OKLAHOMA ACCOUNTANCY ACT OKLAHOMA ADMINISTRATIVE

OKLAHOMA

ACCOUNTANCY

ACT

TITLE 59 OKLAHOMA STATUTES

SECTIONS 15.1 THROUGH 15.38

AMENDMENTS EFFECTIVE NOVEMBER 1, 2023

OKLAHOMA

ADMINISTRATIVE

CODE

TITLE 10

AMENDMENTS EFFECTIVE NOVEMBER 14, 2023

OKLAHOMA ACCOUNTANCY BOARD

201 NW 63

rd

, Suite 210

Oklahoma City, Oklahoma 73116

405-521-2397

REVISED 2023

OKLAHOMA ACCOUNTANCY ACT

2

INDEX

MOST FREQUENTLY ACCESSED PROVISIONS

Act: Oklahoma Accountancy Act

Code: Title 10. Oklahoma Administrative Code

Act

Page

Code

Page

Attest Engagements in

Accordance with Gov’t

Auditing Standards

10:15-

43 162

Initial Certificate/Licensing

Issuance

15.9 25

10:15-3-2

74

Ethics Exam Requirement

15.9(F) 27

10:15-3-2

75

Experience Requirement

15.9 (E) 26

10:15-3-2

74

Change Status/Address

15.14(G) 39

CPE

15.35 57

10:15-

30 109

Ethics Requirement

10:15-30-5(c)

112

Exceptions

10:15-30-8

115

Records Retention

10:15-30-5(f)

112

Re-entering Active Status

10:15-30-9

117

CPE Program Standards

10:15-

32 119

Permit Issuance

10:15-30-2

110

Program Measurement

10:15-32-5

130

Definitions –General

15.1A

4

10:15-1-2

66

Definitions – Peer Review

10:15-33-2

135

Definitions – Practice of

Public Accounting

15.14A(34)

10

Enforcement

Procedures

10:15-

37 145

Acts

Subject

to

Penalty

15.14B 41

Convictions/Pleas

10:15-37-11

153

Filling Formal Complaint

10:15-37-5

148

Hearing/Penalties/Fines

15.23 50

Examination

15.10 28

Application

10:15-18-1

79

Cheating

10:15-18-15

86

Credit

10:15-18-3

80

Education

15.8 24

10:15-18-4

81

OKLAHOMA ACCOUNTANCY ACT

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Failure to Sit

10:15-18-14

86

Security

and

Irregularities

10:15-18-16

89

Fees

Various

10:15-

27 104

Firms

15.15A 43

Change in Firm

15.15A (C) 44

D/B/A

10:15-39-8.1

159

Names

10:15-39-8.1

158

Designated Manager

15.15B 46

Revoke/Suspend Firms

15.16 49

Service Provided by

Unregistered Firm

15.15C 48

Internet Practice

10:15-

20 89

Military Waiver

15.38 58

10:15-23-1

94

Mobility

15.12A 31

10:15-

22 94

Peer

Review

15.30 56

10:15-

33 134

Penalties

15.24 50

Permit

Individual

15.14A 40

10:15-25-3

100

Firm

15.15A 43

10:15-25-4

101

Practice Privileges

15.12A 31

10:15-

22 94

Professional Conduct Rules

10:15-

39 155

Reciprocity

15.13 34

10:15-

21 90

Foreign

15.13A 36

10:15-21-7

93

Registration

Individuals

15.14 37

10:15-23-1

94

Firms

15.15 42

10:15-23-2

96

Reinstatement –Individual

15.24 50

10:15-

35 144

SE-Substantial Equivalency

15.12A 31

10:15-

22 94

Transition to Public Practice

10:15-25-5

102

Use

of

Titles

or

Abbreviations

15.11

28

Written Communications

10:15-39-8.2

160

OKLAHOMA ACCOUNTANCY ACT

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[59 Oklahoma Statutes, Sections 15.1 through 15.38]

Section 15.1. Short title-Declaration of policy

Section 15.1 et seq. of this title shall be known and may be

cited as the “Oklahoma Accountancy Act”.

In order to protect the citizens of this state, the Legislature

hereby declares that it is the policy of this state, and the purpose of

this act, to promote the reliability of information that is used for

guidance in financial transactions or for accounting for or assessing

the financial status or performance of commercial, noncommercial

and governmental enterprises. The public interest requires that

persons professing special competence in accountancy or offering

assurance as to the reliability or fairness of presentation of such

information shall have demonstrated their qualifications to do so, that

persons who have not demonstrated and maintained such

qualifications, not be permitted to represent themselves as having

such special competence or to offer such assurance, that the conduct

of registrants as having special competence in accountancy be

regulated in all aspects of their professional work, that a public

authority competent to prescribe and assess the qualifications and to

regulate the conduct of registrants be established, and that the use of

titles that have a capacity or tendency to deceive the public as to the

status or competence of the persons using such titles be prohibited.

Section 15.1A. Definitions

As used in the Oklahoma Accountancy Act:

1. “Accountancy” means the profession or practice of

accounting;

2. “AICPA” means the American Institute of Certified

Public Accountants;

OKLAHOMA ACCOUNTANCY ACT

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3. “Applicant” means an individual or entity that has

made application to the Board for a certificate or permit and the

application has not been approved;

4. “Assurance” means independent professional services

that improve the quality of information, or its context, for decision

makers;

5. “Attest” means providing the following services:

a. any audit or other engagement to be performed in

accordance with the Statements on Auditing

Standards (SAS),

b. any review of a financial statement to be

performed in accordance with the Statements on

Standards for Accounting and Review Services

(SSARS),

c. any examination of prospective financial

information to be performed in accordance

with the Statements on Standards for

Attestation Engagements (SSAE),

d. any engagement to be performed in accordance

with the Auditing Standards of the Public

Company Accounting Oversight Board

(PCAOB), and

e. any engagements, review, or agreed upon

procedures engagement to be performed in

accordance with the SSAE, other than the

exceptions described in subparagraph c of

paragraph 34 of this section.

The statements on standards specified in this definition shall

be adopted by reference by the Board pursuant to rulemaking and

shall be those developed for general application by recognized

national accountancy organizations, such as the AICPA, IFAC and

the PCAOB;

OKLAHOMA ACCOUNTANCY ACT

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6. “Audit” can only be performed by an individual or

entity who is registered with the Board and holding a valid permit

issued pursuant to the Oklahoma Accountancy Act, or an entity that is

exempt from registration under paragraph 3 of subsection A of Section

15.15 of this title or an individual granted practice privileges under

Section 15.12A of this title, and means a systematic investigation or

appraisal of information, procedures, or operations performed in

accordance with generally accepted auditing standards in the United

States, for the purpose of determining conformity with established

criteria and communicating the results to interested parties;

7. “Board” means the Oklahoma Accountancy Board;

8. “Candidate” means an individual who has been

qualified and approved by the Board to take the examination for a

certificate;

9. “Certificate” means the Oklahoma document issued by

the Board to a candidate upon successful completion of the certified

public accountant examination designating the holder as a certified

public accountant pursuant to the laws of Oklahoma. Certificate

shall also mean the Oklahoma document issued by reciprocity to an

individual who has previously been certified in another jurisdiction;

10. “Certified public accountant” means any person who

has received a certificate from the Board or other jurisdictions;

11. “Client” means the individual or entity which retains a

registrant, an individual granted practice privileges under Section

15.12A of this title, or a firm exempt from the permit and

registration requirements under Section 15.15C of this title, which

also is exempt from the registration requirement of paragraph 3 of

subsection A of Section 15.15 of this title, to perform professional

services;

12. “Compilation” when used with reference to financial

statements, means presenting information in the form of financial

statements which is the representation of management or owners

without undertaking to express any assurance on the statements;

OKLAHOMA ACCOUNTANCY ACT

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13. “CPA” or “C.P.A.” means certified public accountant;

14. “Designated manager” means the Oklahoma certified

public accountant or public accountant appointed by the firm

partners or shareholders to be responsible for the administration of

the office;

15. “Designee” means the National Association of State

Boards of Accountancy (NASBA) or other entities so designated by

the Board;

16. “Entity” means an organization whether for profit or not,

recognized by this state to conduct business;

17. “Examination” means all or any part of the Uniform

Certified Public Accountant Examination developed and scored by

the American Institute of Certified Public Accountants as approved or

designated by the Board;

18. “Executive director” means the chief administrative

officer of the Board;

19. “Financial statements” means statements and footnotes

related thereto that undertake to present an actual or anticipated

financial position as of a point in time, or results of operations, cash

flow, or changes in financial position for a period of time, in

conformity with generally accepted accounting principles or another

comprehensive basis of accounting. The term does not include

incidental financial data included in management advisory service

reports to support recommendations to a client; nor does it include

tax returns and supporting schedules;

20. “Firm”

means

an

entity

that

is

either

a

sole

proprietorship, partnership, professional limited liability company,

professional limited liability partnership, limited liability

partnership or professional corporation, or any other professional

form of organization organized under the laws of this state or the

laws of another jurisdiction and issued a permit in accordance with

Section 15.15A of this title or exempt from the permit

OKLAHOMA ACCOUNTANCY ACT

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requirement under Section 15.15C of this title, which also is

exempt from the registration requirement of paragraph 3 of

subsection A of Section 15.15 of this title, including individual

partners or shareholders, that is engaged in accountancy;

21. “Holding out” means any representation by an individual

that he or she holds a certificate or license and a valid permit, or by an

entity that it holds a valid permit. Any such representation is

presumed to invite the public to rely upon the professional skills

implied by the certificate or license and valid permit in connection

with the services or products offered;

22. “Home office” means the location specified by the client

as the address to which a service described in Section 15.12A of this

title is directed;

23. “IFAC” means the International Federation of

Accountants;

24. “Individual” means a human being;

25. “Jurisdiction” means any state or territory of the United

States and the District of Columbia;

26. “License” means the Oklahoma document issued by the

Board to a candidate upon successful completion of the public

accountant examination designating the holder as a public

accountant pursuant to the laws of this state. License shall also

mean the Oklahoma document issued by the Board by reciprocity to a

public accountant who has previously been licensed by

examination in another jurisdiction;

27. “Management advisory services”, also known as

“management consulting services”, “management services”,

“business advisory services” or other similar designation,

hereinafter collectively referred to as “MAS”, means the function of

providing advice and/or technical assistance, performed in

accordance with standards for MAS engagements and MAS

consultations such as those issued by the American Institute of

Certified Public Accountants, where the primary purpose is to help

OKLAHOMA ACCOUNTANCY ACT

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the client improve the use of its capabilities and resources to achieve

its objectives including but not limited to:

a. counseling management in analysis, planning,

organizing, operating, risk management and

controlling functions, conducting special

studies, preparing recommendations,

proposing plans and programs, and

providing advice and technical assistance in

their implementation,

b. reviewing and suggesting improvement of

policies, procedures, systems, methods, and

organization relationships, and

c. introducing new ideas, concepts, and methods

to management.

MAS shall not include recommendations and comments

prepared as a direct result of observations made while performing

an audit, review, or compilation of financial statements or while

providing tax services including tax consultations;

28. “NASBA” means the National Association of State

Boards of Accountancy;

29. “PA” or “P.A.” means public accountant;

30. “Partnership” means a contractual relationship based

upon a written, oral, or implied agreement between two or more

individuals who combine their resources and activities in a joint

enterprise and share in varying degrees and by specific agreement

in the management and in the profits or losses. A partnership may

be general or limited as the laws of this state define those terms;

31. “PCAOB” means the Public Company Accounting

Oversight Board;

32. “Peer review” means a review performed pursuant to

a set of peer review rules established by the Board. The term peer

review also encompasses the term “quality review”;

33. “Permit” means the written authority granted annually

OKLAHOMA ACCOUNTANCY ACT

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by the Board to individuals or firms to practice public accounting in

this state, which is issued pursuant to the Oklahoma Accountancy

Act;

34. a. “Practice of public accounting”, also known as

“practice public accounting”, “practice” and

“practice accounting”, refers to the activities of

34. a registrant, an individual granted practice

privileges under Section 15.12A of this title, or

a firm exempt from the permit and registration

requirements under Section 15.15C of this title

in reference to accountancy. An individual or

firm shall be deemed to be engaged in the

practice of public accounting if the individual

or firm holds itself out to the public in any

manner as one skilled in the knowledge,

science, and practice of accounting and

auditing, taxation and management advisory

services and is qualified to render such

professional services as a certified public

accountant or public accountant, and performs

the following:

(1) maintains an office for the transaction of

business as a certified public accountant

or public accountant,

(2) offers to prospective clients to perform or

who does perform on behalf of clients

professional services that involve or

require an audit, verification,

investigation, certification, presentation,

or review of financial transactions and

accounting records or an attestation

concerning any other written assertion,

(3) prepares or certifies for clients reports on

OKLAHOMA ACCOUNTANCY ACT

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audits or investigations of books or

records of account, balance sheets, and

other financial, accounting and related

schedules, exhibits, statements, or reports

which are to be used for publication or for

(3) the purpose of obtaining credit, or for

filing with a court of law or with any

governmental agency, or for any other

purpose,

(4) generally or incidentally to the work

described herein, renders professional

services to clients in any or all matters

relating to accounting procedure and to

the recording, presentation, or

certification of financial information or

data,

(5) keeps books, or prepares trial balances,

financial statements, or reports, all as a

part of bookkeeping services for clients,

(6) prepares or signs as the tax preparer, tax

returns for clients, consults with clients

on tax matters, conducts studies for

clients on tax matters and prepares

reports for clients on tax matters, unless

the services are uncompensated and are

limited solely to the registrant’s, or the

registrant’s spouse’s lineal and collateral

heirs,

(7) prepares personal financial or investment

plans or provides to clients products or

services of others in implementation of

personal financial or investment plans, or

(8) provides management advisory services

OKLAHOMA ACCOUNTANCY ACT

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to clients.

b. Except for an individual granted practice

privileges under Section 15.12A of this title or

a firm exempt from the permit and registration

b. requirements under Section 15.15C of this

title, an individual or firm not holding a

certificate, license or permit shall not be

deemed to be engaged in the practice of public

accounting if the individual or firm does not

hold itself out, solicit, or advertise for clients

using the certified public accountant or public

accountant designation and engages only in the

following services:

(1) keeps books, or prepares trial balances,

financial statements, or reports,

provided such instruments do not use

the terms “audit”, “audited”, “exam”,

“examined”, “review” or “reviewed”

or are not exhibited as having been

prepared by a certified public

accountant or public accountant.

Except for an individual granted

practice privileges under Section

15.12A of this title or a firm exempt

from the permit and registration

requirements under Section 15.15C of

this title, nonregistrants may use the

following disclaimer language in

connection with financial statements

and be in compliance with the

Oklahoma Accountancy Act: “I (we)

have not audited, examined or

OKLAHOMA ACCOUNTANCY ACT

13

reviewed the accompanying financial

statements and accordingly do not

express an opinion or any other form

of assurance on them.”,

(2) prepares or signs as the tax preparer,

tax returns for clients, consults with

clients on tax matters, conducts studies

for clients on tax matters and prepares

reports for clients on tax matters,

(3) prepares personal financial or

investment plans or provides to clients

products or services of others in

implementation of personal financial or

investment plans, or

(4) provides management advisory

services to clients.

c. Only permit holders, individuals granted

practice privileges under Section 15.12A of

this title, or firms exempt from the permit and

registration requirements under Section

15.15C of this title, who also meet the

requirements of paragraph 3 of subsection A

of Section 15.15 of this title, may render or

offer to render any attest service, as defined

herein, or issue a report on financial

statements which purport to be in compliance

with the Statements on Standards for

Accounting and Review Services (SSARS).

This restriction shall not prohibit any act of a

public official or public employee in the

performance of that person’s duties. This

restriction shall not be construed to prohibit

the performance by any unlicensed individual

OKLAHOMA ACCOUNTANCY ACT

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of other services as set out in subparagraph b

of this paragraph.

d. A person is not deemed to be practicing public

accounting within the meaning of this section

solely by displaying an Oklahoma CPA

certificate or a PA license in

an

office,

d. identifying himself or herself as a CPA or PA

on letterhead or business cards, or identifying

himself or herself as a CPA or PA. However,

the designation of CPA or PA on such

letterheads, business cards, public signs,

advertisements, publications directed to clients

or potential clients, financial or tax documents

of a client, performance of any attest service or

issuance of a report constitutes the practice of

public accounting and requires a permit,

practice privileges under Section 15.12A of

this title, or an exemption from the permit and

registration

requirements under Section

d. 15.15C of this title;

35. “Preissuance review” means a review preformed

pursuant to a set of procedures that include review of engagement

document, report, and clients’ financial statements in order to permit

the reviewer to assess compliance with all applicable professional

standards;

36. “Principal place of business” means the office location

designated by the licensee for the purposes of substantial

equivalency and reciprocity;

37. “Professional corporation” means a corporation

organized pursuant to the laws of this state;

38. “Professional” means arising out of or related to the

specialized knowledge or skills associated with CPAs or PAs;

OKLAHOMA ACCOUNTANCY ACT

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39. “Public accountant” means any individual who has

received a license from the Board;

40. “Public interest” means the collective well-being of the

community of people and institutions the profession serves;

41. “Qualification applicant” means an individual who has

made application to the Board to qualify to become a candidate for

examination;

42. “Registrant” means a CPA, PA, or firm composed of

certified public accountants or public accountants or combination of

both currently registered with the Board pursuant to the authority of

the Oklahoma Accountancy Act;

43. “Report”, when used with reference to any attest or

compilation service, means an opinion, report or other form of

language that states or implies assurance as to the reliability of the

attested information or compiled financial statements, and that also

includes or is accompanied by any statement or implication that the

person or firm issuing it has special knowledge or competence in

accounting or auditing. Such a statement or implication of special

knowledge or competence may arise from use by the issuer of the

report of names or titles indicating that the person or firm is an

accountant or auditor, or from the language of the report itself. The

term report includes any form of language which disclaims an

opinion when such form of language is conventionally understood

to imply any positive assurance as to the reliability of the attested

information or compiled financial statements referred to and/or

special competence on the part of the person or firm issuing such

language; and it includes any other form of language that is

conventionally understood to imply such assurance and/or such

special knowledge or competence. This definition is not intended to

include a report prepared by a person not holding a certificate or

license or not granted practice privileges under Section 15.12A of

this title. However, such report shall not refer to “audit”, “audited”,

“exam”, “examined”, “review” or “reviewed”, nor use the language

OKLAHOMA ACCOUNTANCY ACT

16

“in accordance with standards established by the American Institute

of Certified Public Accountants” or successor of this entity, or

governmental agency approved by the Board, except for the Internal

43. Revenue Service. Except for an individual granted practice

privileges under Section 15.12A of this title or a firm exempt from

the permit and registration requirements under Section 15.15C of

this title, nonregistrants may use the following disclaimer language

in connection with financial statements not to be in violation of the

Oklahoma Accountancy Act: “I (we) have not audited, examined,

or reviewed the accompanying financial statements and accordingly

do not express an opinion or any other form of assurance on them.”;

44. “Representation” means any oral or written

communication including but not limited to the use of title or

legends on letterheads, business cards, office doors, advertisements,

and listings conveying the fact that an individual or entity holds a

certificate, license or permit;

45. “Review”, when used with reference to financial

statements, means a registrant or an individual granted practice

privileges under Section 15.12A of this title, which also meets the

requirements of paragraph 3 of subsection A of Section 15.15 of

this title, or a firm exempt from the permit and registration

requirements under Section 15.15C of this title performing inquiry

and analytical procedures that provide the registrant with a

reasonable basis for expressing limited assurance that there are no

material modifications that should be made to the statements in

order for them to be in conformity with generally accepted

accounting principles or, if applicable, with another comprehensive

basis of accounting; and

46. “Substantial equivalency” is a determination by the

Oklahoma Accountancy Board or its designee that:

a. the education, examination and experience

requirements contained in the statutes and

administrative rules of another jurisdiction are

OKLAHOMA ACCOUNTANCY ACT

17

comparable to, or exceed, the education,

examination and experience requirements

contained in the AICPA/NASBA Uniform

Accountancy Act, or

b. that an individual certified public accountant’s

or public accountant’s education, examination

and experience qualifications are comparable

to or exceed the education, examination and

experience requirements contained in the

Oklahoma Accountancy Act and rules of the

Board.

In ascertaining substantial equivalency as used in the

Oklahoma Accountancy Act, the Board or its designee shall take

into account the qualifications without regard to the sequence in

which experience, education, or examination requirements were

attained.

Section 15.2. Oklahoma Accountancy Board-Membership-

Qualifications-Terms

A. There is hereby re-created, to continue until July 1, 2028,

in accordance with the provisions of the Oklahoma Sunset Law, the

Oklahoma Accountancy Board. The Oklahoma Accountancy Board

shall have the responsibility for administering and enforcing the

Oklahoma Accountancy Act. The Oklahoma Accountancy Board

shall be composed of seven (7) members, who shall have

professional or practical experience in the use of accounting services

and financial matters, so as to be qualified to make judgments about

the qualifications and conduct of persons and firms subject to

regulation under the Oklahoma Accountancy Act to be appointed by

the Governor and confirmed by the Senate. The number of

registrant members shall not be more than five, not including a firm,

who shall serve terms of five (5) years. No member who has served

two successive complete terms shall be eligible for reappointment,

OKLAHOMA ACCOUNTANCY ACT

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but an appointment to fill an unexpired term shall not be considered a

complete term for this purpose. One public member shall serve

coterminously with the Governor appointing the public member.

The other public member shall serve a term of five (5) years.

B. Five members shall be certified public accountants holding

certificates and four shall hold permits issued pursuant to the

provisions of the Oklahoma Accountancy Act, at least four of whom

shall have been engaged in the practice of public accounting as a

certified public accountant continuously for not less than five (5) out

of the last fifteen (15) years immediately preceding their

appointments. A list of qualified persons shall be compiled and

submitted to the Governor by the Oklahoma Society of Certified

Public Accountants from time to time as appointments of the

certified public accountant Board members are required. A list of

three (3) names shall be submitted for each single appointment from

which the Governor may make the appointment.

C. Two members shall be public members who are not

certified public accountants. One public member shall be appointed

by the Governor to a term coterminous with the Governor, to serve at

his or her pleasure. The other public member shall serve a term of

five (5) years and have professional or practical experience in the use

of accounting services and financial matters. A list of qualified

persons shall be compiled and submitted to the Governor by the

Oklahoma Society of Public Accountants, Oklahoma Society of

Certified Public Accountants, or successor organizations from time

to time as appointment of the Board member is required. A list of

three (3) names shall be submitted for each single appointment from

which the Governor may make the appointment.

D. Upon the expiration of the term of office, a member shall

continue to serve until a qualified successor has been appointed.

Confirmation by the Senate is required during the next regular

session of the Senate for the member to continue to serve.

OKLAHOMA ACCOUNTANCY ACT

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Section 15.3. Vacancies-Disqualification-Removal

A. Vacancies on the Board due to death, resignation, or

removal as defined in subsections C and D of this section occurring

during a term shall be filled by the Governor for the unexpired

portion of said term in a manner as provided for appointments to the

Board. Members filling the remainder of a term of a member who

has died, resigned, or been removed shall assume office

immediately upon appointment by the Governor and shall serve

until confirmation or denial of confirmation by the Senate.

B. A member of the Board shall become disqualified from

serving if that member:

1. Is a registrant member whose certificate, license, or

permit pursuant to the laws of this state has become void or has

been revoked or suspended;

2. Is a registrant member or public member who has

moved from this state;

3. Has been convicted, pled guilty or nolo contendere to

a felony pursuant to the laws of the United States or any

jurisdiction;

4. Has become medically incapacitated as determined in

writing by a medical doctor upon request by the Board; or

5. Has been absent from three meetings, or is absent for

more than one-half (1/2) the number of minutes for which a

meeting is conducted of three meetings as determined by the Board

during any twelve-month period, unless such absence is

determined to be unavoidable in the opinion of a majority of the

remaining members.

C. Removal pursuant to the provisions of this section shall

be accomplished by a majority vote of the remaining members.

Upon said vote, a written notification shall be sent to the Governor

setting out the dates of absences or other grounds for removal and

OKLAHOMA ACCOUNTANCY ACT

20

the fact of the disqualification of the member. Upon receipt of the

written notification, the Governor shall appoint another member in

the manner provided for appointments to the Board.

D. The Governor may, after a hearing conducted in

accordance with the provisions of the Administrative Procedures

Act, remove any member of the Board for misconduct regarding

responsibilities and duties of the member, incompetence, or neglect

of duty. Removal pursuant to the provisions of this subsection shall

occur upon the Governor filing a written statement of findings after

the hearing as to the reasons and basis for removal of the member

with the Secretary of the Board.

Section 15.4. Officers—Meetings—Duties

A. The Oklahoma Accountancy Board shall elect from its

membership a chair, a vice-chair and a secretary. The officers of the

Board shall be elected each May, to take office on July 1 following

the election, and shall hold office for a term of one (1) year.

B. The chair shall preside at all meetings of the Board, call

special meetings of the Board as are necessary, sign all certificates

and licenses and perform such other duties as the Board shall direct.

C. The vice-chair shall exercise the powers of and perform

the duties of the chair in the absence or disability of the chair, and

perform such other duties as the Board shall direct.

D. The secretary shall preside at any meeting in the absence

of the chair and vice-chair, validate minutes of all of the meetings

of the Board, in the manner prescribed in the rules of the Board,

supervise the maintenance of the records of the Board, including the

register of individuals and firms authorized to practice public

accounting in this state, and a record of all examination grades. The

secretary shall perform such other duties as the Board shall direct.

E. At any regular or special meeting at which none of the

officers are in attendance, the members of the Board in attendance

shall elect a member to preside at that meeting.

OKLAHOMA ACCOUNTANCY ACT

21

Section 15.5. Quorum-Seal-Records-Staff-Expenditures-Rules

and regulations-Delegation of authority

A. The Oklahoma Accountancy Board shall be responsible for

the administration and enforcement of the Oklahoma Accountancy

Act. A majority of the Board shall constitute a quorum for the

transaction of business.

B. In addition to the other duties imposed on the Board by

law, the Board shall:

1. Have a seal that shall be judicially noticed and shall

be affixed to all certificates and licenses, and such other documents

as the Board deems appropriate;

2. Keep correct records of all official proceedings

including minutes of meetings, applications and related documents

of applicants, registry of the names and addresses of registrants,

official documents filed in any hearings conducted by the Board

and in any proceeding in any court arising out of any provision of

the Oklahoma Accountancy Act or the rules and regulations

adopted by the Board. Copies of said records certified by the

secretary under the seal of the Board shall, if material, be

admissible in evidence;

3. Employ such executive staff as may be necessary to

implement and administer the Oklahoma Accountancy Act, to fix

and pay their salaries or fees. Such executive staff shall include an

Executive Director, Deputy Director and legal counsel. The Board

shall have the authority to employ other staff and contract with or

hire special prosecutors, investigators, expert witnesses, hearing

examiners and clerical personnel in furtherance of its duties under

the Oklahoma Accountancy Act;

4. Lease office space and pay the rent thereon, purchase

office equipment and supplies, and make such other expenditures

as are necessary for the administration and enforcement of the

provisions of the Oklahoma Accountancy Act;

OKLAHOMA ACCOUNTANCY ACT

22

5. Pay the costs of such research programs in accounting

and other subjects as in the determination of the Board would be

beneficial to registrants; and

6. Adopt rules and regulations for the implementation of

the provisions of the Oklahoma Accountancy Act in accordance

with the procedures prescribed in the Administrative Procedures

Act.

