37-50-330. Compliance with ownership requirements -- firm registration. - Montana Statutes

     37-50-330. Compliance with ownership requirements -- firm registration. (1) A firm composed of certified public accountants or a firm composed of public accountants that is or plans to become engaged in the practice of public accounting may include persons who are not licensed as public accountants or certified as certified public accountants if:
     (a) the firm designates an accountant who is licensed or certified in this state or, in the case of a firm that must be registered pursuant to 37-50-335, a licensee of another state who meets the requirements set out in 37-50-325(1) or (2) to be responsible for the proper registration of the firm;
     (b) a simple majority of ownership in the firm, in terms of equity and voting rights, is held by accountants who are licensed or certified accountants in this state or in another substantially equivalent jurisdiction or meet the requirements of 37-50-325(2);
     (c) all persons with an ownership interest in the firm are individuals actively participating in the business of the firm or its affiliated entities; and
     (d) any person with an ownership interest in the firm who is not licensed or certified as an accountant and who holds a professional license, registration, or certification issued by this state or another jurisdiction is in compliance with the requirements for that license, registration, or certification.
     (2) An accountant licensed or certified in this state or a person qualifying for practice privileges under 37-50-325 who holds an ownership interest in a firm, who is responsible for supervising attest or compilation services, and who signs or authorizes someone to sign the accountant's report on the financial statements on behalf of the firm is responsible for all attest or compilation services.
     (3) A person licensed or certified in this state and a person qualifying for practice privileges under 37-50-325 who signs or authorizes someone to sign the accountant's report on the financial statements on behalf of the firm must meet the competency requirements of 37-50-203(2)(a).
     (4) (a) A firm that is no longer in compliance with the ownership requirements of subsection (1)(b) shall give notice to the board within 90 days of the noncompliance.
     (b) The board shall grant the firm a reasonable amount of time to reestablish compliance with the ownership requirements of subsection (1)(b). The time granted by the board to a firm to reestablish compliance may not be less than 90 days from the date the board receives the firm's notice of noncompliance.
     (c) The failure of a firm to reestablish compliance with the ownership requirements of subsection (1)(b) is grounds for the board to suspend or revoke the firm's registration required by 37-50-335.

     History: En. Sec. 1, Ch. 123, L. 2001; amd. Sec. 46, Ch. 109, L. 2009.