2006 Minnesota Statutes

CHAPTER 326A. ACCOUNTANTS

326A.01 DEFINITIONS.
    Subdivision 1. Scope. When used in this chapter, the terms in this section have the meanings
given.
    Subd. 2. Attest. "Attest" means to provide the following financial statement services:
(1) an audit or other engagement performed in accordance with the Statements on Auditing
Standards (SAS);
(2) a review of a financial statement performed in accordance with the Statements on
Standards for Accounting and Review Services (SSARS); and
(3) an examination of prospective financial information performed in accordance with the
Statements on Standards for Attestation Engagements (SSAE).
    Subd. 3. Board. "Board" means the Minnesota Board of Accountancy established under
section 326A.02 or its predecessor under prior law.
    Subd. 4. Certificate. "Certificate" means a certificate as a certified public accountant issued
under section 326A.04, or corresponding provisions of prior law, or a corresponding certificate as
certified public accountant issued after examination under the law of any other state.
    Subd. 5. Client. "Client" means a person or entity that agrees with a licensee, a person
registered under section 326A.06, paragraph (b), or the person's or licensee's employers to receive
any professional service.
    Subd. 6. Compilation. "Compilation" means the provision of a service performed in
accordance with Statements on Standards for Accounting and Review Services (SSARS) that
presents in the form of financial statements information that is the representation of management
or owners without undertaking to express any assurance on the statements.
    Subd. 7. CPA firm. "CPA firm" means a sole proprietorship, a corporation, a partnership, or
any other form of organization issued a permit under section 326A.05.
    Subd. 8. License. "License" means a certificate issued under section 326A.04, a permit
issued under section 326A.05, or a certificate or permit issued under corresponding provisions of
prior law.
    Subd. 9. Licensee. "Licensee" means the holder of a license.
    Subd. 10. Manager. "Manager" means a manager of a limited liability company.
    Subd. 11. Member. "Member" means a member of a limited liability company.
    Subd. 12. Peer review. "Peer review" means a study, appraisal, or review of one or more
aspects of the professional work of a certificate holder or CPA firm that performs attest or
compilation services, or the professional work of a person registered under section 326A.06,
paragraph (b) , by a person or persons who hold certificates and who are not affiliated with the
certificate holder, CPA firm, or person being reviewed.
    Subd. 13. Permit. "Permit" means a permit to practice as a CPA firm issued under section
326A.05, or corresponding provisions of prior law, or under corresponding provisions of the
laws of other states.
    Subd. 14. Professional. "Professional" means arising out of or related to the specialized
knowledge or skills associated with certified public accountants or persons registered under
section 326A.06, paragraph (b).
    Subd. 15. Report. "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 a statement or implication
that the person or firm issuing it has special knowledge or competence in accounting or auditing.
Such 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 person or firm is an accountant or auditor,
or from the language of the report itself. The term "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 the language. It includes any other form of language that
is conventionally understood to imply such assurance or such special knowledge or competence.
    Subd. 16. State. "State" means any state of the United States, the District of Columbia, Puerto
Rico, the U.S. Virgin Islands, and Guam; except that "this state" means the state of Minnesota.
    Subd. 17. Substantial equivalency. "Substantial equivalency" is a determination under
section 326A.14 by the Board of Accountancy or its designee that the education, examination, and
experience requirements contained in the statutes and administrative rules of another jurisdiction
are comparable to, or exceed the education, examination, and experience requirements contained
in this chapter or that an individual CPA's education, examination, and experience qualifications
are comparable to or exceed the education, examination, and experience requirements contained
in this chapter.
History: 2001 c 109 art 1 s 3

326A.02 STATE BOARD OF ACCOUNTANCY.
    Subdivision 1. Board. A Board of Accountancy is created to carry out the purposes and
enforce the provisions of this chapter. It consists of nine citizens of this state appointed by
the governor. Two must be public members as defined by section 214.02, and seven must be
certified public accountants under the provisions of this chapter. Effective January 1, 2003, no
fewer than five of the certified public accountants must be owners or employees of a CPA firm
that holds a current permit and provides professional services at the time of appointment and
reappointment. At least two of the seven certified public accountants at the time of appointment
and reappointment must be owners or employees of a CPA firm that:
(1) holds a current permit;
(2) provides professional services; and
(3) consists of ten or fewer certified public accountants.
    Subd. 2. Membership conditions. Membership terms, compensation of members, removal
of members, the filling of membership vacancies, and fiscal year and reporting requirements are as
provided in sections 214.07 to 214.09. The provision of staff, administrative services, and office
space; the review and processing of complaints; the setting of board fees; and other provisions
relating to board operations shall be as provided in this chapter and chapter 214.
Any member of the board whose certificate under section 326A.04 is revoked or suspended
automatically ceases to be a member of the board.
    Subd. 3. Officers; proceedings. The board shall elect one of its number as chair, another as
vice-chair, and another as secretary and treasurer. The officers shall hold their respective offices
for a term of one year and until their successors are elected. The affirmative vote of a majority of
the qualified members of the board is considered the action of the board. The board shall meet at
such times and places as may be fixed by the board. Meetings of the board are subject to chapter
13D. A majority of the board members then in office constitutes a quorum at any meeting duly
called. The board shall have a seal, which must be judicially noticed. The board shall retain or
arrange for the retention of all applications and all documents under oath that are filed with
the board and also records of its proceedings, and it shall maintain a registry of the names and
addresses of all licensees and registrants under this chapter. In any proceeding in court, civil or
criminal, arising out of or founded upon any provision of this chapter, copies of records of the
proceeding certified as true copies under the seal of the boards shall be admissible in evidence as
tending to prove the contents of the records.
    Subd. 4. Powers. The board may issue subpoenas to compel the attendance of witnesses
and the production of documents, to administer oaths, to take testimony, to cooperate with the
appropriate authorities in other states in investigation and enforcement concerning violations of
this chapter and comparable acts of other states, and to receive evidence concerning all matters
within the scope of this chapter. 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, and the
state shall hold the board, its members, and its agents harmless from all costs, damages, and
attorneys fees arising from claims and suits against them with respect to matters to which such
immunity applies. The board shall enforce the standard of general education, the standard of
special education in the science and art of accounting, and the standard of good character and
general experience, as prescribed in this chapter.
    Subd. 5. Rules. The board may adopt rules governing its administration and enforcement of
this chapter and the conduct of licensees and persons registered under section 326A.06, paragraph
(b) , 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 and discipline by
the board;
(3) rules specifying the educational and experience qualifications required for the issuance of
certificates and the continuing professional education required for renewal of certificates;
(4) rules of professional conduct directed to controlling the quality and probity of services
by licensees, and dealing among other things with independence, integrity, and objectivity;
competence and technical standards; and responsibilities to the public and to clients;
(5) rules governing the professional standards applicable to licensees including adoption of
the statements on standards specified in section 326A.01, subdivision 2, and as developed for
general application by recognized national accountancy organizations such as the American
Institute of Certified Public Accountants;
(6) rules governing the manner and circumstances of use of the titles "certified public
accountant," "CPA," "registered accounting practitioner," and "RAP";
(7) rules regarding peer review that may be required to be performed under provisions
of this chapter;
(8) rules on substantial equivalence to implement section 326A.14;
(9) rules regarding the conduct of the certified public accountant examination;
(10) rules regarding the issuance and renewals of certificates, permits, and registrations;
(11) rules regarding transition provisions to implement this chapter;
(12) rules specifying the educational and experience qualifications for registration, rules
of professional conduct, rules regarding peer review, rules governing standards for providing
services, and rules regarding the conduct and content of examination for those persons registered
under section 326A.06, paragraph (b); and
(13) rules regarding fees for examinations, certificate issuance and renewal, firm permits,
registrations under section 326A.06, paragraph (b), notifications made under section 326A.14,
and late processing fees.
    Subd. 6. Complaint committee. The board shall establish a complaint committee to
investigate, mediate, or initiate administrative or legal proceedings on behalf of the board with
respect to complaints filed with or information received by the board alleging or indicating
violations of this chapter. The complaint committee shall consist of three members of the board.
    Subd. 7. Expenses of administration. The expenses of administering this chapter must be
paid from appropriations made to the board.
History: 2001 c 109 art 1 s 4

