AS Title 8, Chapter 4: Accountants

Article 1. Board of Public Accountancy. Chapter 04. Accountants. Sec. 08.04.005. Purpose. It is the policy of the state and the purpose of this chapter to promote the reliability of information that is used for guidance in financial transactions or assessing the financial status or performance of commercial, noncommercial, and governmental enterprises. The public interest requires that (1) persons professing special competence in accountancy or who offer assurance as to the reliability or fairness of presentation of financial information should demonstrate their qualifications to do so, and that persons who have not demonstrated and maintained adequate qualifications should not be permitted to hold themselves out as having special competence or to offer assurance about their actions; (2) the professional conduct of persons licensed as having special competence in accountancy should be regulated in all aspects of the practice of public accounting; (3) a public authority competent to prescribe and assess the qualifications and to regulate the professional conduct of practitioners of public accounting should be established; and (4) the use of titles relating to the practice of public accounting that are likely to mislead the public as to the status or competence of the persons using these titles should be prohibited. Sec. 08.04.010. Creation of board. There is created the Board of Public Accountancy. Sec. 08.04.020. Appointment and qualifications of board. (a) The board consists of seven members appointed by the governor. Each member shall be a resident of this state for at least one year. Five members shall be certified public accountants or public accountants and two members shall be public members. (b) Except for public members, an individual may not be appointed unless the individual holds a current license. Public members may not be employed by a person holding a license, permit, or practice privilege under this chapter. Notwithstanding AS 08.01.025 , an accountant who does not hold a license under this chapter, is not engaged in the practice of public accounting in violation of this chapter, and does not have a direct financial interest in public accounting is eligible for appointment as a public member under this section. Sec. 08.04.025. Meetings of board. The board shall hold a minimum of four meetings a year. Sec. 08.04.030. Removal of members. The governor shall remove any member of the board whose license has been revoked or suspended. The governor may, after hearing, remove any member for neglect of duty or other just cause. Sec. 08.04.040. Vacancy on board. A vacancy shall be filled by appointment for the unexpired term, except as provided in AS 39.05.080 (4), and all vacancies shall be filled within 60 days. Except as provided in AS 39.05.080 (4), after the expiration of a member's term of office a member continues to serve until a successor is appointed and qualifies, formally advises the board of acceptance of the appointment, and appears at the next meeting of the board. Sec. 08.04.050. Quorum. A majority of the board constitutes a quorum for the transaction of business. Sec. 08.04.055. Executive secretary of board. (a) The department, in consultation with the board, shall employ a certified public accountant or person who has other accounting experience satisfactory to the board and who is not a member of the board to serve as executive secretary of the board. (b) The executive secretary shall perform duties as prescribed by the board. (c) The executive secretary of the board is in the partially exempt service and entitled to receive a monthly salary equal to a step in Range 23 on the salary schedule set out in AS 39.27.011 (a). Sec. 08.04.060. Employment of personnel. [Repealed, § 3 ch 59 SLA 1966.] Sec. 08.04.070. Functions of board. (a) The board shall elect annually from its members a presiding officer, secretary, and treasurer. One person may hold the offices of secretary and treasurer. (b) The board may adopt and amend regulations for the orderly conduct of its affairs and for the administration of this chapter. (c) The board shall adopt a seal. (d) [Repealed, § 53 ch 16 SLA 2006.] (e) [Repealed, § 53 ch 16 SLA 2006.] (f) The board shall adopt a formal statement of goals, objectives, and policies to be reviewed and updated annually. (g) [Repealed, § 6 ch 19 SLA 1998.] (h) The board shall define by regulation the qualifications and duties of the executive secretary and delegate authority to the executive secretary as necessary to conduct board business. Sec. 08.04.075. Substantial equivalency. The board shall determine whether the education, examination, and experience qualifications of another state or an individual are substantially equivalent to the national standard or to another standard established by the board to protect the public interest. The board may adopt by regulation the qualifications established by a nationally recognized professional organization for accountants as the national standard or for another standard established by the board to protect the public interest. The board may accept the determination of a nationally recognized professional organization for accountants or adopt another standard as to whether the qualifications of the other state or an individual are substantially equivalent to the national standard. When ascertaining substantial equivalency under this chapter, the order in which education, examination, or experience requirements were attained shall be disregarded. Sec. 08.04.080. Adoption of rules. The board may adopt rules of professional conduct to establish and maintain a high standard of integrity and dignity in the profession of public accounting. At least 30 days before the adoption of any rule or amendment, the board shall send a notice of the proposed rule or amendment to each holder of a license or permit issued under this chapter to the address of the license or permit holder last known to the board. Sec. 08.04.085. Regulations regarding attest functions. [Repealed, § 42 ch 67 SLA 2010.] Sec. 08.04.090. Applicability of Administrative Procedure Act. [Repealed, § 15 ch 82 SLA 1980. For current law, see AS 08.01.090 .] Article 2. Certified Public