CHAPTER 5. PERMITS FOR FIRMS
IC 25-2.1-5
Chapter 5. Permits for Firms
IC 25-2.1-5-1
Grant of permit or renewal
Sec. 1. The board shall grant or renew a permit to practiceaccountancy to a CPA or PA firm that applies and meets therequirements under this chapter.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,SEC.28.
IC 25-2.1-5-2
Expiration of renewal
Sec. 2. An initial and renewed permit expires at the earlier of thefollowing:
(1) Three (3) years after issuance.
(2) At a time established by the board.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,SEC.29.
IC 25-2.1-5-3
Form and time for application; grant or denial; temporary permit
Sec. 3. (a) An application for a permit must be made:
(1) in a form; and
(2) in the case of an application for renewal, between the datesthe board specifies.
(b) The board shall grant or deny an application within ninety (90)days after the application is properly filed.
(c) When the applicant seeks the opportunity to show thatissuance or renewal of a permit was mistakenly denied, or when theboard is not able to determine whether a permit should be granted ordenied, the board may issue to the applicant a temporary permit thatexpires ninety (90) days after issuance or when the board determineswhether to issue or renew the permit.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,SEC.30.
IC 25-2.1-5-4
Application for initial permit; demonstration of firm memberqualifications
Sec. 4. (a) An applicant for initial issuance or renewal of a permitto practice under this chapter must show that:
(1) a simple majority of the ownership of the firm, in terms offinancial interests and voting rights of all partners, officers,shareholders, members, or managers, belongs to holders of anactive CPA certificate issued under this article or acorresponding certificate that is issued after examination byanother state; and
(2) the partners, officers, shareholders, members, or managerswhose principal place of business is in Indiana and who practice
accountancy in Indiana hold a valid CPA certificate issuedunder this article.
(b) For firms of public accountants, at least a simple majority ofownership of the firm, in terms of financial interests and votingrights, must belong to public accountants certified under IC 25-2.1-6.
(c) A firm issued a permit under this section may includenonlicensee owners if:
(1) the firm designates a licensee who is responsible for theproper registration of the firm and identifies that individual tothe board;
(2) all nonlicensee owners are active individual participants inthe CPA or PA firm or affiliated entities; and
(3) the firm complies with the other requirements that the boardmay impose by rule.
(d) An individual licensee who is responsible for supervisingattest or compilation services and signs or authorizes an individualto sign the accountant's report on the financial statements on behalfof the firm shall meet the competency requirements set out in theprofessional standards adopted by the board for the services.
(e) An individual licensee who signs or authorizes an individualto sign the accountant's report on the financial statements on behalfof the firm shall meet the competency requirement of subsection (d).
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,SEC.31.
IC 25-2.1-5-5
Application for initial permit; registration of separate offices runby qualified person
Sec. 5. (a) An applicant for initial issuance or renewal of a permitto practice as a CPA firm under this chapter must:
(1) register each office of the firm within Indiana with theboard; and
(2) show that all attest and compilation services rendered in thisstate are under the charge of an individual holding a valid CPAcertificate issued under this article or the correspondingprovisions of another state.
(b) An applicant for initial issuance or renewal of a permit topractice as a PA firm under this chapter must:
(1) register each office of the firm within Indiana with theboard; and
(2) show that all attest and compilation services rendered in thisstate are under the charge of an individual holding a valid CPAor PA certificate issued under this article or the correspondingprovision of another state.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,SEC.32.
IC 25-2.1-5-6
Fees
Sec. 6. The board shall establish fees under IC 25-1-8-2.As added by P.L.30-1993, SEC.7.
IC 25-2.1-5-7
Information as to other jurisdictions where applicant practices;notice of changes in practice or suspension of members
Sec. 7. (a) An applicant for initial issuance or renewal of a permitunder this chapter shall:
(1) list each state in which the applicant has applied for or holdsa permit to practice accountancy as a firm;
(2) list any past denial, revocation, or suspension of a permit byanother state; and
(3) notify the board in writing, not more than thirty (30) daysafter a change:
(A) in the identities of partners, members, officers, orshareholders who work regularly in Indiana;
(B) in the number or location of offices in Indiana;
(C) in the identity of the individuals in charge of the offices;and
(D) of the issuance, denial, revocation, or suspension of apermit by another state.
(b) Firms that fail to comply with this chapter due to changes infirm ownership or personnel, after receiving or renewing a permit,shall take corrective action to bring the firm into compliance asquickly as possible. The board may grant a reasonable time for a firmto take corrective action. Failure to bring the firm into compliancewithin a reasonable period as determined by the board shall result inthe suspension or revocation of the firm permit.
As added by P.L.30-1993, SEC.7. Amended by P.L.128-2001,SEC.33.
IC 25-2.1-5-8
Rules requiring quality review before renewal
Sec. 8. (a) The board shall adopt rules that require as a conditionto renew a permit under this chapter, that an applicant undergo, notmore than once every three (3) years, a quality review conducted ina manner the board specifies.
(b) The rules adopted under subsection (a) must:
(1) be adopted reasonably in advance of the time when a qualityreview first becomes effective;
(2) include reasonable provision for compliance by an applicantshowing that the applicant has in the preceding three (3) yearsundergone a quality review that is a satisfactory equivalent tothe quality review required under this section;
(3) require, with respect to quality reviews under subdivision(2), that the quality review be subject to review by an oversightbody established or sanctioned by the board that shallperiodically report to the board on the effectiveness of thereview program and provide to the board a listing of firms thathave participated in a quality review program; and
(4) require, with respect to quality reviews under subdivision
(2), that:
(A) the proceedings, records, and work papers of a reviewcommittee are privileged and are not subject to discovery,subpoena, or other means of legal process or introductioninto evidence in a civil action, arbitration, administrativeproceeding, or Indiana board of accountancy proceeding;and
(B) a member of the review committee or individual whowas involved in the quality review process is not permittedor required to testify in a civil action, arbitration,administrative proceeding, or Indiana board of accountancyproceeding to matters:
(i) produced, presented, disclosed or discussed during, orin connection with, the quality review process; or
(ii) that involve findings, recommendations, evaluations,opinions, or other actions of the committee or a committeemember.
As added by P.L.30-1993, SEC.7. Amended by P.L.190-2007,SEC.10.
IC 25-2.1-5-9
Quality review; confidentiality of records
Sec. 9. (a) Notwithstanding section 8(4)(B) of this chapter,information, documents, or records that are publicly available are notimmune from discovery or use in any civil action, arbitration,administrative proceeding, or Indiana board of accountancyproceeding merely because they were presented or considered inconnection with the quality review process.
(b) Any:
(1) materials prepared in connection with a particularengagement merely because they happen to subsequently bepresented or considered as part of the quality review process; or
(2) dispute between review committees and individuals or firmssubject to a quality review arising from the performance of thequality review;
are not privileged.
As added by P.L.30-1993, SEC.7.