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Idaho Statutes
Idaho Statutes are updated to the website July 1 following the legislative session.
PROFESSIONS, VOCATIONS, AND BUSINESSES
CHAPTER 2
ACCOUNTANTS
54-214. Firm registration — Peer review. (1) The board shall register firms that make application and demonstrate their qualifications therefor in accordance with the following subsections of this section or to firms originally licensed in another state that establish an office in this state. A firm must be registered with the board in order to provide attest services or compilation reports or in order to use the titles "CPAs," "CPA firm," "LPAs" or "LPA firm." Firms must register with the board annually on such form and between such dates as the board may specify by rule. The board may charge a fee for each registration for initial issuance or renewal of a registration under this section as set forth in section 54-212, Idaho Code, and as prescribed by the rules of the board.
(2) An applicant for initial registration or renewal of a registration to practice under this section shall demonstrate that:
(a) Notwithstanding any other provision of law, a simple majority of the beneficial ownership of the firm belongs to holders of a certificate who are licensed in some state, and such partners, officers, shareholders, members or managers, whose principal place of business is in this state, and who perform professional services in this state, hold a valid certificate and license issued by this state. Although a firm may include nonlicensee owners the firm and its ownership must comply with rules promulgated by the board.
(b) Any firm may include nonlicensee owners provided that:
(i) The firm designates a licensee of this state, who is responsible for the proper registration of the firm and identifies that individual to the board.
(ii) All nonlicensees are active individual participants in the firm or affiliated entities.
(iii) The firm complies with such other requirements as the board may impose by rule.
(c) Any licensee who is responsible for supervising attest services or compilation reports or who signs or authorizes someone to sign a report on financial statements on behalf of the firm, shall meet the competency requirements of the professional standards for such services.
(3) Firms registered to practice under this section shall be required to register each office of the firm within this state with the board and to show that all attest and compilation reports rendered in this state are under the charge of a person holding a valid certificate and license issued by this state or some other state.
(4) A firm registering under this section shall list all states in which it has applied for or holds permits as a firm and list any past denial, revocation or suspension of a permit by any other state. Each firm registered under this section shall notify the board in writing, within thirty (30) days following any change in the identities of partners, officers, shareholders or members whose principal place of business is in this state, any change in the number or location of offices within this state, any change in the identity of the persons in charge of such offices, and any issuance, denial, revocation or suspension of a permit by any other state.
(5) Firms which fall out of compliance with the provisions of this section due to changes in firm ownership or personnel, after registration, shall take corrective action to bring the firm back into compliance as quickly as possible. The board may grant a reasonable period of time for a firm to take such corrective action. Failure to bring the firm back into compliance within a reasonable period as defined by the board may result in penalties as prescribed by board rule.
(6) As a condition of registration renewal under this section, the board, by rule, shall require firms to comply with peer review requirements as specified by rule. Such review shall include a verification that individuals in the firm who are responsible for supervising attest and compilation reports and who sign or authorize someone to sign a report on financial statements on the behalf of the firm meet the competency requirements set out in the professional standards for such services. The rules concerning peer review shall require:
(a) Peer reviews to be subject to oversight by an oversight body established by board rule which will periodically report to the board on the effectiveness of the review program under its charge, and provide to the board a listing of firms that have participated in a peer review program that is satisfactory to the board; and
(b) The confidentiality of client records involved in the peer review process shall be preserved in accordance with the accountancy rules.
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