C. The Board may delegate to the executive director the

authority to employ other staff and clerical personnel.

Section 15.6. Repealed by Laws 1985, c. 178, § 81, operative

July 1, 1985

Section 15.6A. Confidentiality of investigations-Use as

evidence-Disclosure of information

A. The Oklahoma Accountancy Board, its employees,

independent contractors, appointed committee members or other

agents shall keep confidential all information obtained during an

investigation into allegations of violations of the Oklahoma

Accountancy Act, including any review or investigation made to

determine whether to allow an applicant to take an examination, or

whether the Board shall grant a certificate, license, or permit. All

information obtained in the course of conducting a peer review,

including peer review reports provided to the Board by a registrant,

examinations and test scores shall also be held confidential by the

Board, its employees and independent contractors.

B. To ensure the confidentiality of such information for the

protection of the affected individual or entity, the information

obtained shall not be deemed to be a “record” as that term is

defined in the Oklahoma Open Records Act.

C. Rules adopted to implement the provisions of this

subsection shall assure the privacy of the information obtained.

Such rules shall include but not be limited to:

OKLAHOMA ACCOUNTANCY ACT

23

1. Assuring availability of the information for inspection

by the individual or entity affected or their designated

representatives during the normal business hours of the Board;

2. A method for obtaining a written release for the

affected individual or entity to allow inspection of their

confidential records to the public at large; and

3. A method for making available to the public all final

written orders of the Board concerning an individual or entity.

D. Information obtained by the Board or any of its agents as

set out in subsection A of this section shall be considered competent

evidence in a court of competent jurisdiction only in matters directly

related to actions of the Board and the affected individual or entity

as a result of the Board obtaining the information. Such information

shall not be admissible as evidence in any other type of civil or

criminal action.

E. The Board may disclose information concerning

investigations into allegations of violations of the Oklahoma

Accountancy Act under this section to another governmental,

regulatory, or law enforcement agency engaged in an enforcement

action. The provisions of this subsection shall not apply to

information concerning whether to allow an applicant to take an

examination, peer review or test scores.

Section 15.7. Disbursement of fees and monies

All fees and other monies except the fines as provided in

Section 15.24 of this title received by the Board pursuant to the

provisions of the Oklahoma Accountancy Act shall be expended

solely for effectuating the purposes of the Oklahoma Accountancy

Act and shall be deposited to the credit of the Board with the

Oklahoma State Treasurer. After the close of each fiscal year the

Board shall file with the Governor a report of all fees charged,

collected and received and all disbursements during the previous

fiscal year. The Board shall pay into the General Revenue Fund of

OKLAHOMA ACCOUNTANCY ACT

24

the state ten percent (10%) of all annual registration fees so charged,

collected and received, and no other portion shall ever revert to the

General Revenue Fund or any other fund of the state.

All salaries, fees, and other expenses incurred by the Board in

the performance of the duties imposed by the provisions of the

Oklahoma Accountancy Act shall be paid from the Board’s

Revolving Fund and none of said expenses shall be a charge against

the general funds of this state.

Section 15.8. Application to take examination-Format-Fees-

Qualifications

A. A qualification applicant to qualify as a candidate for

examination shall file an application for qualification in a format

approved by the Oklahoma Accountancy Board. The fee for the

qualification application shall be determined by the Board and shall

not exceed Three Hundred Dollars ($300.00). Every qualification

applicant to qualify as a candidate for the certificate of certified

public accountant shall submit to a national criminal history record

search, must be a resident of this state immediately prior to making

application and, except as otherwise provided in this section, shall

meet the education and experience requirements provided in this

section. The costs associated with the national criminal history

records search shall be paid by the applicant.

B. On or after the effective date of this act, every

qualification applicant to qualify as a candidate for examination for

the certificate of certified public accountant shall have at least one

hundred twenty (120) semester hours, or the equivalent thereof, of

college education including a baccalaureate or higher degree, or the

equivalent thereof, conferred by a college or university acceptable

to the Board from an accredited four-year college or university in

this state or any other accredited four-year college or university

recognized by the Board. The total educational program of the

applicant for examination shall include an accounting

OKLAHOMA ACCOUNTANCY ACT

25

concentration or its equivalent as determined acceptable by the

Board which shall include not less than twenty-four (24) semester

hours, or the equivalent thereof, in accounting courses above

principles of accounting or introductory accounting, with at least

one course in auditing or assurance; the remaining accounting

courses shall be selected from financial accounting, accounting

theory, cost/managerial accounting, federal income tax,

governmental, not-for-profit accounting, accounting information

systems, accounting history and other accounting electives; at least

nine (9) semester hours shall be from any or all of the subjects of

economics, statistics, business law, finance, business management,

marketing, business communication, risk management, insurance,

management information systems or computer science at the

upper- division level of college or above or the equivalent of such

subjects as determined by the Board; all the remaining semester

hours, if any, shall be elective.

C. The costs associated with the national criminal history

record check shall be paid by the applicant.

Section 15.9. Issuance of certificates or licenses

A. Upon payment of appropriate fees, the Oklahoma

Accountancy Board shall grant a certificate to any individual of

good character who meets the applicable education, experience and

testing requirements provided for in this section and in Sections

15.8 and 15.10 of this title. For purposes of this subsection, good

character means an individual who does not have a history of

dishonest acts as demonstrated by documented evidence and has

not been convicted, pled guilty, or pled nolo contendere to a felony

charge. The Board may refuse to grant a certificate to an applicant

for failure to satisfy the requirement of good character. The Board

shall provide to the denied applicant written notification specifying

grounds for denial of a certificate including failure to meet the

OKLAHOMA ACCOUNTANCY ACT

26

good character criterion. Appeal of the action of the Board may be

made in accordance with the provisions of the Administrative

Procedures Act.

B. The Board shall issue certificates as certified public

accountants to those applicants who have met the qualifications

required by the provisions of the Oklahoma Accountancy Act and

the applicable rules of the Board, and have passed an examination

in accounting, auditing and related subjects as the Board determines

appropriate with such grades that satisfy the Board that each

applicant is competent to practice as a certified public accountant.

C. The Board may make use of all or any part of the

Uniform Certified Public Accountant Examination and any

organization that assists in providing the examination.

D. An applicant for initial issuance of a certificate pursuant

to this section shall show that the applicant has at least one

hundred fifty (150) semester hours, or the equivalent thereof, of

college education including a baccalaureate or higher degree, or

the equivalent thereof, conferred by a college or university

acceptable to the Board from an accredited four-year college or

university in this state or any other accredited four-year college or

university recognized by the Board. Of the one hundred fifty (150)

semester hours, not less than thirty (30) semester hours, or the

equivalent thereof, shall be in the accounting courses above

principles of accounting or introductory accounting. These

education requirements shall have been completed prior to

submitting an application to the Board and within the time frame

outlined in this section. A qualified applicant may take the certified

public accountant examination as allowed in Section 15.8 of this

title but shall not be issued a certificate until the education

requirements pursuant to this section and Section 15.8 of this title

have been met.

E. An applicant for initial issuance of a certificate under

this section shall show that the applicant has had one (1) year of

OKLAHOMA ACCOUNTANCY ACT

27

experience. Experience shall be defined by the Board by rule and

shall include providing a type of service or advice involving the use

of accounting, attest, compilation, management advisory, financial

advisory, tax or consulting skills, and be satisfied through work

experience in government, industry, academia or public practice,

all of which shall be verified by a certificate or license holder or an

individual approved by the Board. Upon completion of the

requirements of Section 15.8 of this title, a qualified applicant for

the examination may take the certified public accountant or public

accountant examination prior to earning the experience required in

this subsection, but shall not be issued a certificate until the

experience requirement has been met.

F. Every applicant for the certificate of certified public

accountant shall provide evidence of successful completion of an

ethics examination prescribed by the Board.

G. Every applicant for the certificate of certified public

accountant shall submit to a national criminal history record check.

The costs associated with the national criminal history record check

shall be paid by the applicant.

H. An individual applying for a certificate as a certified

public accountant must make application for the certificate within

five (5) years of the date the Board notifies the candidate that the

candidate has successfully passed all sections of the C.P.A.

Examination. If the candidate fails to make application for the

certificate within five

(5) years, the candidate must provide documentation showing he or

she has completed at least one hundred twenty (120) hours of

qualifying continuing public accountancy education completed

within the three-year period immediately preceding the date the

individual applies for certification. The Board shall establish rules

whereby time limits set for application pursuant to this provision

may, upon written application to the Board, be waived or reduced if

the candidate is called to active military service or becomes

OKLAHOMA ACCOUNTANCY ACT

28

incapacitated as a result of illness or injury or for such other good

causes as determined by the Board on a case-by-case basis.

Section 15.10. Examinations

A. The Board shall provide an examination for candidates

to obtain a certificate as a certified public accountant at least once

each year. Additional examinations may be held at such times and

places as the Board may deem advisable.

B. Each candidate allowed to sit at the examination shall

file a written application on a form prescribed by the Board.

C. In addition to the requirement of confidentiality of

examination results, the Board shall take such action as necessary to

assure the confidentiality of the examination prior to their being

administered to candidates.

Section 15.10A. Examination and test fees

Each candidate shall pay fees, to be determined by the

Oklahoma Accountancy Board, not to exceed One Thousand

Dollars ($1,000.00) for each examination.

An application fee, payable to the Board, shall be paid by the

candidate at the time the application for the examination is filed.

The application fee shall be nonrefundable. Also, each candidate

shall pay test fees to the organizations designated by the Board to

provide a computer-based examination. In no event shall the total

fees paid by a candidate for each examination exceed One Thousand

Dollars ($1,000.00).

Section 15.11. Use of titles or abbreviations

A. No individual, other than as described in subparagraph d

of paragraph 34 of Section 15.1A of this title, shall assume or use

the title or designation “certified public accountant” or the

abbreviation “C.P.A.” or any other title, designation, words, letters,

abbreviation, sign, card, or device tending to indicate or represent

OKLAHOMA ACCOUNTANCY ACT

29

that such individual is a certified public accountant, unless such

individual has received a certificate as a certified public accountant

and holds a valid permit issued pursuant to the provisions of the

Oklahoma Accountancy Act or is granted practice privileges under

Section 15.15C of this title, which also meets the requirements of

paragraph 3 of subsection A of Section 15.15 of this title. All

offices in this state for the practice of public accounting by such

individual shall be maintained and registered as required by the

Oklahoma Accountancy Act.

B. No entity shall assume or use the title or designation

“certified public accountant” or the abbreviation “C.P.A.” or any

other title, designation, words, letters, abbreviation, sign, card or

device tending to indicate or represent that such entity is composed

of certified public accountants unless such entity is registered as a

firm of certified public accountants and holds a valid permit issued

pursuant to the provisions of the Oklahoma Accountancy Act or is

exempt from the registration and permit requirements under Section

15.15C of this title. All offices in this state for the practice of public

accounting by such entity shall be maintained and registered as

required by the Oklahoma Accountancy Act.

C. No individual, other than as described in subparagraph d

of paragraph 34 of Section 15.1A of this title, shall assume or use

the title or designation “public accountant” or the abbreviation

“P.A.” or any other title, designation, words, letters, abbreviation,

sign, card, or device tending to indicate or represent that such

individual is a public accountant, unless such individual is licensed

as a public accountant, or is a certified public accountant and holds

a valid permit issued pursuant to the provisions of the Oklahoma

Accountancy Act. All offices in this state for the practice of public

accounting by such individual shall be maintained and registered

as required by the Oklahoma Accountancy Act.

D. No entity shall assume or use the title or designation

“public accountant” or any other title, designation, words, letters,

OKLAHOMA ACCOUNTANCY ACT

30

abbreviation, sign, card, or device tending to indicate or represent

that such entity is composed of public accountants, unless such

entity is registered as a firm of public accountants and holds a valid

permit issued pursuant to the provisions of the Oklahoma

Accountancy Act. All offices in this state for the practice of public

accounting by such entity shall be maintained and registered as

required by the Oklahoma Accountancy Act.

E. No individual or entity shall assume or use the title or

designation “certified accountant”, “chartered accountant”,

“enrolled accountant”, “licensed accountant”, “registered

accountant” or any other title or designation which could be

confused with “certified public accountant” or “public

accountant”, or any of the abbreviations “CA”, “EA”, except as it

relates to the term “enrolled agent” as defined by the Internal

Revenue Service, “RA”, or “LA”, or similar abbreviations which

could be confused with “CPA” or “PA”; provided, however, that

anyone who holds a valid permit and whose offices in this state for

the practice of public accounting are maintained and registered as

required by the Oklahoma Accountancy Act or is granted practice

privileges under Section 15.12A of this title may hold oneself out to

the public as an “accountant” or “auditor”.

F. No individual or entity not holding a valid permit, not

granted practice privileges under Section 15.12A of this title, or not

exempt from the permit requirement under Section 15.15C of this

title, which also meets the requirements of paragraph 3 of

subsection A of Section 15.15 of this title, shall hold oneself or

itself out to the public as an “accountant” or “auditor” by use of

either or both of such words on any sign, card, letterhead, or in any

advertisement or directory, without specifically indicating that

such individual or entity does not hold such a permit. The

provisions of this subsection shall not be construed to prohibit any

officer, employee, partner or principal of any entity from

describing oneself by the position, title or office one holds in such

OKLAHOMA ACCOUNTANCY ACT

31

organization; nor shall this subsection prohibit any act of public

official or public employee in the performance of the duties as such.

G. Any individual or entity who is registered with the

Board but does not hold a valid permit issued pursuant to the

Oklahoma Accountancy Act may not issue a report on financial

statements of any other person, firm, organization recognized by

this state, or governmental unit. This prohibition does not apply to

an officer, partner, or employee of any firm or organization

affixing a 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 is held therein; nor

prohibit any act of a public official or employee in the performance

of the duties as such.

Section 15.12. Employees and assistants without certification or

permit

An individual who is not a certified public accountant or

public accountant in any jurisdiction may serve as an employee of a

firm composed of certified public accountants or public accountants

holding a valid permit.

Such employee or assistant shall not issue

any accounting or financial statements over the employee’s or

assistant’s name.

Section 15.12A. Holders of certificate or license from another

state-Consent to jurisdiction-Compliance with Board rules-

State licensees practicing in another state

A.

1. An individual whose principal place of business is not in

this state and who holds a valid certificate or license as a certified

public accountant or public accountant from any jurisdiction

which the Oklahoma Accountancy Board’s designee has verified to

be in substantial equivalence to the certified public accountant and

public accountant licensure requirements of the AICPA/NASBA

OKLAHOMA ACCOUNTANCY ACT

32

Uniform Accountancy Act shall be presumed to have qualifications

substantially equivalent to this state’s requirements and shall have

all the privileges of certificate and license holders of this state

without the need to obtain a certificate, license or permit required

under Sections 15.9, 15.13, 15.14A, 15.15 and 15.15A of this title.

An individual who offers or renders professional services, whether

in person or by mail, telephone or electronic means, under this

section shall be granted practice privileges in this state and no

notice, fee or submission shall be provided by any such individual.

Such an individual shall be subject to the requirements in paragraph

3 of this subsection.

2. An individual whose principal place of business is not in

this state who holds a valid certificate or license as a certified public

accountant or public accountant from any jurisdiction which the

Oklahoma Accountancy Board’s designee has not verified to be in

substantial equivalence to the certified public accountant licensure

requirements of the AICPA/NASBA Uniform Accountancy Act

shall be presumed to have qualifications substantially equivalent to

this state’s requirements and shall have all the privileges of

certificate and license holders of this state without the need to obtain

a certificate, license or permit required under Sections 15.9, 15.13,

15.14A, 15.15 and 15.15A of this title. Any individual who passed

the Uniform CPA Examination and holds a valid certificate or

license issued by any other state prior to January 1, 2012, may be

exempt from the education requirement of the Uniform

Accountancy Act for purposes of this paragraph. An individual

who offers or renders professional services, whether in person, or

by mail, telephone or electronic means, under this section, shall be

granted practice privileges in this state and no notice, fee or

submission shall be provided by any such individual. Such an

individual shall be subject to the requirements in paragraph 3 of

this subsection.

3. An individual certificate holder or license holder of

OKLAHOMA ACCOUNTANCY ACT

33

another jurisdiction exercising the privilege afforded under this

section, and any firm which employs that certificate holder or

license holder hereby simultaneously consent, as a condition of the

granting of this privilege:

a. to the personal and subject matter jurisdiction

and disciplinary authority of the Board,

b. to comply with the Oklahoma Accountancy

Act and the Board’s rules,

c. that in the event the certificate holder or license

holder from the jurisdiction of the individual’s

principal place of business is no longer valid,

the individual will cease offering or rendering

professional services in this state individually

or on behalf of a firm, and

d. to the appointment of the state board which

issued the certificate or license as the agent

upon whom process may be served in any

action or proceeding by the Board against the

certificate or license holder.

4. A certified public accounting or public accounting firm

that is not subject to the requirements of paragraph 1 or 2 of

subsection A of Section 15.15 of this title may perform services

described in subsection 12 of Section 15.1A of this title and other

nonattest professional services while using the title “CPA” or

“CPA firm” in this state without a firm license, permit, or notice to

the Board if the firm’s practice in this state is performed by an

individual who is licensed in Oklahoma or who has been granted

practice privileges under paragraph 1 or 2 of this subsection, and the

firm can lawfully do so where the individuals with practice

privileges have their principal place of business.

5. An individual who has been granted practice privileges

under this section whose attest services described in paragraph 5 of

Section 15.1A of this title may only do so through a firm which

OKLAHOMA ACCOUNTANCY ACT

34

meets the requirements of paragraph 3 of subsection A of Section

15.15 of this title for exemption from the registration requirements

or which has obtained a registration under Section 15.15 of this

title and a permit issued under Section 15.15A of this title.

B. A registrant of this state offering or rendering services or

using the registrant’s CPA or PA title in another jurisdiction shall be

subject to disciplinary action in this state for an act committed in

another jurisdiction which would subject the certificate or license

holder to discipline in that jurisdiction. The Board shall be required

to investigate any complaint made by the board of accountancy of

another jurisdiction.

Section 15.13. Issuance of certificate or license to applicant

authorized to practice in other jurisdiction-Reciprocity

A. The Oklahoma Accountancy Board may issue a

certificate to an applicant who has been authorized to practice

public accounting as a certified public accountant pursuant to the

laws of any jurisdiction if the applicant passed a test administered

for the purpose of authorizing an individual to practice as a certified

public accountant with grades which were equivalent to passing a

test for the same purpose in this state as of the date the applicant

originally passed the examination, and the applicant:

1. Meets the requirements for issuance of a certificate in

this state on the date of making application;

2. Met, on the date the certificate was issued by the other

jurisdiction, the requirements in effect on that date for issuance of

a certificate in this state; or

3. Met, on the date of becoming a candidate in another

jurisdiction, the requirements of becoming a candidate in this state,

except for residency.

B. In the event an applicant does not meet the requirements

of subsection A of this section, but has passed a test administered

OKLAHOMA ACCOUNTANCY ACT

35

for the purpose of authorizing an individual to practice as a certified

public accountant with grades which were equivalent to passing a

test for the same purpose in this state on the date the applicant

passed the examination, the Board may issue a certificate to an

applicant if such applicant has four (4) years of experience

practicing public accounting as a certified public accountant

pursuant to the laws of any jurisdiction. Such experience must

have occurred within the ten (10) years immediately preceding the

application. Experience acceptable to satisfy the requirements of

this subsection shall be determined by standards established by the

Board.

C. An applicant who is seeking a permit to practice under

this section must also provide satisfactory documentation to the

Board that such applicant has met the continuing professional

education requirements, as provided in Section 15.35 of this title,

in effect on the date of the application.

D. The Board may issue a certificate by reciprocity to the

extent required by treaties entered into by the government of the

United States.

E. A fee in the amount equal to the registration fee and

permit fee, if applicable, plus an administrative fee, the total of

which shall not exceed Three Hundred Dollars ($300.00), shall be

paid by an applicant seeking a certificate pursuant to the provisions

of this section. The total amount shall be established by Board rule.

F. On or after July 1, 2005, an applicant for the certificate

of certified public accountant under this section shall provide

evidence of successful completion of an ethics examination

prescribed by the Board.

G. As an alternative to the requirements of subsection A, B

or C of this section, a certificate holder licensed by another

jurisdiction who establishes the certificate holder’s principal place

of business in this state shall request the issuance of a certificate

from the Board prior to establishing such principal place of business.

OKLAHOMA ACCOUNTANCY ACT

36

The Board shall issue a certificate to such person who obtains from

the NASBA National Qualification Appraisal Service verification

that such individual’s CPA qualifications are substantially

equivalent to the CPA licensure requirements of the

AICPA/NASBA Uniform Accountancy Act.

H. An applicant for the certificate of certified public

accountant under this section shall submit to a national criminal

history record check. The costs associated with the national

criminal history record check shall be paid by the applicant.

Section 15.13A. Issuance of certificate or license to applicant

authorized to practice in foreign country-Reciprocity

A. The Board shall issue a certificate to a holder of a

substantially equivalent designation issued by a foreign country,

provided that:

1. The foreign authority which granted the designation

makes similar provision to allow a registrant who holds a valid

certificate issued by this state to obtain such foreign authority’s

comparable designation;

2. The designation:

a. was duly issued by an authority of a foreign

country which regulates the practice of public

accounting and has not expired or been

revoked or suspended,

b. entitles the holder to issue reports upon

financial statements, and

c. was issued upon the basis of substantially

equivalent educational, examination and

experience requirements established by the

foreign authority or by law; and

3. The applicant:

a. received the designation based on educational

OKLAHOMA ACCOUNTANCY ACT

37

and examination standards substantially

equivalent to those in effect in this state at the

time the foreign designation was granted,

b. completed an experience requirement

substantially equivalent to the requirement set

out under the Oklahoma Accountancy Act in

the foreign country which granted the foreign

designation or has completed four (4) years of

professional experience in this state, or

satisfies equivalent requirements prescribed

by the Board by rule within the ten (10) years

immediately preceding the application,

c. passed a uniform qualifying examination in

national standards acceptable to the Board,

and

d. is of good character.

An applicant for the certificate of certified public accountant

under this section shall submit to a national criminal history record

check. The costs associated with the national criminal history

record check shall be paid by the applicant.

B. An applicant under subsection A of this section shall in

the application list all jurisdictions, foreign and domestic, in which

the applicant has applied for or holds a designation to practice

public accounting, and each holder of a certificate issued under this

subsection shall notify the Board in writing, within thirty (30) days

after its occurrence, of any issuance, denial, revocation or

suspension of a designation or commencement of disciplinary or

enforcement action by any jurisdiction.

Section 15.14. Registration-Expiration and renewal-Fee

A. In addition to obtaining a certificate or license, certified

public accountants and public accountants, unless granted practice

OKLAHOMA ACCOUNTANCY ACT

38

privileges under Section 15.12A of this title, shall register with the

Oklahoma Accountancy Board and pay a registration fee.

B. After the initial registration, renewal of registrations shall

be accomplished by registrants in good standing upon filing of the

registration and upon payment of the registration fee. Interim

registration shall be at full rates.

C. All valid certificates or licenses shall be renewed by the

last day of the individuals’ birth months. Renewal will be effective

for a twelve-month period. The Board shall implement rules for the

scheduling of expiration and renewal of certificates and licenses,

including the prorating of fees.

D. Not less than thirty (30) calendar days before the

expiration of a valid certificate or license, written notice of the

expiration date shall be mailed to the individual holding the valid

certificate or license at the last-known address of such individual

according to the official records of the Board.

E. A certificate or license shall be renewed by payment of a

registration renewal fee set by the Board which shall not exceed Two

Hundred Dollars ($200.00) for each two-year period.

1. Upon failure of an individual to pay registration fees

on or before the expiration date, the Board shall notify the

individual in writing by certified mail to the last known address of

the individual, as reflected in the records of the Board, of the

individual’s failure to comply with the Oklahoma Accountancy

Act.

2. A certificate or license granted under authority of the

Oklahoma Accountancy Act shall automatically be revoked if the

individual fails to pay registration fees within thirty (30) days after

the expiration date.

3. Any individual whose certificate or license is

canceled, revoked for cause or automatically revoked by this

provision may be reinstated by the Board upon payment of:

a. a fee set by the Board which shall not exceed

OKLAHOMA ACCOUNTANCY ACT

39

Three Hundred Dollars ($300.00) for a renewal

within one (1) year of the due date, or

b. a fee set by the Board which shall not exceed

Five Thousand Dollars ($5,000.00) after one

(1) year of the expiration date.

However, an individual whose certificate or license has been

revoked for cause for five (5) years or more may not renew the

certificate or license. The individual may obtain a new certificate or

license by complying with the requirements and procedures,

including the examination requirements, for obtaining an original

certificate or license. This provision shall not apply to an

individual who is licensed to practice in another jurisdiction for the

five (5) years immediately preceding their application for

reinstatement.

F. The Board shall establish rules whereby the registration

fee for certified public accountants and public accountants may,

upon written application to the Board, be reduced or waived by the

Board for registrants who have retired upon reaching retirement age,

or who have attained the age of sixty-five (65) years, or who have

become disabled to a degree precluding the continuance of their

practice for six (6) months or more prior to the due date of any

renewal fee. The Board shall use its discretion in determining

conditions required for retirement or disability.

G. All notifications of criminal arrests or charges,

disciplinary actions by any other jurisdiction or foreign country,

revocation or suspension by enforcement action of any professional

credential and all changes of employment or mailing address shall

be reported to the Board within thirty (30) calendar days of such

changes becoming effective.

H. At the direction of the Board, a register of registrants

may be published in any media format the Board considers

appropriate for public distribution.

OKLAHOMA ACCOUNTANCY ACT

40

Section 15.14A. Permits

A. Before any individual may practice public accounting or

hold himself or herself out as being engaged in the practice of public

accounting as a certified public accountant or public accountant in

this state, such person shall obtain a permit from the Oklahoma

Accountancy Board, unless such person is granted practice

privileges under Section 15.12A of this title. Any individual,

corporation or partnership or any other entity who provides any of

the services defined hereinabove as the "practice of public

accounting" without holding a license and permit, or without

holding a certificate and permit, shall be assessed a fine not to

exceed Ten Thousand Dollars ($10,000.00) for each separate

offense, unless such person is granted practice privileges under

Section 15.12A of this title, or such entity is exempt from the

permit and registration requirements of Section 15.15C of this title

or exempt from the registration requirements of paragraph 3 of

subsection A of Section 15.15 of this title.

