[Rev. 3/27/2014 8:35:08 PM]

 

This chapter of NAC has changes which have been adopted but have not been codified; you can see those changes by viewing the following regulation(s) on the Nevada Register of Administrative Regulations: R031-13, R046-13

[NAC-628 Revised Date: 4-12]

CHAPTER 628 - ACCOUNTANTS

GENERAL PROVISIONS

628.010              Definitions.

628.015              Committees of Board.

628.016              Fees of Board.

CERTIFICATION

628.018              Definitions.

628.019              Investigation of criminal history; submission of fingerprints.

628.020              Examinations: Applications; locations; additional prerequisites; failure to appear.

628.030              Examinations: Requirements.

628.040              Examinations: Format; passing grades; conditional credit; reexamination.

628.055              Requirements for education.

628.060              Requirements for experience: Function of attesting; evaluation by Board; educational requirements for individual review.

628.061              Experience in function of attesting: Supplemental educational program.

628.062              Experience as internal auditor: General requirements.

628.0622            Experience as internal auditor: Educational requirements.

628.0624            Experience as internal auditor: Qualification of internal audit department.

628.0626            Experience as internal auditor: External quality control review of qualified internal audit department.

628.0628            Experience as internal auditor: Maintenance and destruction of record of experience.

628.063              Experience as internal auditor: Acceptability of experience earned before July 6, 1992.

628.064              Experience as auditor of State Gaming Control Board: “Audit Division” defined.

628.0642            Experience as auditor of State Gaming Control Board: General requirements.

628.0644            Experience as auditor of State Gaming Control Board: Educational requirements.

628.0646            Experience as auditor of State Gaming Control Board: Quality control review of Audit Division.

628.065              Experience as auditor of Legislative Counsel Bureau: “Audit Division” defined.

628.0652            Experience as auditor of Legislative Counsel Bureau: General requirements.

628.0654            Experience as auditor of Legislative Counsel Bureau: Educational requirements.

628.0656            Experience as auditor of Legislative Counsel Bureau: Quality control review of Audit Division.

628.066              Experience as agent of Internal Revenue Service: General requirements.

628.0662            Experience as agent of Internal Revenue Service: Conditions for acceptance of qualified audit hours.

628.0664            Experience as agent of Internal Revenue Service: Appointment and duties of internal review committee.

628.0666            Experience as agent of Internal Revenue Service: Maintenance of record of experience.

628.0668            Experience as agent of Internal Revenue Service: Educational requirements.

628.067              Experience as agent of Internal Revenue Service: Quality control.

628.068              Experience in internal auditing work or governmental accounting and auditing work: Additional means of satisfying requirements.

628.070              Certificate by reciprocity or temporary permit.

628.080              Waiver of examination; submission of proof of continuing education.

628.090              Temporary permits.

628.100              Notification of change of address.

628.110              Retired or inactive status; revocation for nonpayment of fees; reinstatement.

REGISTRATION OF PUBLIC ACCOUNTANTS, PARTNERSHIPS, CORPORATIONS, LIMITED-LIABILITY COMPANIES AND OFFICES

628.130              Applications; approval or disapproval.

628.140              Name of proprietorship, partnership, limited-liability company or professional corporation.

628.150              Affiliations of proprietorships, partnerships, limited-liability companies and corporations.

628.160              Transfer of interest in partnership, limited-liability company or corporation.

628.180              Reports of corporations, limited-liability companies and partnerships.

PERMIT FOR PUBLIC ACCOUNTING

628.190              Renewal of permit.

CONTINUING EDUCATION

628.210              Prerequisites to renewal of permit; exemption; waiver.

628.220              Standards for qualifying programs.

628.230              Acceptable programs and subjects.

628.240              Determination and allowance of credit.

628.250              Application for renewal of permit; maintenance of records; action by Board.

DISCIPLINARY ACTION

628.430              Complaints issued by Board; notice of hearing; examination of documents.

628.440              Conduct of hearing.

628.450              Publication of decisions.

UNLAWFUL PRACTICE

628.460              Certificate and permit required.

STANDARDS OF PRACTICE

628.500              Adoption by reference of Code of Professional Conduct; exceptions.

628.510              Applicability.

628.520              Reporting of certain occurrences to Board.

PROGRAM TO MONITOR QUALITY OF FINANCIAL REPORTING

628.550              Definitions.

628.555              “Evaluation” defined.

628.560              “Practice-monitoring findings” defined.

628.565              “Practice-monitoring program” defined.

628.570              “Transmittal form” defined.

628.575              Cycle for review of reports; notification of practitioners.

628.580              Participation in program; submission and verification of practice-monitoring findings; exempt practitioners.

628.585              Deficient or marginal practice-monitoring findings; refusal to comply with practice-monitoring findings.

628.590              Confidentiality; destruction of documentation.

 

 

 

GENERAL PROVISIONS

      NAC 628.010  Definitions. (NRS 628.120)  As used in this chapter, unless the context otherwise requires:

     1.  “Board” means the Nevada State Board of Accountancy.

     2.  “Practitioner” means:

     (a) A certified public accountant or a public accountant licensed by the Board to engage in the practice of public accounting; or

     (b) A certified public accountant or firm of certified public accountants which does not hold a live permit and does not have a registered office or residence in this State, but has been issued, or has applied for, a temporary permit pursuant to NRS 628.440.

     [Bd. of Accountancy, Art. 1 § 1, eff. 5-13-82]—(NAC A 12-13-96)

      NAC 628.015  Committees of Board. (NRS 628.120, 628.170)  The Board will establish standing or temporary committees as it deems necessary. Written minutes of all deliberations must be maintained.

     [Bd. of Accountancy, Art. 8, eff. 5-13-82]—(Substituted in revision for NAC 628.290)

      NAC 628.016  Fees of Board. (NRS 628.120, 628.250, 628.280, 628.340, 628.343, 628.345, 628.360, 628.363, 628.365, 628.375, 628.380, 628.440)

     1.  The following fees for examinations are prescribed by the Board:

     (a) For an initial examination for a certificate as a certified public accountant, the Board will establish each year a fee that will not exceed $500.

     (b) For reexamination, the Board will establish each year a fee for each section that will not exceed $100.

     (c) For the transfer of the examination grades of an applicant to another state or jurisdiction of the United States......................................................................................

                  $50

     2.  The following fees for applications are prescribed by the Board:

     (a) For an application for a certificate as a certified public accountant by reciprocity or pursuant to passing the Uniform Certified Public Accountant Examination administered in this State or in another jurisdiction...............................................................................

                $200

          plus the actual cost of the investigation required pursuant to NAC 628.019, which will not exceed $75.

 

     (b) For an application for registration of a corporation, limited-liability company or partnership  

                $200

     3.  The following other fees are prescribed by the Board:

     (a) For a temporary permit to a nonresident accounting firm:

          The proprietor, partner, member or shareholder responsible for the conduct of the engagement..........................................................................................................

                $200

          Each additional person employed in the conduct of the engagement during the period of the permit..............................................................................................

                  $25

     (b) For filing an annual report for a corporation, limited-liability company or partnership....................................................................................................................

                $125

     (c) For the late filing of an annual report of a corporation, limited-liability company or partnership  

                $100

     (d) For reinstatement into public practice from retired or inactive status.....................

                $250

     (e) For the late filing of the annual renewal of a permit to practice public accounting, after January 31 of each year.........................................................................................

                $100

     (f) For an individual evaluation of experience pursuant to subsection 2 of NAC 628.060, in addition to any reasonable costs of travel actually incurred by the Board and imposed pursuant to subsection 3 of NAC 628.060.......................................................

             $1,000

     (g) For registering a fictitious name...........................................................................

                $100

 

 

     (h) A uniform fee for an annual permit or an annual renewal of a permit to practice public accounting will be established by the Board each year. The fee will not exceed $200 and will be prorated if an initial annual permit is obtained during the year.

     4.  Any fee paid pursuant to this section must be paid in the currency of the United States.

     [Bd. of Accountancy, Art. 5 § 2, eff. 5-13-82]—(NAC A 2-6-87; 1-21-88; 12-21-89; 7-6-92; 5-18-94; 12-13-96; R192-97, 1-30-98; R169-99, 12-13-99; R094-01, 10-17-2001; R094-01, 10-17-2001, eff. 1-1-2002; R075-03, 10-28-2003, eff. 1-1-2004; R056-05, 11-17-2005)—(Substituted in revision for NAC 628.120)

CERTIFICATION

      NAC 628.018  Definitions. (NRS 628.120)  As used in NAC 628.018 to 628.110, inclusive, unless the context otherwise requires:

     1.  “Qualified audit hour” means:

     (a) An hour spent performing an operational audit, financial audit, compliance audit, management audit or any other audit; or

     (b) For determining the internal audit experience or governmental experience of an applicant for a certificate of certified public accountant, an hour spent performing an audit which is substantially similar to audits required in the practice of public accounting.

Ê The term does not include an hour spent performing work typically performed by a controllership or assisting an independent auditor in preparing schedules.

