The Iowa Accountancy Act of 2001
Adopted Rules

CHAPTER 7
CERTIFIED PUBLIC ACCOUNTING FIRMS

193A-7.1(79GA,ch 55) Initial permit to practice.
7.1(1) A new firm, as defined in rule 193A-1.1(79GA,ch 55), about to engage in the practice of public accounting in this state under the requirements and provisions of 2001 Iowa Acts, chapter 55, section 7, shall make application for a permit to practice upon a form that may be obtained from the board office.

A firm must hold a permit issued under 2001 Iowa Acts, chapter 55, section 7, and these rules in order to perform attest services or use the title "CPAs" or "CPA firm." A nonrefundable application fee shall be charged.

7.1(2) The application shall include information that discloses the highest level of accounting service offered, such as compilation or attest.

7.1(3) The application shall list the names of all owners, a simple majority of whom shall hold certificates issued under 2001 Iowa Acts, chapter 55, section 6 or 19, or issued in some other state.

7.1(4) The application shall list the name and certificate number of any licensee who is responsible for supervising attest or compilation services and who signs or authorizes someone to sign the accountant's report on financial statements on behalf of the firm. The application shall affirm that any licensee listed meets the competency requirements set forth in 193A-6.3(79GA,ch 55).

7.1(5) The application shall list the number and location of offices within this state and name of the licensee in charge of such offices.

7.1(6) The application shall affirm that all attest and compilation services rendered in this state are under the charge of an individual who holds a valid certificate issued under 2001 Iowa Acts, chapter 55, section 6, or section 19(2), and who meets the competency requirements outlined in 193A-6.3(79GA,ch 55).

7.1(7) The application shall designate an individual who holds a valid certificate issued under 2001 Iowa Acts, chapter 55, section 6 or 19, as the person responsible for ensuring that the firm has complied with all requirements for a permit to practice.

7.1(8) The application shall affirm that all nonlicensee owners are active participants in the firm or an affiliated entity.

7.1(9) The application shall affirm that all nonlicensees who are by statute required to comply with continuing education imposed by a regulatory authority meet those requirements.

7.1(10) The application for initial issuance of a permit shall list all states in which the applicant has applied for or holds a permit as a certified public accounting firm and list any past denial, revocation, or suspension of a permit by another state.

7.1(11) The application shall list the names of all non-CPA owners and provide information regarding any owner who has been convicted of a crime described in 2001 Iowa Acts, chapter 55, section 5(2), or who has had a professional license of any kind revoked in this or any other jurisdiction. The board may deny the application if a non-CPA owner has been convicted of a crime described in 2001 Iowa Acts, chapter 55, section 5(2), or has had a professional license of any kind revoked in this or any other jurisdiction.

193A-7.2(79GA,ch 55) Annual renewal of permit. Applications to renew a permit to practice may be obtained from the board office or on the board's Web site. While the board generally mails renewal applications in the May preceding permit expiration, neither the board's failure to mail an application nor a permit holder's failure to receive an application shall excuse the requirement to timely renew and pay the renewal fee.

193A-7.3(79GA,ch 55) Renewal procedures.
7.3(1) The permit holder shall file a timely and sufficient renewal application with the board by the June 30 deadline each year. Applications shall be deemed filed on the date received by the board or, if mailed, the date postmarked, but not the date metered.

7.3(2) The permit holder shall list on the renewal application all states in which the applicant has applied for or holds a permit as a certified public accounting firm and list any past denial, revocation, suspension, refusal to renew or voluntary surrender to avoid disciplinary action of a permit to practice. Permit holders shall notify the board in writing within 30 days after the occurrence of any issuance, denial, revocation, suspension or refusal to renew or voluntary surrender of a permit to practice as a certified public accounting firm to avoid disciplinary action by another state.

7.3(3) Within the meaning of Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55, a timely and sufficient renewal application shall be:

a. Received by the board in person or postmarked with a nonmetered United States Postal Service postmark on or before the date the permit is set to expire or lapse;

b. Signed by the licensee in charge of the firm's practice if submitted in person or mailed;

c. Fully completed and accompanied with the proper fee. The fee shall be deemed improper if, for instance, the amount is incorrect, the fee was not included with the application, the credit card number provided by the applicant is incorrect, the date of expiration of a credit card is omitted or incorrect, the attempted credit card transaction is rejected, or the applicant's check is returned for insufficient funds or a closed account.

193A-7.4(79GA,ch 55) Failure to renew permit.
7.4(1) A firm that fails to renew the permit by the expiration date, but does so within 30 days following the expiration date, shall be assessed a penalty of 25 percent of the biennial renewal fee.

7.4(2) If the firm fails to renew the permit within the 30-day grace period outlined in subrule 7.4(1), the permit will lapse and the firm shall be required to reinstate in accordance with subrule 7.4(3). The firm is not authorized to practice during the period of time that the permit is lapsed.

7.4(3) The board may reinstate the permit upon the payment of the proper renewal fee and a penalty of $100.

193A-7.5(79GA,ch 55) Notices required. A holder of or applicant for a permit shall notify the board in writing within 30 days after an occurrence of any of the following:

1. A change in the identity of an owner, partner, officer, shareholder, member, or manager who performs professional services in this state or for clients in this state.

2. A change in the number or location of offices within this state.

3. A change in the identity of a person in charge of such offices.

4. The issuance, denial, revocation, or suspension of a permit by another state.

193A-7.6(79GA,ch 55) Firms not in compliance with requirements. A firm, which after receiving or renewing a permit, is not in compliance with 2001 Iowa Acts, chapter 55, section 7, this section as a result of a change in firm ownership or personnel shall take corrective action to bring the firm back into compliance as quickly as possible or apply to modify or amend the permit. The board may grant a reasonable period of time, usually 90 days, for a firm to take such corrective action. Failure to comply within a reasonable period as deemed by the board shall result in the suspension or revocation of the firm permit.

193A-7.7(79GA,ch 55) Peer review required. As a condition of renewal of a permit to practice as a certified public accounting firm, the firm shall undergo, at least once every three years, a peer review conducted under the provisions outlined in 193A-Chapter 11.

These rules are intended to implement Iowa Code chapters 17A and 272C and 2001 Iowa Acts, chapter 55.