Accountants and Practice of Public Accounting. Sec. 08.04.100. Certificate granted. The certificate of “Certified Public Accountant” shall be granted by the board to any person who meets the requirements of AS 08.04.110 — 08.04.130. The holder of a certificate issued under this section is not authorized to engage in the practice of public accounting in the state unless the holder also has a current license or permit. Sec. 08.04.105. License for individual to practice as a public accountant. (a) The board shall issue a license to engage in the practice of public accounting to an individual who meets the requirements of AS 08.04.110 — 08.04.130. The license is valid for the remainder of the biennial licensing period during which the initial license was granted. (b) The board may renew a license granted under this section if the licensee (1) maintains all of the licensee's offices as required by AS 08.04.360 and 08.04.370; (2) complies with the continuing education requirements of AS 08.04.425 and the peer review requirements of AS 08.04.426 ; and (3) complies with the requirements of this chapter. Sec. 08.04.110. Personal requirements. An applicant for a certified public accountant license shall be of good moral character. Sec. 08.04.120. Educational and experience requirements. (a) The education and experience requirements for an applicant are a baccalaureate degree or its equivalent conferred by a college or university acceptable to the board and additional semester hours or post-baccalaureate study so that the total educational program includes at least 150 hours, with an accounting concentration or equivalent as determined by the board by regulation to be appropriate, and two years of accounting experience satisfactory to the board. (b) [Repealed, § 9 ch 74 SLA 2018.] Sec. 08.04.130. Examination. An applicant shall pass an examination in accounting and reporting, in auditing, and in other related subjects that the board determines appropriate. The examination shall be designated in advance by the board as the examination for the license of certified public accountant. The board shall use the Uniform Certified Public Accountant Examination of the American Institute of Certified Public Accountants and the institute's advisory grading service, if available. The board shall, by regulation, establish what constitutes a passing grade on the examination for purposes of licensure under AS 08.04.105 — 08.04.240. Sec. 08.04.140. Frequency of examination [Repealed by § 3, ch. 139, SLA 2003.] Sec. 08.04.150. Qualifications to take examination. A person is qualified to take the examination for certified public accountants if the person either (1) has a baccalaureate degree or its equivalent conferred by a college or university acceptable to the board with (A) an accounting concentration or the equivalent, as defined in regulations of the board; (B) a minimum of 15 semester credit hours or 22 quarter credit hours of accounting subjects; or (C) one year of public accounting experience under the direct supervision of a certified public accountant; or (2) has met or is within 18 semester credit hours or 27 quarter credit hours of meeting the undergraduate educational requirements of AS 08.04.120 and has completed at least 15 semester hours or 22 quarter hours of accounting subjects. Sec. 08.04.160. Re-examination. [Repealed by § 3, ch. 139, SLA 2003.] Sec. 08.04.170. Examination standards. [Repealed by § 3, ch. 139, SLA 2003.] Sec. 08.04.180. Prior applicants. Sec. 08.04.190. Examination fee. An applicant shall pay the appropriate fee at the time of application for examination or reexamination. Sec. 08.04.195. Reciprocity with other states. (a) Notwithstanding AS 08.04.110 — 08.04.190, the board may issue a license to engage in the practice of public accounting to an applicant who holds a license, or its equivalent, issued by another state if the applicant (1) passed the Uniform Certified Public Accountant Examination of the American Institute of Certified Public Accountants in order to receive the applicant's initial license from the other state; (2) meets the accounting experience requirements established by the board by regulation; (3) is not the subject of review procedures, disciplinary proceedings, or unresolved complaints related to the applicant's license from another state; and (4) is of good moral character. (b) An applicant for the initial issuance of a license under this section shall list in the application all states where the applicant has applied for or holds a license, or its equivalent, and shall notify the board in writing within 30 days after a denial, revocation, or suspension of a license, or the equivalent, by another state. (c) The board may by regulation establish the education and continuing education requirements for the issuance of a license under this section. (d) The board may renew a license issued under this section if the licensee (1) maintains all of the licensee's offices as required by AS 08.04.360 and 08.04.370; (2) complies with the continuing education requirements established under (c) of this section; and (3) complies with the requirements of this chapter. Sec. 08.04.200. Use of title “certified public accountant” by individual. An individual who has a license from the board as a certified public accountant or holds a practice privilege shall be known as a certified public accountant and may use the abbreviation “CPA.” Sec. 08.04.210. Effect on certificates existing on April 26, 1960. A person who, on April 26, 1960, held a certificate as a certified public accountant issued under the laws of the Territory or State of Alaska is not required to obtain a license under this chapter but is otherwise subject to this chapter. Certificates issued before April 26, 1960, shall be considered licenses issued under this chapter. Sec. 08.04.220. Certification of foreign accountants. [Repealed, § 15 ch 82 SLA 1980.] Sec. 08.04.230. Registration of foreign accountants. [Repealed, § 2 ch 147 SLA 1976.] Sec. 08.04.240. Requirements for issuance of a permit to engage in the practice of public accounting; ongoing compliance. (a) The board shall grant a permit to engage in the practice of public accounting to a firm with an office in the