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TITLE 10. OKLAHOMA ACCOUNTANCY BOARD Chapter Section 1. Administrative Operations 10:1-1-1 10. Rules of General Application [REVOKED] 10:10:1-1 15. Licensure and Regulation of Accountancy 10:15-1-1
CHAPTER 1. ADMINISTRATIVE OPERATIONS
Section 10:1-1-4. Responsibilities of the Board [REVOKED] 10:1-1-5. Open meetings [REVOKED] 10:1-1-6. Procedures regarding inquires to Board 10:1-1-6.1. Furnishing of copies 10:1-1-7. Compliance by registrants required [REVOKED] 10:1-1-7.1. Recording Board member attendance 10:1-1-7.2. Authorization to represent position of the Board 10:1-1-8. Promulgation, amendment or repeal of rules
[Authority: 59 O.S., Section 15.5] [Source: Codified 12-2-91]
(a) The Oklahoma Accountancy Act, found in Title 59 of the Oklahoma Statutes, beginning at Section 15.1 has been adopted by the Oklahoma Legislature for the purposes of protecting the public and to prevent the public from being mislead as to competency and ability to provide professional accounting services of an individual or firm offering such services. The Oklahoma Accountancy Board has been created for the purpose of implementing the laws and policies established by the Legislature. (b) In order to implement policies established by the Legislature regarding the practice of public accounting in Oklahoma and for the administration of the provisions of the Oklahoma Accountancy Act the rules of this Chapter have been adopted by the Board.
In addition to the terms defined in the Oklahoma Accountancy Act, the following words or terms shall be applied when implementing that Act and, when used in Title 10 shall have the following meaning, unless the context clearly indicates otherwise: "Person" means an entity or an individual.
The Board consists of seven (7) members who shall meet at least quarterly or more often as the business of the Board demands. The Board employs a full time staff to perform the administrative functions of the agency. The Board is a state agency and is therefore subject to Oklahoma laws regulating the procedures which must be followed by state agencies.
10:1-1-4. Responsibilities of the Board [REVOKED]
The Board maintains an office in Oklahoma City, Oklahoma. The Board office is open five (5) days a week, Monday through Friday, from 8:30 A.M. until 5:00 P.M. The Board office is closed on Saturday and Sunday and state legal holidays as set out in Section 82.1 of Title 25 of the Oklahoma Statutes.
10:1-1-5. Open meetings [REVOKED]
10:1-1-6. Procedures regarding inquiries to Board Inquiries regarding persons who have been granted or denied a certificate, license, or permit, procedures to obtain a license, certificate, or permit, complaints, suggestions, and general inquiries concerning the Oklahoma Accountancy Act and the rules implementing that Act may be made by calling or writing to the Board at the Board office. Members of the staff respond to questions where appropriate. In the event the inquiry concerns policy, and the Board has not previously made a policy determination applicable to that inquiry, the Board will respond or direct the response to be given by a staff member.
10:1-1-6.1. Furnishing of copies (a) Except as specifically exempted as a confidential record, official records of the Oklahoma Accountancy Board are subject to the Oklahoma Open Records Act, Sections 24A.1 through 24A.20 of Title 51 of the Oklahoma Statutes. (b) Copies of official records which are available to the public may be obtained from the Board office during regular business hours upon payment of a fee to cover the cost of providing copies of the requested records.
10:1-1-7. Compliance by registrants required [REVOKED]
10:1-1-7.1. Recording Board member attendance The Executive Director shall keep an attendance record for each Board member. The Board shall take action on each absence of a Board member to determine if it is unavoidable. The minutes of a Board meeting shall reflect the members absent, and the action by the Board on each absence.
10:1-1-7.2. Authorization to represent position of the Board Upon a majority vote, the Board may authorize one (1) of more of its members or members of the staff to speak for the Board regarding Board policies. Only a Board member or staff members so authorized may speak for the Board. Such authorization, the subject matter, and the vote shall be entered in the minutes.
The seal of the Board shall be used on certificates, licenses, orders of the Board, and any other documents requiring certification by the Board or the signature of one (1) or more members of the Board. The seal shall not be required for correspondence, memoranda, or other similar types of written documents.
10:1-1-8. Promulgation, amendment or repeal of rules (a) The Board may propose changes to the permanent rules of the Oklahoma Accountancy Board at any time as provided in the Oklahoma Administrative Procedures Act. (b) Any interested person may petition the Board requesting the promulgation, amendment, or repeal of a rule. (1) Such requests shall be: in writing, signed by the person submitting the request; state the rule to be reviewed or new rule proposed; and state the reasons in support of the request. (2) The request shall be submitted to the Board at its office. (3) The Board may consider the proposal at its next meeting. It may defer action pending the acquisition of additional information, conduct an investigation, or hold a hearing on the proposal. (4) The Board shall advise the petitioner of any meeting at which the proposal is to be considered and the final action taken, by the Board, on the proposal.
(a) An individual may file a request with the Board for a declaratory ruling with respect to the application or enforcement of a rule or statute. (1) The request shall be in writing and signed by the individual seeking the ruling. (2) The request shall state the rule or statute involved. (3) The request shall contain a concise statement of fact for which the ruling is sought. (b) The Board may consider the request at the next meeting. In the event the question has been resolved prior to a ruling, the individual filing the request shall be notified of the applicable ruling. (c) The Board may defer action pending an investigation or hearing. (d) The Board shall issue a written ruling or provide a written explanation to the individual filing the request as to why a ruling will not be issued. (e) Unless otherwise specifically stated in the ruling, a ruling issued by the Board pursuant to the provisions of this Section shall constitute a precedent for the purpose of subsequent rulings on the same question until revoked or overruled by either the Board or a court of competent jurisdiction. (f) Board rulings shall be indexed by the number of the statute or rule which the ruling interprets and shall be available for inspection by members of the public at the Board office.
(a) Confidential information obtained by the Board, as set forth in Section 15.6A of the Oklahoma Accountancy Act shall be unavailable to the general public. (b) An affected individual or entity who wishes to allow the inspection of the confidential information of that individual or entity by that individual's or entity's designated representative, or the public at large shall sign a release for such information in such form as prescribed and furnished by the Board. Such confidential information shall be made readily available during the normal business hours of the Board. (c) Minutes of all meetings, public hearings, and other records shall be maintained by the Board as a permanent record subject to public inspection during regular business hours. (d) All final written orders of the Board shall be maintained in such manner as to be available for public inspection. Such orders shall be available by reference to the name of the individual or entity to which the order is directed.
CHAPTER 10. RULES OF GENERAL APPLICATION [REVOKED]
CHAPTER 15. LICENSURE AND REGULATION OF ACCOUNTANCY
Subchapter Section 1. General Provisions 10:15-1-1 3. Requirements to Practice Public Accountancy 10:15-3-1 5. Examination Procedures 10:15-5-1 7. Application to Take an Examination 10:15-7-1 9. Examination Content 10:15-9-1 11. Grading of Examinations 10:15-11-1 13. Conditional Credit on Examination 10:15-13-1 15. Transfer of Examination Credits 10:15-15-1 17. Procedures Upon Failure to Apply for or Take Examination 10:15-17-1 19. Proctoring of Candidates Taking Examinations 10:15-19-1 21. Reciprocity 10:15-21-1 23. Registration 10:15-23-1 25. Permits 10:15-25-1 27. Fees 10:15-27-1 29. Continuing Professional Education 10:15-29-1 31. Standards for Continuing Professional Education 10:15-31-1 33. Quality Review [RESERVED] 35. Reinstatement 10:15-35-1 37. Enforcement Procedures 10:15-37-1 39. Rules of Professional Conduct 10:15-39-1 41. Child Support Statute 10:15-41-1 [Authority: 59 O.S., Section 15.5] [Source: Codified 7-1-93]
SUBCHAPTER 1. GENERAL PROVISIONS
Section
(a) The Oklahoma Accountancy Act, found in Title 59 of the Oklahoma Statutes, beginning at Section 15.1 has been adopted by the Oklahoma Legislature for the purposes of protecting the public and to prevent the public from being mislead as to competency and ability to provide professional accounting services of an individual or firm offering such services. The Oklahoma Accountancy Board has been created for the purpose of implementing the laws and policies established by the Legislature. (b) In order to implement the policy established by the Legislature regarding the practice of public accounting in Oklahoma and for the administration of the provisions of the Oklahoma Accountancy Act the rules of this Chapter have been adopted by the Board. (c) These rules, including the Rules of Professional Conduct, are applicable to candidates for certificates or licenses.
In addition to the terms defined in the Oklahoma Accountancy Act, the following words or terms shall be applied when implementing that Act and, when used in this Chapter shall have the following meaning, unless the context clearly indicates otherwise: "Act" means the Oklahoma Accountancy Act, Oklahoma Statutes, Title 59, ''15.1 through 15.37, dealing with the practice of public accountancy in Oklahoma. "Accounting information system (AIS)" means a subsystem of the management information system within an organization. The accounting information system collects and records financial and related information used to support management decision making and to meet both internal and external financial reporting requirements. An AIS system includes, but is not limited to, the accounting for transactions cycles such as revenues and receivables, purchases and payables, payroll, inventory, cash receipts and cash disbursements, and related data based systems. "Code" means Title 10 of the Oklahoma Administrative Code. "Compensation" means the receipt of any remuneration of any kind for public accounting services, including but not limited to salary, wages, bonuses or receipt of any tangible or intangible thing of value. "CPE" means continuing professional education. "Domicile" means an individual's place of residence. "Examining Authority" means the agency, board or other entity, of the District of Columbia, or any state or territory of the United States, entrusted with the responsibility for the governance, discipline, registration, examination and award of certificates, licenses or conditional credits for certified public accountants or public accountants and the practice of public accountancy in said jurisdictions. "Firm" means a professional entity which is legally constituted in accordance with Oklahoma statutes to engage in accountancy. "Generally accepted accounting principles" means the same as "Statement on Auditing Standards No. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles in the Independent Auditor's Report" adopted in 1992, and issued by the American Institute of Certified Public Accountants and subsequent amendments thereto. "Generally accepted auditing standards" means those standards which are used to measure the quality of the performance of auditing procedures and the objectives to be obtained by their use. Statements on Auditing Standards issued by the American Institute of Certified Public Accountants, Standards for Audit of Government Organizations, Programs, Activities and Functions issued by the Comptroller General of the United States, and other pronouncements having similar generally recognized authority, are considered to be interpretations of generally accepted auditing standards, and departures from such pronouncements, where they are applicable, must be justified by those who do not follow them. "Management information system (MIS)" means a computer or manual system, or a group of systems, within an organization that is responsible for collecting and processing data to ensure that all levels of management have the information needed to plan, organize, and control the operations of the organization and to meet both internal and external reporting requirements. "Office" means a building, room, or series of rooms which are owned, leased, or rented by an individual or firm for the purpose of holding out or carrying out the practice of public accounting. "Organization" includes a corporation, government or governmental subdivision or agency, business trust, estate, trust partnership, sole proprietorship, an association, two or more persons having a joint or common interest, an employer of CPAs or PAs, or any other legal or commercial entity. "Other compensation" means compensation, including remuneration based on a percentage of the amounts involved received by a registrant who is engaged in the practice of public accounting for other than the performance of professional services or for the sale or referral of products or services of third parties. "Other professional standards" means those standards as defined by Statements on Management Advisory Services, Statements on Responsibilities in Tax Practice and Statements on Standards for Accounting and Review Services, issued by the American Institute of Certified Public Accountants. "Period of professional engagement" means the period during which professional services are provided, with such period starting when the registrant begins to perform professional services requiring independence and ending with the notification of the termination of that professional relationship by the registrant or by the client. "Sole Proprietorship" means an unincorporated business enterprise which is owned entirely by one (1) certificate or license holder.
