CHAPTER 389
PUBLIC ACCOUNTANTS

Table of Contents

Secs. 20-279 and 20-279a. Board of Accountancy. Definitions.
Sec. 20-279b. Definitions.
Sec. 20-280. Board of Accountancy. Members' terms. Meetings. Seal. Maintenance of registry. Reimbursement of expenses. Printing of directory. Powers. Adoption of rules. Regulations.
Sec. 20-280a. Comptroller to perform fiscal duties of and provide clerical assistance to board.
Sec. 20-280b. Hearing. Order to discontinue violation. Civil penalty.
Sec. 20-280c. Investigation of complaints.
Sec. 20-280d. Investigation of applicant's qualifications. Administration of examinations. Rosters.
Sec. 20-281. Permit to practice. Quality review.
Sec. 20-281a. Revocation or suspension of certificate, license or permit. Refusal to renew. Civil penalty. Probation. Reasons therefor.
Sec. 20-281b. Licenses and permits to practice public accountancy issued prior to October 1, 1992. Renewal requirements. Titles.
Sec. 20-281c. Certificate of certified public accountant. Good character, education, experience and examination requirements. Examination fee. Registration of certificate. Registration fee.
Sec. 20-281d. Issuance of initial license to persons and license renewal. Holders of certificates from other states. Continuing education requirements. Fees. Applicants' disclosure requirements.
Sec. 20-281e. Granting of initial permit to practice public accountancy to firms and permit renewal. Annual fee. Disclosure requirements.
Sec. 20-281f. Suspension or revocation of registration, certificate, license or permit. Refusal to renew. Reinstatement.
Sec. 20-281g. Issuance of report by person or firm not holding valid license and permit prohibited. Exceptions. Use of titles restricted.
Sec. 20-281h. Violations. Fine or imprisonment.
Sec. 20-281i. Evidence of commission of single prohibited act sufficient to justify penalty, injunction, restraining order or conviction.
Sec. 20-281j. Confidentiality of client information.
Sec. 20-281k. Statements, records, schedules, working papers and memoranda incident to practice of public accountancy. Return of original records. Retention of certain workpaper.
Sec. 20-281l. Contingent fees and referrals.
Sec. 20-281m. Contingent fees.
Secs. 20-282 to 20-287. Certified public accountants; examination and fees; reciprocity. Limited permits; regulations. Authority for veterans to practice as public accountants; qualifications; time limit for issuance. Licenses, renewal; fee. Practice of accountancy by professional corporations. Use of titles restricted. Regulations re revocation or suspension of certificate, authority, license or permit; reissuance; appeal. Excepted persons.

      Secs. 20-279 and 20-279a. Board of Accountancy. Definitions. Sections 20-279 and 20-279a are repealed.

      (1949 Rev., S. 4609; 1955, S. 2292d; P.A. 77-614, S. 209, 610; Nov. Sp. Sess. P.A. 81-11, S. 7, 19; P.A. 82-419, S. 4, 47; P.A. 83-487, S. 9, 33; P.A. 85-504, S. 1, 2, 15; P.A. 92-212, S. 21.)

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      Sec. 20-279b. Definitions. As used in this section and sections 20-280 to 20-281m, inclusive:

      (1) "Board" means the State Board of Accountancy established by section 20-280;

      (2) "Certificate" means a "certified public accountant" certificate issued either prior to October 1, 1992, or pursuant to section 20-281c or a "certified public accountant" certificate issued after examination pursuant to the laws of any other state;

      (3) "Firm" means any person, proprietorship, partnership, corporation, limited liability company or association and any other legal entity which practices public accountancy;

      (4) "License" means a public accountancy license issued pursuant to section 20-281b or 20-281d;

      (5) "Licensee" means the holder of a certificate issued pursuant to section 20-281c, the holder of a license issued pursuant to section 20-281b or 20-281d or a holder of a permit to practice public accountancy issued pursuant to sections 20-281b and 20-281e;

      (6) "Permit" means a permit to practice public accountancy issued to a firm pursuant to section 20-281e;

      (7) "Practicing public accountancy" means performing for the public or offering to perform for the public for a fee by a person or firm holding himself or itself out to the public as a licensee one or more kinds of services involving the use of accounting or auditing skills, including, but not limited to, the issuance of reports on financial statements, or of one or more kinds of management advisory, financial advisory or consulting services, or the preparation of tax returns or the furnishing of advice on tax matters;

      (8) "Quality review" means any study, appraisal or review of one or more aspects of the professional work of a firm which practices public accountancy by a person or persons who holds or hold licenses under section 20-281b or 20-281d or their equivalent under the laws of any other state and who are not affiliated with the firm being reviewed;

      (9) "Registration" means the process by which the holder of a certificate may register his certificate annually and pay a fee of twenty dollars in lieu of an annual renewal of a license and be entitled to use the abbreviation "CPA" and the title "certified public accountant" under conditions and in the manner prescribed by the board by regulation;

      (10) "Profession" means the profession of public accountancy;

      (11) "Report" means any writing which refers to a financial statement and (A) expresses or implies assurance as to the reliability of said financial statement, and includes, but is not limited to, any writing disclaiming an opinion, when such writing contains language conventionally understood in the profession to express or imply assurance as to the reliability of such financial statement, and (B) expresses or implies that the person or firm issuing such writing has special competence in accounting or auditing, which expression or implication arises from, among other things, the use of written language which is conventionally understood in the profession to express or imply assurance as to the reliability of financial statements.

      (P.A. 92-212, S. 1; P.A. 95-79, S. 64, 189.)

      History: P.A. 95-79 redefined "firm" to include a limited liability company, effective May 31, 1995.