state that applies to the board as a firm of certified public accountants if the firm meets the following requirements: (1) more than one-half of the ownership of the firm belongs to certified public accountants of this or another state in good standing; (2) an individual who is a certified public accountant or has a practice privilege, who is responsible for supervising attest functions or compilation services in the firm, and who signs or authorizes another person to sign an accountant's report on financial statements on behalf of the firm meets the competency requirements established by the board under AS 08.04.423 ; (3) an individual who signs or authorizes another person to sign an accountant's report on financial statements on behalf of the firm meets the competency requirements established by the board under AS 08.04.423 ; and (4) each owner who is personally engaged in this state in the practice of public accounting as a member of the firm and whose principal place of business is in this state is a certified public accountant of this state in good standing. (b) [Repealed, § 44 ch 5 SLA 2022.] (c) [Repealed, § 44 ch 5 SLA 2022.] (d) [Repealed, § 44 ch 5 SLA 2022.] (e) [Repealed, § 44 ch 5 SLA 2022.] (f) An initial permit issued under (a) or (k) of this section lasts for the remainder of the biennial licensing period during which the initial permit was granted. (g) The board shall renew a permit granted under (a) or (k) of this section or a renewal issued under this subsection if (1) the permittee maintains all of the licensee's offices that are located in this state as required by AS 08.04.360 and 08.04.370; (2) each individual who is required by (a) or (k) of this section to be a certified public accountant of this state complies with the continuing education requirements of AS 08.04.425 and the peer review requirements of AS 08.04.426 ; and (3) the permittee complies with the requirements of this chapter. (h) A partnership holding a permit issued under former AS 08.04.330 — 08.04.340 on June 29, 1980, qualifies for a permit under this section as long as each partner personally engaged in the practice of public accounting in this state holds a license or permit under AS 08.04.661 . (i) For the purposes of issuing a permit under this section, a firm may include owners who are not certified public accountants if (1) the firm designates a certified public accountant or an individual with practice privileges to be responsible for the proper registration of the entity and identifies the certified public accountant or individual to the board; (2) all of the owners of the firm who are not certified public accountants are active individual participants in the firm or in an entity affiliated with the firm; and (3) the firm complies with the other requirements that the board may adopt by regulation to protect the public interest as described under AS 08.04.005 . (j) If the ownership of a firm, after the firm has received or renewed a permit, does not comply with (i) of this section, the firm shall take corrective action to comply with (i) of this section within a reasonable time after the noncompliance begins. The board shall establish by regulation the criteria to determine what is a reasonable time and may base the regulation on national standards. (k) The board shall grant a permit to engage in the practice of public accounting to a firm that does not have an office in the state but provides, or offers to provide, attest functions in the state, if the firm meets the following requirements: (1) the firm meets the requirements of (a)(1) of this section; (2) the firm complies with the requirements in AS 08.04.426 ; (3) the attest functions performed by the firm in the state are performed by an individual who is a certified public accountant of this state in good standing or who has a practice privilege; and (4) the firm holds a permit to engage in the practice of public accounting in good standing in the jurisdiction in which the principal office of the firm is maintained. Sec. 08.04.250. Requirements for registration. [Repealed, § 4 ch 147 SLA 1976.] Sec. 08.04.260. Temporary certificate as certified public accountant. [Repealed, § 7 ch 66 SLA 1997.] Secs. 08.04.270 — 08.04.340. Public accountants. [Repealed, § 15 ch 82 SLA 1980.] Article 3. Regulation of Accountants. Sec. 08.04.350. Registration of offices. [Repealed, § 12 ch 62 SLA 1988.] Sec. 08.04.360. Supervision required. Each office established or maintained in this state for the practice of public accounting shall be under the direct supervision of an individual who holds a license issued under this chapter. The supervisor may be a sole proprietor, partner, principal, member, or staff employee. A supervisor may serve in this capacity for each office in the state that is maintained by a firm. Sec. 08.04.370. Use of title “certified public accountant” by office of firm. The title “certified public accountant” or the abbreviation “CPA” may not be used in connection with an office of a firm holding a permit unless the supervision requirement of AS 08.04.360 is satisfied. Sec. 08.04.380. Waiver of requirements. Sec. 08.04.390. Permit for individual practice as a public accountant. [Repealed, § 53 ch 16 SLA 2006.] Sec. 08.04.400. Permit for partnership, limited liability company, or corporate practice as a public accountant. [Repealed, § 53 ch 16 SLA 2006.] Sec. 08.04.410. Inactive license for person not engaged in practice. Notwithstanding AS 08.04.105 or 08.04.195, an individual holding a license who is not engaged in the practice of public accounting may maintain the license in good standing by notifying the board that the individual is inactive and paying the required fee. Sec. 08.04.420. Practice privileges. (a) An individual who does not have a license in this state, but who is licensed to practice public accounting in another state and whose principal place of business for the practice of public accounting is in the other state may engage in the practice of public accounting in this state under a practice privilege if the state in which the individual is licensed to practice public accounting (1) requires as a condition of licensure that an individual (A) have at least 150 semester hours