     2.  “Qualified internal audit department” means an audit department which complies with the requirements set forth in NAC 628.0624.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96)

      NAC 628.019  Investigation of criminal history; submission of fingerprints. (NRS 628.120, 628.190)  Each applicant for certification must:

     1.  Agree to an investigation of his or her criminal history to determine whether the applicant is qualified for certification pursuant to paragraph (d) of subsection 1 of NRS 628.190; and

     2.  Submit to the Board a complete set of his or her fingerprints.

     (Added to NAC by Bd. of Accountancy, eff. 12-13-96; A by R169-99, 12-13-99)

      NAC 628.020  Examinations: Applications; locations; additional prerequisites; failure to appear. (NRS 628.120, 628.230)

     1.  Applications to take the examination for certification as a certified public accountant must be made on a form provided by the Board and filed with the Board. The examinations will be held at locations designated by the Board.

     2.  Each applicant must submit the names of at least three persons, one of whom must be a resident of Nevada and none of whom may be related by blood or marriage to the applicant, who can vouch for the applicant’s character. No person may take the examination until the Board is satisfied that the person is of fiscal integrity and without any history of acts involving dishonesty or moral turpitude.

     3.  An application is not considered filed until the fee for the examination and all required supporting documents, including official transcripts, have been received by the Board.

     4.  An applicant who fails to appear for an examination forfeits the fees charged for the examination unless the Board determines, based on information supplied by the applicant, that there existed reasonable cause beyond the applicant’s control for the failure to appear.

     5.  Notice of the acceptance of the application will be mailed to each applicant.

     [Bd. of Accountancy, Art. 2 §§ 1 & 2, eff. 5-13-82]—(NAC A 2-6-87; 5-18-94; 12-13-96; R169-99, 12-13-99; R075-03, 10-28-2003)

 

      NAC 628.030  Examinations: Requirements. (NRS 628.120, 628.190, 628.230)

     1.  The examination required by NRS 628.190 is the Uniform Certified Public Accountant Examination.

     2.  In addition to the Uniform Certified Public Accountant Examination, no earlier than 3 years before filing the application for certification as a certified public accountant, an applicant must pass an examination in professional ethics which is prescribed by or acceptable to the Board.

     [Bd. of Accountancy, Art. 2 § 3, eff. 5-13-82]—(NAC A 5-18-94; R169-99, 12-13-99)

      NAC 628.040  Examinations: Format; passing grades; conditional credit; reexamination. (NRS 628.120, 628.230)

     1.  On or after January 1, 2004, the examination will be conducted on a computer. The passing grade for each section of the examination is 75.

     2.  Except as otherwise provided in this section, an applicant who at one sitting receives a passing grade on any section of the examination is entitled to receive conditional credit for each section passed. Any conditional credit granted pursuant to this section expires if all unpassed sections of the examination have not been completed within 18 months after the applicant passes a section of the examination. An applicant may not be reexamined on any section for which he or she did not receive a passing grade during the calendar quarter in which he or she failed to receive a passing grade for that section.

     3.  An applicant who receives conditional credit before January 1, 2004:

     (a) Is entitled to receive conditional credit for the corresponding section of the examination conducted on or after January 1, 2004.

     (b) May take the examination conducted on or after January 1, 2004, as many times as the applicant would have been entitled to take the examination conducted before January 1, 2004.

     (c) And fails to pass the remaining sections of the examination within the number of examinations authorized for an applicant before January 1, 2004:

          (1) Forfeits any conditional credit he or she received for any section of the examination he or she passed before January 1, 2004; and

          (2) Does not forfeit any conditional credit he or she received for any section passed on the examination conducted on or after January 1, 2004.

     [Bd. of Accountancy, Art. 2 §§ 4 & 5, eff. 5-13-82]—(NAC A 2-6-87; 7-6-92; 5-18-94; R169-99, 12-13-99; R075-03, 10-28-2003, eff. 1-1-2004)

      NAC 628.055  Requirements for education. (NRS 628.120, 628.200)

     1.  The provision set forth in NRS 628.200 requiring at least 150 semester hours from a college or university recognized by the Board may be satisfied in whole or in part by the equivalent number of quarter hours of college credits from a college or university recognized by the Board.

     2.  The 150 semester hours required pursuant to NRS 628.200 must include at least:

     (a) Thirty semester hours in courses above the level of introductory courses which include 9 hours in financial accounting, 3 hours in cost and managerial accounting, 3 hours in auditing, 3 hours in federal income tax and 12 hours in electives related to accounting;

     (b) Three semester hours in business law; and

     (c) Twenty-four semester hours of courses in business, at the undergraduate or graduate level, other than courses in accounting and courses required under paragraphs (a) and (b), in the following subject areas:

          (1) Behavior of organizations, groups and persons.

          (2) Business finance.

          (3) Business law.

          (4) Computers.

          (5) Data processing.

 

 

          (6) Economics.

          (7) Ethics in business.

          (8) Legal and social environment of business.

          (9) Management.

          (10) Marketing.

          (11) Oral communication.

          (12) Quantitative applications in business.

          (13) Statistics.

          (14) Written communication, other than English courses for freshman students, including, but not limited to, business communications, advanced grammar and technical writing.

Ê The semester hours required by this subsection may be satisfied in whole or in part by the equivalent number of quarter hours of college credits from a college or university recognized by the Board.

     3.  An applicant holding a bachelor’s degree and a master’s degree in accounting that combined include 150 semester hours of education awarded by an institution which is accredited by an organization approved by the Board on the dates the degrees are awarded shall be deemed to be in compliance with the educational requirements set forth in NRS 628.200 and this section.

     4.  If a school or institution does not use a system of accounting based upon semester hours, the Board will convert the hours completed in such a school or institution to semester hours based upon a standard system of conversion.

     (Added to NAC by Bd. of Accountancy, 5-18-94, eff. 1-1-01; A 12-13-96)

      NAC 628.060  Requirements for experience: Function of attesting; evaluation by Board; educational requirements for individual review. (NRS 628.120, 628.200)

     1.  Except as otherwise provided in NAC 628.061, the minimum requirements of experience in the function of attesting in the practice of public accounting, professionally known as the attest function, are as follows:

     (a) An applicant for a certificate of certified public accountant must have at least 1,000 hours of experience in the attest function, of which not more than 300 hours may consist of reviews or full disclosure compilations. This includes the planning, management and execution of such engagements.

     (b) An applicant may acquire this experience by participating in the planning, management and performance of such engagements for at least 600 hours, of which no more than 180 hours may consist of reviews or full disclosure compilation, if the applicant has also completed formal programs of training of a character and magnitude which are, when considered with the experience obtained in the function of attesting, substantially equivalent in the Board’s judgment to 1,000 hours of attesting experience as described in paragraph (a).

     2.  The Board will, upon receipt of an application, evaluate the character of experience obtained under the supervision of a certified public accountant by persons employed by specific agencies of the government or an internal audit department of a business and define the duration and the character of that work with specified programs of training that are substantially equivalent to 2 years of experience in the practice of public accounting. The Board will allow 1/2 of the number of months of experience earned by the person as a credit toward the requirements set forth in subsection 1 of NRS 628.200.

     3.  An applicant for a certificate who has requested an individual review must pay an additional fee for the evaluation by the Board of the extent and nature of a person’s experience or the extent and nature of the experience provided by any specific governmental agency or an internal audit department of a business. The Board may require an applicant to reimburse the Board for reasonable costs of travel actually incurred in evaluating the character of an applicant’s experience.

     4.  A person who has passed the examination for a certificate as a certified public accountant will not be held to a higher standard in the evaluation of his or her experience than the standard defined by the Board on the date he or she passed the examination.

     5.  An applicant must submit a certificate of attest experience to the Board as proof of his or her attest experience. The certificate must:

     (a) Be signed, under penalty of perjury, by the certified public accountant who supervised the applicant’s work.

     (b) Identify separately the number of hours of attest experience in each of the following areas:

          (1) Audit.

          (2) Review.

          (3) Full disclosure compilation.

     6.  The attest experience described in subsection 5 must include experience relating to:

     (a) The evaluation of internal control as a basis for reliance thereon for the determination of the extent of the tests to which auditing procedures in the program of audit are to be applied;

     (b) The planning of the program of audit work, including the selection of the procedures to be followed;

     (c) The preparation and indexing of audit work papers relating to the audits of financial statements;

     (d) The application of various auditing procedures and techniques to the usual and customary financial transactions;

     (e) The preparation of the auditor’s report and the preparation of written explanations and comments relating to the findings of the audit and the content of the accounting records; and

     (f) The preparation and analysis of financial statements.

     7.  The applicant shall keep a record of his or her work experience, including related work papers, for review by the Board.

     8.  Except as otherwise provided in subsection 12, an applicant who has requested an individual review pursuant to this section must complete at least 120 hours of credit in the following subject areas:

 

     Subject Area

     Hours of Credit

 

 

     Professional Training for Public Accountants - Level I.....................................

                              24

          (Staff Training - Basic)

 

     Designing Audit Programs for Small

 

          Business Engagements...............................................................................

                                8

     Professional Training for Public Accountants - Level II....................................

                              24

          (Staff Training - Semi-Senior)

 

     Financial Accounting Standards Board-Accounting

 

          Principles Board Review (FASB-APB).....................................................

                              16

     Professional Training for Public Accountants - Level III...................................

                              24

          (Staff Training - Beginning In-Charge)

 

     Preparing Financial Statements.......................................................................

                                8

     Financial Statement Disclosures......................................................................

                              16

 

     9.  The number of hours of credit designated for each subject area listed in subsection 8 is the minimum number of hours required for that subject area.