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      Sec. 20-280. Board of Accountancy. Members' terms. Meetings. Seal. Maintenance of registry. Reimbursement of expenses. Printing of directory. Powers. Adoption of rules. Regulations. (a) There shall be a State Board of Accountancy which shall consist of nine members, to be appointed by the Governor, all of whom shall be residents of this state, five of whom shall hold current, valid licenses to practice public accountancy and four of whom shall be public members. Any persons serving on the board prior to October 1, 1992, shall continue to serve until a successor is appointed. Whenever an appointment of a licensee to the state board is to be made, the Connecticut Society of Certified Public Accountants shall submit to the Governor the names of five persons qualified for membership on the board and the Governor shall appoint one of such persons to said board, subject to the provisions of section 4-10. The Governor shall select a chairperson pursuant to section 4-9a. The term of each member of the board shall be coterminous with that of the Governor. Vacancies occurring during a term shall be filled by appointment by the Governor for the unexpired portion of the term. Upon the expiration of a member's term of office, such member shall continue to serve until his successor has been appointed. Any member of the board whose license under section 20-281d is revoked or suspended shall automatically cease to be a member of the board. No person who has served two successive complete terms shall be eligible for reappointment to the board. Appointment to fill an unexpired term shall not be considered to be a complete term. Any member who, without just cause, fails to attend fifty per cent of all meetings held during any calendar year shall not be eligible for reappointment.

      (b) The board shall meet at such times and places as may be fixed by the board and shall meet at least once in every quarter of a calendar year. A majority of the board members then serving shall constitute a quorum at any meeting duly called. The board shall have a seal which shall be judicially noticed. The board shall maintain a registry of the names and addresses of all licensees and registrants under sections 20-279b to 20-281m, inclusive, and shall have responsibility for the administration and enforcement of said sections.

      (c) Each member of the board shall be reimbursed for his actual and necessary expenses incurred in the discharge of his official duties.

      (d) The board shall annually cause to be printed a directory which shall contain the names, arranged alphabetically, of all licensees and registrants under sections 20-279b to 20-281m, inclusive.

      (e) The board, subject to the provisions of chapter 67, may employ an executive director and such other personnel as may be necessary to carry out the provisions of sections 20-279b to 20-281m, inclusive. The board may enter into such contractual agreements as may be necessary for the discharge of its duties, within the limit of its appropriated funds and in accordance with established procedures, as it deems necessary in its administration and enforcement of said sections. It may appoint committees or persons to advise or assist the board in such administration and enforcement as it may see fit. Said board shall be within the office of the Secretary of the State.

      (f) The board shall have the power to take all action that is necessary and proper to effectuate the purposes of sections 20-279b to 20-281m, inclusive, including the power to issue subpoenas to compel the attendance of witnesses and the production of documents; to administer oaths; to take testimony and to receive evidence concerning all matters within its jurisdiction. In case of disobedience of a subpoena, the board may invoke the aid of any court of this state in requiring the attendance and testimony of witnesses and the production of documentary evidence. The board, its members, and its agents shall be immune from personal liability for actions taken in good faith in the discharge of the board's responsibilities, and the state shall indemnify and hold harmless the board, its members, and its agents from all costs, damages, and attorneys' fees arising from claims and suits against them with respect to matters to which such immunity applies.

      (g) The board may adopt rules, in accordance with chapter 54, governing its administration and enforcement of sections 20-279b to 20-281m, inclusive, and the conduct of licensees and registrants, including, but not limited to:

      (1) Regulations governing the board's meetings and the conduct of its business;

      (2) Regulations concerning procedures governing the conduct of investigations and hearings by the board;

      (3) Regulations specifying the educational qualifications required for the issuance of certificates under section 20-281c, the experience required for initial issuance of certificates under section 20-281c and the continuing professional education required for renewal of licenses under subsection (e) of section 20-281d;

      (4) Regulations concerning professional conduct directed to controlling the quality and probity of the practice of public accountancy by licensees, and dealing among other things with independence, integrity, objectivity, competence, technical standards, responsibilities to the public and responsibilities to clients;

      (5) Regulations specifying actions and circumstances that shall be deemed to constitute holding oneself out as a licensee in connection with the practice of public accountancy;

      (6) Regulations governing the manner and circumstances of use by holders of certificates who do not also hold licenses under sections 20-279b to 20-281m, inclusive, of the titles "certified public accountant" and "CPA";

      (7) Regulations regarding quality reviews that may be required to be performed under the provisions of sections 20-279b to 20-281m, inclusive;

      (8) Regulations implementing the provisions of section 20-281l, including, but not limited to, specifying the terms of any disclosure required by subsection (d) of said section 20-281l, the manner in which such disclosure is made and any other requirements the board imposes with regard to such disclosure. Such regulations shall require that any disclosure: (A) Be in writing and signed by the recipient of the product or service; (B) be clear and conspicuous; (C) state the amount of the commission or the basis on which the commission will be calculated; (D) identify the source of the payment of the commission and the relationship between such source and the person receiving payment; and (E) be presented to the client at or prior to the time the recommendation of the product or service is made; and

      (9) Such other regulations as the board may deem necessary or appropriate for implementing the provisions and the purposes of sections 20-279b to 20-281m, inclusive.

      (1949 Rev., S. 4610; 1955, S. 2293d; 1959, P.A. 616, S. 69; P.A. 77-614, S. 210, 610; P.A. 78-255, S. 8, 10; P.A. 80-205, S. 1, 6; P.A. 81-203, S. 1; P.A. 82-419, S. 5, 47; P.A. 83-487, S. 10, 33; P.A. 85-504, S. 3, 15; P.A. 87-496, S. 87, 110; P.A. 92-212, S. 2; P.A. 00-42, S. 3; P.A. 03-259, S. 40.)