of college education, including a baccalaureate or higher degree conferred by a college or university; (B) achieve a passing grade on the Uniform Certified Public Accountant Examination; and (C) possess at least one year of experience, which includes providing any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax, or consulting skills; the experience may be obtained through practice with the government, industry, colleges, universities, or the public; or (2) does not require as a condition of licensure that an individual satisfy the requirements of (1) of this subsection, but the individual's qualifications are substantially equivalent to the requirements of (1) of this subsection; however, for the purposes of this paragraph, the education of an individual who holds a valid license to practice public accounting that is issued by another state before January 1, 2013, and who passes the Uniform Certified Public Accountant Examination before January 1, 2013, is exempt from the education requirement identified in (1)(A) of this subsection. (b) [Repealed, § 44 ch 5 SLA 2022.] (c) An individual who may engage in the practice of public accounting in this state under (a) of this section is not required to provide a notice to the board, to pay a fee to the board, or to submit documentation to the board in order to engage in the practice of public accounting in this state. The person may engage in the practice of public accounting by mail, by telephone, by electronic means, or in person. Sec. 08.04.421. Out-of-state permits and exemptions. Sec. 08.04.422. Conditions of practice privileges. An individual with a practice privilege who engages in the practice of public accounting in the state under the practice privilege, a firm with a permit that engages in the practice of public accounting in this state, and a firm that hires an individual with a practice privilege shall (1) consent to the personal and subject matter jurisdiction and disciplinary authority of the board; (2) agree to comply with this chapter, including the regulations adopted by the board; (3) agree that the individual or firm will stop offering to engage or engaging in the practice of public accounting, whether individually or on behalf of a firm, if the license from the state of the individual's or firm's principal place of business becomes invalid; and (4) consent to the appointment of the state board that issued the individual's license as the individual's or firm's agent for service of process in a court action or in another proceeding against the individual or firm that arises out of a transaction or an operation connected with or incidental to the individual's or firm's engagement in the practice of public accounting. Sec. 08.04.423. Competency requirement after licensing. If, at any time after receiving a license, a licensee decides to perform attest functions, the licensee shall meet the competency requirements established by the board by regulation. Sec. 08.04.425. Continuing education. (a) The board shall by regulation prescribe requirements for continuing education for individuals with licenses under this chapter. In adopting these regulations, the board may (1) use and rely upon guidelines and pronouncements with respect to continuing education issued by recognized educational and professional associations in the field; and (2) prescribe content, duration, and organization of courses or programs that will satisfy the continuing education requirements. (b) Each application for renewal of a license to practice as a certified public accountant by an individual who has held a license as a certified public accountant for two years or more shall be accompanied or supported by documents or other evidence indicating satisfaction of the continuing education requirements prescribed by the board during the two years immediately preceding the application. (c) Failure by an applicant for renewal of a license to furnish the evidence required under (b) of this section constitutes grounds for revocation, suspension, or refusal to renew the license under AS 08.04.450 unless the board determines that failure to have been due to reasonable cause or excusable neglect. However, the board may renew a license despite failure to furnish evidence of satisfaction of the continuing education requirements established under (a) of this section if the applicant agrees to follow a particular program or schedule of continuing education prescribed by the board. (d) In adopting regulations under (a) of this section, or in issuing individual orders under (c) of this section, the board (1) shall consider (A) the accessibility of applicants to the continuing education courses or programs that it may require; and (B) any impediments to interstate practice of public accounting that may result from differences in continuing education requirements prescribed by other states; and (2) may relax or suspend the continuing education requirements (A) for applicants who certify that they do not intend to engage in the practice of public accounting; or (B) in instances of individual hardship. Sec. 08.04.426. Peer review. (a) The board may require as a condition for renewal of a license or a permit that the applicant for the renewal provide evidence of enrollment in a peer review program approved by the board by regulation. (b) [Repealed, § 44 ch 5 SLA 2022.] (c) The board shall adopt the regulations under (a) and (f) of this section in a reasonable time before the regulations are scheduled to become effective. (d) The regulations adopted under (a) or (f) of this section may require that (1) an applicant demonstrate that the applicant has undergone a peer review that is a satisfactory equivalent to the peer review under (a) of this section; (2) the administration of a peer review be subject to oversight by an oversight body established or approved by the board; (3) a peer review be performed and the documents be maintained in a manner that is designed to preserve confidentiality; and (4) organizations administering peer review programs provide information requested by the board. (e) [Repealed, § 44 ch 5 SLA 2022.] (f) The board shall, not more frequently than once every three years, require as a condition for renewal of a