B. The Board shall promulgate rules establishing the

qualifications for obtaining a permit to practice public accounting in

this state. Such rules shall include but not be limited to provisions

that:

1. Any individual seeking a permit must have a valid

certificate or license;

2. Any individual or entity seeking a permit must be

registered pursuant to the provisions of the Oklahoma Accountancy

Act;

3. Any individual seeking a permit must meet continuing

professional education requirements as set forth by the Oklahoma

Accountancy Act and rules promulgated by the Board; and

4. There shall be no examination for obtaining a permit.

C. All such individuals shall, upon application and

OKLAHOMA ACCOUNTANCY ACT

41

compliance with the rules establishing qualifications for obtaining a

permit and payment of the fees, be granted an annual permit to

practice public accounting in this state. All permits issued shall be

renewed on the last day of the individual’s birth month in

conjunction with the registrant’s certificate or license renewal. The

Board may issue interim permits upon payment of the same fees

required for annual permits.

D. Failure to apply for and obtain a permit shall disqualify an

individual from practicing public accounting in this state until such

time as a valid permit has been obtained.

E. The Board shall charge a fee for each individual permit not

to exceed Two Hundred Dollars ($200.00).

Section 15.14B. Acts subject to penalty

After notice and hearing, the Oklahoma Accountancy Board

may impose any one or more of the penalties authorized in Section

15.24 of this title on a certified public accountant or a public

accountant for any one or more of the following causes:

1. Fraud or deceit in obtaining a certificate, license, practice

privilege or permit;

2. Dishonesty, fraud, or gross negligence in accountancy or

financially related activities;

3. Conviction, plea of guilty, or plea of nolo contendere of a

felony in a court of competent jurisdiction of any state or federal

court of the United States if the acts involved would have constituted

a felony under the laws of this state;

4. Conviction, plea of guilty, or plea of nolo contendere of

any misdemeanor, an element of which is dishonesty or fraud,

pursuant to the laws of the United States or any jurisdiction if the

acts involved would have constituted a misdemeanor under the laws

of this state;

5. Failure to comply with professional standards in the

Board’s professional code of conduct to the attest and/or

OKLAHOMA ACCOUNTANCY ACT

42

compilation competency requirement for those who supervise attest

and/or compilation engagements and sign the report on financial

statements or other compilation communications with respect to

financial statements; and

6. Violation of any of the provisions of the Oklahoma

Accountancy Act and rules promulgated for its implementation by

the Board.

Section 15.15. Registration-Annual fee-Expiration date-

Renewal-Interim registration-Revocation and reinstatement

A. The Oklahoma Accountancy Board, upon application,

shall grant or register any firm, including sole proprietorships,

seeking to provide public accounting services to the public in this

state if such firm demonstrates its qualifications therefore in

accordance with this section. All firms, except sole proprietorships

with an office in this state, shall pay an annual registration fee not

to exceed One Hundred Dollars ($100.00). The following must

register with the Board under this section:

1) Any firm with an office in this state engaged in the

practice of public accounting or the practice of attest services as

defined in paragraph 5 of Section 15.1A of this title;

2) Any firm with an office in this state that uses the title

“CPA”, “PA”, “CPA firm” or “PA firm”; or

3) Any firm that does not have an office in this state but

offers or renders attest services as described in paragraph 5 of

Section 15.1A of this title, unless the firm meets each of the

following requirements:

a) Complies with the qualifications described in

paragraphs 1 and 3 of subsection F of Section 15.15A of

this title,

b) complies with the qualifications described in Section

15.30 of this title,

OKLAHOMA ACCOUNTANCY ACT

43

c) performs such services through an individual with

practice privileges under Section 15.12A of this title,

and

d) can lawfully do so in the state where the individuals

with practice privileges have their practice of business.

B. All such registrations shall expire on June 30 of each

year and may be renewed annually for a period of one (1) year by

registrants in good standing upon filing the registration and upon

payment of the annual fee not later than June 30 of each year.

C. Interim registrations shall be at full rates.

D. Upon failure of a firm to pay registration fees on or

before the last day of June, the Board shall notify the firm in

writing by certified mail to the last known address of the firm, as

reflected in the records of the Board, of the firm’s failure to

comply with the Oklahoma Accountancy Act.

E. A registration granted under authority of this section

shall automatically be revoked if the firm fails to renew its

registration on or before June 30.

F. A firm whose registration is automatically revoked

pursuant to this section may be reinstated by the Board upon

payment of a fee to be set by the Board which shall not exceed

Two Hundred Dollars ($200.00).

G. An individual who has practice privileges under Section

15.12A of this title who performs services for which firm

registration is required under this section shall not be required to

meet the certificate, license, registration or permit requirements of

Section 15.9, 15.13, 15.13A, 15.14 or 15.14A of this title.

Section 15.15A. Firm permits

A. The Oklahoma Accountancy Board, upon application,

shall issue a permit to practice public accounting to each firm

seeking to provide professional services to the public in this state

except that a firm not required to register with the Board under

OKLAHOMA ACCOUNTANCY ACT

44

paragraph 4 of subsection A of Section 15.12A of this title and a

firm exempt from the registration requirements under paragraph 3

of subsection A of Section 15.15 of this title shall also not be

required to obtain a permit under this section. Renewals of firm

permits shall be applied for during the month of May of each year.

B. Applicants for initial firm permits shall provide the

Board with the following information:

1. A list of all states in which the firm has applied for or

been issued a permit or its equivalent within the five (5) years

immediately preceding the date of application;

2. Relevant details as to a denial, revocation, or

suspension of a permit or its equivalent of the firm, or any partner

or shareholder of the firm in any other state or jurisdiction;

3. Documentary proof that the firm has complied with

the requirements of the Office of the Secretary of State applicable

to such entities; and

4. Such other information as the Board deems

appropriate for demonstrating that the qualifications of the firm are

sufficient for the practice of public accounting in this state.

C. The following changes in a firm affecting the offices in

this state shall be reported to the Board within thirty (30) calendar

days from the date of occurrence:

1. Changes in the partners or shareholders of the firm;

2. Changes in the structure of the firm;

3. Change of the designated manager of the firm;

4. Changes in the number or location of offices of the firm;

and

5. Denial, revocation, or suspension of certificates, licenses,

permits, or their equivalent to the firm or its partners, shareholders,

or employees other than in this state.

D. The Board shall be notified in the event the firm is

dissolved. Such notification shall be made within thirty (30)

calendar days of the dissolution. The Board shall adopt rules for

OKLAHOMA ACCOUNTANCY ACT

45

notice and rules appointing the responsible party to receive such

notice for the various types of firms authorized to receive permits.

Such notice of dissolution shall contain but not be limited to the

following information:

1. A list of all partners and shareholders at the time of

dissolution;

2. The location of each office of the firm at the time of

dissolution; and

3. The date the dissolution became effective.

E. The Board shall set a fee of not more than Two Hundred

Dollars ($200.00) for each initial or renewal firm permit except for

sole proprietorships.

F. Each firm seeking a permit to practice accounting as a

CPA firm shall be issued a permit by the Board upon application

and payment of appropriate fees. A firm applying for a permit

shall provide documentary proof to the Board that:

1. Except as authorized in Section 15.15B of this title, a

simple majority of the ownership of the firm, in terms of financial

interests and voting rights, belongs to partners or shareholders

engaged in the practice of public accounting in the United States

and holding a certificate as a certified public accountant in one or

more jurisdictions. Although firms may include non-certificate

holder owners, the firm and its ownership must comply with rules

promulgated by the Board; and

2. Each designated manager of an office in this state is a

holder of a valid Oklahoma certificate and permit to practice as a

certified public accountant; and

3. All nonlicensed owners are active individual

participants in the public accounting firm or affiliated entities,

except as authorized in Section 15.15B of this title.

G. Each firm seeking a permit to practice accounting as a

PA firm shall be issued a permit by the Board upon application and

OKLAHOMA ACCOUNTANCY ACT

46

payment of appropriate fees. A firm applying for a permit shall

provide documentary proof to the Board that:

1. Except as authorized in Section 15.15B of this title, a

simple majority of the ownership of the firm, in terms of financial

interests and voting rights, belongs to partners or shareholders

engaged in the practice of public accounting in the United States and

holding a license as a public accountant in one or more jurisdictions.

Although firms may include non-license holder owners, the firm and

its ownership must comply with rules promulgated by the Board;

and

2. Each designated manager of an office in this state has

received an Oklahoma license and permit to practice as a public

accountant or certificate and permit to practice as a certified public

accountant; and

3. All nonlicensed owners are active individual

participants in the public accounting firm or affiliated entities,

except as authorized in Section 15.15B of this title.

H. Any individual licensee who is responsible for

supervising attest or compilation services and signs or authorizes

someone to sign the accountant’s report on the financial statement

on behalf of the firm shall meet the competency requirements set

out in the professional standards for such services.

I. Any individual licensee who signs or authorizes someone

to sign the accountant’s report on the financial statements on behalf

of the firm shall meet the competency requirements of the prior

subsection.

Section 15.15B. Designated manager

A. Except as authorized in subsection B of this section, each

office established or maintained in this state for the practice of

public accounting shall be under the direct supervision of a

designated manager.

OKLAHOMA ACCOUNTANCY ACT

47

1. The designated manager must be the holder of a

certificate in order for the title “Certified Public Accountant” or the

abbreviation “C.P.A.” to be used in connection with such office;

2. The designated manager must be the holder of a

certificate or a license in order for the title “Public Accountant” or

the abbreviation “P.A.” to be used in connection with such office.

B.1. For the purposes of a sale or transfer of an existing

office established or maintained in this state for the practice of

public accounting, the office is authorized to continue its accounting

practice during the pendency of its sale or transfer to a qualified

person or entity. For purposes of this subsection, the term "sale or

transfer" means and includes, but is not limited to:

a. the succession of an office established or

maintained in this state for the practice of public

accounting by the sale or transfer to another

person or entity authorized by law to practice

public accounting in this state, or

b. the succession of an office established or

maintained in this state for the practice of public

accounting by transfer to a grantor trust upon the

death of the holder of a permit to practice public

accounting as an interim interest holder before

being transferred to qualified individual owners

as set out in paragraph F or G of Section 15.15A

of this title and only upon the actual review of all

client documents by a qualified certified public

accountant or public accountant in this state.

2. Upon the death of a sole proprietor, single owner of a

firm or a majority stockholder of a firm, notice shall be given to the

executive director of the Oklahoma Accountancy Board by letter

within fourteen (14) days of the death expressing any intention to

sell, transfer or assume responsibility of the office, and declaring the

name of the qualified person or entity who has agreed to continue

OKLAHOMA ACCOUNTANCY ACT

48

the business or review the client documents during pendency of the

sale or transfer.

3. Upon completion of a sale or transfer authorized by this

subsection, notice shall be given to the executive director of the

Oklahoma Accountancy Board by affidavit within fourteen (14)

days of conclusion of the sale or transfer stating the date of

completion of the sale or transfer, the name of the designated

manager who reviewed client documents or continued the business

through completion of the sale or transfer, and the name of the

purchaser or transferee that has assumed responsibility for the

office, if different from the designated manager.

4. If a sale or transfer cannot be completed within sixty

(60) days, the executive director of the Oklahoma Accountancy

Board shall be notified monthly until the sale or transfer has been

completed.

5. Nothing in this subsection shall prohibit the executive

director of the Oklahoma Accountancy Board from seeking an

action for injunctive relief or disciplinary action if there is

reasonable cause to believe a person is violating the law or

administrative rules of the Board.

C. The Board shall promulgate such rules as are necessary

to implement the provisions of this section.

Section 15.15C. Services provided by unregistered firm

It shall not be a violation of the Oklahoma Accountancy Act

for a firm which is not registered under Section 15.15 of this title

and does not hold a valid permit under Section 15.15A of this title

and which does not have an office in this state to provide its

professional services in this state so long as it complies with the

requirements of paragraph 4 of subsection A of Section 15.12A of

this title or meets the requirements of paragraph 3 of subsection A of

Section 15.15 this title, whichever is applicable.

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49

Section 15.16. Revocation or suspension of registration and

permits of firm

A. After notice and hearing the Board shall revoke the

registration and all permits of a firm if at any time it does not have

all of the qualifications required for registration pursuant to the

provisions of the Oklahoma Accountancy Act.

B. After notice and hearing, the Board may impose any one

or more of the penalties authorized in Section 15.24 of this title on

a firm for any one or more of the following causes:

1. The revocation or suspension of the certificate or

license of any partner or shareholder issued in accordance with the

Oklahoma Accountancy Act;

2. Failure to maintain compliance with the requirements

for issuance or renewal of the permit of the firm;

3. Failure to sign accountants’ opinions in the firm

name, except in instances in which a governmental agency shall

require the signature to be that of an individual;

4. Fraud or deceit by any partner or shareholder in

obtaining the firm permit;

5. Except sole proprietorships, failure to file income tax

returns in the name of the firm; and

6. Dishonesty, fraud, or gross negligence in the practice

of public accounting by any partner, shareholder, or employee of

the firm in the name of the firm.

Sections 15.17, 15.18. Renumbered as Title 59, §§ 15.15B,

15.10A, respectively, by Laws 1992, c. 272, § 34, eff. Sept. 1, 1992

Section 15.19. Repealed by Laws 1992, c. 272, § 33, eff. Sept. 1,

1992

Section 15.20. Renumbered as Title 59, § 15.14B by Laws 1992

c. 272, § 34, eff. Sept. 1, 1992

Section 15.22. Renumbered as Title 59, § 15.14A by Laws 1992,

c. 272, § 34, eff. Sept. 1, 1992

OKLAHOMA ACCOUNTANCY ACT

50

Section 15.23. Hearings

A. The Oklahoma Accountancy Board shall conduct

investigations and hearings when it believes a registrant, individual

practicing under the provisions of the Oklahoma Accountancy Act,

other individual or entity has violated any of the provisions of the

Oklahoma Accountancy Act or rules promulgated thereunder

wherever or whenever appropriate for the exercise of authority

granted to the Board either on its own motion or on the complaint of

any person or entity. Such proceedings shall be conducted in

accordance with the provisions of the Administrative Procedures

Act. The Board shall have all powers granted to administrative

agencies for the conduct of individual proceedings; and judicial

review thereof shall be in accordance with the provisions of such

general laws relating to administrative procedure.

B. At all hearings, the Attorney General of this state, or an

Assistant Attorney General, shall represent the Board. If the

Attorney General is unable or declines to provide the Board with

counsel, the Board is authorized to employ other legal counsel to

represent it at a hearing. The counsel who presents the evidence

supporting the complaint shall not be the counsel who advises the

Board.

Section 15.24. Penalties-Reinstatement or termination of

suspension

A. In the event an individual, certified public accountant,

public accountant, firm or entity, after proper notice and hearing, is

found to have violated one or more provisions of the Oklahoma

Accountancy Act, the Board may impose one or more of the

following penalties on the offending individual, firm or entity:

1. Revoke any certificate, license, practice privilege or

permit issued pursuant to the provisions of the Oklahoma

Accountancy Act;

OKLAHOMA ACCOUNTANCY ACT

51

2. Suspend any certificate, license, practice privilege or

permit for not more than five (5) years, subject to such terms,

conditions, or limitations as deemed appropriate by the Board;

3. Reprimand a registrant, an individual granted practice

privileges under Section 15.12A of this title, or a firm exempt from

the permit and registration requirements under Section 15.15C of

this title;

4. Place a registrant, an individual granted practice

privileges under Section 15.12A of this title, or a firm exempt from

the permit and registration requirements under Section 15.15C of

this title on probation for a specified period of time, which may be

shortened or lengthened, as the Board deems appropriate;

5. Limit the scope of practice of a registrant, an

individual granted practice privileges under Section 15.12A of this

title, or a firm exempt from the permit and registration

requirements under Section 15.15C of this title;

6. Deny renewal of a permit;

7. Require a preissuance review or accelerated peer

review of the registrant subject to such procedures as the Board

deems appropriate;

8. Require successful completion of continuing

professional educational programs deemed appropriate;

9. Assess a fine not to exceed Ten Thousand Dollars

($10,000.00) for each separate offense; and

10. Require the registrant, individual or entity to pay all

costs incurred by the Board as a result of hearings conducted

regarding accountancy actions of the registrant, individual, or

entity, including, but not limited to, attorney fees, investigation

costs, hearing officer costs, renting of special facilities costs, and

court reporter costs.

B. Upon application in writing, the Board may reinstate a

certificate, license, practice privilege or permit which has been

revoked, or may modify, upon good cause as to why the individual

OKLAHOMA ACCOUNTANCY ACT

52

or entity should be reinstated, the suspension of any certificate,

license, practice privilege or permit.

C. Before reinstating or terminating the suspension of a

certificate, license, practice privilege or permit, or as a condition to

such reinstatement or termination, the Board may require the

applicant to show successful completion of specified continuing

professional education courses.

D. Before reinstating or terminating the suspension of a

certificate, license, practice privilege or permit, or as a condition to

such reinstatement or termination, the Board may make the

reinstatement of a certificate, license, or permit conditional and

subject to satisfactory completion of a peer review conducted in

such fashion as the Board may specify.

E. Before reinstating or terminating the suspension of a

certificate or license or as a condition to such reinstatement or

termination, the Board may require the applicant to submit to a

national criminal history records search. The costs associated with

the national criminal history records search shall be paid by the

applicant.

F. The provisions of this section shall not be construed to

preclude the Board from entering into any agreement to resolve a

complaint prior to a formal hearing or before the Board enters a final

order.

G. All monies, excluding costs, collected from civil

penalties authorized in this section, such penalties being

enforceable in the district courts of this state, shall be deposited

with the State Treasurer to be paid into the General Revenue Fund

of the state.

Section 15.25. Misrepresentation or fraud-Violations of act-

Penalty

Any individual or entity who:

1. Represents himself, herself or itself as having received a

OKLAHOMA ACCOUNTANCY ACT

53

certificate, license, or permit and otherwise presents himself, herself

or itself to the public as having specialized knowledge or skills

associated with CPAs and PAs without having received such

certificate, license, or permit; or

2. Continues to use such title or designation after such

certificate, license, or permit has been recalled, revoked,

surrendered, canceled, or suspended or refuses to surrender such

certificate, license, or permit; or

3. Falsely represents himself, herself or itself as being a

CPA or licensed as a public accountant, or firm of CPAs or

licensed public accountants, or who incorrectly designates the

character of the certificate, license or permit which he, she or it

holds; or

4. Otherwise violates any of the provisions of the Oklahoma

Accountancy Act; upon conviction shall be deemed guilty of a

misdemeanor.

Provided, however, that an individual granted practice

privileges under Section 15.12A of this title or a firm exempt from

the permit and registration requirements under Section 15.15C of

this title or paragraph 3 of subsection A of Section 15.15 of this

title may hold out as a CPA or a firm of CPAs, respectively,

without violation of this section.

Section 15.26. False reports or statements-Penalty

Any individual holding a certificate or license who knowingly

falsifies any report or statement bearing on any attestation,

investigation, or audit made by the individual or subject to the

individual’s direction shall be guilty of a felony, and upon

conviction shall be punishable by imprisonment for a period of not

more than one (1) year, or by a fine of not more than Twenty-five

Thousand Dollars ($25,000.00) per occurrence, or by both such fine

and imprisonment.

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54

Section 15.27. Cease and desist order-Fine-Injunction

A. In addition to any other powers conferred on the Board to

impose penalties for violations of the provisions of the Oklahoma

Accountancy Act, whenever in the judgment of the Board any

individual or entity has engaged in any acts or practices that

constitute a violation of the Oklahoma Accountancy Act, the Board

may:

1. After notice and hearing, issue a cease and desist

order to any individual who should have obtained a certificate,

license, practice privilege or permit or to an entity which should

have obtained a permit;

2. Impose a fine of not more than Ten Thousand Dollars

($10,000.00) for each violation in the event after the issuance of an

order to cease and desist the illegal activity, the individual or entity

to whom the order is directed commits any act in violation of the

order; and

3. Make application to the appropriate court for an order

enjoining such acts or practices, and upon a showing by the Board

that such person has engaged in any such acts or practices, an

injunction, restraining order, or such other order as may be

appropriate shall be granted by such court, without bond.

B. Each day a violation is continuing shall constitute a

separate offense.

C. Administrative fines imposed pursuant to this section

shall be enforceable in the district courts of this state.

D. Notices and hearings required by this section shall be in

accordance with the Administrative Procedures Act.

E. Appeals from orders entered pursuant to this section

shall be in accordance with the Administrative Procedures Act.

Section 15.28. Prima facie evidence

The displaying or uttering by an individual or entity not

OKLAHOMA ACCOUNTANCY ACT

55

registered in accordance with the Oklahoma Accountancy Act of a

card, sign, advertisement, or other printed, engraved, or written

instrument or device bearing the name of the individual or entity in

conjunction with the words “Certified Public Accountant” or

“Public Accountant” or any abbreviation thereof shall be prima facie

evidence in any action brought pursuant to the provisions of the

Oklahoma Accountancy Act that the individual or entity whose

name is so displayed or uttered caused or procured the display or

uttering of such card, sign, advertisement or other printed, engraved

or written instrument or device, and that such individual or entity is

representing himself, herself or itself to be a certified public

accountant, public accountant or CPA, PA or entity holding a valid

permit.

Section 15.29. Repealed by Laws 1980, c. 68, § 1, emerg. eff.

April 10, 1980

Section 15.29A. Unlawful use of titles or abbreviations-

Injunction, restraining order, or other order

Whenever, as a result of an investigation under Section 15.23

of this title or otherwise, the Oklahoma Accountancy Board believes

that any person or firm has engaged, or is about to engage, in any

acts or practices which constitute or will constitute a violation of

Section 15.11 of this title, the Board may make application to the

appropriate court for an order enjoining such acts or practices, and

upon a showing by the Board that such person or firm has engaged,

or is about to engage, in any such acts or practices, an injunction,

restraining order, or other order as may be appropriate shall be

granted by such court.

Section 15.29B. Enforcement actions-Evidence of single act

sufficient

In any action brought under Section 15.24 or 15.27 of this title,

OKLAHOMA ACCOUNTANCY ACT

56

evidence of the commission of a single action prohibited by the

Oklahoma Accountancy Act shall be sufficient to justify a penalty,

injunction, restraining order, or conviction, respectively, without

evidence of a general course of conduct.

Section 15.30. Quality reviews - Rules

A. As a condition for issuance or renewal of permits, the

Board may require applicants who perform attest services, except

compilations and those services described in subparagraph d of

paragraph 5 of Section 15.1A of this title, to undergo peer reviews

conducted not less than once every three (3) years.

B. Peer reviews shall be conducted in such manner and in

accordance with such standards as the Board may specify by rule.

C. The rules may provide for a registrant to comply by

providing documented proof of a satisfactory peer review conducted

for some other purpose which meets the purposes and standards of

the Board peer review program within three (3) years preceding the

date the Oklahoma peer review is to be conducted.

D. Failure of any registrant to provide full cooperation with

the Board or any individual acting at the direction of the Board in

performing a peer review shall after notice and a hearing be subject

to the penalties provided in the Oklahoma Accountancy Act.

E. The Board by rule may establish a fee in an amount not to

exceed One Hundred Dollars ($100.00) for each peer review

required by the Board under this section.

Section 15.31. Repealed by Laws 1992, c. 272, § 33, eff. Sept. 1,

1992

Sections 15.32, 15.33. Renumbered as Title 59, §§ 15.36, 15.37

by Laws 1992, c. 272. § 34, eff. Sept. 1, 1992

Section 15.34. Repealed by Laws 1980, c. 68, § 1, emerg. eff.

April 10, 1980

OKLAHOMA ACCOUNTANCY ACT

57

Section 15.35. Continuing professional education

A. In order to assure continuing professional competence of

individuals in accountancy, and as a condition for issuance of a

certificate or license and/or renewal of a permit to practice,

certificate and license holders shall furnish evidence of participation

in continuing professional education.

B. Continuing professional education compliance periods

shall be established by rule.

C. All certificate and license holders shall complete at least

one hundred twenty (120) hours of continuing professional

education within a three-year period with completion of not less than

twenty (20) hours of continuing professional education in any year.

D. The Oklahoma Accountancy Board shall adopt rules and

regulations regarding such continuing professional education. Such

rules shall include but not be limited to:

1. Requiring reporting of continuing professional

education to coincide with the annual permit renewal date;

2. Provisions for exempting retired, inactive and

disabled individuals as defined by the Board in the rules from the

requirement of continuing professional education; and

3. Adopt standards for determining approved continuing

professional education courses.

Section 15.36. Persons who may perform assurance services and

audits or issue reports

Any CPA or PA holding a valid permit, or an individual

granted practice privileges under Section 15.12A of this title, may

perform assurance services, including audit services, and issue a

report required by any statute, charter, ordinance, trust or other legal

instrument.

Section 15.37. Acts and instruments not to provide for audit

OKLAHOMA ACCOUNTANCY ACT

58

services by other than registrant holding valid permit

No ordinance, trust or other legal instrument shall provide for

any audit services to be performed other than by a registrant holding

a valid permit or an individual granted practice privileges under

Section 15.12A of this title or a firm exempt from the registration

requirement under paragraph 3 of subsection A of Section 15.15 of

this title.

Section 15.38. Filing, fee, and continuing professional education

requirements waived for license or certificate holder called to

active military service

All filing requirements, fees and the continuing professional

education requirements provided in the Oklahoma Accountancy Act

shall be waived for any holder of a license or certificate who is called

to active military service. The license or certificate holder shall

provide the Board a copy of the order to active military service. This

waiver shall remain in effect for the duration of the certificate or

license holder’s active military service. Within sixty (60) days after

the discharge from active military service, the license or certificate

holder shall provide a copy of the discharge order to the Board.

OKLAHOMA ADMINISTRATIVE CODE

59

OKLAHOMA ACCOUNTANCY BOARD

Chapter

1. Administrative Operations ................................. 10:1-1-1

10. Rules of General Application [REVOKED] ...... 10:10-1-1

15. Licensure and Regulation of Accountancy ........ 10:15-1-1

CHAPTER 1. ADMINISTRATIVE OPERATIONS

Section

10:1-1-1. Purpose

10:1-1-2. Definitions

10:1-1-3. Board and staff

10:1-1-4. Responsibilities of the Board [REVOKED]

10:1-1-4.1. Board office

10:1-1-5. Open meetings [REVOKED]

10:1-1-6. Procedures regarding inquiries to Board

10:1-1-6.1. Furnishing of copies

10:1-1-7. Compliance by registrants required [REVOKED]

10:1-1-7.1. Recording Board member attendance

10:1-1-7.2. Authorization to represent position of the Board

10:1-1-7.3. Use of Board seal

10:1-1-8. Promulgation, amendment or repeal of rules

10:1-1-9. Declaratory rulings

10:1-1-10. Confidentiality

[Authority: 59 O.S., Section 15.5]

[Source: Codified 12-2-91]

10:1-1-1. Purpose

(a) The Oklahoma Accountancy Act, found in Title 59 of the

Oklahoma Statutes, beginning at Section 15.1 has been adopted by

the Oklahoma Legislature for the purposes of protecting the public

OKLAHOMA ADMINISTRATIVE CODE

60

and to prevent the public from being mislead as to competency and

ability to provide professional accounting services of an individual

or firm offering such services. The Oklahoma Accountancy Board

has been created for the purpose of implementing the laws and

policies established by the Legislature.

