# Title 43 — Occupations and Professions

## Chapter 43-02.2 — Accountants

### § 43-02.2-01. Purpose.

It is the policy of this state, and the purpose of this chapter, to promote the reliability of
information that is used for guidance in financial transactions or for accounting for or assessing
the financial status or performance of commercial, noncommercial, and governmental
enterprises. Public interest requires that persons professing special competence in accountancy
or offering assurance as to the reliability or fairness of presentation of such information have
demonstrated or maintained their qualifications to do so, and that persons who have not
demonstrated and maintained such qualifications, including certificate holders not in public
practice, not be permitted to hold themselves out as having such special competence or to offer
such assurance. Public interest requires that the conduct of persons licensed as having special
competence in accountancy be regulated in all aspects of their professional work. Public interest
requires that a public authority competent to prescribe and assess the qualifications and to
regulate the conduct of practitioners of public accountancy and certificate holders not in public
practice be established and that the use of titles which are likely to mislead the public as to the
status or competence of the persons using such titles be prohibited.
### § 43-02.2-02. Definitions.

As used in this chapter, unless the context requires otherwise:
1. "Board" means the state board of accountancy.
2. "Certificate" means a certificate as "certified public accountant" issued under section
accountant issued after examination under the law of any other state.
3. "Client" means a person or entity that agrees with a licensee to receive any
professional service other than an employer-employee relationship.
4. "Firm" means a sole proprietorship, a corporation, a partnership, or any combination
thereof, or any other entity permitted by law.
5. "Licensee" means the holder of a certificate, license, or permit issued under this
chapter or prior law.
6. "NASBA national qualification appraisal service" means the section of the national
association of state boards of accountancy that either reviews the CPA licensure
requirements of its member jurisdictions to determine which CPA licensure
requirements are substantially equivalent to the licensure requirements of the Uniform
Accountancy Act or evaluates the credentials of individuals who are licensed in
jurisdictions that are not substantially equivalent to determine their individual
substantial equivalency.
7. "Permit" means a permit to practice public accountancy issued under section
states.
8. "Practice of" or "practicing" public accountancy means the performance or the offering
to perform by a person or firm holding out to the public as a licensee, for a client or
potential client, services involving the use of accounting or auditing skills including the
issuance of reports on financial statements, but not including management advisory,
financial advisory, or consulting services, bookkeeping services, or the preparation of
tax returns or the furnishing of advice on tax matters unless provided by a firm of
certified public accountants or licensed public accountants.
9. "Practice privilege" means the privilege for a person to practice public accountancy
described in, and subject to the conditions contained in, subsection 1 of section
43-02.2-04.1.
10. "Practice review" means a study, appraisal, or review of one or more aspects of the
professional work of a firm in the practice of public accountancy, by a person or
persons who hold certificates and are in the practice of public accounting and who are
not affiliated with the person or firm being reviewed.

11. "Principal place of business" means the office location designated by the licensee for
purposes of substantial equivalence and reciprocity.
12. "Professional" means arising out of or related to the specialized knowledge or skills
associated with certified public accountants or licensed public accountants.
13. "Report", when used with reference to financial statements, means an opinion, report,
or other form of language that states or implies assurance as to the reliability of any
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. 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 the
issuer is an accountant, auditor, or is in the business of accounting, or from the
language of the report. "Report" includes any form of language that disclaims an
opinion when the form of language is conventionally understood to imply any positive
assurance as to the reliability of the financial statements referred to or special
competence on the part of the person or firm issuing such language. "Report" includes
any other form of language that is conventionally understood to imply such assurance
or such special knowledge or competence.
14. "Rule" means any rule, regulation, or other written directive of general application duly
adopted by the board.
15. "State" means any state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and the
Commonwealth of the Northern Mariana Islands.
16. "Substantial equivalency", as used in section 43-02.2-04, pertaining to certification by
reciprocity, and in section 43-02.2-04.1, pertaining to the practice privilege, is a
determination by the board or its designee that another jurisdiction's education,
examination, and experience requirements are comparable to or exceed that of the
Uniform Accountancy Act, or that an individual's education, examination, and
experience qualifications are comparable to or exceed that of the Uniform
Accountancy Act. In ascertaining substantial equivalency as used in this chapter, the
board shall take into account the qualifications without regard to the sequence in which
experience, education, or examination requirements were attained.
### § 43-02.2-03. State board of accountancy.

