When do I need a reciprocal license?
A reciprocal license may be required for a variety of reasons. If an individual CPA relocates to a new jurisdiction, then a reciprocal license will be required in that jurisdiction. Additionally, individuals seeking practice privileges in a jurisdiction outside of their principal place of business, who come from a state that has not enacted a uniform mobility provision, may be required to obtain a reciprocal license., Or if the practice privilege state does not have substantial equivalency, a reciprocal license may be required.
My firm has clients across the country; does the firm need a firm license in each state where we do business?
Depending on the service that your firm provides, the firm may need to be licensed in a particular state. Because state requirements for firm licensure vary, individuals and/or firms must contact the board of accountancy in the state in which they intend to practice to determine the applicability of the state’s practice privilege/mobility and firm registration requirements. Generally, if the state in which you wish to practice has enacted a UAA mobility provision, individually licensed CPAs representing your firm will not need to be licensed in each state; however, the firm may need to be.
What are the requirements for continuing professional education?
Continuing professional education (CPE) is a mandatory requirement for CPAs to maintain and renew their professional competence and provide quality professional services. CPAs are responsible for complying with all applicable CPE requirements, rules and regulations of state boards of accountancy.
When is Peer Review Required?
Currently, 44 licensing jurisdictions have peer review requirements in effect. In addition, Illinois has enacted legislation to implement peer review effective in 2012. Peer review is required through the AICPA by-laws. AICPA members engaged in the practice of public accounting are required to be associated with a firm that is enrolled in an AICPA-approved practice-monitoring program, if the services performed by the firm are within the scope of the AICPA’s practice monitoring standards and if the firm issues reports purporting to be in accordance with AICPA professional standards.
If I take a leave of absence from my place of business does my license automatically become inactive?
Generally a license remains active until it is not renewed. An individual can sometimes request to be inactive, depending on the state requirements. Not every state board has an inactive status, and individuals should contact the board directly for additional information.