     10.  An applicant may take more than one course in any subject area.

     11.  An applicant is entitled to receive credit for any course he or she completes in the program, regardless of the title of the course, if the content of the course is within one of the subject areas listed in subsection 8.

     12.  The Board may waive any course required by subsection 8 if it finds that the applicant has demonstrated sufficient knowledge of that course.

     [Bd. of Accountancy, Art. 10, eff. 5-13-82]—(NAC A 2-6-87; 7-6-92; 5-18-94; 12-13-96)

 

      NAC 628.061  Experience in function of attesting: Supplemental educational program. (NRS 628.120, 628.200)

     1.  If an applicant for a certificate of certified public accountant has at least 600 hours of experience in the attest function, including at least 420 audit hours, but less than 1,000 hours of experience in the attest function, including at least 700 audit hours, the applicant must supplement his or her experience in the function of attesting by successfully completing the educational program described in subsection 2 which is offered by the American Institute of Certified Public Accountants or a substantially equivalent program approved by the Board.

     2.  To comply with the requirements set forth in subsection 1, an applicant must complete at least 80 hours of credit in the following subject areas:

 

     Subject Area

     Hours of Credit

 

 

     Professional Training for Public Accountants - Level II.....................................

                            24

          (Staff Training - Semi-Senior)

 

     Professional Training for Public Accountants - Level III....................................

                            24

          (Staff Training - Beginning In-Charge)

 

     Internal Control: The Auditor’s Responsibilities................................................

                              8

     Audits of Small Businesses..............................................................................

                              8

     Financial Accounting Standards Board-Accounting

 

          Principles Board Review (FASB-APB)......................................................

                            16

 

     3.  The number of hours of credit designated for each subject area listed in subsection 2 is the minimum number of hours required for that subject area.

     4.  An applicant may take more than one course in any subject area.

     5.  An applicant is entitled to receive credit for any course he or she completes in the program, regardless of the title of the course, if the content of the course is within one of the subject areas listed in subsection 2.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94; 12-13-96)

      NAC 628.062  Experience as internal auditor: General requirements. (NRS 628.120, 628.200)

     1.  An applicant who submits an application to the Board for a certificate of certified public accountant may satisfy the requirements of subsection 2 of NRS 628.200 if he or she:

     (a) Completes at least 2,000 qualified audit hours while employed as an internal auditor with a qualified internal audit department;

     (b) Has at least 4 years of work experience employed as an internal auditor with a qualified internal audit department under the supervision of a certified public accountant; and

     (c) Successfully completes the educational program described in NAC 628.0622 which is offered by the American Institute of Certified Public Accountants or a substantially equivalent program approved by the Board.

     2.  An applicant must comply with each of the requirements set forth in subsection 1 before submitting the application to the Board. The Board will not accept work experience, including experience in public accounting or governmental experience, other than that which is required by this section.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92)

      NAC 628.0622  Experience as internal auditor: Educational requirements. (NRS 628.120, 628.200)

     1.  To comply with the requirements of paragraph (c) of subsection 1 of NAC 628.062, an applicant must complete at least 120 hours of credit in the following subject areas:

 

 

 

     Subject Area

    Hours of Credit

 

 

     Professional Training for Public Accountants - Level I......................................

                           24

          (Staff Training - Basic)

 

     Designing Audit Programs for Small Business Engagements..............................

                             8

     Professional Training for Public Accountants - Level II.....................................

                           24

          (Staff Training - Semi-Senior)

 

     Financial Accounting Standards Board-Accounting

 

          Principles Board Review (FASB-APB)......................................................

                           16

     Professional Training for Public Accountants - Level III....................................

                           24

          (Staff Training - Beginning In-Charge)

 

     Preparing Financial Statements........................................................................

                             8

     Financial Statement Disclosures.......................................................................

                           16

 

     2.  The number of hours of credit designated for each subject area listed in subsection 1 is the minimum number of hours required for that subject area.

     3.  An applicant may take more than one course in any subject area.

     4.  An applicant is entitled to receive credit for any course he or she completes in the program, regardless of the title of the course, if the content of the course is within one of the subject areas listed in subsection 1.

     5.  An applicant may complete the requirements of the three levels of professional training described in subsection 1 by completing internal courses which have been previously approved by the Board as being substantially the equivalent of the three levels of professional training described in subsection 1.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94; 12-13-96)

      NAC 628.0624  Experience as internal auditor: Qualification of internal audit department. (NRS 628.120, 628.200)  The Board will designate the internal audit department of a business as a qualified internal audit department if:

     1.  The department submits an application for designation as a qualified internal audit department;

     2.  The director of the department is:

     (a) A certified public accountant; and

     (b) Directly responsible to and reports directly to the audit committee of the board of directors of the business, the board of directors of the business or an equivalent organizational body of the business which is approved by the board;

     3.  The department is sufficiently independent to allow it to be objective and to provide impartial and unbiased judgments essential to the proper conduct of its audits;

     4.  The department has received an external quality control review which is acceptable to the Board and an external quality control review of the department is conducted every 3 years pursuant to a program approved by the Board; and

     5.  The department establishes and maintains policies and procedures concerning quality control which are appropriately documented and comply with professional standards of auditing or accounting.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96)

      NAC 628.0626  Experience as internal auditor: External quality control review of qualified internal audit department. (NRS 628.120, 628.200)  The director of a qualified internal audit department shall:

     1.  Notify the Board of each external quality control review conducted pursuant to subsection 4 of NAC 628.0624. The Board may observe the final conference for that review.

 

     2.  Submit the report of the external quality control review, letter of comments and responses thereto to the Board within 30 days after they are received by the qualified internal audit department.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96)

      NAC 628.0628  Experience as internal auditor: Maintenance and destruction of record of experience. (NRS 628.120, 628.200)

     1.  A qualified internal audit department or an applicant earning work experience employed as an internal auditor with the department shall keep a record of the applicant’s work experience, including related work papers, for review by the Board.

     2.  A qualified internal audit department may establish a policy concerning the destruction of the records of an applicant’s work experience, including related work papers. The policy established by the department must provide for:

     (a) The notification of an applicant concerning the destruction of the records of his or her work experience, including related work papers; and

     (b) An opportunity for the applicant to obtain a copy of those records before they are destroyed.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96)

      NAC 628.063  Experience as internal auditor: Acceptability of experience earned before July 6, 1992. (NRS 628.120, 628.200)

     1.  Except as otherwise provided in subsection 2, the Board will accept experience earned by an applicant while working as an internal auditor in a qualified internal audit department before July 6, 1992, for the purposes of complying with the requirements set forth in NAC 628.062, if at the time the hours of experience were earned, the qualified internal audit department complied with the requirements set forth in NAC 628.0624 and 628.0626, except the requirement for an external quality control review.

     2.  The Board will not accept any experience which was earned by an applicant more than 5 years before July 6, 1992.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92)

      NAC 628.064  Experience as auditor of State Gaming Control Board: “Audit Division” defined. (NRS 628.120, 628.200)  As used in NAC 628.0642 and 628.0646, unless the context otherwise requires, “Audit Division” means the Audit Division of the State Gaming Control Board.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96)

      NAC 628.0642  Experience as auditor of State Gaming Control Board: General requirements. (NRS 628.120, 628.200)

     1.  An applicant employed as an auditor by the Audit Division who submits an application to the Board for a certificate of certified public accountant may satisfy the requirements of subsection 2 of NRS 628.200 if he or she:

     (a) Has at least 4 years of experience as an auditor with the Audit Division under the supervision of a certified public accountant; and

     (b) Successfully completes the educational program described in NAC 628.0644 which is offered by the American Institute of Certified Public Accountants or a substantially equivalent program approved by the Board.

     2.  An applicant must comply with each of the requirements set forth in subsection 1 before submitting the application to the Board. The Board will not accept work experience, including experience in public accounting, internal audit experience or other governmental experience, other than that which is required by this section.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92)

      NAC 628.0644  Experience as auditor of State Gaming Control Board: Educational requirements. (NRS 628.120, 628.200)

     1.  To comply with the requirements of paragraph (b) of subsection 1 of NAC 628.0642, an applicant must complete at least 120 hours of credit in the following subject areas:

 

     Subject Area

             Hours of Credit

 

 

     Professional Training for Public Accountants - Level I................................

                                 24

          (Staff Training - Basic)

 

     Designing Audit Programs for Small Business Engagements........................

                                   8

     Professional Training for Public Accountants - Level II...............................

                                 24

          (Staff Training - Semi-Senior)

 

     Financial Accounting Standards Board-Accounting

 

          Principles Board Review (FASB-APB).................................................

                                 16

     Professional Training for Public Accountants - Level III..............................

                                 24

          (Staff Training - Beginning In-Charge)

 

     Preparing Financial Statements...................................................................

                                   8

     Financial Statement Disclosures.................................................................

                                 16

 

     2.  The number of hours of credit designated for each subject area listed in subsection 1 is the minimum number of hours required for that subject area.

     3.  An applicant may take more than one course in any subject area.

     4.  An applicant is entitled to receive credit for any course he or she completes in the program, regardless of the title of the course, if the content of the course is within one of the subject areas listed in subsection 1.

     5.  An applicant may complete the requirements of the three levels of professional training described in subsection 1 by completing internal courses which have been previously approved by the Board as being substantially the equivalent of the three levels of professional training described in subsection 1.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94; 12-13-96)

      NAC 628.0646  Experience as auditor of State Gaming Control Board: Quality control review of Audit Division. (NRS 628.120, 628.200)

     1.  A quality control review of the Audit Division must be conducted every 3 years pursuant to a program approved by the Board.

