CHAPTER 5. PERMITS FOR FIRMS
IC 25-2.1-5
Chapter 5. Permits for Firms
IC 25-2.1-5-1
Grant of permit or renewal
Sec. 1. The board shall grant or renew a permit to practice
accountancy to a CPA or PA firm that applies and meets the
requirements under this chapter.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,
SEC.28.
IC 25-2.1-5-2
Expiration of renewal
Sec. 2. An initial and renewed permit expires at the earlier of the
following:
(1) Three (3) years after issuance.
(2) At a time established by the board.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,
SEC.29.
IC 25-2.1-5-3
Form and time for application; grant or denial; temporary permit
Sec. 3. (a) An application for a permit must be made:
(1) in a form; and
(2) in the case of an application for renewal, between the dates
the board specifies.
(b) The board shall grant or deny an application within ninety (90)
days after the application is properly filed.
(c) When the applicant seeks the opportunity to show that
issuance or renewal of a permit was mistakenly denied, or when the
board is not able to determine whether a permit should be granted or
denied, the board may issue to the applicant a temporary permit that
expires ninety (90) days after issuance or when the board determines
whether to issue or renew the permit.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,
SEC.30.
IC 25-2.1-5-4
Application for initial permit; demonstration of firm member
qualifications
Sec. 4. (a) An applicant for initial issuance or renewal of a permit
to practice under this chapter must show that:
(1) a simple majority of the ownership of the firm, in terms of
financial interests and voting rights of all partners, officers,
shareholders, members, or managers, belongs to holders of an
active CPA certificate issued under this article or a
corresponding certificate that is issued after examination by
another state; and
(2) the partners, officers, shareholders, members, or managers
whose principal place of business is in Indiana and who practice
accountancy in Indiana hold a valid CPA certificate issued
under this article.
(b) For firms of public accountants, at least a simple majority of
ownership of the firm, in terms of financial interests and voting
rights, must belong to public accountants certified under IC 25-2.1-6.
(c) A firm issued a permit under this section may include
nonlicensee owners if:
(1) the firm designates a licensee who is responsible for the
proper registration of the firm and identifies that individual to
the board;
(2) all nonlicensee owners are active individual participants in
the CPA or PA firm or affiliated entities; and
(3) the firm complies with the other requirements that the board
may impose by rule.
(d) An individual licensee who is responsible for supervising
attest or compilation services and signs or authorizes an individual
to sign the accountant's report on the financial statements on behalf
of the firm shall meet the competency requirements set out in the
professional standards adopted by the board for the services.
(e) An individual licensee who signs or authorizes an individual
to sign the accountant's report on the financial statements on behalf
of the firm shall meet the competency requirement of subsection (d).
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,
SEC.31.
IC 25-2.1-5-5
Application for initial permit; registration of separate offices run
by qualified person
Sec. 5. (a) An applicant for initial issuance or renewal of a permit
to practice as a CPA firm under this chapter must:
(1) register each office of the firm within Indiana with the
board; and
(2) show that all attest and compilation services rendered in this
state are under the charge of an individual holding a valid CPA
certificate issued under this article or the corresponding
provisions of another state.
(b) An applicant for initial issuance or renewal of a permit to
practice as a PA firm under this chapter must:
(1) register each office of the firm within Indiana with the
board; and
(2) show that all attest and compilation services rendered in this
state are under the charge of an individual holding a valid CPA
or PA certificate issued under this article or the corresponding
provision of another state.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,
SEC.32.
IC 25-2.1-5-6
Fees
Sec. 6. The board shall establish fees under IC 25-1-8-2.
As added by P.L.30-1993, SEC.7.
IC 25-2.1-5-7
Information as to other jurisdictions where applicant practices;
notice of changes in practice or suspension of members
Sec. 7. (a) An applicant for initial issuance or renewal of a permit
under this chapter shall:
(1) list each state in which the applicant has applied for or holds
a permit to practice accountancy as a firm;
(2) list any past denial, revocation, or suspension of a permit by
another state; and
(3) notify the board in writing, not more than thirty (30) days
after a change:
(A) in the identities of partners, members, officers, or
shareholders who work regularly in Indiana;
(B) in the number or location of offices in Indiana;
(C) in the identity of the individuals in charge of the offices;
and
(D) of the issuance, denial, revocation, or suspension of a
permit by another state.
(b) Firms that fail to comply with this chapter due to changes in
firm ownership or personnel, after receiving or renewing a permit,
shall take corrective action to bring the firm into compliance as
quickly as possible. The board may grant a reasonable time for a firm
to take corrective action. Failure to bring the firm into compliance
within a reasonable period as determined by the board shall result in
the suspension or revocation of the firm permit.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,
SEC.33.
IC 25-2.1-5-8
Rules requiring quality review before renewal
Sec. 8. (a) The board shall adopt rules that require as a condition
to renew a permit under this chapter, that an applicant undergo, not
more than once every three (3) years, a quality review conducted in
a manner the board specifies.
(b) The rules adopted under subsection (a) must:
(1) be adopted reasonably in advance of the time when a quality
review first becomes effective;
(2) include reasonable provision for compliance by an applicant
showing that the applicant has in the preceding three (3) years
undergone a quality review that is a satisfactory equivalent to
the quality review required under this section;
(3) require, with respect to quality reviews under subdivision
(2), that the quality review be subject to review by an oversight
body established or sanctioned by the board that shall
periodically report to the board on the effectiveness of the
review program and provide to the board a listing of firms that
have participated in a quality review program; and
(4) require, with respect to quality reviews under subdivision
(2), that:
(A) the proceedings, records, and work papers of a review
committee are privileged and are not subject to discovery,
subpoena, or other means of legal process or introduction
into evidence in a civil action, arbitration, administrative
proceeding, or Indiana board of accountancy proceeding;
and
(B) a member of the review committee or individual who
was involved in the quality review process is not permitted
or required to testify in a civil action, arbitration,
administrative proceeding, or Indiana board of accountancy
proceeding to matters:
(i) produced, presented, disclosed or discussed during, or
in connection with, the quality review process; or
(ii) that involve findings, recommendations, evaluations,
opinions, or other actions of the committee or a committee
member.
As added by P.L.30-1993, SEC.7. Amended by P.L.190-2007,
SEC.10.
IC 25-2.1-5-9
Quality review; confidentiality of records
Sec. 9. (a) Notwithstanding section 8(4)(B) of this chapter,
information, documents, or records that are publicly available are not
immune from discovery or use in any civil action, arbitration,
administrative proceeding, or Indiana board of accountancy
proceeding merely because they were presented or considered in
connection with the quality review process.
(b) Any:
(1) materials prepared in connection with a particular
engagement merely because they happen to subsequently be
presented or considered as part of the quality review process; or
(2) dispute between review committees and individuals or firms
subject to a quality review arising from the performance of the
quality review;
are not privileged.
As added by P.L.30-1993, SEC.7.