326A.03 CERTIFIED PUBLIC ACCOUNTANT QUALIFICATIONS.
    Subdivision 1. Qualifications. The certificate of certified public accountant shall be granted
to persons of good moral character who meet the education, experience, and examination
requirements of this section and rules adopted under it and who apply under section 326A.04.
Good moral character for purposes of this section means lack of a history of dishonest or
felonious acts. The board may refuse to grant a certificate on the ground of failure to satisfy this
requirement only if there is a substantial connection between the lack of good moral character of
the applicant and the professional responsibilities of a licensee and if the finding by the board of
lack of good moral character is supported by clear and convincing evidence. When an applicant is
found to be unqualified for a certificate because of a lack of good moral character, the board shall
furnish the applicant a statement containing the findings of the board, a complete record of the
evidence upon which the determination was based, and a notice of the applicant's right of appeal.
    Subd. 2. Examination before July 1, 2006; education and experience. Until July 1, 2006,
the examination must be administered by the board only to a candidate who:
(1) holds a master's degree with a major in accounting from a college or university that is
fully accredited by a recognized accrediting agency listed with the United States Department of
Education;
(2) holds a baccalaureate degree, with a major in accounting, from a college or university that
is fully accredited by a recognized accrediting agency listed with the United States Department of
Education or who has in the opinion of the board at least an equivalent education;
(3) holds a baccalaureate degree from a college or university that is fully accredited by a
recognized accrediting agency listed with the United States Department of Education, or who
has in the opinion of the board at least an equivalent education, provided that at least one year of
experience of the type specified in subdivision 8 has been completed;
(4) provides evidence of having completed two or more years of study with a passing
grade average or above from a college, university, technical college, or a Minnesota licensed
private school that is fully accredited by a recognized accrediting agency listed with the United
States Department of Education, or who has in the opinion of the board at least an equivalent
education, provided that at least three years experience of the type specified in subdivision 8 has
been completed; or
(5) holds a diploma as a graduate of an accredited high school, or who has in the opinion of
the board at least an equivalent education, provided that at least five years experience of the type
specified in subdivision 8 has been completed.
    Subd. 3. Examination after July 1, 2006; education. On or after July 1, 2006, the
examination must be administered by the board only to a candidate who has a baccalaureate or
higher degree, with a major in accounting or a major in business with accounting emphasis, or
an equivalent education, from a college or university that is fully accredited by a recognized
accrediting agency listed with the United States Department of Education or an equivalent
accrediting association.
    Subd. 4. Examination requirements. (a) The examination required to be passed as a
condition for the granting of a certificate must be held as often as convenient, in the opinion of the
board, and must test the applicant's knowledge of the subjects of accounting and auditing, and
other related subjects that the board may specify by rule, including but not limited to business
law and taxation. The time for holding the examination must be determined by the board and
may be changed from time to time. The board shall prescribe by rule the methods of applying
for and conducting the examination, including methods for grading and determining a passing
grade required of an applicant for a certificate. However, the board shall to the extent possible
ensure that the examination itself, grading of the examination, and the passing grades, are uniform
with those applicable in all other states. The board may make such use of 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 that it considers appropriate to assist it in
performing its duties under this paragraph.
(b) The board may charge, or provide for a third party administering the examination to
charge, each applicant a fee.
    Subd. 5. Certificate before July 1, 2006; experience. Until July 1, 2006, those persons who
have passed the examination required by this section and who meet all other requirements for a
certificate, including payment of required fees, must be granted certificates as certified public
accountants, providing that they have completed the following experience requirements of the
type specified in subdivision 8 in addition to any experience already required in subdivision 2:
(1) for those whose educational qualifications meet the requirements of subdivision 2, clause
(1), the experience requirement is one year;
(2) for those whose educational qualifications meet the requirements of subdivision 2, clause
(2), the experience requirement is two years;
(3) for those whose educational and experience qualifications meet the requirements of
subdivision 2, clause (3), the additional required experience is two years;
(4) for those whose educational and experience qualifications meet the requirements of
subdivision 2, clause (4), the additional required experience is two years; and
(5) for those whose educational and experience qualifications meet the requirements of
subdivision 2, clause (5), the additional required experience is one year.
    Subd. 6. Certificate after July 1, 2006; education and experience. (a) On or after July
1, 2006, those persons who have passed the examination required in this section must be
granted certificates as certified public accountants provided they certify to the board that they
have completed at least 150 semester or 225 quarter hours at a college or university that is fully
accredited by a recognized accrediting agency listed with the United States Department of
Education, or an equivalent accrediting association, and have completed at least one year of
experience of the type specified in paragraph (b).
(b) An applicant for initial issuance of a certificate under this subdivision shall show that the
applicant has had one year of experience. Acceptable experience includes providing any type
of service or advice involving the use of accounting, attest, compilation, management advisory,
financial advisory, tax, or consulting skills, as verified by a licensee and meeting requirements
prescribed by the board by rule. Acceptable experience may be gained through employment in
government, industry, academia, or public practice. Experience as an auditor in the Office of the
Legislative Auditor or State Auditor, as verified by a licensee, shall be acceptable experience.
    Subd. 7. Equivalent education criteria. The board, in consultation with the University of
Minnesota, the Minnesota State Colleges and Universities, private colleges, and private career
schools regulated under chapter 141, shall establish criteria to assess equivalent education for
purposes of subdivision 3.
    Subd. 8. Qualifying experience until July 1, 2006. Until July 1, 2006, qualifying experience
includes public accounting experience:
(1) as a staff employee of a certified public accountant, or a firm;
(2) as an auditor in the Office of the Legislative Auditor or State Auditor, or as an auditor or
examiner with any other agency of government, if the experience, in the opinion of the board, is
equally comprehensive and diversified;
(3) as a self-employed public accountant or as a partner in a firm; or
(4) in any combination of the foregoing capacities.
History: 2001 c 109 art 1 s 5