1. The state board of accountancy consists of five members appointed by the governor.
Four members of the board must be residents of this state who hold certified public
accountant certificates issued under the laws of this state and one member of the
board must be a resident of this state who is a licensed public accountant under the
laws of this state. When the number of licensed public accountants in this state drops
below twenty-five, the licensed public accountant member requirement ceases to
apply, except that the licensed public accountant then serving on the board may
complete that term of office and thereafter the board shall consist of five certified public
accountants. The terms of office must be arranged so that only one term expires each
year on June thirtieth. Successor board member appointments are for terms of five
years. Each member of the board shall qualify by taking the oath of office required of
civil officers and shall hold office until a successor is appointed and qualified. A
vacancy on the board must be filled by appointment by the governor from a list of at
least three nominees submitted by the appropriate nominating committee. Any
member of the board whose certificate is revoked or suspended automatically ceases
to be a member of the board. The governor may remove any member of the board for
neglect of duty or other just cause after a hearing. No person who has served two
complete terms is eligible for reappointment, but appointment to fill an unexpired term
may not be considered a complete term for this purpose.
2. At its first meeting after June thirtieth in each year, the board shall organize by electing
one of its members as president, one as secretary, and one as treasurer. The offices of
secretary and treasurer may be held by one person. A majority of the board constitutes
a quorum.

3. A member of the board is entitled to compensation in an amount to be fixed by the
board for each day or portion of a day spent in the discharge of duties, mileage as
provided under section 54-06-09, and reimbursement for actual and necessary
expenses incurred in the discharge of official duties.
4. All expenses incident to examinations under this chapter, expenses of preparing and
issuing certificates and permits, travel expenses and other allowable expenses of the
members of the board, and stationery, printing, clerk hiring, and other office expenses
must be paid by the board from the fees collected by it, and no expense incurred
under this chapter may be a charge against the funds of this state. Funds administered
by the board may not revert to the state general fund.
5. The board has the following powers:
a. To administer oaths to all applicants or persons appearing before it in respect to
investigations, examinations, or the issuance of certified public accountant
certificates.
b. To conduct investigations and examinations and issue certificates to properly
qualified applicants and permits to properly qualified firms.
c. To determine the qualifications of all applicants.
d. To employ and establish the salary of an executive director and such other
personnel as it deems necessary in administration and enforcement of this
chapter. The board may appoint committees or persons, including counsel, to
advise or assist the board.
e. To take all action that is necessary and proper to effectuate the purposes of this
chapter, including the power to sue and be sued in its official name as an agency
of this state, to issue subpoenas to compel the attendance of witnesses and the
production of documents, to administer oaths, to take testimony, to cooperate
with appropriate authorities in other states in investigations and enforcement
concerning violations of this chapter and comparable laws of other states, and to
receive evidence concerning all matters within its jurisdiction. In case of
disobedience of a subpoena, the board may invoke the aid of any court in
requiring the attendance and testimony of witnesses and the production of
documentary evidence. The board, its members, and its agents are immune from
personal liability for actions taken in good faith in the discharge of the board's
responsibilities.
f. The board may adopt rules governing its administration and enforcement of this
chapter and the conduct of licensees, including:
(1) Rules governing the board's meetings and the conduct of its business;
(2) Rules of procedure governing the conduct of investigations and hearings;
(3) Rules specifying the educational and experience qualifications required for
the issuance of certificates under this chapter and the continuing education
required for renewal of certificates and licenses;
(4) Rules of conduct including rules relating to independence, integrity, and
objectivity; competence and technical standards; responsibilities to the
public; and responsibilities to clients;
(5) Rules specifying actions and circumstances that must be deemed to
constitute holding oneself out as a licensee in connection with the practice
of public accountancy;
(6) Rules governing the manner and circumstances of use of the titles "certified
public accountant", "CPA", "licensed public accountant", and "LPA";
(7) Rules concerning substantial equivalency;
(8) Rules regarding practice reviews that may be required to be performed
under this chapter; and
(9) Other rules the board deems necessary or appropriate for implementing this
chapter.