      History: 1959 act deleted requirement that treasurer submit account of receipts to state treasurer and provisions re payment of board's expenditures and member's expenses and compensation; P.A. 77-614 deleted provisions for holding annual meeting on second Wednesday in January and for election of officers, deleted power to make bylaws and regulations governing board business and increased from two to four the number of members required for quorum and for calling special meetings in Subsec. (a) and transferred regulation power under Subsec. (b) from board to commissioner of consumer protection, retaining board in advisory role, effective January 1, 1979; P.A. 78-255 added Subsecs. (c) to (g) re continuing education requirements; P.A. 80-205 deleted requirements that register be "published for public distribution in January" and that names of board members and regulations be published and that copies of register be mailed to registered practitioners; P.A. 81-203 amended Subsec. (c) to require the commissioner of consumer protection to adopt regulations establishing experience requirements necessary to qualify for receipt of an annual registration card; P.A. 82-419 changed term "annual registration card" to "license"; P.A. 83-487 amended Subsec. (c) to clarify requirements for issuance of license and certificate; P.A. 85-504 amended Subsec. (a) by requiring the board to meet quarterly, establishing minimum attendance requirements for members and placing a limit on the number of terms served, amended Subsecs. (b) and (c) by deleting reference to regulatory power of the commissioner of consumer protection and added Subsecs. (h) and (i) which provide for a permanent office, hiring of employees and contractual agreements and the adoption of regulations; P.A. 87-496 substituted "public works" for "administrative services" commissioner in Subsec. (h); P.A. 92-212 entirely replaced prior provisions re board of accountancy; in 1993, in the provision re member's terms in Subsec. (a) the words "that of" were inserted in the phrase "shall be coterminous with that of the governor" for grammatical correctness; P.A. 00-42 amended Subsec. (g) by inserting new Subdiv. (8) re regulations implementing the provisions of Sec. 20-281l, renumbering former Subdiv. (8) as Subdiv. (9) and making technical changes; P.A. 03-259 amended Subsec. (a) by increasing number of members of board from seven to nine and requiring one of the additional members to hold a public accountancy license and the other additional member to be a public member.

      See Sec. 4-32 re state revenue accounting system.

      See Sec. 4-40a re compensation and expenses of licensing boards and commissions.

      See Sec. 51-58 re court seals.

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      Sec. 20-280a. Comptroller to perform fiscal duties of and provide clerical assistance to board. Section 20-280a is repealed.

      (1959, P.A. 89, S. 1; P.A. 77-614, S. 609, 610.)

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      Sec. 20-280b. Hearing. Order to discontinue violation. Civil penalty. (a) The board may conduct hearings on any matter within its statutory jurisdiction. Such hearings shall be conducted in accordance with chapter 54 and the regulations established pursuant to subsection (g) of section 20-280. In connection with any hearing or investigation, the board may administer oaths, issue subpoenas, compel testimony and order the production of books, records and documents. If any person refuses to appear, testify or produce any book, record or document when so ordered, a judge of the Superior Court may make such order as may be appropriate to aid in the enforcement of this section. The final decision of the board shall be subject to judicial review as provided in section 4-183.

      (b) The board may, in its discretion, issue an appropriate order to any person found to be in violation of an applicable statute or regulation, providing for the immediate discontinuance of the violation. The board may, through the Attorney General, petition the superior court for the judicial district in which the violation occurred, or in which the person committing the violation resides or does business, for the enforcement of any order issued by it and for appropriate temporary relief or a restraining order and shall certify and file in the court a transcript of the entire record of the hearing or hearings, including all testimony upon which such order was made and the findings and orders made by the board. The court may grant such relief by injunction or otherwise, including temporary relief, as it deems equitable and may make and enter a decree enforcing, modifying or enforcing as so modified, or setting aside, in whole or in part, any order of the board. The board, in its discretion, in lieu of or in addition to any other action authorized by law, may assess a civil penalty of up to fifty thousand dollars against any person found to have violated any provision of the general statutes or any regulations adopted thereunder relating to the profession of public accountancy.

      (P.A. 85-504, S. 4, 15; P.A. 92-212, S. 9; P.A. 03-259, S. 41.)

      History: P.A. 92-212 deleted former Subsec. (b) re board's authority to conduct investigations, Subsec. (c) re board's authority to suspend or revoke licenses, etc. and Subsec. (e) re grounds for suspension or revocation, relettering remaining Subsecs. as necessary and adding provision in relettered Subsec. (b) re assessment of civil penalties; P.A. 03-259 amended Subsec. (b) by increasing maximum civil penalty from one thousand dollars to fifty thousand dollars.

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      Sec. 20-280c. Investigation of complaints. (a) The board shall conduct any necessary review, inspection or investigation regarding possible violations of statutes or regulations, disciplinary matters, and the establishment of regulatory policy.

      (b) The board shall conduct any necessary investigation and follow-up in connection with complaints regarding persons subject to regulation or licensing by the board.

      (c) The board shall receive complaints concerning the work and practices of persons licensed, registered or certified by such board and shall receive complaints concerning unauthorized work and practice by persons not licensed, registered or certified by such board. The board shall screen all complaints and dismiss any in which the allegation, if substantiated, would not constitute a violation of any statute or regulation. The board shall investigate any complaint in which the allegation, if substantiated, would constitute a violation of a statute or regulation under its jurisdiction. The board may dismiss a complaint following an investigation if it determines that such complaint lacks probable cause. The board may authorize a settlement if the settlement is approved by the complainant, the practitioner and the board. The complaint may be brought before the board for a formal hearing if it determines that there is probable cause to believe that the offense alleged in the complaint has been committed and that the practitioner named in the complaint was responsible. Any such hearing shall be conducted in accordance with the provisions of chapter 54.

      (P.A. 85-504, S. 5, 15; P.A. 92-212, S. 10.)

      History: P.A. 92-212 added provision in Subsec. (c) requiring that hearings be conducted in accordance with chapter 54.

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      Sec. 20-280d. Investigation of applicant's qualifications. Administration of examinations. Rosters. Section 20-280d is repealed.

      (P.A. 85-504, S. 6, 15; P.A. 92-212, S. 21.)

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      Sec. 20-281. Permit to practice. Quality review. (a) No firm shall practice public accountancy in this state unless such firm has obtained a permit to practice.

