North Carolina Administrative Code

SUBCHAPTER 08I - REVOCATION OF CERTIFICATES AND OTHER DISCIPLINARY ACTION 21 NCAC 08I .0101 DISCIPLINARY ACTION (a) Any person may file a complaint with the Board against a CPA, pursuant to G.S. 150B, Article 3A for disciplinary action against a CPA for violations of G.S. 93 and …

21 NCAC 08I .0102 PROCEDURE WHEN PETITION AGAINST BOARD MEMBER OR EMPLOYEE If the person against whom a petition for disciplinary action is filed is a Board member or a Board employee, the Secretary-Treasurer or Executive Director shall immediately notify that person and every me…

21 NCAC 08I .0103 PUBLICATION OF FINDINGS History Note: Authority G.S. 55B-12; 93-12(9); Eff. February 1, 1976; Readopted Eff. September 26, 1977; Amended Eff. June 1, 1985; Repealed Eff. May 1, 1989.

21 NCAC 08I .0104 MODIFICATION OF DISCIPLINE (a) A person whose certificate or CPA firm whose registration has been permanently revoked by the Board may apply to the Board for modification of the discipline at any time after five years from the date of the original discipline. If…

21 NCAC 08I .0105 REVOCATION OF CERTIFICATES (a) When a certificate is revoked either for a specific period of time or permanently, the certificate holder shall return the certificate to the Board office within 15 days of receipt of notice of revocation. (b) Pursuant to the provi…

21 NCAC 08I .0106 OTHER PENALTIES History Note: Authority G.S. 55B-12; 93-12(7); 93-12(8); 93-12(9); Eff. September 1, 1982; Repealed Eff. May 1, 1989.

section .0100 -RENEWALS AND REGISTRATIONS 21 NCAC 08J .0101 ANNUAL RENEWAL OF CERTIFICATE, FORFEITURE, AND REAPPLICATION (a) All active CPAs shall renew their certificates annually by the first day of July. The fee for such renewal is the maximum amount allowed by G.S. 93-12(8). …

21 NCAC 08J .0102 SUPERVISION OF CPA OFFICES History Note: Authority G.S. 93-12(8a)(5); 93-12(9); Eff. February 1, 1977; Readopted Eff. September 26, 1977; Amended Eff. April 1, 1994; May 1, 1989; August 1, 1988; June 16, 1980; Repealed Eff. April 1, 1999.

21 NCAC 08J .0103 REPORTS/ANNUAL REGISTRATION OF OFFICES/PARTNERSHIPS History Note: Authority G.S. 93-12(9); Eff. February 1, 1976; Readopted Eff. September 26, 1977; Amended Eff. May 1, 1989; August 1, 1988; Repealed Eff. April 1, 1991.

21 NCAC 08J .0104 REGISTRATION OF FIRMS History Note: Authority G.S. 93-12(8a); Eff. June 16, 1980; Repealed Eff. October 1, 1984.

21 NCAC 08J .0105 inactive status: change of status (a) A CPA may apply to the Board for change of status to inactive status provided the CPA meets the description of inactive status as defined in 21 NCAC 08A .0301. Application for any status change shall be made on the form prov…

21 ncac 08J .0106 FORFEITURE OF CERTIFICATE AND REISSUANCE (a) A person who has forfeited a certificate is no longer a CPA and thus is not subject to the renewal fee or CPE requirements contained in these Rules. (b) A person who requests reissuance of a forfeited certificate shal…

21 NCAC 08J .0107 MAILING ADDRESSES OF CERTIFICATE HOLDERS AND CPA FIRMS All certificate holders and CPA firms shall notify the Board in writing within 30 days of any change in home address and phone number; CPA firm address and phone number; business location and phone number; a…

21 ncac 08J .0108 CPA FIRM REGISTRATION (a) All CPA firms shall register with the Board within 30 days after opening a North Carolina office or beginning a new CPA firm unless they are a professional corporation, professional limited liability company, or registered limited liabi…

21 NCAC 08J .0109 CPA Firm Practice Privilege Notification Notice pursuant to G.S. 93-10(c)(3) shall be made on a form supplied by the Board. History Note: Authority G.S. 93-10; Eff. February 1, 2011; Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public inter…

21 ncac 08j .0110 REGISTRATION FEES The annual registration fees shall be as follows: (1) For all professional corporations or professional limited liability companies, twenty-five dollars ($25.00); and (2) For all non-incorporated CPA firms which have offices both within and out…

