A) The public accountant applies to the board for the 1,517
certificate under this section;. 1,518
(B) At the time of application and the time that the 1,520
certificate is granted, the public accountant holds a live AN 1,522
OHIO permit issued under division (A) of section 4701.10 of the 1,523
Revised Code;. 1,524
(C) At the time of application, any public accounting firm 1,526
that employs the public accountant or in which the public 1,527
accountant has an interest is registered, and meets the 1,528
applicable quality PEER review requirements of the board, under 1,530
section 4701.04 of the Revised Code;. 1,531
(D) For not less than one hundred twenty months, the 1,533
public accountant has held a AN OHIO permit issued under division 1,535
(A) of section 4701.10 of the Revised Code and has completed and 1,536
reported to the board all applicable continuing education hours 1,537
required by section 4701.11 of the Revised Code and the rules 1,538
adopted pursuant thereto TO THAT SECTION. 1,539
Sec. 4701.07. The accountancy board shall register as a 1,548
public accountant any person who meets all the following 1,549
requirements: 1,550
(A) Is THE PERSON IS a resident of this state, or has a 1,552
place of business therein; IN THIS STATE. 1,554
(B) Has THE PERSON HAS attained the age of eighteen 1,557
years;.
(C) Is THE PERSON IS of good moral character;. 1,559
(D) Holds THE PERSON HOLDS a baccalaureate or higher 1,561
degree conferred by a college or university recognized by the 1,563
board, with a concentration in accounting, or with what the board 1,564
determines to be substantially THE equivalent of the foregoing; 1,565
34
or with a nonaccounting concentration supplemented by what the 1,566
board determines to be substantially the equivalent of an 1,567
accounting concentration, including related courses in other 1,568
areas of business administration. 1,569
The board may waive the educational requirement for any 1,571
candidate if it finds that the candidate has attained the 1,572
equivalent education by attendance at a business school or 1,573
two-year college, by self-study, or otherwise, and if it is 1,574
satisfied from the result of a special written examination given 1,575
THAT THE BOARD GIVES the candidate by the board to test his THE 1,577
CANDIDATE'S educational qualifications that he THE CANDIDATE is 1,578
as well equipped, educationally, as if he THE CANDIDATE met the 1,579
applicable educational requirement specified in this division. 1,580
The board may provide by rule for the general scope of such THESE 1,581
examinations and may obtain such ANY advice and assistance as 1,583
THAT it considers appropriate to assist it in preparing and 1,584
grading such THE special examinations. The board may use any 1,586
existing examinations or may prepare any number of new 1,587
examinations to assist it in determining the equivalent training 1,588
of a candidate. The board may by rule MAY prescribe such THE 1,589
SPECIAL examinations and the passing score required for each 1,592
examination.
(E) Has THE PERSON HAS completed two years of public 1,594
accounting experience, satisfactory to the board, in any state in 1,595
practice as a public accountant, or in any state in employment, 1,596
as a staff accountant by anyone practicing public accounting, or 1,598
such OTHER experience in private or governmental accounting as 1,599
will THAT, in the opinion of the board, WILL be the equivalent of 1,601
such THAT public accounting practice, or any combination of such 1,603
THOSE types of experience, except that the experience requirement 1,605
is only one year of the experience described in this division for 1,606
any candidate holding a master's degree in accounting or business 1,607
administration from a college or university recognized by the 1,608
board, if he THE CANDIDATE has satisfactorily completed such THE 1,609
35
number of credit hours in accounting, business administration, 1,611
economics, and such ANY related subjects as THAT the board 1,613
determines to be appropriate; and IF EITHER OF THE FOLLOWING 1,614
APPLIES:
(1) Has THE PERSON HAS passed the uniform national society 1,616
of public accountants examination or a comparable examination 1,618
approved by the public accountant members of the accountancy 1,619
board; or.
(2) Has THE PERSON HAS passed the accounting practice and 1,621
auditing sections of the uniform CPA examination. 1,623
The examination described in division (E)(1) of this 1,625
section shall be held by the board and shall take place as often 1,626
as the board determines, but shall not be held less frequently 1,627
than once each year. The board shall charge a candidate an 1,628
application fee, to be determined by the board, that is adequate 1,629
to cover all rentals, compensation for proctors, and other 1,630
expenses of the board related to examination or reexamination 1,631
except the expenses of procuring and grading the examination. In 1,632
addition, the board shall charge such THE candidate an 1,633
examination fee to be determined by the board, that is adequate 1,635
to cover the expense of procuring and grading the examination. 1,636
Fees for reexamination under division (E) of this section shall 1,637
also SHALL be charged by the board in amounts determined by it to 1,639
be adequate to cover the expenses of procuring and grading the 1,640
examinations. The applicable fees shall be paid by the candidate 1,641
at the time he THE CANDIDATE applies for examination or 1,642
reexamination.
(F) Applied THE PERSON APPLIED, on or before the effective 1,644
date of this amendment APRIL 16, 1993, for registration as a 1,646
public accountant. 1,647
The board shall determine and charge a fee for registration 1,649
under this section that is adequate to cover the expense. 1,650
The board shall in each case SHALL determine whether the 1,652
applicant is eligible for registration. Any individual who is so 1,653
36
registered and who holds a AN OHIO permit issued under section 1,656
4701.10 of the Revised Code shall be styled and known as a 1,657
"public accountant" and may use the abbreviation "PA." 1,658
A person who, on the effective date of an amendment of this 1,660
section, holds a valid registration as a public accountant issued 1,661
under the laws of this state shall not be required to obtain 1,662
additional registration under this section, but shall otherwise 1,663
be subject to all provisions of this section; and such. THAT 1,665
registration shall, for all purposes, SHALL be considered a 1,666
registration issued under this section and subject to the ITS 1,668
provisions hereof.