(b) In order to implement policies established by the

Legislature regarding the practice of public accounting in

Oklahoma and for the administration of the provisions of the

Oklahoma Accountancy Act the rules of this Chapter have been

adopted by the Board.

10:1-1-2. Definitions

In addition to the terms defined in the Oklahoma

Accountancy Act, the following words or terms shall be applied

when implementing that Act and, when used in Title 10 shall have

the following meaning, unless the context clearly indicates

otherwise:

"Person" means an entity or an individual.

10:1-1-3. Board and staff

The Board consists of seven (7) members who shall meet at

least quarterly or more often as the business of the Board demands.

The Board employs a full time staff to perform the administrative

functions of the agency. The Board is a state agency and is

therefore subject to Oklahoma laws regulating the procedures

which must be followed by state agencies.

10:1-1-4. Responsibilities of the Board [REVOKED]

10:1-1-4.1. Board office

The Board maintains an office in Oklahoma City, Oklahoma. The

Board office is open five (5) days a week, Monday through Friday,

OKLAHOMA ADMINISTRATIVE CODE

61

during the most appropriate business work hours. The Board office

is closed on Saturday and Sunday and state legal holidays as set

out in Section 82.1 of Title 25 of the Oklahoma Statutes.

10:1-1-5. Open meetings [REVOKED]

10:1-1-6. Procedures regarding inquiries to Board

Inquiries regarding persons who have been granted or

denied a certificate, license, or permit, procedures to obtain a

license, certificate, or permit, complaints, suggestions, and general

inquiries concerning the Oklahoma Accountancy Act and the rules

implementing that Act may be made by calling or writing to the

Board at the Board office. Members of the staff respond to

questions where appropriate. In the event the inquiry concerns

policy, and the Board has not previously made a policy

determination applicable to that inquiry, the Board will respond or

direct the response to be given by a staff member.

10:1-1-6.1.

Furnishing of copies

(a) Except as specifically exempted as a confidential record,

official records of the Oklahoma Accountancy Board are subject to

the Oklahoma Open Records Act, Sections 24A.1 through 24A.20

of Title 51 of the Oklahoma Statutes.

(b) Copies of official records which are available to the public

may be obtained from the Board office during regular business

hours upon payment of a fee to cover the cost of providing copies

of the requested records.

10:1-1-7. Compliance by registrants required

[REVOKED]

OKLAHOMA ADMINISTRATIVE CODE

62

10:1-1-7.1.

Recording Board member attendance

The Executive Director shall keep an attendance record for

each Board member. The Board shall take action on each absence

of a Board member to determine if it is unavoidable. The minutes

of a Board meeting shall reflect the members absent, and the action

by the Board on each absence.

10:1-1-7.2.

Authorization to represent position of the Board

Upon a majority vote, the Board may authorize one (1) or

more of its members or members of the staff to speak for the Board

regarding Board policies. Only a Board member or staff members

so authorized may speak for the Board. Such authorization, the

subject matter, and the vote shall be entered in the minutes.

10:1-1-7.3.

Use of Board seal

The seal of the Board shall be used on certificates, licenses,

orders of the Board, and any other documents requiring

certification by the Board or the signature of one (1) or more

members of the Board. The seal shall not be required for

correspondence, memoranda, or other similar types of written

documents.

10:1-1-8. Promulgation, amendment or repeal of rules

(a) The Board may propose changes to the permanent rules of

the Oklahoma Accountancy Board at any time as provided in the

Oklahoma Administrative Procedures Act.

(b) Any interested person may petition the Board requesting

the promulgation, amendment, or repeal of a rule.

(1) Such requests shall be: in writing; signed by the

person submitting the request; state the rule to be reviewed

or new rule proposed; and state the reasons in support of

the request.

(2) The request shall be submitted to the Board at its

office.

OKLAHOMA ADMINISTRATIVE CODE

63

(3) The Board may consider the proposal at its next

meeting. It may defer action pending the acquisition of

additional information, conduct an investigation, or hold a

hearing on the proposal.

(4) The Board shall advise the petitioner of any meeting

at which the proposal is to be considered and the final

action taken, by the Board, on the proposal.

10:1-1-9. Declaratory rulings

(a) An individual may file a request with the Board for a

declaratory ruling with respect to the application or enforcement of

a rule or statute.

(1) The request shall be in writing and signed by the

individual seeking the ruling.

(2) The request shall state the rule or statute involved.

(3) The request shall contain a concise statement of fact

for which the ruling is sought.

(b) The Board may consider the request at the next meeting. In

the event the question has been resolved prior to a ruling, the

individual filing the request shall be notified of the applicable

ruling.

(c) The Board may defer action pending an investigation or

hearing.

(d) The Board shall issue a written ruling or provide a written

explanation to the individual filing the request as to why a ruling

will not be issued.

(e) Unless otherwise specifically stated in the ruling, a ruling

issued by the Board pursuant to the provisions of this Section shall

constitute a precedent for the purpose of subsequent rulings on the

same question until revoked or overruled by either the Board or a

court of competent jurisdiction.

OKLAHOMA ADMINISTRATIVE CODE

64

(f) Board rulings shall be indexed by the number of the statute

or rule which the ruling interprets and shall be available for

inspection by members of the public at the Board office.

10:1-1-10. Confidentiality

(a) Confidential information obtained by the Board, as set forth

in Section 15.6A of the Oklahoma Accountancy Act shall be

unavailable to the general public.

(b) An affected individual or entity who wishes to allow the

inspection of the confidential information of that individual or

entity by that individual's or entity's designated representative, or

the public at large shall sign a release for such information in such

form as prescribed and furnished by the Board. Such confidential

information shall be made readily available during the normal

business hours of the Board.

(c) Minutes of all meetings, public hearings, and other records

shall be maintained by the Board as a permanent record subject to

public inspection during regular business hours.

(d) All final written orders of the Board shall be maintained in

such manner as to be available for public inspection. Such orders

shall be available by reference to the name of the individual or

entity to which the order is directed.

CHAPTER 10. RULES OF GENERAL APPLICATION

[REVOKED]

CHAPTER 15. LICENSURE AND REGULATION OF

ACCOUNTANCY

Subchapter

Section

1. General Provisions .................................................10:15-1-1

OKLAHOMA ADMINISTRATIVE CODE

65

3. Requirements to Practice Public Accountancy ......10:15-3-1

5. Examination Procedures [REVOKED] .................10:15-5-1

7. Application to Take an Examination

[REVOKED] .........................................................10:15-7-1

9. Examination Content [REVOKED] ......................10:15-9-1

11. Grading of Examinations [REVOKED] ................10:15-11-1

13. Conditional Credit on Examination

[REVOKED]..........................................................10:15-13-1

15. Transfer of Examination Credits [REVOKED] .....10:15-15-1

17. Procedures Upon Failure to Apply for or Take Examination

[REVOKED]..........................................................10:15-17-1

18. Computer-Based Examination ...............................10:15-18-1

19. Proctoring of Candidates Taking Examinations

[REVOKED]..........................................................10:15-19-1

20. Internet Practice Requirements ..............................10:15-20-1

21. Reciprocity .............................................................10:15-21-1

22. Substantial Equivalency .........................................10:15-22-1

23. Registration ............................................................10:15-23-1

24. Return of Certificate or License ............................10:15-24-1

25. Permits ...................................................................10:15-25-1

27. Fees ........................................................................10:15-27-1

29. Continuing Professional Education

[REVOKED]..........................................................10:15-29-1

30. Continuing Professional Education .......................10:15-30-1

31. Standards for Continuing Professional Education

[REVOKED]..........................................................10:15-31-1

32. Standards for Continuing Professional Education (CPE)

Programs ................................................................10:15-32-1

33. Peer Review ...........................................................10:15-33-1

35. Reinstatement .........................................................10:15-35-1

37. Enforcement Procedures ........................................10:15-37-1

39. Rules of Professional Conduct ...............................10:15-39-1

OKLAHOMA ADMINISTRATIVE CODE

66

41.

Child Support Statute .............................................10:15-41-1

43. Audits Performed in Accordance With Government

Auditing Standards ................................................10:15-43-1

[Authority: 59 O.S., Section 15.5]

[Source: Codified 7-1-93]

SUBCHAPTER 1. GENERAL PROVISIONS

Section

10:15-1-1. Purpose

10:15-1-2. Definitions

10:15-1-1. Purpose

(a) The Oklahoma Accountancy Act, found in Title 59 of the

Oklahoma Statutes, beginning at Section 15.1 has been adopted by

the Oklahoma Legislature for the purposes of protecting the public

and to prevent the public from being misled as to competency and

ability to provide professional accounting services of an individual

or firm offering such services. The Oklahoma Accountancy Board

has been created for the purpose of implementing the laws and

policies established by the Legislature.

(b) In order to implement the policy established by the

Legislature regarding the practice of public accounting in

Oklahoma and for the administration of the provisions of the

Oklahoma Accountancy Act the rules of this Chapter have been

adopted by the Board.

(c) These rules, including the Rules of Professional Conduct,

are applicable to candidates for certificates or licenses.

10:15-1-2. Definitions

In addition to the terms defined in the Oklahoma

OKLAHOMA ADMINISTRATIVE CODE

67

Accountancy Act, the following words or terms shall be applied

when implementing that Act and, when used in this Chapter shall

have the following meaning, unless the context clearly indicates

otherwise:

"Accounting information system (AIS)" means a

subsystem of the management information system within an

organization. The accounting information system collects and

records financial and related information used to support

management decision making and to meet both internal and

external financial reporting requirements. An AIS system

includes, but is not limited to, the accounting for transactions

cycles such as revenues and receivables, purchases and payables,

payroll, inventory, cash receipts and cash disbursements, and

related data based systems.

"Act" means the Oklahoma Accountancy Act, Oklahoma

Statutes, Title 59, §§ 15.1 through 15.38, dealing with the practice

of public accountancy in Oklahoma.

"Active" when used to refer to the status of a registrant,

describes an individual who possesses a certificate or license and

who has not otherwise been granted "retired" or "inactive" status.

"Advanced" means the learning activity level most useful

for individuals with mastery of the particular topic. This level

focuses on the development of in-depth knowledge, a variety of

skills, or a broader range of applications. Advanced level

programs are often appropriate for seasoned professionals within

organizations; however, they may also be beneficial for other

professionals with specialized knowledge in a subject area.

"Basic" means the learning activity level most beneficial

to registrants new to a skill or an attribute. These individuals are

often at the staff or entry level in organizations, although such

programs may also benefit a seasoned professional with limited

exposure to the area.

OKLAHOMA ADMINISTRATIVE CODE

68

Code.

"Code" means Title 10 of the Oklahoma Administrative

"Compensation" means the receipt of any remuneration of

any kind for public accounting services, including but not limited

to salary, wages, bonuses or receipt of any tangible or intangible

thing of value.

"Continuing Professional Education" means the set of

activities that enables registrants to maintain and improve their

professional competence. It is an integral part of the lifelong

learning required to provide competent service.

"CPE" means continuing professional education.

"CPE credit" means fifty minutes of participation in a

group, independent study or self-study program. One-half CPE

credit increments (equal to 25 minutes) are permitted after the first

credit has been earned in a given learning activity.

"CPE program sponsor" means the individual or

organization responsible for setting learning objectives, developing

the program materials to achieve such objectives, offering a

program to participants, and maintaining the documentation

required by these standards. The term CPE program sponsor may

include associations of CPAs or PAs, whether formal or informal,

as well as employers who offer in-house programs.

"Evaluative feedback" means specific response to

incorrect answers to questions in self-study programs. Unique

feedback must be provided for each incorrect response, as each one

is likely to be wrong for differing reasons.

"Examining Authority" means the agency, board or other

entity, of the District of Columbia, or any state or territory of the

United States, entrusted with the responsibility for the governance,

discipline, registration, examination and award of certificates,

licenses or conditional credits for certified public accountants or

public accountants and the practice of public accountancy in said

OKLAHOMA ADMINISTRATIVE CODE

69

jurisdictions.

"Generally accepted accounting principles" means the

same as Financial Accounting Standards Board (FASB)

Accounting Standards Codification Section 105, "Generally

Accepted Accounting Principles."

"Generally accepted auditing standards" means those

standards which are used to measure the quality of the performance

of auditing procedures and the objectives to be obtained by their

use. Statements on Auditing Standards issued by the American

Institute of Certified Public Accountants, Standards for Audit of

Government Organizations, Programs, Activities and Functions

issued by the Comptroller General of the United States, Standards

of the Public Company Accounting Oversight Board (PCAOB) and

other pronouncements having similar generally recognized

authority, are considered to be interpretations of generally accepted

auditing standards, and departures from such pronouncements,

where they are applicable, must be justified by those who do not

follow them.

"Group program" means an educational process designed

to permit a participant to learn a given subject through interaction

with an instructor and other participants either in a classroom or

conference setting or by using the Internet.

"Immediate family members" means the registrant’s, or

his/her spouse’s, lineal and collateral heirs.

"Inactive" used to refer to the status of a registrant who is

exempt from complying with the CPE requirements as provided in

Subchapter 10:15-30-8(1) (B), (C), (D), and (E). However, inactive

status does not preclude volunteer services for which the inactive

registrant receives no direct or indirect compensation so long as the

inactive registrant does not sign any documents related to such

services as a CPA or PA.

"Independent s t u d y ” means a n e d u c a t i o n a l

p r o c e s s

OKLAHOMA ADMINISTRATIVE CODE

70

designed to permit a participant to learn a given subject under a

learning contract with a CPE program sponsor.

"Instructional methods" means delivery strategies such

as case studies, computer-assisted learning, lectures, group

participation, programmed instruction, teleconferencing, use of

audiovisual aids, or work groups employed in group, self-study, or

independent study programs.

"Intermediate" means learning activity level that builds

on a basic program, most appropriate for registrants with detailed

knowledge in an area. Such persons are often at a mid-level within

the organization, with operational and/or supervisory

responsibilities.

"Internet-based programs" means a learning activity,

through a group program or a self-study program, that is designed

to permit a participant to learn the given subject matter via the

Internet. To qualify as either a group or self-study program, the

Internet learning activity must meet the respective standards.

"Learning activity" means an educational endeavor that

maintains or improves professional competence.

"Learning contract" means a written contract signed by

an independent study participant and a qualified CPE program

sponsor prior to the commencement of the independent study that:

(A) Specifies the nature of the independent study

program and the time frame over which it is to be

completed, not to exceed 15 weeks.

(B) Specifies that the output must be in the form

of a written report that will be reviewed by the CPE

program sponsor or a qualified person selected by

the CPE program sponsor.

(C) Outlines the maximum CPE credit that will

be awarded for the independent study program, but

limits credit to actual time spent.

OKLAHOMA ADMINISTRATIVE CODE

71

"Learning objectives" means specifications on what

participants should accomplish in a learning activity. Learning

objectives are useful to program developers in deciding appropriate

instructional methods and allocating time to various subjects.

"Learning plans" means structured processes that help

registrants guide their professional development. They are dynamic

instruments used to evaluate and document learning and

professional competence development. This may be reviewed

regularly and modified, as registrants’ professional competence

needs change. Plans include:

(A) A self-assessment of the gap between

current and needed knowledge, skills, and abilities;

(B) A set of learning objectives arising from this

assessment; and

(C) Learning activities to be undertaken to fulfill

the learning plan.

"Licensee" means an individual designated as a CPA, PA,

or equivalent designation in another state.

"Management information system (MIS)" means a

computer or manual system, or a group of systems, within an

organization that is responsible for collecting and processing data

to ensure that all levels of management have the information

needed to plan, organize, and control the operations of the

organization and to meet both internal and external reporting

requirements.

"Office" means a building, room, or series of rooms which

are owned, leased, or rented by an individual or firm for the

purpose of holding out or carrying out the practice of public

accounting.

"Organization" includes a corporation, government or

governmental subdivision or agency, business trust, estate, trust,

partnership,

limited

liability

company,

sole

proprietorship,

an

OKLAHOMA ADMINISTRATIVE CODE

72

association, two or more persons having a joint or common

interest, an employer of CPAs or PAs, or any other legal or

commercial entity.

"Other professional standards" means those standards as

defined by Statements on Management Advisory Services,

Statements on Responsibilities in Tax Practice, Statements on

Standards for Accounting and Review Services and Statements of

Quality Control Standards, where applicable, issued by the

American Institute of Certified Public Accountants.

"Overview" means learning activity level that provides a

general review of a subject area from a broad perspective. These

programs may be appropriate for professionals at all organizational

levels.

"Personal development" means a field of study that

covers such skills as communications, managing the group process,

dealing effectively with others, interviewing, counseling, and

career planning.

"Pilot test" means sampling of at least three independent

individuals representative of the intended participants to measure

the average completion time to determine the recommended CPE

credit for self-study programs.

"Professional competence" means having requisite

knowledge, skills, and abilities to provide quality services as

defined by the technical and ethical standards of the profession.

The expertise needed to undertake professional responsibilities and

to serve the public interest.

"Reinforcement feedback" means specific responses to

correct answers to questions in self-study programs. Such feedback

restates why the answer selected was correct.

"Renewal permit" refers to a permit applied for prior to

the expiration of the current permit.

"Retired" means a registrant who holds a certificate or

OKLAHOMA ADMINISTRATIVE CODE

73

license and verifies to the Board that the registrant is no longer

practicing public accounting or employed. However, retired status

does not preclude volunteer services for which the retired

registrant receives no direct or indirect compensation so long as the

retired registrant does not sign any documents related to such

services as a CPA or PA.

"Rolling three (3) calendar year period" means that

active status registrants are required to complete 120 hours of CPE

in any three-calendar-year.

"Self-study program" means an educational process

designed to permit a participant to learn a given subject without

major involvement of an instructor. Self-study programs use a pilot

test to measure the average completion time from which the

recommended CPE credit is determined.

"Sole Proprietorship" means an unincorporated business

enterprise which is owned entirely by one (1) certificate or license

holder.

"State" means the District of Columbia, any state, or

territory of the United States.

"Update" means learning activity level that provides a

general review of new developments. This level is for participants

with a background in the subject area who desire to keep current.

SUBCHAPTER 3. REQUIREMENTS TO PRACTICE

PUBLIC ACCOUNTANCY

Section

10:15-3-1. Who may practice public accountancy

10:15-3-2. Certificate as a certified public accountant

10:15-3-3. License as a public accountant

[REVOKED]

10:15-3-4. Permits to practice

10:15-3-5. Exceptions

OKLAHOMA ADMINISTRATIVE CODE

74

10:15-3-1. Who may practice public accountancy

Except for qualified individuals practicing under substantial

equivalency, public accounting may be practiced in this state only

by a registrant which holds a valid permit to practice issued by the

Board. Registrants may not practice public accounting through an

entity which does not hold a valid permit except under the

provisions of 10:15-39-8(a)(2). The Board grants certificates,

licenses, or permits to practice to applicants on condition that the

registrants comply with the provisions of the Oklahoma

Accountancy Act and the rules adopted for the implementation of

that Act.

10:15-3-2. Certificate as a certified public accountant

A certificate may be issued to a qualified applicant only

after:

(1) The examination has been satisfactorily completed;

(2) Evidence, by means established in Title 59, Section

15.9 of the Act, is obtained to substantiate that the applicant

is of good moral character;

(3) Documentation has been provided that the

certification applicant has a total of Eighteen hundred

(1,800) hours of part time or full time work experience in

accounting as described in Title 59, Section 15.9.E of the

Act. Work experience must have been obtained within the

four (4) years immediately prior to filing the application for

certification. This requirement may be satisfied through

work experience in government, industry, academia, or

public practice. Acceptable work experience includes

accounting, attest, tax, and related services. Approved

documentation of experience must be provided in a format

prescribed by the Board.

If the work experience is denied,

OKLAHOMA ADMINISTRATIVE CODE

75

the applicant may file a written request with the Board for a

review of the denial. The applicant shall have the burden

of demonstrating to the Board that the requirements under

this section have been met. Any evidence submitted by the

applicant shall be in documentary form, and

(4) Evidence of successful completion of the AICPA

ethics examination or its equivalent as determined by the

Board has been provided.

10:15-3-3. License as a public accountant [REVOKED]

10:15-3-4. Permits to practice

In addition to a license or certificate, any registrant

practicing public accounting or providing expert witness testimony

in any Oklahoma or Federal Court located in Oklahoma shall be

required to have a valid permit with exceptions as allowed in

10:15-3-5.

10:15-3-5. Exceptions

(a) An exception to requiring a permit would apply to an

Oklahoma CPA or PA who is testifying in his or her capacity as an

employee of other than a public accounting firm.

(b) Expert witness testimony from a certified public accountant

or public accountant who is credentialed in another jurisdiction

other than Oklahoma does not require the individual to obtain an

Oklahoma CPA certificate or PA license provided the CPA or PA

clearly states to the Court that an Oklahoma CPA certificate, PA

license or permit to practice public accounting is not held and the

individual identifies the jurisdiction(s) in which the CPA or PA is

credentialed.

OKLAHOMA ADMINISTRATIVE CODE

76

SUBCHAPTER 5. EXAMINATION PROCEDURES

[REVOKED]

Section

10:15-5-1. Eligibility to take examination [REVOKED]

10:15-5-2. Schedule of examinations [REVOKED]

10:15-5-3. Notice of examinations [REVOKED]

10:15-5-4. Restrictions [REVOKED]

10:15-5-5. Prohibited acts regarding the examination process

[REVOKED]

SUBCHAPTER 7. APPLICATION TO TAKE AN

EXAMINATION [REVOKED]

Section

10:15-7-1. Requirements for filing applications [REVOKED]

10:15-7-2. Educational requirements [REVOKED]

10:15-7-3. Candidate for reexamination [REVOKED]

10:15-7-4. Evaluation of application [REVOKED]

10:15-7-5. Denial of application [REVOKED]

10:15-7-6. Board review of denied applications [REVOKED]

10:15-7-7. Payment of fee [REVOKED]

SUBCHAPTER 9. EXAMINATION CONTENT

[REVOKED]

Section

10:15-9-1. Content of examinations until May 1, 1994

[REVOKED]

10:15-9-2. Content of examinations [REVOKED]

10:15-9-3. Examination documents [REVOKED]

10:15-9-4. Confidentiality agreement required [REVOKED]

OKLAHOMA ADMINISTRATIVE CODE

77

SUBCHAPTER 11. GRADING OF EXAMINATIONS

[REVOKED]

Section

10:15-11-1. Grading service [REVOKED]

10:15-11-2. Grade requirements [REVOKED]

10:15-11-3. Successful completion of examination until May 1,

1994 [REVOKED]

10:15-11-4. Successful completion of examination

[REVOKED]

10:15-11-5. Ineligibility for reexamination [REVOKED]

10:15-11-6. Notification of grade [REVOKED]

10:15-11-7. Procedures to request review of the grading

process [REVOKED]

10:15-11-8. Appeal [REVOKED]

10:15-11-9. Destruction of papers [REVOKED]

SUBCHAPTER 13. CONDITIONAL CREDIT ON

EXAMINATION [REVOKED]

Section

10:15-13-1. Conditional credit for candidates for certificates

[REVOKED]

10:15-13-2. Conditional credit for candidates for licenses

[REVOKED]

10:15-13-3. Conversion of conditional credit beginning May 1,

1994 [REVOKED]

10:15-13-4. Requests for extension of time [REVOKED]

OKLAHOMA ADMINISTRATIVE CODE

78

SUBCHAPTER 15. TRANSFER OF EXAMINATION

CREDITS [REVOKED]

Section

10:15-15-1. Application for transfer of credits [REVOKED]

10:15-15-2. Requirements to qualify for transfer of credits

[REVOKED]

SUBCHAPTER 17. PROCEDURES UPON FAILURE TO

APPLY FOR OR TAKE EXAMINATION [REVOKED]

Section

10:15-17-1. Processing fee to retake examination

[REVOKED]

10:15-17-2. Failure to apply to take succeeding examinations

[REVOKED]

10:15-17-3. Reestablishment of eligibility [REVOKED]

SUBCHAPTER 18. COMPUTER-BASED

EXAMINATION

Section

10:15-18-1. Applications for examination

10:15-18-2. Time and place of examination

10:15-18-3. Retake and granting of credit requirements

10:15-18-4. Educational requirements

10:15-18-5. Evaluation of application

10:15-18-6. Denial of application

10:15-18-7. Board review of denied applications

10:15-18-8. Content of examinations

10:15-18-9. Notification of grade

10:15-18-10. Procedures to request review of the grading

process

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10:15-18-11. Requests for extension of time

10:15-18-12. Application for transfer of credits

10:15-18-13. Requirements to qualify for transfer of credits

10:15-18-14. Failure to apply to take succeeding examinations

10:15-18-15. Cheating

10:15-18-16. Security and irregularities

10:15-18-1. Applications for examination

(a) An application for qualification in a format prescribed by the

Board, will not be considered filed until the application and all

required fees as provided by §15.8 of the Act and supporting

documents, including but not limited to photographs and official

transcripts as proof that the applicant has satisfied the education

requirement, are received by the Board.

(b) Evidence, by submission to a national criminal history

record search, that the applicant has not committed a criminal

offense that would disqualify the applicant from holding a

certificate or license.

(c) A candidate’s application for examination will not be

considered filed until the application in a format prescribed by the

Board and the application fee as provided in Subchapter 27 are

received by the Board.

(d) Failure of a candidate to furnish all information requested

by the Board within the time frame set by the Board shall be

grounds for denying such candidate admission to the examination.

(e) Any candidate who gives false information to the Board in

order to be eligible to take the examination shall be subject to

disciplinary action by the Board.

10:15-18-2.

Time and place of examination

Eligible candidates shall be notified of the Notice to

Schedule (NTS) as issued by the National Association of State

Boards of Accountancy (NASBA). The candidate shall

independently contact the test center operator to schedule the time

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80

and place for the examination at a test site approved by the Board

within a six month period from the date the NTS is issued.

10:15-18-3.

Retake and granting of credit requirements

(a) A grade of seventy-five (75) in each required test section

shall be the minimum passing grade for purposes of granting

credit.