     2.  The Audit Division shall:

     (a) Notify the Board of each final conference for the quality control review. The Board may observe the conference.

     (b) Submit the report of the review, letter of comments and responses thereto to the Board within 30 days after they are received by the Audit Division.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92)

      NAC 628.065  Experience as auditor of Legislative Counsel Bureau: “Audit Division” defined. (NRS 628.120, 628.200)  As used in NAC 628.0652 and 628.0656, unless the context otherwise requires, “Audit Division” means the Audit Division of the Legislative Counsel Bureau.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96)

      NAC 628.0652  Experience as auditor of Legislative Counsel Bureau: General requirements. (NRS 628.120, 628.200)

     1.  An applicant employed as an auditor by the Audit Division who submits an application to the Board for a certificate of certified public accountant may satisfy the requirements of subsection 2 of NRS 628.200 if he or she:

     (a) Has at least 4 years of experience as an auditor with the Audit Division under the supervision of a certified public accountant; and

     (b) Successfully completes the educational program described in NAC 628.0654 which is offered by the American Institute of Certified Public Accountants or a substantially equivalent program approved by the Board.

     2.  An applicant must comply with each of the requirements set forth in subsection 1 before submitting the application to the Board. The Board will not accept work experience, including experience in public accounting, internal audit experience or other governmental experience, other than that which is required by this section.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92)

      NAC 628.0654  Experience as auditor of Legislative Counsel Bureau: Educational requirements. (NRS 628.120, 628.200)

     1.  To comply with the requirements set forth in paragraph (b) of subsection 1 of NAC 628.0652, an applicant must complete at least 120 hours of credit in the following subject areas:

 

     Subject Area

Hours of Credit

 

 

     Professional Training for Public Accountants - Level I....................................

                             24

          (Staff Training - Basic)

 

     Designing Audit Programs for Small Business Engagements............................

                               8

     Professional Training for Public Accountants - Level II...................................

                             24

          (Staff Training - Semi-Senior)

 

     Financial Accounting Standards Board-Accounting

 

          Principles Board Review (FASB-APB).....................................................

                             16

     Professional Training for Public Accountants - Level III..................................

                             24

          (Staff Training - Beginning In-Charge)

 

     Preparing Financial Statements.......................................................................

                               8

     Financial Statement Disclosures.....................................................................

                             16

 

     2.  The number of hours of credit designated for each subject area is the minimum number of hours required for that subject area.

     3.  An applicant may take more than one course in a subject area.

     4.  An applicant is entitled to receive credit for any course he or she completes in the program, regardless of the title of the course, if the content of the course is within one of the subject areas listed in subsection 1.

     5.  An applicant may complete the requirements of the three levels of professional training described in subsection 1 by completing internal courses which have been previously approved by the Board as being substantially the equivalent of the three levels of professional training described in subsection 1.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94; 12-13-96)

      NAC 628.0656  Experience as auditor of Legislative Counsel Bureau: Quality control review of Audit Division. (NRS 628.120, 628.200)

     1.  A quality control review of the Audit Division must be conducted every 3 years pursuant to a program approved by the Board.

     2.  The Audit Division shall:

     (a) Notify the Board of each final conference for the quality control review. The Board may observe the conference.

     (b) Submit the report of the review, letter of comments and responses thereto to the Board within 30 days after they are received by the Audit Division.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92)

      NAC 628.066  Experience as agent of Internal Revenue Service: General requirements. (NRS 628.120, 628.200)

     1.  An applicant employed as an agent by the Internal Revenue Service who submits an application to the Board for a certificate of certified public accountant may satisfy the requirements of subsection 2 of NRS 628.200 if he or she:

     (a) Completes at least 2,000 qualified audit hours as an agent of the Internal Revenue Service;

     (b) Has at least 4 years of experience as an agent of the Internal Revenue Service, under the supervision of a certified public accountant, of which at least 2 years must have been at a grade of not less than GS-11; and

     (c) Successfully completes the educational program described in NAC 628.0668 which is offered by the American Institute of Certified Public Accountants or a substantially equivalent program approved by the Board.

     2.  An applicant must comply with each of the requirements set forth in subsection 1 before submitting the application to the Board. The Board will not accept work experience, including experience in public accounting, internal audit experience or other governmental experience, other than that which is required by this section.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by R075-03, 10-28-2003)

      NAC 628.0662  Experience as agent of Internal Revenue Service: Conditions for acceptance of qualified audit hours. (NRS 628.120, 628.200)  The Board will not accept qualified audit hours earned by an applicant as an agent employed by the Internal Revenue Service unless:

     1.  He or she has at least 2 years of experience as an agent of the Internal Revenue Service at a grade of not less than GS-11;

     2.  He or she has passed the Uniform Certified Public Accountant Examination; and

     3.  An internal review committee established by the Internal Revenue Service has approved his or her work experience as an agent employed by the Internal Revenue Service.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by R075-03, 10-28-2003)

      NAC 628.0664  Experience as agent of Internal Revenue Service: Appointment and duties of internal review committee. (NRS 628.120, 628.200)

     1.  If an internal review committee for the Internal Revenue Service is established in this State and if a biographical profile of each member appointed to the committee by the Internal Revenue Service is provided to the Board, the Board will approve or disapprove the members of the committee. The Board will not approve any member of the committee unless he or she is a certified public accountant certified by the Board and exercises supervisory duties as an employee of the Internal Revenue Service.

     2.  The internal review committee shall review and, if appropriate, approve audit work of each person who submits an application pursuant to NAC 628.066.

     3.  The committee shall assign a case of sufficient volume and difficulty to each applicant for performance of the applicant’s qualified audit hours. The case must:

     (a) Consist of not less than $10,000,000 in assets and be audited in accordance with the procedures for large cases and generally accepted auditing standards; and

     (b) Include the preparation of an opinion report concerning related financial information.

Ê The committee shall not assign the same case to more than one applicant.

     4.  At least two members of the committee shall sign the applicant’s certificate of attest experience, if the members of the committee have determined that the applicant has complied with the requirements set forth in the certificate and NAC 628.066 and 628.0662. Any member of the committee who refuses to sign the form shall file a dissenting opinion with the certificate.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by R075-03, 10-28-2003)

 

      NAC 628.0666  Experience as agent of Internal Revenue Service: Maintenance of record of experience. (NRS 628.120, 628.200)  To satisfy the requirements of subsection 2 of NRS 628.200, an applicant earning work experience as an agent employed by the Internal Revenue Service shall keep a record of his or her work experience, including related work papers, for review pursuant to NAC 628.067.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 12-13-96; R075-03, 10-28-2003)

      NAC 628.0668  Experience as agent of Internal Revenue Service: Educational requirements. (NRS 628.120, 628.200)

     1.  To comply with the requirements set forth in paragraph (c) of subsection 1 of NAC 628.066, an applicant must complete at least 152 hours of credit in the following subject areas:

 

     Subject Area

    Hours of Credit

 

 

     Professional Training for Public Accountants - Level I......................................

                           24

          (Staff Training - Basic)

 

     Designing Audit Programs for Small Business Engagements..............................

                             8

     Professional Training for Public Accountants - Level II.....................................

                           24

          (Staff Training - Semi-Senior)

 

     Audits of Small Businesses: Applying Selected

          Statements on Auditing Standards (SAS)....................................................

                             8

     Financial Accounting Standards Board-Accounting

          Principles Board Review (FASB-APB)......................................................

                           16

     Professional Training for Public Accountants - Level III....................................

                           24

          (Staff Training - Beginning In-Charge)

 

     Preparing Financial Statements........................................................................

                             8

     Standards for Compilation and Review Services..............................................

                             8

     Financial Statement Disclosures.......................................................................

                           16

     Internal Control: The Auditor’s Responsibilities................................................

                             8

     Audit Risk and Materiality...............................................................................

                             8

 

     2.  The number of hours of credit designated for each subject area listed in subsection 1 is the minimum number of hours required for that subject area.

     3.  An applicant may take more than one course in any subject area.

     4.  An applicant is entitled to receive credit for any course he or she completes in the program, regardless of the title of the course, if the content of the course is within one of the subject areas listed in subsection 1.

     5.  An applicant may complete the requirements of the three levels of professional training described in subsection 1 by completing internal courses which have been previously approved by the Board as being substantially the equivalent of the three levels of professional training described in subsection 1.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A 5-18-94; 12-13-96)

      NAC 628.067  Experience as agent of Internal Revenue Service: Quality control. (NRS 628.120, 628.200)

     1.  The Board will not accept qualified audit hours earned by an applicant as an agent employed by the Internal Revenue Service unless:

     (a) An independent quality control review of the Internal Revenue Service is conducted every 3 years pursuant to a program approved by the Board.

     (b) The Internal Revenue Service establishes and maintains appropriately documented policies and procedures relating to quality control which comply with professional standards of auditing or accounting.

 

 

     2.  The Internal Revenue Service shall:

     (a) Notify the Board of each final conference of the review of the Internal Revenue Service. The Board may observe the final conference.