Sec. 4701.10. (A) Permits to practice public accounting 1,678
shall be issued by the THE accountancy board SHALL ISSUE OHIO 1,679
PERMITS TO PRACTICE PUBLIC ACCOUNTING to holders of the 1,681
certificate of certified public accountant issued under section 1,682
4701.06 or 4701.061 of the Revised Code and to persons registered 1,683
under sections 4701.07 and 4701.09 of the Revised Code. Subject 1,684
to division (D)(1) of this section, there shall be a triennial 1,685
permit fee in an amount to be determined by the board not to 1,686
exceed one hundred fifty dollars. All OHIO permits shall expire 1,688
on the last day of December of the year assigned by the board 1,689
and, subject to division (D)(1) of this section, shall be renewed 1,690
triennially for a period of three years by certificate holders 1,691
and registrants in good standing upon payment of a triennial 1,692
renewal fee not to exceed one hundred fifty dollars. For the
purpose of implementing this section and enforcing section 1,694
4701.11 of the Revised Code, the board may issue a AN OHIO permit 1,695
for less than three years' duration. A prorated fee shall be 1,696
determined by the board for such THAT OHIO permit. Failure of 1,698
any certificate holder or registrant to apply for a triennial 1,699
OHIO permit to practice within three years from the expiration 1,701
date of the OHIO permit to practice last obtained or renewed, or 1,702
three years from the date upon which the certificate holder or 1,704
registrant was granted a certificate or registration, shall 1,705
37
result in suspension of such THE certificate or registration 1,706
unless the board determines such THE failure to have been due to 1,708
excusable neglect. In such THAT case, the renewal fee or the fee 1,710
for the issuance of the original OHIO permit, as the case may be, 1,711
shall be such THE amount as THAT the board shall determine, but 1,713
not in excess of fifty dollars plus the fee for each triennial 1,714
period or part of a period the certificate holder or registrant 1,715
did not have a AN OHIO permit. 1,716
(B) All certificate holders and registrants who are not in 1,718
the practice of public accounting in this state shall register 1,719
with the board every three years at a fee, not to exceed 1,720
fifty-five dollars, established by the board. Such persons shall 1,721
not convey to the general public that they are actively engaged 1,722
in the practice of public accounting in this state. 1,723
(C) The board shall suspend the certificate or 1,725
registration of any person failing to obtain a AN OHIO permit in 1,727
accordance with this section, except that the board may by rule 1,728
MAY exempt persons from the requirement of holding a AN OHIO 1,730
permit for such SPECIFIED reasons as, INCLUDING, BUT NOT LIMITED 1,731
TO, retirement, health reasons, military service, foreign 1,732
residency, or other just cause. 1,733
(D)(1) On and after January 1, 1995, the board shall, by 1,735
rule adopted in accordance with Chapter 119. of the Revised Code, 1,736
SHALL increase the triennial OHIO permit and renewal fee imposed 1,738
pursuant to this section by at least fifteen dollars but no more 1,739
than thirty dollars. 1,740
(2) Beginning with the first quarter of 1995 and each 1,742
quarter thereafter, the board, for the purpose provided in 1,743
section 4743.05 of the Revised Code, shall certify to the 1,744
director of budget and management the number of triennial OHIO 1,745
permits renewed under this chapter during the preceding quarter 1,747
and the amount equal to that number times the amount by which the 1,748
triennial OHIO permit and renewal fee is increased by the board 1,750
under division (D)(1) of this section. 1,751
38
Sec. 4701.11. The accountancy board may adopt rules 1,760
requiring that each applicant for the AN OHIO permit required by 1,762
section 4701.10 of the Revised Code shall have demonstrated to 1,764
the satisfaction of the board that the applicant has maintained a 1,765
high level of professional competence by the completion of 1,766
programs of continuing education satisfactory to the board during 1,767
the period immediately prior to the application for the permit or 1,768
renewal. The board shall not require more than one hundred 1,769
twenty hours of such THOSE programs over any three-year period 1,770
for applicants possessing a live AN OHIO permit. For purposes of 1,773
this section, the board shall not approve any continuing 1,774
education courses for which fees are charged and which THAT are 1,775
sponsored by an accounting association in this state unless such 1,777
THOSE courses are open to all persons registered or certified 1,779
under this chapter and unless the fees charged are reasonable for 1,780
all persons desiring to take the courses. 1,781
The board may issue a AN OHIO permit required by section 1,784
4701.10 of the Revised Code for less than three years to any 1,785
person who is unable to complete continuing education hours 1,786
required for renewal of a triennial OHIO permit for good cause, 1,787
as established by rule. Such THE OHIO permit shall be 1,789
conditioned upon the completion of all required continuing 1,791
education hours during the period for which such THE OHIO permit 1,792
is issued.
Sec. 4701.12. The display or uttering by a person of a 1,801
card, sign, advertisement, or other printed, engraved, or written 1,802
instrument or device, bearing a person's name in conjunction with 1,804
the words "certified public accountant" or any abbreviation 1,805
thereof OF THOSE WORDS, or "public accountant" or any 1,806
abbreviation thereof OF THOSE WORDS, shall be prima-facie 1,808
evidence in any action brought under section 4701.18 or section 1,810
4701.99 of the Revised Code, that the person whose name is so 1,812
displayed caused or procured the display or uttering of such THAT 1,813
card, sign, advertisement, or other printed, engraved, or written 1,814
39
instrument or device, and that such THE person is holding himself 1,816
SELF out to be a certified public accountant or a public 1,818
accountant holding a AN OHIO permit to practice under section 1,820
4701.10 of the Revised Code. In any action, evidence of the 1,822
commission of a single act prohibited by this section shall be
sufficient to justify an injunction or a conviction without 1,823
evidence of a general course of conduct. 1,824
Sec. 4701.13. The accountancy board shall publish annually 1,833
a printed register, which. THE PRINTED REGISTER shall contain in 1,835
separate lists the names and business addresses of all certified 1,837
public accountants and public accountants holding live OHIO 1,838
permits as of the date of preparation of the register. 1,839
Sec. 4701.14. (A) No person EXCEPT AS PERMITTED BY RULES 1,848
ADOPTED BY THE ACCOUNTANCY BOARD, NO INDIVIDUAL shall assume or 1,849
use the title or designation "certified public accountant," 1,851
"CERTIFIED ACCOUNTANT," "CHARTERED ACCOUNTANT," "ENROLLED
ACCOUNTANT," "LICENSED ACCOUNTANT," OR "REGISTERED ACCOUNTANT," 1,852
OR ANY OTHER TITLE OR DESIGNATION LIKELY TO BE CONFUSED WITH 1,853
"CERTIFIED PUBLIC ACCOUNTANT," or abbreviation ANY OF THE 1,856
ABBREVIATIONS "CPA," "PA," "CA," "EA," "LA," OR "RA," OR SIMILAR 1,862
ABBREVIATIONS LIKELY TO BE CONFUSED WITH "CPA," or any other 1,864
title, designation, words, letters, abbreviation, sign, card, or 1,865
device tending to indicate that the person INDIVIDUAL is a 1,866
certified public accountant, unless the person has received 1,868
INDIVIDUAL HOLDS a CPA certificate as a certified public 1,869
accountant under section 4701.06 or 4701.061 of the Revised Code 1,870
and holds a live AN OHIO permit issued under section 4701.10 of 1,872
the Revised Code; provided that a foreign accountant who. 1,874
HOWEVER, AN INDIVIDUAL WHO POSSESSES A FOREIGN CERTIFICATE, has 1,875
registered under section 4701.09 of the Revised Code, and holds a 1,877
live AN OHIO permit issued under section 4701.10 of the Revised 1,878
Code may use the title PERMITTED under which he is generally 1,880
known in his country THE LAWS OF THE INDIVIDUAL'S OTHER LICENSING 1,881
JURISDICTION, followed by the name of the country from which he 1,883
40
received his certificate, license, or degree JURISDICTION. 1,885
(B) No partnership shall assume or use the title or 1,887
designation "certified public accountant" or abbreviation "CPA" 1,889
or any other title, designation, words, letters, abbreviation, 1,890
sign, card, or device tending to indicate that the partnership is 1,892
composed of certified public accountants unless it meets all of
the following requirements: 1,893
(1) At least one general partner of the partnership is a 1,895
certified public accountant of this state in good standing. 1,896
(2) Each partner who is personally engaged within this 1,898
state in the practice of public accounting as a member of the 1,899
partnership is a certified public accountant of this state in 1,900
good standing.