      (b) The State Board of Accountancy shall require, by regulation, that on and after January 1, 1990, as a condition to renewal of a permit to practice issued under section 20-281e that permit holders undergo a quality review, conducted in such manner as the board may by regulation specify, to determine and report on the degree of compliance by the permit holder with generally accepted accounting principals, generally accepted auditing standards and other similarly recognized authoritative technical standards. Such a review shall be required every three years, except as provided in subsection (c) of this section. Any such regulations shall provide that an applicant may comply with such regulations by furnishing sufficient evidence to the board that a similar quality review has been completed for other purposes. Each such review shall be performed by a reviewer having such qualifications as shall be set forth by regulation. Each reviewer shall be independent of the firm being reviewed. The firm which is the subject of the review shall furnish a copy of the opinion letter accompanying the report of the review performed by the reviewer to the board within thirty days of the acceptance of the final report by a qualified oversight body as determined by the board. Such letter shall not be a public record unless it is made part of the record of a disciplinary hearing. If the review report is designated "modified", the board may require the firm which is the subject of the review to submit an affidavit, within such time as the board may specify, indicating that the remedial action suggested by the reviewer has been completed. Payment for any review shall be the responsibility of the firm which is the subject of the review.

      (c) A permit holder may be granted a waiver from the quality review requirements under subsection (b) of this section: (1) If it annually represents to the board that: (A) It does not engage in financial reporting areas of practice, including audits, compilations and reviews, (B) it does not intend to engage in such a practice during the following year, and (C) it will immediately notify the board if it engages in such practice; (2) for reasons of health; (3) due to military service; (4) in instances of individual hardship; or (5) for other good cause as the board may determine. Any such requests for waivers and any such representations shall be made in writing, under oath, and upon forms provided by the board. Such requests and representations shall be made at the time the firm applies for renewal of its firm permit. Any firm which has been granted a waiver pursuant to subdivision (1) of this subsection shall immediately notify the board if it engages in the financial reporting area of practice and shall undergo a quality review during the first calendar year after its initial acceptance of such an engagement.

      (1955, S. 2294d; P.A. 78-255, S. 3, 10; P.A. 81-203, S. 2; P.A. 82-417, S. 1, 3; P.A. 83-22, S. 2, 3; 83-487, S. 11, 33; P.A. 89-96; 89-251, S. 113, 203; P.A. 90-170, S. 1, 3; P.A. 92-212, S. 6.)

      History: P.A. 78-255 combined provisions setting forth conditions for practice as certified public accountant or public accountant, specified that certificates are granted by the board and substituted "chapter 389" for "section 2297d of the 1955 supplement to the general statutes or section 20-283"; P.A. 81-203 deleted this section's prohibition against practicing as a certified public accountant without a valid certificate and annual registration card, see Sec. 20-284 and 20-285 re limits on the activities of persons who do not hold certificates and registration cards; P.A. 82-417 required each firm practicing public accountancy to obtain a permit to practice and set forth the application requirements in new Subsecs. (b) to (g); P.A. 83-22 amended Subsec. (e) by eliminating from the provisions of this section those partners, officers and shareholders who reside in this state without personally practicing public accounting in this state and amended Subsec. (g) by eliminating the requirement that public accountancy firms notify the board of any change of partners, officers or shareholders who reside in this state without working in this state; P.A. 83-487 changed term "annual registration card" to "license" and specified requirements for practice by accountants; P.A. 89-96 added Subsecs. (h) and (i) requiring quality review as a condition to renewal of a permit to practice and standards for waivers; P.A. 89-251 increased the application fee from twenty-five dollars to seventy-five dollars for individuals and to one hundred twenty-five dollars for firms; P.A. 90-170 amended Subsec. (c) by deleting the reference to individuals in relation to the fee of seventy-five dollars and in addition, deleted the fee of one hundred twenty-five dollars for applications submitted by firms, thus establishing a fee of seventy-five dollars for both individuals and firms; P.A. 92-212 deleted former Subsec. (a) requiring certificate or license to practice, relettering Subsec. (b) as (a) and deleting definition of "firm", and deleted former Subsecs. (c) to (g), inclusive, which had detailed application procedure and requirements, relettering former Subsecs. (h) and (i) accordingly and making technical changes to conform language with other portions of the act.

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      Sec. 20-281a. Revocation or suspension of certificate, license or permit. Refusal to renew. Civil penalty. Probation. Reasons therefor. (a) After notice and hearing pursuant to section 20-280c, the board may revoke any certificate, license or permit issued under section 20-281c, 20-281d or 20-281e; suspend any such certificate, registration, license or permit or refuse to renew any such certificate, license or permit; reprimand, censure, or limit the scope of practice of any licensee; impose a civil penalty not exceeding fifty thousand dollars upon licensees or others violating provisions of section 20-281g or place any licensee on probation, all with or without terms, conditions and limitations, for any one or more of the following reasons:

      (1) Fraud or deceit in obtaining a certificate, registration, license or permit;

      (2) Cancellation, revocation, suspension or refusal to renew authority to engage in the practice of public accountancy in any other state for any cause;

      (3) Failure, on the part of a holder of a license or permit under section 20-281d or 20-281e, to maintain compliance with the requirements for issuance or renewal of such license or permit or to report changes to the board under subsection (g) of section 20-281d or subsection (f) of section 20-281e;

      (4) Revocation, limitation or suspension of the right to practice before any state or federal agency or the Public Company Accounting Oversight Board under the Sarbanes-Oxley Act of 2002, or any of the following actions taken by any such state or federal agency or said board against a licensee: (A) Suspension of or barring a licensee from serving as a corporate officer or director, (B) requiring a licensee to disgorge funds, or (C) suspension or barring a licensee from association with a public accounting firm;

      (5) Dishonesty, fraud or negligence in the practice of public accountancy or in the filing or failure to file his own income tax returns;

      (6) Violation of any provision of sections 20-279b to 20-281m, inclusive, or regulation adopted by the board under said sections;

      (7) Violation of any rule of professional conduct adopted by the board under subdivision (4) of subsection (g) of section 20-280;

      (8) Conviction of a felony, or of any crime an element of which is dishonesty or fraud, under the laws of the United States, of this state, or of any other state if the acts involved would have constituted a crime under the laws of this state, subject to the provisions of section 46a-80;

      (9) Performance of any fraudulent act while holding a registration, certificate, license or permit issued under sections 20-279b to 20-281m, inclusive, or prior law;

      (10) Any conduct reflecting adversely upon the licensee's fitness to engage in the practice of public accountancy; and

      (11) Violation by anyone of any provision of section 20-281g.

