Practice Privileges. Effective July 31, 2009, in Arkansas offers practice privileges without the need to file notice with the Arkansas State Board or Accountancy, pay a fee, or obtain a temporary permit.
For more information on Practice Privilege, please review Ark. Code Ann. § 17-12-311 and Ark. Code R. § 019.00.06.
An individual whose principal place of business is not in Arkansas, who holds a valid license as a CPA from a substantially equivalent state, shall be presumed to have qualifications substantially equivalent to Arkansas's requirements, and shall have all the privileges of Arkansas licensees without the need to obtain a certificate or permit if the individual: Practice privileges extend to any individual who offers or renders professional services, whether in person, by mail, telephone or electronic means, in Arkansas, and no notice or other submission shall be provided by the individual.
An individual who held an Arkansas CPA certificate at one time whose Arkansas CPA certificate has been revoked or surrendered in connection with a disciplinary investigation or proceeding is prohibited from performing attest or compilation services or using the title "CPA" whether or not such individual may otherwise qualify for practice privileges.
Practice privileges are not available if: - The individual has been convicted of a felony under the laws of any jurisdiction.
- The individual has been convicted of any crime under the laws of any jurisdiction if an element of the crime involves dishonesty or fraud, such as forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud or similar offenses.
- The individual's license to practice public accounting has been suspended, revoked or otherwise disciplined by a licensing authority in Arkansas or another state, territory or country, for any cause other than failure to pay appropriate fees. "Disciplined" includes the voluntary surrender of a license to resolve a pending disciplinary investigation or proceeding in Arkansas or other jurisdiction.
- The individual's right to practice public accounting before any state or federal agency or before the PCAOB has been suspended or revoked.
- The individual has applied for licensure as a CPA in Arkansas or other jurisdiction and that application has been denied.
- The individual's authority to exercise practice privileges has been revoked in Arkansas or other jurisdictions.
If the CPA does not qualify under the substantial equivalency standards, the individual must apply to the Arkansas Board for a reciprocal license. Click Reciprocal Licensure above for additional information.
Consent to Jurisdiction An individual licensee of another state exercising the practice privilege and the CPA firm that employs the licensee, as a condition of the exercise of this privilege, simultaneously consent and agree to the following: - To the personal and subject matter jurisdiction and disciplinary authority of the Arkansas Board;
- To comply with the Arkansas Board's rules and laws;
- To cease offering or rendering professional services in Arkansas individually and on behalf of the firm if the license from the state of the individual's principal place of business is no longer valid; and
- To the appointment of the state board that issued the license as the agent upon whom process may be served in the action or proceeding by the Arkansas Board against the licensee.
Firm Registration Requirements May Apply An individual and firm who qualifies for practice privileges under substantial equivalency may perform the following services for a client with its home office in Arkansas only through a firm that has obtained an Arkansas firm permit (See Rule 6.1(a)(4)): - A financial statement audit or other engagement to be performed in accordance with SAS;
- An examination of prospective financial information to be performed in accordance with SSAE; or
- An engagement to be performed in accordance with PCAOB.
Click Firm Registration above for additional information.
A firm that does not have an office in Arkansas may perform the following attest services for a client having its home office in Arkansas and may use the title "CPA" or "CPA firm" without registering in Arkansas only if the firm: - meets the qualifications for firms in Arkansas,
- performs the services through an individual with practice privileges in Arkansas, and
- meets Arkansas peer review requirements (See Rule 6.1(b)).
- A review of a financial statement to be performed in accordance with SSARS;
- An examination, review, or agreed upon procedures engagement to be performed in accordance with SSAE, other than an examination of prospective financial information to be performed in accordance with SSAE; and
- Compilations, i.e., providing a service of any compilation engagement to be performed in accordance with SSARS.
A firm that is not subject to firm registration in Arkansas under the above requirements may perform other professional services while using the title "CPA" or "CPA firm" in Arkansas without registering in Arkansas only if the firm: - Performs the services through an individual with practice privileges in Arkansas; and
- Can lawfully performed the services in the state where the individual(s) with practice privileges have their principal place of business.
Corporations, LLCs, partnerships, sole proprietorships, and other permissible forms of practice that are practicing in Arkansas under practice privileges are subject to the following: - Ownership: A person who does not hold a current valid license as a CPA in Arkansas or some other state or U.S. jurisdiction but who actively participates within Arkansas under a practice privilege firm must not hold himself out as a CPA and must not have ultimate responsibility for the performance of audits, review or compilations of financial statements, PCAOB engagements or any other form of attestation with regard to financial information.
- Equity Ownership Limitations: Persons who are not CPAs or registered PAs shall not hold, in the aggregate, more than a minority interest of such firm's equity ownership or voting rights, or shall not receive, in the aggregate, more than a minority interest of the entity's profits or losses.
- The principal executive officer, managing member or managing partner shall be a shareholder, member or partner who is a licensed CPA or PA, who holds a current, valid license in Arkansas or another state or jurisdiction. Directors, members, partners and officers who are not licensees shall not exercise any authority whatsoever over professional matters relating to the practice of public accounting.
For mobility purposes, "CPA license" means a CPA license granted by the state board after all education, exam and experience requirements have been met. A CPA performing services through mobility may only perform the same level of services (attest or non-attest) in the mobility jurisdiction as he or she is permitted to perform in the home jurisdiction. Please note the following if you are coming from one (1) of the jurisdictions listed: - An Alabama certificate holder may not hold out or practice as a CPA in a mobility jurisdiction.
- A Connecticut certificate holder may not hold out or practice as a CPA in a mobility jurisdiction.
- An Illinois certificate or registered certificate holder may not hold out or practice as a CPA in a mobility jurisdiction.
- Both a Hawaii CPA license and permit are required in order to hold out or practice as a CPA in a mobility jurisdiction.
- A Kansas certificate holder may not hold out or practice as a CPA in a mobility jurisdiction.
- Both a Nebraska CPA certificate and permit are required in order to hold out or practice as a CPA in a mobility jurisdiction.
- An Oklahoma registrant must hold an active permit In order to hold out or practice as a CPA in a mobility jurisdiction.
Click Practice Privilege in the menu bar at the top of this page for additional information. |
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