[Rev. 8/17/2015 10:33:01 AM]

[NAC-628 Revised Date: 8-15]

CHAPTER 628 - ACCOUNTANTS

GENERAL PROVISIONS

628.010            Definitions.

628.015            Committees of Board.

628.016            Fees of Board.

CERTIFICATION

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: Passing grades; conditional credit; extension of time due to personal hardship.

628.055            Requirements for education.

628.060            Requirements for experience: General requirements; evaluation by Board; recordkeeping requirements.

628.070            Certificate by reciprocity.

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

628.100            Notification of change of address, electronic mail address, telephone number or other contact information.

628.110            Retired or inactive status; reinstatement; application after voluntary surrender or revocation.

REGISTRATION OF FIRMS

628.130            Applications; approval or disapproval.

628.140            Name of firm.

628.150            Affiliations of firms.

628.160            Transfer of interest in firm.

628.180            Reports of firm.

628.190            Renewal of permit and registration.

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.  “Firm” means any partnership, corporation, limited-liability company or sole proprietorship.

     3.  “Practice privileges” means the privileges granted a natural person in accordance with the provisions of NRS 628.315.

     4.  “Practitioner” means:

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

     (b) A certified public accountant who does not hold a live permit and does not have a registered office or residence in this State, but has been granted practice privileges pursuant to NRS 628.315 or 628.335; or

     (c) A firm of certified public accountants that does not have an office in this State, but is registered with the Board pursuant to NRS 628.335.

     [Bd. of Accountancy, Art. 1 § 1, eff. 5-13-82]—(NAC A 12-13-96; R046-13, 12-23-2013)

      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)

     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 $100.

 

     (b) For an application for registration of a firm, the Board will establish each year a fee that will not exceed.....................................................................................

                $250

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

     (a) For filing an annual report for a firm, the Board will establish each year a fee that will not exceed.....................................................................................................

                $200

     (b) For the late filing of an annual report of a firm, the Board will establish each year a fee that will not exceed.....................................................................................

                $200

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

                $250

     (d) For the late filing of the annual renewal of a permit to practice public accounting, after January 31 of each year, the Board will establish each year a fee that will not exceed.....................................................................................................

                $200

     (e) For an individual evaluation of experience pursuant to subsection 5 of NAC 628.060, in addition to any reasonable costs of travel actually incurred by the Board and imposed pursuant to subsection 6 of NAC 628.060..................................

             $1,000

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

                $100

     (g) For the late completion of continuing education requirements, an administrative fine in the following amounts:

          (1) If completed 1 calendar month late.............................................................

                $100

          (2) If completed 2 to 3 calendar months late....................................................

                $350

          (3) If completed 4 to 5 calendar months late....................................................

                $850

          (4) If completed 6 to 7 calendar months late....................................................

             $1,600

     (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.

     (i) The Board will charge a fee of 50 cents per page, up to 100 pages, for providing a copy of a public record to a requester pursuant to NRS 239.052. For a public records request that exceeds 100 pages, the Board may use a bulk copy center for copying the public record. If the Board uses a bulk copying center to copy a public record, the Board may charge a fee that must not exceed the actual cost to the Board to provide the copy of the public record. The copy of the requested public record may be provided electronically as deemed appropriate by the Board.

     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; R031-13, 10-23-2013; R046-13, 12-23-2013)—(Substituted in revision for NAC 628.120)

CERTIFICATION

      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 that indicate all required education has been completed, 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 provided 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; R046-13, 12-23-2013)

      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 or an examination approved by the Board pursuant to NRS 628.230.

     2.  In addition to the examination described in subsection 1, 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; R046-13, 12-23-2013)

      NAC 628.040  Examinations: Passing grades; conditional credit; extension of time due to personal hardship. (NRS 628.120, 628.230)

     1.  The passing grade for each section of the examination is 75.

     2.  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.  At the discretion of the Board, an extension of time to complete the examination may be granted to an applicant who has demonstrated personal hardship and is unable to complete the examination in the required time frame.