(3) Each partner of the partnership is a certified public 1,904
accountant of some state in good standing. 1,905
(4) Each resident manager in charge of an office of the 1,907
firm in this state is a certified public accountant of this state 1,908
in good standing. 1,909
(C) No person EXCEPT AS PERMITTED BY RULES ADOPTED BY THE 1,911
BOARD, NO INDIVIDUAL shall assume or use the title or designation 1,912
"public accountant," or "CERTIFIED PUBLIC ACCOUNTANT," "CERTIFIED 1,914
ACCOUNTANT," "CHARTERED ACCOUNTANT," "ENROLLED ACCOUNTANT," 1,915
"REGISTERED ACCOUNTANT," OR "LICENSED ACCOUNTANT," OR ANY OTHER 1,916
TITLE OR DESIGNATION LIKELY TO BE CONFUSED WITH "PUBLIC 1,917
ACCOUNTANT," OR ANY OF THE ABBREVIATIONS "PA," "CPA," "CA," "EA," 1,922
"LA," OR "RA," OR SIMILAR ABBREVIATIONS LIKELY TO BE CONFUSED 1,925
WITH "PA," or any other title, designation, words, letters, 1,928
abbreviation, sign, card, or device tending to indicate that the 1,929
person INDIVIDUAL is a public accountant, unless the person is 1,931
registered as a public accountant under section 4701.07 of the 1,932
Revised Code and INDIVIDUAL HOLDS A PA REGISTRATION AND holds a 1,933
live AN OHIO permit issued under section 4701.10 of the Revised 1,935
Code, or unless the person has received a INDIVIDUAL HOLDS A CPA 1,936
certificate as a certified public accountant under section 1,937
41
4701.06 or 4701.061 of the Revised Code or holds a live permit 1,938
issued under section 4701.10 of the Revised Code. AN INDIVIDUAL 1,940
WHO HOLDS A PA REGISTRATION AND AN OHIO PERMIT MAY HOLD SELF OUT 1,942
TO THE PUBLIC AS AN "ACCOUNTANT" OR "AUDITOR." 1,943
(D) No partnership shall assume or use the title or 1,945
designation "public accountant" or abbreviation "PA" or any other 1,947
title, designation, words, letters, abbreviation, sign, card, or 1,948
device tending to indicate that the partnership is composed of 1,949
public accountants, unless all of the following apply: 1,950
(1) At least one general partner of the partnership is a 1,952
certified public accountant or a public accountant of this state 1,953
in good standing. 1,954
(2) Each partner who is personally engaged within this 1,956
state in the practice of public accounting as a member of the 1,957
partnership is a certified public accountant or a public 1,958
accountant of this state in good standing. 1,959
(3) Each resident manager in charge of an office of a firm 1,961
in this state is a certified public accountant or a public 1,962
accountant of this state in good standing. 1,963
(E) No person or partnership shall assume or use the title 1,965
or designation "certified accountant," "chartered accountant," 1,966
"enrolled accountant," "licensed accountant," "registered 1,967
accountant," or any other title or designation likely to be 1,968
confused with "certified public accountant" or "public 1,969
accountant," or any of the abbreviations "CA," "EA," "RA," or"LA" or similar abbreviations likely to be confused with "CPA" or 1,975
"PA"; provided that anyone who holds a live permit issued under 1,978
section 4701.10 of the Revised Code may hold himself out to the 1,979
public as an "accountant" or "auditor"; and provided that a 1,981
foreign accountant who has registered under section 4701.09 of 1,982
the Revised Code and holds a live permit issued under section 1,983
4701.10 of the Revised Code may use the title under which he is 1,985
generally known in his country, followed by the name of the 1,987
country from which he received his certificate, license, or 1,989
42
degree. 1,990
(F) No (C) EXCEPT AS PROVIDED IN DIVISIONS (C)(1), (2), 1,993
(3), AND (4) OF THIS SECTION, NO PARTNERSHIP, professional 1,995
association, corporation-for-profit, limited liability company, 1,998
or other legal entity BUSINESS ORGANIZATION not addressed in 1,999
another division of this section THAT IS PRACTICING PUBLIC 2,001
ACCOUNTING IN THIS STATE shall assume or use the title or 2,003
designation "certified public accountant," or "public 2,004
accountant," and no professional association, 2,006
corporation-for-profit, limited liability company, or other legal 2,007
entity not addressed in another division of this section shall
assume or use the title or designation "certified accountant," 2,009
"chartered accountant," "enrolled accountant," "licensed 2,010
accountant," "registered accountant," or any other title or 2,011
designation likely to be confused with "certified public 2,012
accountant" or "public accountant," or any of the abbreviations 2,013
"CPA," "PA," "CA," "EA," "RA," or "LA," or similar abbreviations 2,015
likely to be confused with "CPA" or "PA," except that a OR ANY 2,018
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,019
CARD, OR DEVICE TENDING TO INDICATE THAT THE BUSINESS 2,020
ORGANIZATION IS A PUBLIC ACCOUNTING FIRM.