     (b) Submit the report of the review, letter of comments and responses thereto to the Board within 30 days after they are received by the Internal Revenue Service.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by R075-03, 10-28-2003)

      NAC 628.068  Experience in internal auditing work or governmental accounting and auditing work: Additional means of satisfying requirements. (NRS 628.120, 628.200)  An applicant for a certificate of certified public accountant who has not complied with the provisions set forth in NAC 628.061 to 628.067, inclusive, may satisfy the requirements of subsection 2 of NRS 628.200 by requesting an individual evaluation of his or her experience as provided in subsection 2 of NAC 628.060 and paying the fee set forth in paragraph (f) of subsection 3 of NAC 628.016.

     (Added to NAC by Bd. of Accountancy, eff. 7-6-92; A by R192-97, 1-30-98)

      NAC 628.070  Certificate by reciprocity or temporary permit. (NRS 628.120, 628.310, 628.440)  The Board may grant a certificate by reciprocity or a temporary permit to practice to any person who is the holder of:

     1.  A certificate as a certified public accountant then in effect issued pursuant to the laws of any state or other jurisdiction of the United States; or

     2.  An equivalent certificate then in effect issued by a foreign country pursuant to the provisions of NRS 628.310.

     [Bd. of Accountancy, Art. 1 § 3, eff. 5-13-82]—(NAC A by R169-99, 12-13-99)

      NAC 628.080  Waiver of examination; submission of proof of continuing education. (NRS 628.120, 628.310)

     1.  The examination for a certificate as a certified public accountant will not be waived for an applicant whose certificate as a certified public accountant was based in whole or in part on the entitlement of the applicant to practice public accounting in a foreign country unless the applicant has passed an equivalent examination approved by the Board.

     2.  Every applicant for a certificate as a certified public accountant who wishes to obtain a waiver of the examination must file the application upon a form provided by the Board, accompanied by the prescribed fee.

     3.  The Board may accept the scores of an applicant from the Uniform Certified Public Accountant Examination taken in another state and waive the manner in which the scores were obtained.

     4.  An applicant must submit proof that he or she has completed at least 20 hours of continuing education within 12 months before the date of filing the application for the issuance of a certificate.

     [Bd. of Accountancy, Art. 3, eff. 5-13-82]—(NAC A 2-6-87; 12-13-96; R169-99, 12-13-99; R056-05, 11-17-2005)

      NAC 628.090  Temporary permits. (NRS 628.120, 628.440)

     1.  Pursuant to the provisions of NRS 628.310, an applicant whose certificate as a certified public accountant was issued by another state or jurisdiction of the United States approved by the Board or who holds an equivalent certificate then in effect issued by a foreign country pursuant to the provisions of NRS 628.310 is eligible for the issuance of a temporary permit if the applicant passes an examination approved by the Board that is substantially equivalent to the examination for a certificate as a certified public accountant that is conducted by the Board.

     2.  An application for a temporary permit must be in the name of the firm proposing to conduct the engagement and must be executed by the proprietor, partner, member or shareholder responsible for the conduct of the engagement. The person executing the application must have completed at least 80 hours of continuing education in a qualified program during the 2 calendar years immediately preceding the commencement of the engagement.

     3.  If the applicant is a partnership, a limited-liability company or a corporation of certified public accountants, the applicant must comply with the applicable requirements of NRS 628.325 to 628.370, inclusive.

     4.  The application must specify the name of the client, the nature of the service to be provided and the anticipated duration of the engagement. A temporary permit is valid for the duration of the engagement or for 6 months, whichever is less. If the engagement is longer than 6 months, new permits must be obtained for each subsequent 6-month period or portion thereof.

     5.  An agent designated pursuant to subsection 3 of NRS 628.440 shall serve for all future engagements of the applicant until the Board is advised to the contrary by the agent or by the applicant.

     6.  Within 30 days after the expiration of a temporary permit, the applicant shall report to the Board the names of all persons present in the State and employed in the conduct of the engagement during the period of the permit and shall pay any additional fees prescribed by the Board. If reports or fees are delinquent from any prior engagement, the Board will not issue any further temporary permits to the applicant for any purpose. Delinquent reports must be accompanied by a delinquency penalty of 25 percent of the sum due for each 30-day period or part thereof during which the reports are delinquent, but a delinquency penalty must not exceed $500 per report. The Board may waive such penalties in whole or in part if there is reasonable cause. All reports made pursuant to this section are subject to audit by the Board or its representatives.

     7.  Applicants, their partners, members, shareholders, employees and affiliates, while practicing under a temporary permit, must comply with the regulations adopted by the Board which are effective during the term of the engagement.

     [Bd. of Accountancy, Art. 4, eff. 5-13-82]—(NAC A 5-18-94; 12-13-96; R169-99, 12-13-99)

      NAC 628.100  Notification of change of address. (NRS 628.120)  Every holder of a permit must notify the Board in writing within 30 days after any change in his or her mailing address.

     [Bd. of Accountancy, Art. 1 § 2, eff. 5-13-82]—(NAC A 2-6-87)

      NAC 628.110  Retired or inactive status; revocation for nonpayment of fees; reinstatement. (NRS 628.120, 628.380, 628.386)

     1.  The certificate of a certified public accountant or the registration of a public accountant who holds a live permit and is in good standing may, upon application to the Board by the holder thereof, be placed by the Board on retired or inactive status.

     2.  A certified public accountant or a registered public accountant whose certificate or registration is placed on retired status pursuant to subsection 1 must, if he or she thereafter includes any reference to his or her certification or registration on a business card, letterhead or similar document or device, include the word “retired” immediately following each such reference.

     3.  Any employment related to the financial functions of business or government, including, without limitation, the supervision of such functions, will be considered as active involvement in the accounting profession, and the holder of the certificate or registrant does not qualify for inactive status.

     4.  A former holder of a certificate or a former registrant may be reinstated into the practice of public accounting from retired or inactive status by submitting an application to the Board accompanied by the fee prescribed in NAC 628.016. The applicant must show that he or she has completed at least 40 hours of continuing education during the 12 months immediately preceding the application.

     5.  A former holder of a certificate whose certificate has been voluntarily surrendered to the Board must submit:

 

     (a) A new application for licensing accompanied by:

          (1) The application fee;

          (2) The fee for annual renewal of the permit for any year the fee was not paid before he or she surrendered the certificate; and

          (3) The penalty for late filing for any year fees were not paid before he or she surrendered the certificate as prescribed in paragraph (e) of subsection 3 of NAC 628.016; and

     (b) Proof that he or she has completed at least 40 hours of continuing education during the 12 months immediately preceding the application.

     6.  A former holder of a certificate whose certificate has been revoked for nonpayment of fees must submit:

     (a) A new application for licensing accompanied by:

          (1) The application fee;

          (2) The fee for annual renewal of the permit for any year that the fee was not paid before the certificate was revoked; and

          (3) The penalty for late filing prescribed in paragraph (e) of subsection 3 of NAC 628.016 for any year that a fee was not paid before the certificate was revoked; and

     (b) Proof that he or she has completed at least 80 hours of continuing education programs approved by the Board during the 12 months immediately preceding the filing of the new application.

     7.  For the purposes of this section:

     (a) “Inactive status” means the voluntary reversion by a holder of a certificate or a registrant to a nonprofessional status outside the fields of public, private or governmental accounting before reaching the age of retirement; and

     (b) “Retired status” means the voluntary termination by a holder of a certificate or a registrant of all activities in the profession of public or private accounting upon the attainment of at least 60 years of age or upon becoming permanently disabled and no longer gainfully employed.

     [Bd. of Accountancy, Art. 12, eff. 5-13-82]—(NAC A 2-6-87; 9-17-87; 12-13-96; R192-97, 1-30-98; R169-99, 12-13-99; R094-01, 10-17-2001)

REGISTRATION OF PUBLIC ACCOUNTANTS, PARTNERSHIPS, CORPORATIONS, LIMITED-LIABILITY COMPANIES AND OFFICES

      NAC 628.130  Applications; approval or disapproval. (NRS 628.120)

     1.  Applications for registration or any other required document or report must be filed with the Board at its office.

     2.  A corporation, limited-liability company or partnership must file with the Board an application for registration on a form furnished by the Board. The application must be accompanied by the prescribed fee.

     3.  An application for registration of a fictitious name must be filed on a form furnished by the Board. The application must be accompanied by the prescribed fee.

     4.  The Board, within a reasonable time after the submission of an application for registration, will either approve the application and issue a certificate of registration or refuse approval and notify the applicant of the reasons for refusal and the procedure for requesting a hearing on the disapproval.

     [Bd. of Accountancy, Art. 6 § 6, eff. 5-13-82]—(NAC A 2-6-87; 12-13-96; R094-01, 10-17-2001, eff. 1-1-2002)

      NAC 628.140  Name of proprietorship, partnership, limited-liability company or professional corporation. (NRS 628.120)

     1.  The name under which a proprietorship, partnership, limited-liability company or professional corporation engages in the practice of public accounting may not be misleading or deceptive.

     2.  The name of a firm is misleading or deceptive if the name of the firm:

     (a) Implies the existence of a corporation, when the firm is not a corporation, by the use of the abbreviations “P.C.,” “Ltd.” or similar abbreviations.

     (b) Implies the existence of a partnership, when the firm is not a partnership, by the use of a designation similar to “Smith & Jones” or “C.P.A.’s.”

     (c) Implies the existence of a limited-liability company, when the firm is not a limited-liability company, by the use of the abbreviations “Ltd.,” “L.L.C.,” “LLC” or “LC.”