21 NCAC 08j .0111 COMPLIANCE WITH CPA FIRM REGISTRATION If a CPA firm fails to comply with any part of Rule .0108 or Rule .0110 of this Section, and continues to offer or render services, the Board may take disciplinary action against the CPA firm's members. As set forth in G.S. …

21 NCAC 08J .0112 RETIRED STATUS - CHANGE OF STATUS (a) A CPA on active or inactive status may apply to the Board for a change to CPA-retired status if that CPA completes an application provided by the Board confirming the following: (1) they will not perform any of the services …

SUBCHAPTER 08K - PROFESSIONAL CORPORATIONS AND PROFESSIONAL LIMITED LIABILITY COMPANIES SECTION .0100 - GENERAL PROVISIONS 21 NCAC 08K .0101 FORMATION AND REGISTRATION History Note: Authority G.S. 55B-4; 55B-10; 93-8; Eff. February 1, 1976; Readopted Eff. September 26, 1977; Amen…

21 NCAC 08K .0102 REGISTRATION History Note: Authority G.S. 93-8; 93-12(3); Eff. February 1, 1976; Readopted Eff. September 26, 1977; Amended Eff. October 1, 1984; Repealed Eff. June 1, 1985.

21 NCAC 08K .0103 SUSPENSION AND REVOCATION History Note: Authority G.S. 55B-12; 93-8; 93-12(3); Eff. February 1, 1976; Readopted Eff. September 26, 1977; Amended Eff. October 1, 1984; Repealed Eff. March 1, 1987.

21 ncac 08K .0104 REGISTRATION AND RENEWAL (a) Domestic CPA professional corporations or professional limited liability companies must be formed and all CPA professional corporations or professional limited liability companies must be operated in accordance with the requirements …

21 NCAC 08K .0105 SUPPLEMENTAL REPORTS Professional corporations or professional limited liability companies registered with the Board pursuant to G.S. 55B and 57D shall file a certified copy of all amendments to the articles of incorporation or articles of organization prior to …

21 NCAC 08K .0106 FEES History Note: Authority G.S. 55B-11; 55B-12; 93-12(3); Eff. February 1, 1976; Readopted Eff. September 26, 1977; Amended Eff. May 1, 1984; Repealed Eff. March 1, 1987.

SECTION .0200 - PRACTICE PROCEDURES OF PROFESSIONAL CORPORATIONS AND PROFESSIONAL LIMITED LIABILITY COMPANIES 21 NCAC 08K .0201 CORPORATE AND PROFESSIONAL LIMITED LIABILITY COMPANY NAMES (a) The corporate name of a professional corporation registered under these Rules shall conta…

21 NCAC 08K .0202 LICENSING OF SHAREHOLDERS History Note: Authority G.S. 55B-6; 93-8; 93-12(2); Eff. February 1, 1976; Readopted Eff. September 26, 1977; Repealed Eff. March 1, 1987.

21 NCAC 08K .0203 LICENSING OF DIRECTORS History Note: Authority G.S. 93-8; 93-12(3); Eff. February 1, 1976; Readopted Eff. September 26, 1977; Repealed Eff. August 24, 1981.

SECTION .0300 - REGISTERED LIMITED LIABILITY PARTNERSHIPS 21 NCAC 08K .0301 REGISTERED LIMITED LIABILITY PARTNERSHIPS (a) Any Registered Limited Liability Partnership created pursuant to and in compliance with G.S. 59 shall also comply with all accountancy laws and rules pertaini…

21 NCAC 08L .0104 FORM CPA-3 History Note: Authority G.S. 150B-11; Eff. February 1, 1976; Readopted Eff. September 26, 1977; Repealed Eff. October 1, 1984.

21 NCAC 08L .0107 FORM CPA-6 History Note: Authority G.S. 150B-11; Eff. February 1, 1976; Readopted Eff. September 26, 1977; Repealed Eff. October 1, 1984.

21 NCAC 08L .0108 FORM CPA-7 History Note: Authority G.S. 93-12(4); 150B-11; Eff. February 1, 1976; Readopted Eff. September 26, 1977; Amended Eff. May 1, 1989; September 1, 1983; Repealed Eff. April 1, 1994.

21 NCAC 08L .0109 FORM CPA-8 History Note: Authority G.S. 150B-11; Eff. February 1, 1976; Readopted Eff. September 26, 1977; Repealed Eff. October 1, 1984.

21 NCAC 08L .0119 FORM CPA-18 History Note: Authority G.S. 93-12(7); 150B-11; Eff. December 1, 1982; Amended Eff. May 1, 1989; Repealed Eff. April 1, 1994.

