A. The limited reciprocity privilege may be exercised by an individual who is not a resident of this state and who meets the requirements of this section.

Terms Used In Arizona Laws 32-725

  • Accredited institution: means any public or private regionally or nationally accredited college or university that is accredited by an organization recognized by the council for higher education accreditation or its successor agency. See Arizona Laws 32-701
  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Attest services: means the following services to be performed by the holder of a certificate issued by the board:

    (a) Audits or other engagements to be performed in accordance with the statements on auditing standards adopted by the American institute of certified public accountants. See Arizona Laws 32-701

  • Board: means the Arizona state board of accountancy established by section 32-702. See Arizona Laws 32-701
  • Business organization: means a partnership, professional corporation, professional limited liability company, limited liability company or limited liability partnership or any other entity that is recognized by the board and that is established under the laws of any state or foreign country. See Arizona Laws 32-701
  • Certified public accountant: means an individual who has been issued a certificate of authority by the board to practice as a certified public accountant or who meets the limited reciprocity privilege requirements pursuant to section 32-725. See Arizona Laws 32-701
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • CPA designation: means the title "certified public accountant" or any abbreviation or grammatical derivative of the term "certified public accountant". See Arizona Laws 32-701
  • Disciplinary action: means any other regulatory sanctions imposed by the board in combination with, or as an alternative to, relinquishment, revocation or suspension of a certificate or registration, including the imposition of:

    (a) An administrative penalty in an amount not to exceed $2,000 for each violation of this chapter or rules adopted pursuant to this chapter. See Arizona Laws 32-701

  • Firm: means a business organization, a sole proprietorship or an individual who is registered pursuant to section 32-731. See Arizona Laws 32-701
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Jurisdiction: means , for the purposes of examination, certification, firm registration or limited reciprocity privilege, the fifty states of the United States, the District of Columbia, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands or the Commonwealth of Puerto Rico. See Arizona Laws 32-701
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Limited reciprocity privilege: means the permission to practice as a certified public accountant in this state pursuant to section 32-725 for an individual whose principal place of business is outside of this state. See Arizona Laws 32-701
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Practice of accounting: means providing accounting services for a client or an employer. See Arizona Laws 32-701
  • Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215

B. To qualify to exercise the limited reciprocity privilege, an individual must:

1. Have a principal place of business that is not in this state.

2. Not have or represent to have an office in this state.

3. Not be the subject of suspension or revocation of a certificate as provided by section 32-741 or relinquishment of a certificate as provided by Section 32-730.06.

4. Hold a valid registration, certificate or license as a certified public accountant issued by another jurisdiction and either of the following applies:

(a) The other jurisdiction requires as a condition of licensure that an individual has all of the following:

(i) At least one hundred fifty semester hours of college education, including a baccalaureate degree or a higher degree that is conferred by an accredited institution or a college or university that maintains standards that are comparable to those of an accredited institution.

(ii) A passing grade on the uniform certified public accountant examination.

(iii) At least one year of experience in the practice of accounting that has been verified.

(b) The individual meets the qualifications prescribed in section 32-721, subsection C.

C. An individual qualifying for limited reciprocity privilege under this section is considered to have qualifications that are substantially equivalent to the requirements prescribed pursuant to this chapter and has all of the privileges of registrants, certificate holders or licensees in this state without obtaining a registration, certificate or license under this chapter.

D. An individual qualifying for limited reciprocity privilege under this section may use the CPA designation and may offer or practice accounting in person or by mail, telephone or electronic means. A notice, fee or other submission is not required. The individual is subject to the requirements prescribed in subsection E of this section.

E. Each individual who holds a registration, certificate or license issued by another jurisdiction and who exercises the limited reciprocity privilege and each partnership, corporation or other entity engaging in the practice of accounting as provided by this section, as a condition of exercising the privilege provided by this section:

1. Shall:

(a) Comply with article 3 of this chapter and rules adopted pursuant to article 3 of this chapter. In any investigation or other proceedings conducted pursuant to article 3 of this chapter, an individual claiming permission to practice as a certified public accountant in this state under the limited reciprocity privilege has the burden of demonstrating that the applicable requirements of subsection B of this section have been satisfied.

(b) Cease the offering or practicing of accounting in person or by mail, telephone or electronic means in this state if the individual no longer satisfies the requirements of subsection B of this section or the partnership, corporation or other entity no longer satisfies the requirements of subsection G of this section.

2. Is subject to:

(a) The personal and subject matter jurisdiction of the board and the power of the board to investigate complaints and take disciplinary action.

(b) Service by either of the following:

(i) The appointment of the state board that issued the registration, certificate or license to the individual as agent, on whom process may be served in any action or proceeding against the person by the board.

(ii) Directly on the person.

F. Any individual who holds a valid registration, certificate or license as a certified public accountant issued by another jurisdiction or a foreign country, whose principal place of business is not in this state and who does not otherwise qualify under this section for limited reciprocity privilege may enter this state and provide services if the services are limited to the following:

1. Expert witness services.

2. Teaching or lecturing.

3. Other services as determined by the board.

G. A business organization formed under the laws of another jurisdiction relating to the practice of accounting in that jurisdiction may use the CPA designation in this state and may engage in the practice of accounting in this state, including the provision of attest services, without having to register as a firm if all of the following apply:

1. The business organization is owned by or employs an individual who is a limited reciprocity privilege holder pursuant to this section.

2. The business organization is in good standing in its principal place of business under the laws of that jurisdiction relating to the practice of accounting.

3. The principal place of business of the limited reciprocity privilege holder is a recognized place of business for the practice of accounting by the business organization.

4. The business organization does not have an office in this state and does not represent that it has an office in this state.

5. The business organization holds an active permit or registration as a certified public accountant firm in another jurisdiction.

6. The practice of accounting is performed by or under the direct supervision of an individual who is qualified for the limited reciprocity privilege under this section.

H. For the purposes of this section, "principal place of business" means the office designated by the individual or firm as the principal location for the individual’s or firm’s practice of accounting.

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