     (d) Includes the name of a proprietor, partner, member or shareholder who has withdrawn from the firm or, in the case of a corporation, has terminated his or her employment other than by retirement from public practice or by death, without the written consent of the person who has withdrawn being first obtained by the firm and filed with the Board. The name of the proprietor, partner, member or shareholder must be removed from the name of the firm or corporation within 120 days after the withdrawal or termination.

     (e) Implies more than one principal, when there is only one shareholder, one member or one proprietor, by the use of a designation similar to “Smith & Co.,” “Smith & Assoc.” or “Smith Group.”

     (f) Contains a misrepresentation of fact.

     (g) Creates or is likely to create false or unjustified expectation of favorable results.

     (h) Includes the name of a person who is not registered as a certified public accountant in any state or other jurisdiction of the United States or a foreign country.

     3.  A fictitious name must not be formulated in such a manner that the initials or parts of the name form a term or phrase that is misleading or deceptive.

     4.  A proprietorship, partnership, limited-liability company or corporation engaged in the practice of public accounting may not render professional services using:

     (a) A name other than that which is stated in its certificate of registration; or

     (b) A fictitious name unless the fictitious name has been registered with and approved by the Board.

     [Bd. of Accountancy, Art. 6 § 1, eff. 5-13-82]—(NAC A 2-6-87; 12-13-96; R169-99, 12-13-99; R075-03, 10-28-2003)

      NAC 628.150  Affiliations of proprietorships, partnerships, limited-liability companies and corporations. (NRS 628.120)

     1.  Proprietorships, partnerships, limited-liability companies and corporations holding certificates of registration to practice as certified public accountants may affiliate with other partnerships, partnerships of partnerships, limited-liability companies or corporations for the practice of public accounting if all proprietors, partners, members or shareholders of the affiliated firms in the practice of public accounting in the United States or its territories are:

     (a) Certified public accountants in good standing in some other state or territory of the United States;

     (b) Persons who are the holders of an equivalent certificate then in effect issued by a foreign country who meet the requirements set forth in subsection 2 of NRS 628.310; or

     (c) Persons who meet the requirements set forth in subsection 5 of NRS 628.325.

     2.  Proprietorships, partnerships, limited-liability companies and corporations holding permits to practice as public accountants may affiliate with other partnerships, partnerships of partnerships, limited-liability companies or corporations for the practice of public accounting if all proprietors, partners, members or shareholders of affiliated firms regularly engaged in the practice of public accounting in this State are public accountants or certified public accountants holding a live permit in this State and all other proprietors, partners, members or shareholders of the affiliated firms in the practice of public accounting in the United States or its territories are:

     (a) Certified public accountants in good standing in some other state or territory of the United States;

 

 

     (b) Persons who are the holders of an equivalent certificate then in effect issued by a foreign country who meet the requirements set forth in subsection 2 of NRS 628.310; or

     (c) Persons who meet the requirements set forth in subsection 5 of NRS 628.325.

     [Bd. of Accountancy, Art. 6 §§ 2 & 3, eff. 5-13-82]—(NAC A 12-13-96; R169-99, 12-13-99)

      NAC 628.160  Transfer of interest in partnership, limited-liability company or corporation. (NRS 628.120)

     1.  The personal representative or estate of a practitioner who has died or become legally incompetent or a practitioner who is disqualified from practicing public accounting must sell his or her interest in a partnership, limited-liability company or corporation to the remaining owners or to the legal entity not later than 6 months after the death or incompetency of the practitioner or not later than 120 days after the practitioner becomes disqualified.

     2.  All restrictions on the ownership and transfer of the interest described in subsection 1 must be set forth in the articles of incorporation or the bylaws of the corporation or in the operating agreement or articles of organization of the limited-liability company or partnership agreement.

     [Bd. of Accountancy, Art. 6 § 4, eff. 5-13-82]—(NAC A by R169-99, 12-13-99)

      NAC 628.180  Reports of corporations, limited-liability companies and partnerships. (NRS 628.120)

     1.  A corporation, limited-liability company or partnership shall, on or before January 31 of each year, file with the Board an annual report on a form provided by the Board reflecting its status and containing such information as the Board may require.

     2.  Each corporation, limited-liability company or partnership shall file a special report within 30 days after any occurrence relating to the requirements of the law and the regulations of the Board, including changes in officers, directors, members, shareholders and amendments to bylaws and articles of incorporation.

     3.  Each report filed pursuant to this section must be accompanied by the prescribed fee, including any prescribed penalty for late filing.

     [Bd. of Accountancy, Art. 6 § 7, eff. 5-13-82]—(NAC A 2-6-87; 5-18-94; 12-13-96)

PERMIT FOR PUBLIC ACCOUNTING

      NAC 628.190  Renewal of permit. (NRS 628.120, 628.380)  Every permit, except temporary permits for nonresidents, may be renewed by payment of the prescribed renewal fee on or before January 31 of each year. After that time, a certificate holder or registrant may not lawfully practice public accounting in this State until all delinquent fees and penalties have been paid.

     [Bd. of Accountancy, Art. 5 § 1, eff. 5-13-82]

CONTINUING EDUCATION

      NAC 628.210  Prerequisites to renewal of permit; exemption; waiver. (NRS 628.120, 628.386)

     1.  Except as otherwise provided in subsection 2 and NAC 628.110, an applicant for the renewal of a permit to engage in the practice of public accounting must complete at least 80 hours of continuing education during the 2 years immediately preceding the date for renewal of the permit, of which:

     (a) At least 20 hours must be completed in each year; and

     (b) Four hours must be in professional ethics.

     2.  An applicant seeking the first annual renewal of an initial permit is exempt from the requirements of NAC 628.210 to 628.250, inclusive.

     3.  If an applicant for the renewal of a permit to engage in the practice of public accounting is permitted, certified or licensed to engage in the practice of public accounting in another state and resides in that state, the applicant must demonstrate compliance with the continuing education requirements of that state by signing a statement to that effect on his or her application to the Board for the renewal of a permit to engage in the practice of public accounting. If the state in which the applicant resides does not have continuing education requirements, the applicant must comply with the requirements set forth in this section.

     4.  The requirements of NAC 628.210 to 628.250, inclusive, may be waived by the Board for reasons of personal hardship, including, without limitation, health problems, military service, foreign residence, retirement or other good cause.

     [Bd. of Accountancy, Art. 7 §§ 2 & 3, eff. 5-13-82]—(NAC A 2-6-87; R169-99, 12-13-99; R056-05, 11-17-2005)

      NAC 628.220  Standards for qualifying programs. (NRS 628.120, 628.200, 628.386)

     1.  A program qualifies as a program of continuing education if it:

     (a) Is a formal program of learning which contributes to a growth in professional knowledge and the competence of a person engaged in the practice of public accounting; and

     (b) Meets the minimum standards of quality of development, presentation, measurement and the reporting of credits set forth in the Statement on Standards for Continuing Professional Education (CPE) Programs published by the National Association of State Boards of Accountancy, as it existed on October 17, 2001, or other educational standards which may be established by the Board.

     2.  A copy of the statement may be obtained at no cost from the National Association of State Boards of Accountancy, 150 Fourth Avenue North, Suite 700, Nashville, Tennessee 37219-2417, or on the Internet from the website of the National Association of State Boards of Accountancy at http://www.nasba.org/.

     [Bd. of Accountancy, Art. 7 part § 4, eff. 5-13-82]—(NAC A 5-18-94; 12-13-96; R169-99, 12-13-99; R094-01, 10-17-2001; R075-03, 10-28-2003)

      NAC 628.230  Acceptable programs and subjects. (NRS 628.120, 628.200, 628.386)

     1.  Qualified programs of continuing education dealing with the following general subjects are acceptable:

     (a) Accounting and auditing;

     (b) Taxation;

     (c) Management;

     (d) Computer science;

     (e) Communication arts;

     (f) Mathematics, statistics, probability and quantitative applications in business;

     (g) Economics;

     (h) Business law;

     (i) Functional fields of business, including finance, production, marketing, personnel relations, and business management and organization;

     (j) Specialized areas of industry, including the film industry, real estate and farming; and

     (k) Administrative practice, including engagement letters and personnel.

     2.  Subjects other than those listed in subsection 1 may be acceptable if the applicant can demonstrate that they contribute to his or her professional competence. The applicant is responsible for demonstrating that a particular program is acceptable.

     3.  Programs for independent study or self-study are acceptable if they are approved by the Board.

     4.  The following group programs are acceptable if they meet the standards specified in NAC 628.220 and deal with the subjects listed in subsection 1:

     (a) Professional educational and developmental programs of national, state and local accounting organizations;

     (b) Technical sessions at meetings of national, state and local accounting organizations and their chapters;

     (c) Courses offered by a university or college, credit and noncredit;

     (d) Formal educational programs of a firm;

     (e) Programs of other accounting, industrial or professional organizations;

     (f) Meetings of committees of professional societies which are structured as formal educational programs;

     (g) Dinner, luncheon and breakfast meetings which are structured as formal educational programs; and

     (h) Meetings of firms for staff groups or management groups, or both, which are structured as formal educational programs. The portions of these meetings which are devoted to the communication and application of general professional policy or procedure may qualify, but those portions which are devoted to administrative, financial and operating matters of firms generally do not qualify.