### § 43-02.2-04. Certified public accountants.

1. The board shall grant the certificate of "certified public accountant" to any person who
meets the requirements of this section.
2. The board may not grant a certificate if the applicant has been convicted of a felony, or
of any crime an element of which is dishonesty or fraud, under the laws of the United
States, this state, or any other state if the acts involved would have constituted a crime
under the laws of this state.
3. The board shall grant or renew certificates to persons who make application and
demonstrate that their qualifications are in accordance with the following:
a. The board shall issue a certificate to a holder of a certificate, license, or permit
issued by another state, upon a showing that the applicant is eligible under the
substantial equivalency standard set out in subsection 1 of section 43-02.2-04.1.
An application under this section may be made through the NASBA qualification
appraisal service.
b. With regard to applicants that do not qualify for reciprocity under the substantial
equivalency standard set out in subdivision a, the board shall issue a certificate to
a holder of a certificate, license, or permit issued by another state upon a
showing that:
(1) The applicant passed the uniform CPA examinations;
(2) The applicant had four years of experience of the type described in
subsection 14 or meets comparable requirements prescribed by the board
by rule, after passing the examination upon which the applicant's certificate
was based and within ten years immediately preceding the application; and
(3) If the applicant's certificate, license, or permit was issued more than four
years prior to the application for issuance of an initial certificate under this
section, that the applicant has fulfilled the requirements of continuing
professional education that would have been applicable under
subsection 15.
c. The applicant shall pay the applicable fee.
d. An individual who establishes that individual's principal place of business in this
state must obtain a certificate under this section.
4. The board shall issue a certificate to a holder of a recognized accounting designation
from a jurisdiction or organization outside of the United States, provided such
jurisdiction or organization extends similar reciprocity to the certificate holders of this
state, and upon a showing to the board's satisfaction that the applicant:
a. Meets the substantial equivalent of the education requirements of subsection 5
and the experience requirements of subsection 14 at the time of application, or at
the time of the issuance of the designation by the other jurisdiction or
organization met the education and experience requirements then applicable in
this state;
b. Has completed examinations generally equivalent to those prescribed under
subsection 6;
c. Has satisfactorily completed any additional examinations that the board
prescribes; and
d. Has paid the applicable fees.
5. The education requirement for a certificate is at least one hundred fifty semester hours
of college education including a baccalaureate or higher degree or its equivalent
conferred by a college or university acceptable to the board, the total educational
program to include an accounting concentration or equivalent as determined by board
rule to be appropriate.
6. The examination required to be passed as a condition for the granting of a certificate
must test the applicant's knowledge of the subjects of accounting and auditing. The
time for holding the examination must be fixed by the board and may be changed from
time to time. The board may prescribe by rule the methods of applying for and
conducting the examination, including methods for grading papers and determining a
passing grade required of an applicant for a certificate provided that the board to the

extent possible sees to it that the grading of the examination and the passing grade
requirements are uniform with those applicable in all other states. The board may use
all or any part of the uniform certified public accountant examination and advisory
grading service of the American institute of certified public accountants and may
contract with third parties to perform administrative services with respect to the
examination it deems appropriate to assist it in performing its duties. The board may
permit a candidate to take the examination if the candidate has at least one hundred
twenty semester hours of college education.
7. An applicant must pass the examination provided for in subsection 6, as specified by
rule, in order to qualify for a certificate.
8. An applicant must be given credit for any and all sections of an examination passed in
another state if such credit would have been given under then applicable
requirements, if the applicant had taken the examination in this state.
9. The board may in particular cases waive or defer any of the requirements of
subsections 7 and 8 regarding the circumstances under which the examination must
be passed, upon a showing that, by reason of circumstances beyond the applicant's
control, the applicant was unable to meet the requirement.
10. The board may charge, or provide for a third party administering the examination to
charge, each applicant a fee, in an amount prescribed by the board by rule, for
examination or re-examination.
11. A certificate of certified public accountant must be renewed each year, with renewal
subject to payment of fees and any other requirements prescribed by the board.
12. The board may require examination of other related subjects as specified by rule.
13. Applicants for initial issuance or renewal of certificates under this section shall list in
the applications all states and jurisdictions in which they have applied for or hold
certificates or permits or other recognized accounting designation, and each holder of
or applicant for a certificate under this section shall notify the board in writing, within
thirty days after its occurrence, of any issuance, denial, revocation, or suspension of a
certificate or permit or other recognized accounting designation by another state or
jurisdiction.
14. After December 31, 2000, an applicant for initial issuance of a certificate under this
section shall show that the applicant has had one year of experience. This experience
must include providing any type of service or advice involving the use of accounting,
attest, management advisory, financial advisory, tax, or consulting skills. This
experience must be verified and must meet any other requirements prescribed by the
board by rule. This experience is acceptable if it was gained through employment in
government, industry, academia, or public accounting. This experience requirement
does not apply to those who received a certificate from this state prior to January 1,
2000.
15. The board may require by rule, as a condition for granting and renewal of certificates
under this section, that applicants show completion of continuing education meeting
requirements of board rule. The continuing education rules may include provisions for
exceptions and must include reasonable provision for an applicant who cannot meet
the continuing education requirements due to circumstances beyond the applicant's
reasonable control.
16. The board may by rule create an exception to the continuing education requirements
for certificate holders who do not perform or offer to perform for the public one or more
kinds of services involving the use of accounting or auditing skills, including issuance
of reports on financial statements or of one or more kinds of management advisory,
financial advisory or consulting services, or the preparation of tax returns or the
furnishing of advice on tax matters. Licensees granted such an exception by the board
shall place the word "inactive" adjacent to the licensee's CPA title or LPA title on any
business card, letterhead or any other document or device, with the exception of the
licensee's CPA or LPA certificate, on which the licensee's CPA or LPA title appears. In
addition, inactive CPAs, in lieu of "inactive", may place the word "retired" adjacent to
the individual's CPA title or LPA title on any business card, letterhead or any other