(b) A candidate may take the required test sections individually

and in any order. Credit for any test section(s) passed shall be

valid for eighteen months from the date the candidate took that test

section, without having to attain a minimum score on any failed

test section(s) and without regard to whether the candidate has

taken other test sections.

A CPA candidate must pass all four test sections of the

AICPA Uniform CPA Examination within a rolling eighteen-

month period, which begins on the date that the first test section(s)

passed is taken. In the event all four test sections of the AICPA

Uniform CPA Examination are not passed within the rolling

eighteen-month period, credit for any test section(s) passed outside

the eighteen-month period will expire and that/those test section(s)

must be retaken.

(c) A candidate shall be deemed to have passed the CPA

examination once the candidate holds at the same time valid credit

for passing each of the four test sections of the examination within

the rolling eighteen month period. For purposes of this section,

credit for passing a test section of the computer-based examination

is valid from the actual date of the testing event for that test

section, regardless of the date the candidate actually receives

notice of the passing grade.

(d) Provided, however, that regardless of language in

subsections (b) and (c) that restricts valid exam credits to a rolling

eighteen-month period, the Board may authorize time-limited

credit and candidacy extensions consistent with national standards

and practice.

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10:15-18-4. Educational requirements

(a) A qualification applicant shall show, to the satisfaction of

the Board, that the applicant has graduated from an accredited

four-year college or university.

(1) As to an applicant whose college credits are

reflected in quarter hours, each quarter hour of credit shall

be considered as two-thirds (2/3) of one (1) semester hour

when determining semester hour credits necessary to

qualify for examination or transfer of credits.

(2) When determining eligibility based on educational

qualifications, the Board shall consider only educational

credit reflected on official transcripts, from an accredited

two-year or four-year college or university.

(3) The Board may accept as temporary consideration,

an official letter signed and sealed by the registrar’s office

of any two-year or four-year college or university attesting

to the completion of educational qualifications of any

qualification applicant, provided that official transcripts are

submitted to the Board prior to any score release.

(4) The specific requirement that each applicant shall have

completed at least one (1) course in auditing may only be

satisfied with an auditing or assurance course taken for

credit from an accredited two-year or four-year college or

university. Such course must have a concentration on

external auditing standards including but not limited to

Statements on Auditing Standards (SAS).

(b) When determining eligibility of a qualification applicant,

the Board shall not consider any combination of education and

experience.

(c) The Board will also consider a qualification applicant who

has graduated from a college or university located outside the

United States if an educational evaluation performed by a national

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82

credential evaluation service, as approved by the Board, certifies in

writing that the applicant’s course of study and degree are

equivalent to the requirements set forth in Section 15.8 of the Act.

(d) One hundred fifty (150) semester hours or its equivalent of

collegiate education is required to qualify for any examination as

set forth in Section 15.8.C. of the Oklahoma Accountancy Act.

Any MIS or AIS course, or derivative thereof, as defined in 10:15-

1-2, used by the applicant to qualify must have a substantial

relationship, either direct or indirect, to the accounting profession.

However, only AIS courses will qualify for the core accounting

courses as required in Section 15-8.C.

(e) Any candidate who has qualified to take the examination

on the basis of education prior to July 1, 2003, is not subject to

subparagraph (d) of this subsection.

10:15-18-5.

Evaluation of application

Evaluation of qualifications and approval of applications to

take an examination or for transfer of credits shall be performed by

the Executive Director, or his/her designee, subject to the

limitations set forth in Subchapter 10:15-37-11.

10:15-18-6. Denial of application

(a) Any qualification applicant or candidate who has not met

the applicable qualifications and/or whose application has been

denied shall be notified in writing. The written notice shall include

the reason(s) for the denial.

(b) If an application is denied, the qualification applicant or

candidate may file a written request with the Board for a review of

the denial. The qualification applicant or candidate shall have the

burden of demonstrating to the Board that the qualifications

required by the Oklahoma Accountancy Act and the rules

implementing the Act have been met. Any evidence submitted by

the qualification applicant or candidate shall be in documentary

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form.

10:15-18-7. Board review of denied applications

(a) The Board shall consider all requests for review of denied

applications.

(b) The issues considered for review shall include, but not be

limited to, the statutory eligibility requirements and rules upon

which the denial of the application was based.

(c) The qualification applicant or candidate who has requested

the review shall be notified in writing of the Board’s decision. If

the denial is sustained by the Board, the written notice shall

include the reason(s) for sustaining the denial.

(d) If the denial of the application is sustained, and the

qualification applicant or candidate is not satisfied with the

decision of the Board, the qualification applicant or candidate may

request in writing a public hearing before the Board. Such request

shall be granted only if the qualification applicant or candidate can

provide additional information to the Board which was not

previously available to the Board at the time of the initial

evaluation, review, or denial. Any additional evidence shall be in

documentary form. If any additional evidence is to be presented

by oral testimony, a written synopsis of that oral evidence shall

accompany the request for a public hearing.

(e) If the Board grants a public hearing to the qualification

applicant or candidate, the hearing may be held in conjunction with

the next regular meeting of the Board or at a special meeting of the

Board.

10:15-18-8.

Content of examinations

The examination for certification as a certified public

accountant shall be the AICPA Uniform Certified Public

Accountant Examination.

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84

10:15-18-9.

Notification of grade

Each candidate shall be advised of the grade earned in each

test section for which the candidate was examined. The names of

candidates who have been granted credit for all test sections of the

CPA examination will be made public after the grades have been

certified in accordance with Board policy.

10:15-18-10. Procedures to request review of the grading

process

(a) A candidate may request a review or appeal of non-passing

examination scores with the appropriate review or appeal

organization.

(b) The cost of the review or appeal shall be paid by the

candidate.

10:15-18-11. Requests for extension of time

(a) A candidate may apply for an extension of the time limits

set by this Subchapter if the candidate is called to active military

service or becomes incapacitated as a result of illness or injury.

(b) The candidate shall file a written request with the Board for

an extension after receiving the call to active military service and

shall furnish a copy of the orders to active military service or

furnish written evidence of incapacitation or injury.

(c) Within sixty (60) calendar days after the candidate is

discharged from active military service, the candidate shall furnish

the Board with copies of the discharge orders. The candidate shall

then be required to take one (1) test section for which the candidate

is eligible within the next six (6) months following the candidate's

discharge from military service or rehabilitation from

incapacitation or injury.

(d) The candidate shall file a written request with the Board for

an extension should serious illness or injury incapacitate the

candidate to the extent that the illness or injury prevents the

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85

candidate from examination testing. The candidate shall furnish a

copy of an original and signed diagnosis directly related to the

injury or illness from a licensed, qualified physician. The

professional must provide a precise statement setting forth the

determination that the illness or injury precludes the candidate

from testing and the time period involved. The Board will follow

federal Health Insurance Portability and Accountability Act

(HIPAA) guidelines.

10:15-18-12. Application for transfer of credits

(a) An individual who has taken the AICPA Uniform Certified

Public Accountant Examination in any jurisdiction may apply to

the Board for the transfer of credits granted.

(b) The application shall be in such format as the Board

prescribes.

(c) The applicant shall submit written verification of the valid

credits from the examining authority responsible for administering

the examination at which such credits were earned.

(d) The applicant shall meet all other eligibility requirements

established to take the examination in Oklahoma at the time of

filing the application.

10:15-18-13. Requirements to qualify for transfer of credits

(a) Upon the filing of an application to transfer credits on the

AICPA Uniform Certified Public Accountant Examination, the

Board shall accept and transfer such credits, if, at the time the

application to transfer credits is filed with the Board, the applicant

has met the following requirements:

(1) The credits were earned by the applicant while

taking an examination administered by the examining

authority responsible for conducting such examinations

pursuant to the laws of any jurisdiction.

(2) The applicant was examined and passed all subjects

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86

of the AICPA Uniform Certified Public Accountant

Examination in the same manner as required for Oklahoma

candidates.

(3) All credits were earned pursuant to Rule 10:15-18-3

immediately preceding the date the application to transfer

credits is filed with the Board.

(b) In the case of an applicant for examination who has met all

eligibility requirements and seeks to transfer credits, the

acceptance of such credits by the Board shall result in the applicant

being approved to take the examination in the subjects for which

no credit was transferred.

(c) In the case of an applicant for a certificate who has met all

requirements as provided in §15.9 and seeks to transfer the four (4)

credits, the acceptance of such credits by the Board shall result in

the issuance of a certificate to the applicant.

(d) In the case of an applicant for a license who has met all

requirements as provided in §15.9 and seeks to transfer the three

(3) credits, the acceptance of such credits by the Board shall result

in the issuance of a license to the applicant.

10:15-18-14. Failure to apply to take succeeding examinations

If a candidate fails to sit for a test section for eighteen (18) months

after approval, or fails to sit for one (1) test section for an eighteen

(18) month period, that individual shall no longer be considered a

candidate and must reapply as a qualification applicant and meet

the qualification requirements in effect at the time of making

application.

10:15-18-15. Cheating

(a) Cheating by a candidate in applying for, taking or

subsequent to the examination will invalidate any score earned by

the candidate on any or all test sections of the examination and

may warrant summary expulsion from the test site and

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disqualification from taking the examination for a specified period

of time or indefinitely.

(b) For purposes of this subsection, the following actions or

attempted activities, among others, may be considered cheating:

(1) Falsifying or misrepresenting educational credentials

or other information required for admission to the

examination;

(2) Communication between candidates inside or outside

the test site or copying another candidate’s answers while

the examination is in progress;

(3) Communication with others inside or outside the test

site while the examination is in progress;

(4) Substitution of another person to sit in the test site in

the stead of a candidate;

(5) Reference to crib sheets, textbooks or other material or

electronic media (other than that provided to the

candidate as part of the examination) inside or outside the

test site while the examination is in progress;

(6) Violating the nondisclosure prohibitions of the

examination or aiding or abetting another in doing so, or

otherwise participating in the collection of test items for

use, redistribution or sale;

(7) Retaking or attempting to retake a test section by an

individual holding a valid certificate or by a candidate who

has unexpired credit for having already passed the same

test section, unless the individual has been directed to

retake a test section pursuant to Board order or unless the

individual has been expressly authorized by the Board to

participate in a “secret shopper” program.

(c) In any case where it appears that cheating has occurred or

is occurring, the Board or its representatives may either summarily

expel the candidate involved from the examination or move the

candidate to a position in the test center away from other

examinees where the candidate can be watched more closely.

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(d) In any case where the Board believes that it has evidence

that a candidate has cheated on the examination, including those

cases where the candidate has been expelled from the examination,

the Board shall conduct an investigation and may conduct a

hearing consistent with the requirements of the Administrative

Procedures Act following the examination session for the purpose

of determining whether or not there was cheating and, if so, what

remedy should be applied. In such proceedings, the Board’s

decision shall include, but not be limited to:

(1) Whether the candidate shall be given credit for any

portion of the examination completed in that session; and

(2) Whether the candidate shall be barred from taking

the examination and, if so, for what period of time.

(e) If the candidate is allowed to continue taking the

examination, the Board may:

(1) Admonish the candidate;

(2) Require the candidate be seated in a segregated

location for the rest of the examination;

(3) Keep a record of the candidate’s seat location and

identifying information, and the names and identifying

information of the candidates in close proximity of the

candidate; and

(4) Notify NASBA, the AICPA and the test center of the

circumstances so that the candidate may be more closely

monitored in future examinations.

(f) In any case in which a candidate is refused credit granted

for any test section of an examination taken, disqualified from

taking any test section, or barred from taking the examination in

the future, the Board may provide the findings and actions taken to

any other jurisdiction to which the candidate may apply for the

examination.

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10:15-18-16. Security and irregularities

Notwithstanding any other provisions under these rules, the

Board may postpone scheduled examinations, the release of scores,

or the issuance of certificates due to:

(1) A breach of examination security;

(2) Unauthorized acquisition or disclosure of the

contents of an examination;

(3) Suspected or actual negligence, errors, omissions,

or irregularities in conducting an examination; or

(4) For any other reasonable cause or unforeseen

circumstance.

SUBCHAPTER 19. PROCTORING OF CANDIDATES

TAKING EXAMINATIONS [REVOKED]

Section

10:15-19-1. Request for Board proctoring service

[REVOKED]

10:15-19-2. Payment of fee [REVOKED]

10:15-19-3. Limitations and restrictions on proctored

examinations [REVOKED]

10:15-19-4. Oklahoma candidates taking examination in other

states [REVOKED]

SUBCHAPTER 20. INTERNET PRACTICE

REQUIREMENTS

Section

10:15-20-1 Requirements regarding practice or solicitation of

an engagement via electronic means

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10:15-20-1 Requirements regarding practice or solicitation of

an engagement via electronic means

(a) An individual offering or rendering professional accounting

services to Oklahoma clients from a Website or any electronic

means shall disclose, via any such Website or any electronic

means, the individual’s principal jurisdiction of licensure, license

number and an address as a means for regulators and the public to

contact the individual regarding complaints, questions or

regulatory compliance.

(b) A firm offering or rendering professional accounting

services to Oklahoma clients from a Website or any electronic

means shall provide on the Website’s homepage or electronic

medium, a name, an address, and the principal jurisdiction of

licensure as a means for regulators and the public to contact a

responsible licensee in charge at the firm regarding complaints,

questions, or regulatory compliance.

SUBCHAPTER 21. RECIPROCITY

Section

10:15-21-1. Application for certificate or license

10:15-21-2. Basis for reciprocal certificate or license

[REVOKED]

10:15-21-3. Evaluation of qualifications

10:15-21-4. Denial of application

10:15-21-5. Review of applications by Board

10:15-21-6. Payment of fee

10:15-21-7. International reciprocity

10:15-21-1.

Application for certificate

(a) An applicant seeking to obtain an Oklahoma reciprocal

certificate, who holds a valid certificate pursuant to the laws of

another jurisdiction shall provide the Board with:

(1) written proof of test scores received on all

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examinations from the examining jurisdiction;

(2) written information that the applicant met or

currently meets all Oklahoma requirements for eligibility as

provided by statute, §15.13, Title 59, Oklahoma Statutes

and these rules;

(3) a current certificate of good standing from the

jurisdiction who issued the certificate upon which the

reciprocal certificate is based;

(4) written proof of having met all Oklahoma

continuing professional educational requirements for those

applicants seeking a permit to practice public accounting;

(5) evidence of successful completion of the AICPA

ethics examination or its equivalent as determined by the

Board; and

(6) evidence, by means established in Section 15.9 of

the Act, is obtained to substantiate that the applicant is of

good character.

(b) The application for a reciprocal certificate shall be filed

within one hundred twenty (120) days of employment with a public

accounting firm located in this state or engaging in the practice of

public accounting in Oklahoma.

(c) An application for a reciprocal certificate, in a format

prescribed by the Board, will not be considered filed until the

application, all required documents as proof that the applicant has

satisfied the eligibility requirements, and fees are received by the

Board.

(d) The filed application of an active duty military personnel or

their spouse shall be processed expeditiously and the requested

certificate shall be issued within thirty (30) days, assuming the

eligibility requirements are met. In addition, pursuant to the

Military Service Occupation, Education, and Credentialing Act, the

reciprocal application fee shall be waived for an active duty

military personnel or their spouse.

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10:15-21-2. Basis for reciprocal certificate or license

[REVOKED]

10:15-21-3. Evaluation of qualifications

Evaluation and approval or denial of the application for a

reciprocal certificate shall be performed by the Executive Director

or his or her designee.

10:15-21-4. Denial of application

(a) Any applicant who has not met the applicable qualifications

and whose application has been denied shall be notified in writing.

The written notice shall include the reason(s) for the denial of the

application for reciprocity.

(b) If an application is denied, the applicant may file a written

request with the Board for a review of the denial. The applicant

shall have the burden of demonstrating to the Board that the

qualifications required by the Oklahoma Accountancy Act and by

the rules implementing that Act have been met. Any evidence

submitted by the applicant with the written request shall be in

documentary form.

10:15-21-5. Review of applications by Board

(a) The Board shall consider all requests for review of denied

applications for reciprocity.

(b) The issues considered for review shall include but not be

limited to, the statutory eligibility requirements and rules upon

which the denial of the application was based.

(c) The applicant who has requested the review shall be

notified in writing of the decision by the Board. If the denial is

sustained by the Board, the written notice shall include the

reason(s) for sustaining the denial.

(d) If the denial of an application is sustained, and the

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applicant is not satisfied with the decision of the Board, an

applicant may request, in writing, a public hearing before the

Board. Such request shall be granted only if the applicant can

provide additional information to the Board which was not

previously available to either the Executive Director, his or her

designee, or the Board at the time of the initial evaluation or

review. Any additional evidence shall be in documentary form. If

any additional evidence is to be presented by oral testimony, a

written synopsis of that oral evidence shall accompany the request

for a public hearing.

(e) If the Board grants a public hearing to the applicant, the

hearing may be held in conjunction with the next regular meeting

of the Board or at a special meeting of the Board.

10:15-21-6.

Payment of fee

Each application for a reciprocal certificate shall be

accompanied by all applicable fees.

10:15-21-7.

International reciprocity

In addition to the requirements found in Rule 10:15-21-1,

the Board may rely on the International Qualifications Appraisal

Board for evaluation of foreign credential equivalency for a

foreign reciprocal certificate. Such foreign applicant shall report

any investigations undertaken, or sanctions imposed, by a foreign

credentialing body against the applicant’s foreign credential.

Suspension or revocation of, or refusal to renew, the applicant’s

foreign accounting credential by the foreign credentialing body, or

conviction of a felony or any crime involving dishonesty or fraud

under the laws of a foreign country may be evidence of conduct

reflecting adversely upon the foreign reciprocal certificate holder’s

fitness to retain the certificate and may be a basis for Board action.

The Board shall notify the appropriate foreign credentialing

authorities of any sanctions imposed against the foreign reciprocal

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certificate holder. The Board may participate in joint

investigations with foreign credentialing bodies and rely on

evidence supplied by such bodies in disciplinary hearings.

SUBCHAPTER 22. SUBSTANTIAL EQUIVALENCY

Section

10:15-22-1. Notification [REVOKED]10:15-22-2. Sole

proprietorship firm permit

10:15-22-1. Notification [REVOKED]

10:15-22-2. Sole proprietorship firm permit

A qualified non-resident sole proprietorship seeking

practice privileges in this state to perform attest services shall be

required to register the firm and obtain a permit to practice public

accounting within thirty (30) days after the firm knowingly avails

itself of the laws of this state by accepting an attest engagement.

SUBCHAPTER 23. REGISTRATION

Section

10:15-23-1. Registration of individuals

10:15-23-2. Registration of firms

10:15-23-2.1 Non-CPA owners of public accounting firms or

affiliated entities

10:15-23-3. Amendments to registrant status

10:15-23-1.

Registration of individuals

(a) All individuals shall register annually by the last day of the

individuals’ birth months as provided in Section 15.14 of the

Oklahoma Accountancy Act and shall file a registration statement

with the Board in a format prescribed by the Board. The certificate

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95

or license shall be considered lapsed after the last day of the birth

month.

(b) All registration statements shall be accompanied by a

registration fee.

(1) In the case of a registrant who has reached the age

of sixty-five (65), the registration fee shall be reduced, as

provided in Subchapter 27.

(2) In the case of a registrant who is disabled beyond

gainful employment, as provided in Section 15.14 of the

Oklahoma Accountancy Act, the registration fee may be

waived for the period of disability.

(3) In the case of a registrant who is retired as defined

in Subchapter 1, the registration fee shall be waived.

(4) Pursuant to the Military Service Occupation,

Education and Credentialing Act, the first year registration

fee shall be waived for an active duty military personnel or

their spouse.

(5) All requests for a reduction or waiver of the

registration fee shall be addressed to the Board, in writing.

(6) The Board shall use its discretion in determining the

conditions required for disability.

(c) In addition to the registration fee paid by an individual,

there shall be a fee for registering after the last day of the renewal

month but within twelve (12) months after the lapse date of the

certificate or license.

(d) In addition to the registration fee paid by an individual,

there shall be a fee for registering later than twelve (12) months

following the lapse date of the certificate or license.

(e) Evaluation of qualifications and approval of registrations

filed by individuals shall be performed by the Executive Director

or his/her designee, subject to the review and supervision of the

Board.

(f) Denial of individual registrations shall be by the Board.

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(g) During the period when a certificate or license is suspended

by the Board, the suspended registrant shall be required to file

annually with the Board an informational report in a format

prescribed by the Board. No fee shall be required with such filing.

(h) Renewal forms delivered to the Board office via carrier

service with a postmark or ship date on or before the set expiration

date as provided in this subsection shall be deemed timely filed.

10:15-23-2.

Registration of firms

(a) On or before June 30 of each year all firms of certified

public accountants and all firms of public accountants qualified to

register shall file a registration statement with the Board in a

format prescribed by the Board.

(b) The registration statement filed on behalf of a firm of

certified public accountants shall be made by a partner or

shareholder.

(c) The statement filed on behalf of a firm of public

accountants shall be made by a partner or shareholder.

(d) Evaluation of qualifications and approval of registrations

filed by firms shall be performed by the Executive Director or

his/her designee, subject to the review and supervision of the

Board.

(e) Denial of firm registrations shall be by the Board.

(f) Except for sole proprietorships, all registration statements

filed on behalf of a firm shall be accompanied by an annual

registration fee and the applicable permit fee for the firm, as

provided in Subchapter 27.

(g) Firm filings delivered to the Board office via carrier service

with a postmark or ship date on or before June 30 shall be deemed

timely filed.

10:15-23-2.1. Non-CPA owners of public accounting firms or

affiliated entities

(a) A firm which includes non-CPA owners may not qualify

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97

for a firm registration and permit unless every non-CPA owner of

the firm:

(1) is an individual;

(2) is actively providing personal services in the nature

of management of some portion of the firm’s business

interest or performing services for clients of the firm or an

affiliated entity;

(3) is of good character as defined in Section 15.9 of

the Act;

(4) is not a suspended or revoked CPA or PA;

(5) who is a resident of Oklahoma is registered with the

Board in the same manner as a CPA under Section 15:14 of

the Oklahoma Accountancy Act on a form prescribed by

the Board.

(b) Each of the non-CPA owners who are residents of

Oklahoma must:

(1) be in compliance with Oklahoma tax laws;

(2) provide evidence of the successful completion (90%

or better), within the past 365 days prior to initial

registration, of the AICPA Ethics Examination or its

equivalent as determined by the Board;

(3) comply with the Rules of Professional Conduct as

set out in 10:15-39-1;

(4) hold a baccalaureate or graduate degree conferred

by a college or university, or equivalent education as

determined by the Board;

(5) maintain any professional designation held by the

individual in good standing with the appropriate

organization or regulatory body that is identified or used in

an advertisement, letterhead, business card, or other firm-

related communication;

(6) maintain continuing education in accordance with

Section 10:15-32-1, provided credit shall be given for any

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other professional CPE or equivalent professional

continuing education earned;

(7) submit to a national criminal history record check.

The costs associated with the record check shall be paid by

the non-CPA owner.

(c) A “Non-CPA Owner” includes any individual who has any

financial interest in the firm or any voting rights in the firm.

10:15-23-3.

Amendments to registrant status

(a) Should a registrant's CPA certificate or PA license be

revoked for failure to register under the provisions of Section

15.14.F.2 of the Act and the Board later learns the registrant was

deceased prior to the administrative revocation, the registrant's

status will be changed from revoked to deceased provided

documentation stating the registrant is deceased is received by the

Board.

(b) Should a disabled registrant's CPA certificate or PA license

be revoked for failure to register under the provisions of Section

15.14.F.2 of the Act and the Board later learns the registrant was

incapacitated at the time of the administrative revocation, the

registrant's status may be changed from revoked to disabled

provided documentation is received by the Board verifying the

registrant was incapacitated and unable to file the appropriate

registration form prior to the revocation.

SUBCHAPTER 24. RETURN OF CERTIFICATE OR

LICENSE

Section

10:15-24-1. Voluntary surrender of certificate or license

10:15-24-2. Deceased registrants

10:15-24-1. Voluntary surrender of certificate or license

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99

(a) Upon voluntary surrender of a certificate or license, the

registrant shall not be required to return the certificate or license

into the custody of the Board if:

(1) The registrant has retired from all types of

employment regulated by the Oklahoma Accountancy

Board regardless of the registrant’s age; and

(2) The Board’s records indicate that no enforcement

actions have been taken against the registrant within the

last ten (10) years.

(b) If the registrant has not retired from all types of

employment regulated by the Oklahoma Accountancy Board and

no longer wishes to hold an Oklahoma certificate or license, the

certificate or license shall be returned to the Board.

10:15-24-2. Deceased registrants

Upon notification that the registrant is deceased, no request

for the return of the certificate or license shall be made.

SUBCHAPTER 25. PERMITS

Section

10:15-25-1. Term of permit

10:15-25-2. Date of issue

10:15-25-3. Individual permit

10:15-25-4. Firm permits

10:15-25-5. Transitional period for individuals entering and re-

entering public practice

10:15-25-1. Term of permit

Each permit shall have a maximum term of one (1) year

unless extended by the Board.

10:15-25-2. Dates of issuance and expiration

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100

(a) Permits renewed on a timely basis shall bear a date of issue

of the first day of the month after the registrant’s birth month for

individuals and July 1 for firms except sole proprietorships. All

other permits, except for (d) and (e) below, shall bear a date of

issue based on the date the acceptable application for a permit is

received in the Board office.

(b) Except for sole proprietorships, firm permits renewed on a

timely basis shall bear a date of issuance of July 1 and shall expire

on the following June 30.

(c) Sole proprietorship firm permits shall bear the same date of

issuance and expiration as the sole proprietor's individual permit.

(d) When the Board has granted an extension, the date of

issuance will be determined on a case by case basis.

(e) If an application for a permit which has been returned to

the holder for correction or completion of information is returned

to the Board in an acceptable format within thirty (30) calendar

days of the first denial, the permit shall bear the date on which the

permit application was first received in the office of the Board.

Failure to resubmit an acceptable application within the thirty-day

period shall cause the permit to be dated with the date the

acceptable application is received in the Board office.

(f) Effective January 1, 2010, individual permits renewed on a

timely basis shall bear the date of the first day of the month

immediately following the individuals’ birth months and shall

expire the following year on the last day of the individuals’ birth

months.

10:15-25-3.

Individual permit

(a) Any registrant engaged in the practice of public accounting,

regardless of whether such services are rendered for compensation,

must have a permit, except for a licensed attorney providing tax

services who does not display the certificate or license and does

not have any reference thereto on professional stationery, business

cards, or printed or electronic format. However, for purposes of

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101

this section, an individual may not be considered to be in the

practice of public accounting if the individual performs an

incidental amount of non-compensated services for immediate

family members. An individual who meets the definition of retired

or inactive status as defined in the Code or the Act is not

considered to be in the practice of public accounting. In order to

obtain a permit, an individual must have a valid certificate or

license, be properly registered, pay all applicable fees, and comply

with the continuing education requirements.