(1)(a) A PARTNERSHIP MAY ASSUME OR USE THE TITLE OR 2,023
DESIGNATION "CERTIFIED PUBLIC ACCOUNTANT," THE ABBREVIATION 2,024
"CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, LETTERS, 2,025
ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE THAT THE 2,026
PARTNERSHIP IS COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS IF IT IS 2,027
A REGISTERED FIRM, IF A MAJORITY OF ITS PARTNERS WHO ARE 2,028
INDIVIDUALS HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE, AND 2,031
IF A MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A 2,032
PARTNER HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE. 2,034
(b) A PARTNERSHIP MAY ASSUME OR USE THE TITLE OR 2,037
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 2,038
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,039
CARD, OR DEVICE TENDING TO INDICATE THAT THE PARTNERSHIP IS 2,040
43
COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A REGISTERED FIRM, IF A 2,041
MAJORITY OF ITS PARTNERS WHO ARE INDIVIDUALS HOLD A PA 2,043
REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN CERTIFICATE, AND IF 2,046
A MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A PARTNER 2,047
HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN 2,050
CERTIFICATE.
(2)(a) A professional association organized for the 2,052
practice of public accounting and incorporated under Chapter 2,054
1785. of the Revised Code may assume or use the title OR 2,055
DESIGNATION "certified public accountant," if all of its 2,057
shareholders are certified public accountants in good standing 2,060
under the law of this state or another state or may assume or use 2,061
the title "public accountant" if all of its shareholders are 2,062
public accountants in good standing under this chapter or its 2,065
shareholders consist of certified public accountants and public 2,066
accountants in good standing under this chapter, except that a 2,067
THE ABBREVIATION "CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, 2,070
LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE 2,071
THAT THE PROFESSIONAL ASSOCIATION IS COMPOSED OF CERTIFIED PUBLIC 2,072
ACCOUNTANTS IF IT IS A REGISTERED FIRM, IF A MAJORITY OF ITS 2,073
SHAREHOLDERS WHO ARE INDIVIDUALS HOLD A CPA CERTIFICATE OR A 2,074
FOREIGN CERTIFICATE, AND IF A MAJORITY OF THE OWNERS OF ANY 2,077
QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A CPA CERTIFICATE OR A 2,078
FOREIGN CERTIFICATE. 2,079
(b) A PROFESSIONAL ASSOCIATION INCORPORATED UNDER CHAPTER 2,082
1785. OF THE REVISED CODE MAY ASSUME OR USE THE TITLE OR 2,084
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 2,085
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,086
CARD, OR DEVICE TENDING TO INDICATE THAT THE PROFESSIONAL 2,087
ASSOCIATION IS COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A 2,088
REGISTERED FIRM, IF A MAJORITY OF ITS SHAREHOLDERS WHO ARE 2,089
INDIVIDUALS HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A 2,091
FOREIGN CERTIFICATE, AND IF A MAJORITY OF THE OWNERS OF ANY 2,094
QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A PA REGISTRATION, A 2,095
44
CPA CERTIFICATE, OR A FOREIGN CERTIFICATE. 2,097
(3)(a) A corporation-for-profit organized for the practice 2,100
of public accounting and incorporated under Chapter 1701. of the 2,102
Revised Code may assume or use the title OR DESIGNATION
"certified public accountant," if all of its shareholders are 2,107
certified public accountants in good standing under the law of 2,109
this state or another state or may assume or use the title 2,110
"public accountant" if all of its shareholders are public 2,112
accountants in good standing under this chapter or its 2,113
shareholders consist of certified public accountants and public 2,115
accountants in good standing under this chapter, and except that 2,116
a THE ABBREVIATION "CPA," OR ANY OTHER TITLE, DESIGNATION, WORDS, 2,119
LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE TENDING TO INDICATE 2,120
THAT THE CORPORATION IS COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS 2,121
IF IT IS A REGISTERED FIRM, IF A MAJORITY OF ITS SHAREHOLDERS WHO 2,122
ARE INDIVIDUALS HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE, 2,124
AND IF A MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A 2,126
SHAREHOLDER HOLD A CPA CERTIFICATE OR A FOREIGN CERTIFICATE. 2,128
(b) A CORPORATION INCORPORATED UNDER CHAPTER 1701. OF THE 2,131
REVISED CODE MAY ASSUME OR USE THE TITLE OR DESIGNATION "PUBLIC 2,133
ACCOUNTANT," THE ABBREVIATION "PA," OR ANY OTHER TITLE, 2,134
DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, CARD, OR DEVICE 2,135
TENDING TO INDICATE THAT THE CORPORATION IS COMPOSED OF PUBLIC 2,136
ACCOUNTANTS IF IT IS A REGISTERED FIRM, IF A MAJORITY OF THE 2,137
SHAREHOLDERS WHO ARE INDIVIDUALS HOLD A PA REGISTRATION, A CPA 2,140
CERTIFICATE, OR A FOREIGN CERTIFICATE, AND IF A MAJORITY OF THE 2,142
OWNERS OF ANY QUALIFIED FIRM THAT IS A SHAREHOLDER HOLD A PA 2,144
REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN CERTIFICATE. 2,146
(4)(a) A limited liability company formed ORGANIZED under 2,149
Chapter 1705. of the Revised Code for the purpose of rendering 2,151
public accounting services may assume and OR use the title OR 2,154
DESIGNATION "certified public accountant," if each member of the 2,157
company and, if the management of the company is not reserved to 2,158
its members, each manager of the company is a certified public 2,160
45
accountant in good standing under the law of this state or 2,162
another state or may assume and use the title "public accountant" 2,163
if each member of the company and, if the management of the 2,164
company is not reserved to its members, each manager of the 2,167
company is a public accountant in good standing under this 2,168
chapter or those members and, if applicable, managers are either 2,170
a certified public accountant or a public accountant in good 2,172
standing under this chapter THE ABBREVIATION "CPA," OR ANY OTHER 2,175
TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, CARD, OR 2,176
DEVICE TENDING TO INDICATE THAT THE LIMITED LIABILITY COMPANY IS 2,177
COMPOSED OF CERTIFIED PUBLIC ACCOUNTANTS IF IT IS A REGISTERED 2,178
FIRM, IF A MAJORITY OF ITS MEMBERS WHO ARE INDIVIDUALS HOLD A CPA 2,180
CERTIFICATE OR A FOREIGN CERTIFICATE, AND IF A MAJORITY OF THE 2,182
OWNERS OF ANY QUALIFIED FIRM THAT IS A MEMBER HOLD A CPA 2,184
CERTIFICATE OR A FOREIGN CERTIFICATE. 2,185
(b) A LIMITED LIABILITY COMPANY ORGANIZED UNDER CHAPTER 2,188
1705. OF THE REVISED CODE MAY ASSUME OR USE THE TITLE OR 2,191
DESIGNATION "PUBLIC ACCOUNTANT," THE ABBREVIATION "PA," OR ANY 2,192
OTHER TITLE, DESIGNATION, WORDS, LETTERS, ABBREVIATION, SIGN, 2,193
