HB 1401 - FINAL VERSION
HOUSE BILL 1401
SPONSORS: Rep. Lovejoy, Rock. 36; Rep. Hennessey, Graf. 1
COMMITTEE: Executive Departments and Administration
This bill makes various changes to the regulation of accountants by the board of accountancy related to the update of the Uniform Accountancy Act.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
I.(a) "Attest'' means providing the following [financial statement] services:
(1) Any audit or other engagement to be performed in accordance with the American Institute of Certified Public Accountants' Statements on Auditing Standards (SAS).
(2) Any review of a financial statement to be performed in accordance with the American Institute of Certified Public Accountants' Statements on Standards for Accounting and Review Services (SSARS).
(3) Any examination of prospective financial statements to be performed in accordance with the American Institute of Certified Public Accountants' Statements on Standards for Attestation Engagements (SSAE).
(4) Any engagement to be performed in accordance with the Public Company Accounting Oversight Board's Auditing Standards.
(5) Any examination, review, or agreed upon procedures engagement to be performed in accordance with the Statements on Standards for Attestation Engagements (SSAE), other than the examination described in subparagraph (a)(3).
(b) The Statements on Standards specified in subparagraph (a) shall be adopted by reference by the board pursuant to rulemaking and shall be those developed for general application by recognized national accountancy organizations such as the American Institute of Certified Public Accountants.
XV. "Report,'' when used with reference to [financial statements] any attest or compilation service, means an opinion, report, or other form of language that states or implies assurance as to the reliability of [any] the attested or compiled financial statements, and that also includes or is accompanied by any statement or implication that the person or firm issuing it has special knowledge or competence in accounting or auditing. Such a statement or implication of special knowledge or competence may arise from use by the issuer of the report of names or titles indicating that such person or firm is an accountant or auditor, or from the language of the report itself. The term "report'' shall include any form of language which disclaims an opinion when such form of language is conventionally understood to imply any positive assurance as to the reliability of the attested or compiled financial statements referred to or special competence on the part of the person or firm issuing such language, and it shall include any other form of language that is conventionally understood to imply such assurance or such special knowledge or competence.
XVII. "State'' means any state of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, the Commonwealth of the Northern Mariana Islands, and Guam; except that "this state'' means the state of New Hampshire.
XIX. "Uniform Accountancy Act'' means the [July 27, 2007] May 2014 edition of the model legislation developed jointly by the American Institute of Certified Public Accountants and the National Association of State Boards of Accountancy.
I. The board shall grant or renew permits to practice as a CPA firm to applicants that demonstrate their qualifications therefor in accordance with this section.
(a) The following are required to hold a permit issued under this section:
(1) Any firm with an office in this state performing attest services as defined in RSA 309-B:3, I, or compilation services under RSA 309-B:3, III-a;
(2) Any firm with an office in this state that uses the designation "CPAs'' or "CPA firm''; or
(3) Any firm that does not have an office in this state but [performs] offers or renders attest services as described in RSA [309-B:3, I(a)(1), (3), or (4)] 309-B:3 for a client having its home office in this state[.
(b) A firm which does not have an office in this state may perform services described in RSA 309-B:3, I(a)(2) and RSA 309-B:3, III-a for a client having its home office in this state and may use the designation "CPAs'' or "CPA firm'' without a permit issued under this section only if: ], unless it meets each of the following requirements:
[(1)] (A) It has the qualifications described in paragraphs III and VIII of this section; [and]
[(2)] (B) It performs such services through an individual with practice privileges under RSA 309-B:6; and
(C) It can lawfully do so in the state where said individuals with practice privilege have their principal place of business.
[(c)] (b) A firm which is not subject to the requirements of subparagraphs (a)(3) or (b) of this paragraph may perform other professional services while using the title "CPA'' or "CPA firm'' in the state without a license issued under this section only if:
(1) It performs such services through an individual with practice privileges under RSA 309-B:6; and
(2) It can lawfully do so in the state where said individuals with practice privileges have their principal place of business.
