California Board of Accountancy Regulations 1/1/2022

1 Current as of: January 1, 2022 California Board OF Accountancy Regulations ( California Code of Regulations , Title 16, Division 1) Table of Contents Article 1. General .. 1 1. Definition of Accountancy Act.. 1 2. Confusing Titles.. 1 Definition of Attest Services and Attest Report.. 1 Definition of Audits.. 1 Definition of Satisfactory Evidence.. 1 3. Notification of Change of Address.. 1 4. Safe Harbor Language.. 2 5. Observance of Rules.. 3 Permit Processing Times. [Repealed] .. 3 Definition of Accountancy Act. [Renumbered] .. 3 Observance of Rules.

2 [Renumbered] .. 3 Substantial Equivalency.. 3 Article 2. Examinations .. 4 6. Examination Required, Passing Grades, Provisions for Disabled Applicants.. 4 Additional Requirements for Computer-Based Testing.. 4 7. Conditional Examination Credit Requirements for Applicants Who Will Be Applying for Licensure Pursuant to business and Professions Code Section 5090(b). [Repealed] .. 4 Credit Status for the Computerized Uniform CPA Examination.. 4 Transition to Computer Based Testing. [Repealed] .. 5 8. Examination Final Filing Dates. [Repealed] .. 5 The Authorization to Test and Notice to Schedule for the Computer-Based Uniform CPA Examination.

3 5 Requirements for Issuance of the Authorization to Test.. 6 9. Educational Requirement for Applicants Who Will Be Applying for Licensure Pursuant to business and Professions Code Section 5090(b). [Repealed] .. 7 Approved Credential Evaluation Service Status.. 7 Education Required Under business and Professions Code Sections 5092 and 5093.. 8 10. Examination on Rules of Professional Conduct.. 9 11. Education Required to Apply for Certified Public Accountant License.. 9 Accounting Study.. 9 Experience Requirements for Applicants Who Will Be Applying for Licensure Pursuant to business and Professions Code Section 5090(b).

4 [Repealed] .. 10 12. General Experience Required Under business and Professions Code Sections 5092 and 5093.. 10 Experience in Academia.. 11 Attest Experience Under business and Professions Code Section 5095.. 12 Article License Status .. 14 13. Applicants Who Applied for the Examination Prior to May 15, 2002.. 14 14. Changing Pathways. [Repealed] .. 14 15. Retired Status.. 15 Application for Retired Status.. 15 Renewal of a License in a Retired Status.. 15 Restoration of a License from a Retired Status to Active Status.. 15 Limitation on Retired Status.

5 16 16. Military Inactive Status.. 16 Definitions.. 16 Status Conversion of a License in a Military Inactive Status.. 16 17. Conditional Credit. [Renumbered] .. 17 Article 3. Practice Privileges .. 17 18. Purpose of this Article and Definitions.. 17 19. Practice Privilege Forms for Individuals.. 17 20. Registration Forms for Out-of -State Accounting Firms.. 18 21. Appeals.. 19 Waiver of Examination for Certain Foreign Applicants. [Repealed] .. 19 22. Notice of Intent to Administratively Suspend.. 19 Article 4. Practice Privileges (Inoperative on July 1, 2013).

6 20 26. Purpose of this Article.. 20 27. Qualifications for the Practice Privilege.. 20 28. 20 29. Term of the Practice Privilege.. 21 30. Safe Harbor - Period of the Notice. [Repealed] .. 21 31. Payment of the Fee.. 21 32. Board Approval Required.. 22 33. Changes to Information on the Notification.. 22 34. Response to Board Inquiry.. 23 35. Continuing Education Requirement.. 23 Notice of Intent to Administratively Suspend.. 23 Article 5. Registration .. 23 36. Forfeiture of Eligibility.. 23 Out-of -State Licensee.. 23 37. Reissuance.. 24 Fingerprinting and Disclosure 25 Article 6.

7 Peer Review .. 25 38. Purpose of this Article.. 25 39. Definitions.. 26 40. Enrollment and Participation.. 26 41. Firm Responsibilities.. 26 42. Exclusions.. 27 43. Extensions.. 27 44. Notification of Expulsion.. 27 45. Reporting to the Board .. 27 46. Document Submission Requirements.. 27 47. Peer Review Oversight Committee.. 28 48. Minimum Requirements for a Peer Review Program.. 28 Board -Recognition of the American Institute of Certified Public accountants , Inc. Peer Review Program.. 32 Applying to Become a Board -Recognized Peer Review Program.

8 32 Board -Recognized Peer Review Program Provider Reporting Responsibilities.. 32 Reconsideration of a Denied Applicant.. 33 Withdrawal of Board Recognition.. 33 Records of Proceedings.. 34 Article 8. Appeals .. 34 49. Appeals.. 34 Article 9. Rules of Professional Conduct .. 34 50. Client Notification.. 34 Attest Client Notification Regarding Composition of Firm Ownership.. 35 51. Firms with Nonlicensee Owners.. 35 Notification of Non-Licensee Ownership.. 35 52. Response to Board Inquiry.. 36 Failure to Appear. [Repealed] .. 36 53. Discrimination Prohibited.

9 36 54. Confidential Information Defined, Exception.. 36 Disclosure of Confidential Information Prohibited.. 37 Recipients of Confidential Information.. 37 55. Permission to Use Name. [Repealed] .. 38 56. Commissions -Basic Disclosure Requirement.. 38 Commissions -Professional Services Provided to the Client.. 38 Commissions -Disclosure Requirement and Other Rules of Professional Conduct.. 38 Commissions -Definitions.. 39 Officer and Director.. 39 57. Incompatible Occupations/Conflict of Interest.. 39 58. Compliance with Standards.. 40 Accountant's Report on the Examination of Financial Statements.

10 [Repealed] .. 40 Accountant's Report on Unaudited Financial Information of a Public Entity. [Repealed] .. 40 Compilation and Review of Financial Statements. [Repealed] .. 40 Unaudited Financial Statements. [Repealed].. 40 59. Reporting of Restatements.. 40 60. Reporting of Investigations by the Securities and Exchange Commission Pursuant to Section 5063(b)(3); Reporting of Notices of Requests for Wells Submissions Pursuant to Section 5063 (b)(4); and Reporting of Investigations by the Public Company Accounting Oversight Board Pursuant to Section 5063(b)(5).. 41 61.