Bill Text: IA SF237 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to the practice of public accountants. (Formerly SSB 1033.) Effective 7-1-17.
Sponsorship: Committee Bill
Status: (Passed) 2017-04-20 - Signed by Governor. S.J. 1112. [SF237 Detail]
Download: Iowa-2017-SF237-Enrolled.html
Senate File 237 - Enrolled
SENATE FILE
BY COMMITTEE ON STATE
GOVERNMENT
(SUCCESSOR TO SSB
1033)
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A BILL FOR
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Senate File 237
AN ACT
RELATING TO THE PRACTICE OF PUBLIC ACCOUNTANTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 542.3, subsection 27, Code 2017, is
amended to read as follows:
27. "State" means a state of the United States, the District
of Columbia, Puerto Rico, the United States Virgin Islands, the
Commonwealth of the Northern Mariana Islands, or Guam.
Sec. 2. Section 542.6, subsection 1, paragraph b, Code 2017,
is amended to read as follows:
b. The holder of a certificate issued under this section
shall only provide attest services in a certified public
accounting firm that is issued a permit under section 542.7,
or through a certified public accounting firm with a practice
privilege under section 542.20.
Sec. 3. Section 542.7, subsection 1, paragraphs a and c,
Code 2017, are amended to read as follows:
a. A firm must hold a permit issued under this section if
the firm performs attest services in this state or for clients
having a home office in this state or has an office in this
state and uses the title "CPAs", "CPA firm", "certified public
accountants", or "certified public accounting firm".
c. A firm that holds a permit issued under this chapter
shall designate to the board the licensee or person with a
practice privilege under section 542.20 nonlicensee owner who
is responsible for the proper licensure of the firm and the
firm's compliance with all applicable laws and rules of this
state. If such firm has one or more offices in this state, the
firm shall designate to the board one or more persons who are
licensed under this chapter who are responsible for the proper
registration of each Iowa office of the firm and each office's
compliance with all applicable laws and rules of this state.
Sec. 4. Section 542.8, subsection 12, paragraph b,
subparagraph (2), Code 2017, is amended to read as follows:
(2) All nonlicensee owners are of good moral character and
active participants in the firm or an affiliated entity.
Sec. 5. Section 542.8, subsection 12, paragraphs c and d,
Code 2017, are amended to read as follows:
c. An individual licensee or person with a practice
privilege under section 542.20 who is responsible for
compilation services and signs or authorizes someone to sign
the accountant's report on the financial statements on behalf
of the firm shall meet the competency requirements set out in
nationally recognized professional standards for such services.
d. An individual licensee or person with a practice
privilege under section 542.20 who signs or authorizes someone
to sign the accountant's report on the financial statements on
behalf of the firm shall meet the competency requirements set
out in nationally recognized professional standards for such
services.
Sec. 6. Section 542.20, subsection 5, Code 2017, is amended
to read as follows:
5. A certified public accounting firm that is licensed
in the state of its principal place of business and is not
required to hold an Iowa firm license under section 542.7
may practice in this state without a firm license under this
chapter or notice to the board if the firm's practice in this
state is performed by individuals who hold a license under this
chapter or who practice in conformance with subsection 6, under
the following conditions:
a. The firm shall not perform attest services, other than
review services, in Iowa or for a client having a home office
in Iowa.
b. a. The firm shall not have an office in Iowa which uses
the title "CPAs", "CPA firm", "certified public accountants",
or "certified public accounting firm".
c. The firm may perform compilation or review services only
if it complies with the ownership and peer review requirements
of section 542.7.
d. b. The firm shall not make any representation tending to
falsely indicate that the firm is licensed under this chapter.
e. c. The firm, upon a client's or prospective client's
request, shall provide accurate information on the state or
states of licensure, principal place of business, contact
information, and manner in which licensure status can be
verified.
f. d. The firm shall comply with all professional
standards, laws, and rules that apply to licensees performing
the same professional services.
e. The firm shall comply with the ownership and peer review
requirements of section 542.7.
Sec. 7. Section 542.20, subsection 6, paragraph c, Code
2017, is amended to read as follows:
c. An individual who provides attest services, other than
review services, in Iowa or for a client having a home office
in Iowa must practice through a certified public accounting
firm that is licensed under section 542.7, or through a
certified public accounting firm that is validly licensed in
the state of its principal place of business and complies with
the ownership and peer review requirements of section 542.7.
Sec. 8. Section 542.20, subsection 6, paragraph h, Code
2017, is amended by striking the paragraph.
JACK WHITVER
LINDA UPMEYER
W. CHARLES SMITH
TERRY E. BRANSTA
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