(b) Any CPA or PA firm may include non-licensee owners provided that:
(1) The firm designates a licensee of this state, or in the case of a firm which must have a permit pursuant to RSA 309-B:6, IV a licensee of another state who meets the requirements in RSA 309-B:6, I, who is responsible for the proper registration of the firm and identifies that individual to the board.
(2) All non-licensee owners are of good moral character and are active individual participants in the CPA or PA firm or affiliated entities.
(3) The firm complies with such other requirements as the board may impose by rule.
(c) Any individual licensee and any individual qualifying for practice privileges under RSA 309-B:6 who is responsible for supervising attest services, and signs or authorizes someone to sign the accountant's report on [the financial statements on] behalf of the firm, shall meet the appropriate experience requirements for such services as required by professional standards for such services.
(d) Any individual licensee and any individual qualifying for practice privileges under RSA 309-B:6 who signs or authorizes someone to sign the accountant's report on [the financial statements on] behalf of the firm shall meet the experience requirement of RSA 309-B:8, III(c).
VIII. Persons not licensed under this chapter, unless they qualify for a practice privilege under RSA 309-B:6 or are exempt from the permit requirement under RSA 309-B:8, shall not use language in any statement relating to the [financial] affairs of a person or entity which is conventionally used by licensees in reports on financial statements or any attest service. In this regard, the board shall issue safe harbor language that persons not licensed under this chapter, or not qualifying for a practice privilege under RSA 309-B:6, or not exempt from the permit requirement under RSA 309-B:8 may use in connection with such financial information. Such disclaimer language shall include the following:
XI. No provision of this section shall have any application to a person holding a certification, designation, degree, license, or permit granted in a foreign country entitling the holder to engage in the practice of public accountancy or its equivalent in such country, whose activities in this state are limited to the provision of professional services to persons or firms who are residents of, governments of, or business entities of the country in which the person holds such entitlement, who performs no attest services as defined, and who issues no reports with respect to the [financial statements] information of any other persons, firms, or governmental units in this state, and who does not use in this state any title or designation other than the one under which that person practices in such country, followed by a translation of such title or designation into English, if it is in a different language, and by the name of such country.
I. RSA 309-B:3, VII-a, relative to the definition of home office.
II. RSA 309-B:8, IV, relative to the registration of each office.
Approved: May 25, 2018
Effective Date: July 24, 2018
|Jan. 25, 2018||House||Hearing|
|Jan. 25, 2018||House||Exec Session|
|Feb. 22, 2018||House||Floor Vote|
|March 27, 2018||Senate||Hearing|
|April 19, 2018||Senate||Floor Vote|
|Jan. 3, 2018||Introduced 01/03/2018 and referred to Executive Departments and Administration HJ 1 P. 9|
|Jan. 25, 2018||Public Hearing: 01/25/2018 02:00 PM LOB 306|
|Jan. 25, 2018||Executive Session: 01/25/2018 LOB 306|
|Feb. 22, 2018||Committee Report: Ought to Pass for 02/22/2018 (Vote 14-0; CC) HC 7 P. 8|
|Committee Report: Ought to Pass (Vote 14-0; CC)|
|Feb. 22, 2018||Ought to Pass: MA VV 02/22/2018 HJ 5 P. 10|
|March 13, 2018||Introduced 03/13/2018 and Referred to Finance; SJ 7|
|March 8, 2018||Introduced 03/08/2018 and Referred to Finance; SJ 7|
|March 27, 2018||Hearing: 03/27/2018, Room 103, SH, 01:30 pm; SC 14|
|April 19, 2018||Committee Report: Ought to Pass, 04/19/2018; SC 17|
|April 19, 2018||Ought to Pass: MA, VV; OT3rdg; 04/19/2018; SJ 13|
|April 26, 2018||Enrolled (In recess 04/26/2018); SJ 15|
|April 26, 2018||Enrolled 04/26/2018|
|May 25, 2018||Signed by Governor Sununu 05/25/2018; Chapter 69; Eff. 7/24/2018|