CARD, OR DEVICE TENDING TO INDICATE THAT THE LIMITED LIABILITY 2,194
COMPANY IS COMPOSED OF PUBLIC ACCOUNTANTS IF IT IS A REGISTERED 2,195
FIRM, IF A MAJORITY OF THE MEMBERS WHO ARE INDIVIDUALS HOLD A PA 2,197
REGISTRATION, CPA CERTIFICATE, OR A FOREIGN CERTIFICATE, AND IF A 2,200
MAJORITY OF THE OWNERS OF ANY QUALIFIED FIRM THAT IS A MEMBER 2,201
HOLD A PA REGISTRATION, A CPA CERTIFICATE, OR A FOREIGN 2,203
CERTIFICATE. 2,204
(G)(D) No person INDIVIDUAL shall sign, affix, or 2,207
associate his THE INDIVIDUAL'S name or any trade or assumed name 2,209
used by him THE INDIVIDUAL in his THE INDIVIDUAL'S profession or 2,211
business to any opinion, review report, compilation report, 2,212
examination report, or agreed-upon procedures report on a 2,213
financial statement ATTEST REPORT with any wording indicating 2,214
that he THE INDIVIDUAL is an accountant or auditor, or with any 2,217
wording accompanying or contained in the opinion or ATTEST report 2,218
46
that indicates that he THE INDIVIDUAL has expert knowledge in 2,221
accounting or auditing or expert knowledge regarding compliance 2,222
with conditions established by law or contract, including, but 2,223
not limited to, statutes, ordinances, regulations, grants, loans, 2,224
and appropriations, unless he THE INDIVIDUAL holds a live AN OHIO 2,226
permit issued under section 4701.10 of the Revised Code; provided 2,228
that. HOWEVER, this division does not prohibit any officer, 2,230
employee, partner, or principal of any organization from affixing 2,231
his THE OFFICER'S, EMPLOYEE'S, PARTNER'S, OR PRINCIPAL'S 2,232
signature to any statement or report in reference to the 2,233
financial affairs of that organization with any wording 2,234
designating the position, title, or office that he THE INDIVIDUAL 2,235
holds in that organization; and provided that this. THIS 2,236
division ALSO does not prohibit any act of a public official or 2,238
public employee in the performance of his THE PUBLIC OFFICIAL'S 2,239
OR PUBLIC EMPLOYEE'S duties. 2,240
(H)(E) No person shall sign, affix, or associate the name 2,242
of a partnership, limited liability company, professional 2,244
association, corporation-for-profit, or other legal entity 2,245
BUSINESS ORGANIZATION not addressed in another division of this 2,247
section to any opinion, review report, compilation report, 2,248
examination report, or agreed-upon procedures report on a 2,249
financial statement ATTEST REPORT with any wording accompanying 2,250
or contained in the opinion or ATTEST report that indicates that 2,251
the partnership, limited liability company, professional 2,253
association, corporation-for-profit, or other legal entity 2,254
BUSINESS ORGANIZATION is composed of or employs accountants or 2,257
auditors or persons having expert knowledge in accounting or
auditing or expert knowledge regarding compliance with conditions 2,258
established by law or contract, including, but not limited to, 2,259
statutes, ordinances, regulations, grants, loans, and 2,260
appropriations, unless the partnership is entitled to designate 2,262
itself as a partnership of certified public accountants under 2,263
division (B) of this section or as a partnership of public 2,264
47
accountants under division (D) of this section and, if it is 2,266
required to be registered, is registered under section 4701.04 of 2,267
the Revised Code or unless the, limited liability company, 2,268
professional association, or corporation-for-profit is entitled 2,269
to designate itself as a limited liability company, professional 2,271
association, or corporation-for-profit of certified public 2,272
accountants or public accountants under division (F) of this 2,273
section and, if it is required to be registered, OR OTHER
BUSINESS ORGANIZATION is A registered under section 4701.04 of 2,275
the Revised Code FIRM.
(I)(F) No person INDIVIDUAL WHO DOES not holding a live 2,279
HOLD AN OHIO permit under section 4701.10 of the Revised Code 2,280
shall hold himself SELF out to the public as an "accountant" or 2,282
"auditor" by use of either or both of those words on any sign, 2,283
card, or letterhead, in any advertisement or directory, or 2,284
otherwise, without indicating thereon or therein ON THE SIGN, 2,285
CARD, OR LETTERHEAD, IN THE ADVERTISEMENT OR DIRECTORY, OR IN THE
OTHER MANNER OF HOLDING OUT that the person does not hold a live 2,287
AN OHIO permit; provided that. AN INDIVIDUAL WHO HOLDS A CPA 2,288
CERTIFICATE AND AN OHIO PERMIT MAY HOLD SELF OUT TO THE PUBLIC AS 2,289
AN "ACCOUNTANT" OR "AUDITOR." HOWEVER, this division does not 2,292
prohibit any officer, employee, partner, or principal of any 2,293
organization from describing himself SELF by the position, title, 2,295
or office he THE PERSON holds in that organization; and provided 2,296
that this. THIS division ALSO does not prohibit any act of a 2,298
public official or public employee in the performance of his THE 2,299
PUBLIC OFFICIAL'S OR PUBLIC EMPLOYEE'S duties. 2,300
(J)(G) No partnership that is not entitled to designate 2,302
itself as a partnership of certified public accountants under 2,304
division (B) of this section or as a partnership of public 2,305
accountants under division (D) of this section, and no limited 2,306
liability company, professional association, 2,308
corporation-for-profit, LIMITED LIABILITY COMPANY, or other legal 2,309
entity BUSINESS ORGANIZATION not addressed in another division of 2,310
48
this section that is not entitled to assume or use the title 2,311
"certified public accountant" or "public accountant" under 2,312
division (F)(C) of this section, shall hold itself out to the 2,315
public as a firm, partnership, limited liability company, 2,316
professional association, corporation-for-profit, LIMITED 2,317
LIABILITY COMPANY, or other legal entity BUSINESS ORGANIZATION 2,318
not addressed in another division of this section of AS BEING 2,320
COMPOSED OF OR EMPLOYING "accountants" or "auditors" by use of 2,322
either or both of those words on any sign, card, or letterhead, 2,323
in any advertisement or directory, or otherwise, without 2,324
indicating thereon or therein ON THE SIGN, CARD, OR LETTERHEAD, 2,325
IN THE ADVERTISEMENT OR DIRECTORY, OR IN THE OTHER MANNER OF
HOLDING OUT that the partnership, limited liability company, 2,328
professional association, corporation-for-profit, LIMITED 2,329
LIABILITY COMPANY, or other legal entity BUSINESS ORGANIZATION is 2,330
not A REGISTERED FIRM AND IS NOT permitted by law to practice as 2,332
a partnership, limited liability company, professional 2,333
association, corporation-for-profit, or other legal entity of 2,334
public accountants PUBLIC ACCOUNTING FIRM.