document or device, with the exception of the individual's CPA or LPA certificate, on
which the individual's CPA or LPA title appears. Nothing in this section precludes an
inactive CPA, from providing the following volunteer, uncompensated services: tax
preparation services, participating in a government-sponsored business mentoring
program, serving on the board of directors for a nonprofit or governmental
organization, or serving on a government-appointed advisory body. A licensee only
may convert to inactive status if the licensee holds a license in good standing.
### § 43-02.2-04.1. Substantial equivalency.

1. An individual whose principal place of business is not in this state shall have all the
privileges of certificate holders and licensees of this state without the need to obtain a
certificate or permit under section 43-02.2-04, if the individual holds a valid license as
a CPA from any state that the NASBA national qualification appraisal service has
verified to be in substantial equivalence with the CPA licensure requirements of the
Uniform Accountancy Act, or, if the individual's license is not from any state which the
NASBA national qualification appraisal service has verified to be in substantial
equivalence with the CPA licensure requirements of the Uniform Accountancy Act, that
the individual has obtained from the NASBA national qualification appraisal service
verification that such individual's CPA qualifications are substantially equivalent to the
CPA licensure requirements of the Uniform Accountancy Act. An individual who passed
the uniform CPA examination and holds a valid license issued by any other state prior
to January 1, 2012, may be exempt from the education requirement in the Uniform
Accountancy Act for purposes of this section.
2. Notwithstanding any other provision of law, an individual who offers or renders
professional services, whether in person or by mail, telephone, or electronic means,
under this section shall be granted practice privileges in this state and may use the title
"CPA" or "certified public accountant" and no notice, fee, or other submission shall be
provided by any such individual. Such an individual is subject to the requirements of
subsection 3.
3. Any individual licensee of another state exercising the privilege afforded under this
section and the firm that employs that licensee hereby simultaneously consent, as a
condition of the grant of this privilege:
a. To the personal and subject matter jurisdiction and disciplinary authority of the
board;
b. To comply with this chapter and the board's rules;
c. That in the event the license from the state of the individual's principal place of
business is no longer valid, the individual will cease offering or rendering
professional services in this state individually and on behalf of a firm; and
d. To the appointment of the state board which issued the person's license as the
person's agent upon whom process may be served in any action or proceeding
by this board against the licensee.
4. A licensee of this state offering or rendering services or using the licensee's CPA title
in another state is subject to disciplinary action in this state for an act committed in
another state for which the licensee would be subject to discipline in the other state.
The board shall investigate any complaint made by the board of accountancy of
another state.
### § 43-02.2-05. Permits to practice - Individual.

Repealed by S.L. 1999, ch. 372, § 15.
### § 43-02.2-06. Permits to practice - Firms.