permit of a firm that the applicant firm undergo a peer review conducted as required by the board by regulation. The peer review must include verification that an individual who practices at the firm, including an individual who is responsible for supervising attest function services in the firm, and who signs or authorizes another person to sign the accountant's report on a financial statement on behalf of the firm, meets competency requirements established by the board. The regulations must (1) include reasonable provision for compliance by a firm showing that it has, within the preceding three years, undergone a peer review acceptable to the board that is substantially equivalent to the peer review required in (d) of this section; (2) require, for an organization administering peer review programs under (1) of this subsection, to be subject to periodic evaluation by the board to assess the effectiveness of the peer review program; (3) require, for peer reviews under (1) of this subsection, timely submittal of peer review documents on board request; and (4) maintain documents collected by the board under this subsection in a manner that is designed to preserve confidentiality. Sec. 08.04.430. Expiration and renewal. [Repealed, § 49 ch 94 SLA 1987. For current law, see AS 08.01.100 .] Sec. 08.04.440. Effect of failure to obtain license or permit. Failure of an individual or a firm to apply for a required license or permit or to pay a required fee within (1) three years from the expiration date of the license or permit last obtained or renewed, or (2) three years from the date the person was granted a license or permit as a public accountant valid under AS 08.04.661 deprives the individual or firm of the right to a license or permit or renewal of a license or permit unless the board determines that the failure is excusable. In case of excusable failure, the department shall determine the fee for a license or permit or renewal of a license or permit under this section. Sec. 08.04.450. Disciplinary power of board; investigations. (a) In addition to its powers under AS 08.01.075 , the board may revoke, suspend, or refuse to renew a license, practice privilege, or permit, may censure a holder of a license, practice privilege, or permit, or may require a holder of a license, practice privilege, or permit to undergo a peer review under terms required by the board or satisfactorily complete continuing education, if the board finds (1) fraud or deceit in obtaining a license or permit required by this chapter; (2) dishonesty or gross negligence in the practice of public accounting, or other acts discreditable to the accounting profession; (3) violation of a provision of AS 08.04.500 — 08.04.610 or failure to take corrective action to comply with AS 08.04.240 (i) within the time allowed under AS 08.04.240 (j); (4) violation of a rule of professional conduct or other regulation adopted by the board; (5) conviction of a felony under the laws of any state or of the United States; (6) conviction of any crime, an essential element of which is dishonesty or fraud, under the laws of any state or of the United States; (7) cancellation, revocation, suspension, or refusal to renew authority to practice as a certified public accountant or public accountant in any other state for any cause other than failure to pay a required fee; (8) suspension or revocation of the right to practice before any state or federal agency; (9) failure to satisfy the continuing education requirements prescribed by the board under AS 08.04.425 , except as conditioned, relaxed, or suspended by the board under AS 08.04.425 (c) and (d); (10) failure to comply with the peer review requirement under AS 08.04.426 ; (11) commission of an act in another state for which the holder of the license, practice privilege, or permit would be subject to discipline in this or the other state; (12) dishonesty, fraud, deceit, or gross negligence by the holder of a license, practice privilege, or permit in the filing or failure to file the income tax returns of the holder of the license, practice privilege, or permit; (13) violation of professional standards; (14) performance of any fraudulent act while holding a license, practice privilege, or permit under this chapter; or (15) a false or misleading statement or verification provided in support of the application of another person for a license or permit under this chapter. (b) The board shall investigate a complaint made by the board of accountancy, or other regulatory body for the practice of accounting, of another state. (c) The board may require the holder of a license, practice privilege, or permit who is disciplined under (a) of this section to bear the costs of the disciplinary proceedings. Sec. 08.04.460. Suspension or revocation of license revokes permit. [Repealed, § 53 ch 16 SLA 2006.] Sec. 08.04.470. Revocation of a firm's permit. The board shall revoke the permit of a firm if at any time the firm does not meet the qualifications prescribed by the sections of this chapter under which the firm qualified for the permit. Sec. 08.04.480. Grounds for discipline of a firm. The board may revoke or suspend the permit of a firm, may revoke, suspend, or refuse to renew its permit, or may censure the firm for any of the causes enumerated in AS 08.04.450 or for any of the following additional causes: (1) the revocation, suspension, or refusal to renew the license or practice privilege of an owner of a firm in this state or in another state; (2) the cancellation, revocation, suspension, or refusal to renew the permit or authority of the firm to practice public accounting in another state for any cause other than failure to pay a required fee in that state. Sec. 08.04.490. Reinstatement. Upon application in writing and after a hearing, the board may issue a new license or allow a practice privilege to an individual whose license or practice privilege has been revoked, or may issue a new permit to a person whose permit has been revoked, or may modify the suspension of or may reissue any license, practice privilege, or permit to practice public accounting that has been revoked or suspended. Sec. 08.04.495. Fees. The department shall set fees under AS 08.01.065 for