SUBCHAPTER 3. REQUIREMENTS TO PRACTICE PUBLIC ACCOUNTANCY
Section 10:15-3-1. Who may practice public accountancy 10:15-3-2. Certificate as a certified public accountant 10:15-3-3. License as a public accountant 10:15-3-4. Permits to practice
10:15-3-1. Who may practice public accountancy Public accounting may be practiced in this state by either an individual or a firm which holds a valid permit to practice issued by the Board. Registrants may not practice public accounting through an entity which does not hold a valid permit. The Board grants certificates, licenses, or permits to practice to applicants on condition that the registrants comply with the provisions of the Oklahoma Accountancy Act and the rules adopted for the implementation of that Act.
10:15-3-2. Certificate as a certified public accountant (a) A certificate may be issued to a qualified applicant only after the eligibility requirements have been met and the examination has been satisfactorily completed. (b) A certificate may be issued by reciprocity to an applicant upon satisfactorily meeting the requirements for such certificate.
10:15-3-3. License as a public accountant
(a) A license may be issued to a qualified applicant only after the eligibility requirements have been met and the examination has been satisfactorily completed. (b) A license may be issued by reciprocity to an applicant upon satisfactorily meeting the requirements for such license.
10:15-3-4. Permits to practice In addition to a license or certificate, any individual or entity wishing to practice public accounting in this state shall also be required to have a valid permit to practice.
SUBCHAPTER 5. EXAMINATION PROCEDURES
Section 10:15-5-1. Eligibility to take examination 10:15-5-2. Schedule of examinations 10:15-5-3. Notice of examinations 10:15-5-5. Prohibited acts regarding the examination process
10:15-5-1. Eligibility to take examination (a) An applicant shall comply with the requirements of Sections 15.8 and 15.9 of the Oklahoma Accountancy Act in order to be eligible to take the examination and to receive a certificate or license. (b) Written notice of eligibility to take an examination shall be given to an applicant at least thirty (30) calendar days prior to the commencement of the examination. (c) Final approval of an application for the examination shall not be granted more than ninety (90) days prior to the commencement of the examination applied for. Tentative approval may be communicated earlier to the applicant, but final approval shall be based only on updated application information and confirmation of eligibility which the Board shall require from the applicant.
10:15-5-2. Schedule of examinations Examination of candidates for certification and for licensing shall be held at such times and places as the Board designates.
10:15-5-3. Notice of examinations Notice of each examination shall be given by publication at least ninety (90) calendar days prior to the examination date. Such notices shall be sent to all daily and weekly newspapers listed in the Oklahoma Media Guide, published by the Oklahoma Press Association, on the date the notice is to be sent.
Failure of a candidate to furnish all information requested by the Board within the time frame set by the Board prior to commencement of the examination shall be grounds for denying such candidate admission to the examination.
10:15-5-5. Prohibited acts regarding the examination process Any candidate who commits one (1) or more of the following acts shall be subject to disciplinary action by the Board: (1) Giving false information to the Board in order to be eligible to take the examination. (2) Conduct which violates the standards of test administration. (3) Failure to cooperate with the testing officials. (4) Communicating with any other candidate during the administration of the examination. (5) Obtaining answers from another candidate during the administration of the examination. (6) Communicating answers or allowing another candidate to obtain an answer during the administration of the examination. (7) Possession of any books, notes, written or printed materials, personal calculators or data of any kind other than the distributed examination materials during the administration of the examination. (8) Impersonating a candidate for the purpose of taking the examination for that candidate. (9) Allowing another individual to take an examination for the candidate. (10) Communicating to another person the contents of the nondisclosed examination.
SUBCHAPTER 7. APPLICATION TO TAKE AN EXAMINATION
Section 10:15-7-1. Requirements for filing applications 10:15-7-2. Applicant experience equivalency 10:15-7-3. Applicant for reexamination 10:15-7-4. Evaluation of application 10:15-7-5. Denial of application 10:15-7-6. Board review of denied applications
10:15-7-1. Requirements for filing applications (a) Any individual seeking to take an examination to receive a certificate or license shall file an application to take the appropriate examination on such form as prescribed and furnished by the Board. (b) Applications must be received in the Board office no later than 5:00 P.M. on the last day for filing. (c) The last day for filing an application shall be no later than sixty (60) calendar days prior to the first day on which the examination applied for is to commence. When the 60th day falls on a Saturday, Sunday, or state holiday the date announced by the Board will be extended to include the next state working day.
10:15-7-2. Applicant experience equivalency
(1) Experience in the application of a variety of auditing procedures and techniques to the usual and customary financial transactions recorded in accounting records; preparation of audit work papers covering the examination of the accounts usually found in accounting records; and preparation of written explanations and comments on the findings of an examination and the content of accounting records. (2) Experience in preparation and analysis of financial statements together with explanations and notes thereon. (3) Experience in preparation of individual and corporate tax returns, tax planning, and contested tax matters. (4) Experience in the design of accounting systems, evaluation and design of internal control systems, analytical review of accounting records for the purpose of testing internal controls, or performance of operational audits for use in making management decisions based on accounting information. (b) The Board may verify the applicant's experience to the extent the Board deems necessary. (c) Subject to the dates set forth in Section 15.8 of the Act, a person seeking to qualify on the basis of self-employment shall satisfy the Board that the requirements have been met. The Board may verify applicant's self-employment experience to the extent the Board deems necessary. (d) In lieu of experience an applicant shall show to the satisfaction of the Board that the applicant has graduated from an accredited four-year college or university listed in the "Education Directory Colleges and Universities" as published by the Superintendent of Documents, Washington, D.C. (1) As to an applicant whose college credits are reflected in quarter hours, each quarter hour of credit shall be considered as two-thirds (2/3) of one (1) semester hour when determining semester hour credits necessary to qualify for examination or transfer of credits. (2) When determining eligibility based on educational qualifications the Board shall consider only educational credit reflected on official transcripts. (3) The specific requirement that each applicant shall have completed at least one (1) course in auditing may only be satisfied with an auditing course taken in-class for credit from an accredited two-year or four-year college or university listed in the "Education Directory Colleges and Universities" as published by the Superintendent of Documents, Washington, D.C. (e) When determining eligibility of an applicant for examination the Board shall not consider any combination of education and experience. (f) The Board will also consider an applicant who has graduated from a college or university located outside the United States if an educational evaluation performed by the Foreign Academics Credentialing Service (FACS) or another credentialing agency which is a member of the National Association of Credential Evaluation Services, Inc. certifies in writing that the applicant?s course of study and degree are equivalent to the requirements set forth in Section 15.8 of the Act.
10:15-7-3. Applicant for reexamination (a) A candidate who fails to receive a grade of seventy-five (75) on all subjects on the first examination taken may apply for reexamination. (b) Each applicant for reexamination must comply with applicable filing dates. (c) Each applicant for reexamination shall be reexamined on all subjects for which an applicant does not hold valid conditional credit at the time of the reexamination.
10:15-7-4. Evaluation of application Evaluation of qualifications and approval of applications to take an examination or for transfer of credits shall be performed by the Executive Director, subject to the limitations set forth in Subchapter 10:15-37-11.
10:15-7-5. Denial of application (a) Any applicant who has not met the applicable qualifications and whose application has been denied shall be notified in writing. The written notice shall include the reason(s) for the denial. (b) If an application is denied, the applicant may file a written request with the Board for a review of the denial. The applicant shall have the burden of demonstrating to the Board that the qualifications required by the Oklahoma Accountancy Act and the rules implementing the Act have been met. Any evidence submitted by the applicant shall be in documentary form.
10:15-7-6. Board review of denied applications (a) The Board shall consider all requests for review of denied applications. (b) The issues considered for review shall include, but not be limited to, the statutory eligibility requirements and rules upon which the denial of the application was based. (c) The applicant who has requested the review shall be notified in writing of the Board's decision. If the denial is sustained by the Board, the written notice shall include the reason(s) for sustaining the denial. (d) If the denial of the application is sustained, and the applicant is not satisfied with the decision of the Board, the applicant may request in writing a public hearing before the Board. Such request shall be granted only if the applicant can provide additional information to the Board which was not previously available to the Board at the time of the initial evaluation or review. Any additional evidence shall be in documentary form. If any additional evidence is to be presented by oral testimony, a written synopsis of that oral evidence shall accompany the request for a public hearing.
Each application to take an examination shall be accompanied by the required fee.
SUBCHAPTER 9. EXAMINATION CONTENT
Section 10:15-9-1. Content of examinations until May 1, 1994 [REVOKED] 10:15-9-2. Content of examinations 10:15-9-3. Examination documents 10:15-9-4. Confidentiality agreement required
10:15-9-1. Content of examinations until May 1, 1994 [REVOKED]
10:15-9-2. Content of examinations (a) The examination for certification as a certified public accountant shall be the Uniform Certified Public Accountant Examination prepared and graded by the American Institute of Certified Public Accountants. At the initial examination for certification as a certified public accountant the candidate shall take all four subjects. The examination subjects are: (1) Business Law and Professional Responsibilities; (2) Auditing; (3) Accounting and Reporting-Taxation, Managerial, and Governmental and Not-for-Profit Organizations; and (4) Financial Accounting and Reporting-Business Enterprises.
(1) Auditing; (2) Accounting and Reporting-Taxation, Managerial, and Governmental and Not-for-Profit Organizations; and (3) Financial Accounting and Reporting-Business Enterprises.
10:15-9-3. Examination documents Requests for return of any portion of an examination or examination answers shall be subject to the uniform procedures for administration of the examination.
10:15-9-4. Confidentiality agreement required All individuals having access to examination materials, including examiners, board members, and candidates, shall be required to agree in writing to hold the content of the examination confidential. Persons who breach the agreement will be subject to disciplinary action by the Board.
SUBCHAPTER 11. GRADING OF EXAMINATIONS
Section 10:15-11-2. Grade requirements 10:15-11-3. Successful completion of examination until May 1, 1994 [REVOKED] 10:15-11-4. Successful completion of examination 10:15-11-5. Ineligibility for reexamination [REVOKED] 10:15-11-6. Notification of grade 10:15-11-7. Procedures to request review of the grading process 10:15-11-9. Destruction of papers
The Board shall use the Uniform Certified Public Accountant Examination and Advisory Grading Service of the American Institute of Certified Public Accountants to grade the Uniform Certified Public Accountant Examination.
10:15-11-2. Grade requirements (a) A grade of seventy-five (75) in each required subject area shall be the minimum passing grade for purposes of earning conditional credit. (b) Subchapter 13 sets forth the minimum grade required to be earned in each subject at each examination in order to be granted conditional credit at the same examination.
10:15-11-3. Successful completion of examination until May 1, 1994 [REVOKED]
10:15-11-4. Successful completion of examination (a) When a candidate for a certificate has successfully passed all four (4) required subject areas of the examination within the applicable time period or number of examinations, the candidate shall be considered to have passed the examination as a whole. (b) When a candidate for a license has successfully passed the three (3) required subject areas of the examination within the applicable time period or number of examinations, the candidate shall be considered to have passed the examination as a whole.
10:15-11-5. Ineligibility for reexamination [REVOKED]
10:15-11-6. Notification of grade (a) Each candidate shall be advised in writing of the grade earned in each subject for which the candidate was examined. (b) On the day after the announced uniform grade mailing date for each examination, the names and addresses of successful candidates shall be made public.
10:15-11-7. Procedures to request review of the grading process (a) A candidate may request, through the Board, a review of his or her nonpassing examination papers by the Advisory Grading Service of the American Institute of Certified Public Accountants (AICPA). The review shall be conducted in accordance with the uniform procedures established by the AICPA for such reviews. (b) A review is the process whereby a candidate may verify the accuracy of the grading process. (c) The cost of the review, as established by the AICPA, shall be paid by the candidate.