1. The board shall grant or renew permits to practice as a CPA or LPA firm to applicants
that demonstrate their qualifications therefor in accordance with this subsection.
a. The following must hold a permit issued under this subsection:

(1) Any firm with an office in this state practicing public accountancy as defined
in subsection 8 of section 43-02.2-02; or
(2) Any firm with an office in this state that uses the title "CPA", "LPA", "CPA
firm", or "LPA firm", or similar titles.
b. A firm which is not subject to the requirements of subdivision a may perform
professional services within the practice of public accountancy while using the
title "CPA" or "CPA firm" in this state without a permit issued under this subsection
only if:
(1) It performs such services through an individual with practice privileges under
subsection 1 of section 43-02.2-04.1; and
(2) It can lawfully do so in the state where such individuals with practice
privileges have their principal place of business.
2. Permits must be issued and renewed on an annual basis. Applications for permits
must be made in the form the board specifies. The board shall grant or deny any
application no later than ninety days after the application is filed in proper form. If the
applicant seeks the opportunity to show that issuance or renewal of a permit was
mistakenly denied or if the board is not able to determine whether it should be granted
or denied, the board may issue to the applicant a provisional permit, which expires
ninety 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.
3. Except as provided in section 43-02.2-06.1, an applicant for initial issuance or renewal
of a permit to practice under this section must show that a simple majority of the
ownership of the firm, in terms of financial interests and voting rights, belongs to
licensees of a state or other recognized jurisdiction and that all certified public
accountants or licensed public accountants associated with the firm whose principal
place of business is in this state and who perform professional services in this state
hold a valid certificate or license issued by this state. The minority of the ownership of
a firm may belong to an individual or a qualified plan as described and defined in
sections 401(a) and 4975(e)(7) of the Internal Revenue Code [26 U.S.C. 401(a) and
4975(e)(7)], including an employee stock ownership plan. The firm and its owners
must comply with all board rules regarding ownership.
4. An applicant for initial issuance or renewal of a permit to practice under this section is
required to register each office of the firm within this state with the board.
5. The board may charge a fee for each application for initial issuance or renewal of a
permit under this section in an amount prescribed by the board by rule.
6. Applicants for initial issuance or renewal of permits under this section shall in their
applications list all states and jurisdictions in which they have applied for or hold
permits to practice public accountancy or similar authorizations, and each holder of or
applicant for a permit under this section shall notify the board in writing, within thirty
days after its occurrence, of any change in the identities of partners, officers, or
shareholders who work regularly within this state, any change in the number or
location of offices within this state, any change in the identity of the persons in charge
of such offices, and any issuance, denial, revocation, or suspension of a permit by any
other state or jurisdiction.
7. The board may require by rule, on either a uniform or a random basis, as a condition
to renewal of permits under this section, that applicants undergo practice reviews
conducted no more frequently than once every three years in such manner and
producing such satisfactory result as the board specifies; provided that any such
requirement must be adopted reasonably in advance of the time when it is first
required to be met and must include reasonable provision for compliance by an
applicant's showing that it has undergone a satisfactory review performed for other
purposes which was substantially equivalent to practice reviews generally required
under this subsection and completion of such review was within the three years
immediately preceding the renewal period.

### § 43-02.2-06.1. Permit to practice - Firm wholly owned by qualified plan.

1. A firm may be wholly owned by a qualified plan as described and defined in sections
401(a) and 4975(e)(7) of the Internal Revenue Code [26 U.S.C. 401(a) and 4975(e)
(7)], including an employee stock ownership plan, if an applicant for initial issuance or
renewal of a permit to practice shows:
a. Fifty-one percent or more of the beneficial ownership of the plan belongs to
certified public accountants or licensed public accountants of the state or other
recognized jurisdiction;
b. All certified public accountants or licensed public accountants associated with the
firm whose principal place of business is in this state and who perform
professional services in this state hold a valid certificate or license issued by this
state; and
c. A simple majority of the board of directors of the firm are certified public
accountants or licensed public accountants of the state or other recognized
jurisdiction.
### § 43-02.2-07. Licensed public accountants and firms of public accountants.

Persons who on July 1, 1993, hold licensed public accountant licenses issued under prior
law of this state are entitled to have those licenses renewed provided that they fulfill all
requirements for renewal under this section and subsections 13 and 15 of section 43-02.2-04.
Firm licensees that hold valid permits to practice are entitled to engage in the practice of public
accountancy to the same extent and with the same requirements as other holders of such
permits and are entitled to use the designations "licensed public accountant" and "LPA", but no
other designation, in connection with the practice of public accountancy. Licensed public
accountant licenses and firm permits must be renewed annually, with renewal subject to
payment of fees and any other requirements prescribed by the board.
### § 43-02.2-08. Appointment of secretary of state as agent.