examinations, reexaminations, permits, licenses, and practice privileges. Article 4. Unlawful Acts and Penalties. Sec. 08.04.500. Individual posing as a certified public accountant. (a) An individual may not assume or use the title or designation “certified public accountant” or the abbreviation “CPA” or any other title, designation, word, letter, abbreviation, sign, card, or device tending to indicate that the individual is a certified public accountant, unless the individual has received a license and all of the individual's offices in this state for the practice of public accounting are maintained as required by AS 08.04.360 and 08.04.370. (b) This section does not prohibit an individual in good standing in any state, including an individual acting as a sole practitioner in the individual's home state, holding a practice privilege under AS 08.04.420 from using the title “certified public accountant” or another title allowed under (a) of this section. Sec. 08.04.505. Issuance of reports. Only a person who holds a valid license, practice privilege, or permit may issue a report on behalf of another person or governmental unit. This restriction does not apply to (1) an officer, partner, member, or employee of a firm affixing that person's signature to a statement or report in reference to the financial affairs of the firm with wording designating the position, title, or office that the person holds in the firm; (2) an act of a public official or employee in the performance of official duties; (3) the performance by persons 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 on them. Sec. 08.04.510. Firm posing as certified public accountant. (a) A firm may not assume or use the title or designation “certified public accountant” or the abbreviation “CPA” or any other title, designation, word, letter, abbreviation, sign, card, or device tending to indicate that it is composed of certified public accountants, unless the firm holds a permit and is engaging in the practice of public accounting under the name on its permit. (b) [Repealed, § 44 ch 5 SLA 2022.] Sec. 08.04.520. Individual posing as public accountant. An individual may not assume or use the title or designation “public accountant” or the abbreviation “PA” or other title, designation, word, letter, abbreviation, sign, card, or device tending to indicate that the individual is a public accountant, unless the individual holds a current license or practice privilege and the individual's offices in this state for the practice of public accounting are maintained as required by AS 08.04.360 and 08.04.370. Sec. 08.04.530. Firm posing as public accountant. A firm may not assume or use the designation “public accountant” or the abbreviation “PA” or any other title, designation, word, letter, abbreviation, sign, card, or device tending to indicate that the firm is composed of public accountants, unless the firm holds a current permit, is practicing under the name on its permit, and its office in this state for the practice of public accounting is maintained as required by AS 08.04.360 and 08.04.370. Sec. 08.04.540. Use of deceptive title or abbreviation. An individual or firm may not assume or use the title or designation “certified accountant,” “chartered accountant,” “enrolled accountant,” “licensed accountant,” “registered accountant,” or any other title or designation likely to be confused with “certified public accountant” or “public accountant,” or any of the abbreviations “C,” “EA,” “LA,” “RA,” or similar abbreviations likely to be confused with “CPA” or “PA” except that “EA” may be used to the extent that it relates to the term “enrolled agent” as defined by the federal Internal Revenue Service. However, an individual or firm holding a current license, permit, or practice privilege and whose offices in this state for the practice of public accounting, if any, are maintained as required by AS 08.04.360 and 08.04.370 may hold out to the public as an accountant or auditor. Sec. 08.04.550. Corporation may not assume title. [Repealed, § 21 ch 147 SLA 1976. For current law, see AS 08.04.540 .] Sec. 08.04.560. Individual may not assume title. An individual may not sign or affix any name or any trade or assumed name used by that individual to any accounting or financial statement or opinion or report with any wording indicating that the person is a certified public accountant or public accountant or with any wording indicating that the person has expert knowledge in accounting or auditing, unless the individual holds a current license or practice privilege. Sec. 08.04.565. Prohibited acts. An individual licensed under AS 08.04.105 may not perform attest functions through a firm unless the firm holds a valid permit issued under AS 08.04.240 . Sec. 08.04.570. Acts not prohibited. AS 08.04.560 does not prohibit (1) an officer, employee, partner, member, or principal of any organization from affixing that person's signature to any statement or report in reference to the financial affairs of the organization together with any wording designating the position, title, or office which that person holds; (2) an act of a public official or public employee in the performance of that person's duties; (3) a person maintaining a bookkeeping or tax service from affixing that person's signature to any record, statement, or report maintained or prepared by the person. §§ 08.04.580 — 08.04.598. Partnership posing as accountants or auditors; use of title with corporate name; use of title with limited liability company name; use of title with name of other legal entity. Sec. 08.04.600. Disclosure of lack of license or permit. An individual or firm that does not hold a current license, a current practice privilege, or a current permit may not hold out to the public as a certified public accountant or public accountant by use of those words or abbreviations on any sign, card, or letterhead, or in any advertisement or directory, without indicating that the individual or firm does not hold a current license, a current practice privilege, or a current permit. This section does not prohibit (1) an officer, employee, partner, member, or principal of an organization from self-description through the position, title, or office