RS 37:77

§77. Firm permits to practice; attest experience; peer review; exceptions A. The board shall grant or renew permits to practice as a CPA firm to applicants who submit an application and demonstrate their qualifications in accordance with this Section. Any firm which has or establishes an office or a place of business in Louisiana from which to offer or perform professional services shall hold a permit issued pursuant to this Section in order to provide attest services or to use the title "CPA", "CPAs", "CPA firm", or "firm of Certified Public Accountants". A CPA firm that does not have an office or a place of business in Louisiana, but provides attest services in this state shall hold a permit issued pursuant to this Section unless it meets each of the following requirements: (1) Compliance with the qualifications described in Subsection C of this Section. (2) Compliance with the qualifications described in Subsection G of this Section. (3) It performs such services through an individual with practice privileges as provided in R.S. 37:94. (4) It can lawfully perform such services in the state where the individuals with practice privileges have their respective principal place of business. B.(1) Permits shall be initially issued and renewed annually. Applications for such permits shall be made in such form, and in the case of applications for renewal between such dates, as the board may specify. The board shall grant or deny any application for initial issuance of a permit no later than one hundred twenty days after the application is filed in proper form. Issuance or renewal of a permit shall not preclude the board from any further investigation and action against such permit or permit holder. Any permit which is not timely renewed with all required information shall expire on the date specified by the board. Any permit which has expired because of nonrenewal may be reinstated by the board upon payment of the renewal fee and any additional fees as may be prescribed by the board provided that the applicant is otherwise qualified for the issuance of a permit as provided in this Part. (2) Where an applicant seeks the opportunity to show that issuance or renewal of a permit was mistakenly denied or where the board is not able to determine whether the application should be granted or denied, the board may issue a provisional permit to the applicant. Such provisional permit shall expire at the end of one hundred twenty days after its issuance or when the board determines whether or not to issue or renew the permit for which application was made, whichever occurs first. C.(1) An applicant for initial issuance or renewal of a permit to practice shall be required to show that, notwithstanding any other provision of law, a simple majority of the ownership of the firm in terms of financial interests and voting rights of all partners, officers, shareholders, members, or managers belongs to holders of valid active certificates who are licensed in some state, and such partners, officers, shareholders, members, or managers whose principal place of business is in this state and who perform professional services in this state hold a valid active certificate issued under R.S. 37:76. Although firms may include nonlicensee owners, the firm and its ownership must comply with rules adopted by the board. (2) Any CPA firm may include nonlicensee owners provided that: (a) The firm designates a licensee of this state who is responsible for the proper registration of the firm and identifies that individual to the board. (b) All nonlicensee owners are of good moral character and active individual participants in the CPA firm or affiliated entities. (c) The firm complies with such other requirements as the board may impose. (3) Any individual licensee or individual granted practice privileges as provided by this Part who is responsible for supervising attest services and who signs or authorizes someone to sign the accountant's report on behalf of the firm shall meet the experience requirements set out in the professional standards for such services promulgated by the American Institute of Certified Public Accountants. In the absence of professional standards concerning such experience requirements, the board shall adopt rules specifying the requisite experience requirements. (4) Any individual licensee or individual granted practice privileges as provided by this Part who signs or authorizes someone to sign the accountant's report on behalf of the firm shall meet the experience requirements promulgated by the American Institute of Certified Public Accountants. In the absence of professional standards concerning such experience requirements, the board shall adopt rules specifying the requisite experience requirements. D. The board shall charge a fee in an amount prescribed by the board for each application for initial issuance or renewal of a permit. E. Applicants for initial issuance, renewal, or reinstatement of permits shall list in their applications all reasonable and relevant information required by the board which may include but not be limited to all states in which they have applied for or hold permits as CPA firms and list the information pertaining to any current investigation or past denial, revocation, or suspension of a certificate, license, or permit by any other state or the federal government. Each holder of or applicant for a permit shall notify the board in writing within thirty days after the occurrence of any change in the identities of partners, officers, shareholders, members, or managers whose principal place of business is in this state, any change in the number or location of offices within the state, any change in the identity of those persons in charge of such offices, and any denial, revocation, or suspension of a permit by any other state. F. Firms which fall out of compliance with the provisions of this Section due to changes in firm ownership or personnel after receiving or renewing a permit shall take corrective action to bring the firm back into compliance as quickly as possible. The board may grant a reasonable period of time for a firm to take such corrective action. Failure to bring the firm back into compliance within a reasonable period as determined by the board may result in action by the board including the possibility of suspension or revocation of the firm permit. G.