Application by a person or a firm not a resident of this state for a certificate under section
secretary of state as the applicant's agent upon whom process may be served in any action or
proceeding against the applicant arising out of any transaction or operation connected with or
incidental to services performed within this state by the applicant.
### § 43-02.2-09. Enforcement against licensees.

1. The board may revoke any certificate, license, practice privilege, or permit issued
under this chapter or corresponding provisions of prior law; suspend any such
certificate, license, practice privilege, or permit or refuse to renew any such certificate,
license, practice privilege, or permit for a period of not more than five years;
reprimand, censure, or limit the scope of practice of any licensee or holder of a
practice privilege; impose an administrative fine not exceeding one thousand dollars;
or place any licensee or holder of a practice privilege on probation, all with or without
terms, conditions, and limitations, for any one or more of the following reasons:
a. Fraud or deceit in obtaining a certificate, license, practice privilege, or permit;
b. Cancellation, revocation, suspension, or refusal to renew a certificate, license,
practice privilege, or permit in any other state or jurisdiction for any cause;
c. Failure, on the part of a holder of a certificate, license, practice privilege, or
permit, to maintain compliance with the requirements for issuance or renewal of
such certificate, license, practice privilege, or permit or to report changes to the
board under section 43-02.2-04, 43-02.2-06, or 43-02.2-07;
d. Revocation or suspension of the right to practice before any state or federal
agency;
e. Dishonesty, fraud, or gross negligence in the performance of services as a
licensee or in the filing or failure to file the licensee's own income tax returns;

f. Violation of any provision of this chapter or rule adopted by the board under this
chapter;
g. Violation of any rule of conduct adopted by the board under section 43-02.2-03;
h. Conviction of a felony, or of any crime an element of which is dishonesty or fraud,
under the laws of the United States, of this state, or of any other state if the acts
involved would have constituted a crime under the laws of this state;
i. Performance of any fraudulent act while holding a certificate, license, practice
privilege, or permit issued under this chapter or prior law;
j. Any conduct reflecting adversely upon the licensee's fitness to perform services
while a licensee; and
k. Making any false or misleading statement or verification, in support of an
application for a certificate, license, or permit filed by another.
2. In lieu of or in addition to any remedy specifically provided in subsection 1, the board
may require of a licensee either or both of the following:
a. A practice review conducted as the board specifies.
b. Satisfactory completion of continuing education programs the board specifies.
3. In any proceeding in which a remedy provided by subsection 1 or 2 is imposed, the
board may require the respondent licensee to pay the costs of the proceeding.
4. A hearing regarding a disciplinary action or denial of a license must be held pursuant
to chapter 28-32.
### § 43-02.2-10. Enforcement procedures - Investigations.

1. If this chapter authorizes the board to revoke, deny, or suspend the certificate, license,
practice privilege, or permit of any licensee or holder of a practice privilege, the
individual or firm has a right to a hearing on such contemplated disciplinary action and
has a right to appeal to the courts from the decision of the board on the hearing. All of
the provisions of chapter 28-32 relating to proceedings before an administrative
agency are applicable to and govern the notice of hearing, the hearing, and the right of
appeal from the board's decision.
2. The board, upon receipt of a complaint or other information suggesting violations of
this chapter or of the rules of the board, may conduct investigations to determine
whether there is reasonable basis to pursue disciplinary action against any individual
or firm for the violation.
3. The board may designate a member or employee to serve as investigating officer to
conduct an investigation. Upon completion of an investigation, the investigating officer
may file a report with the board. The board may find grounds to pursue disciplinary
action under section 43-02.2-09 upon the basis of the report or may return the report
to the investigating officer for further investigation.
4. Until there has been a determination to pursue disciplinary action under section
43-02.2-09, the report of the investigating officer, the complaint, if any, the testimony
and documents submitted in support of the complaint or gathered in the investigation,
and the fact of pendency of the investigation must be treated as confidential
information and may not be disclosed to any person except law enforcement
authorities and, to the extent deemed necessary in order to conduct the investigation,
the subject of the investigation, persons whose complaints are being investigated, and
witnesses questioned in the course of the investigation.
### § 43-02.2-11. Reinstatement.