(a) After the grades have been released, a candidate may have access to a copy of his or her nonpassing examination papers for the purpose of viewing the incorrectly answered questions in accordance with the procedures established by the American Institute of Certified Public Accountants (AICPA). (b) Such request must be made in writing through the Board. (c) The fees assessed by the AICPA in connection with the appeal procedure shall be paid by the candidate.
10:15-11-9. Destruction of papers The Board's designated agent shall destroy the examination papers ninety (90) days following the uniform grade mailing date for each examination.
SUBCHAPTER 13. CONDITIONAL CREDIT ON EXAMINATION
Section 10:15-13-1. Conditional credit for candidates for certificates 10:15-13-2. Conditional credit for candidates for licenses 10:15-13-3. Conversion of conditional credit beginning May 1, 1994 [REVOKED] 10:15-13-4. Requests for extension of time
10:15-13-1. Conditional credit for candidates for certificates (a) A candidate for a certificate shall be entitled to conditional credit upon receiving a passing grade of seventy-five (75) in two (2) or more of the required subjects on a single examination, provided the candidate complies with the provisions of Code 10:15-9-2(a). (b) After the first conditional credit is earned, conditional credit will be given for the successful completion of the examination in a single additional subject, provided the candidate took all subjects for which the candidate does not hold valid conditional credit. (c) All conditional credit shall lapse if the candidate: (1) does not take at least one (1) out of three (3) consecutive examinations given by the Board; or (2) does not pass all remaining subjects within the next six (6) examinations given by the Board following the examination at which the conditional credit was first earned. (d) Effective with the November 1999 examination, a candidate shall be entitled to conditional credit upon receiving a passing grade of seventy-five (75) in two (2) or more of the required subjects on a single examination, provided: (1) the candidate takes all subjects for which the candidate does not hold conditional credit; and (2) the candidate attained a minimum grade of 50 in each subject examined at the same examination. (e) Effective with the November 1999 examination, after the first conditional credit is earned, conditional credit will be given for the successful completion of the examination in a single additional subject. (f) Effective with the November 1999 examination, all conditional credit shall lapse if the candidate: (1) does not take at least one (1) out of three (3) consecutive examinations given by the Board; or (2) does not pass all remaining subjects within the next six (6) examinations given by the Board following the examination at which the conditional credit was first earned. (g) Upon submission of an application to take an examination for a license, and upon successful completion of the examination for the license, an applicant may not request that those conditional credits be applied toward the subjects necessary to obtain a certificate.
10:15-13-2. Conditional credit for candidates for licenses (a) A candidate for a license shall receive conditional credit when the candidate has received a passing grade of seventy-five (75) in at least one (1) of the three (3) required subjects on a single examination, provided the candidate complies with the provisions of Code 10:15-9-2(b). (b) After the first conditional credit is earned, conditional credit will be given for the successful completion of the examination in one or more single other required subjects, provided the candidate took all subjects for which the candidate does not hold valid conditional credit. (c) All conditional credit shall lapse if the candidate: (1) does not take at least one (1) out of three (3) consecutive examinations given by the Board, or (2) does not pass all subjects within the six (6) consecutive examinations following the examination at which the conditional credit was first earned. (d) A candidate who has passed the subject area of Auditing and the subject area of Accounting and Reporting-Taxation, Managerial, and Governmental and Not-for-Profit Organizations and the subject area of Financial Accounting and Reporting-Business Enterprises, may request that a license be issued to the candidate. (1) Such request shall be made in writing within three (3) years from the date that such subjects were passed. (2) The conditional credit for certification which such individual may hold on the date the license is issued will remain valid but shall be subject to lapse in the same manner as provided for other holders of conditional credits. (e) Effective with the November 1999 examination, a candidate shall receive conditional credit when the candidate has received a passing grade of seventy-five (75) in at least one (1) of the three (3) required subjects on a single examination, provided: (1) the candidate takes all subjects for which the candidate does not hold conditional credit; and (2) the candidate attained a minimum grade of 50 in each subject examined at the same examination. (f) Effective with the November 1999 examination, after the first conditional credit is earned, conditional credit will be given for the successful completion of the examination in a single other subject. (g) Effective with the November 1999 examination, all conditional credit shall lapse if the candidate: (1) does not take at least one (1) out of three (3) consecutive examinations given by the Board; or (2) does not pass all subjects within the next six (6) examinations given by the Board following the examination at which the conditional credit was first earned.
10:15-13-3. Conversion of conditional credit beginning May 1, 1994 [REVOKED]
10:15-13-4. Requests for extension of time (a) A candidate may apply for an extension of the time limits set by this Subchapter if the candidate is called to active military service or becomes incapacitated as a result of illness or injury. (b) The candidate shall file a written request with the Board for an extension after receiving the call to active military service and shall furnish a copy of the orders to active military service or furnish written evidence of incapacitation or injury. (c) Within sixty (60) calendar days after the candidate is discharged from active military service, the candidate shall furnish the Board with copies of the discharge orders. The candidate shall then be required to take one (1) of the next two (2) examinations for which the candidate is eligible following the candidate's discharge from military service or rehabilitation from illness or injury.
SUBCHAPTER 15. TRANSFER OF EXAMINATION CREDITS
Section 10:15-15-1. Application for transfer of credits 10:15-15-2. Requirements to qualify for transfer of credits
10:15-15-1. Application for transfer of credits (a) An individual who has taken the Uniform Certified Public Accountant Examination in the District of Columbia or any state or territory of the United States may apply to the Board for the transfer of conditional credits. (b) The application shall be in such form as the Board prescribes. (c) The applicant shall submit written verification of the valid conditional credits from the examining authority responsible for administering the examination at which such credits were earned. (d) The applicant shall meet all other eligibility requirements established to take the examination in Oklahoma.
10:15-15-2 . Requirements to qualify for transfer of credits (a) Upon the filing of an application to transfer conditional credits on the Uniform Certified Public Accountant Examination, the Board shall accept and transfer such credits, if at the time the application to transfer credits is filed with the Board, the applicant has met the following requirements: (1) The credits were earned by the applicant while taking an examination administered by the examining authority responsible for conducting such examinations pursuant to the laws of the District of Columbia or any state or territory of the United States. (2) The applicant was examined and passed all subjects of the Uniform Certified Public Accountant Examination in the same manner as required for Oklahoma candidates. (3) All credits were earned within the seven (7) examinations immediately preceding the date the application to transfer credits is filed with the Board. (b) Applicants for the transfer of credits shall comply with the announced application filing dates for the examination. (c) In the case of an applicant who has met all eligibility requirements and seeks to transfer conditional credits, the acceptance of such credits by the Board shall result in the applicant being approved to take the examination in the subjects for which no conditional credit was transferred. (d) In the case of an applicant for a certificate who has met all eligibility requirements and seeks to transfer the four (4) conditional credits, the acceptance of such credits by the Board shall result in the issuance of a certificate to the applicant. (e) In the case of an applicant for a license who has met all eligibility requirements and seeks to transfer the three (3) conditional credits, the acceptance of such credits by the Board shall result in the issuance of a license to the applicant.
SUBCHAPTER 17. PROCEDURES UPON FAILURE TO APPLY FOR OR TAKE EXAMINATION
Section 10:15-17-1. Processing fee to retake examination 10:15-17-2. Failure to apply to take s\ucceeding examinations 10:15-17-3. Reestablishment of eligibility
10:15-17-1. Processing fee to retake examination If for any reason a candidate who has qualified to take an examination fails to take the examination, a processing fee shall be required with the next application to take an examination.
10:15-17-2. Failure to apply to take s\ucceeding examinations If a candidate fails to take at least one (1) examination within the next three (3) examinations, that candidate shall no longer be considered a current candidate and shall forfeit all fees paid. No further notices of examination shall be sent to the candidate.
10:15-17-3. Reestablishment of eligibility An applicant shall be required to reapply as a new candidate and reestablish eligibility, after the individual is determined to no longer be a current candidate. On and after July 1, 2003 an applicant who seeks to reestablish eligibility to take the examination shall be required to comply with the provisions of Section 15.8D of the Act.
SUBCHAPTER 19. PROCTORING OF CANDIDATES TAKING EXAMINATIONS
Section 10:15-19-1. Request for Board proctoring service 10:15-19-3. Limitations and restrictions on proctored examinations 10:15-19-4. Oklahoma candidates taking examination in other states
10:15-19-1. Request for Board proctoring service Candidates for examination from other states may be permitted to take the examination under the proctorship of the Board pursuant to a written request received from the examining authority of the District of Columbia, another state, territory of the United States or their designated agents.
A nonrefundable processing fee for providing proctoring services by the Board shall be paid by the candidate prior to the examination.
10:15-19-3. Limitations and restrictions on proctored examinations (a) Failure of a candidate to pay the required fee or to furnish all information requested by the Board within the time parameters set by the Board prior to commencement of the examination shall be grounds for denying such candidate admission to the examination. (b) Upon payment of the required fee and the timely furnishing of all information requested by the Board, proctoring of candidates taking examinations shall be restricted only by the availability of seating space at the examination sites.
10:15-19-4. Oklahoma candidates taking examination in other states (a) Applicants, for a certificate or license, from Oklahoma may not request to take the initial examination in another state. (b) An applicant for reexamination may request the Board to authorize the candidate to take an examination in another state only if such candidate provides evidence acceptable to the Board of: (1) the candidate or the spouse of the candidate is attending school in another state, district or territory of the United States; (2) the candidate is on a temporary job assignment incident to the regular, full time employment of the candidate within this state; or (3) the candidate, or the spouse of the candidate, is on active military duty stationed outside this state and such candidate or spouse maintains Oklahoma as his or her domicile or military home of record. (c) If eligible, the Board shall issue its request in writing to the other examining authority for an applicant. (d) A candidate applying to take the examination in another state shall file the application with the Oklahoma Accountancy Board to take the examination and the request to take the examination in another state on or before the final application filing date. In addition to complying with the Oklahoma Accountancy Act and the rules implementing that Act, the candidate shall comply with all state laws and rules of the jurisdiction where the candidate will be taking the examination. If for any reason satisfactory arrangements for taking the examination in another state cannot be made the candidate shall be permitted to take the examination at one of the Oklahoma sites. (e) Applicants shall be solely responsible for any fees required to be paid to the other examining authority to provide proctoring.
Section 10:15-21-1. Application for certificate or license 10:15-21-2. Basis for reciprocal certificate or license [Revoked] 10:15-21-3. Evaluation of qualifications 10:15-21-4. Denial of application 10:15-21-5. Review of applications by Board
10:15-21-1. Application for certificate or license An applicant seeking to obtain a certificate, license, or permit to practice public accounting in this state who holds a valid certificate or license pursuant to the laws of the District of Columbia or any state or territory of the United States shall provide the Board with: (1) written proof of test scores received on all examinations from the other examining authority; (2) written information that the applicant met or currently meets all Oklahoma requirements for eligibility as provided by statute,' 15.13, Title 59, Oklahoma Statutes and these rules; (3) a certificate of good standing from the examining authority of the district, state or territory who issued the certificate or license upon which the reciprocal certificate or license is based; and (4) written proof of having met all Oklahoma continuing professional educational requirements.
10:15-21-2. Basis for reciprocal certificate or license [REVOKED]
10:15-21-3. Evaluation of qualifications Evaluation of qualifications for approval of the application for a reciprocal certificate or license shall be performed by the Executive Director.
10:15-21-4. Denial of application (a) Any applicant who has not met the applicable qualifications and whose application has been denied shall be notified in writing. The written notice shall include the reason(s) for the denial of the application for reciprocity. (b) If an application is denied, the applicant may file a written request with the Board for a review of the denial. The applicant shall have the burden of demonstrating to the Board that the qualifications required by the Oklahoma Accountancy Act and by the rules implementing that Act have been met. Any evidence submitted by the applicant with the written request shall be in documentary form.