326A.04 CERTIFICATE ISSUED OR RENEWED; COMPETENCY STANDARD.
    Subdivision 1. Eligibility. The board shall grant or renew certificates to persons who make
application and demonstrate:
(1) that their qualifications, including where applicable the qualifications prescribed by
section 326A.03, are in accordance with this section; or
(2) that they are eligible under the substantial equivalency standard in section 326A.14,
subdivision 1 , paragraph (b), which requires licensure for those certified public accountants who
establish their principal places of business in another state. The holder of a certificate issued
under this section may only provide attest services in a CPA firm that holds a permit issued
under section 326A.05.
    Subd. 2. Timing. (a) Certificates must be initially issued and renewed for periods of not
more than one year but in any event must expire on the December 31 following issuance or
renewal. Applications for certificates must be made in the form, and in the case of applications
for renewal between the dates, specified by the board in rule. The board shall grant or deny an
application no later than 90 days after the application is filed in proper form. If the applicant
seeks the opportunity to show that issuance or renewal of a certificate was mistakenly denied,
or if the board is unable to determine whether it should be granted or denied, the board may
issue to the applicant a provisional certificate that expires 90 days after its issuance, or when the
board determines whether or not to issue or renew the certificate for which application was
made, whichever occurs first.
(b) Certificate holders who do not provide professional services and do not use the certified
public accountant designation in any manner are not required to renew their certificates provided
they have notified the board as provided in board rule and comply with the requirements for
nonrenewal as specified in board rule.
    Subd. 3. Residents of other states. (a) With regard to applicants who do not qualify for
reciprocity under the substantial equivalency standard in section 326A.14, subdivision 1,
paragraph (b), 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 examination required for issuance of the applicant's certificate
with grades that would have been passing grades at the time in this state;
(2) the applicant had four years of experience outside of this state of the type described in
section 326A.03, subdivision 6, paragraph (b), if application is made on or after July 1, 2006,
or section 326A.03, subdivision 8, if application is made before July 1, 2006; or the applicant
meets equivalent requirements prescribed by the board by rule, after passing the examination
upon which the applicant's certificate was based and within the 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 subdivision, that the applicant has
fulfilled the requirements of continuing professional education that would have been applicable
under subdivision 4.
(b) As an alternative to the requirements of paragraph (a), a certificate holder licensed
by another state who establishes a principal place of business in this state shall request the
issuance of a certificate from the board prior to establishing the principal place of business. The
board shall issue a certificate to the person if the person's individual certified public accountant
qualifications, upon verification, are substantially equivalent to the certified public accountant
licensure requirements of this chapter.
    Subd. 4. Program of learning. For renewal of a certificate under this section, each licensee
shall participate in a program of learning designed to maintain professional competency. The
program of learning must comply with rules adopted by the board. The board may by rule create
an exception to this requirement for licensees 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. A licensee granted such an exception by the board must place the word
"inactive" adjacent to the CPA title on any business card, letterhead, or any other document or
device, with the exception of the licensee's certificate on which the CPA title appears.
    Subd. 5. Fee. The board shall charge a fee for each application for initial issuance or renewal
of a certificate under this section.
    Subd. 6. Other state licenses. Applicants for initial issuance or renewal of certificates
under this section shall in their applications list all states in which they have applied for or hold
certificates, licenses, or permits and list any past denial, revocation, or suspension of a certificate,
license, or permit. Each holder of or applicant for a certificate under this section shall notify the
board in writing, within 30 days after its occurrence, of any issuance, denial, revocation, or
suspension of a certificate, license, or permit by another state.
    Subd. 7. Certificates issued by foreign countries. The board shall issue a certificate to a
holder of a substantially equivalent foreign country designation, provided that:
(1) the foreign authority that granted the designation makes similar provision to allow
a person who holds a valid certificate issued by this state to obtain the foreign authority's
comparable designation;
(2) the foreign designation:
(i) was duly issued by a foreign authority that regulates the practice of public accountancy
and the foreign designation has not expired or been revoked or suspended;
(ii) entitles the holder to issue reports upon financial statements; and
(iii) was issued upon the basis of educational, examination, and experience requirements
established by the foreign authority or by law; and
(3) the applicant:
(i) received the designation, based on educational and examination standards substantially
equivalent to those in effect in this state, at the time the foreign designation was granted;
(ii) has, within the ten years immediately preceding the application, completed an experience
requirement that is substantially equivalent to the requirement in section 326A.03, subdivision 6,
paragraph (b), if application is made on or after July 1, 2006, or section 326A.03, subdivision 8, if
application is made before July 1, 2006, in the jurisdiction that granted the foreign designation;
completed four years of professional experience in this state; or met equivalent requirements
prescribed by the board by rule; and
(iii) passed a uniform qualifying examination in national standards and an examination on
the laws, regulations, and code of ethical conduct in effect in this state acceptable to the board.
    Subd. 8. Other jurisdictions in which foreign applicant is licensed. An applicant under
subdivision 7 shall in the application list all jurisdictions, foreign and domestic, in which the
applicant has applied for or holds a designation to practice public accountancy. Each holder of a
certificate issued under subdivision 7 shall notify the board in writing, within 30 days after its
occurrence, of any issuance, denial, revocation, or suspension of a designation or commencement
of a disciplinary or enforcement action by any jurisdiction.
    Subd. 9. Application by foreign certificate holder. The board has the sole authority to
interpret the application of the provisions of subdivisions 7 and 8.
    Subd. 10. Peer review. The board shall by rule require as a condition for renewal of a
certificate under this section by any certificate holder who performs compilation services for the
public other than through a CPA firm, that the individual undergo, no more frequently than once
every three years, a peer review conducted in a manner specified by the board in rule. The review
shall include verification that the individual has met the competency requirements set out in
professional standards for the services described in this subdivision as set forth by rule.
    Subd. 11. Automatic revocation. The certificates of persons who fail to renew their
certificates for more than two years after expiration shall be automatically revoked by order of
the board. The orders may be issued by the board without following the procedures of chapter
14, provided the board notifies each such person by mail at the person's last known address
on file with the board at least three days prior to the issuance of any such order. No notice is
required if the last communication sent by the board to a licensee was returned to the board by
the United States Postal Service as undeliverable and with no forwarding address. Certificates so
revoked by the board may be reinstated, if at all, under section 326A.09. This subdivision does
not apply to certified public accountants who have notified the board that they will not use the
CPA designation in any manner and will not provide professional services.
History: 2001 c 109 art 1 s 6