1. If the board has suspended, refused to renew, or revoked a certificate, license,
practice privilege, or a permit, the board may modify the suspension or reissue the
certificate, license, practice privilege, or permit upon application in writing by the
person or firm affected and for good cause shown and payment of a fee established by
the board.
2. The board shall specify by rule the manner in which applications for reinstatement
must be made, the times within which they must be made, and the circumstances in
which hearings on applications will be held.

3. Before reissuing or terminating the suspension of a certificate, license, practice
privilege, or permit under this section, the board may require the applicant to show
successful completion of specified continuing education and may make the
reinstatement conditional and subject to specified conditions, including satisfactory
completion of a practice review conducted as specified by the board.
### § 43-02.2-12. Unlawful acts.

1. A person or firm that is not a licensee or otherwise authorized to practice in this state
under subsection 1 of section 43-02.2-04.1 or subdivision b of subsection 1 of section
on financial statements of any other person, firm, organization, or governmental unit.
Individual licensees may not practice public accountancy unless they do so within a
firm that holds a permit issued under this chapter or is otherwise exempt from the firm
permit requirement. These prohibitions do not apply to an officer, partner, or employee
of any firm or organization affixing the person's name or signature to any statement or
report in reference to the financial affairs of such firm or organization with any wording
designating the position, title, or office that the signer holds therein, does not prohibit
any act of a public official or employee in the performance of duties as such, and does
not prohibit the performance by any 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
thereon. This prohibition does not apply to transactions between manufacturing and
sales organizations and their customers when accounting services accompany the
sale of products provided that such accounting services are incidental and that any
financial report made is clearly titled "unaudited financial report".
2. A person not holding a valid certificate or practice privilege issued under this chapter
may not use or assume the title or designation "certified public accountant", or the
abbreviation "CPA" or any other title, designation, words, letters, abbreviation, sign,
card, or device tending to indicate that the person is a certified public accountant.
3. A firm may not practice public accountancy or assume or use the title or designation
"certified public accountant", or the abbreviation "CPA", or any other title, designation,
words, letters, abbreviation, sign, card, or device tending to indicate that the firm is a
certified public accountant firm unless the firm holds a valid permit issued under this
chapter or is otherwise exempt from the firm permit requirement.
4. A person may not assume or use the title or designation "licensed public accountant"
or the abbreviation "LPA", or any other title, designation, words, letters, abbreviation,
sign, card, or device tending to indicate that the person is a licensed public accountant
unless the person is registered as provided in section 43-02.2-07.
5. A firm may not practice public accountancy, or assume or use the title or designation
"licensed public accountant", the abbreviation "LPA", or any other title, designation,
words, letters, abbreviation, sign, card, or device tending to indicate that the firm is a
licensed public accountant firm unless the firm holds a valid permit issued under this
chapter or is otherwise exempt from the firm permit requirement.
6. A person or firm not holding a valid certificate, license, practice privilege, or permit
issued under this chapter or otherwise exempt from the firm permit requirement may
not assume or use the title or designation "certified accountant", "chartered
accountant", "enrolled accountant", "licensed accountant", "public accountant",
"registered accountant", "accredited accountant", or any other title or designation likely
to be confused with the titles "certified public accountant" or "licensed public
accountant", or use any of the abbreviations "CA", "LA", "PA", "RA", "AA", or similar
abbreviation likely to be confused with the abbreviations "CPA" or "LPA".
7. A person or firm not holding a valid certificate, license, practice privilege, or permit
issued under this chapter or otherwise exempt from such requirement may not assume
or use any title or designation that includes the words "accountant", "auditor", or
"accounting", or other terms in any manner that implies such person or firm holds such
a certificate, license, or permit or has special competence as an accountant or auditor.

This subsection does not prohibit any officer, partner, or employee of any firm or
organization from affixing the person's name or signature to any reference to the
financial affairs of such firm or organization with any wording designating the position,
title, or office that the person holds and does not prohibit any act of a public official or
employee in the performance of duties.
8. A licensee may not use a professional or firm name or designation that is misleading.
Names of one or more former partners or shareholders may be included in the name
of a firm or its successor.
9. This section does not apply to a person or firm holding a certification, designation,
degree, or license granted in a foreign country entitling the holder to engage in the
practice of public accountancy or its equivalent in that 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 or
firm holds such entitlement. This subsection does not authorize issuing reports with
respect to the financial statements of any other persons, firms, or governmental units
in this state. A person or firm acting under the authority of this subsection may not use
in this state any title or designation other than the one under which the person or firm
practices in such country, followed by a translation of such title or designation into the
English language, if it is in a different language, and by the name of such country.
### § 43-02.2-13. Injunctions against unlawful acts.