10:15-21-5. Review of applications by Board (a) The Board shall consider all requests for review of denied applications for reciprocity. (b) The issues considered for review shall include but not be limited to, the statutory eligibility requirements and rules upon which the denial of the application was based. (c) The applicant who has requested the review shall be notified in writing of the decision by the Board. If the denial is sustained by the Board, the written notice shall include the reason(s) for sustaining the denial. (d) If the denial of an application is sustained, and the applicant is not satisfied with the decision of the Board, an applicant may request, in writing, a public hearing before the Board. Such request shall be granted only if the applicant can provide additional information to the Board which was not previously available to either the Executive Director or the Board at the time of the initial evaluation or review. Any additional evidence shall be in documentary form. If any additional evidence is to be presented by oral testimony, a written synopsis of that oral evidence shall accompany the request for a public hearing. (e) If the Board grants a public hearing to the applicant, the hearing may be held in conjunction with the next regular meeting of the Board or at a special meeting of the Board.
Each application for a reciprocal certificate or license shall be accompanied by all applicable fees.
Section 10:15-23-1. Registration of individuals 10:15-23-2 . Registration of firms
10:15-23-1. Registration of individuals (a) On or before June 30, all individuals shall register biennially as provided in Section 15.14 of the Oklahoma Accountancy Act and shall file a registration statement with the Board in such form and providing such information as the Board shall prescribe. (b) All registration statements shall be accompanied by a registration fee.
(2) In the case of a registrant who is disabled beyond gainful employment, as provided in Section 15.14 of the Oklahoma Accountancy Act, the registration fee may be waived for the period of disability. (3) All requests for a reduction or waiver of the registration fee shall be addressed to the Board, in writing. (4) The Board shall use its discretion in determining the conditions required for retirement or disability. (c) In addition to the regular registration fee paid by an individual, there shall be a fee for registering after close of business on June 30 but within twelve (12) months after the lapse date of the certificate or license. (d) In addition to the regular registration fee paid by an individual, there shall be a fee for registering later than twelve (12) months following the lapse date of the certificate or license. (e) Evaluation of qualifications and approval of registrations filed by individuals shall be, performed by the Executive Director, subject to the review and supervision of the Board. (f) Denial of individual registrations shall be by the Board. (g) During the period when a certificate or license is suspended by the Board, the suspended registrant shall be required to file annually with the Board an informational report on a form prescribed by the Board. No fee shall be required with such filing.
10:15-23-2. Registration of firms (a) On or before August 31 of each year all firms of certified public accountants and all firms of public accountants qualified to register shall file a registration statement with the Board in such form and providing such information as the Board shall prescribe. (b) The registration statement filed on behalf of a firm of certified public accountants shall be made by a partner or shareholder who holds a valid Oklahoma certificate. (c) The statement filed on behalf of a firm of public accountants shall be made by a partner or shareholder who holds a valid Oklahoma license or certificate. (d) Evaluation of qualifications and approval of registrations filed by firms shall be performed by the Executive Director, subject to the review and supervision of the Board. (e) Denial of firm registrations shall be by the Board. (f) Except for sole proprietorships, all registration statements filed on behalf of a firm shall be accompanied by an annual registration fee, as provided in Subchapter 27. (g) All statements filed on behalf of a firm shall be accompanied by the registration and all applicable permit fees for the firm, as provided in Subchapter 27.
Section 10:15-25-5. Transitional period for individuals entering and re-entering public practice
Each permit shall have a maximum term of one (1) year.
(a) All permits shall bear a date of issue based on the date the application for a permit is received in the office of the Board unless such registrant has been granted an exception by the Board. Permits renewed on a timely basis will be effective July 1 for individuals and September 1 for firms. (b) If an application for a permit which has been returned to the holder for correction or completion of information is returned to the Board in acceptable form within thirty (30) calendar days of the first denial, the permit shall bear the date on which the permit application was first received in the office of the Board. Failure to resubmit the corrected application within the thirty-day period shall cause the permit to be dated with the date the acceptable application is received in the office of the Board. (c) Permits applied for and issued after July 1, for individuals; and after September 1, for partnerships and professional corporations; and except for (a) and (b) above, shall bear an issue date of the day such application for a permit is accepted in the office of the Board.
(a) An individual permit shall have a maximum term of one (1) year and shall expire on June 30 following the date of issuance. (b) Each registrant who is engaged in the practice of public accounting in this state is required to hold a valid permit. In order to obtain a permit, an individual must have a valid certificate or license, be properly registered, pay all applicable fees, and comply with the continuing education requirement unless the registrant is exempt from CPE compliance as provided in Code 10:15-29-3. (c) Any registrant who performs any of the services described in Section 15.1A(27) of the Oklahoma Accountancy Act, regardless of whether such services are rendered for compensation, must have a permit if they are holding out as a CPA or PA in any manner as described in the Act. (d) Any registrant who prepares tax returns for the public, whether or not such returns are prepared for compensation, will be considered to be holding out if the return is signed with the CPA or PA designation or if such designation is used in any manner associated with the tax practice. (e) Any certified or licensed person employed by a firm located outside this state shall be required to hold a valid permit in order to serve clients in this state unless such service is incidental to other responsibilities in the firm or involves the internal review procedures of the firm. (f) The application for renewal of a permit shall be filed in the office of the Board prior to the expiration of the permit currently held and no later than June 30. Forms for this purpose shall be mailed by the Board in May of each year to each individual currently registered with the Board and holding a permit. (g) At the time the application for a permit is filed, the registrant shall attest to compliance with the continuing education requirement for the applicable compliance period as specified by the Board. (h) An application for a permit may be filed at any time during the year by a registrant who is entering or reentering the practice of public accounting. Such registrant shall attest to compliance with the applicable continuing education requirement. (i) A registrant who engages in the practice of public accounting only during certain times of the year shall maintain a valid permit for an entire permit period. (j) The fees to obtain a permit to practice shall accompany the application. The fees for the renewal of permits are set forth in Subchapter 27. (k) Renewal permit, for purposes of this Subchapter, refers to a permit applied for prior to the expiration of the current permit.
(a) Each firm permit shall have a maximum term of one (1) year and shall expire on August 31 following the date of issuance. (b) The application for renewal of a permit shall be filed in the office of the Board prior to the expiration of the permit currently held and no later than August 31. (c) Each firm applying for a permit to practice as a certified public accountant firm or as a public accountant firm shall submit a written affidavit signed by an owner, partner, member or shareholder demonstrating compliance with the requirements set out in Section 15.15A of the Oklahoma Accountancy Act and attesting that each partner, shareholder, owner, member and certified or licensed employee of the firm serving Oklahoma clients holds a valid individual permit. Such affidavit shall be acknowledged before a Notary Public by an owner or manager of said firm. (d) Forms to renew the permits shall be mailed by the Board in July of each year to each firm registered with the Board. (e) A firm is required to hold a valid permit if that firm is serving Oklahoma clients from outside this state unless such service is incidental to other responsibilities in the firm or involves the internal review procedures of the firm. (f) Each firm office which serves Oklahoma clients shall be required to hold a separate permit and pay the applicable fee for each office permit.
(c) Approval by the Board of such request(s) shall authorize the registrant to practice public accounting during the time period(s) referred to in this Subchapter.
Section 10:15-27-1. Initial application to take CPA examination 10:15-27-2. Initial application to take PA examination 10:15-27-4. Examination processing fee 10:15-27-5. Transfer of conditional credits 10:15-27-7. Reciprocal application 10:15-27-11. Duplicate certificate or license
10:15-27-1. Initial application to take CPA examination Each application submitted for the first time to take the examination to obtain a certificate shall be accompanied by a fee of One Hundred Twenty Dollars ($120.00).
10:15-27-2. Initial application to take PA examination Each application submitted for the first time to take the examination to obtain a license shall be accompanied by a fee of Ninety Dollars ($90.00).
(a) Each application for reexamination for a certificate shall be accompanied by a fee of Thirty Dollars ($30.00) for each subject in which the applicant is to be reexamined. (b) Each application for reexamination for a license shall be accompanied by a fee of Thirty Dollars ($30.00) for each subject in which the applicant is to be reexamined.
10:15-27-4. Examination processing fee If for any reason a candidate fails to take an examination for which that candidate has been approved, a processing fee of Fifty Dollars ($50.00) shall be required with the next application to take an examination.
10:15-27-5. Transfer of conditional credits The application fee required with an application to transfer conditional credits shall be One Hundred Twenty Dollars ($120.00).
The Board shall charge each candidate to be proctored a nonrefundable processing fee of One Hundred Dollars ($100.00) per examination.
10:15-27-7. Reciprocal application Each application shall be accompanied by a fee of One Hundred Twenty Dollars ($120.00).
(a) The registration fee for an individual shall be Twenty-Five Dollars ($25.00) per year. (1) In addition to the regular registration fee there shall be a fee for registering after June 30, but within twelve (12) months after the lapse date of the certificate or license, of Fifty Dollars ($50.00). (2) In addition to the regular registration fee, there shall be a fee for registering later than twelve (12) months following the lapse date of the certificate or licensed One Hundred and Fifty Dollars ($150.00). (b) An individual who has reached the age of sixty-five (65) shall pay a registration fee of Ten Dollars ($10.00) per year. In addition to the regular registration fee there shall be a fee for registering after June 30, but within twelve (12) months after the lapse date of the certificate or license, of Twenty Dollars ($20.00). (c) The registration fee for a firm, except a sole proprietorship, of certified public accountants or public accountants shall be Twenty Five Dollars ($25.00) per year.
(a) Before June 30 of each year the permit fee to renew an individual permit shall be Fifty Dollars ($50.00). (b) After June 30, the permit fee to renew an individual permit which was subject to renewal before the immediately preceding June 30 shall be One Hundred Dollars ($100.00). (c) The fee for an individual permit which is not a renewal permit shall be Fifty Dollars ($50.00). (d) A fee of Fifty Dollars ($50.00) shall be paid at the time a firm, except a sole proprietorship, which provides public accounting services to Oklahoma clients applies for a permit. Other than sole proprietorships, each office of a firm that provides public accounting services to Oklahoma clients shall pay the annual Fifty Dollar ($50.00) permit fee.
The application fee required with an application for reinstatement shall be One Hundred Dollars ($100.00).
10:15-27-11. Duplicate certificate or license There shall be a fee of One Hundred and Fifty Dollars ($150.00) for a duplicate certificate or license except for changes of name or the physical destruction or mutilation of a certificate, then the fee shall be Ten Dollars ($10.00).
(a) There shall be a charge of Twenty-Five Cents ($.25) per page for copies of records of the Board, except that a single copy of a final order from an administrative hearing or a consent order may be furnished at no charge in response to a request from a member of the public. (b) In the event a request for copies is for a commercial purpose or would cause disruption of the performance of the regular duties of the Board or Board staff, there shall be an additional charge computed and assessed based on the cost of personnel necessary to accomplish the copying request.
SUBCHAPTER 29. CONTINUING PROFESSIONAL EDUCATION
Section 10:15-29-1. Continuing professional education compliance period [REVOKED] 10:15-29-1.1. Burden of proof [NEW] 10:15-29-2. CPE transition provisions for renewal of permit [REVOKED] 10:15-29-3. CPE compliance period for new CPAs and PAs 10:15-29-4. Required CPE for issuance of a permit 10:15-29-6. Reporting and documentation by registrants 10:15-29-7. Qualifying subjects 10:15-29-9. Penalties for noncompliance with the CPE requirement
10:15-29-1. Continuing professional education compliance period [REVOKED]
The burden of proof rests solely upon the registrant to demonstrate to the satisfaction of the Board, in accordance with the Act, that all continuing education courses reported meet all of the requirements as to content and subject matter related to the profession or practice of public accounting.