326A.05 PERMIT TO PRACTICE AS A CPA FIRM.
    Subdivision 1. General. The board shall grant or renew permits to practice as a CPA firm
to entities that make application and demonstrate their qualifications in accordance with this
section. A firm must hold a permit issued under this section in order to provide attest services or
to use the title "CPAs" or "CPA firm."
    Subd. 2. Timing. Permits must be initially issued and renewed for periods of not more
than one year but in any event must expire on December 31 following issuance or renewal.
Applications for permits shall be made in the form, and in the case of applications for renewal
between the dates, as the board specifies in rule. The board shall grant or deny an application
no later than 90 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 90 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.
    Subd. 3. Qualifications. (a) An applicant for initial issuance or renewal of a permit to
practice under this section shall comply with the requirements in this subdivision.
(b) Notwithstanding chapter 319B or any other provision of law, a simple majority of the
ownership of the firm, in terms of financial interests and voting rights of all partners, officers,
shareholders, members, or managers, must belong to holders of certificates who are licensed in
some state, and the partners, officers, shareholders, members, or managers, whose principal place
of business is in this state, and who perform professional services in this state, must hold valid
certificates issued under section 326A.04 or the corresponding provision of prior law. Although
firms may include nonlicensee owners, the firm and its ownership must comply with rules adopted
by the board. The firm shall register all nonlicensee owners with the state board as set forth by rule.
(c) A CPA firm may include nonlicensee owners provided that:
(1) the firm designates a licensee of this state, who is responsible for the proper registration
of the firm and identifies that individual to the board;
(2) all nonlicensee owners are active individual participants in the CPA firm or affiliated
entities; and
(3) the firm complies with other requirements imposed by the board in rule.
(d) An individual licensee who is responsible for supervising attest or 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 the professional standards
for such services.
(e) An individual licensee who signs or authorizes someone to sign the accountants' report
on the financial statements on behalf of the firm shall meet the competency requirement of
paragraph (d).
    Subd. 4. Initial issuance or renewal. An applicant for initial issuance or renewal of a permit
to practice under this section shall register each office of the firm within this state with the board
and to show that all attest and compilation services rendered in this state are under the charge of a
person holding a valid certificate, or the corresponding provision of prior law.
    Subd. 5. Fees. The board shall charge a fee for each application for initial issuance or
renewal of a permit under this section.
    Subd. 6. Other jurisdictions in which applicant holds a permit. An applicant for initial
issuance or renewal of permits under this section shall in the applicant's application list all states
in which the applicant has applied for or holds permits as a CPA firm and list any past denial,
revocation, or suspension of a permit by any other state. Each holder of or applicant for a permit
under this section shall notify the board in writing, within 30 days after its occurrence, of any
change in the identities of partners, officers, shareholders, members, or managers whose principal
place of business is in 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.
    Subd. 7. Corrective actions, revocation. Firms that fall out of compliance with the
provisions of this section due to changes in firm ownership or personnel, after receiving or
renewing a permit, shall take corrective action to bring the firm back into compliance as quickly
as possible. Failure to bring the firm back into compliance within a reasonable period as defined
by the board rule shall result in the suspension or revocation of the firm permit.
    Subd. 8. Peer review; rules. (a) The board shall by rule require as a condition to renewal of
permits under this section, that applicants undergo, no more frequently than once every three years,
peer reviews conducted in a manner specified by the board. The review must include a verification
that individuals in the firm who are responsible for supervising attest and compilation services
and who sign or authorize someone to sign the accountant's report on the financial statements on
behalf of the firm meet the competency requirements set out in the professional standards for such
services. In addition, the rules must meet the requirements in paragraphs (b) to (d).
(b) The rules must be adopted reasonably in advance of the time when they first become
effective.
(c) The rules must include reasonable provision for compliance by an applicant showing that
it has, within the preceding three years, undergone a peer review that is a satisfactory equivalent
to peer review generally required pursuant to this subdivision.
(d) The rules must require, with respect to peer reviews contemplated by paragraph (c), that
they be subject to oversight by an oversight body established or sanctioned by board rule. This
body shall periodically report to the board on the effectiveness of the review program under its
charge, and provide to the board a listing of firms that have participated in a peer review program
that is satisfactory to the board.
(e) The rules must require, with respect to peer reviews contemplated by paragraph (c),
that the peer review processes be operated and documents maintained in a manner designed to
preserve confidentiality, and that neither the board nor any third party, other than the oversight
body, has access to documents furnished or generated in the course of the review. The applicant
shall submit to the board reports and letters received at the conclusion of the peer review process
as provided for in board rule.
    Subd. 9. Cooperative auditing organization. Any cooperative auditing organization
organized under chapter 308A is qualified for a cooperative auditing service license and may style
itself as a licensed cooperative auditing service if:
(1) for a minimum of one year prior to July 1, 1979, it rendered auditing or accounting of
business analysis services to its members only; and
(2) its managers in charge of offices maintained in this state are certified public accountants
of this state.
Cooperative auditing services shall comply with all requirements imposed on CPA firms and
the board's rules governing firms.
History: 2001 c 109 art 1 s 7