21 NCAC 08M .0105 PEER REVIEW REQUIREMENTS (a) A CPA or CPA firm providing any of the following services to the public shall participate in a peer review program: (1) audits; (2) reviews of financial statements; (3) compilations of financial statements; or (4) any engagement to b…

21 NCAC 08M .0106 COMPLIANCE (a) A CPA firm registered for peer review shall provide to the Board the following: (1) peer review due date; (2) year end date; (3) final Letter of Acceptance from peer review program within 60 days of the date of the letter; and (4) a package to inc…

21 ncac 08m .0107 ETHICAL DUTIES OF REVIEWER (a) A reviewer shall be independent with respect to the reviewed CPA firm and comply with the AICPA Standards for Performing and Reporting on Peer Reviews. (b) Information concerning the participating CPA firm or its clients or personn…

21 NCAC 08M .0203 RESERVED FOR FUTURE CODIFICATION

21 NCAC 08M .0204 CERTAIN OFFICES EXCUSED History Note: Authority G.S. 93-12(8c); Eff. April 1, 1991; Amended Eff. April 1, 1999; August 1, 1998; Repealed Eff. January 1, 2004.

21 NCAC 08M .0205 RESERVED FOR FUTURE CODIFICATION

subchapter 08N – professional ethics and conduct SECTION .0100 - SCOPE AND APPLICABILITY 21 NCAC 08N .0101 SCOPE OF THESE RULES (a) The rules in this Subchapter are the Rules of Professional Ethics and Conduct that G.S. 93-12(9) authorizes the Board to adopt. As such, they comple…

21 NCAC 08N .0102 APPLICABILITY AND ORGANIZATION OF RULES These Rules are applicable to all certificate holders. Rules in Section .0200 of this Subchapter relate to CPAs whether or not employed in the public practice of accountancy. Rules in Section .0300 of this Subchapter perta…

21 NCAC 08N .0103 RESPONSIBILITY FOR COMPLIANCE BY OTHERS A CPA and CPA firm shall be responsible for assuring compliance with the rules in this Subchapter by anyone who is the CPA's partner, fellow shareholder, member, officer, director, licensed employee, unlicensed employee or…

SECTION .0200 - RULES APPLICABLE TO ALL CPAs 21 NCAC 08N .0201 INTEGRITY The reliance of the public and the business community on sound financial reporting and advice on business affairs imposes on the accounting profession an obligation to maintain high standards of technical co…

21 ncac 08n .0202 DECEPTIVE CONDUCT PROHIBITED (a) A CPA shall not engage in deceptive conduct. "Deception" means any fraud, misrepresentations, representations, or omissions that a CPA either knew or should have known to have a capacity or tendency to be misleading. Deceptive co…

21 ncac 08n .0203 DISCREDITABLE CONDUCT PROHIBITED (a) A CPA shall not engage in conduct discreditable to the accounting profession. (b) Prohibited discreditable conduct includes: (1) acts that reflect adversely on the CPA's honesty, integrity, trustworthiness, good moral charact…

21 NCAC 08N .0204 DISCIPLINE BY FEDERAL AND STATE AUTHORITIES (a) Violations of Other Authorities' Laws or Rules. A CPA shall not act in a way that would cause the CPA to be disciplined by federal or state agencies or boards for violations of laws or rules on ethics. CPAs who eng…

21 ncac 08n .0205 CONFIDENTIALITY (a) Nondisclosure. A CPA shall not disclose any confidential information obtained in the course of employment or a professional engagement except with the consent of the employer or client. (b) Exceptions. This Rule shall not be construed: (1) to…

21 NCAC 08N .0206 COOPERATION WITH BOARD INQUIRY A CPA shall provide full cooperation in connection with any inquiry made by the Board. Full cooperation includes responding within 21 days to all inquiries of the Board or representatives of the Board and claiming Board corresponde…

21 NCAC 08N .0207 VIOLATION OF TAX LAWS A CPA shall not knowingly violate any state or federal tax laws or regulations in handling the CPA's personal business affairs, the business affairs of an employer or client, or the business affairs of any company owned by the CPA. History …

21 NCAC 08N .0208 REPORTING CONVICTIONS, JUDGMENTS, AND DISCIPLINARY ACTIONS (a) Criminal Actions. A CPA shall notify the Board within 30 days of any conviction or finding of guilt of, pleading of nolo contendere, or receiving a prayer for judgment continued to any criminal offen…