(K)(H) No person shall assume or use the title or 2,336
designation "certified public accountant" or "public accountant" 2,337
in conjunction with names indicating or implying that there is a 2,338
partnership or in conjunction with the designation "and Company" 2,339
or "and Co." or a similar designation if, in any such case OF 2,341
THOSE CASES, there is in fact no bona fide partnership entitled 2,342
to designate itself as a partnership of certified public 2,343
accountants under division (B)(C)(1)(a) of this section or as a 2,344
partnership of public accountants under division (D)(C)(1)(b) of 2,346
this section; provided that. HOWEVER, a sole proprietor or 2,349
partnership that was on October 22, 1959, or a corporation that 2,350
on or after September 30, 1974, has been, lawfully using a title 2,351
or designation of those types in conjunction with names or 2,352
designations of those types, may continue to do so if he or it
THE SOLE PROPRIETOR, PARTNERSHIP, OR CORPORATION otherwise 2,353
49
complies with this section. 2,354
(I)(1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS 2,356
CHAPTER, AN INDIVIDUAL WHOSE PRINCIPAL PLACE OF BUSINESS IS NOT 2,357
IN THIS STATE AND WHO HOLDS A VALID FOREIGN CERTIFICATE AS A 2,359
CERTIFIED PUBLIC ACCOUNTANT SHALL BE PRESUMED TO HAVE 2,360
QUALIFICATIONS SUBSTANTIALLY EQUIVALENT TO THIS STATE'S CPA 2,362
REQUIREMENTS AND SHALL HAVE ALL OF THE PRIVILEGES OF A HOLDER OF 2,363
A CPA CERTIFICATE AND AN OHIO PERMIT WITHOUT THE NEED TO OBTAIN A 2,364
CPA CERTIFICATE AND AN OHIO PERMIT IF THE ACCOUNTANCY BOARD HAS 2,367
FOUND AND HAS SPECIFIED IN ITS RULES ADOPTED PURSUANT TO DIVISION 2,368
(A) OF SECTION 4701.03 OF THE REVISED CODE THAT THE CPA 2,370
REQUIREMENTS OF THE STATE THAT ISSUED THE INDIVIDUAL'S FOREIGN 2,372
CERTIFICATE ARE SUBSTANTIALLY EQUIVALENT TO THIS STATE'S CPA 2,373
REQUIREMENTS.
(2) ANY INDIVIDUAL EXERCISING THE PRIVILEGE AFFORDED UNDER 2,375
DIVISION (I)(1) OF THIS SECTION HEREBY CONSENTS AND IS SUBJECT, 2,377
AS A CONDITION OF THE GRANT OF THE PRIVILEGE, TO ALL OF THE 2,378
FOLLOWING:
(a) THE PERSONAL AND SUBJECT MATTER JURISDICTION OF THE 2,380
ACCOUNTANCY BOARD; 2,381
(b) ALL PRACTICE AND DISCIPLINARY PROVISIONS OF THIS 2,383
CHAPTER AND THE ACCOUNTANCY BOARD'S RULES; 2,384
(c) THE APPOINTMENT OF THE BOARD THAT ISSUED THE 2,386
INDIVIDUAL'S FOREIGN CERTIFICATE AS THE INDIVIDUAL'S AGENT UPON 2,388
WHOM PROCESS MAY BE SERVED IN ANY ACTION OR PROCEEDING BY THE 2,389
ACCOUNTANCY BOARD AGAINST THE INDIVIDUAL. 2,390
(3) THE HOLDER OF A CPA CERTIFICATE AND AN OHIO PERMIT WHO 2,393
OFFERS OR RENDERS ATTEST SERVICES OR USES THE HOLDER'S CPA TITLE 2,395
IN ANOTHER STATE SHALL BE SUBJECT TO DISCIPLINARY ACTION IN THIS 2,396
STATE FOR AN ACT COMMITTED IN THE OTHER STATE FOR WHICH THE 2,398
HOLDER OF A FOREIGN CERTIFICATE ISSUED BY THE OTHER STATE WOULD 2,399
BE SUBJECT TO DISCIPLINE IN THE OTHER STATE. 2,400
(4) THE HOLDER OF A FOREIGN CERTIFICATE WHO OFFERS OR 2,403
RENDERS ATTEST SERVICES OR USES A CPA TITLE OR DESIGNATION IN 2,404
50
THIS STATE PURSUANT TO THE PRIVILEGE AFFORDED BY DIVISION (I)(1) 2,405
OF THIS SECTION SHALL BE SUBJECT TO DISCIPLINARY ACTION IN THIS 2,407
STATE FOR ANY ACT THAT WOULD SUBJECT THE HOLDER OF A CPA 2,408
CERTIFICATE AND AN OHIO PERMIT TO DISCIPLINARY ACTION IN THIS 2,410
STATE.