326A.06 ACCOUNTING PRACTITIONER; REGISTRATION; CERTIFICATE.
(a) All licensed public accountants (LPAs) who are actively licensed by the state board on
December 31, 2002, shall be issued a certified public accountant certificate. LPAs are those
accountants who were eligible for licensure on July 1, 1979, under the law in effect on that date
and who were issued a license as a licensed public accountant by the board at that time.
(b) By July 1, 2004, the board shall implement a voluntary registration of accounting
practitioners. The board shall prescribe by rule the limitations of practice, educational preparation,
examination, registration, fees, peer review, and continuing education requirements for the
registration. The board shall consult with the University of Minnesota, the Minnesota State
Colleges and Universities, the Minnesota Association of Private Postsecondary Schools,
the Private College Council, the Minnesota Association of Public Accountants, and other
organizations as appropriate in the implementation of this section.
History: 2001 c 109 art 1 s 8

326A.07 APPOINTMENT OF SECRETARY OF STATE AS AGENT.
Application by a person or a firm not a resident of this state for a certificate or a permit shall
constitute appointment of the 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 by the applicant while a licensee
within this state.
History: 2001 c 109 art 1 s 9

326A.08 ENFORCEMENT.
    Subdivision 1. Basis for conducting investigations. If the board, or the complaint
committee if authorized by the board, has a reasonable basis to believe that a person or firm has
engaged in or is about to engage in a violation of a statute, rule, or order that the board has
issued or is empowered to enforce, the board, or the complaint committee if authorized by the
board, may proceed as described in this section. The board may, upon receipt of a complaint or
other information suggesting violations of this chapter or of the rules of the board, conduct
investigations to determine whether there is reasonable basis to institute proceedings under this
section against any person or firm for such violations. The investigation is not a prerequisite to
such proceedings in the event that a determination can be made without investigation.
    Subd. 2. Hearings conducted under chapter 14. Except as otherwise described in this
section, all hearings shall be conducted in accordance with chapter 14.
    Subd. 3. Legal action. (a) When necessary to prevent an imminent violation of a statute,
rule, or order that the board has issued or is empowered to enforce, the board, or the complaint
committee if authorized by the board, may bring an action in the name of the state in the district
court in Ramsey county, when necessary to prevent imminent harm to the public, or in any county
in which jurisdiction is proper to enjoin the act or practice and to enforce compliance with the
statute, rule, or order. Upon a showing that a person or firm has engaged in or is about to engage
in an act or practice constituting a violation of a statute, rule, or order that the board has issued
or is empowered to enforce, a permanent or temporary injunction, restraining order, or other
appropriate relief shall be granted.
(b) For purposes of injunctive relief under this subdivision, irreparable harm exists when
the board shows that a person or firm has engaged in or is about to engage in an act or practice
constituting a violation of a statute, rule, or order that the board has issued or is empowered
to enforce.
(c) Injunctive relief granted under paragraph (a) does not relieve an enjoined person or firm
from criminal prosecution from a competent authority or from action by the board pursuant to
subdivisions 4 to 7 with respect to the person's or firm's certificate, permit, registration, or practice
privileges granted under section 326A.14 or application for examination, certificate, registration,
permit, or renewal or notification for practice privileges granted under section 326A.14.
    Subd. 4. Cease and desist orders. (a) The board, or the complaint committee if authorized
by the board, may issue and have served upon a certificate holder, a permit holder, a registration
holder, a person with practice privileges granted under section 326A.14 who has previously been
subject to a disciplinary order by the board, or an unlicensed firm or person an order requiring the
person or firm to cease and desist from the act or practice constituting a violation of the statute,
rule, or order. The order must be calculated to give reasonable notice of the rights of the person or
firm to request a hearing and must state the reasons for the entry of the order. No order may be
issued until an investigation of the facts has been conducted pursuant to section 214.10.
(b) Service of the order is effective when the order is served on the person, firm, or counsel
of record personally, or by certified mail to the most recent address provided to the board for the
person, firm, or counsel of record.
(c) Unless otherwise agreed by the board, or the complaint committee if authorized by the
board, and the person or firm requesting the hearing, the hearing must be held no later than 30
days after the request for the hearing is received by the board.
(d) The administrative law judge shall issue a report within 30 days of the close of the
contested case hearing record, notwithstanding Minnesota Rules, part 1400.8100, subpart 3.
Within 30 days after receiving the report and any exceptions to it, the board shall issue a further
order vacating, modifying, or making permanent the cease and desist orders as the facts require.
(e) If no hearing is requested within 30 days of service of the order, the order becomes final
and remains in effect until it is modified or vacated by the board.
(f) If the person or firm to whom a cease and desist order is issued fails to appear at the
hearing after being duly notified, the person or firm is in default and the proceeding may be
determined against that person or firm upon consideration of the cease and desist order, the
allegations of which may be considered to be true.
(g) In lieu of or in addition to the order provided in paragraph (a), the board may require the
person or firm to provide to the board a true and complete list of the person's or firm's clientele so
that they can, if deemed necessary, be notified of the board's action. Failure to do so, or to provide
an incomplete or inaccurate list, is an act discreditable.
    Subd. 5. Actions against persons or firms. (a) The board may, by order, deny, refuse to
renew, suspend, temporarily suspend, or revoke the application, or practice privileges, registration
or certificate of a person or firm; censure or reprimand the person or firm; prohibit the person or
firm from preparing tax returns or reporting on financial statements; refuse to permit a person to
sit for examination; or refuse to release the person's examination grades if the board finds that the
order is in the public interest and that, based on a preponderance of the evidence presented, the
person or firm:
(1) has violated a statute, rule, or order that the board has issued or is empowered to enforce;
(2) has engaged in conduct or acts that are fraudulent, deceptive, or dishonest whether or not
the conduct or acts relate to performing or offering to perform professional services, providing
that the fraudulent, deceptive, or dishonest conduct or acts reflect adversely on the person's or
firm's ability or fitness to provide professional services;
(3) has engaged in conduct or acts that are negligent or otherwise in violation of the standards
established by board rule, where the conduct or acts relate to providing professional services;
(4) has been convicted of, has pled guilty or nolo contendere to, or has been sentenced as a
result of the commission of a felony or crime, an element of which is dishonesty or fraud; has been
shown to have or admitted to having engaged in acts or practices tending to show that the person
or firm is incompetent; or has engaged in conduct reflecting adversely on the person's or firm's
ability or fitness to provide professional services, whether or not a plea was entered or withheld;
(5) employed fraud or deception in obtaining a certificate, permit, registration, practice
privileges, renewal, or reinstatement or in passing all or a portion of the examination;
(6) has had the person's or firm's permit, registration, practice privileges, certificate, right
to examine, or other similar authority revoked, suspended, canceled, limited, or not renewed