(b) The application for renewal of a permit shall be filed with

the Board in a format prescribed by the Board prior to the

expiration of the permit.

(c) At the time the application for a permit is filed, the

registrant shall attest to compliance with the continuing education

requirement for the applicable compliance period as specified by

the Board.

(d) An application for a permit may be filed at any time during

the year by a registrant who is entering or reentering the practice of

public accounting. Such registrant shall attest to compliance with

the applicable continuing education requirement.

(e) The fees to obtain a permit to practice shall accompany the

application. The fees for the renewal of permits are set forth in

Subchapter 27. However, pursuant to the Military Service

Occupation, Education and Credentialing Act, the first year permit

fee shall be waived for an active duty military personnel or their

spouse.

10:15-25-4.

Firm permits

(a) Each firm permit shall have a maximum term of one (1)

year unless extended by the Board and shall expire on June 30

following the date of issuance.

(b) The application for renewal of a firm permit shall be filed

with the Board in a format prescribed by the Board prior to the

expiration of the permit currently held.

(c) Each firm with an office located in Oklahoma applying for

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102

a permit to practice as a certified public accountant firm or as a

public accountant firm shall submit a written affidavit signed by an

owner, partner, member or shareholder demonstrating compliance

with the requirements set out in Section 15.15A of the Oklahoma

Accountancy Act and attesting that each partner, shareholder,

owner, member and certified or licensed employee of the firm

serving Oklahoma clients holds a valid individual permit or enters

the state under the provisions of Section 15.12A of the Act, or is a

non-CPA owner as provided for in 10:15-23-2.1.

(d) A firm is required to hold a valid permit if that firm is

serving Oklahoma clients from outside this state only if such firm

is providing services under the provision of Section 15.12A.A.5 of

the Act.

(e) Each firm required to hold a permit shall pay the applicable

fee.

10:15-25-5. Transitional period for individuals entering and

re-entering public practice

(a) A registrant who immediately gives written notice to the

Board upon changing to public accounting status from nonpublic

status may be granted a period of sixty (60) days from the date the

registrant begins the practice of public accounting in which to

complete the continuing education credit required for issuance of

the permit. Such courses shall comply with the criteria set forth in

Subchapter 30. The procedure for administering the code is as

follows:

(1) The registrant shall furnish a letter if self employed

or from the employer, if employed, attesting to the

beginning date of the registrant's self employment or

employment, and shall furnish a list of courses in which the

registrant has enrolled during the 60-day period. The list

should include course title, name of sponsor, CPE credits to

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103

be awarded, and approximate date course is to be

completed.

(2) Upon receipt of the written notification, the

Executive Director or his/her designee shall review the

request for sufficiency of information and shall ascertain

whether the registrant is to be granted the transitional CPE

compliance period.

(3) The registrant shall be notified by letter within five

(5) working days whether the transitional period has been

granted. Such letter shall grant permission for the

registrant to practice public accounting, without penalty,

for the sixty (60) day transitional period or shall state the

specific reason why the transitional period was not granted.

A copy of the letter notifying the registrant that the

transitional period was not granted will also be mailed to

the registrant's employer, if employed.

(b) If a registrant is unable to qualify for the permit within the

sixty (60) days provided for herein, the registrant may apply in

writing one time to the Board for an additional thirty (30) day

period in which to qualify for the permit. The procedure for doing

so is as follows:

(1) The written petition shall set forth the reason(s) for

the registrant's inability to satisfy the CPE requirement

within the sixty (60) days previously granted. The petition

shall set forth the precise manner in which the registrant

will satisfy the requirement for the issuance of a permit if

the additional thirty (30) days is granted.

(2) Upon receipt of the petition from the self employed

registrant or the employer, the Executive Director or his/her

designee shall decide whether the registrant is to be granted

the additional thirty (30) days in which to comply.

(3) If granted, the thirty (30) day period shall

commence following the last day of the sixty (60) day

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period. The registrant and the employer, if applicable, shall

be notified by the Board within five (5) working days

following the Board's receipt of the employer's petition.

(4) If the additional thirty (30) day period is denied, the

registrant and the employer, if applicable, will be informed

in writing of the specific reason(s) for the denial within five

(5) working days following receipt of the petition.

(5) Upon denial of the additional thirty (30) day period,

the registrant and the employer, if applicable, will be

notified in writing that the registrant must cease practicing

public accounting until such time as the registrant has been

issued the permit.

(c) Approval by the Board of such request(s) shall authorize

the registrant to practice public accounting during the time

period(s) referred to in this Subchapter.

SUBCHAPTER 27. FEES

Section

10:15-27-1. Initial application to take CPA examination

[REVOKED]

10:15-27-2. Initial application to take PA examination

[REVOKED]

10:15-27-3. Reexamination [REVOKED]

10:15-27-3.1. Qualification and examination fees

10:15-27-4. Examination processing fee [REVOKED]

10:15-27-5. Transfer of credits

10:15-27-6. Out of state candidates [REVOKED]

10:15-27-7. Reciprocal application [REVOKED]

10:15-27-7.1. Substantial equivalence [REVOKED]

10:15-27-7.2. Reciprocal application

10:15-27-8. Registration

10:15-27-9. Permit

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10:15-27-9.1. Proration of fees for transition to birth month

renewals [REVOKED]

10:15-27-10. Reinstatement

10:15-27-11. Duplicate certificate or license

10:15-27-12. Copies

10:15-27-13. Portal convenience fee [REVOKED]

10:15-27-14. Peer review fee

10:16-27-15. Fee waiver low-income individual

10:17-27-16. Initial determination of eligibility

10:15-27-1. Initial application to take CPA examination

[REVOKED]

10:15-27-2. Initial application to take PA examination

[REVOKED]

10:15-27-3. Reexamination [REVOKED]

10:15-27-3.1. Qualification and examination fees

Qualification applicants and candidates shall, for each

application filed with the Board, pay a Seventy-five Dollar ($75.00) fee

and shall be responsible for all fees charged by the American Institute

of Certified Public Accountants, National Association of State Boards

of Accountancy (NASBA), and test delivery service provider which are

payable to NASBA prior to scheduling the examination.

10:15-27-4. Examination processing fee [REVOKED]

10:15-27-5. Transfer of credits

The application fee required with an application to transfer

credits shall be One Hundred Forty-five Dollars ($145.00).

10:15-27-6. Out of state candidates [REVOKED]

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10:15-27-7. Reciprocal application [REVOKED]

10:15-27-7.1. Substantial equivalence [REVOKED]

10:15-27-7.2. Reciprocal application

Each reciprocal application shall be accompanied by an

administrative fee of One Hundred Forty-five Dollars ($145.00).

10:15-27-8. Registration

(a) The annual registration fee for an individual renewing the

certificate or license will be Seventy-five Dollars ($75.00), or Fifty

Dollars ($50.00) for registrants age sixty-five (65) or older, and is

due by the last day of the registrant’s birth month.

(1) In addition to the registration fee there shall be a fee

for registering after the last day of the individuals’ birth

months, but within twelve (12) months after the lapse date

of the certificate or license, of Seventy-five Dollars

($75.00) or for an individual who has reached the age of

sixty-five (65), the fee shall be Fifty Dollars ($50.00).

(2) In addition to the registration fee, there shall be a

fee for registering later than twelve (12) months following

the lapse date of the certificate or license, of One Hundred

Twenty-five Dollars ($125.00) or for an individual who has

reached the age of sixty-five (65), the fee shall be Seventy-

five Dollars ($75.00).

(b) The registration fee for a firm, except a sole proprietorship,

of certified public accountants or public accountants shall be

Seventy-five Dollars ($75.00) per year.

10:15-27-9. Permit

(a) The fee for an individual permit which is not a renewal

permit shall be One Hundred Twenty-five Dollars ($125.00).

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(b) The fee to renew an individual permit shall be One

Hundred Twenty-five Dollars ($125.00) which will be renewable

by the last day of the individuals’ birth months.

(c) A fee of One Hundred Twenty-five Dollars ($125.00) shall

be paid at the time a firm, except a sole proprietorship, which

provides public accounting services to Oklahoma clients applies

for a permit.

10:15-27-9.1. Proration of fees for transition to birth month

renewals [REVOKED]

10:15-27-10. Reinstatement

The application fee required with an application for

reinstatement within the first year of the revocation or cancelled

date shall be One Hundred Twenty-five Dollars ($125.00). The fee

required with an application for reinstatement after a year from the

revocation or cancelled date shall be equal to the accumulated

registration and permit fees the individual would have paid had the

individual been registered during the cancelled or revoked period,

not to exceed Five Thousand Dollars ($5,000.00). The fee shall be

calculated using the registration and permit fee amounts in place in

the year of reinstatement. In the event that a reinstatement

application is rejected by the Board, the applicant shall receive a

refund of any reinstatement fee paid over the amount of One

Hundred Twenty-five Dollars ($125.00).

10:15-27-11. Duplicate certificate or license

There shall be a fee of One Hundred Fifty Dollars

($150.00) for a duplicate certificate or license except for changes

of name or the physical destruction or mutilation of a certificate,

for which the fee shall be Ten Dollars ($10.00).

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10:15-27-12. Copies

(a) There shall be a charge of Twenty-Five Cents ($.25) per

page for copies of records of the Board, except that a single copy

of a final order from an administrative hearing or a consent order

may be furnished at no charge in response to a request from a

member of the public.

(b) In the event a request for copies is for a commercial

purpose or would cause disruption of the performance of the

regular duties of the Board or Board staff, there shall be an

additional charge computed and assessed based on the cost of

personnel necessary to accomplish the copying request.

10:15-27-13. Portal convenience fee [REVOKED]

10:15-27-14. Peer review fee

There shall be a peer review fee of One Hundred Twenty-

five Dollars ($125.00) for every modified, pass with deficiency,

fail, or report which requires follow up filed with the Board.

10:15-27-15. Fee waiver for low-income individual

Upon presentation of satisfactory evidence that an applicant

is a low-income individual, the Board shall grant a one-time one-

year waiver of any fees associated with the license or certificate.

This waiver shall not include fees charged by NASBA, AICPA,

Prometric, or any other outside organization, nor shall it include

any fines or costs assessed as a result of any disciplinary action.

For purposes of this section, a “low-income individual” means an

individual who is enrolled in a state or federal public assistance

program, including but not limited to, the Temporary Assistance

for Needy Families, Medicaid or the Supplemental Nutrition

Assistance Program, or whose household adjusted gross income is

below one hundred forty percent (140%) of the federal poverty line

or a higher threshold to be set by the executive branch department

that oversees business regulation.

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10:15-27-16. Initial determination of eligibility

Each request for an initial determination of eligibility due

to criminal history record shall be accompanied by an

administrative fee of Ninety-Five Dollars ($95.00).

SUBCHAPTER 29. CONTINUING PROFESSIONAL

EDUCATION [REVOKED]

Section

10:15-29-1. Continuing professional education compliance

period [REVOKED]

10:15-29-1.1. Burden of proof [REVOKED]

10:15-29-2. CPE transition provisions for renewal of permit

[REVOKED]

10:15-29-3. CPE compliance period for new CPAs and PAs

[REVOKED]

10:15-29-4. Required CPE for issuance of a permit

[REVOKED]

10:15-29-5. Reciprocity [REVOKED]

10:15-29-6. Reporting and documentation by registrants

[REVOKED]

10:15-29-7. Qualifying subjects [REVOKED]

10:15-29-8. Verification [REVOKED]

10:15-29-9. Penalties for noncompliance with the CPE

requirement [REVOKED]

10:15-29-10. Exceptions [REVOKED]

SUBCHAPTER 30. CONTINUING PROFESSIONAL

EDUCATION

Section

10:15-30-1. Burden of proof

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10:15-30-2. Required CPE for issuance of an original permit

10:15-30-3. Required CPE for issuance of a lapsed permit

10:15-30-4. Required CPE for renewal of a permit

10:15-30-5. Reporting and documentation by certificate and

license holders

10:15-30-6. Verification of CPE credit

10:15-30-7. Penalties to certificate and license holders for

noncompliance with the CPE requirement

10:15-30-8. Exceptions to CPE reporting requirements

10:15-30-9. Re-entering active status

10:15-30-1. Burden of proof

The burden of proof rests solely upon certificate and license

holders to demonstrate to the satisfaction of the Board, in

accordance with the Oklahoma Accountancy Act, their CPE

exempt status or that all continuing education courses reported

meet all the requirements as to content and subject matter related to

the profession as provided in subchapter 32 of this Code.

10:15-30-2. Required CPE for issuance of an original

permit

Certificate and license holders applying for their first

permit to practice public accounting must report a minimum of

forty (40) hours of CPE, earned within the previous calendar year

or within 365 days immediately preceding the date of the

application and shall also provide evidence of the successful

completion of the AICPA Ethics Examination or its equivalent as

determined by the Board before a permit will be issued. If the

ethics examination course is to be counted toward the CPE

required for the permit, it must have been completed during the

same period as the remaining CPE reported to obtain the permit.

Any ethics course meeting the requirements for issuance of an

original permit must have been passed with a score of 90% or

above.

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10:15-30-3. Required CPE for issuance of a lapsed permit

Certificate and license holders previously holding a permit

to practice public accounting must report a minimum of forty (40)

hours of CPE earned within the previous calendar year or within

365 days immediately preceding the date of the application and

shall also provide evidence of the successful completion of the

AICPA Ethics Examination or its equivalent as determined by the

Board before a permit will be issued. If the ethics examination

course is to be counted toward the CPE required for the permit, it

must have been completed during the same period as the remaining

CPE reported to obtain the permit. Any ethics course meeting the

requirements for the renewal of a lapsed permit must have been

passed with a score of 90% or above.

10:15-30-4.

Required CPE for renewal of a permit

Certificate and license holders renewing their current

permit to practice public accounting must comply with the

provisions of 10:15-30-5.

10:15-30-5. Reporting and documentation by certificate and

license holders

(a) Certificate and license holders not otherwise exempt must

complete one hundred twenty (120) hours of qualifying CPE

within a rolling three (3) calendar year period. A certificate or

license holder’s rolling three (3) calendar year period begins

January 1 in the year the certificate or license holder was required

to earn CPE. A minimum of twenty (20) hours of acceptable CPE,

shall be completed each calendar year. Effective January 1, 2009,

four hours of professional ethics must be completed within each

rolling three (3) calendar year period

(b) Each certificate or license holder shall annually report CPE

for the preceding calendar year or claim an exemption to the CPE

OKLAHOMA ADMINISTRATIVE CODE

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requirement for the preceding calendar year. This reporting shall

take place in conjunction with the filing of the certificate or license

holder's annual registration renewal based on the certificate or

license holder's birth month.

(c) The professional ethics requirement as mandated in this

section may be met by courses from other licensed professional

disciplines that relate directly to the practice of public accounting,

such as law or securities and may be met by courses on ethical

codes in jurisdictions other than Oklahoma.

(d) CPE hours claimed for credit may be claimed only for the

compliance period in which the course was completed and credit

granted.

(e) Each letter or certificate of completion shall include the

date of completion of the seminar or course as evidenced by:

(1) Date the in-attendance course was completed;

(2) Date a self-study course was completed and

evidenced by the date of certified mailing or date of

facsimile transmission to the program sponsor;

(3) Date an internet self-study course is transmitted to

the program sponsor.

(f) At the time of completing each course, or within sixty (60)

days thereafter, the certificate or license holder shall obtain a letter

or certificate attesting to completion of the course from the sponsor

of the course. Such letters or certificates shall be retained for a

period of five (5) years after the end of the calendar year in which

the program is completed and shall include the specific

information set forth in the Board’s CPE Standards in 10:15-32-

6(a).

(g) Participants in CPE programs shall also retain descriptive

material for five (5) years which reflects the content of a course in

the event the participant is requested by the Board to substantiate

the course content. Examples of such descriptive materials might

include:

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(1) course descriptions;

(2) course outlines; and

(3) course objectives.

(h) If a certificate or license holder’s main area of employment

is industry and the certificate or license holder holds a permit to

practice, at least seventy-two (72) hours of the one hundred twenty

(120) hour requirement within a rolling three (3) calendar year

period of the qualifying CPE completed by the certificate or

license holder shall be in subjects related to the practice of public

accounting and shall earn a minimum of eight (8) hours in the

areas of taxation, accounting or assurance per calendar year.

(i) Effective January 1, 2011, if a certificate or license holder

is actively involved in the supervision or review of compilation

engagements for third party reliance, the certificate or license

holder must complete a minimum of four (4) credits of CPE in the

subject area of compilation engagements in each calendar year.

This requirement shall be waived if:

(1) the certificate or license holder works for a public

accounting firm currently enrolled in a peer review

program with an approved sponsoring organization; or

(2) the certificate or license holder is a sole

proprietorship currently enrolled in a peer review program

with an approved sponsoring organization.

10:15-30-6.

Verification of CPE credit or exemption

(a) The Board may periodically conduct verification of

certificate and license holders’ compliance with CPE requirements

or their eligibility to claim an exemption to the CPE requirements.

(b) Such verification shall be conducted by requesting the

certificate or license holder to submit to the Board the

documentation and evidence required to be retained by the

certificate or license holder.

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(c) If a CPE course is not accepted for credit, the certificate or

license holder will be notified and the Board may grant a period of

time for the certificate or license holder to correct the deficiency.

(d) In order to determine compliance with the CPE standards,

the Board may inspect the records of CPE program sponsors and

CPE program developers.

(e) Certificate and license holders shall automatically be

included in the subsequent verification of CPE in any of the

following instances:

(1) If the certificate or license holder failed to

satisfactorily comply with CPE requirements as determined

by the Board;

(2) if a certificate or license holder has been the subject

of an enforcement action by the Board during the preceding

credit verification.

(f) Registrants are required to substantiate credit reported to

the Board, regardless of whether the registrant continues to be

required to hold a permit.

(g) Current valid credit may be substituted for disallowed

credit if offered to the Board by the registrant within sixty (60)

days, or a number of days as determined by the Board, following

notification of a credit deficiency.

(h) Before enforcement action is taken as the result of a CPE

audit deficiency, the Board will issue a second request for

documents and allow sixty (60) days, or a number of days as

determined by the Board, for compliance with the request.

10:15-30-7.

Penalties to certificate and license holders for

noncompliance with the CPE requirement

Failure by a certificate or license holder to document CPE

credits shall constitute a cause for disciplinary action pursuant to

the provisions of the Oklahoma Accountancy Act.

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10:15-30-8.

Exceptions to CPE reporting requirements

All certificate and license holders must comply with CPE

reporting requirements unless exempted below.

(1) The Board exempts from the requirements of CPE

the following classifications:

(A) Retired certificate or license holders who are

no longer employed or practicing public accounting;

(B) Certificate or license holders who are on

active military service;

(C) Disabled certificate or license holders who

are no longer employed or practicing public

accounting due to medical circumstances;

(D) Certificate or license holders who are (A)

not employed due to circumstances other than

retirement, military service or disability or (B)

certificate or license holders employed but not

performing any services associated with accounting

work. For purposes of this section, the term

"associated with accounting work" shall include but

is not limited to the following:

(i) working or supervising work

performed in the areas of financial

accounting and reporting; tax compliance,

planning or advice; management advisory

services; accounting information systems;

treasury, finance or audit or preparing

personal financial statements or investment

plans; or

(ii) representing to the public, including

an employer, that the registrant is a CPA or

PA in connection with the performance or

OKLAHOMA ADMINISTRATIVE CODE

116

sale of any services or products involving

accounting work, including such designation

on a business card, letterhead, promotional

brochure, advertisement, office, website or

any electronic media.

(E) Certificate or license holders who reside and

are registered as a CPA or PA in another state, who

do not serve Oklahoma clients, and who

demonstrate compliance with the resident state’s

CPE requirements. Registrants whose state of

residence does not have a CPE requirement shall

comply with Oklahoma CPE reporting

requirements.

(F) Other good cause as determined by the

Board on an individual basis.

(2) In order to be granted an exemption based on 10:15-

30-8(1) above, certificate and license holders must request

an exemption each year in a format prescribed by the Board

as required in 10:15-30-5(b). An exemption may be denied

at any time if it is determined that the certificate or license

holder was not eligible for the exemption claimed.

(3) In order for an exemption to be granted under

10:15-30-8(1) above, the Board may require the following

affidavits:

(A) The registrant completes and forwards to the

Board a sworn affidavit indicating that the registrant

will not be associated with accounting work during

the period for which the exemption is requested. A

registrant who has been granted this exemption and

who re-enters the work force shall be required to

comply with 10:15-30-9; and

(B) The registrant forwards to the Board a sworn

affidavit from the employer or organization

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indicating no association with accounting work. The

affidavit shall include, as a minimum, a brief

description of the duties performed, job title, and

verification by the registrant's immediate supervisor

that there is no reliance on the registrant's expertise

as a CPA or PA.

(C) The registrant completes and forwards to the

Board a sworn affidavit indicating that the registrant

resides out of state, is registered as a CPA or PA in

that state, is not serving Oklahoma clients, and is

compliant with the resident state’s CPE

requirement.

(4) The Executive Director or his/her designee may

grant extensions or exemptions for good cause on a case by

case basis, and a report of such actions shall be provided to

the Board.

(5) A certificate or license holder exempt from the

requirement of CPE by reason of retirement or inactive

status must indicate "retired" or "inactive" if they use their

"CPA" or "PA" designation in any manner.

10:15-30-9.

Re-Entering Active Status

An inactive status registrant upon return to active status

must comply with CPE requirements as follows:

(1) The rolling three (3) calendar year CPE cycle of a

registrant returning to active status shall begin January 1 of

the year in which the registrant returns to active status.

Forty (40) hours of the CPE credit reported to meet the

requirements to return to active status will be counted

toward the three (3)-year CPE cycle for the calendar year in

which it is earned if the credit is earned:

(A) within the calendar year the registrant

returns to active status, or

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(B) within one year of the date the registrant

returns to active status.

(2) For each calendar year in which the registrant

claimed an exemption or failed to report CPE pursuant to

the CPE requirement, the registrant must complete forty

(40) hours of CPE.

(3) The maximum number of CPE hours required to

return to active status shall be one hundred twenty (120)

hours, including at least four (4) hours of professional

ethics.

(4) If the number of CPE hours required to return to

active status is fewer than one hundred twenty (120), two

(2) hours of professional ethics must be included.

(5) The registrant may claim any CPE hours earned

while on inactive status during the preceding rolling three

(3) calendar year period.

(6) A registrant who immediately gives written notice

to the Board upon changing to active status may be granted

the following time periods in which to complete the CPE

required by this section:

(A) Sixty (60) days from the date of the return to

active status for registrants needing forty (40) or

fewer hours of CPE; and

(B) One year from the date of the return to

active status for any additional CPE above the (40)

hours described in (A) above.

(7) A registrant must document, in a format prescribed

by the Board, all qualified CPE required by this rule.

(8) At its discretion, the Board may modify the

requirements of this rule for good cause on a case by case

basis.

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SUBCHAPTER 31. STANDARDS FOR CONTINUING

PROFESSIONAL EDUCATION [REVOKED]

Section

10:15-31-1. General standards for structured CPE

[REVOKED]

10:15-31-2. Standards for structured CPE program

development [REVOKED]

10:15-31-3. Standards for structured CPE program

presentation [REVOKED]

10:15-31-4. Standards for structured CPE program

measurement [REVOKED]

10:15-31-5. Standards for structured CPE program reporting

by participant [REVOKED]

10:15-31-6. Documentation and record-keeping standards for

CPE sponsors [REVOKED]

SUBCHAPTER 32. STANDARDS FOR CONTINUING

PROFESSIONAL EDUCATION (CPE) PROGRAMS

Section

10:15-32-1. Standards for certificate and license holders

10:15-32-2. Standards for CPE program sponsors

10:15-32-3. Standards for CPE program development

10:15-32-4. Standards for CPE program presentation

10:15-32-5. Standards for CPE program measurement

10:15-32-6. Standards for CPE program reporting

10:15-32-1. Standards for certificate and license holders

(a) All certificate and license holders should participate

inlearning activities that maintain and/or improve their professional

competence.

(1) Selection of learning activities should be a

thoughtful, reflective process addressing the individual

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registrant’s current and future professional plans, current

knowledge and skills level, and desired or needed

additional competence to meet future opportunities and/or

professional responsibilities.

(2) Registrants’ fields of employment do not limit the

need for CPE. Those performing professional services need

to have a broad range of knowledge, skills, and abilities.

Thus, the concept of professional competence should be

interpreted broadly. Accordingly, acceptable continuing

education encompasses programs contributing to the

development and maintenance of both technical and non-

technical professional skills.

(3) Acceptable subjects include accounting,

assurance/auditing, consulting services, specialized

knowledge and applications, management, taxation, and

ethics. Other subjects, including personal development,

may also be acceptable if they maintain and/or improve the

registrant’s professional competence.

(4) To help guide their professional development,

registrants may find it useful to develop a learning plan.

The learning plan can be used to evaluate learning and

professional competence development. It should be

reviewed periodically and modified as professional

competence needs change.

(b) Certificate and license holders should comply with all

applicable CPE requirements and should claim CPE credit only for

CPE programs when the CPE program sponsors have complied with

the Standards for CPE Program Presentation and Standards for

CPE Program Reporting.

(1) Certificate and license holders are responsible for

compliance with all applicable CPE requirements, rules,

and regulations of state licensing bodies, other

governmental entities, membership associations, and other

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professional organizations or bodies. They should contact

each appropriate entity to which they report to determine its

specific requirements or any exceptions it may have to the

standards presented herein.

(2) Periodically, registrants participate in learning

activities which do not comply with all applicable CPE

requirements, for example specialized industry programs

offered through industry sponsors. If registrants propose to

claim credit for such learning activities, they should retain

all relevant information regarding the program to provide

documentation to state licensing bodies and/or all other

professional organizations or bodies that the learning

activity is equivalent to one which meets all these

Standards.

(c) Registrants are responsible for accurate reporting of the

appropriate number of CPE credits earned and should retain

appropriate documentation of their participation in learning

activities, including:

(1) name and contact information of CPE program

sponsor;

(2) title and description of content;

(3) date(s) of program; and

(4) number of CPE credits, all of which should be

included in documentation provided by the CPE program

sponsor.

(d) To protect the public interest, regulators require CPAs and

PAs to document maintenance and enhancement of professional

competence through periodic reporting of CPE. For convenience,

measurement is expressed in CPE credits. However, the objective of CPE

must always be maintenance/enhancement of professional competence,

not attainment of credits. Compliance with regulatory and other

requirements mandates that registrants keep documentation of their

participation in activities designed to maintain and/or improve

professional competence. In the absence of legal or other requirements, a

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reasonable policy is to retain documentation for a minimum of five years

from the end of the year in which the learning activities were completed.

(e) Participants must document their claims of CPE credit.