     [Bd. of Accountancy, Art. 7 part § 4, eff. 5-13-82]—(NAC A 12-13-96; R075-03, 10-28-2003)

      NAC 628.240  Determination and allowance of credit. (NRS 628.120, 628.200, 628.386)

     1.  For the purposes of continuing education, 50 minutes of instruction equals one credit of continuing education. Credit for continuing education may be earned in increments of less than one credit, if at least one credit is earned for the same subject.

     2.  Each semester hour of credit given for a college course equals 15 hours. A quarter hour of credit equals 10 hours.

     3.  The amount of credit allowed for correspondence programs and formal programs for independent study or self-study, including taped programs, will be that amount which is recommended by the sponsor of the program. Applicants claiming credit for correspondence programs or formal programs for independent study or self-study must obtain evidence of satisfactory completion of the course from the sponsor of the program. Credit is allowed for the period of renewal in which the course is completed.

     4.  The amount of credit for continuing education allowed for independent study will be the amount which is recommended by the sponsor of the program.

     5.  The Board may allow credit for continuing education for the publication of an article or book written by a practitioner if:

     (a) A written evaluation of the article or book is prepared by a person designated by the Board and submitted to the Board for its review; and

     (b) After a review of the evaluation, the Board determines that the article or book contributes to the professional knowledge and competence of the practitioner.

     6.  Applicants who have served as instructors, leaders of discussions or speakers at qualified programs may claim credit for continuing education for time spent on both preparation and presentation. Credit claimed for preparation may not exceed two times the number of hours of the presentation. Credit for teaching a course may not be claimed more than once in any consecutive 12 months without the prior approval of the Board. Approval will only be granted if the Board determines that the content of the course has been substantially altered during that period.

     [Bd. of Accountancy, Art. 7 part § 4, eff. 5-13-82]—(NAC A 2-6-87; 5-18-94; R075-03, 10-28-2003)

      NAC 628.250  Application for renewal of permit; maintenance of records; action by Board. (NRS 628.120, 628.380, 628.386)

     1.  An applicant for the renewal of a permit to practice issued pursuant to NRS 628.380 must list on the application the number of hours of continuing education completed by the applicant during the previous calendar year. The applicant shall maintain a record of the classes of continuing education completed by the applicant for 4 years after the applicant files the application. The application must include, without limitation:

     (a) The name of the sponsoring organization;

     (b) The location of the program;

     (c) The title of the program or a description of its content;

     (d) The dates attended; and

     (e) The number of hours of credit claimed by the applicant.

     2.  In addition to the record required to be maintained pursuant to subsection 1, the applicant is responsible for documenting the acceptability of the program and the validity of the credits. The documentation must be retained for 4 years after the applicant files an application for the renewal of a permit to practice issued pursuant to NRS 628.380. The documentation must consist of one of the following:

     (a) A certificate of completion.

     (b) A copy of the outline of the course prepared by the sponsor of the course along with the information required by subsection 1.

     (c) For courses taken for academic credit at accredited universities and colleges, evidence of the satisfactory completion of the course. For noncredit courses, a statement of the hours of attendance signed by the instructor.

     (d) For formal programs for independent study or self-study, written evidence of completion.

     (e) Any other documentation acceptable to the Board.

     3.  The Board will verify information submitted by an applicant for a permit on the basis of a test. If the Board determines that the requirement for continuing education has not been met, the Board may grant additional time for the deficiencies to be corrected.

     [Bd. of Accountancy, Art. 7 § 5, eff. 5-13-82]—(NAC A 5-18-94; 12-13-96; R075-03, 10-28-2003; R056-05, 11-17-2005)

DISCIPLINARY ACTION

      NAC 628.430  Complaints issued by Board; notice of hearing; examination of documents. (NRS 628.120, 628.410)

     1.  A complaint issued by the Board will include:

     (a) A short and plain statement of the matters which are asserted or charged; and

     (b) References to any particular sections of chapter 628 of NRS, the rules of professional conduct or the regulations of the Board which are asserted to have been involved in the complaint.

     2.  A notice served pursuant to NRS 628.410 will be accompanied by:

     (a) A copy of this regulation;

     (b) A copy of chapter 628 of NRS; and

     (c) A brief statement of the rights of the respondent to examine reports and evidence in advance of the hearing, to appear with counsel at the hearing, to present evidence and to appeal an adverse decision.

     3.  A respondent has the right in advance of the hearing to examine and copy any report of an investigation and documentary or testimonial evidence and summaries of evidence in the Board’s possession relating to the subject of the complaint. The right of examination may be exercised by the respondent or his or her attorney or agent at the Board’s office where the records are kept, during regular business hours, if written notice is given 3 days in advance. Copies of any documents designated for copying will be promptly furnished. The Board may charge a fee for the copying.

     [Bd. of Accountancy, Art. 9 §§ 1-3, eff. 5-13-82)—(Substituted in revision for NAC 628.260)

      NAC 628.440  Conduct of hearing. (NRS 628.120, 628.410)

     1.  A hearing on a complaint will be conducted by the Board or a member of the Board appointed by the Board to serve as hearing officer.

 

 

     2.  The order of the proceedings is as follows:

     (a) Statements and evidence supporting the complaint may be presented by the investigating officer, if any, by a member of the Board designated for this purpose or by counsel.

     (b) Statements and evidence may be presented by the respondent, or in the case of a firm through a partner, officer, director, member or shareholder, or by counsel, or by both.

     (c) Rebuttal evidence in support of the complaint may be presented.

     (d) Surrebuttal evidence of the respondent may be presented.

     (e) Closing statements may be made.

     (f) If the proceeding is conducted by a member of the Board appointed by the Board to serve as hearing officer, the hearing officer shall present his or her findings and recommendations to the Board.

     (g) The decision of the Board will be rendered.

     3.  The hearing officer, members of the Board, the respondent and the person presenting the complaint may question, examine or cross-examine any witness.

     4.  The burden of presenting evidence to support a fact or position rests on the proponent of that fact or position.

     5.  The hearing may be continued with recesses as determined by the Board or the hearing officer.

     6.  The Board or the hearing officer may set reasonable time limits for oral presentation.

     7.  Exhibits must be marked and preserved along with the stenographic transcript as part of the record of the hearing.

     [Bd. of Accountancy, Art. 9 § 4, eff. 5-13-82]—(NAC A 2-6-87; 12-13-96)

      NAC 628.450  Publication of decisions. (NRS 628.120, 628.390)  Decisions of the Board following hearings will, if they sustain any charge, be made public. Decisions that do not sustain a charge will not be made public, unless the respondent requests that this be done or the Board determines that the pendency of the charges was the subject of substantial publicity.

     [Bd. of Accountancy, Art. 9 § 6, eff. 5-13-82]—(Substituted in revision for NAC 628.280)

UNLAWFUL PRACTICE

      NAC 628.460  Certificate and permit required. (NRS 628.120)

     1.  A person may not perform or offer to perform tax or management services while holding oneself out to be a certified public accountant or a public accountant if the person doesn’t hold a current certificate and a live permit.

     2.  For the purposes of this section, a person is considered to “hold himself or herself out” as engaged in the practice of public accounting if the person represents to persons other than his or her employer or an affiliate, but for whom the person or the employer is performing or offering to perform services described in NRS 628.023, that he or she is a public accountant or certified public accountant. Such representation occurs with any written or verbal communication which represents the person to be a certified public accountant, public accountant or other similar title commonly understood to express expertise in accounting and auditing. The display in a place where services are performed by a person for others than himself or herself or his or her employer of a sign, certificate, diploma or other device whereby the public may reasonably conclude that the person is qualified and currently entitled to practice public accounting, when such person does not hold a live permit, constitutes holding oneself out as engaged in the practice of public accounting.

     [Bd. of Accountancy, Art. 11, eff. 5-13-82]—(NAC A 2-6-87)—(Substituted in revision for NAC 628.300)

 

 

STANDARDS OF PRACTICE

      NAC 628.500  Adoption by reference of Code of Professional Conduct; exceptions. (NRS 628.120, 628.160)

     1.  The Board hereby adopts by reference the Code of Professional Conduct adopted by the American Institute of Certified Public Accountants, as that code existed on June 1, 2003, with the following exceptions:

     (a) References to “member” are amended to refer to “practitioner.”

     (b) The definition of “financial statements” in ET Section 92 is amended to read as follows:

          (1) “Financial statements” means:

               (I) Any statements or footnotes related thereto that purport to demonstrate the financial condition of a person at a particular time or the change in a person’s financial condition during a particular period; or

               (II) Any statements prepared using a cash or other comprehensive basis of accounting.

          (2) The term includes balance sheets, statements of income, statements of retained earnings, statements of cash flows and statements of changes in equity.

          (3) The term does not include incidental financial data that is included in reports concerning advisory services for management made to support recommendations to a client, tax returns or schedules in support of a tax return, or the statement, affidavit or signature of the person who prepares a tax return.

     (c) The definition of “practice of public accounting” in ET Section 92 is amended to have the meaning ascribed to it in NRS 628.023.

     (d) The disclosure required pursuant to Section B of Rule 503 must:

          (1) Include the amount of the commission expressed in dollars or the method, described in plain language, used to calculate the commission;

          (2) Include the name of the person or entity paying the commission;

          (3) Be written;

          (4) Be made on or before the date of referral or recommendation; and

          (5) Be signed and dated.

     (e) The statement, affidavit or signature of the preparer of a tax return does not constitute an opinion on a financial statement, and the preparer of the tax return is not required to make a disclaimer of such an opinion.

