Mobility is a practice privilege that generally permits a licensed CPA in good standing to practice in a state from outside of his or her principal place of business without obtaining another license, so long as the licensee meets certain state specific conditions.
For state accountancy boards that have adopted the Uniform Accountancy Act § 23 Safe Harbor language for mobility, this will allow those licensees who had practice privileges prior to a specific date to proceed to practice, so long as they have a license in good standing and no other state specific restrictions apply. Currently, Delaware, New Jersey, Texas, and Pennsylvania have adopted the UAA Safe Harbor Language for Mobility.
Individual Practice Privilege - An individual whose principal place of business is outside South Carolina may exercise all privileges of a licensee in South Carolina without obtaining a license pursuant to S.C. Code Ann. § 40-2-35 of the South Carolina Code if the individual meets the requirements below:
- has successfully passed the Uniform CPA Examination;
- holds an active certificate, license, or permit issued pursuant to the laws of any state, territory of the United States, the District of Columbia, or any foreign authority recognized by the International Qualifications Appraisal Board under a Mutual Recognition Agreement; and
- is legally authorized to practice in the jurisdiction where the existing certificate, license, or permit is held.
- Notwithstanding any other provision of law, an individual offering or rendering professional services in South Carolina, whether in person, by mail, telephone, or electronic means, shall be granted practice privileges in South Carolina subject to the above conditions. No notice, fee, or other submission is required for the individual to practice pursuant to these privileges.
Firm Practice Privilege/Firm Registration Requirement Firm Registration Requirements - A firm may not provide attest services or assume or use the title "Certified Public Accountants," "Public Accountants," or the abbreviations "CPAs" and "PAs," or any other title, designation, words, letters, abbreviation, sign, card, electronic file, metadata tag, or any other device indicating the firm is a CPA firm unless:
- the firm holds a valid registration issued under this chapter or is exempt from the registration requirement by operation of the firm practice privilege subsection;
- meets South Carolina firm ownership requirements (see below) and implementing regulations promulgated by the board, unless the firm is exempt from the registration requirement by operation of the firm practice privilege subsection; and
- owners who are not certified public accountants must be permitted to use the titles "principal," "partner," "owner," "officer," "member," or "shareholder" but must not hold themselves out to be certified public accountants.
- The following must hold a registration issued pursuant to this section:
- a firm with an office in this State performing attest services or engaging in the practice of accounting;
- a firm with an office in this State that uses the title "CPA" or "CPA firm"; or
- a firm that does not have an office in this State but performs attest services or performs compilation services for a client in this State, unless it is exempt from registration pursuant to the firm practice privileges section.
(See definition below for how South Carolina defines attest services, compilation services, and practice of public accounting).
Firm Ownership Qualifications for registration as a certified public accountant firm are as follows: - A simple majority of the firm ownership in terms of financial interests and voting rights of all partners, officers, shareholders, members, or managers must belong to certified public accountants currently licensed in some state. Although firm ownership may include non-CPA owners, the firm and its owners must comply with regulations promulgated by the board. All non-CPA owners must be active individual participants in the firm or affiliated entities.
- Partners, officers, shareholders, members, or managers whose principal place of business is in this State, and who also perform professional services in this State, must hold a valid license issued pursuant to this section. An individual who has practice privileges under S.C. Code Ann. § 40-2-245 must not be required to obtain a license from this State pursuant to S.C. Code Ann. § 40-2-35.
- For firms registering under S.C. Code Ann. § 40-2-40(B) there must be a designated resident manager in charge of each office in this State who must be a certified public accountant licensed in this State.
- Non-CPA owners must not assume ultimate responsibility for any financial statement, attest, or compilation engagement.
- Non-CPA owners shall abide by the code of professional ethics adopted pursuant to this chapter.
- Owners shall at all times maintain ownership equity in their own right and must be the beneficial owners of the equity capital ascribed to them. Ownership may also be held through a revocable, not irrevocable, grantor trust, provided that the trust is established for the sole benefit of the owner, and provided that the owner retains full control and the ability to revoke the trust. Provision must be made for the ownership to be transferred to the firm or to other qualified owners if the non-certified public accountant or the beneficial owner of the revocable grantor trust ceases to be an active individual participant in the firm.