for cause, or has committed unprofessional acts for which the person or firm was otherwise
disciplined or sanctioned, including, but not limited to, being ordered to or agreeing to cease and
desist from prescribed conduct, in any state or any foreign country;
(7) has had the person's or firm's right to practice before any federal, state, or other
government agency revoked, suspended, canceled, limited, or not renewed for cause, or has
committed unprofessional acts for which the person or firm was otherwise disciplined or
sanctioned, including, but not limited to, being ordered to or agreeing to cease and desist from
prescribed conduct;
(8) failed to meet any requirement for the issuance or renewal of the person's or firm's
certificate, registration or permit, or for practice privileges;
(9) with respect to temporary suspension orders, has committed an act, engaged in conduct,
or committed practices that may result or may have resulted, in the opinion of the board or the
complaint committee if authorized by the board, in an immediate threat to the public; or
(10) has engaged in any conduct reflecting adversely upon the person's or firm's fitness to
perform services while a licensee, individual granted privileges under section 326A.14, or a
person registered under section 326A.06, paragraph (b).
(b) In lieu of or in addition to any remedy provided in paragraph (a), the board may require,
as a condition of continued possession of a certificate, a registration, or practice privileges,
termination of suspension, reinstatement of permit, registration of a person or firm or of practice
privileges under section 326A.14, a certificate, an examination, or release of examination grades,
that the person or firm:
(1) submit to a peer review of the person's or firm's ability, skills, or quality of work,
conducted in a fashion and by persons, entity, or entities as required by the board; and
(2) complete to the satisfaction of the board continuing professional education courses
specified by the board.
(c) Service of the order is effective if the order is served on the person, firm, or counsel of
record personally or by certified mail to the most recent address provided to the board for the
person, firm, or counsel of record. The order shall state the reasons for the entry of the order.
(d) All hearings required by this subdivision must be conducted in accordance with chapter
14 except with respect to temporary suspension orders as provided for in subdivision 6.
(e) In addition to the remedies authorized by this subdivision, the board may enter into an
agreement with the person or firm for corrective action and may unilaterally issue a warning
to a person or firm.
(f) The board shall not use agreements for corrective action or warnings in any situation
where the person or firm has been convicted of or pled guilty or nolo contendere to a felony or
crime and the felony or crime is the basis of the board's action against the person or firm, where
the conduct of the person or firm indicates a pattern of related violations of paragraph (a) or the
rules of the board, or where the board concludes that the conduct of the person or firm will not be
deterred other than by disciplinary action under this subdivision or subdivision 4 or 6.
(g) Agreements for corrective action may be used by the board, or the complaint committee
if authorized by the board, where the violation committed by the person or firm does not warrant
disciplinary action pursuant to this subdivision or subdivision 4 or 6, but where the board, or the
complaint committee if authorized by the board, determines that corrective action is required to
prevent further such violations and to otherwise protect the public. Warnings may be used by the
board, or the complaint committee if authorized by the board, where the violation of the person or
firm is de minimus, does not warrant disciplinary action under this subdivision or subdivision 4 or
6, and does not require corrective action to protect the public.
(h) Agreements for corrective action must not be considered disciplinary action against the
person's or firm's application, permit, registration or certificate, or practice privileges under
section 326A.14. However, agreements for corrective action are public data. Warnings must not
be considered disciplinary action against the person's or firm's application, permit, registration, or
certificate or person's practice privileges and are private data.
    Subd. 6. Temporary suspension order. (a) When the board, or the complaint committee if
authorized by the board, issues a temporary suspension order, the suspension is in effect upon
service of a written order on the person, firm, or counsel of record, specifying the statute, rule, or
order violated. The order remains in effect until the board issues a final order in the matter after a
hearing or upon agreement between the board and the person or firm.
(b) The order may prohibit the person or firm from providing professional services in whole
or in part, as the facts may require, and may condition the end of such suspension on compliance
with a statute, rule, or order that the board has issued or is empowered to enforce.
(c) The order must set forth the rights to hearing contained in this section and must state
the reasons for the entry of order.
(d) Within ten days after service of the order, the person or firm may request a hearing in
writing. The board shall hold a hearing before its own members within five working days of a
receipt of a request for hearing or within five working days of receipt of a request for hearing on
the sole issue of whether there is a reasonable basis to continue, modify, or lift the temporary
suspension. This hearing is not subject to chapter 14. Evidence presented by the board or the
person or firm shall be in affidavit form only. The person, firm, or counsel of record may appear
for oral argument.
(e) Within five working days after the hearing, the board shall issue its order and, if the
suspension is continued, schedule a contested case hearing within 30 days after issuance of
the order. The administrative law judge shall issue a report within 30 days after closing of
the contested case hearing record, notwithstanding the provisions of Minnesota Rules, part
1400.8100, subpart 3. The board shall issue a final order within 30 days after receipt of that report.
    Subd. 7. Violation; penalties; costs of proceeding. (a) The board may impose a civil
penalty not to exceed $2,000 per violation upon a person or firm that violates an order, statute,
or rule that the board has issued or is empowered to enforce.
(b) The board may, in addition, impose a fee to reimburse the board for all or part of the cost
of the proceedings, including reasonable investigative costs, resulting in disciplinary or corrective
action authorized by this section, the imposition of civil penalties, or the issuance of a cease and
desist order. The fee may be imposed when the board shows that the position of the person or
firm that violates a statute, rule, or order that the board has issued or is empowered to enforce is
not substantially justified, unless special circumstances make an award unjust, notwithstanding
the provisions of Minnesota Rules, part 1400.8401. The costs include, but are not limited to, the
amount paid by the board for services from the office of administrative hearings, attorney and
reasonable investigative fees, court reporters, witnesses, reproduction of records, board members'
per diem compensation, board staff time, and expense incurred by board members and staff.
(c) All hearings required by this subdivision must be conducted in accordance with chapter
14.
    Subd. 8. Persons and entities subject to discipline. Any person or entity who prepares or
reports on financial statements or schedules for a client for a fee is subject to this section and
the practice of the person or entity may be disciplined by the boards as provided for in this
section. The board may discipline a person or entity based on violations of this chapter, the
board's rules, or misrepresentations made by the person or entity regarding the work the person
or entity performed.
    Subd. 9. Notification of other states. In any case where the board renders a decision
imposing discipline against a person or firm, the board shall examine its records to determine
whether the person or firm holds a certificate or a permit in any other state. If so, the board shall
notify the board of accountancy of the other state of its decision, by mail, within 45 days of
the decision becoming final.
History: 2001 c 109 art 1 s 10