     [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; R046-13, 12-23-2013)

      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: General requirements; evaluation by Board; recordkeeping requirements. (NRS 628.120, 628.200)

     1.  The requirement of experience must be satisfied by an applicant for a certificate of certified public accountant as set forth in paragraph (a) or (b) of subsection 2 of NRS 628.200.

     2.  To satisfy the requirement of paragraph (a) of subsection 2 of NRS 628.200, the experience of an applicant must consist of one, but not a combination of some portion of each, of the following:

     (a) Two years of public accounting experience in a partnership, corporation, limited-liability company or sole proprietorship engaged in the practice of public accounting which includes using skills in accounting or auditing, finance, and advising or consulting with clients on matters relating to management or the preparation of tax returns or the furnishing of advice on matters relating to taxes.

     (b) Four years of experience in internal auditing work or governmental accounting and auditing work of a character, extent and nature sufficient in the opinion of the Board to be substantially equivalent to 2 years of experience in the practice of public accounting.

     3.  To satisfy the requirement for experience, all work must have been performed in accordance with all applicable professional standards.

     4.  An applicant must complete and submit a form for the verification of experience to the Board as proof of his or her experience. The form must be signed, under penalty of perjury, by one or more certified public accountants who supervised, or have sufficient knowledge of, the applicant’s work and can certify the character, extent and nature of that work.

     5.  An applicant who has obtained the experience which the applicant believes may satisfy the requirement described in paragraph (b) of subsection 2 but is unable to provide the verification of experience required by subsection 4 may request an individual evaluation by the Board of the character, extent and nature of his or her experience to determine whether the experience satisfies the requirement of paragraph (b) of subsection 2 of NRS 628.200.

     6.  An applicant who has requested an individual evaluation pursuant to subsection 5 must pay an additional fee as provided in paragraph (e) of subsection 3 of NAC 628.016 for the evaluation by the Board of the character, extent and nature of the applicant’s experience. 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.

     7.  The applicant shall maintain, for 3 years after obtaining a certificate of certified public accountant, the records and supporting documentation of the applicant’s experience for inspection and review by the Board.

     8.  A certified public accountant who signs an applicant’s form for the verification of experience pursuant to subsection 4 shall maintain, for 3 years after signing the form, any records and supporting documentation of the experience of the applicant for inspection and review by the Board.

     [Bd. of Accountancy, Art. 10, eff. 5-13-82]—(NAC A 2-6-87; 7-6-92; 5-18-94; 12-13-96; R031-13, 10-23-2013)

      NAC 628.070  Certificate by reciprocity. (NRS 628.120, 628.310)  The Board may grant a certificate by reciprocity 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; R046-13, 12-23-2013)

      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.  The Board may accept the scores of an applicant from the Uniform Certified Public Accountant Examination or any other examination approved by the Board taken in another state and waive the manner in which the scores were obtained.

     3.  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; R046-13, 12-23-2013)

      NAC 628.100  Notification of change of address, electronic mail address, telephone number or other contact information. (NRS 628.120)  Every holder of a permit and every firm registered with the Board must notify the Board in writing within 30 days after any change in his or her mailing address, electronic mail address, telephone number or any other contact information on file with the Board.

     [Bd. of Accountancy, Art. 1 § 2, eff. 5-13-82]—(NAC A 2-6-87; R046-13, 12-23-2013)

      NAC 628.110  Retired or inactive status; reinstatement; application after voluntary surrender or revocation. (NRS 628.120, 628.380, 628.386)

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

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

     3.  Any of the following activities will be considered as active involvement in the accounting profession, and the holder of the certificate will not qualify for retired or inactive status:

     (a) Any employment related to the financial functions of any business, governmental entity or nonprofit organization;

     (b) Any supervision of the financial functions of any business, governmental entity or nonprofit organization;

     (c) Any preparation of tax returns or schedules in support of a tax return for compensation except when prepared for family members;

     (d) Any volunteer position related to the financial functions of an entity, except financial oversight required by law in a fiduciary capacity for the volunteer position; or

     (e) Any work as a trustee that includes the preparation of financial information for the trust except for a family trust.

