Question

The Arizona State Board of Accountancy is the governing entity for CPAs practicing in the state of Arizona. There are a number of rules and requirements for maintaining licensure in the state. In your discussion, refer to the Arizona Revised Statue 32-731. What does this statute require of Arizona CPAs and the business entity they own or operate under? Summarize three or four main points of the statute so that your classmates may add something unique to the discussion.

Answer 1

32-731 deals with registration requirements of CPA firms - also its performance of attest services. According to the statute, the Business organisation qualifies to be a CPA firm if,

• It is within the Arizona state
• Has majority of its partners who are qualified CPA with good standing and
• Provides either attestation and compilation services or uses CPA designation with its name.

Some notable points in the statute are:

1. The application for registration have to be made by the partner/owner of the firm who is a qualified CPA. Also such owner shall comply with the good standing requirements.
2. The registrant cannot use firm name other than the name registered with the board.
3. The services of attestation have to be made in the name of the firm having a good standing and signed by the partner who is CPA having good standing and possess all qualifications u/s 32-725, subsection G.
4. In case of change in ownership/partners that results in reduction in simple majority of the existing interests, an application has to be made to the board intimating the same within 30 days from the date of change in such ownership.