10:15-29-2. CPE transition provisions for renewal of permit [REVOKED]
10:15-29-3. CPE compliance period for new CPAs and PAs (a) The term "new CPAs and PAs" refers to individuals who are certified or licensed in Oklahoma as the result of successfully completing the examination, including those individuals certified or licensed as the result of transferring all credits earned on an examination from another district, state or territory of the United States. (b) When a new CPA or PA becomes certified or licensed as a result of successfully completing the examination, including those individuals who are certified or licensed as the result of transferring all credits earned on an examination from another district, state or territory of the United States, the initial continuing education compliance period to obtain a permit shall begin on January 1 following the date of certification or licensing.
10:15-29-4. Required CPE for issuance of a permit (a) An individual who applies for a permit to practice public accounting shall comply with the CPE requirements prior to filing the application for a permit. (b) An individual who applies for a permit, other than a new CPA, new PA, or reciprocal applicant shall document that the applicant has: (1) completed a minimum of forty (40) hours of qualifying CPE within the calendar year immediately preceding the filing of the application for the permit; or (2) completed a minimum of forty (40) hours of qualified CPE within the three hundred sixty-five (365) day period immediately preceding the date of the application for the permit. (c) Unless exempted by 10:15-29-10, every permit holder shall complete at least two (2) hours of professional ethics CPE as a part of the 40 hour requirement. The ethics CPE requirement shall be effective for compliance periods beginning within calendar year 2001 and for each compliance period thereafter. (d) An individual other than a new CPA or PA who applies for a permit after the permit has been suspended or revoked, or has lapsed, shall have completed forty (40) hours of qualifying CPE within the three hundred sixty-five (365) day period immediately preceding the date of the application for a permit. (e) Regardless of the time frame in which CPE credit is earned, once credit has been claimed to the Board toward the issuance of a permit to practice, such credit may not be claimed again.
(a) An individual who applies for a certificate or license by reciprocity shall comply with the CPE requirements provided for in the Oklahoma Accountancy Act and the rules implementing that Act, except that an applicant who is not practicing public accounting shall not be required to report CPE in conjunction with the application for reciprocity. (b) An individual who applies for an initial permit shall document that the applicant has: (1) completed a minimum of forty (40) hours of qualifying CPE within the calendar year immediately preceding the filing of the application for the reciprocal certificate or license; or (2) completed a minimum of forty (40) hours of qualified CPE within the three hundred sixty-five (365) day period immediately preceding the date of the application for the reciprocal certificate or license. (c) An applicant who is unable to meet the criteria of this subsection to apply for the initial permit and who meets the criteria established by Code 10:15-25-5 may qualify for the initial permit utilizing the transitional period set forth therein. (d) The applicant shall have completed forty (40) hours of qualified CPE before the end of the initial compliance period.
10:15-29-6. Reporting and documentation by registrants (a) Each applicant seeking to obtain a permit shall certify, in writing, on a form prescribed by the Board, information regarding the CPE hours claimed for credit in the CPE compliance period. (b) CPE hours claimed for credit may be claimed only for the compliance period in which the course was completed and credit granted, except as otherwise specifically provided for by rule. (c) The reporting form shall contain information demonstrating that not less than forty (40) hours of CPE was completed during each calendar year compliance period or three hundred sixty-five (365) day compliance period, whichever is chosen by the registrant. (d) At the time of completing each course, the registrant shall obtain a letter or certificate attesting to completion of the course from the sponsor of the course. Such letters or certificates shall be retained for a period of five (5) years after the end of the compliance period in which the program is completed and shall include the specific information set forth in Code 10:15-31-5(a). (e) Participants in structured CPE programs shall also retain a brochure or such other promotional material which reflects the content of a course in the event the participant is requested by the Board to substantiate the course content.
10:15-29-7. Qualifying subjects (a) Acceptable CPE subjects include the fields of study which enhance a CPA's or PA's ability to serve and deliver public accounting services to clients such as accounting and auditing, advisory services, specialized knowledge and applications, practice management, personal development, taxation, and professional ethics. Other subjects may be acceptable to the Board if such subjects relate to the practice of public accounting and maintain or increase the technical and nontechnical professional skills of the applicant for a permit. (b) The responsibility for demonstrating to the satisfaction of the Board that nontechnical courses maintain or increase the professional skills of the individual rests solely with the permit holder or the applicant for a permit. Failure to demonstrate to the satisfaction of the Board that a nontechnical CPE course will maintain or increase professional competence will result in the disallowance of credit for such course.
(a) The Board may periodically conduct verification of the CPE credit reported by registrants. (b) Such verification shall be conducted by requesting the registrant to submit to the Board the documentation and evidence required to be retained by the registrant. (c) The Board may revoke permits or deny applications for permits for deficiencies in the documentation submitted or for failure to submit the documentation and evidence required to be retained. (d) If a CPE course is not accepted for credit, the permit holder will be notified and the Board may grant a period of time for the permit holder to correct the deficiency.
10:15-29-9. Penalties for noncompliance with the CPE requirement (a) A false or misleading statement by an individual or firm permit holder or an applicant for a permit relating to information about CPE credits shall constitute a cause for disciplinary action pursuant to the provisions of the Oklahoma Accountancy Act. (b) Failure of an individual permit holder who is engaged in the practice of public accounting serving Oklahoma clients, to file an acceptable application for renewal of a permit by July 1, shall be subject to disciplinary action pursuant to the provisions of subsection A of Section 15.14A of the Oklahoma Accountancy Act.
(a) The Board may grant partial or complete exemptions from or modifications of CPE requirements for: (1) Retirement; (2) Military Service; (3) Disability; or (4) Other good cause as determined by the Board on an individual basis. (b) Registrants who are not engaged in the practice of public accounting and who elect not to hold a permit are exempt from the CPE requirement.
SUBCHAPTER 31. STANDARDS FOR CONTINUING PROFESSIONAL EDUCATION
Section 10:15-31-1. General standards for structured CPE 10:15-31-2. Standards for structured CPE program development 10:15-31-3. Standards for structured CPE program presentation 10:15-31-4. Standards for structured CPE program measurement 10:15-31-5. Standards for structured CPE program reporting by participant 10:15-31-6. Documentation and record-keeping standards for CPE sponsors
10:15-31-1. General standards for structured CPE (a) The subject matter, content, presentation, measurement, and reporting of CPE courses must meet the standards set forth by rule to qualify for credit pursuant to the provisions of the Oklahoma Accountancy Act. (b) Permit holders shall participate in structured programs of learning that maintain or increase their professional competence and ability to deliver public accounting services. (1) While permit holders participate in a wide variety of learning activities, CPE credit is allowed only for structured programs of learning. (2) An individual performing services of a professional nature needs to have a broad range of knowledge, skills, and abilities which enhance a registrant's ability to serve and deliver public accounting services to clients. The concept of professional competence shall be interpreted by the Board broadly. Programs contributing to the development and maintenance of nontechnical professional skills which relate to the practice of public accounting shall also be recognized as acceptable CPE. (c) It is the responsibility of each permit holder to comply with all applicable CPE requirements. A permit holder may also have to meet CPE requirements of other jurisdictions, in order to engage in the practice of public accounting for Oklahoma clients. (d) CPE program sponsors have a responsibility to comply with standards established by the Board.
10:15-31-2. Standards for structured CPE program development (a) Sound administration, adequate resources, competent supervision, and an effective and supportive organizational structure are necessary elements in the design, development, implementation, and monitoring of CPE programs. For each CPE program sponsor, there shall be an identifiable administrator charged with demonstrating compliance with these standards. (b) CPE program developers shall state learning objectives and specify the level of knowledge of the program. (c) Learning objectives shall specify what participants will be able to perform upon completing the program. A program may have more than one (1) objective, but each objective shall be written to be consistent with the specified level of knowledge of the program. Levels of knowledge shall be described as "basic", "intermediate", "advanced", or "update". (d) CPE program developers shall state the prerequisites for education, experience, or both for all programs. All programs shall clearly identify prerequisites, if any. Prerequisites shall be written in precise language so that potential participants can readily ascertain whether they qualify for the program and whether the specified level of knowledge of the program is appropriate for them. (e) CPE program developers shall be qualified in the subject matter and knowledgeable in instructional design. Qualification in subject matter and knowledge of instructional design may be obtained through appropriate practical experience, education or both. The level of technical competence and instructional design skills that the CPE program developer shall possess may vary depending on certain characteristics of the program, such as the number of times it will be presented, the length of the program, the complexity of the subject matter, and the number of participants. (f) CPE program materials shall be reviewed to the extent necessary by a qualified individual other than the developer before the materials are used in order to assure the technical accuracy, current nature, and the sufficiency of the program to achieve the stated learning objectives. (1) In order to meet this standard, the program materials must be prepared in advance of the presentation. The nature and extent of review may vary depending on the characteristics of the programs. (2) If a review is considered appropriate, the level of technical competence and instructional design knowledge of a reviewer shall be at least equal to those of the CPE program developer.
10:15-31-3. Standards for structured CPE program presentation (a) CPE program sponsors shall inform participants before they enroll of learning objectives, prerequisites, level of knowledge of the program, program content, nature and extent of advance preparation, teaching methods to be used, recommended CPE credit, and relevant administrative policies. (1) In order for potential participants to effectively plan their CPE, the significant features of the CPE program should be disclosed in advance in brochures or other promotional material. (2) When CPE programs are offered in conjunction with noneducational activities or when several CPE programs are offered concurrently, an appropriate schedule of events indicating those components that are recommended for CPE credit shall be made available to participants. The CPE program registration policies of the sponsor and procedures should be formalized, published, and made available to participants. (b) CPE program sponsors should encourage participation only by individuals with appropriate education, experience, or both. Compliance with this standard may include: (1) Allowing enrollment only by eligible participants; (2) Making timely distribution of materials; and (3) Requiring completion of advance preparation materials by participants. (c) CPE program sponsors shall select instructors qualified with respect to both program content and teaching methods used. (1) Qualified instructors are those who are capable, through background, training, education, or experience, of communicating effectively and providing an environment conducive to learning. (2) Instructors should be competent in the subject matter, skilled in the use of the appropriate teaching methods, and prepared in advance. (3) Instructors are responsible for informing participants of any changes necessary to make the program current. (d) CPE program sponsors shall evaluate the performance of each instructor at the conclusion of each program to determine their suitability to continue to serve as instructors. (e) CPE program sponsors shall ensure that the number of participants and physical facilities are appropriate for the teaching methods specified by the CPE program developer. (f) The number of participants, quality of facilities, and seating arrangements are integral and important aspects of the educational environment and shall be carefully controlled by the program sponsor. (g) CPE program sponsors shall provide effective means for evaluating the quality of the program. The objective of evaluations is to increase program effectiveness. Evaluations shall be solicited from both participants and instructors. Evaluations may include questionnaires completed after a program, verbal comment and evaluation from participants, or tests for the effectiveness of a program. At a minimum, CPE programs shall be evaluated to determine whether: (1) Learning objectives have been met; (2) Prerequisites were necessary or desirable; (3) Program materials contributed to the achievement of the learning objectives; and (4) The program content was timely and relevant. (h) For group programs, programs shall be evaluated to determine whether: (1) The knowledge and presentation skills of the instructor were effective; and (2) Facilities where the program was conducted were satisfactory. (i) CPE program sponsors shall periodically review the evaluation process to ensure its effectiveness.