      (b) In lieu of or in addition to any remedy specifically provided in subsection (a) of this section, the board may require a licensee to: (1) Submit to a quality review conducted in such fashion as the board may specify; or (2) complete such continuing professional education programs as the board may specify, or both.

      (c) In any proceeding in which a remedy provided by subsection (a) or (b) of this section is imposed, the board may also require the respondent to pay the costs of the proceeding.

      (P.A. 92-212, S. 8; P.A. 03-259, S. 42.)

      History: P.A. 03-259 amended Subsec. (a) by increasing maximum civil penalty from one thousand dollars to fifty thousand dollars and substantially revising Subdiv. (4) re disciplinary actions.

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      Sec. 20-281b. Licenses and permits to practice public accountancy issued prior to October 1, 1992. Renewal requirements. Titles. Persons and firms who, prior to October 1, 1992, were authorized to practice as public accountants and hold licenses and permits to practice public accountancy issued pursuant to sections 20-279 to 20-287, inclusive, prior to October 1, 1992, shall be entitled to have their licenses and permits to practice renewed under sections 20-281d and 20-281e, provided they fulfill all requirements for renewal under those provisions. So long as such licensees hold valid licenses and permits to practice under sections 20-281d and 20-281e, they shall be entitled to engage in the practice of public accountancy to the same extent as other holders of such permits, and in addition they shall be entitled to use the designations "public accountants" and "PA" but no other designation, in connection with the practice of public accountancy.

      (P.A. 92-212, S. 7.)

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      Sec. 20-281c. Certificate of certified public accountant. Good character, education, experience and examination requirements. Examination fee. Registration of certificate. Registration fee. (a) The board shall grant the certificate of "certified public accountant" to any person who meets the good character, education, experience and examination requirements of subsections (b) to (d), inclusive, of this section and upon the payment of a fee of seventy-five dollars.

      (b) Good character for purposes of this section means lack of a history of dishonest or felonious acts. The board may refuse to grant a certificate on the grounds of failure to satisfy this requirement only if there is a substantial connection between the lack of good character of the applicant and the professional responsibilities of a licensee and if the finding by the board of lack of good character is supported by clear and convincing evidence, and when based upon the prior conviction of a crime, is in accordance with the provisions of section 46a-80. When an applicant is found to be unqualified for a certificate because of a finding of lack of good character, the board shall furnish the applicant a statement containing the findings of the board and a complete record of the evidence upon which the determination was based.

      (c) The educational requirement for a certificate must be met before an applicant is eligible to apply for the examination. The educational requirements shall be prescribed in regulations to be adopted by the board as follows:

      (1) Until December 31, 1999, a baccalaureate degree or its equivalent conferred by a college or university acceptable to the board, with an accounting concentration or equivalent as determined by the board by regulation to be appropriate;

      (2) After January 1, 2000, at least one hundred fifty semester hours of college education including a baccalaureate or higher degree conferred by a college or university acceptable to the board. The total educational program shall include an accounting concentration or equivalent, as determined by the board by regulation to be appropriate.

      (d) The board may charge, or provide for a third party administering the examination to charge each applicant a fee in an amount prescribed by the board by regulation, for each section of the examination or reexamination taken by the applicant.

      (e) The experience requirement for a certificate shall be as prescribed by the board by regulation.

      (f) The holder of a certificate may register his certificate annually and pay a fee of twenty dollars in lieu of an annual renewal of a license and such registration shall entitle the registrant to use the abbreviation "CPA" and the title "certified public accountant" under conditions and in the manner prescribed by the board by regulation.

      (P.A. 92-212, S. 3.)

      Subsec. (a):

      Cited. 235 C. 128, 144.

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      Sec. 20-281d. Issuance of initial license to persons and license renewal. Holders of certificates from other states. Continuing education requirements. Fees. Applicants' disclosure requirements. (a) The board shall issue or renew licenses to persons who make application and demonstrate their qualifications therefor in accordance with subsections (b) to (g), inclusive, of this section.

      (b) Licenses shall be initially issued for one year and renewed annually. Applications for such licenses shall be made in such form, and in the case of applications for renewal, between such dates, as the board shall by regulation specify.

      (c) An applicant for initial issuance of a license under this section shall show:

      (1) That he holds a valid certificate;

      (2) If the applicant's certificate was issued more than four years prior to his application for issuance of an initial license under this section, that he has fulfilled the requirements of continuing professional education that would have been applicable under subsection (e) of this section if he had secured his initial license within four years of issuance of his certificate and was now applying under subsection (e) of this section for renewal of such license.

      (d) The board shall issue a certificate to a holder of a certificate issued by another state upon a showing that:

      (1) The applicant passed the examination required for issuance of his certificate with grades that would have been passing grades at the time in this state; and

      (2) The applicant meets all current requirements in this state for issuance of a certificate at the time the application is made; or the applicant, at the time of the issuance of the applicant's certificate in the other state, met all such requirements then applicable in this state; or the applicant has had five years of experience in the practice of public accountancy or meets equivalent requirements prescribed by the board by regulation, after passing the examination upon which his certificate was based and within the ten years immediately preceding his application.

      (e) For renewal of a license under this section an applicant shall show that he has completed forty hours of continuing professional education during each year from the date of issuance or last renewal. The board may prescribe, by regulation, the content, duration and organization of continuing professional education courses which contribute to the general professional competence of the applicant.

      (f) The board shall charge a fee of seventy-five dollars for the initial issuance and the professional services fee for class I, as defined in section 33-182l, for each annual renewal of such license.