Sec. 4701.16. (A) After notice and hearing as provided in 2,422
Chapter 119. of the Revised Code, the accountancy board may 2,423
discipline AS DESCRIBED IN DIVISION (B) OF THIS SECTION a 2,424
registrant or certificate holder as specified in division (B) of 2,427
this section PERSON HOLDING AN OHIO PERMIT, AN OHIO REGISTRATION, 2,429
A FIRM REGISTRATION, A CPA CERTIFICATE, OR A PA REGISTRATION OR 2,430
ANY OTHER PERSON WHOSE ACTIVITIES ARE REGULATED BY THE BOARD for 2,433
any one or any combination of the following causes: 2,434
(1) Fraud or deceit in registering as a public accounting 2,436
OBTAINING A firm, REGISTRATION OR in obtaining a CPA certificate 2,439
as a certified public accountant, or in obtaining a permit to 2,440
practice accounting pursuant to sections 4701.02 to 4701.19 of 2,441
the Revised Code, A PA REGISTRATION, AN OHIO PERMIT, OR AN OHIO 2,442
REGISTRATION; 2,443
(2) Dishonesty, fraud, or gross negligence in the practice 2,445
of public accounting; 2,446
(3) Violation of any of the provisions of section 4701.14 2,448
of the Revised Code; 2,449
(4) Violation of a rule of professional conduct 2,451
promulgated by the board under the authority granted by sections 2,452
4701.02 to 4701.22 of the Revised Code THIS CHAPTER; 2,453
(5) Conviction of a felony under the laws of any state or 2,455
of the United States; 2,456
(6) Conviction of any crime, an element of which is 2,458
dishonesty or fraud, under the laws of any state or of the United 2,459
States; 2,460
(7) Cancellation, revocation, suspension, or refusal to 2,462
renew authority to practice as a certified public accountant, a 2,463
public accountant, or a public accounting firm by any other 2,464
51
state, for any cause other than failure to pay registration fees 2,465
in such THAT other state; 2,466
(8) Suspension or revocation of the right to practice 2,468
before any state or federal agency; 2,469
(9) Failure of a certified public accountant or public 2,471
accountant HOLDER OF A CPA CERTIFICATE OR PA REGISTRATION to 2,473
obtain the AN OHIO permit required by section 4701.10 of the 2,475
Revised Code OR AN OHIO REGISTRATION, or THE failure of a public 2,476
accounting firm to register with the board pursuant to section 2,477
4701.04 of the Revised Code OBTAIN A FIRM REGISTRATION; 2,478
(10) Conduct discreditable to the public accounting 2,480
profession OR TO THE HOLDER OF AN OHIO PERMIT, OHIO REGISTRATION, 2,482
OR FOREIGN CERTIFICATE;
(11) FAILURE OF A PUBLIC ACCOUNTING FIRM TO COMPLY WITH 2,484
SECTION 4701.04 OF THE REVISED CODE. 2,485
(B) For any of the reasons specified in division (A) of 2,487
this section, the board may DO ANY OF THE FOLLOWING: 2,488
(1) Revoke or, suspend, OR REFUSE TO RENEW any CPA 2,491
certificate issued under section 4701.06 or 4701.061 of the 2,492
Revised Code OR PA REGISTRATION or any registration granted under 2,494
section 4701.04 or 4701.07 of the Revised Code OHIO PERMIT, OHIO 2,495
REGISTRATION, OR FIRM REGISTRATION;
(2) Revoke, suspend, or refuse to renew any permit issued 2,497
under section 4701.10 of the Revised Code DISQUALIFY A PERSON WHO 2,499
IS NOT A HOLDER OF AN OHIO PERMIT OR A FOREIGN CERTIFICATE FROM 2,501
OWNING AN EQUITY INTEREST IN A PUBLIC ACCOUNTING FIRM OR 2,502
QUALIFIED FIRM;
(3) Publicly censure a registrant REGISTERED FIRM or A 2,504
holder of a CPA certificate, A PA REGISTRATION, AN OHIO PERMIT, 2,509
OR AN OHIO REGISTRATION; 2,510
(4) Levy AGAINST A REGISTERED FIRM OR A HOLDER OF A CPA 2,514
CERTIFICATE, A PA REGISTRATION, AN OHIO PERMIT, OR AN OHIO 2,517
REGISTRATION a penalty OR fine not to exceed one thousand dollars 2,518
for each offense. Any fine shall be reasonable and in relation 2,519
52
to the severity of the offense. 2,520
(5) In the case of violations of division (A)(2) or (4) of 2,522
this section, require completion of remedial continuing education 2,523
programs prescribed by the board in addition to those required by 2,524
section 4701.11 of the Revised Code; 2,525
(6) In the case of violations of division (A)(2) or (4) of 2,527
this section, require the HOLDER OF A CPA certificate holder or 2,529
registrant, PA REGISTRATION, OR FIRM REGISTRATION to submit to a 2,531
quality PEER review by a professional committee designated by the 2,533
board, which committee shall report to the board concerning the 2,534
certificate holder's or registrant's THAT HOLDER'S compliance 2,535
with generally accepted accounting principles or, GENERALLY 2,536
ACCEPTED auditing standards, OR OTHER GENERALLY ACCEPTED 2,538
TECHNICAL STANDARDS;
(7) REVOKE OR SUSPEND THE PRIVILEGES TO OFFER OR RENDER 2,540
ATTEST SERVICES IN THIS STATE OR TO USE A CPA TITLE OR 2,541
DESIGNATION IN THIS STATE OF AN INDIVIDUAL WHO HOLDS A FOREIGN 2,542
CERTIFICATE.
(C) Where IF the board levies a fine against or suspends 2,544
the certificate of a person or registration of a person or firm 2,545
for a violation of division (A)(2) or (4) of this section, it may 2,546
waive all or any portion of the fine or suspension where IF the 2,547
HOLDER OF THE CPA certificate holder or registrant, PA 2,549
REGISTRATION, OR FIRM REGISTRATION complies fully with division 2,550
(B)(5) or (6) of this section. 2,551
Sec. 4701.19. (A) All statements, records, schedules, 2,560
working papers, and memoranda made by a certified public 2,561
accountant or public accountant incident to or in the course of 2,562
professional service to clients by the accountant, except reports 2,563
submitted by a certified public accountant or public accountant 2,564
to a client, shall be and remain the property of the accountant, 2,565
in the absence of an express agreement between the accountant and 2,566
the client to the contrary. No such statement, record, schedule, 2,567
working paper, or memorandum OF THAT NATURE shall be sold, 2,568
53
transferred, or bequeathed, without the consent of the client or 2,570
his THE CLIENT'S personal representative or assignee, to anyone 2,571
ANY PERSON other than one or more surviving partners or new 2,573
partners of the accountant.