that the person holds in the organization; (2) an act of a public official or public employee in the performance of that individual's duties; or (3) a person from maintaining a bookkeeping or tax service. Sec. 08.04.610. Deceptive use of title or designation by firm. A person may not assume or use the title or designation “certified public accountant” or “public accountant” or an abbreviation of them in conjunction with a name indicating or implying that there is a firm, or in conjunction with the designation “and Company,” “and Co.,” “L.L.C.,” “LLC,” “Ltd.,” or any similar designation, unless there is a bona fide firm holding a permit issued under that name. However, a sole proprietor or partnership lawfully using the title or designation “certified public accountant” or “public accountant” or an abbreviation of them in conjunction with those names or designation on April 26, 1960, may continue to do so if the person or partnership otherwise complies with this chapter. Sec. 08.04.620. Exceptions. This chapter does not prohibit (1) an individual who does not hold a current license or practice privilege from serving as an employee of or as an assistant to an individual or firm holding a current license, a current practice privilege, or a current permit if the employee or assistant does not use the employee's or assistant's name in connection with an accounting or financial statement; (2) an individual who holds a valid license or equivalent authorization in another state from indicating that the individual is entitled to use the title “certified public accountant,” but the individual may not indicate that services are available to the public unless the individual holds a current license or practice privilege issued under this chapter; (3) a holder of a certificate, license, or degree from a foreign country that entitles the holder to practice public accounting or the equivalent in the foreign country from providing professional services to the government of the country issuing the license, a business whose principal office is located in the foreign country, or a person who is a resident of the foreign country, if the holder of the certificate, license, or degree issued by the foreign country does not perform attest functions, or issue a report regarding an individual, firm, or government of the state, and uses only the title or designation permitted under the certificate, license, or degree issued by the foreign country followed by an English translation. Sec. 08.04.630. Injunction against unlawful act. Whenever, in the judgment of the board, a person has engaged in an act that constitutes a violation of AS 08.04.500 — 08.04.610, the board may apply to the appropriate court for an order enjoining the act. Upon a showing by the board that a person has engaged in the act, the court shall grant an injunction or any other appropriate order without bond. Sec. 08.04.640. Penalty. A person who violates a provision of AS 08.04.500 — 08.04.610 is guilty of a misdemeanor and upon conviction is punishable by a fine of not more than $500, or by imprisonment for not more than one year, or by both. Sec. 08.04.650. Single act evidence of practice. The display or uttering by a person of a card, sign, advertisement, or other printed, engraved, or written instrument or device, bearing a person's name in conjunction with the words “certified public accountant,” or any abbreviation of that phrase, or with the words “public accountant,” or any abbreviation of that phrase, or any words or abbreviations likely to be confused with any of them is prima facie evidence in any action brought under AS 08.04.630 or 08.04.640 that the person whose name is displayed caused the display or uttering of the card, sign, advertisement, or written instrument or device, and that the person is holding out to be a certified public accountant or public accountant. In any action, evidence of the commission of a single act prohibited by this chapter is sufficient to justify an injunction or a conviction without evidence of a general course of conduct. Article 5. Miscellaneous Provisions. Sec. 08.04.660. Ownership of accountant's working papers. Statements, records, schedules, working papers, and memoranda made by a certified public accountant or a public accountant incident to or in the course of professional service to a client, except reports submitted to a client, are the property of the accountant, in the absence of an express agreement between the accountant and the client to the contrary. A statement, record, schedule, working paper, or memorandum may not be sold, transferred, or bequeathed to a person other than a partner of the accountant without the consent of the client or the client's personal representative or assignee. Sec. 08.04.661. Previous licensure. A person holding a valid license as a public accountant under former AS 08.04.270 or a person holding a valid permit under former AS 08.04.390 on June 29, 1980, may continue to practice under the conditions imposed by statute and regulation on that date but that person is otherwise subject to this chapter. A license or permit effective under this section may be renewed under conditions imposed by statute and regulation that were in effect on June 29, 1980, except that any renewal fee required under this chapter applies. Sec. 08.04.662. Confidential communications. (a) A license holder, a permit holder, or a practice privilege holder or a partner, an officer, a shareholder, a member, or an employee of a license holder, a permit holder, or a practice privilege holder may not reveal information communicated to the license holder, permit holder or practice privilege holder by a client about a matter concerning which the client has employed the license holder, permit holder, or practice privilege holder in a professional capacity. This section does not apply to (1) information required to be disclosed by the standards of the public accounting profession in reporting on the examination of financial statements; (2) the release of information the client has authorized the license holder, permit holder, or practice privilege holder to reveal; (3) information revealed as part of the discovery of evidence related to a court or administrative