      (g) Applicants for initial issuance or renewal of licenses under this section shall in their applications list all states in which they have applied for or hold certificates or licenses, and each holder of or applicant for a license under this section shall notify the board in writing, within thirty days after its occurrence, of any issuance, denial, revocation or suspension of a certificate or license by another state.

      (P.A. 92-212, S. 4; May Sp. Sess. P.A. 92-16, S. 51, 89; P.A. 04-36, S. 1.)

      History: May Sp. Sess. P.A. 92-16 replaced four-hundred-fifty-dollar renewal fee with fee for professional service fee class I established pursuant to Sec. 33-182l; P.A. 04-36 amended Subsec. (d)(2) to eliminate requirement that five years of experience be performed outside of this state, effective April 28, 2004.

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      Sec. 20-281e. Granting of initial permit to practice public accountancy to firms and permit renewal. Annual fee. Disclosure requirements. (a) The board shall grant or renew permits to practice public accountancy to firms that make application and demonstrate their qualifications therefor in accordance with subsections (b) to (f), inclusive, of this section.

      (b) Permits shall be initially issued and renewed annually. Applications for permits shall be made in such form, and in the case of applications for renewal, between such dates as the board may by regulation specify.

      (c) An applicant for initial issuance or renewal of a permit to practice under this section shall be required to show that each proprietor, partner or shareholder of such firm who works in this state holds a valid license to practice issued under section 20-281b or 20-281d.

      (d) An applicant for initial issuance or renewal of a permit to practice under this section shall be required to register each office of the firm within this state with the board and to show that each such office is under the charge of a person holding a valid license issued under section 20-281b or 20-281d.

      (e) The board shall charge an annual fee for each application for initial issuance or renewal of a permit under this section in the amount of seventy-five dollars; provided, no such fee shall be charged to a firm having not more than one licensee.

      (f) Applicants for initial issuance or renewal of permits under this section shall list in their application all states in which they have applied for or hold licenses to practice public accountancy, and each holder of or applicant for a permit under this section shall notify the board in writing, within thirty days after its occurrence, of any change in the identities of any proprietors, partners, officers or shareholders of such firm who work regularly within this state, any change in the number or location of offices within this state, any change in the identity of the persons in charge of such offices, and any issuance, denials, revocation or suspension of a license by any other state.

      (P.A. 92-212, S. 5.)

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      Sec. 20-281f. Suspension or revocation of registration, certificate, license or permit. Refusal to renew. Reinstatement. (a) In any case where the board has suspended or revoked a registration, certificate, license or a permit or refused to renew a certificate, license or permit, the board may, upon application in writing by the person or firm affected and for good cause shown, modify the suspension, or reissue the certificate, license or permit.

      (b) The board shall specify by regulation the manner in which such applications shall be made and the times within which they shall be made.

      (c) Before reissuing or terminating the suspension of a registration, certificate, license or permit under this section, and as a condition thereto, the board may require the applicant to show successful completion of specified continuing professional education; and the board may make the reinstatement of a registration, certificate, license or permit conditional and subject to satisfactory completion of a quality review conducted in such fashion as the board may specify.

      (P.A. 92-212, S. 11.)

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      Sec. 20-281g. Issuance of report by person or firm not holding valid license and permit prohibited. Exceptions. Use of titles restricted. (a) A person or a firm which does not hold a valid license and permit issued under section 20-281b or 20-281d and section 20-281e shall not issue a report on financial statements of any other person, firm, organization or governmental unit. This prohibition does not apply to an officer, partner or employee of any firm or organization affixing his signature to any statement or report in reference to the financial affairs of such firm or organization with any wording designating the position, title or office that he holds therein; nor prohibit any act of a public official or employee in the performance of his duties as such; nor prohibit the performance by any persons of other services involving the use of accounting skills, including the preparation of tax returns, management advisory services and the preparation of financial statements without the issuance of reports thereon.

      (b) The prohibition contained in subsection (a) of this section is applicable to the issuance, by a person or a firm not holding a valid license and permit, of a report using any language conventionally used in the profession by licensees regarding a review of financial statements.

      (c) The prohibition contained in subsection (a) of this section is applicable to the issuance by a person or a firm not holding a valid license and permit of a report using any language conventionally used in the profession by licensees with respect to a compilation of financial statements.

      (d) A person who does not hold a valid registration or license shall not use or assume the title or designation "certified public accountant", or the abbreviation "CPA" or any other title, designation, words, letters, abbreviations, sign card or device tending to indicate that such person is a certified public accountant, provided that a holder of a certificate who does not also hold a license may use the title pertaining to such certification only in the manner permitted by regulations adopted by the board under subdivision (6) of subsection (g) of section 20-280.

      (e) No firm shall assume or use the title or designation "certified public accountant", or the abbreviation "CPA", or any other title, designation, words, letters, abbreviation, sign, card or device tending to indicate that such firm is composed of certified public accountants, unless (1) the firm holds a valid permit issued under section 20-281e, (2) all proprietors, partners and shareholders practicing public accountancy in this state hold valid certificates and licenses issued under section 20-281d, and (3) all proprietors, officers and shareholders of the firm hold licenses.

      (f) No person shall assume or use the title or designation "public accountant", or the abbreviation "PA", or any other title, designation, words, letters, abbreviation, sign, card or device which tends to indicate that such person is a public accountant unless he holds a valid license issued under section 20-281b.

      (g) A firm which does not hold a valid permit issued under section 20-281e shall not assume or use the title or designation "public accountant", the abbreviation "PA", or any other title, designation, words, letters, abbreviation, sign, card or device which tends to indicate that such firm is composed of public accountants.

      (h) A person or firm which does not hold a valid license and permit issued under sections 20-281d and 20-281e shall not assume or use the title or designation "certified accountant", "certified professional accountant", "chartered accountant", "enrolled accountant", "licensed accountant", "registered accountant", "accredited accountant", or any other title or designation likely to be confused with the titles "certified public accountant" or "public accountant" or use any of the abbreviations "CA", "EA", "LA", "RA", "AA" or similar abbreviation likely to be confused with the abbreviations "CPA" or "PA", provided that a holder of a certificate who does not also hold a license may use the titles pertaining to such certificate only in the manner permitted by regulations adopted by the board under subdivision (6) of subsection (g) of section 20-280. This subsection shall not prevent persons designated as "enrolled agents" of the Internal Revenue Service from using such title or the abbreviation "EA".