(1) Firms that provide attest services, excluding engagements subject to a permanent inspection program of the Public Company Accounting Oversight Board, shall enroll in a board-approved peer review program and comply with the applicable requirements of that program. (2)(a) Each of the following is approved by the board: (i) The American Institute of Certified Public Accountants peer review program. (ii) Other peer review programs administered by organizations fully involved in the administration of the American Institute of Certified Public Accountants peer review program that utilize the Standards for Performing and Reporting on Peer Reviews promulgated by the American Institute of Certified Public Accountants. The board may approve other nationally recognized peer review programs and peer review standards that are not less stringent than the American Institute of Certified Public Accountants peer review program and peer review standards. (iii) The Society of Louisiana Certified Public Accountants, other state CPA societies fully involved in the administration of the American Institute of Certified Public Accountants peer review program, and the American Institute of Certified Public Accountants for the administration of peer review. (iv) The Public Company Accounting Oversight Board's permanent inspection process for engagements subject to a permanent inspection program of the Public Company Accounting Oversight Board. Firms performing only such engagements are exempt from the peer review requirement in Paragraph (1) of this Subsection. (b) Firms subject to permanent inspections of the Public Company Accounting Oversight Board are also required to meet the peer review requirements in Paragraph (1) of this Subsection that cover the portion of the firm's attest practice not subject to the Public Company Accounting Oversight Board's permanent inspection process, should the firm have such a practice. (3) Firms shall make peer review results and inspection results of the Public Company Accounting Oversight Board available to the board in accordance with rules and regulations adopted by the board. (4) The peer review process shall be conducted in a manner pursuant to this Section in accordance with rules and regulations adopted by the board. (5)(a) The proceedings, records, reports, letters of comment, letters of response, or working papers related to a peer review shall be privileged and shall not be subject to discovery, subpoena, or other means of legal process or introduction into evidence in any civil proceeding. No person, firm, or governmental entity in possession of information or documents related to any proceedings, records, reports, letters of comments, letters of response, or working papers on a peer review shall disclose such information or records to any person, firm, or governmental entity either voluntarily or pursuant to discovery, subpoena, or other means of legal process. No member of a peer review committee or person who was involved in a peer review shall be permitted or required to testify in any civil proceeding as to any matters produced, presented, disclosed, or discussed during or in connection with the peer review, or as to any findings, recommendations, evaluations, opinions, or other actions of any person involved in the peer review. (b) The privilege in Subparagraph (a) of this Paragraph shall not be construed to do any of the following: (i) Establish a privilege with respect to any information or records within the knowledge or possession of a person or firm not obtained from or produced in connection with a peer review. (ii) Prevent the disclosure, use, or introduction of information or other records privileged by Subparagraph (a) of this Paragraph in any civil proceeding arising out of a dispute between persons conducting a peer review and a licensee subject to a peer review and arising from the performance of a peer review. (iii) Prevent a designee of the board from disclosing, using, introducing, or testifying with respect to information or records which are relevant in a proceeding before the board pursuant to R.S. 37:79, 80, 81, and 84. (iv) Prevent designees of the Society of Louisiana Certified Public Accountants from giving the board access to peer review reports or having discussions with a designee of the board concerning peer review reports. (v) Prevent peer review reports of licensees who participate in the Center for Public Company Audit Firms Peer Review program from being disclosed. H. All firms holding a valid registration as a certified public accounting firm on June 18, 1999, shall be deemed to have met the initial permit requirements of this Section. I. Repealed by Acts 2016, No. 553, §2. Acts 1979, No. 510, §1; Acts 1989, No. 154, §1; Acts 1991, No. 880, §1, eff. Jan. 1, 1992; Acts 1999, No. 473, §1, eff. June 18, 1999; Acts 2006, No. 214, §1; Acts 2007, No. 102, §1; Acts 2008, No. 203, §1; Acts 2016, No. 553, §§1, 2.