If as a result of an investigation, the board believes that any person or firm has engaged, or
is about to engage, in any acts or practices which constitute or will constitute a violation of this
chapter, the board may make application to the appropriate court for an order enjoining such
acts or practices, and upon a showing by the board that such person or firm has engaged, or is
about to engage, in any such acts or practices, an injunction, restraining order, or other
appropriate order must be granted by the court.
### § 43-02.2-14. Criminal penalties.

1. If by reason of an investigation, the board has reason to believe that any person or
firm has knowingly engaged in acts or practices that constitute a violation of this
chapter, the board may bring its information to the attention of a state's attorney or the
attorney general or other appropriate law enforcement officer who may cause
appropriate criminal proceedings to be brought.
2. Any person or firm who knowingly violates any provision of section 43-02.2-12 is guilty
of a class A misdemeanor.
### § 43-02.2-15. Single act evidence of practice.

In any action brought under this chapter, evidence of the commission of a single act
prohibited by this chapter is sufficient to justify a penalty, injunction, restraining order, or
conviction, without evidence of a general course of conduct.
### § 43-02.2-16. Confidential communications.

Except by permission of the client engaging a licensee under this chapter, or the heirs,
successors, or personal representatives of such client, a licensee or any partner, officer,
shareholder, or employee of a licensee may not voluntarily disclose information communicated
to the licensee by the client relating to and in connection with services rendered to the client by
the licensee. Such information is deemed confidential but this section may not be construed as
prohibiting the disclosure of information required to be disclosed by the standards of the
profession in reporting on the examination of financial statements or as prohibiting disclosures
in court proceedings, in investigations or proceedings under section 43-02.2-09 or 43-02.2-10,
in ethical investigations conducted by private professional organizations, or in the course of
practice reviews, or to other persons active in the organization performing services for that client
on a need-to-know basis or to persons in the entity who need this information for the sole
purpose of assuring quality control.

### § 43-02.2-17. Licensees' working papers - Clients' records.

1. All statements, records, schedules, working papers, and memoranda made by a
licensee or a partner, shareholder, officer, director, or employee of a licensee, incident
to, or in the course of, rendering services to a client while a licensee, except the
reports submitted by the licensee to the client and except for records that are part of
the client's records, are the property of the licensee in the absence of an express
agreement between the licensee and the client to the contrary. A statement, record,
schedule, working paper, or memorandum may not be sold, transferred, or
bequeathed, without the consent of the client or the client's personal representative or
assignee, to anyone other than one or more surviving partners or stockholders or new
partners or stockholders of the licensee, or any combined or merged firm or successor
in interest to the licensee. This section may not be construed as prohibiting any
temporary transfer of workpapers or other material necessary in the course of carrying
out practice reviews.
2. A licensee shall furnish to a client or former client, upon request and reasonable
notice:
a. A copy of the licensee's working papers, to the extent that such working papers
include records that would ordinarily constitute part of the client's records and are
not otherwise available to the client; and
b. Any accounting or other records belonging to, or obtained from or on behalf of,
the client that the licensee removed from the client's premises or received for the
client's account. The licensee may make and retain copies of such documents of
the client when they form the basis for work done by the licensee.
3. This section does not require a licensee to keep any workpaper beyond the period
prescribed in any other applicable statute.
### § 43-02.2-18. Uniform statute of limitations.

1. a. This section applies to all causes of action of the type specified in this section
filed on or after August 1, 1993.
b. This section governs any action based on negligence or breach of contract
brought against any accountant, any partnership of accountants, any accounting
corporation, or any other legal entity of accountants registered, licensed, or
practicing in this state by any person or entity claiming to have been injured as a
result of financial statements or other information examined, compiled, reviewed,
certified, audited, or otherwise reported or opined on by the defendant accountant
as a result of an engagement to provide public accounting services.
2. An action covered by this section may not be brought in any court in this state unless
the suit is commenced on or before the earlier of:
a. Two years from the date the alleged act, omission, or neglect is discovered or
should have been discovered by the exercise of reasonable diligence; or
b. Six years after the service for which the suit is brought has been performed or the
date of the initial issuance of the accountant's report on the financial statements
or other information, whichever comes first.