proceeding or introduced in evidence in a court or administrative proceeding; (4) information revealed in ethical investigations conducted by private professional organizations; (5) information revealed in the course of a peer review under AS 08.04.426 ; or (6) information disclosed (A) under applicable state or federal laws or regulations; or (B) as required by the Public Company Accounting Oversight Board. (b) Client information obtained by the board under (a)(3) — (6) of this section is confidential and is not a public record for purposes of AS 40.25.110 — 40.25.140. Sec. 08.04.670. Construction. If any provision of this chapter or the application of any provision to any person or to any circumstances is invalid, the remainder is not affected. Article 6. General Provisions. Sec. 08.04.680. Definitions. In this chapter, unless the context indicates otherwise, (1) “attest function” means (A) an audit or other engagement, if the performance of the audit or other engagement is established by the Statements on Auditing Standards; (B) a review of a financial statement, if the performance of the review is established by the Statements on Standards for Accounting and Review Services; (C) an examination of prospective financial information, if the performance of the examination is established by the Statements on Standards for Attestation Engagements; (D) an engagement, if the performance of the engagement is established by the Auditing Standards of the Public Company Accounting Oversight Board; or (E) any examination, other than an examination described in (C) of this paragraph, review, or agreed upon procedure performed in accordance with the standards on attestation engagements as (i) developed by national accountancy organizations, including the American Institute of Certified Public Accountants and the Public Company Accounting Oversight Board; and (ii) adopted by the board in regulation; (2) “board” means the Board of Public Accountancy; (3) “certificate” means a certificate granted under AS 08.04.100 ; (4) “compilation service” means a service of any compilation engagement performed in accordance with the Statements on Standards for Accounting and Review Services; (5) “department” means the Department of Commerce, Community, and Economic Development; (6) “firm” means a sole proprietorship, partnership, limited liability company, corporation, or other legal entity; (7) “legal entity” means an organization that can organize as a legal person under the laws of this state; (8) “license” means a license issued under AS 08.04.105 or 08.04.195; (9) “limited liability company” means an organization organized under AS 10.50 or a foreign limited liability company; in this paragraph, “foreign limited liability company” has the meaning given in AS 10.50.990 ; (10) “member” means a person who has been admitted to membership in a limited liability company; (11) “partnership” means a general partnership, a limited partnership, a limited liability partnership, or another form of partnership; (12) “peer review” means a study, appraisal, or review of one or more aspects of the professional work of a person in the practice of public accounting who issues attests conducted as prescribed under AS 08.04.426 by a person who holds a certificate and who is not affiliated with the person being reviewed; (13) “permit” means a permit issued under AS 08.04.240 ; (14) “practice of public accounting” means the offering to perform or the performance as a person holding a license, practice privilege, or permit under this chapter of a service involving the use of accounting or auditing skills; in this paragraph, “accounting or auditing skills” includes preparing financial statements, issuing reports, furnishing management services, furnishing financial advisory services, providing consulting services, preparing tax returns, advising on tax matters, or consulting on tax matters;

(15) “practice privilege” means a practice privilege authorized under AS 08.04.420 ; (16) “preparation of financial statements” means providing a service of any preparation of financial statements engagement to be performed in accordance with the Statements on Standards for Accounting and Review Services; (17) “principal place of business” means the office location designated by an individual for the purposes of substantial equivalency and reciprocity; (18) “report,” when used with reference to an attest function or compilation service, (A) means (i) an opinion, report, or other form of language that states or implies assurance as to the reliability of the attested information or compiled financial statements and that also contains or is accompanied by a statement or implication that the person issuing it has special knowledge or competency in accounting or auditing, which may arise from use by the issuer of the report of names or titles indicating that the issuer is a certified public accountant or auditor, or from the language of the report itself; (ii) any form of language that disclaims an opinion when the form of the language is conventionally understood to imply a positive assurance as to the reliability of the attested information or compiled financial statements referred to or special competence on the part of the person issuing the language; (iii) any other form of language that is conventionally understood to imply that assurance or special knowledge or competence; (B) does not include (i) a compilation of financial statement language that does not express or imply assurance or special knowledge or competence; or (ii) the following disclaimer language when used by a person without a license or practice privilege in connection with financial statements: “I (we) have prepared the accompanying (financial statements) of (name of entity) as of (time period) for the (period) then ended. This presentation is limited to preparing, in the form of financial statements, information that is the representation of management (owners).”; or “I (we) have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them.”; (19) “state” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the United States Virgin Islands, and American Samoa. Sec. 08.04.690. Short title. This chapter may be cited as the Accountancy Act.