Examples of acceptable evidence of completion include:

(1) For group and independent study programs, a

certificate or other verification supplied by the CPE

program sponsor;

(2) For self-study programs, a certificate supplied by

the CPE program sponsor after satisfactory completion of

an examination;

(3) For instruction credit, a certificate or other

verification supplied by the CPE program sponsor;

(4) For a university or college course that is

successfully completed for credit, a record or transcript of

the grade the participant received;

(5) For university or college non-credit courses, a

certificate of attendance issued by a representative of the

university or college; and

(6) For published articles, books, or CPE programs, (1)

a copy of the publication (or in the case of a CPE program,

course development documentation) that names the writer

as author or contributor, (2) a statement from the writer in a

format prescribed by the Board supporting the number of

CPE h o u r s c l a i m e d , a n d ( 3) the name and

contact information of the independent reviewer(s) or publisher.

(f) Individuals who complete sponsored learning activities that

maintain or improve their professional competence should claim

the CPE credits recommended by CPE program sponsors.

(g) Registrants may participate in a variety of sponsored

learning activities, such as workshops, seminars and conferences,

self-study courses, Internet-based programs, and independent

study. While CPE program sponsors determine credits, CPAs

should claim credit only for activities through which they

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maintained or improved their professional competence. CPAs who

participate in only part of a program should claim CPE credit only

for the portion they attended or completed.

(h) Registrants may engage in independent study under the

direction of a CPE program sponsor who has met the applicable

standards for CPE program sponsors when the subject matter and

level of study maintain or improve their professional competence.

(i) Independent study is an educational process designed to

permit a participant to learn a given subject under the guidance of a

CPE program sponsor one-on-one. Participants in an independent

study program should:

(1) Enter into a written learning contract with a CPE

program sponsor who must comply with the applicable

standards for CPE program sponsors.

(2) Accept the written recommendation of the CPE

program sponsor as to the number of credits to be earned

upon successful completion of the proposed learning

activities. CPE credits will be awarded only if:

(A) All the requirements of the

independent study as outlined in the

learning contract are met;

(B) The CPE program sponsor reviews

and signs the participant's report;

(C) The CPE program sponsor reports to

the participant the actual credits

earned; and

(D) The CPE program sponsor provides

the participant with contact

information.

(3) Retain the necessary documentation to satisfy

regulatory requirements as to the content, inputs, and

outcomes of the independent study.

(4) Complete the program of independent study in 15

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weeks or less.

(j) The credits to be recommended by an independent study

CPE program sponsor should be agreed upon in advance and

should be equated to the effort expended to improve professional

competence. The credits cannot exceed the time devoted to the

learning activities and may be less than the actual time involved.

10:15-32-2. Standards for CPE Program Sponsors

(a) CPE program sponsors are responsible for compliance with

all applicable standards and other CPE requirements.

(b) CPE program sponsors may have to meet specific CPE

requirements of state licensing bodies, other governmental entities,

membership associations, and/or other professional organizations

or bodies. Professional guidance for CPE program sponsors is

available from the AICPA and NASBA; state-specific guidance is

available from the state boards of accountancy. CPE program

sponsors should contact the appropriate entity to determine

requirements.

(c) Self-study courses considered for CPE credit must be:

(1) offered by sponsors registered with NASBA; or

(2) courses offered by the AICPA or other such

organizations as determined by the Board.

10:15-32-3.

Standards for CPE Program Development

(a) Sponsored learning activities must be based on relevant

learning objectives and outcomes that clearly articulate the

knowledge, skills, and abilities that can be achieved by participants

in the learning activities. Learning activities provided by CPE

program sponsors for the benefit of CPAs should specify the level,

content, and learning objectives so that potential participants can

determine if the learning activities are appropriate to their

professional competence development needs. Levels include, for

example, basic, intermediate, advanced, update, and overview.

(b) CPE program sponsors should develop and execute

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learning activities in a manner consistent with the prerequisite

education, experience, and/or advance preparation of participants.

To the extent it is possible to do so, CPE program sponsors should

make every attempt to equate program content and level with the

backgrounds of intended participants. All programs must clearly

identify prerequisite education, experience, and/or advance

preparation, if any, in precise language so that potential

participants can readily ascertain whether they qualify for the

program.

(c) CPE program sponsors must use activities, materials, and

delivery systems that are current, technically accurate, and

effectively designed. CPE program sponsors must be qualified in

the subject matter.

(1) To best facilitate the learning process, sponsored

programs and materials must be prepared, presented and

updated timely. Learning activities must be developed by

individuals or teams having expertise in the subject matter.

Expertise may be demonstrated through practical

experience or education.

(2) CPE program sponsors must review the course

materials periodically to assure that they are accurate and

consistent with currently accepted standards relating to the

program’s subject matter.

(d) CPE program sponsors of group and self-study programs

must ensure learning activities are reviewed by qualified persons

other than those who developed them to assure that the program is

technically accurate and current and addresses the stated learning

objectives. These reviews must occur before the first presentation

of these materials and again after each significant revision of the

CPE programs. Individuals or teams qualified in the subject matter

must review programs. When it is impractical to review certain

programs in advance, such as lectures given only once, greater

reliance should be placed on the recognized professional

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competence of the instructors or presenters. Using independent

reviewing organizations familiar with these standards may enhance

quality assurance.

(e) CPE program sponsors of independent study learning

activities must be qualified in the subject matter. A CPE program

sponsor of independent study learning activities must have

expertise in the specific subject area related to the independent

study. The CPE program sponsor must also:

(1) Review, evaluate, approve and sign the proposed

independent study learning contract, including agreeing in

advance on the number of credits to be recommended upon

successful completion.

(2) Review and sign the written report developed by the

participant in independent study.

(3) Retain the necessary documentation to satisfy

regulatory requirements as to the content, inputs, and

outcomes of the independent study.

(f) Self-study programs must employ learning methodologies

that

clearly define learning objectives,

guide

the participant

(f) through the learning process and provide evidence of a participant’s

satisfactory completion of the program.

(1) To guide participants through a learning process, CPE

program sponsors of self-study programs must elicit

participant responses to test for understanding of the

material, offer evaluative feedback to incorrect responses,

and provide reinforcement feedback to correct responses.

To provide evidence of satisfactory completion of the

course, CPE program sponsors of self-study programs must

require participants to successfully complete a final

examination with a minimum-passing grade of at least 70

percent before issuing CPE credit for the course.

Examinations may contain questions of varying format, (for

example, multiple-choice, essay and simulations.) If

objective type questions are used, at least five questions per

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CPE credit must be included on the final examination. For

example, the final examination for a five-credit course must

include at least 25 questions.

(2) Self-study programs must be based on materials

specifically developed for instructional use. Self-study

programs requiring only the reading of general professional

literature, IRS publications, or reference manuals followed

by a test will not be acceptable. However, the use of the

publications and reference materials in self-study programs

as supplements to the instructional materials could qualify

if the self-study program complies with each of the CPE

standards.

10:15-32-4.

Standards for CPE Program Presentation

(a) CPE program sponsors must provide descriptive materials

that enable registrants to assess the appropriateness of learning

activities. To accomplish this, CPE program sponsors must

informparticipants in advance of learning objectives, prerequisites,

program level, program content, advance preparation, instructional

delivery methods, recommended CPE credit, and course registration

requirements.

(1) For potential participants to effectively plan their

CPE, the program sponsor should disclose the significant

features of the program in advance (e.g., through the use of

brochures, Internet notices, invitations, direct mail, or other

announcements). When CPE programs are offered in

conjunction with non-educational activities, or when

several CPE programs are offered concurrently,

participants should receive an appropriate schedule of

events indicating those components that are recommended

for CPE credit. The CPE program sponsor’s registration

policies and procedures should be formalized, published,

and made available to participants.

(2) CPE program sponsors should distribute program

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materials timely and encourage participants to complete

any advance preparation requirements. All programs should

clearly identify prerequisite education, experience, and/or

advance preparation requirements, if any, in the descriptive

materials. Prerequisites should be written in precise

language so that potential participants can readily ascertain

whether they qualify for the program.

(b) CPE program sponsors must ensure instructors are

qualified with respect to both program content and instructional

methods used.

(1) Instructors are key ingredients in the learning process

for any group program. Therefore, it is imperative that CPE

program sponsors exercise great care in selecting qualified

instructors for all group programs. Qualified instructors are

those

who

are

capable,

through

training,

education,

or

experience of communicating effectively and providing an

environment conducive to learning. They should be competent

and current in the subject matter, skilled in the use of the

appropriate instructional methods and technology, and prepared

in advance.

(2) CPE program sponsors should evaluate the

instructor’s performance at the conclusion of each program

to determine the instructor’s suitability to serve in the

future.

(c) CPE program sponsors must employ an effective means for

evaluating learning activity quality with respect to content and

presentation, as well as provide a mechanism for participants to

assess whether learning objectives were met.

(1) The objectives of evaluation are to assess participant

satisfaction with specific programs and to increase

subsequent program effectiveness. Evaluations, whether

written or electronic, should be solicited from participants

and instructors for each program session, including self-

study, to determine, among other things, whether:

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(A) Stated learning objectives were met;

(B) If applicable, prerequisite requirements were

appropriate;

(C) Program materials were accurate;

(D) Program materials were relevant and

contributed to the achievement of the learning

objectives;

(E) Time allotted to the learning activity was

appropriate;

(F) If applicable, individual instructors were

effective;

(G) Facilities and/or technological equipment was

appropriate;

(H) Handout or advance preparation materials were

satisfactory; or

(I) Audio and video materials were effective.

(2) CPE program sponsors should periodically review

evaluation results to assess program effectiveness and

should inform developers and instructors of evaluation

results.

(d) CPE program sponsors must ensure instructional methods

employed are appropriate for the learning activities. Learning

activities should be presented in a manner consistent with the

descriptive and technical materials provided.

(1) CPE program sponsors should evaluate the

instructional methods employed for the learning activities

to determine if the delivery is appropriate and effective.

Integral aspects in the learning environment that should be

carefully monitored include the number of participants and

the facilities and technologies employed in the delivery of

the learning activity.

(2) CPE program sponsors are expected to present

learning activities that comply with course descriptions and

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objectives. Appropriate supplemental materials may also be

used.

10:15-32-5.

Standards for CPE program measurement

(a) Sponsored learning activities are measured by program

length, with one 50-minute period equal to one CPE credit. One-

half CPE credit increments (equal to 25 minutes) are permitted

after the first credit has been earned in a given learning activity.

(1) For learning activities in which individual segments

are less than 50 minutes, the sum of the segments should be

considered one total program. For example, five 30-minute

presentations

would

equal

150

minutes

and

should

be

(1) counted as three CPE credits. When the total minutes of a

sponsored learning activity are greater than 50, but not equally

divisible by 50, the CPE credits granted should be rounded down

to the nearest one-half credit. Thus, learning activities with

segments totaling 140 minutes should be granted two and one-

half CPE credits.

(2) While it is the participant’s responsibility to report

the appropriate number of credits earned, CPE program

sponsors must monitor group learning activities to assign

the correct number of CPE credits.

(3) For university or college credit courses that meet

these CPE Standards, each unit of college credit shall equal

the following CPE credits:

(A) Semester System 15 credits; and

(B) Quarter System 10 credits;

(4) For university or college non-credit courses that

meet these CPE standards, CPE credits shall be awarded

only for the actual classroom time spent in the non-credit

course.

(5) Credit is not granted to participants for preparation

time.

(6) Only the portions of committee or staff meetings

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that are designed as programs of learning and comply with

these standards qualify for CPE credit.

(b) CPE credit for self-study learning activities must be based

on a pilot test of the average completion time. A sample of

intended professional participants should be selected to test

program materials in an environment and manner similar to that in

which the program is to be presented. The sample group of at least

three individuals must be independent of the program development

group and possess the appropriate level of knowledge before

taking the program. The sample does not have to ensure statistical

(b) validity. CPE credits should be recommended based on the average

completion time for the sample. If substantive changes are subsequently

made to program materials further pilot tests of the revised program

materials should be conducted to affirm or amend, as appropriate, the

average completion time. Self-study courses considered for CPE credit

must be:

(1) offered by sponsors registered with NASBA; or

(2) courses offered by the AICPA or other such

organizations as determined by the Board.

(c) Instructors or discussion leaders of learning activities should

receive CPE credit for both their preparation and presentation time

to the extent the activities maintain or improve their professional

competence and meet the requirements of these CPE standards.

(1) Instructors, discussion leaders, or speakers who

present a learning activity for the first time should receive

CPE credit for actual preparation time up to two times the

number of CPE credits to which participants would be

entitled, in addition to the time for presentation.

(2) Instructors of university or college courses can claim a

maximum of fifteen (15) CPE credits per college credit hour

taught to the extent the preparation required for the course

maintains or improves their professional competence.

(3) For repeat presentations, CPE credit as provided in (1)

and (2) above can be claimed only if it can be demonstrated

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that the learning activity content was substantially changed

and such change required significant additional study or

research.

(d) Writers of published articles, books, or CPE programs

should receive CPE credit for their research and writing time to the

extent it maintains or improves their professional competence.

CPE credit from this activity shall be limited to 10 CPE credits per

calendar year and will be determined by the Board on a case by

(d) case basis. Writing articles, books, or CPE programs for publication is a

structured activity that involves a process of learning. CPE credits should

be claimed only upon publication.

(e) CPE credits recommended by a CPE program sponsor of

independent study must not exceed the time the participant devoted

to complete the learning activities specified in the learning

contract. The credits to be recommended by an independent study

CPE program sponsor should be agreed upon in advance and

should be equated to the effort expended to improve professional

competence. The credits cannot exceed the time devoted to the

learning activities and may be less than the actual time involved.

10:15-32-6. Standards for CPE Program Reporting

(a) CPE program sponsors must provide program participants

with documentation of their participation, which includes the

following:

(1) CPE program sponsor name and contact information;

(2) Participant’s name;

(3) Course title;

(4) Course field of study;

(5) Date offered or completed;

(6) Type of instructional/delivery method used;

(7) Amount of CPE credit recommended; and

(8) Verification by CPE program sponsor representative.

(b) CPE program sponsors should provide participants with

documentation to support their claims of CPE credit. Acceptable

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evidence of completion includes:

(1) For group and independent study programs, a

certificate or other verification supplied by the CPE

program sponsor;

(2) For self-study programs, a certificate supplied by the

CPE program sponsor after satisfactory completion of an

(2) examination;

(3) For instruction credit, a certificate or other

verification supplied by the CPE program sponsor;

(4) For a university or college course that is successfully

completed for credit, a record or transcript of the grade the

participant received;

(5) For university or college non-credit courses, a

certificate of attendance issued by a representative of the

university or college; and

(6) For published articles, books, or CPE programs,

(A) A copy of the publication (or in the case of a

CPE program, course development documentation)

that names the writer as author or contributor; and

(B) A statement from the writer in a format

prescribed by the Board supporting the number of

CPE hours claimed.

(c) CPE program sponsors must retain adequate documentation

for five years to support their compliance with these standards and

the reports that may be required of participants.

(1) Evidence of compliance with responsibilities set forth

under these Standards which is to be retained by CPE

program sponsors includes, but is not limited to:

(A) Records of participation;

(B) Dates and locations;

(C) Instructor names and credentials;

(D) Number of CPE credits earned by participants;

and

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(E) Results of program evaluations.

(2) Information to be retained by developers includes

copies of program materials, evidence that the program

materials were developed and reviewed by qualified

parties, and a record of how CPE credits were determined.

(3) For CPE program sponsors offering self-study

programs, appropriate pilot test records must be retained

regarding the following:

(A) When the pilot test was conducted;

(B) The intended participant population;

(C) How the sample was determined;

(D) Names and profiles of sample participants; and

(E) A summary of participants’ actual completion

time.

SUBCHAPTER 33. PEER REVIEW

Section

10:15-33-1. Establishment of peer review program

10:15-33-2. Special definitions

10:15-33-3. Standards for peer reviews and sponsoring

organizations

10:15-33-3.1. Standards for peer reviewers [REVOKED]

10:15-33-4. Enrollment and participation

10:15-33-5. Effect of successive modified/adverse reports

10:15-33-6. Reporting to the board

10:15-33-7. Peer review oversight committee

10:15-33-1.

Establishment of peer review program

(a) Pursuant to the Oklahoma Accountancy Act, §15.30, the

Board establishes a peer review program to monitor firms'

compliance with applicable accounting and auditing standards

adopted by generally recognized standard-setting bodies. The

program shall emphasize education, including appropriate remedial

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procedures, which may be recommended or required when

financial statement reports do not comply with professional

standards. In the event a firm does not comply with established

professional s t an d a r ds , o r a f i rm ’ s p r o f e s s io na l w o r k

i s s o inadequate as to warrant disciplinary action, the Board shall take

appropriate action to protect the public interest.

(b) This subchapter shall not require any firm to become a

member of any sponsoring organization.

10:15-33-2.

Special definitions

The following words and terms used in this subchapter

shall have the following meanings, unless the context clearly

indicates otherwise.

"Deficiency" in a system review means one or more

findings that the peer reviewer has concluded that due to the

nature, causes, pattern, or pervasiveness, including the relative

importance of the finding to the reviewed firm’s system of quality

control taken as a whole, could create a situation in which the firm

would not have reasonable assurance of performing and/or

reporting in conformity with applicable professional standards in

one or more important respects. It is not a significant deficiency if

the peer reviewer has concluded that except for the deficiency or

deficiencies, the reviewed firm has reasonable assurance of

performing and reporting in conformity with applicable

professional standards in all material respects.

"Deficiency" in an engagement review is one or more

findings that the review captain concludes are material to the

understanding of the financial statements or information and/or

related accountant’s reports or that represent omission of a critical

procedure, including documentation, required by applicable

professional standards. When the review captain concludes that

deficiencies are not evident on all of the engagements submitted

for review, or when the exact same deficiency occurs on each of

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the engagements submitted for review and there are no other

deficiencies, such deficiencies are communicated in a report with a

peer review rating of pass with deficiencies.

"Deficient report" means any report which is pass with

deficiencies or fail.

"Engagement Review" means a peer review where the

peer reviewer evaluates and reports on whether engagements

submitted for review by the practice unit are performed and

reported on in conformity with applicable professional standards in

all material respects.

"Fail" on a system review (audit is highest level of service)

means significant deficiencies have been identified and the firm’s

system of quality control is not suitably designed to provide the

firm with reasonable assurance of performing and reporting in

conformity with applicable professional standards in all material

respects or the firm has not complied with its system of quality

control to provide the firm with reasonable assurance of

performing and reporting in conformity with applicable

professional standards in all material respects. Fail on an

engagement review means the engagements submitted for review

were not performed and/or reported in conformity with applicable

professional standards in all material respects. A fail report with

deficiencies related specifically to compilations would not be

considered deficient for the purposes pursuant to these rules.

"Pass" on a system review means the reviewed firm’s

system of quality control for the accounting and auditing practice

has been suitably designed and complied with to provide the firm

with reasonable assurance of performing and reporting in

conformity with applicable professional standards in all material

respects. Pass on an engagement review means nothing came to

the reviewer’s attention that the engagements submitted for review

were not performed and reported in conformity with applicable

professional standards in all material respects.

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"Pass with deficiencies" on a system review means the

design of the firm’s system of quality control for the accounting

and auditing practice has been suitably designed and complied

with to provide the firm with reasonable assurance of performing

and reporting in conformity with applicable professional standards

in all material respects with the exception of a certain deficiency or

deficiencies that are described in the report. Pass with deficiencies

on an engagement review means that nothing came to the attention

of the reviewer that caused him/her to believe that the engagements

submitted for review were not performed and reported on in

conformity with applicable professional standards in all material

respects except for the deficiencies that are described in the report.

A pass with deficiencies report with deficiencies related

specifically to compilations would not be considered deficient for

the purposes pursuant to these rules.

"Peer review due date" must be a date within six (6)

months after the peer review year end, plus any extensions granted

by the sponsoring organization or the Board.

"Peer review program" means a board-approved study,

appraisal, or review of one or more aspects of the attest or

compilation work of a permittee or licensee of a registered firm in

the practice of public accounting, by a person or persons who hold

licenses in this or another jurisdiction and who are not affiliated

with the person or firm being reviewed.

"Peer review year end" means the year end as determined

by the firm and its reviewer.

"Performance of services" is deemed to start when an

engagement letter is signed or agreement reached.

"Review year" means the peer review covers a one-year

(twelve-month) period. Engagements selected for peer review

normally would have periods ending during the year under peer

review.

"Significant deficiency" in a system review means one or

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more deficiencies that the peer reviewer has concluded results

from a condition in the reviewed firm’s system of quality control

or compliance with it such that the reviewed firm’s system of

quality control taken as a whole does not provide the reviewed

firm with reasonable assurance of performing and/or reporting in

conformity with applicable professional standards in all material

respects.

"Significant deficiency" in an engagement review means

the review captain concludes that all engagements submitted for

review were not performed and/or reported on in conformity with

applicable professional standards in all material respects. The

exception is when more than one engagement has been submitted

for review, the exact same deficiency occurs on each of those

engagements, and there are no other deficiencies, which ordinarily

would result in a report with a peer review rating of pass with

deficiencies.

"Sponsoring organization" means a Board-approved

professional society, or other organization responsible for the

facilitation and administration of peer reviews through use of its

peer review program and peer review standards. The Board shall

periodically publish a list of sponsoring organizations, which have

been approved by the Board.

"System Review" means a peer review intended to provide

the peer reviewer with a reasonable basis for expressing an opinion

on whether, during the year under review: a) the reviewed practice

unit’s system of quality control for its accounting and auditing

practice has been designed in accordance with quality control

standards and b) the reviewed practice unit’s quality control

policies and procedures were being complied with to provide the

practice unit with reasonable assurance of performing and

reporting in conformity with applicable professional standards in

all material respects.

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10:15-33-3. Standards for peer reviews and sponsoring

organizations

(a) The Board adopts "Standards for Performing and Reporting

on Peer Reviews" promulgated by the American Institute of

Certified Public Accountants, as its minimum standards for peer

review of registrants. The Board may approve standards

promulgated by other qualifying sponsoring organizations.

(b) Qualified sponsoring organizations shall be any

organization approved by the Board.

10:15-33-3.1 Standards for peer reviewers [REVOKED]

10:15-33-4. Enrollment and participation

(a) Participation

in

the

program

is

required

of

each

firm

holding a permit from the Board that performs any services which

require a peer review as provided in Section 15.30 of the

Oklahoma Accountancy Act.

(b) Firm enrollment is required as follows:

(1) An existing firm required to participate under

subsection (a) shall enroll in the peer review program of an

approved sponsoring organization within one (1) year from

the performance of services that require a peer review. The

firm shall adopt the peer review due date assigned by the

sponsoring organization, and must notify the Board of the

date within thirty (30) days of its assignment. In addition,

the firm shall schedule and begin an additional peer review

within three (3) years of the previous peer review due date,

or earlier as may be required by the sponsoring

organization. It is the responsibility of the firm to

anticipate its needs for peer review services in sufficient

time to enable the reviewer to complete the peer review by

the assigned review due date.

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(2) An existing firm that subsequently begins

providing services as set forth in subsection (a) shall notify

the Board of the change in status within thirty (30) days

and provide the Board with enrollment information within

twelve (12) months of the date the services were first

provided and have a peer review within eighteen (18)

months of the year end of the engagement performed. This

provision shall also apply to any new firm that provides the

services set forth in subsection (a).

(c) In the event that a firm is merged, otherwise combined,

dissolved, or separated, the sponsoring organization shall

determine which firm is considered the succeeding firm. Any

dispute of the sponsoring organization’s determination shall be

resolved by the Board. The succeeding firm shall retain its peer

review status and the peer review due date.

(d) The Board will accept extensions granted by the sponsoring

organization to complete a peer review, provided the Board is

notified by the firm within thirty (30) days of the date that an

extension is granted.

10:15-33-5.

Effect of consecutive deficient reports

(a) Peer reviews for a firm, including a succeeding firm which

receives two (2) consecutive pass with deficiencies reports and/or

one (1) fail report, may be required by the Board or its designee to

have an accelerated peer review. The year-end and due date of

such peer review is to be determined by the Board giving

consideration of the time required for the firm to implement

remedial actions.

(b) If the accelerated review required by subsection (a) above

results in a deficient report:

(1) The firm may complete any service requiring a peer

review for which field work has already begun only if:

(A) Prior to issuance of any report, the

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141

engagement is reviewed and approved by a third

party reviewer acceptable to the Board or its

designee; and

(B) The engagement is completed within ninety

(90) days of the acceptance of the peer review

report, and letter of response (when applicable) by

the sponsoring organization;

(2) The firm shall be referred to the Vice Chair of the

Board for enforcement investigation.

(3) A firm may petition the Board for a waiver from the

provisions of this rule.

10:15-33-6.

Reporting to the board

(a) Any report or document required to be submitted under this

subsection shall be made available to the Board by a secure

website or other secure means unless the sponsoring organization

does not have access to a secure website or other secure means. In

such case the report may be directly submitted by the firm.

(b) Any report or document required to be submitted under this

subsection shall be filed with the Board within thirty (30) days of

receipt from the sponsoring organization. Such report shall

contain:

(1) A copy of the report and the final letter of

acceptance from the sponsoring organization, if such report

is pass; or

(2) A copy of the report, letter of response, the signed

agreement to the conditional letter of acceptance, and final

letter of acceptance when corrective actions are complete if

the report is pass with deficiencies or fail.

(3) A copy of the Public Company Accounting

Oversight Board (PCAOB) report, if applicable.

(c) Any document submitted to the Board under this subsection

is confidential pursuant to the Act.

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10:15-33-7.

Peer review oversight committee

(a) The Board shall appoint a Peer Review Oversight

Committee for the purpose of:

(1) Monitoring sponsoring organizations to provide

reasonable assurance that peer reviews are being conducted

and reported on in accordance with peer review minimum

standards;

(2) Reviewing the policies and procedures of

sponsoring organization applicants as to their conformity

with the peer review minimum standards; and

(3) Reporting to the Board on the conclusions and

recommendations reached as a result of performing

functions in paragraphs (A) and (B) of this subsection.

(b) The Peer Review Oversight Committee shall consist of

three (3) members nominated by the Chair and approved by the

Board, none of whom is a current member of the Board.

Subsequent committee members shall serve three (3) year terms.

Compensation of Peer Review Oversight Committee members

shall be set annually by the Board. Each member of the Peer

Review Oversight Committee must be active in the practice of

public accounting at a supervisory level or above in the accounting

or auditing function while serving on the committee or any

employee involved at a supervisory level or above in an audit

function of a state or local government. The member, member’s

firm or consulting clients must be enrolled in an approved

practice/monitoring program and have received a pass report on its

most recently completed peer review.

(1) No more than one Peer Review Oversight

Committee member may be from the same firm.

(2) A Peer Review Oversight Committee member may

not concurrently serve as a member of the AICPA’s or any

state’s CPA society ethics or peer review committee.

