Section 08.04.421. Out-of-state permits and exemptions.

   (a) A legal entity that does not have an office in this state, that is authorized to practice public accounting in another state, and that performs designated functions for a client whose home office is located in this state may not engage in the practice of public accounting in this state unless the legal entity has an out-of-state permit. To obtain an out-of-state permit, the legal entity shall submit to the board
        (1) a written notice on a form provided by the board;
        (2) the fee required by the board;
        (3) verification of the current authorization of the legal entity to practice public accounting in the other state; and
        (4) verification that the legal entity participates in a quality review program comparable to the program required of entities registered under AS 08.04.426.
   (b) A legal entity that performs designated services but not designated functions for a client whose home office is located in this state may engage in the practice of public accounting in this state under an out-of-state exemption if the legal entity
        (1) does not have an office in this state;
        (2) is authorized to practice public accounting in another state;
        (3) performs the designated services through an individual with a practice privilege; and
        (4) participates in a quality review program comparable to the program required under AS 08.04.426.
   (c) A legal entity that does not have an office in this state, is authorized to practice public accounting in another state, and does not perform designated functions or designated services for a client whose home office is located in this state may engage in the practice of public accounting in this state under an out-of-state exemption if the services that the legal entity performs within the practice of public accounting are performed
        (1) through an individual who has a practice privilege; and
        (2) only to the extent that the legal entity can lawfully perform the services in the state where the individual with a practice privilege has the individual's principal place of business.
   (d) If the board denies an out-of-state permit to a legal entity under (a) of this section, the board shall provide notice of the denial to the legal entity.
   (e) Notwithstanding AS 08.01.100(b), the board shall establish by regulation the period for which an out-of-state permit authorized by (a) of this section is valid. However, the initial term of an out-of-state permit may not exceed three years. The board may renew an out-of-state permit and shall establish by regulation the terms for and length of a renewal, except that the length of a renewal for an out-of-state permit may not exceed four years.
   (f) A legal entity who may engage in the practice of public accounting under an out-of-state exemption is not required to provide a notice to the board, pay a fee to the board, or submit documentation to the board. The person may engage in the practice of public accounting by mail, by telephone, by electronic means, or in person.
   (g) In this section, "designated service" means
        (1) a review of a financial statement, if the performance of the review is established by the Statements on Standards for Accounting and Review Services; or
        (2) a compilation service.

Authorities

8.04.422; 8.04.510; 8.04.680

Notes

Implemented As

12 AAC 04.280

References

12 AAC 04.250
12 AAC 04.280
AS 8.04.422 .422">Sec. 08.04.422. Conditions of practice privileges, out-of-state permits, and out-of-state exemptions.
AS 8.04.510 .510">Sec. 08.04.510. Partnership, limited liability company, corporation, or other legal entity posing as a certified public accountant.
AS 8.04.680 .680">Sec. 08.04.680. Definitions.

History

(Sec. 16 ch 67 SLA 2010)