326A.09 REINSTATEMENT.
The board may reinstate a suspended, revoked, or surrendered certificate, registration, or
permit or suspended, revoked, or surrendered practice privileges upon petition of the person or
firm holding or formerly holding the registration, permit, or certificate, or practice privileges. The
board may, in its sole discretion, require that the person or firm submit to the board evidence of
having obtained up to 120 hours of continuing professional education credits that would have
been required had the person or firm held a registration, certificate, permit, or practice privileges
continuously. The board may, in its sole discretion, place any other conditions upon reinstatement
of a suspended, revoked, or surrendered certificate, permit, registration, or of practice privileges
that it finds appropriate and necessary to ensure that the purposes of this chapter are met. No
suspended certificate, registration, permit, or practice privileges may be reinstated until the former
holder, or person with practice privileges has completed one-half of the suspension.
History: 2001 c 109 art 1 s 11

326A.10 UNLAWFUL ACTS.
(a) Only a licensee may issue a report on financial statements of any person, firm,
organization, or governmental unit that results from providing attest services, or offer to render
or render any attest service. Only a certified public accountant, a CPA firm, or, to the extent
permitted by board rule, a person registered under section 326A.06, paragraph (b), may issue a
report on financial statements of any person, firm, organization, or governmental unit that results
from providing compilation services or offer to render or render any compilation service. These
restrictions do not prohibit any act of a public official or public employee in the performance of
that person's duties or prohibit the performance by any nonlicensee 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 on them. Nonlicensees
may prepare financial statements and issue nonattest transmittals or information on them which
do not purport to be in compliance with the Statements on Standards for Accounting and Review
Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may, to the
extent permitted by board rule, prepare financial statements and issue nonattest transmittals or
information on them.
(b) Licensees performing attest or compilation services must provide those services in
accordance with professional standards. To the extent permitted by board rule, registered
accounting practitioners performing compilation services must provide those services in
accordance with standards specified in board rule.
(c) A person who does not hold a valid certificate issued under section 326A.04 shall not
use or assume the title "certified public accountant," 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.
(d) A firm shall not provide attest services or assume or use the title "certified public
accountants," the abbreviation "CPAs," or any other title, designation, words, letters, abbreviation,
sign, card, or device tending to indicate that the firm is a CPA firm unless (1) the firm holds a
valid permit issued under section 326A.05, and (2) ownership of the firm is in accordance with
this chapter and rules adopted by the board.
(e) A person or firm that does not hold a valid certificate or permit issued under section
326A.04 or 326A.05 shall not assume or use the title "certified accountant," "chartered
accountant," "enrolled accountant," "licensed accountant," "registered accountant," "accredited
accountant," "accounting practitioner," "public accountant," "licensed public accountant," or any
other title or designation likely to be confused with the title "certified public accountant," or use
any of the abbreviations "CA," "LA," "RA," "AA," "PA," "AP," "LPA," or similar abbreviation
likely to be confused with the abbreviation "CPA." The title "enrolled agent" or "EA" may only be
used by individuals so designated by the Internal Revenue Service.
(f) Persons registered under section 326A.06, paragraph (b), may use the title "registered
accounting practitioner" or the abbreviation "RAP." A person who does not hold a valid
registration under section 326A.06, paragraph (b), shall not assume or use such title or
abbreviation.
(g) Except to the extent permitted in paragraph (a), nonlicensees may not use language in
any statement relating to the financial affairs of a person or entity that is conventionally used by
licensees in reports on financial statements. In this regard, the board shall issue by rule safe harbor
language that nonlicensees may use in connection with such financial information. A person
or firm that does not hold a valid certificate or permit, or a registration issued under section
326A.04, 326A.05, or 326A.06, paragraph (b), shall not assume or use any title or designation
that includes the word "accountant" or "accounting" in connection with any other language,
including the language of a report, that implies that the person or firm holds such a certificate,
permit, or registration or has special competence as an accountant. A person or firm that does not
hold a valid certificate or permit issued under section 326A.04 or 326A.05 shall not assume or use
any title or designation that includes the word "auditor" in connection with any other language,
including the language of a report, that implies that the person or firm holds such a certificate
or permit or has special competence as an auditor. However, this paragraph does not prohibit
any officer, partner, member, manager, or employee of any firm or organization from affixing
that person's own signature to any statement in reference to the financial affairs of such firm or
organization with any wording designating the position, title, or office that the person holds, nor
prohibit any act of a public official or employee in the performance of the person's duties as such.
(h) No person holding a certificate or registration or firm holding a permit under this chapter
shall use a professional or firm name or designation that is misleading about the legal form of
the firm, or about the persons who are partners, officers, members, managers, or shareholders of
the firm, or about any other matter. However, names of one or more former partners, members,
managers, or shareholders may be included in the name of a firm or its successor.
(i) Paragraphs (a) to (h) do 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, if:
(1) the activities of the person or firm 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 holds the entitlement;
(2) the person or firm performs no attest or compilation services and issues no reports with
respect to the financial statements of any other persons, firms, or governmental units in this
state; and
(3) the person or firm does not use in this state any title or designation other than the one
under which the person practices in the foreign country, followed by a translation of the title or
designation into English, if it is in a different language, and by the name of the country.
(j) No holder of a certificate issued under section 326A.04 may perform attest services
through any business form that does not hold a valid permit issued under section 326A.05.
(k) No individual licensee may issue a report in standard form upon a compilation of
financial information through any form of business that does not hold a valid permit issued
under section 326A.05, unless the report discloses the name of the business through which the
individual is issuing the report, and the individual:
(1) signs the compilation report identifying the individual as a certified public accountant;
(2) meets the competency requirement provided in applicable standards; and
(3) undergoes no less frequently than once every three years, a peer review conducted in a
manner specified by the board in rule, and the review includes verification that the individual has
met the competency requirements set out in professional standards for such services.
(l) No person registered under section 326A.06, paragraph (b), may issue a report in standard
form upon a compilation of financial information unless the board by rule permits the report
and the person:
(1) signs the compilation report identifying the individual as a registered accounting
practitioner;
(2) meets the competency requirements in board rule; and
(3) undergoes no less frequently than once every three years a peer review conducted in a
manner specified by the board in rule, and the review includes verification that the individual has
met the competency requirements in board rule.
(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from preparing
or presenting records or documents customarily prepared by an attorney or firm of attorneys in
connection with the attorney's professional work in the practice of law.
(n) Notwithstanding other provisions of this section, persons preparing unaudited financial
statements under corresponding provisions of prior law shall be permitted to perform compilation
services until six months after the board adopts rules under section 326A.06.
History: 2001 c 109 art 1 s 12