     4.  A former holder of a certificate 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, including 4 hours of continuing education relating to ethics, 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 (d) 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 or, in lieu of receiving disciplinary action, 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 that the fee was not paid before the certificate was revoked or surrendered; and

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

     (b) Proof that he or she has completed at least 80 hours of continuing education, including 8 hours of continuing education relating to ethics, during the 12 months immediately preceding the filing of the new application; and

     (c) Evidence that any outstanding issues that are related to disciplinary action which caused the revocation or voluntary surrender have been addressed to the satisfaction of the Board.

     7.  For the purposes of this section:

     (a) “Inactive status” means the voluntary termination by a holder of a certificate of all activities in the fields of public, private or governmental accounting before reaching the age of retirement.

     (b) “Retired status” means the voluntary termination by a holder of a certificate of all activities in the profession of public, private or governmental 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; R046-13, 12-23-2013)

REGISTRATION OF FIRMS

      NAC 628.130  Applications; approval or disapproval. (NRS 628.120, 628.335, 628.375, 628.380)

     1.  A firm must file with the Board an application for registration as provided in NRS 628.335. The application must be accompanied by the prescribed fee.

     2.  Before a certified public accountant, or a firm composed of certified public accountants with an office in this State, engages in the practice of public accounting in this State under a fictitious name, the certified public accountant or firm must first obtain the approval of the Board. An application for registration of a fictitious name must be filed with the Board. The application must be accompanied by the prescribed fee in accordance with NAC 628.016.

     3.  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; R046-13, 12-23-2013)

      NAC 628.140  Name of firm. (NRS 628.120, 628.375)

     1.  The name under which a firm 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, without the written consent of the person first being obtained by the firm and filed with the Board, who has:

          (1) Withdrawn from the firm; or

          (2) Terminated his or her employment other than by retirement from public practice, Board-approved inactive status or by death. The name of the proprietor, partner, member or shareholder must be removed from the name of the firm 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 firm 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:

          (1) The fictitious name has been registered with and approved by the Board; or

          (2) The firm is performing services under practice privileges granted pursuant to NRS 628.315 or 628.335 and the fictitious name is approved by the state in which the firm’s principal place of business is located.

     [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; R046-13, 12-23-2013)

      NAC 628.150  Affiliations of firms. (NRS 628.120)

     1.  Firms 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 sole 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.  Firms 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 sole 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; R046-13, 12-23-2013)

      NAC 628.160  Transfer of interest in firm. (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 firm 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.

     3.  Each practitioner shall designate a partner, personal representative or other responsible party to assume responsibility for client files in the case of incapacity, disappearance or death of the practitioner.

     4.  In the event that a practitioner is incapacitated, disappears or dies, and no responsible party is known to exist, the Board may petition the court for an order appointing one or more practitioners to make an inventory of the files and to take actions, as appropriate, to protect the interests of the clients. The order of appointment must be public.

     5.  An appointed practitioner shall:

     (a) Take custody of the practitioner’s files and trust or escrow accounts.

     (b) Notify each client of the practitioner in a pending matter and, in the discretion of the appointed practitioner, notify any other client of the practitioner, by first-class mail to the address of the client that is on file with the appointed practitioner of:

          (1) Any right of the client to obtain any papers, money or other property to which the client is entitled;

          (2) The time and place at which the papers, money or other property may be obtained; and

          (3) Any deadline by which the papers, money or other property must be obtained.

     (c) Publish in a newspaper of general circulation in the county or counties in which the practitioner resided or engaged in any substantial practice of accounting, once a week for 3 successive weeks, notice of the discontinuance or interruption of the practitioner’s practice. The notice must include:

          (1) The name and address of the practitioner whose practice has been discontinued or interrupted;

          (2) The time, date and location where a client may pick up his or her file; and

          (3) The name, address and telephone number of the appointed practitioner.

     (d) Release to each client the papers, money or other property to which the client is entitled.

     (e) With the consent of the client, file notices or petitions on behalf of the client in tax or probate matters where notices or petitions are required to be filed by a certain date and other representation has not yet been obtained.

     (f) Perform any other acts directed in the order of appointment issued pursuant to subsection 4.