10:15-31-4. Standards for structured CPE program measurement (a) CPE credit shall be recommended only for structured programs of learning that maintain or increase the professional competence of the individuals attending the programs. (b) Continuing professional education credit is granted only for structured programs. A structured program of learning is a process that is designed and intended primarily as an educational activity and that complies with the standards set forth by the Board. (c) All programs shall be measured in contact hours. The shortest program for CPE credit purposes shall consist of one (1) contact hour. (1) A contact hour is fifty (50) minutes of participation in a group program. (2) Credit is granted only for full contact hours. (3) For programs in which individual segments are less than fifty (50) minutes, the sum of the segments shall be considered one (1) total program. (d) CPE program sponsors must monitor organized group programs in order to accurately record the appropriate number of contact hours for participants. (e) Structured individual study programs shall be pretested by the developer to determine average completion time. (1) Interactive individual study programs shall receive CPE credit equal to the average completion time. (2) An interactive individual study program is one which simulates a classroom learning process by providing ongoing responses and evaluation to the learner regarding his or her learning progress. These programs guide the learner through the learning process by: (A) Requiring frequent student response to questions that test for understanding of the material presented; (B) Providing evaluative responses and comments to incorrectly answered questions; and (C) Providing reinforcement responses and comments to correctly answered questions. (3) Ongoing responses, comments, and evaluations communicate the appropriateness of a learner's response to a prompt or question. Such responses, comments, and evaluations must be frequent and provide guidance or direction for continued learning throughout the program by clarifying or explaining assessment of inappropriate responses, providing reinforcement for appropriate responses, and directing the learner to move ahead or review relevant material. It is the response of the learner that primarily guides the learning process in an interactive individual study program. Not all technology based individual study programs constitute interactive programs. Technology based individual study programs must meet the criteria set forth in the definition of interactive individual study programs, as must other individual study programs developed using different modes of delivery. (4) Non-interactive individual study programs shall receive CPE credit equal to one-half (1/2) of the average completion time. For example, a non-interactive individual study program that takes an average of eight hundred (800) minutes to complete should be recommended for eight (8) contact hours of CPE credit. (f) CPE program developers shall keep appropriate records of how the average completion time of individual study programs was determined. (g) For university or college courses which are successfully completed for credit, each unit of credit shall equal the following CPE contact hours: (1) One (1) semester system hour equals fifteen (15) hours of CPE credit; and (2) One (1) quarter system hour equals ten (10) hours of CPE credit. (h) Seminar instructors or discussion leaders shall receive CPE credit for their preparation and presentation time if the seminar programs increase their professional competence and if the programs qualify for CPE credit for participants. (1) Credit for seminar instructors or discussion leaders shall be measured in contact hours. (2) Seminar instructors and discussion leaders shall receive CPE credit for both preparation and presentation. The first time a seminar instructor or discussion leader presents a program, credit for actual preparation hours up to two (2) times the number of presentation hours shall be allowed. (3) For repeat presentations, instructors shall receive no credit unless it can be demonstrated that the program content involved was changed and such change required additional study or research. (4) The maximum credit for preparation and presentation shall not exceed fifty percent (50%) of the total CPE credit required in a reporting period. (i) Registrants who write articles, books, or CPE programs which are published shall receive CPE credit for their research and writing time only for those articles, books, or CPE programs which enhance the ability of a registrant to practice public accounting and which require research and study in excess of the previous knowledge base of the writer. (1) Such credit shall be measured in contact hours. (2) Writing articles, books, or CPE programs for publication is an activity that involves a formal process of learning. For the registrant to receive CPE credit, the article, book, or CPE program must be published by a publisher not subject to the control of the writer. A nonreturnable copy of the published article, book, or CPE program must be submitted to the Board for determination of credits to be allowed. (3) CPE credit from this activity shall be limited to twenty-five percent (25%) of the CPE credit required in a compliance period and will be determined by the Board on a case by case basis. (j) The entire continuing education requirement may be accomplished by programs designated as "individual study" programs.
10:15-31-5. Standards for structured CPE program reporting by participant
(1) Name of participant; (2) Program sponsor; (3) Program title or description of content; (4) Date completed; and (5) Contact hours of credit recommended by the course sponsor. (b) Participants in structured CPE programs shall retain the documentation of their participation in CPE programs for a period of five (5) years after the end of the compliance period in which the program is completed. Participants in structured CPE programs shall also retain a brochure and other promotional material which reflects the content of a course in the event the participant is requested by the Board to substantiate the course content. (c) Acceptable evidence of completion includes, but is not limited to the following:
(3) For a university or college course that is successfully completed for credit, an official transcript reflecting the grade earned. (4) For instruction credit, evidence obtained from the sponsor of having been the seminar instructor or discussion leader at a program. (5) For published articles, books, or CPE programs, evidence of publication. (d) Sponsors shall furnish a record of attendance to participants which shall reflect each of the elements listed in 10:15-31-5(a).
10:15-31-6. Documentation and record-keeping standards for CPE sponsors (a) In order to support the information which may be required of a participant in their courses, a CPE program sponsor of group or individual study programs shall maintain records of programs sponsored which shall include, but not be limited to the following: (1) Documentation that the programs were developed and presented in compliance with the standards established by rule; (2) Date of each program presentation; (3) Location where course was presented; (4) Name and qualifications of each seminar instructor, discussion leader, and speaker conducting a program for the sponsor; (5) Outline of the course or documentation which is the equivalent of an outline; (6) Accurate attendance records; (7) Number of CPE contact hours recommended for each course; and (8) A summary of the program evaluations by the participants. (b) If a CPE program is not developed by the CPE program sponsor, the sponsor shall be responsible for ensuring that the CPE program has been developed in compliance with all applicable standards. (c) Each CPE program sponsor shall maintain documentation as to the procedures followed to assure compliance with all applicable standards. (d) The CPE program sponsor shall maintain records and information required by (a) and (b) of this Section for a period of five (5) years after the end of the compliance period in which the CPE course was completed. (e) Failure of a CPE program sponsor to comply with the CPE standards may be cause for a hearing before the Board to determine whether the Board will accept credit for courses offered by the CPE sponsor until such time as the CPE sponsor can demonstrate to the Board that the compliance standards are being met.
SUBCHAPTER 33. QUALITY REVIEW [RESERVED]
Section 10:15-35-1. Application for reinstatement 10:15-35-2. Evaluation of applications for reinstatement 10:15-35-3. Reinstatement of reciprocal certificate or license [REVOKED] 10:15-35-4. Hearing on application for reinstatement 10:15-35-5. Duplicate certificate or license
10:15-35-1. Application for reinstatement (a) Upon application in writing on a form prescribed by the Board an individual may request reinstatement of a canceled, suspended, or revoked certificate or license. (b) The applicant shall be of good moral character. (c) In addition to the application fee the applicant shall pay the applicable registration fee, the fee for the permit to practice public accounting if making application for the permit, as well as all costs and fines assessed by the Board which remain unpaid at the date the application is filed.
10:15-35-2. Evaluation of applications for reinstatement (a) Evaluation and approval of applications meeting all applicable requirements for reinstatement shall be performed by the Executive Director. (b) Denial of applications failing to meet all applicable requirements for reinstatement shall be by the Board.
10:15-35-3. Reinstatement of reciprocal certificate or license [REVOKED]
10:15-35-4. Hearing on application for reinstatement Upon request by the applicant or any other person, a hearing may be scheduled before the Board regarding the reinstatement of a certificate or license.
10:15-35-5. Duplicate certificate or license A duplicate certificate or license will be issued upon payment of the appropriate fee, as provided by Code 10:15-27-11.
SUBCHAPTER 37. ENFORCEMENT PROCEDURES
Section 10:15-37-1. Initiation of investigation 10:15-37-2. Investigation committee 10:15-37-3. Special prosecutors 10:15-37-4. Individual investigator 10:15-37-5. Filing of formal complaint 10:15-37-6. Formal proceedings 10:15-37-7. Discipline for violations by candidates 10:15-37-8. Violations by individuals who do not hold a certificate or license 10:15-37-9. Violations by certificate or license holders and candidates 10:15-37-10. Investigation costs 10:15-37-11. Felony convictions and pleas
10:15-37-1. Initiation of investigation (a) When information comes to the Board, an individual member of the Board, the Executive Director, or to any member of the Board staff concerning alleged violations of the Oklahoma Accountancy Act or the rules of the Oklahoma Accountancy Board, the information shall be forwarded to the Vice Chairman and one (1) other member of the Board who is not an officer of the Board appointed by the Chairman to receive such information. (b) The member(s) of the Board receiving the information may make appropriate inquiry to verify the information received. Upon completion of the preliminary inquiry, the Board member(s) may take one (1) or more of the following actions: (1) Terminate the investigation because it appears there has been no violation of the law or rules or there is insufficient evidence to support any allegation of a violation. (2) Attempt an informal resolution of the allegations of violations contained in the information received. (3) Refer the matter to the Investigation Committee. (4) Refer the matter to an individual investigator to obtain additional information. (5) Refer the information to a special prosecutor, or legal counsel for further action. (6) Hold the file in abeyance pending receipt of information as a product of an investigation or hearing by another state or federal agency.
10:15-37-2. Investigation committee (a) The Board may appoint an Investigation Committee to conduct investigations of allegations of violations of the Oklahoma Accountancy Act or the rules of the Oklahoma Accountancy Board. (b) The Investigation Committee shall consist of not less than three (3) nor more than nine (9) members who shall serve at the pleasure of the Board. (1) Only individuals who are holders of permits shall be eligible to serve on the Investigation Committee. (2) The members of the Investigation Committee shall elect one (1) of their members as Chairman who shall conduct the meetings of the Committee, administer its activities, and perform such other duties as are assigned by the Board. (c) It shall be the duty of the Investigation Committee upon a request from the Vice Chairman and other designated member of the Board, to investigate to determine whether there exists probable cause to believe that misconduct has occurred which justifies the institution of formal proceedings. The investigation shall be conducted in a timely manner. (d) The Investigation Committee shall report to the Vice Chairman and other designated member of the Board the result of any investigation promptly upon its conclusion. Such report shall contain a summary of the evidence considered by the Committee including any material provided by the accused, the conclusions of fact and law of the Committee, and the recommendation of the Committee with respect to institution of formal proceedings. (e) Before a final report adverse to the accused is made, the Investigation Committee may notify the accused in writing of the allegations and allow the accused not less than ten (10) calendar days to reply in writing. (1) The accused shall not be entitled to a hearing before the Investigation Committee as a matter of right. (2) The accused may submit written material for consideration by the Investigation Committee which shall be included in the final report to the Vice Chairman.
10:15-37-3. Special prosecutors (a) The Board may employ lawyers licensed to practice law in Oklahoma to serve as Special Prosecutors in formal proceedings before the Board. (b) An individual serving as Special Prosecutor shall not serve as legal counsel to the Board in the same formal proceeding. (c) The Special Prosecutor may perform such other duties as are assigned by the Board.
10:15-37-4. Individual investigator (a) The Vice Chairman of the Board may assign an allegation of a violation to an individual investigator employed by the Board on a part time or full time basis. (b) An investigator may make use of the Investigation Committee but shall be in full charge of any investigation assigned by the Vice Chairman, subject to the direction of the Board.
10:15-37-5. Filing of formal complaint (a) All formal complaints shall be filed by the Vice Chairman and the designated member of the Board only with the agreement of the Special Prosecutor. (b) The Vice Chairman, the designated member of the Board, and the Special Prosecutor must concur. In the event they do not, the Vice Chairman will prepare a report for the Board and the Board will determine future action. (c) The formal complaint shall be signed by the Special Prosecutor or the Vice Chairman. (d) The formal complaint shall include a concise statement of the allegations and particular sections of the Oklahoma Accountancy Act and the rules implementing that Act which are involved.