326A.11 SINGLE ACT EVIDENCE OF PRACTICE.
In any action brought under section 326A.08, evidence of the commission of a single
act prohibited by this chapter is sufficient to justify a penalty, injunction, restraining order, or
conviction, respectively, without evidence of a general course of conduct.
History: 2001 c 109 art 1 s 13

326A.12 CONFIDENTIAL COMMUNICATIONS.
(a) Except by permission of the client for whom a licensee performs services or the heirs,
successors, or personal representatives of the client, a licensee shall 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. Nothing in this section may be construed to prohibit:
(1) the disclosure of information required to be disclosed by the standards of the public
accounting profession in reporting on the examination of financial statements; or
(2) disclosures in court proceedings, in investigations or proceedings under section 326A.08,
in ethical investigations conducted by private professional organizations, in the course of peer
reviews, 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.
(b) This section also applies to persons registered under section 326A.06, paragraph (b).
History: 2001 c 109 art 1 s 14

326A.13 WORKING PAPERS; CLIENTS' RECORDS.
(a) Subject to the provisions of section 326A.12, all statements, records, schedules, working
papers, and memoranda made by a licensee or a partner, shareholder, officer, director, member,
manager, 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, remain the property of the licensee in the absence of an express
agreement between the licensee and the client to the contrary. No statement, record, schedule,
working paper, or memorandum may 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, stockholders, members or new partners, new stockholders, new members of
the licensee, or any combined or merged firm or successor in interest to the licensee. Nothing
in this section may be construed as prohibiting any temporary transfer of workpapers or other
material necessary in the course of carrying out peer reviews or as otherwise interfering with the
disclosure of information pursuant to section 326A.12.
(b) A licensee shall furnish to a client or former client, upon request and reasonable notice:
(1) a copy of the licensee's working papers, to the extent that the working papers include
records that would ordinarily constitute part of the client's records and are not otherwise available
to the client; and
(2) 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.
(c) Nothing in this section requires a licensee to keep any work paper beyond the period
prescribed in any other applicable statute.
(d) This section also applies to persons registered under section 326A.06, paragraph (b).
History: 2001 c 109 art 1 s 15

326A.14 SUBSTANTIAL EQUIVALENCY.
    Subdivision 1. Requirements. (a) An individual whose principal place of business is not
in this state and who has a valid certificate or license as a certified public accountant from any
state which, upon verification, is in substantial equivalence with the certified public accountant
licensure requirements of this chapter shall be presumed to have qualifications substantially
equivalent to this state's requirements and shall have all the privileges of certificate holders and
licensees of this state without the need to obtain a certificate or permit. However, such individuals
shall notify the board of their intent to enter the state under this provision as provided for in
board rule and pay the required fee.
(b) An individual whose principal place of business is not in this state and who has a
valid certificate or license as a certified public accountant from any state whose certified public
accountant licensure qualifications, upon verification, are not substantially equivalent with the
licensure requirements of this chapter shall be presumed to have qualifications substantially
equivalent to this state's requirements and shall have all the privileges of certificate holders
and licensees of this state without the need to obtain a certificate or permit if the individual
obtains verification, as specified in board rule, that the individual's qualifications are substantially
equivalent to the licensure requirements of this chapter. Such individuals shall notify the board
of their intent to enter the state under this provision as provided for in board rule and pay the
required fee.
(c) Any licensee of another state exercising the privilege afforded under this section consents,
as a condition of the grant of this privilege:
(1) to the personal and subject matter jurisdiction and disciplinary authority of the board;
(2) to comply with this chapter and the board's rules; and
(3) to the appointment of the state board that issued the license as the licensee's agent upon
whom process may be served in any action or proceeding by this board against the licensee.
    Subd. 2. Use of title in another state. A licensee of this state offering or rendering services
or using the CPA title in another state is subject to the same disciplinary action in this state for
which the licensee would be subject to discipline for an act committed in the other state. The
board shall investigate any complaint made by the board of accountancy of another state.
History: 2001 c 109 art 1 s 16