(3) A Peer Review Oversight Committee member may

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143

not participate in any discussion or have any vote with

respect to a reviewed firm when the committee member

lacks independence or has a conflict of interest. The Board

may appoint alternate committee member(s) to serve in

these situations.

(c) Information concerning a specific firm or reviewer

obtained by the Peer Review Oversight Committee during

oversight

activities

shall

be

confidential, and the firm’s or

reviewer’s identity shall not be reported to the Board. Reports

submitted to the Board will not contain information concerning

specific registrants, firms or reviewers.

(d) As determined by the Board, the Peer Review Oversight

Committee shall make periodic recommendations to the Board, but

not less than annually, as to the continuing qualifications of each

sponsoring organization as an approved sponsoring organization.

(e) The Peer Review Oversight Committee may:

(1) Establish and perform procedures for ensuring that

reviews are performed and reported on in accordance with

the AICPA Standards for Performing and Reporting on

Peer Reviews or other standards as approved by the Board

and the rules promulgated herein by the Board;

(2) Review remedial and correction actions prescribed

that address the deficiencies in the reviewed firm’s system

of quality control policies and procedures;

(3) Monitor the prescribed remedial and corrective

actions to determine compliance by the reviewed firm;

(4) Establish a report acceptance process, which

facilitates the exchange of viewpoints among committee

members and sponsoring organization; and

(5) Communicate to the Board on a recurring basis:

(A) Problems experienced by the enrolled

registrants in their systems of quality control as

noted in the peer reviews conducted by the

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144

sponsoring organization;

(B) Problems experienced in the implementation

of the peer review program; and

(C) A summary of the historical results of the

peer review program.

(f) Committee members shall become disqualified to serve on

Peer Review Oversight Committee if any of the provisions that

qualify the committee member no longer exist or by majority vote

of the Board.

SUBCHAPTER 35. REINSTATEMENT

Section

10:15-35-1. Application for reinstatement

10:15-35-2. Evaluation of applications for reinstatement

10:15-35-3. Reinstatement of reciprocal certificate or license

[REVOKED]

10:15-35-4. Hearing on application for reinstatement

10:15-35-5. Duplicate certificate or license

10:15-35-1. Application for reinstatement

(a) Upon application in a format prescribed by the Board an

individual or firm may request reinstatement of a canceled,

suspended, or revoked certificate or license.

(b) Evidence, by means established in Title 59, Section 15.9 of

the Act, is obtained to substantiate that the applicant is of good

moral character;

(c) In addition to the application fee the applicant shall pay the

required registration fees and permit fee, if applicable, as well as

all costs and fines assessed by the Board which remain unpaid at

the date the application is filed.

(d) Individuals applying for the reinstatement of a certificate or

license must meet the requirements to return to active status in

OKLAHOMA ADMINISTRATIVE CODE

145

10:15-30-9 if they will be providing any services associated with

accounting work.

(e) Individuals applying for the reinstatement of a certificate or

license must show evidence of successful completion of the

AICPA ethics examination or its equivalent as determined by the

Board.

10:15-35-2. Evaluation of applications for reinstatement

(a) Evaluation and approval of applications for reinstatement

shall be performed by the Executive Director.

(b) Denial of applications failing to meet all applicable

requirements for reinstatement shall be by the Board.

10:15-35-3. Reinstatement of reciprocal certificate or license

[REVOKED]

10:15-35-4.

Hearing on application for reinstatement

Upon request by the applicant or any other person, a public

hearing may be scheduled before the Board regarding the

reinstatement of a certificate or license.

10:15-35-5.

Duplicate certificate or license

A duplicate certificate or license will be issued upon

payment of the appropriate fee, as provided by Code 10:15-27-11.

SUBCHAPTER 37. ENFORCEMENT PROCEDURES

Section

10:15-37-1. Enforcement committee

10:15-37-2. Investigation committee

10:15-37-3. Special prosecutors

10:15-37-4. Individual investigator

10:15-37-5. Filing of formal complaint

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146

10:15-37-6. Formal proceedings

10:15-37-7. Discipline for violations by candidates

10:15-37-8. Violations by individuals who do not hold a

certificate or license

10:15-37-9. Violations by certificate or license holders and

candidates

10:15-37-10. Investigation costs

10:15-37-11. Convictions and pleas

10:15-37-1.

Enforcement committee

(a) When a signed, written complaint or information from a

published source comes to the Board, an individual member of the

Board, the Executive Director, or to any member of the Board staff

concerning alleged violations of the Oklahoma Accountancy Act

or the rules of the Oklahoma Accountancy Board, the information

shall be forwarded to the Enforcement Committee. The

Enforcement Committee is comprised of the Vice Chairman and

one (1) other member of the Board who is not an officer of the

Board appointed by the Chairman to receive such information. The

Vice Chairman of the Board shall serve as Chairman of the

Enforcement Committee.

(b) The member(s) of the Board receiving the information may

make appropriate inquiry to verify the information received. Upon

completion of the preliminary inquiry, the Board member(s) may

take one (1) or more of the following actions:

(1) Terminate the investigation because it appears there

has been no violation of the law or rules or there is

insufficient evidence to support any allegation of a

violation.

(2) Attempt an informal resolution of the allegations of

violations contained in the information received.

(3) Refer the matter to the Investigation Committee.

(4) Refer the matter to an individual investigator to

obtain additional information.

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147

(5) Refer the information to a special prosecutor, or

legal counsel for further action.

(6) Hold the file in abeyance pending receipt of

information as a product of an investigation or hearing by

another state or federal agency.

10:15-37-2.

Investigation committee

(a) The Board may appoint an Investigation Committee to

conduct investigations of allegations of violations of the Oklahoma

Accountancy Act or the rules of the Oklahoma Accountancy

Board.

(b) The Investigation Committee shall consist of not less than

three (3) nor more than nine (9) members who shall serve at the

pleasure of the Board.

(1) Only individuals who are holders of permits shall be

eligible to serve on the Investigation Committee.

(2) The members of the Investigation Committee shall

elect one (1) of their members as Chairman who shall

conduct the meetings of the Committee, administer its

activities, and perform such other duties as are assigned by

the Board.

(c) It shall be the duty of the Investigation Committee upon a

request from the Enforcement Committee to investigate to

determine whether there exists probable cause to believe that

misconduct has occurred which justifies the institution of formal

proceedings. The investigation shall be conducted in a timely

manner.

(d) The Investigation Committee shall report to the

Enforcement Committee the result of any investigation promptly

upon its conclusion. Such report shall contain a summary of the

evidence considered by the Committee including any material

provided by the accused, the conclusions of fact and law of the

OKLAHOMA ADMINISTRATIVE CODE

148

Committee, and the recommendation of the Committee with

respect to institution of formal proceedings.

(e) Before a final report adverse to the accused is made, the

Investigation Committee may notify the accused in writing of the

allegations and allow the accused not less than ten (10) calendar days to

reply in writing.

(1) The accused shall not be entitled to a hearing before

the Investigation Committee as a matter of right.

(2) The accused may submit written material for

consideration by the Investigation Committee which shall

be included in the final report to the Enforcement

Committee.

10:15-37-3.

Special prosecutors

(a) The Board may employ lawyers licensed to practice law in

Oklahoma to serve as Special Prosecutors in formal proceedings

before the Board.

(b) An individual serving as Special Prosecutor shall not serve

as legal counsel to the Board in the same formal proceeding.

(c) The Special Prosecutor may perform such other duties as

are assigned by the Board.

10:15-37-4.

Individual investigator

(a) The Enforcement Committee may assign an allegation of a

violation to an individual investigator employed by the Board on a

part time or full time basis.

(b) An investigator may make use of the Investigation

Committee but shall be in full charge of any investigation assigned

by the Enforcement Committee, subject to the direction of the

Board.

10:15-37-5. Filing of formal complaint

(a) All formal complaints shall be filed by the Enforcement

Committee only with the agreement of the Special Prosecutor.

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149

(b) The Enforcement Committee and the Special Prosecutor

must concur. In the event they do not, the Vice Chairman will prepare a

report for the Board and the Board will determine future action.

(c) The formal complaint shall be signed by the Special

Prosecutor or the Vice Chairman.

(d) The formal complaint shall include a concise statement of

the allegations and particular sections of the Oklahoma

Accountancy Act and the rules implementing that Act which are

involved.

10:15-37-6.

Formal proceedings

(a) The Chairman shall set a time and place for the hearing of

the formal complaint, provided that such hearing shall be set not

less than twenty (20) days from service of the complaint and notice

of the proceeding to the accused at the last known address in the

official records of the Board.

(b) Notice may be taken of judicially cognizable facts. In

addition, notice may be taken of generally recognized technical or

scientific facts within the specialized knowledge of one (1) or more

members of the Board.

(c) The accused shall be notified either before or during the

hearing, or by reference in preliminary reports or otherwise of any

material notices, including any staff memoranda or data to be

relied on by the Board and the accused shall be afforded an

opportunity to contest the material so noticed. The experience,

technical competence, and specialized knowledge of the members

of the Board may be utilized in the evaluation of the evidence.

(d) Oral proceedings or any part thereof shall be transcribed

upon request of any party. All costs of such transcription shall be

paid by the requesting party.

(e) Hearings will be conducted by one (1) of the following

OKLAHOMA ADMINISTRATIVE CODE

150

methods, as determined by the Board:

(1) By the Board;

(2) By any member of the Board or a designee of the

Board acting as a hearing examiner or Administrative Law

Judge; or

(3) By an attorney licensed to practice law in this state

appointed by the Board to act as a hearing examiner or

Administrative Law Judge.

(f) The standard of proof in all hearings shall be clear and

convincing evidence.

(g) All orders, whether proposed or final, shall be issued within

ninety (90) calendar days of the hearing. Final orders shall state

their effective date.

(h) The Board shall consider past disciplinary action taken

against any accused found guilty in any present proceeding. Such

past conduct shall not be evidence of guilt in the present

proceeding but will be considered only in determining appropriate

sanctions to be imposed by the Board in the present proceeding.

(i) Unless precluded by law, the accused may waive any right

granted in the law and proceed by stipulation, agreed settlement,

consent order, or default. No provision of this section shall be

construed as prohibiting the Board from suspending, or holding in

abeyance, any formal proceeding pending the outcome of informal

negotiation or informally agreed upon terms.

(j) Any individual who has filed a complaint may be notified

of the final disposition of the matter.

(k) The hearing record of any formal proceeding shall be open

to the public.

(l) The notice and hearing procedures required for individual

proceedings as set forth in the Oklahoma Administrative

Procedures Act shall be followed by the Board.

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151

10:15-37-7. Discipline for violations by candidates

(a) A candidate who is alleged to have violated the Oklahoma

Accountancy Act, the rules implementing that Act, or who

subverts or attempts to subvert the examination process shall be

subject to disciplinary action by the Board. Upon the

determination that the candidate is guilty of the allegations, the

Board may impose one (1) or more of the following disciplinary

measures on the candidate:

(1) Withhold the candidate's grades on the examination;

(2) Declare the candidate's scores on the examination

invalid;

(3) Disqualify the candidate from holding a certificate

or license permanently or for a specified period of time; or

(4) Impose other authorized penalties.

(b) Results of hearings for applicants or candidates will not be

published in the Board’s newsletter.

10:15-37-8. Violations by individuals who do not hold a

certificate or license

(a) In the event the investigation of an allegation against an

individual who is not a holder of a certificate or license concludes

that the accused is in violation of the Oklahoma Accountancy Act

and action should be taken to stop the violation, the Board may

delegate to the Vice Chairman or the Executive Director, or the

Board's designate, acting for the Board, who shall be authorized to:

(1) Send written notice of the accusation, supporting

documentation and a copy of the Complaint and Notice of

Hearing, to be held not later than sixty (60) days following

such notice, to the accused by certified mail, restricted

delivery, return receipt requested. Notice may also be given

by personal service upon the person of the accused in a

manner authorized by the statutes of the State of Oklahoma

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152

for service of process in a civil proceeding;

(2) Provide the accused with a copy of the Oklahoma

Accountancy Act along with its notification of the

accusation and Complaint and Notice of Hearing.

(b) The Board, at a full and formal hearing, shall make a final

determination of the accusations against the accused and issue such

permanent cease and desist order, fine, penalty or other action as

authorized by these Rules and the Oklahoma Accountancy Act.

10:15-37-9. Violations by certificate or license holders and

candidates

(a) Certificate or license holders, firms, and candidates must

cooperate with any investigation conducted by the Board. Failure

to cooperate with such an investigation may result in disciplinary

action by the Board.

(b) In the event the investigation of an allegation against a

certificate or license holder or a candidate concludes that the

accused is in violation of the Oklahoma Accountancy Act or the

rules of the Oklahoma Accountancy Board, the Board shall take

any action authorized by law, or these rules, to protect the public

from the unauthorized or illegal action of the certificate or license

holder.

(c) All proceedings and related procedures shall be conducted

in accordance with the provisions of the Oklahoma Administrative

Procedures Act.

10:15-37-10. Investigation costs

(a) Members of the Investigation Committee, investigators,

and Special Prosecutors may be compensated at a rate established

by the Board on a case by case basis.

(b) Members of the Investigation Committee, investigators and

Special Prosecutors shall submit claims for payment in the same

manner as other vendors doing business with the Board.

OKLAHOMA ADMINISTRATIVE CODE

153

(c) Members of the Investigation Committee, investigators,

and Special Prosecutors shall also be reimbursed for necessary

expenses incurred in the performance of their duties upon

submission of receipts.

10:15-37-11. Convictions and pleas

(a) The provisions of this section shall be applicable, except

where indicated, to applicants for the examination, examination

candidates, and applicants for certificates and licenses, including

registrants seeking renewal of certificates and licenses (applicants).

(b) When an applicant has been convicted of or plead guilty or

nolo contendere to a crime included on the Board’s list of

disqualifying crimes, the applicant shall be required to furnish to

the Board documentation of the charges and the final judgment of

the Court in the form of certified documents from the Court file.

Failure by an applicant for the examination to furnish adequate

documentation no later than sixty (60) days prior to the

commencement of the examination applied for shall result in

denial of the application.

(c) Failure of any applicant to cooperate with an investigation

conducted by the Board shall result in denial of the application.

(d) The Board may obtain from the Oklahoma State Bureau of

Investigation or other sources a criminal record check of any

applicant.

(e) The Board shall maintain and make available to the public

a list of criminal offenses that would disqualify an individual from

obtaining or holding a license or certificate. This list shall be

periodically reviewed, at least annually, and updated, if necessary,

by the Board.

(f) A person with a criminal history record may at any time,

including before obtaining any required education or training,

request an initial determination of whether his or her criminal

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154

history would potentially disqualify the individual from obtaining a

license or certificate. The request shall be in writing and shall

include either a copy of the person’s criminal history record with

explanation of each conviction mentioned in the criminal history

record or a statement describing each criminal conviction including

the date of each conviction, the court of jurisdiction and the

sentence imposed. The person may include a statement with his or

her request describing additional information for consideration by

the Board including, but not limited to, information about his or

her current circumstances, the length of time since conviction and

what has changed since the conviction, evidence of rehabilitation,

testimonials or personal reference statements and his or her

employment aspirations.

(g) Upon receipt of a written request for consideration of a

criminal history record, the Board shall evaluate the request and

make an initial determination based upon the information provided

in such request whether the stated conviction is disqualifying. A

notice of initial determination shall be issued to the petitioner

within sixty (60) days from the date such request was received by

the Board and shall contain the following statements:

(1) Whether the person appears eligible for licensure or

certification at the current time based upon the information

submitted by the requestor;

(2) Whether there is a disqualifying offense prohibiting

the person’s licensure or certification at any time and a

statement identifying such offense in the criminal history

record or information submitted for consideration;

(3) Any actions the person may take to remedy what

appears to be a temporary disqualification, if any;

(4) The earliest date the person may submit another

request for consideration, if any; and

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155

(5) A statement that the notice of initial determination is

only an initial determination for eligibility for licensure or

certification based upon the information provided by the requestor.

(h) The Board may approve applications disclosing criminal

history based upon the nature of the crime, the time period which

has elapsed since the offense was committed, and any other factors

which the Board deems relevant. When, in the opinion of the

Board, public protection requires conditional approval of an

applicant, the Enforcement Committee may negotiate a consent

order with the applicant. The consent order shall set forth the terms

and conditions proposed by the Enforcement Committee for

approving the application. All consent orders must be either

approved or disapproved by the Board.

SUBCHAPTER 39. RULES OF PROFESSIONAL

CONDUCT

Section

10:15-39-1. Application

10:15-39-2. Special definitions [REVOKED]

10:15-39-3. Independence [REVOKED]

10:15-39-4. Integrity and objectivity [REVOKED]

10:15-39-5. Disclosure of other compensation and financial

interest in transactions [REVOKED]

10:15-39-6. Competence and technical standards [REVOKED]

10:15-39-7. Responsibilities to clients [REVOKED]

10:15-39-8. Other responsibilities and practices [REVOKED]

10:15-39-8.1. Firm names

10:15-39-8.2. Written communications

10:15-39-9. Professional misconduct

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156

10:15-39-1. Application

(a) To the extent not contradicted by rule herein, a registrant

shall conform in fact and in appearance to the AICPA Code of

Professional Conduct.

(b) To protect the public interest, the Rules of Professional

Conduct are based on the premise that the public and the business

community rely on sound financial reporting and on professional

competence. This premise is inherent in the authorized use of the

titles certified public accountant and public accountant, which

imposes on persons registered with the Board certain obligations to

the public and to others. These obligations which the Rules of

Professional Conduct are intended to enforce, include: the

obligation to maintain independence and objectivity of thought and

action, to strive continuously to improve professional skills, to

observe, where applicable, accounting principles generally

accepted in the United States of America, International Financial

Reporting Standards (IFRS), governmental auditing standards,

standards as set by the Public Company Accounting Oversight

Board, and generally accepted auditing standards, to promote

sound and informative financial reporting, to hold the affairs of

clients or employers in confidence, to uphold the standards of the

public accounting profession, and to maintain high standards of

personal conduct in all matters affecting fitness to practice public

accounting.

(c) Acceptance by a registrant of a certificate or license

involves a duty to abide by the Rules of Professional Conduct.

(d) The Rules of Professional Conduct are intended to have

application to all kinds of professional services performed in the

practice of accounting, including, but not limited to, assurance,

attest, auditing, accounting, review and compilation services, tax

services, management advisory services and personal financial and

investment planning, and intended to apply as well to all certificate

and license holders, whether or not engaged in the practice of

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public accounting, except where the wording of one of the Rules of

Professional Conduct clearly indicates that the applicability is

more limited.

(e) A registrant who is engaged in the practice of public

accounting outside the United States is not subject to discipline by

the Board for departing, with respect to such foreign practice, from

any of the Rules of Professional Conduct, so long as the conduct is

in accordance with the Rules of Professional Conduct applicable to

the practice of public accounting in the country in which the

registrant is practicing. If the name of a registrant is associated

with financial statements in such manner as to imply that the

registrant is acting as an independent CPA or PA under

circumstances which would entitle the reader to assume that

United States practices are followed, the registrant will be expected

to comply with auditing standards and accounting principles

generally accepted in the United States of America, and other

professional standards applicable to the services provided.

(f) In interpreting and enforcing these rules, the Board may

give consideration, but not necessarily dispositive weight, to

relevant interpretations, rulings and opinions issued by the boards

of other jurisdictions, appropriately authorized ethics committees

of professional organizations and other federal and state agencies.

10:15-39-2. Special definitions [REVOKED]

10:15-39-3. Independence [REVOKED]

10:15-39-4. Integrity and objectivity [REVOKED]

10:15-39-5. Disclosure of other compensation and financial

interest in transactions [REVOKED]

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158

10:15-39-6. Competence and technical standards

[REVOKED]

10:15-39-7. Responsibilities to clients [REVOKED]

10:15-39-8. Other responsibilities and practices

[REVOKED]

10:15-39-8.1. Firm names

(a) A firm name may not contain words, abbreviations or other

language that is misleading to the public or that may cause

confusion to the public as to the legal form or ownership of the

firm.

(b) A firm licensed by the Board may not conduct business,

perform or offer to perform services for or provide products to a

client under a name other than the name in which the firm is

licensed.

(c) A word, abbreviation or other language is presumed to be

misleading if it:

(1) is a trade name or assumed name that does not

comply with paragraph (d)(1) or (2) of this subsection;

(2) states or implies the quality of services offered,

special expertise, expectation as to outcomes or favorable

results, or geographic area of service;

(3) includes the name of a non-owner of the firm;

(4) includes the name of a non-CPA;

(5) states or implies educational or professional

attainment not supported in fact;

(6) states or implies licensing recognition for the firm or

any of its owners not supported in fact; or

(7) includes a designation such as "and company,"

"company," "associates," "and associates," "group," or

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159

abbreviations thereof or similar designations implying that

the firm has more than one employed registrant unless there

are at least two employed registrants involved in the

practice. Independent contractors are not considered

employees under this subsection.

(d) A word, abbreviation or other language is presumed not

misleading if it:

(1) is the name, surname, or initials of one or more

current or former CPA owners of the firm, its predecessor

firm or successor firm;

(2) is the name, surname, or initials of one or more

current or former international practitioner owners of the

firm, its predecessor firm or successor firm who are or

would have been eligible to practice public accountancy in

this state;

(3) indicates the legal organization of the firm; or

(4) states or implies a limitation on the type of service

offered by the firm, such as "tax," "audit" or "investment

advisory services," provided the firm in fact principally

limits its practice to the type of service indicated in the

name.

(e) A registrant who is a sole proprietor, and not incorporated,

who is engaged in the practice of public accounting must comply

with 1 and 2 of this subsection:

(1) The registrant shall be allowed to use and employ the

designation "d/b/a" with a business name provided the sole

proprietor's name is included in the name of the business.

No registrant shall use a misleading business name; and

(2) A partner surviving the death of all other partners

may continue to practice under the partnership name for up

to two years after becoming a sole proprietor.

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160

(f) The name of any current or former owner may not be used

in a firm name during any period when such owner is prohibited

from practicing public accountancy and prohibited from using the

title "certified public accountant," "public accountant" or any

abbreviation thereof.

(g) This section regarding firm names does not affect firms

licensed by the Board prior to the effective date of this section, but

does apply to any change in legal organization or name that occurs

after the effective date of this section.

(h) A firm licensed by the Board after the effective date of this

section, whose name includes a designation implying that the firm

has more than one employed registrant, as provided in Subsection

(c)(7) above, may continue to practice under that name for up to

two years from the date the firm no longer has more than one

employed registrant.

10:15-39-8.2. Written communications

A certificate or license holder, firm, candidate, or applicant

shall provide copies of any requested documents and shall

substantively respond in writing to any communications from the

Board requesting a response within thirty (30) days of the mailing

of such request or communication by registered or certified mail,

to the last address of the registrant known to the Board.

10:15-39-9. Professional misconduct

It is professional misconduct for a CPA, PA or a firm to:

(1) violate or attempt to violate the Oklahoma

Accountancy Act or the rules implementing that Act,

knowingly assist or induce another to do so, or do so

through the act of another; or

(2) commit a criminal act that reflects adversely on the

CPA’s or PA’s integrity, trustworthiness or fitness to

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161

practice as a CPA or PA; or

(3) commit any act that reflects adversely on the CPA’s

or PA’s fitness to practice public accounting.

(4) engage in conduct involving dishonesty, fraud,

deceit, misrepresentation or omission of a known material

fact; or

(5) engage in a pattern of repeated offenses, even ones

of minor significance including an indifference to the

Oklahoma Accountancy Act or the rules implementing that

Act; or

(6) state or imply an ability to influence improperly a

government agency or official; or

(7) receive a censure, suspension, cancellation,

revocation, by a state or federal agency concerning the right

of the registrant to practice before a state or federal agency,

whether by a hearing, consent agreement, court order, or

other administrative proceedings.

SUBCHAPTER 41. CHILD SUPPORT STATUTE

Section

10:15-41-1. Enforcement

The Board shall comply with the district courts of this state

in implementing the provisions of Title 43, Section 139.1, of the

Oklahoma Statutes.

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162

SUBCHAPTER 43. ATTEST ENGAGEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT

AUDITING STANDARDS

Section

10:15-43-1. Registration

10:15-43-2. Evaluation of registrations

[REVOKED]

10:15-43-3. Notification

10:15-43-4. Denial of registration

10:15-43-5. Board review of denied registrations

10:15-43-6. Renewal requirements

10:15-43-1.

Registration

Pursuant to Title 74 Oklahoma Statutes Section 212A(B),

all registrants, prior to entering into contracts to perform an attest

engagement of a governmental entity, must register, in a format

prescribed by the Board which attests to the registrant’s

compliance with Government Auditing Standards.

10:15-43-3.

Notification

Each registrant will be notified of the approval or denial of

such registration.

10:15-43-4.

Denial of registration

(a) Any registrant whose registration has been denied shall be

notified in writing. The written notice shall include the reason(s)

for the denial.

(b) If a registration is denied, the registrant may file a written

request with the Board for a review of the denial. The registrant

shall have the burden of demonstrating to the Board that the

qualifications to perform attest engagements in accordance with

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163

Government Auditing Standards have been met. Any evidence

submitted by the registrant shall be in documentary form.

10:15-43-5.

Board review of denied registrations

(a) The Board shall consider all requests for review of denied

registrations.

(b) The issues considered for review shall include, but not be

limited to, the eligibility requirements and standards upon which

the denial of the registration was based.

(c) The registrant who has requested the review shall be

notified in writing of the Board's decision. If the denial is

sustained by the Board, the written notice shall include the

reason(s) for sustaining the denial.

(d) If the denial of the registration is sustained, and the

registrant is not satisfied with the decision of the Board, the

registrant may request in writing a public hearing before the Board.

Such request shall be granted only if the registrant can provide

additional information to the Board which was not previously

available to the Board at the time of the initial evaluation or

review. Any additional evidence shall be in documentary form. If

any additional evidence is to be presented by oral testimony, a

written synopsis of that oral evidence shall accompany the request

for a public hearing.

(e) If the Board grants a public hearing to the registrant, the

hearing may be held in conjunction with the next regular meeting

of the Board or at a special meeting of the Board.

10:15-43-6.

Renewal requirements

All registrants who have registered under the provisions of

this subchapter shall renew their registration, in a format

prescribed by the Board, on or before December 31 of each year.

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164

10:15-43-7.

Disqualification

At any time the firm’s registration or permit to

practicepublic accounting in Oklahoma is revoked,

cancelled, dissolved or suspended, the firm’s registration

under this subchapter shall be disqualified and the firm’s

name shall be automatically removed from the list of

Registrants Performing Governmental Attest Engagements

in Accordance with Government Auditing Standards.

10:15-43-8. Reinstatement

After disqualification, reinstatement shall only be granted

upon the filing of the application in a format prescribed by the

Board and proof of the firm’s qualification.