10:15-37-6. Formal proceedings (a) The Chairman shall set a time and place for the hearing of the formal complaint, provided that such hearing shall be set not less than twenty (20) days from service of the complaint and notice of the proceeding to the accused at the last known address in the official records of the Board. (b) Notice may be taken of judicially cognizable facts. In addition, notice may be taken of generally recognized technical or scientific facts within the specialized knowledge of one (1) or more members of the Board. (c) The accused shall be notified either before or during the hearing, or by reference in preliminary reports or otherwise of any material notices, including any staff memoranda or data to be relied on by the Board and the accused shall be afforded an opportunity to contest the material so noticed. The experience, technical competence, and specialized knowledge of the members of the Board may be utilized in the evaluation of the evidence. (d) Oral proceedings or any part thereof shall be transcribed upon request of any party. All costs of such transcription shall be paid by the requesting party. (e) Hearings will be conducted by one (1) of the following methods, as determined by the Board: (1) By the Board; (2) By any member of the Board or a designee of the Board acting as a hearing examiner or Administrative Law Judge; or (3) By an attorney licensed to practice law in this state appointed by the Board to act as a hearing examiner or Administrative Law Judge. (f) The standard of proof in all hearings shall be clear and convincing evidence. (g) All orders, whether proposed or final, shall be issued within ninety (90) calendar days of the hearing. Final orders shall state their effective date. (h) The Board shall consider past disciplinary action taken against any accused found guilty in any present proceeding. Such past conduct shall not be evidence of guilt in the present proceeding but will be considered only in determining appropriate sanctions to be imposed by the Board in the present proceeding. (i) Unless precluded by law, the accused may waive any right granted in the law and proceed by stipulation, agreed settlement, consent order, or default. No provision of this section shall be construed as prohibiting the Board from suspending, or holding in abeyance, any formal proceeding pending the outcome of informal negotiation or informally agreed upon terms. (j) The investigation files of the Board shall be confidential, except the Board may provide information in the investigation files and hearing record to the following: (1) Any Board of Accountancy or Commission of the District of Columbia, or any other state or territory of the United States which exercises disciplinary authority over accountants; and (2) Any law enforcement agency which makes a proper showing that such information is necessary to conduct a pending investigation. (k) Any individual who has filed a complaint may be notified of the final disposition of the matter. (l) The hearing record of any formal proceeding shall be open to the public. (m) The notice and hearing procedures required for individual proceedings as set forth in the Oklahoma Administrative Procedures Act shall be followed by the Board.
10:15-37-7. Discipline for violations by candidates A candidate who is alleged to have violated the Oklahoma Accountancy Act, the rules implementing that Act, or who subverts or attempts to subvert the examination process shall be subject to disciplinary action by the Board. Upon the determination that the candidate is guilty of the allegations, the Board may impose one (1) or more of the following disciplinary measures on the candidate: (1) Withhold the candidate's grades on the examination; (2) Declare the candidate's scores on the examination invalid; (3) Disqualify the candidate from holding a certificate or license permanently or for a specified period of time; or (4) Impose other authorized penalties.
10:15-37-8. Violations by individuals who do not hold a certificate or license (a) In the event the investigation of an allegation against an individual who is not a holder of a certificate or license concludes that the accused is in violation of the Oklahoma Accountancy Act and action should be taken to stop the violation, the Board may delegate to the Vice Chairman or the Executive Director, or the Board's designate, acting for the Board, who shall be authorized to: (1) Send written notice of the accusation, supporting documentation and a copy of the Complaint and Notice of Hearing, to be held not later than sixty (60) days following such notice, to the accused by certified mail, restricted delivery, return receipt requested. Notice may also be given by personal service upon the person of the accused in a manner authorized by the statutes of the State of Oklahoma for service of process in a civil proceeding; (2) Provide the accused with a copy of the Oklahoma Accountancy Act along with its notification of the accusation and Complaint and Notice of Hearing. (b) The Board, at a full and formal hearing, shall make a final determination of the accusations against the accused and issue such permanent cease and desist order, fine, penalty or other action as authorized by these Rules and the Oklahoma Accountancy Act.
10:15-37-9. Violations by certificate or license holders and candidates (a) In the event the investigation of an allegation against a certificate or license holder or a candidate concludes that the accused is in violation of the Oklahoma Accountancy Act or the rules of the Oklahoma Accountancy Board, the Board shall take any action authorized by law, or these rules, to protect the public from the unauthorized or illegal action of the certificate or license holder. (b) All proceedings and related procedures shall be conducted in accordance with the provisions of the Oklahoma Administrative Procedures Act.
10:15-37-10. Investigation costs (a) Members of the Investigation Committee shall be compensated at the rate of Twenty-Five Dollars ($25.00) per hour for the time spent performing duties directly related to the business of the Investigation Committee. (b) Investigators and Special Prosecutors may be compensated at a rate established by the Board on a case by case basis. (c) Members of the Investigation Committee, investigators, and Special Prosecutors shall submit claims for payment in the same manner as other vendors doing business with the Board. (d) Members of the Investigation Committee, investigators, and Special Prosecutors shall also be reimbursed for necessary expenses incurred in the performance of their duties upon submission of receipts.
10:15-37-11. Felony convictions and pleas (a) The provisions of this section shall be applicable, except where indicated, to applicants for the examination, examination candidates, applicants for certificates and licenses, and registrants. (b) When an applicant has been convicted of or plead guilty or nolo contendere to a felony, the applicant shall be required to furnish to the Board documentation of the charges and the final judgment of the Court in the form of certified documents from the Court file. Failure by an applicant for the examination to furnish adequate documentation no later than sixty (60) days prior to the commencement of the examination applied for shall result in denial of the application. (c) Failure of any applicant to cooperate with an investigation conducted by the Board, shall result in denial of the application. (d) The Vice Chairman shall review all documents pertaining to the applicant's conviction or plea and may further require that an investigation be conducted in accordance with Subchapter 37 of the Oklahoma Administrative Code. (e) The Board may obtain from the Oklahoma State Bureau of Investigation, or other sources, a criminal record check of any applicant who has had a felony conviction or plea. (f) The Vice Chairman shall make a preliminary determination of whether the applicant satisfies the requirement of good moral character as set forth in Sections 15.8 and 15.9 of the Act. The Vice Chairman shall consider, but not be limited to, the nature of the felony conviction or plea and the time period which has elapsed since the offense was committed or judgement was entered. (g) When, in the opinion of the Vice Chairman, public protection requires conditional approval of an applicant, the Vice Chairman may negotiate a consent order with the applicant. The consent order shall set forth the terms and conditions proposed by the Vice Chairman for approving the application. All consent orders must be either approved or disapproved by the Board. (h) If the Vice Chairman is unable to negotiate a consent order with an applicant, or if the Board does not approve the consent order, a hearing may be held to determine whether the application may be approved and to determine conditions for such approval which may be imposed by the Board as a result of the hearing. (i) A list of all applicants having criminal histories, with information describing each felony conviction or plea and the penalty imposed for each, shall be presented to the Board. Board approval must be granted, or a hearing, as ordered by the Board, must be held in conjunction with each application presented to the Board. (j) Individual registrants who have a felony conviction or plea are subject to the provisions of the Act and the enforcement procedures set forth in this Subchapter.
SUBCHAPTER 39. RULES OF PROFESSIONAL CONDUCT
Section 10:15-39-2. Special definitions 10:15-39-4. Integrity and objectivity 10:15-39-5. Disclosure of other compensation and financial interest in transactions 10:15-39-6. Competence and technical standards 10:15-39-7. Responsibilities to clients 10:15-39-8. Other responsibilities and practices 10:15-39-9. Professional misconduct
(a) The Rules of Professional Conduct are based on the premise that the public and the business community rely on sound financial reporting and on professional competence. This premise is inherent in the authorized use of the titles certified public accountant and public accountant, which imposes on persons registered with the Board certain obligations to the public and to others. These obligations which the Rules of Professional Conduct are intended to enforce, include: the obligation to maintain independence and objectivity of thought and action, to strive continuously to improve professional skills, to observe, where applicable, generally accepted accounting principles and generally accepted auditing standards, to promote sound and informative financial reporting, to hold the affairs of clients in confidence, to uphold the standards of the public accounting profession, and to maintain high standards of personal conduct in all matters affecting fitness to practice public accounting. (b) Acceptance by a registrant of a certificate, license, or permit to engage in the practice of public accounting, or to use the titles of certified public accountant, CPA, public accountant, or PA which imply a particular competence, involves acceptance by the registrant of such obligations and, accordingly, of a duty to abide by the Rules of Professional Conduct. (c) The Rules of Professional Conduct are intended to have application to all kinds of professional services performed in the practice of public accounting, including, but not limited to, auditing, accounting, review and compilation services, tax services, management advisory services and personal financial and investment planning, and intended to apply as well to all certificate, license, or permit holders, whether or not engaged in the practice of public accounting, except where the wording of one of the Rules of Professional Conduct clearly indicates that the applicability is more limited. (d) A registrant who is engaged in the practice of public accounting outside the United States is not subject to discipline by the Board for departing, with respect to such foreign practice, from any of the Rules of Professional Conduct, so long as the conduct is in accordance with the Rules of Professional Conduct applicable to the practice of public accounting in the country in which the registrant is practicing. If the name of a registrant is associated with financial statements in such manner as to imply that the registrant is acting as an independent CPA or PA under circumstances which would entitle the reader to assume that United States practices are followed, the registrant will be expected to comply with the provisions of Code 10:15-39-6(b), 10:15-39-6(c) and 10:15-39-6(d). (e) In interpreting and enforcing these rules, the Board may give consideration, but not necessarily dispositive weight, to relevant interpretations, rulings and opinions issued by the boards of other jurisdictions, appropriately authorized ethics committees of professional organizations and other federal and state agencies.
10:15-39-2. Special definitions For purposes of the application of the Rules of Professional Conduct: (1) "Related individual" includes spouses, and dependent persons, whether or not related for all purposes of complying with the Rules of Professional Conduct, provided that the independence of the registrant and the firm of the registrant will not normally be impaired solely because of employment of a spouse or dependent person by a client if the employment is in a position that does not allow "significant influence" over the operating, financial, or accounting policies of the client. In the event such employment is in a position in which the activities of the related individual are audit-sensitive, even though not a position of significant influence, the registrant should not participate in the engagement. (2) "Audit Sensitive" activities of an individual are activities which are normally an element of or subject to significant internal accounting controls. For example, the following positions, which are not intended to be all inclusive, would normally be considered audit sensitive, even though not positions of significant influence: cashier, internal auditor, accounting supervisor, purchasing agent, or inventory warehouse supervisor. (3) "Close relative" of a registrant is a non dependent child, stepchild, brother, sister, grandparent, parent, parent-in-law, and their respective spouses. Close relatives of the registrant do not include the brothers and sisters of the spouse of the registrant.