     6.  The notice required by paragraph (c) of subsection 5 must be mailed, by first-class mail, to any insurer covering liability for errors or omissions or any other entity having reason to be informed of the discontinuance or interruption of the practitioner’s practice.

     [Bd. of Accountancy, Art. 6 § 4, eff. 5-13-82]—(NAC A by R169-99, 12-13-99; R046-13, 12-23-2013)

      NAC 628.180  Reports of firm. (NRS 628.120)

     1.  A firm registered pursuant to NRS 628.335 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 firm shall notify the Board 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, proprietors and amendments to bylaws and articles of incorporation.

     [Bd. of Accountancy, Art. 6 § 7, eff. 5-13-82]—(NAC A 2-6-87; 5-18-94; 12-13-96; R046-13, 12-23-2013)

      NAC 628.190  Renewal of permit and registration. (NRS 628.120, 628.380)  Every permit and registration must be renewed by payment of the prescribed renewal fee on or before January 31 of each year. After that time, a certificate holder or firm 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]—(NAC A by R046-13, 12-23-2013)

CONTINUING EDUCATION

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

     1.  Except as otherwise provided in subsection 3 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;

     (b) Four hours must be in professional ethics; and

     (c) Eight hours must be in courses that focus on accounting and auditing in each year in which the applicant participated in any audit, review, full disclosure compilation or attestation services.

     2.  In addition to the requirements set forth in subsection 1, an applicant for the renewal of a permit to engage in the practice of public accounting must be in compliance with the requirements for continuing education established by applicable professional standards.

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

     4.  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.

     5.  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; R031-13, 10-23-2013)

      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 most current version of the Statement on Standards for Continuing Professional Education (CPE) Programs published jointly by the American Institute of CPAs and the National Association of State Boards of Accountancy, which is hereby adopted by reference, 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 its Internet website at www.learningmarket.org.

     3.  The Board will periodically review the standards adopted in this section and determine within 30 days after the review whether any change made to the standards is appropriate for application in this State. If the Board does not disapprove a change to the standards within 30 days after the review, the change is deemed to be approved by the Board.

     [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; R031-13, 10-23-2013)

      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 engage in the practice of public accounting 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 3 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 3 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; R031-13, 10-23-2013)

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 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; and

     (b) Notice that a copy of this chapter and chapter 628 of NRS may be obtained at the Internet addresses http://www.leg.state.nv.us/nac and http://www.leg.state.nv.us/nrs, respectively.

     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]—(NAC A by R046-13, 12-23-2013)—(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 October 23, 2013, 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 “public practice” in ET Section 92 is amended to have the meaning ascribed to the definition of “practice of public accounting” 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; or

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

     3.  The Board will periodically review the standards adopted by reference in this section and determine within 30 days after the review whether any change made to the standards is appropriate for application in this State. If the Board does not disapprove a change to the standards within 30 days after the review, the change is deemed to be approved by the Board.

     (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; R046-13, 12-23-2013)

      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 or under practice privileges granted pursuant to NRS 628.315 or 628.335.

     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; A by R046-13, 12-23-2013)

      NAC 628.520  Reporting of certain occurrences to Board. (NRS 628.120, 628.160, 628.386)  A practitioner or firm shall report to the Board not more than 30 days after:

     1.  The practitioner or firm receives a peer review or inspection report with identified deficiencies.

     2.  The decision against the practitioner or firm 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 or firm 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.

     3.  Except as otherwise provided in this subsection, any settlement, award or judgment of $150,000 or more against the practitioner or firm 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, of any settlement, award or judgment involving the practice of public accounting in this State.

     4.  The practitioner or firm 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 or firm 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, or any crime involving moral turpitude, under the laws of any state or of the United States or any foreign country.

     (Added to NAC by Bd. of Accountancy by R056-05, eff. 11-17-2005; A by R046-13, 12-23-2013)

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 who hold a live permit or current certificate in this State to each year of the cycle.

     2.  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; A by R046-13, 12-23-2013)

      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 subsection 4, 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 during the 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.

     (Added to NAC by Bd. of Accountancy by R056-05, 11-17-2005, eff. 1-1-2008; A by R046-13, 12-23-2013)

      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)