     (f) The Board does not adopt by reference pursuant to this section Appendix B of the ET Appendixes of the Code of Professional Conduct.

     2.  A copy of the Code of Professional Conduct may be obtained:

     (a) By mail from the American Institute of Certified Public Accountants, Attn: Order Department, Harborside Financial Center, 201 Plaza Three, Jersey City, New Jersey 07311, at a cost of $13.75 for a printed copy; or

     (b) On-line from the American Institute of Certified Public Accountants at its website at http://www.aicpa.org/about/code/index.html, free of charge.

     (Added to NAC by Bd. of Accountancy, eff. 12-13-96; A by R169-99, 12-13-99; R094-01, 10-17-2001; R056-05, 11-17-2005)

      NAC 628.510  Applicability. (NRS 628.120, 628.160)

     1.  The provisions of this section and the provisions adopted by reference pursuant to NAC 628.500 apply to all persons who are engaged in the practice of public accounting in this State.

     2.  The provisions of this section and the provisions adopted by reference pursuant to NAC 628.500 do not apply to a practitioner who engages in the practice of public accounting outside this State unless the practitioner’s name is included in a financial statement and the manner in which the statement is written would cause a reasonable person to believe that the statement was prepared pursuant to the laws of this State.

 

 

     3.  A practitioner may be held responsible for compliance with the provisions of this section and the provisions adopted by reference pursuant to NAC 628.500 by all persons associated with him or her in the practice of public accounting who are under the practitioner’s supervision or are the partners or shareholders of the practitioner.

     4.  A practitioner shall not permit another person to perform on his or her behalf, with or without compensation, actions which, if performed by the practitioner, would result in a violation of any of the provisions adopted by reference pursuant to NAC 628.500.

     (Added to NAC by Bd. of Accountancy, eff. 12-13-96)

      NAC 628.520  Reporting of certain occurrences to Board. (NRS 628.120, 628.160, 628.386)  A practitioner shall report to the Board, on a form prescribed by the Board, not more than 45 days after:

     1.  The practitioner receives an adverse peer review or inspection report.

     2.  The practitioner receives the second of two consecutive modified peer reviews or inspection reports.

     3.  The decision against the practitioner for the imposition of a disciplinary action, including, without limitation, a censure, a reprimand, a sanction, probation, a civil penalty, a fine, a consent decree or an order for the suspension, revocation or modification of a license, certificate, permit or right to practice by:

     (a) The Securities and Exchange Commission;

     (b) The Internal Revenue Service;

     (c) Any agency of another state authorized to regulate the practice of accountancy in that state for any cause except:

          (1) The failure to pay by the date due a fee for a license, certificate, permit or right to practice; or

          (2) The failure to comply with a requirement for continuing education;

     (d) Any other federal or state agency for conduct of the practitioner relating to the provision of professional services; or

     (e) Any agency of this State, another state or territory, or any agency of the Federal Government authorized to regulate taxes, insurance or securities.

     4.  Except as otherwise provided in this subsection, any award or judgment of $150,000 or more against the practitioner for a claim of or action for gross negligence, violation of a specific standard of practice, fraud or misappropriation of money in the practice of accounting. If the practitioner is a firm of certified public accountants, the practitioner shall notify the Board, pursuant to this subsection, only of an award or judgment involving the practice of public accounting in this State.

     5.  The practitioner is charged with, is convicted of or pleads nolo contendere to, or has an order of deferred prosecution entered in a case involving the practitioner for:

     (a) A felony under the laws of any state or of the United States; or

     (b) A crime, an element of which is dishonesty or fraud, under the laws of any state or of the United States.

     (Added to NAC by Bd. of Accountancy by R056-05, eff. 11-17-2005)

PROGRAM TO MONITOR QUALITY OF FINANCIAL REPORTING

      NAC 628.550  Definitions. (NRS 628.120, 628.160, 628.386)  As used in NAC 628.550 to 628.590, inclusive, unless the context otherwise requires, the words and terms defined in NAC 628.555 to 628.570, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

 

      NAC 628.555  “Evaluation” defined. (NRS 628.120, 628.160, 628.386)  “Evaluation” means the process conducted pursuant to the practice-monitoring program established pursuant to NAC 628.550 to 628.590, inclusive, to ensure that a practitioner complies with the Code of Professional Conduct adopted by reference pursuant to NAC 628.500.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

      NAC 628.560  “Practice-monitoring findings” defined. (NRS 628.120, 628.160, 628.386)  “Practice-monitoring findings” means the determinations and reports developed as the result of an evaluation of a practitioner conducted pursuant to a practice-monitoring program, including, without limitation:

     1.  A peer review report;

     2.  A letter of comment;

     3.  A letter of response;

     4.  A letter of acceptance; and

     5.  Any other report or determination developed as a result of the evaluation of a practitioner conducted pursuant to a practice-monitoring program.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

      NAC 628.565  “Practice-monitoring program” defined. (NRS 628.120, 628.160, 628.386)  “Practice-monitoring program” means a program to monitor the quality of financial reporting of a practitioner conducted pursuant to NAC 628.550 to 628.590, inclusive.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

      NAC 628.570  “Transmittal form” defined. (NRS 628.120, 628.160, 628.386)  “Transmittal form” means the document distributed by the Board to be used in submitting reports for evaluation or to advise the Board that no reports were issued by the practitioner in the previous year.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

      NAC 628.575  Cycle for review of reports; notification of practitioners. (NRS 628.120, 628.160, 628.386)

     1.  The Board will review the reports submitted by practitioners pursuant to NAC 628.550 to 628.590, inclusive, to determine whether the practitioners have complied with applicable standards of reporting on a 3-year cycle and will assign one-third of the practitioners in this State to each year of the cycle.

     2.  During the month of April of each calendar year, the Board will notify each practitioner who is required for that year to submit to the Board a copy of the practice-monitoring findings or a transmittal form indicating that no audit, review, full disclosure compilation or attestation reports were issued by the practitioner in the previous year.

     3.  The 3-year cycle established pursuant to this section does not affect the requirements for the annual renewal of office registrations or permits contained in NRS 628.370 and 628.380.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

      NAC 628.580  Participation in program; submission and verification of practice-monitoring findings; exempt practitioners. (NRS 628.120, 628.160, 628.386)

     1.  Except as otherwise provided in subsections 4 and 5, a practitioner who performs audit, review, full disclosure compilation or attestation services shall engage in a practice-monitoring program, which is approved by the Board, to ensure that he or she is maintaining the standards of the profession.

     2.  If a practitioner engages in a practice-monitoring program, the practitioner shall submit to the Board the practice-monitoring findings of the practice-monitoring program on or before May 1 of each year in which he or she is assigned to submit the practice-monitoring findings pursuant to NAC 628.575. The Board may extend the deadline for the submission of practice-monitoring findings to the Board by a practitioner.

     3.  The Board may verify the validity of the practice-monitoring findings submitted by the practitioner.

     4.  A practitioner who does not perform audit, review, full disclosure compilation or attestation services shall report these facts to the Board on a transmittal form. The form must be accompanied by an affirmation by the practitioner that the statements contained in the form are true. The practitioner is exempt from the requirements of NAC 628.550 to 628.590, inclusive, only for that period during which the practitioner does not perform audit, review, full disclosure compilation or attestation services. If a practitioner who is exempt from engaging in a practice-monitoring program pursuant to this subsection enters into an engagement to perform audit, review, full disclosure compilation or attestation services, the practitioner must notify the Board not more than 60 days after the date of entering into such engagement and must engage in a practice-monitoring program not more than 18 months after the date upon which he or she enters into the engagement.

     5.  A practitioner licensed by the Board for the first time is not required to submit practice-monitoring findings to the Board until the application for the renewal of his or her annual permit is submitted for the next year.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

      NAC 628.585  Deficient or marginal practice-monitoring findings; refusal to comply with practice-monitoring findings. (NRS 628.120, 628.160, 628.386)

     1.  If the Board determines that the practice-monitoring findings submitted by a practitioner are deficient or marginal with respect to any applicable professional standard, the Board may require the practitioner to:

     (a) Correct any deficiency within a specific period;

     (b) Provide a plan to ensure that a similar occurrence will not occur;

     (c) Submit to the Board practice-monitoring findings more frequently than the practitioner was scheduled to submit such findings to the Board;

     (d) Complete successfully continuing education that is specified by the Board;

     (e) Maintain a library of reference material; or

     (f) Submit to the Board, or its designated representative, the reports developed as a result of the practitioner’s engaging in audit, review, full disclosure compilation or attestation services, for review by the Board at the expense of the practitioner, before such reports are provided to the clients of the practitioner.

     2.  If a practitioner refuses to comply with the practice-monitoring findings, the Board may initiate disciplinary action against the practitioner pursuant to NRS 628.390.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)

     NAC 628.590  Confidentiality; destruction of documentation. (NRS 628.120, 628.160, 628.386)

     1.  Any practice-monitoring finding or other documentation submitted to the Board pursuant to NAC 628.550 to 628.590, inclusive, is confidential.

     2.  All documentation submitted to the Board pursuant to NAC 628.550 to 628.590, inclusive, must be destroyed when the process of review is complete.

     3.  Any action taken by the Board pursuant to NAC 628.550 to 628.590, inclusive, which does not result in the Board’s initiating disciplinary action against a practitioner pursuant to NRS 628.390 is confidential.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008)