- This section applies only to non-CPA owners who are residents of this State.
- Non-CPA owners must complete the same number of hours of continuing professional education as licensed certified public accountants in this State, including the annual ethics requirement pursuant to S.C. Code Ann. § 40-2-250(C)(6).
- Non-CPA owners who are licensed professionals subject to continuing education requirements applicable to that profession may complete the required number of continuing professional education hours in courses offered or accepted by organizations or regulatory bodies governing that profession, and also must complete the same number of hours of continuing professional education as licensed certified public accountants in this State.
- A certified public accounting firm and its designated resident manager under bullet point three (3) are responsible for the following in regard to a non-certified public accountant owner:
- a non-CPA owner shall comply with all applicable accountancy statutes and regulations; and
- a non-CPA owner shall be of good moral character and shall not engage in any conduct that, if committed by a licensee, would constitute a violation of the regulations promulgated by the board.
Firm Practice Privileges - Firms that do not have an office in South Carolina may engage in the practice of accounting, without obtaining a registration pursuant to S.C. Code Ann. § 40-2-40, in accordance with the requirements below.
- Firms that do not have an office in South Carolina may perform attest services for a client in South Carolina, may engage in the practice of accounting, and may use the title "CPA" or "CPA firm" only if the firm:
- has the Firm Ownership Qualifications as mentioned above and meets Peer Review requirements in S.C. Code Ann. § 40-2-255 (see below);
- performs these services through an individual with practice privileges under S.C. Code Ann. § 40-2-245; and
- can lawfully perform these services in the state where the individual with practice privileges under S.C. Code Ann. § 40-2-245 has his principal place of business.
- A firm described under bullet point one (1) that is not subject to the requirements of bullet point two (2) may perform other professional services within the practice of accounting while using the title "CPA" or "CPA firm" in this State only if the firm:
- performs these services through an individual with practice privileges under S.C. Code Ann. § 40-2-245; and
- can lawfully do so in the state where these individuals with practice privileges have their principal place of business.
- Notwithstanding any other provision of this section, it is not a violation of this section for a firm that does not hold a valid permit under S.C. Code Ann. § 40-2-40 and which does not have an office in this State to provide its professional services or to engage in the practice of accounting so long as it complies with the requirements of bullet points two (2) or (3), whichever is applicable.
Consent to Jurisdiction - By exercising practice privileges in South Carolina, an individual licensee or holder of a permit or certificate to practice from another jurisdiction, along with the firm employing that licensee or permit or certificate holder:
- consents to the personal and subject matter jurisdiction of the South Carolina board and its disciplinary authority;
- agrees to comply with the regulations and provisions of the practice privileges S.C. Code Ann. § 40-2-245;
- agrees to cease offering or rendering professional services in South Carolina, individually or on behalf of a firm, if their license, permit, or certificate from his principal jurisdiction is no longer valid;
- consents to service of an administrative notice of hearing at the board in the individual's principal jurisdiction should any action or proceeding be initiated by that board against the licensee.
- A licensee of South Carolina who offers or renders services or uses the CPA title in another state shall be subject to disciplinary action in South Carolina for any act committed in the other state that would subject the licensee to discipline if committed in South Carolina. The South Carolina board shall investigate any complaint made by the Board of Accountancy, or equivalent regulatory agency, in another state.
Peer Review Requirement For engagement in attest or compilation services, or both, must provide evidence of satisfactory completion of peer review no more frequently than once every three years. Peer review must be conducted in a manner as the South Carolina board specifies by rule. Peer Review Rules Regulation 1-09: - As a condition of firm registration and/or renewal (including those firms registered in other jurisdictions operating in this state under practice privilege), a licensed firm providing any of the following services to the public shall enroll in a qualified peer review program.
- Audits;
- Reviews of financial statements;
- Compilations of financial statements;
- Examinations of prospective financial statements;
- Compilations of prospective financial statements;
- Agreed-upon procedures of prospective financial statements;
- Examination of written assertions; and
- Agreed-upon procedures of written assertions.
