Chapter 05 — Territorial Board of Public Accountancy-Rules for Certified Public Accountants and Public Accountants

Each permit holder shall at all times display evidence of the authority to practice, together with the certificate or registration and other evidence of current validation,’ in the permit holder’s place of business. History: Rule 3-88, eff 18 Apr 88.

(a) The term, “public accounting practice”, also referred to as “public practice”, as used in Chapter 31.02 ASCA and in this chapter means the performing for a client, or a fee basis, one or more types of services rendered by public accountants and the holding out to the public t…

(a) Any certified public accountant, licensed under 31.0210 A.S.C.A., or any public accountant licensed under 31.0217 A.S.C.A., shall be considered not to be in public practice if the person does not obtain a permit to practice under History: Rule 3-88, eff 18 Apr 88.

(a) The meaning of the phrase “incidental to his practice in such other state or country” is to be reviewed annually by the board at its regular April meeting until the meaning in 31.0507(b) ASAC is adopted. (b) The phrase “incidental to his practice in such other state or countr…

A person shall be entitled to the issuance of a certificate of certified public accountant upon application to the board and upon the satisfactory fulfillment of the requirements set forth in 31.0210 A.S.C.A. History: Rule 3-88, eff 18 Apr 88.

After satisfactorily fulfilling the requirements of 31.0210 A.S.C.A., an application for a certificate of certified public accountant shall be filed not later than 45 days prior to the regular April or October meeting of the board, and shall be accompanied by a fee as provided by…

(a) Each applicant for a certificate of a certified public accountant shall submit 3 letters of reference, from persons not related to the applicant, attesting to the applicant’s competence, trustworthiness, and fairness. (b) Each applicant shall also authorize the Board to conta…

(a) An applicant for a certificate of certified public accountant shall: (1) Present satisfactory evidence that the applicant has received a baccalaureate degree which shall have included a minimum of 12 semester hours of upper division, or graduate level accounting and auditing …

The examination prescribed in 31.0213 ASCA shall consist of the following: (1) American Institute of Certified Public Accountants (AICPA) examination; and (2) Open-book examination. (American Institute of Certified Public Accountants (AICPA) continuing professional education cour…

(a) The board shall use the examination prescribed by the AICPA. (b) The examination may be taken in the State of Hawaii or at any other authorized testing center. The board will provide appropriate letters requesting that the applicant be allowed to take the examination at that …

A person shall be entitled to the issuance of a certificate of public accountant upon application to the board and upon the satisfactory fulfillment of the requirements set forth in 31.0217 A.S.C.A. History: Rule 3-88. eff 18 Apr 88.

After satisfactorily fulfilling the requirements of 31.0217 A.S.C.A., an application for a certificate of public accountant shall be filed not later than 45 days prior to the regular April or October meeting of the board, and shall be accompanied by a fee as provided by the board…

(a) Each applicant for a certificate of public accountant shall submit 3 letters of references, from persons not related to the applicant, attesting to the applicant’s competence, trustworthiness, and fairness. (b) Each applicant shall also authorize the Board to contact agencies…

The examination for a Certificate of Public Accountant shall consist of the following: (1) National Society of Public Accountants (NSPA) Public Accountants Examination; and (2) Open-book examination. (American Institute of Certified Public Accountants (AICPA) continuing professio…

(a) The board shall use the examination prescribed by the NSPA, and shall make all necessary arrangements with the society including the grading of the examination papers. The society’s grading of examination papers shall be subject to the review and approval of the board. (b) Ap…

Each applicant for a certificate of public accountant who has attained a passing score in all parts of the NSPA examination and each applicant who qualified for an exemption from the examination requirements under 31.0520(i) ASAC shall be required to take the AICPA CPE course “Pr…

(a) The board shall require a person applying for a certificate of public accountant to: (1) Complete 2 years of public accounting experience with a CPA or PA; or (2) Complete 5 years of accounting in industry, government or college teaching. (b) The board shall require that all …

For a permit to practice public accountancy in any calendar year, a certified public accountant or public accountant, licensed under section 31.02 A.S.C.A., shall file an application which, after December 31, 1988, shall include a certificate of continuing education as specified …

(a) For the purpose of this section, a permit shall be obtained whether or not the public accounting practice is: (1) One of continuation from the prior year; (2) One to be entered into for the first time; or (3) One to be resumed after causing to lapse the permit to practice of …

An application for a temporary permit to practice, pursuant to 31.0219(b) A.S.C.A., shall be filed on a form prescribed by the board not later than 60 days prior to the commencement of the period covered by the application and shall be accompanied by a statement signed by an offi…

The overriding consideration in determining whether or not a specific program qualifies as acceptable continuing education is whether the program is a formal program of learning which will contribute directly to the professional competence of a licensee in public practice. Each l…

Any person in public accounting practice, regardless of the extent or degree of the practice, shall be covered by this chapter. History: Rule 3-88. eff 18 Apr 88.