      (i) A person or firm which does not hold a valid license and permit issued under section 20-281b or 20-281d and section 20-281e shall not assume or use any title or designation that includes the words "accountant", "auditor" or "accounting" in connection with any other language, including the language of a report, that implies that such person or firm holds such a permit or has special competence as an accountant or auditor, provided this subsection shall not prohibit any officer, partner or employee of any firm or organization from affixing his signature to any statement in reference to the financial affairs of such firm or organization with any wording designating the position, title or office that he holds therein, nor prohibit any act of a public official or employee in the performance of his duties as such.

      (j) A person who holds a certificate shall not engage in the practice of public accountancy unless he also holds a valid license issued under section 20-281d and a permit issued under section 20-281e.

      (k) A firm which holds a permit under sections 20-279b to 20-281m, inclusive, shall not engage in the practice of public accountancy using a professional or firm name or designation that is misleading about the legal form of the firm, or about the persons who are partners, officers or shareholders of the firm, or about any other matter, provided names of one or more former partners or shareholders may be included in the name of a firm or its successor.

      (l) None of the foregoing provisions of this section shall apply to any firm holding a certification, designation, degree or license granted in a foreign country entitling the holder thereof to engage in the practice of public accountancy or its equivalent in such country, whose activities in this state are limited to the provision of professional services to persons or firms who are residents of, governments of, or business entities of the country in which he holds such entitlement, who issues no reports with respect to the financial statements of any other persons, firms or governmental units in this state, and who does not use in this state any title or designation other than the one under which he practices in such country, followed by a translation of such title or designation into the English language, if it is in a different language, and by the name of such country.

      (P.A. 92-212, S. 12; P.A. 01-195, S. 80, 181.)

      History: P.A. 01-195 made technical changes in Subsec. (e), effective July 11, 2001.

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      Sec. 20-281h. Violations. Fine or imprisonment. (a) Whenever, by reason of an investigation under section 20-280c or otherwise, the board has reason to believe that a person or firm has knowingly engaged in acts or practices that constitute a violation of section 20-281g, the board may bring its information to the attention of the state's attorney for the judicial district in which the firm practices, and the state's attorney, in his discretion, may cause appropriate criminal proceedings to be brought against said firm.

      (b) A person or firm who knowingly violates any provision of section 20-281g shall be subject to a fine of not more than one thousand dollars or imprisonment for not more than one year, or both.

      (P.A. 92-212, S. 13.)

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      Sec. 20-281i. Evidence of commission of single prohibited act sufficient to justify penalty, injunction, restraining order or conviction. In any action brought under section 20-280b, 20-280c, 20-281a, 20-281g or 20-281h, evidence of the commission of a single act prohibited by sections 20-279b to 20-281m, inclusive, shall be sufficient to justify a penalty, injunction, restraining order or conviction, without evidence of a general course of conduct.

      (P.A. 92-212, S. 14.)

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      Sec. 20-281j. Confidentiality of client information. Except by permission of the client engaging a licensee under sections 20-279b to 20-281m, inclusive, or the heirs, successors or personal representatives of such client, a licensee or any partner, officer, shareholder or employee of a licensee shall not voluntarily disclose information communicated to him by the client relating to and in connection with services rendered to the client by the licensee in the practice of public accountancy. Such information shall be deemed confidential, provided that nothing herein shall be construed as prohibiting the disclosure of information required to be disclosed by the standards of the public accounting profession in reporting on the examination of financial statements or as prohibiting disclosures in court proceedings, in investigations or proceedings under section 20-280b or 20-280c in ethical investigations conducted by private professional organizations, or in the course of quality reviews.

      (P.A. 92-212, S. 15.)

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      Sec. 20-281k. Statements, records, schedules, working papers and memoranda incident to practice of public accountancy. Return of original records. Retention of certain workpaper. (a) All statements, records, schedules, working papers and memoranda made by a licensee or partner, shareholder, officer, director or employee of a licensee, incident to, or in the course of, rendering services to a client in the practice of public accountancy, except the reports submitted by the licensee to the client and except for records that are part of the client's records, shall be and remain the property of the licensee in the absence of an express agreement to the contrary between the licensee and the client. No such statement, record, schedule, working paper or memorandum shall be sold, transferred or bequeathed, without the consent of the client or his personal representative or assignee, to anyone other than one or more surviving partners or stockholders or new partners or stockholders of the licensee, or any combined or merged firm or successor in interest to the licensee. Nothing in this section shall be construed as prohibiting any temporary transfer of workpapers or other material necessary in the course of carrying out quality reviews.

      (b) A licensee shall return a client's original records to his client or former client upon the client's request and reasonable notice in accordance with the regulations of the board and any accounting or other records belonging to, or obtained from or on behalf of, the client that the licensee removed from the client's premises or received for the client's account. The licensee may make and retain copies of such documents of the client when such documents form the basis for work done by him. A licensee shall provide such other records to a client or former client as the board may provide by regulation.

      (c) Nothing in this section shall require a licensee to keep any workpaper beyond the period prescribed in any other applicable statute, except that any workpaper prepared by a licensee in the course of an audit of a corporation the securities of which are registered under Section 12 of the Securities Exchange Act of 1934, as from time to time amended, or that is required to file reports under Section 15(d) of the Securities Exchange Act of 1934, as from time to time amended, shall be retained for the period described in section 33-1332.

      (P.A. 92-212, S. 16; P.A. 03-259, S. 43; P.A. 04-56, S. 4.)

