N.D. Admin. Code 3-01-03-02

Current through Supplement No. 395, January, 2025

Section 3-01-03-02 - Firm ownership

A minority of the ownership of a firm practicing public accountancy within this state may be held by noncertified public accountants or nonlicensed public accountants, but each such owner:

1. Must be an individual;

2. Must not serve as the principal executive officer of the firm;

3. Must not exercise authority over the performance of audit, review, compilation, or other attest services; and

4. Must not aid in the unauthorized practice of public accounting, or knowingly misrepresent facts, or commit any act discreditable to the accounting profession.

When any owner of a firm practicing public accounting within this state is convicted of a felony or other crime involving fraud or dishonesty, or is disciplined by a regulatory agency, that person's ownership in the firm must be fully divested within six months thereafter, if so directed by the board.

In the event of death or incapacity of a firm's sole owner, the firm may continue to operate under the owner's name and credential, for up to one year. The board may require firm supervision.

N.D. Admin Code 3-01-03-02

Effective July 1, 2008.

Amended by Administrative Rules Supplement 368, April 2018, effective 4/1/2018.

Amended by Administrative Rules Supplement 2024-392, April 2024, effective 4/1/2024.

General Authority: NDCC 43-02.2-03

Law Implemented: NDCC 43-02.2-06