(a) A registrant who is performing an engagement in which the registrant will issue a report on or compilation of financial statements of any client, other than a report or compilation in which a lack of independence is disclosed, must be independent with respect to the client in fact and appearance. (b) Independence will be considered to be impaired if, for example, during the period of the professional engagement or at the time of the issuing of the report: (1) The registrant or a related individual: (A) had or was committed to acquire any direct or material indirect financial interest in the client; or (B) was a trustee of any trust or executor or administrator of any estate if such trust or estate had or was committed to acquire any direct or material indirect financial interest in the client; or (2) The registrant or a related individual had any joint or closely-held business investment with the client or any officer, director or principal stockholder thereof which was material in relation to the net worth of either the client or the registrant; or (3) The registrant or a related individual had any loan to or from the client or any officer, director, or principal stockholder of a client except as permitted as follows: (A) The following types of loans obtained from a financial institution pursuant to the normal lending procedures of that institution, terms, and requirements and that meet the other specified conditions stated in this section, and that meet the conditions set forth in (B) and (C) of this paragraph. (i) Home mortgages. (ii) Other secured loans. The collateral on such loans must equal or exceed the remaining balance of the loan on January 1, 1993, and at all times thereafter. (iii) Loans not material to the net worth of the registrant. (iv) The following types of personal loans obtained from a financial institution client for which independence is required pursuant to the normal lending procedures, terms, and requirements of that institution and such loans must, at all times, be kept current as to all terms: (I) Automobile loans and leases collateralized by the automobile; (II) Loans of the surrender value under terms of an insurance policy; (III) Borrowing fully collateralized by cash deposits at the same financial institution such as but not limited to "passbook" loans; (IV) Credit cards and cash advances on checking accounts with an aggregate balance not paid currently of Five Thousand Dollars ($5,000.00) or less. (B) The loans described in (A) of this paragraph must: (i) exist as of January 1, 1993; (ii) have been obtained from a financial institution prior to it becoming a client requiring independence; (iii) have been obtained from a financial institution for which independence was not required and that were later sold to a client for which independence is required; or (iv) have been obtained from a registrant?s firm?s financial institution client requiring independence, by a registrant or related individual borrower prior to that borrower becoming a person with respect to such client for whom independence is required. (C) Independence will be considered to be impaired if after January 1, 1993, a CPA or PA obtains a loan of the type described in this paragraph from an entity that, at the time of obtaining the loan, is a client requiring independence. Grandfather loans must, at all times, be current as to all terms and such terms shall not be renegotiated after the latest of the dates in (B) of this paragraph. (c) Independence will also be considered to be impaired if, during the period covered by the financial statements, during the period of the professional engagement or at the time of issuing the report the registrant, the firm of the registrant or a related individual, as defined in this Subchapter: (1) was associated with the client as a promoter, underwriter, voting trustee, director, or officer, or in any capacity equivalent to that of a member of management or of an employee; or (2) was a trustee for any pension or profit sharing trust of the client; or (3) had any direct or material indirect business relationship, other than as a consumer in the normal course of business, with a client or with individuals associated with the client in a decision making capacity, such as officers, directors or substantial stockholders, including but not limited to joint business ventures, limited partnership agreements, investments in supplier or customer companies, leasing interests, except for immaterial landlord-tenant relationships, and sales by the registrant of items other than professional services; (4) received other compensation from a client or a third party, or had a commitment to receive from the client or a third party, with respect to any services or products procured or to be procured by the client from a third party; or (5) had a commitment from the client for a contingent fee. For this purpose, a contingent fee means compensation for the performance of services the payment of which, or the amount of which, is contingent upon the findings or results of such services. However, fees shall not be regarded as being contingent if fixed by a court or other public authorities or, in tax matters, if determined based on the results of judicial proceedings or findings of governmental agencies. (d) The examples of impaired independence described in (b) and (c) of this Section are not intended to be all-inclusive. (e) The independence of a registrant's firm would be considered to be impaired with respect to an enterprise pursuant to the following: (1) The independence of a registrant's firm would be considered to be impaired with respect to an enterprise if: (A) during the period of the professional engagement or at the time of expressing an opinion, an individual participating in the engagement has a close relative with a financial interest in the enterprise that was material to the close relative and of which the individual participating in the engagement has knowledge. (B) during the period covered by the financial statements, during the period of the professional engagement, or at the time of expressing an opinion: (i) An individual participating in the engagement has a close relative who could exercise significant influence over the operating, financial, or accounting policies of the enterprise or who is otherwise employed in a position where the activities of the individual are "audit sensitive"; or (ii) A proprietor, partner, shareholder, or individual with a managerial position, any of whom are located in an office participating in a significant portion of the engagement, has a close relative who could exercise significant influence over the operating, financial, or accounting policies of the enterprise. (2) The situations described in (1) of this Subsection should be considered minimum standards for the impairment of independence. It is impossible to enumerate all circumstances wherein the appearance of a registrant's independence might be questioned by third parties; but the registrant should be aware that other factors may also impair the independence or appearance of independence of the registrant. For example, a registrant?s relationship with a cohabitant may be equivalent to that of a spouse. In addition, in situations involving the assessment of the association of any relative or dependent individual with a client, a registrant must consider whether the strength of personal and business relationships between the registrant and the relative or dependent individual, considered in conjunction with the specified association with the client, would lead a reasonable person aware of all the facts, and taking into consideration normal strength of character and normal behavior under the circumstances, to conclude that the situation poses an unacceptable threat to the registrant?s objectivity and appearance of independence.
10:15-39-4. Integrity and objectivity A registrant shall not, in the performance of professional services, knowingly misrepresent facts nor subordinate his or her judgment to others. In tax practice, however, a registrant may resolve doubt in favor of the client as long as there is reasonable support for that position.
10:15-39-5. Disclosure of other compensation and financial interest in transactions (a) Disclosure. A registrant who is not performing services for which the registrant must be independent as defined in Code 10:15-39-3(a) and who has any financial interest or receives or agrees to receive other compensation with respect to services or products of third parties recommended, referred, or sold to another person shall, no later than the making of each recommendation, referral, or sale, disclose to such other person in writing the financial interest and the nature, source, and amount or basis of calculation and range of probable amounts or percentages of all such other compensation. (b) Basis for recommendation. In recommending and providing to clients products or services of others for which the registrant receives other compensation, the registrant must document in writing a reasonable basis for believing that the client is a knowledgeable investor or purchaser and that the recommended products or services of others are suitable for the client after a thorough inquiry and investigation of the situation, needs, and objectives of the client. (c) Payment of referral fees. A registrant shall not pay a referral fee to a third party to obtain a client unless, prior to being engaged by such client, the registrant discloses to the client in writing the fact and the amount of such referral fees. (d) Exceptions. This section does not apply to payments received or made by a registrant for the sale of or purchase of all, or a material part, of an accounting practice, or to retirement payments to persons formerly engaged in the practice of public accounting.
10:15-39-6 . Competence and technical standards (a) Competence. A registrant shall not undertake any engagement for the performance of professional services which he or she cannot reasonably expect to complete with due professional competence, including compliance, where applicable, with (b) through (d) of this Section. (b) Auditing standards. A registrant shall not permit his or her name to be associated with financial statements in such a manner as to imply that the registrant is acting as an independent CPA or PA with respect to such financial statements unless the registrant has complied with applicable generally accepted auditing standards. (c) Accounting principles. A registrant shall not issue a report asserting that financial statements are presented in conformity with generally accepted accounting principles if such financial statements contain any departure from such accounting principles which has a material effect on the financial statements taken as a whole, unless the registrant can demonstrate that by reason of unusual circumstances the financial statements would otherwise have been misleading. In such a case, the registrant's report must describe the departure, the approximate effects thereof, if practicable, and the reasons why compliance with the principle would result in a misleading statement. (d) Other professional standards. A registrant, in the performance of management advisory services, tax services or accounting and review services, shall conform to the professional standards applicable to such services.
10:15-39-7. Responsibilities to clients (a) Confidential client communications. Except by permission of the client, or the heirs, successors, or personal representatives of the client, a registrant or any partner, officer, shareholder, or employee of a registrant shall not voluntarily disclose information communicated to the registrant by the client relating to and in connection with professional services rendered to the client by the registrant. Such information shall be deemed confidential, provided, however, that nothing herein shall be construed as prohibiting the disclosure of information required to be disclosed by the standards of the public accounting profession in reporting on the examination of financial statements or as prohibiting disclosures in court proceedings, in investigations or proceedings pursuant to the provisions of the Oklahoma Accountancy Act, in ethical investigations conducted by private professional accounting organizations, or in the course of quality reviews. (b) Records of clients. (1) If not previously furnished, a registrant shall furnish to the client or former client, upon request and reasonable notice: (A) A copy of the working papers of the registrant, to the extent that such working papers include records that would ordinarily constitute part of the records of the client and are not otherwise available to the client; and (B) Any accounting or other records belonging to, or obtained from or on behalf of the client, that the registrant removed from the premises of the client or received for the account of the client; but the registrant may make and retain copies of such documents of the client when they form the basis for work done by the registrant. (c) A registrant may furnish the requested records in computerized form, provided that the records must be furnished in a format which is useable by the client or the registrant must furnish readable printed copies of the documents requested. Examples of records described in this section include, but are not limited to, general ledgers, subsidiary ledgers, adjusting, closing, and reclassification entries, journal entries and depreciation schedules, or their equivalents.
10:15-39-8. Other responsibilities and practices (a) Discreditable acts. A registrant shall not commit any act that reflects adversely on the fitness of the registrant to engage in the practice of public accounting. (b) Acting through others. A registrant shall not permit others to carry out on behalf of the registrant, either with or without compensation, acts which if carried out by the registrant would place that registrant in violation of the Rules of Professional Conduct. (c) Advertising and solicitation. A registrant shall not use or participate in the use of any form of communication, written or verbal, having reference to professional services performed by the registrant, which contains a false, fraudulent, misleading, deceptive or unfair statement or claim, nor any form of communication having reference to the professional services of the registrant which is accomplished or accompanied by coercion, duress, compulsion, intimidation, threats, overreaching, or vexatious, or harassing conduct. A false, fraudulent, misleading, deceptive, or unfair statement or claim includes but is not limited to a statement or claim which: (1) contains a misrepresentation of fact; or (2) is likely to mislead or deceive because it fails to make full disclosure of relevant facts; or (3) is intended or likely to create false or unjustified expectations of favorable results; or (4) implies educational or professional attainments or licensing recognition not supported in fact; or (5) represents that professional services can or will be completely performed for a stated fee when this is not the case, or makes representations with respect to fees for professional services that do not disclose all variables that may reasonably be expected to affect the fees that will in fact be charged; or (6) contains other representations or implications that in reasonable probability will cause an individual of ordinary prudence to misunderstand or be deceived. (d) Firm names. (1) No registrant shall engage in the practice of public accounting using a professional or firm name or designation that is misleading about the legal form of the firm, or about the individuals who are partners, officers, shareholders, or members of the firm, or about any other matter, provided, however, that names of one (1) or more former owners may be included in the name of a firm or its successor. (2) A registrant who is a sole proprietor, and not incorporated, shall be allowed to use and employ the designation "d/b/a" with a business name. Such a sole proprietor registrant must continue to register, with the Board, with the "d/b/a" business name. Such registration shall be without charge. There will be no separate permit required for the "d/b/a" business. (e) A registrant shall respond in writing to any communications from the Board requesting a response, within thirty (30) days of the mailing of such communication by registered or certified mail, to the last address of the registrant known to the Board.
10:15-39-9. Professional misconduct It is professional misconduct for a CPA, PA or a firm to: (1) violate or attempt to violate the Oklahoma Accountancy Act or the rules implementing that Act, knowingly assist or induce another to do so, or do so through the act of another; or (2) commit a criminal act that reflects adversely on the CPA's or PA's integrity, trustworthiness or fitness to practice as a CPA or PA; or (3) commit any act that reflects adversely on the CPA's or PA's fitness to practice public accounting. (4) engage in conduct involving dishonesty, fraud, deceit, misrepresentation or omission of a known material fact; or (5) engage in a pattern of repeated offenses, even ones of minor significance when considered separately, which indicate an indifference to the Oklahoma Accountancy Act or the rules implementing that Act; or (6) state or imply an ability to influence improperly a government agency or official; or (7) violate the rules and regulations of other state or federal regulatory agencies which results in the censure or suspension, cancellation, revocation, or withdrawal of registration or right to practice by such state or federal agency as a result of a hearing, consent agreement, court order, or other administrative proceedings.
SUBCHAPTER 41. CHILD SUPPORT STATUTE Section
The Board shall comply with the district courts of this state in implementing the provisions of Title 43, Section 139.1, of the Oklahoma Statutes. |
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