      History: P.A. 03-259 amended Subsec. (c) by adding exception to require workpaper prepared by licensee in course of audit of publicly held corporation to be retained for period described in Sec. 33-1332; P.A. 04-56 amended Subsec. (c) by replacing reference to "publicly held corporation" with provision re corporation subject to securities registration or reporting requirements under the Securities Exchange Act of 1934 and by making a technical change, effective May 10, 2004.

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      Sec. 20-281l. Contingent fees and referrals. (a) Except as expressly permitted by this section, a licensee shall not: (1) Pay a fee or commission to obtain a client; or (2) accept a fee or commission for referring a client to the products or services of a third party.

      (b) A licensee, who is not performing any of the services set forth in subsection (c) of this section and who complies with the provisions of subsection (d) of this section, may accept a fee or commission for referring a client to the products or services of a third party if such referral is made in conjunction with professional services provided to the client by such licensee making such referral. Nothing in this subsection shall be construed to permit the solicitation or acceptance of a fee or commission solely for the referral of a client to a third party.

      (c) A licensee shall not perform services for a client for a commission and shall not accept a commission from a client during the period that the licensee is performing for such client any of the following services or during the period that is covered by any historical financial statements that are involved in any of the following services: (1) An audit or review of a financial statement; (2) a compilation of a financial statement if the licensee expects or has reasonable cause to expect that a third party will use the financial statement and the compilation report does not disclose a lack of independence; or (3) an examination of prospective financial information.

      (d) A licensee who is not prohibited under this section from performing services for a fee or commission or from accepting a fee or commission and who is paid or expects to be paid a fee or commission shall disclose such payment or expectation to any client or other person to whom such licensee recommends or refers a product or service to which the fee or commission relates.

      (e) As used in this section, "fee" includes, but is not limited to, a commission, rebate, preference, discount or any other consideration.

      (f) This section does not prohibit payments for the purchase of all, or a material part, of an accounting practice, or retirement payments to individuals who are or were formerly engaged in the practice of public accountancy, or payments to the heirs or estates of such individuals.

      (g) Nothing in this section shall be construed to relieve a licensee from any requirement under federal or state law that obligates such licensee to obtain a license or authorization prior to referring a client to the products or services of a third party, including, but not limited to, any license requirements under federal or state securities or insurance laws.

      (P.A. 92-212, S. 17; P.A. 00-42, S. 1; P.A. 01-195, S. 81, 181.)

      History: P.A. 00-42 designated existing provisions as Subsec. (a), adding references to fees, making technical changes, limiting collection of fees and commissions by provisions of this section, and deleting provisions preventing collection of commission when party likely to be influenced by status of licensee and language re purchase of accounting practice or retirement payments, and added Subsecs. (b) to (g), inclusive, re acceptance of fee or commission for a referral, prohibiting commission during period covered by historical financial statements, re disclosure, defining "fee", re purchase of accounting practice or retirement payments and re federal or state law requirements, respectively; P.A. 01-195 made a technical change in Subsec. (c), effective July 11, 2001.

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      Sec. 20-281m. Contingent fees. (a) A licensee shall not, during any period in which the licensee is engaged to perform any of the services listed in this subsection or during any period covered by any historical financial services involved in any of such services: (1) Perform for a contingent fee any of the following professional services, or accept a contingent fee from a client for whom the licensee performs any of the following services: (A) An audit or review of a financial statement; (B) a compilation of a financial statement if the licensee expects or has reasonable cause to expect that a third party will use the financial statement and the licensee's compilation report does not disclose a lack of independence; or (C) an examination of prospective financial information, or (2) prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.

      (b) As used in this section, "contingent fee" means a fee for the performance of a service that will not be charged unless a specified finding or result is attained or in which the amount of the fee is dependent on a specified finding or result of such service. "Contingent fee" does not include: (1) A fee fixed by courts or other public authorities; (2) a fee in a tax matter that is based on the results of judicial proceedings or the findings of governmental agencies; or (3) a fee that varies based solely on the complexity of the services rendered.

      (c) A contingent fee arrangement between a licensee and a client shall be in writing and shall state the method by which the fee is determined.

      (P.A. 92-212, S. 18; P.A. 00-42, S. 2.)

      History: P.A. 00-42 deleted former provisions re contingent fees, added new Subsec. (a) prohibiting contingent fees during certain periods for certain services, added new Subsec. (b) defining "contingent fee" and added new Subsec. (c) re contingent fee arrangement.

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      Secs. 20-282 to 20-287. Certified public accountants; examination and fees; reciprocity. Limited permits; regulations. Authority for veterans to practice as public accountants; qualifications; time limit for issuance. Licenses, renewal; fee. Practice of accountancy by professional corporations. Use of titles restricted. Regulations re revocation or suspension of certificate, authority, license or permit; reissuance; appeal. Excepted persons. Sections 20-282 to 20-287, inclusive, are repealed.

      (1949 Rev., S. 4611-4614; 1955, S. 2296d-2302d; 1959, P.A. 615, S. 25, 26; 616, S. 70; 1971, P.A. 870, S. 67; June, 1971, P.A. 8, S. 84, 85; 1972, P.A. 127, S. 49, 50; 223, S. 26; P.A. 73-504; P.A. 74-183, S. 239, 291; P.A. 76-113, S. 12, 13; 76-435, S. 26, 82; 76-436, S. 208, 681; P.A. 77-259, S. 1, 2; 77-475, S. 1-3; 77-603, S. 79, 125; 77-614, S. 211, 212, 610; P.A. 78-255, S. 1, 2, 4-7, 9, 10; 78-280, S. 5, 127; P.A. 81-203, S. 3, 4; 81-361, S. 6 -9, 39; P.A. 82-417, S. 2, 3; 82-419, S. 6-10, 47; P.A. 83-22, S. 1; 83-487, S. 12, 13, 33; P.A. 84-546, S. 58, 173; P.A. 85-504, S. 7-11, 15; P.A. 88-230, S. 1, 12; P.A. 89-251, S. 114-116, 203; P.A. 90-98, S. 1, 2; 90-170, S. 2, 3; P.A. 92-212, S. 21.)

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