(a) For the calendar year 1989, each certified public accountant and public accountant shall file, on a form prescribed by the board, a certification as to the completion of at least 40 hours in continuing education programs as set forth in 31.0531 ASAC, except that at least 8 ho…

Continuing education credit shall be given for whole hours only, with a minimum of 50 minutes constituting one class hour. No credit for continuing education hours shall be allowed for time expended for study outside of the classroom nor shall additional credits be allowed for pr…

(a) ln the event an applicant, except as provided in 31.0541 ASAC and except for the requirements for calendar year 1989, is found to be lacking in continuing education hours as of December 31 of any biennium, the applicant shall be required to make up the deficient hours in the …

The continuing education programs are classified into 4 categories, as follows: (1) Group programs which automatically qualify, as prescribed in 31.0534 ASAC; (2) Individual self-study programs which automatically qualify as prescribed in 31.0535 ASAC; (3) Group programs which re…

The requirements of each group program shall be: (1) That it requires attendance; (2) That it be at least 50 minutes in duration; (3) That it is conducted by a qualified instructor or discussion leader; (4) That its sponsor shall maintain written records of its attendees and of t…

The requirements of each individual self-study program shall be: (1) That it is conducted by a qualified sponsor; (2) That a certificate of completion is issued by the sponsor specifying subject matter and recommended continuing education credit hours; and (3) That its sponsor sh…

Subject to compliance with the requirements of 31.0532 ASAC, the group programs which automatically qualify shall be: (1) Professional development courses and other technical sessions of non-profit nationally recognized accounting associations, such as, the American Institute of …

Subject to compliance with the requirements of. 31.0533 ASAC, the individual self-study programs which automatically qualify are educational courses through correspondence, audio-visual methods, and other educational techniques of non-profit nationally recognized accounting assoc…

Subject to compliance with 31.0532 ASAC, each group program which is not specifically listed under 31.0534 ASAC shall be required to have its sponsor apply for approval of the programs by the board on a form prescribed by the board. History: Rule 3-88, eff 18 Apr 88.

Subject to compliance with the requirements of 31.0533 ASAC, each individual self-study program which is not specifically listed under 31.0535 ASAC, shall be required to have its sponsor apply to the board on a form prescribed by it, and to obtain the approval of the board of the…

The approval by the board of each group program and each individual self-study program shall expire at the conclusion of each program or on December 31 of each year, whichever is later; provided approval may be withdrawn by the board at any time for good cause. History: Rule 3-88…

(a) Subjects qualifying for continuing education under this chapter include, but are not limited to: (1) Accounting and auditing subjects directly related to the application of auditing procedures and techniques to the usual and customary financial transactions recorded in accoun…

Accompanying an application for a permit to practice, each certified public accountant and each public accountant shall also file, on a form prescribed by the board, a certification relating to the applicant’s continuing education setting forth the following: (1) Name of sponsor …

The board may issue a permit to practice to any applicant who has not fully complied with the continuing education requirement in cases where failure by the applicant to fulfill the requirement has been caused by reason of: (1) Health, as certified by a medical doctor; or (2) Mil…

The board shall certify upon request, to any state as to the compliance with continuing education requirements under the laws of the territory by any of its licensees. History: Rule 3-88. eff 18 Apr 88.

This subchapter governing continuing education shall not apply to any applicant for a temporary permit to be issued under 31.0219(3)(b) A.S.C.A. History: Rule 3-88, eff 18 Apr 88. 3l.0544 Name. A professional public accounting corporation shall adopt a name pursuant only to the a…

A professional public accounting corporation shall file an application setting forth the information as may be prescribed or required by the board, and shall furnish the additional information bearing upon the issuance of the license as it requires. History: Rule 3-88, eff 18 Apr…

each year not later than March 31 of the following year setting forth the information as maybe prescribed or required by the board including: (1) The names of shareholders and their share of ownership; (2) The names of directors, officers, licensed employees performing profession…

A professional public accounting corporation shall provide in its by-laws a provision whereby its capital stock owned by a disqualified persons, or a deceased person, shall be transferred to the corporation provided it has sufficient retained earnings or to its licensed employees…

A professional public accounting corporation shall render the services, as defined in Chapter 2.31, A.S.C.A. It shall render the services through a person who is licensed by the board. A professional public accounting corporation, however, may employ a person, who is not licensed…

(a) The board will survey all locally licensed insurance carriers each January to determine the availability and cost of professional liability insurance. (b) If at its May meeting the board determines that professional liability insurance is offered locally at a cost which the b…

(a) Independence. A licensee shall not express an opinion on financial statements of an enterprise in a manner as to imply that the licensee is acting as an independent public accountant with respect thereto unless the licensee is independent with respect to the enterprise indepe…

(a) A licensee shall not undertake any engagement for the performance of professional services which the licensee cannot reasonably expect to complete with due professional competence, including compliance, where applicable, with 31.0551(b) ASAC and 31.0551(c) ASAC. (b) A license…

(a) A licensee, without the consent of the client shall not disclose any confidential information pertaining to the client obtained in the course of performing professional services. (b) Subsection (a) does not: (1) Relieve a licensee of any obligations under 31.0551(b) ASAC and …

(a) Discreditable acts. A licensee shall not commit any act which reflects adversely on the licensee’s fitness to engage in the practice of public accountancy. (b) Acting through others. A licensee shall not permit others to carry out on the licensee’s behalf, either with or with…