(B) The statements, records, schedules, working papers, 2,575
and memoranda made by a certified public accountant or public 2,576
accountant incident to or in the course of performing an audit of 2,577
a public office or private entity, except reports submitted by 2,578
the accountant to the client, are not a public record as defined. 2,580
STATEMENTS, RECORDS, SCHEDULES, WORKING PAPERS, AND MEMORANDA 2,581
THAT ARE SO MADE IN AN AUDIT BY A CERTIFIED PUBLIC ACCOUNTANT OR
PUBLIC ACCOUNTANT AND THAT ARE IN THE POSSESSION OF THE AUDITOR 2,582
OF STATE ALSO ARE NOT A PUBLIC RECORD. AS USED IN THIS DIVISION, 2,583
"PUBLIC RECORD" HAS THE SAME MEANING AS in section 149.43 of the 2,585
Revised Code.
Sec. 4701.29. (A) THE ACCOUNTANCY BOARD MAY INVESTIGATE 2,588
WHETHER A PERSON HAS VIOLATED ANY PROVISION OF THIS CHAPTER OR 2,589
RULE ADOPTED UNDER IT BEFORE COMMENCING A DISCIPLINARY PROCEEDING 2,590
PURSUANT TO SECTION 4701.16 OF THE REVISED CODE OR TAKING LEGAL 2,591
ACTION PURSUANT TO SECTION 4701.18 OF THE REVISED CODE. AN 2,593
INVESTIGATION UNDER THIS SECTION IS NOT SUBJECT TO CHAPTER 119. 2,595
OF THE REVISED CODE. 2,597
THE BOARD MAY APPOINT A COMMITTEE OF BOARD MEMBERS OR STAFF 2,600
EMPLOYED BY THE BOARD TO CONDUCT AN INVESTIGATION.
NOTWITHSTANDING ANY STATUTE OR RULE TO THE CONTRARY, A BOARD 2,601
MEMBER WHO PARTICIPATES IN AN INVESTIGATION MAY PARTICIPATE 2,603
ACTIVELY IN ANY HEARING OR PROCEEDING TO THE SAME EXTENT AS A 2,604
BOARD MEMBER WHO DID NOT PARTICIPATE IN THE INVESTIGATION. 2,605
(B) DURING AN INVESTIGATION, THE BOARD MAY ADMINISTER 2,608
OATHS, ORDER THE TAKING OF DEPOSITIONS, ISSUE SUBPOENAS, COMPEL 2,609
THE ATTENDANCE AND TESTIMONY OF A PERSON AT A DEPOSITION, AND 2,610
COMPEL THE PRODUCTION OF ANY FORM OF DOCUMENTARY EVIDENCE OR 2,611
RECORD. SUBPOENAS AND ORDERS TO COMPEL UNDER THIS SECTION MAY BE 2,612
SERVED BY A DESIGNEE OF THE BOARD OR BY CERTIFIED MAIL, RETURN 2,613
54
RECEIPT REQUESTED, TO THE RESIDENCE OR PLACE OF BUSINESS OF THE 2,615
INDIVIDUAL, PROFESSIONAL ASSOCIATION, FIRM, CORPORATION,
PARTNERSHIP, SOLE PROPRIETORSHIP, LIMITED LIABILITY COMPANY, OR 2,617
OTHER BUSINESS ORGANIZATION NAMED IN THE SUBPOENA OR ORDER. 2,619
(C)(1) ANY WITNESS WHO APPEARS IN RESPONSE TO A SUBPOENA 2,622
OF THE BOARD MAY REQUEST, AND SHALL RECEIVE WITHIN A REASONABLE 2,623
TIME AFTER MAKING THE REQUEST, THE FEES AND MILEAGE PROVIDED FOR 2,624
WITNESSES IN CIVIL CASES IN THE COURTS OF COMMON PLEAS IN THIS 2,625
STATE.
(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOENA OR ORDER 2,627
ISSUED BY THE BOARD UNDER THIS SECTION, THE BOARD MAY APPLY TO 2,629
THE FRANKLIN COUNTY COURT OF COMMON PLEAS FOR AN ORDER COMPELLING 2,630
COMPLIANCE WITH THE BOARD'S SUBPOENA OR ORDER. UPON APPLICATION 2,631
BY THE BOARD AND UPON EVIDENCE OF THE PERSON'S FAILURE TO COMPLY, 2,632
THE COURT SHALL COMPEL THE APPEARANCE OF THE PERSONS OR THE 2,633
PRODUCTION OF THE DOCUMENTS NAMED IN THE BOARD'S SUBPOENA OR 2,634
ORDER IN ACCORDANCE WITH THE RULES OF CIVIL PROCEDURE. THE COURT 2,637
ALSO MAY ISSUE ANY CONTEMPT CITATION AND SANCTION THE COURT DEEMS 2,638
APPROPRIATE. 2,639
(D) THE INVESTIGATIVE PROCEEDINGS OF THE BOARD UNDER THIS 2,642
SECTION ARE NOT A PUBLIC RECORD UNDER SECTION 149.43 OF THE 2,643
REVISED CODE, ARE CONFIDENTIAL, AND ARE NOT SUBJECT TO DISCOVERY 2,644
IN ANY CIVIL OR ADMINISTRATIVE ACTION OR PROCEEDING. 2,645
Section 2. That existing sections 1111.01, 2925.01, 2,647
4701.01, 4701.04, 4701.06, 4701.061, 4701.07, 4701.10, 4701.11, 2,648
4701.12, 4701.13, 4701.14, 4701.16, and 4701.19 of the Revised 2,650
Code are hereby repealed. 2,651
Section 3. Section 2925.01 of the Revised Code is 2,653
presented in this act as a composite of the section as amended by 2,654
both Am. Sub. S.B. 66 and Am. Sub. S.B. 117 of the 122nd General 2,656
Assembly, with the new language of neither of the acts shown in 2,657
capital letters. Section 4701.16 of the Revised Code is 2,659
presented in this act as a composite of the section as amended by 2,660
both Am. Sub. S.B. 165 and Am. S.B. 316 of the 119th General 2,661
55
Assembly, with the new language of neither of the acts shown in 2,663
capital letters. This is in recognition of the principle stated 2,664
in division (B) of section 1.52 of the Revised Code that such 2,665
amendments are to be harmonized where not substantively 2,666
irreconcilable and constitutes a legislative finding that such is 2,667
the resulting version in effect prior to the effective date of 2,668
this act.