- A licensed firm not providing any of the services listed under bullet point one (1) of this regulation is exempt from peer review. Upon the issuance of the first report provided to a client, the firm must enroll in a qualified peer review program. As long as these services are provided, continued participation in a qualified peer review program is required.
- Acceptable peer review programs are:
- AICPA Peer Review Program;
- Any other peer review program found to be substantially equivalent to the ‘‘Standards for Performing and Reporting on Peer Reviews’’ promulgated by the American Institute of Certified Public Accountants(AICPA) and published on that organization’s website.
- An authorized peer review program may charge a fee to firms required to participate in the peer review program.
- Firms shall not rearrange their structure or act in any manner with the intent to avoid participation in peer review.
- Compliance:
- A registered firm enrolled for peer review shall provide to the Board upon request the following:
- Peer review due date;
- Peer review year end date;
- Peer review acceptance letter from peer review program.
- A peer review is not complete until the peer review acceptance letter is issued by the peer review program.
- If a firm fails to complete peer review in a timely fashion, the Board may refuse to renew the firm registration and/or take disciplinary action as appropriate.
- Ethical duties of reviewer:
- A reviewer shall be independent with respect to the reviewed registered firm and comply with the AICPA Standards for Performing and Reporting on Peer Reviews.
- Information concerning the participating CPA firm or its clients or personnel that is obtained as a consequence of the review is confidential and shall not be disclosed to anyone not involved in the peer review process.
Additional Requirements N/A
Restrictions See Firm Requirements.
Definitions - "Attest" in South Carolina means providing the following services:
- any audit or other engagement to be performed in accordance with the Statements on Auditing Standards (SAS);
- any review of a financial statement to be performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS);
- any examination of prospective financial information to be performed in accordance with the Statements on Standards for Attestation Engagements (SSAE);
- any engagement to be performed in accordance with Public Company Accounting Oversight Board (PCAOB) Auditing Standards; or
- any examination, review, or agreed upon procedure to be performed in accordance with the SSAE, other than an examination described in sub-bullet point 3.
Any standards specified in this definition shall be adopted by reference by the board pursuant to rulemaking and shall be those developed for general application by national accountancy organizations, such as the AICPA or the PCAOB. - "Compilation" in South Carolina means providing a service of any compilation engagement to be performed in accordance with SSARS.
- "Practice of accounting" in South Carolina means:
- issuing a report on financial statements of a person, firm, organization, or governmental unit or offering to render or rendering any attest or compilation service. This restriction does not prohibit any act of a public official or public employee in the performance of that person's duties or prohibit the performance by a non-licensee of other services involving the use of accounting skills, including the preparation of tax returns, management advisory services, and the preparation of financial statements without the issuance of reports; or
- using or assuming the title "Certified Public Accountant" or the abbreviation "CPA" or any other title, designation, words, letters, abbreviation, sign, card, electronic file, metadata tag, or any other device tending to indicate that the person is a certified public accountant.
- "Principal place of business" in South Carolina means the office location designated by a licensee for the purposes of substantial equivalency and reciprocity.
Statute and/or Regulation Reference South Carolina Code of Laws Section 40-2-245
South Carolina Code of Laws Section 40-2-30(I)
South Carolina Code of Laws Section 40-2-40
South Carolina Code of Laws 40-2-255
Disclaimer: The information contained in NASBA’s Accountancy Licensing Library and CPAmobility.org is for informational purposes only and should not be construed as legal advice or legal opinion. The information is based on current state board of accountancy law and rules which are publicly available. Because board law and rules are continuously changing, there may be a slight delay in law or rule effective dates and the information reflected in these websites. NASBA cannot guarantee a mobility outcome based solely on the information contained in these websites, as additional state factors not listed here may be applicable. It is the responsibility of each CPA licensee or permit holder to be knowledgeable of each state board's current laws and rules in the state(s) in which the licensee intends to practice via mobility.
Click Reciprocal Licensure and/or Firm Registration in the menu bar at the top of this page for additional information or if these practice privilege requirements do not apply to you or your firm. |
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