CHAPTER 1. Accountants [5000. - 5158.]
Chapter 1 repealed and added by Stats. 1945, Ch. 1353.
§§ 5000–5158 · 168 sections
ARTICLE 1. Administration §§ 5000–5025.3 · 32 sections
- § 5000 (a) There is in the Department of Consumer Affairs the California Board of Accountancy, which consists of 15 members, 7 of whom shall be licensees, and 8 of…
- § 5000.1 Protection of the public shall be the highest priority for the California Board of Accountancy in exercising its licensing, regulatory, and disciplinary…
- § 5000.5 No public member shall be a current or former licensee of the board or an immediate family member of a licensee, or be currently or formerly employed by a…
- § 5001 (a) Except as provided in subdivision (b), each member of the board, except the public members, shall be actively engaged in the practice of public accountancy…
- § 5002 Each member shall be appointed for a term of four years and shall hold office until the appointment and qualification of his successor or until one year shall…
- § 5003 The officers of the board are a president, vice president and a secretary-treasurer.
- § 5004 The president, vice president, and secretary-treasurer shall be elected by the board for a term of one year from among its members at the time of the annual…
- § 5006 The officers of the board shall continue in office until their successors are elected and qualify.
- § 5007 The president shall preside at all meetings of the board, and in the event of the president’s absence or inability to act, the vice president shall preside. If…
- § 5008 The board shall, from time to time, but not less than twice each year, prepare and distribute to all licensees, a report of the activities of the board,…
- § 5009 The board shall compile and maintain, or may have compiled and maintained on its behalf, a register of licensees that contains information that the board…
- § 5009.5 In the interest of protecting the privacy of applicants and licensees, an email address provided by applicants or licensees to the board pursuant to this…
- § 5010 The board may adopt, repeal, or amend such regulations as may be reasonably necessary and expedient for the orderly conduct of its affairs and for the…
- § 5011 The board shall designate the location of its principal office and may establish branch offices in other locations.
- § 5012 The board shall have a seal.
- § 5013 The board shall keep records of all proceedings and actions by and before the board and before its committees. In any proceeding in court, civil or criminal,…
- § 5015 The board may employ clerks, examiners and, except as provided by Section 159.5, other assistants in the performance of its duties, and pay salaries and…
- § 5015.6 The board may appoint a person exempt from civil service who shall be designated as an executive officer and who shall exercise the powers and perform the…
- § 5016 A majority of the board shall constitute a quorum for the transaction of any business at any meeting of the board. Notice of each meeting of the board shall be…
- § 5017 All meetings of the board shall be open and public, except that the board may hold executive sessions to deliberate on the decision to be reached upon the…
- § 5017.1 The board shall post, within 10 days of board approval, the finalized minutes from meetings of the board that are open and public pursuant to Section 5017 on…
- § 5017.5 (a) The board shall provide a live audio or video broadcast, on its internet website, of each of its board meetings that are open and public. (b) (1) If…
- § 5018 The board may by regulation, prescribe, amend, or repeal rules of professional conduct appropriate to the establishment and maintenance of a high standard of…
- § 5019 Every applicant, when subscribing to an application for certificate or registration, shall acknowledge the fact that the applicant has read and understands the…
- § 5020 The board may, for the purpose of obtaining technical expertise, appoint an enforcement advisory committee of not more than 13 licensees to provide advice and…
- § 5021 The members of the enforcement advisory and qualifications committees shall hold office for two years.
- § 5022 The qualifications committee shall make recommendations and forward its report to the board for action on any matter on which it is authorized to act. An…
- § 5023 The board may establish a qualifications committee of its own certified public accountant members or other certified public accountants of the state in good…
- § 5024 The board may create and appoint advisory committees, consisting solely of board members or consisting of board members and other persons who are not board…
- § 5025.1 (a) The board may contract with and employ certified public accountants and public accountants as consultants and experts to assist in the investigation and…
- § 5025.2 (a) The Legislature finds that there are occasions when the California Board of Accountancy urgently requires additional expenditure authority in order to fund…
- § 5025.3 (a) Whenever the board enters into a contract for litigation or enforcement purposes, including, but not limited to, contracts pursuant to Section 5025.1,…
ARTICLE 1.5. Continuing Education §§ 5026–5028 · 3 sections
- § 5026 The Legislature has determined it is in the public interest to require that certified public accountants and public accountants licensed under provisions of…
- § 5027 The board shall by regulation prescribe, amend, or repeal rules including, but not limited to, all of the following: (a) A definition of basic requirements for…
- § 5028 The board may, in accordance with the intent of this article, make exceptions from continuing education requirements for licensees not engaged in public…
ARTICLE 2. General Powers and Definitions §§ 5030–5040 · 16 sections
- § 5030 “Board” means the California Board of Accountancy.
- § 5031 “Committee” means any committee created under the provisions of Article 1 (commencing at Section 5000).
- § 5032 “State” when not specifically referring to this State, means any state, territory or insular possession of the United States, or the District of Columbia.
- § 5033 “Certified public accountant” means any person who has received from the board a certificate of certified public accountant and who holds a valid permit to…
- § 5033.1 For purposes of this chapter, “license” shall also include “certificate.”
- § 5034 “Public accountant” means any person who has registered with the board as a public accountant and who holds a valid permit for the practice of public…
- § 5035 “Person” includes individual, partnership, firm, association, limited liability company, or corporation, unless otherwise provided.
- § 5035.1 “Firm” means a sole proprietorship, a corporation, or a partnership.
- § 5035.2 “Client”, as used in any context in this chapter, means any person for whom public accountancy services are performed or to whom financial products, financial…
- § 5035.3 For purposes of Sections 5054 and 5096.12, “firm” includes any entity that is authorized or permitted to practice public accountancy as a firm under the laws…
- § 5035.4 “Comparable licensure requirements” means another state requires passage of the examination described in Section 5082 and has education and experience…
- § 5036 Whenever any statute requires that any reports, financial statements, and other documents for any department, division, board, commission, or agency of this…
- § 5037 (a) All statements, records, schedules, working papers and memoranda made by a licensee or a partner, shareholder, officer, director, or employee of a…
- § 5037.1 Nothing in subdivision (k) of Section 17406 of the Financial Code or subdivision (a) of Section 17406.1 of the Financial Code shall be construed to impair or…
- § 5038 If any provisions of this chapter or the application thereof to any person or circumstances is held invalid, the remainder of the chapter and the application…
- § 5040 The Legislature finds and declares that it is important to inform taxpayers that they may make voluntary contributions to certain funds or programs, as…
ARTICLE 3. Application of Chapter §§ 5050–5058.4 · 15 sections
- § 5050 (a) Except as provided in subdivision (b) of this section, in subdivision (a) of Section 5054, and in Section 5096.12, no person shall engage in the practice…
- § 5050.1 (a) Any person that engages in any act that is the practice of public accountancy in this state consents to the personal, subject matter, and disciplinary…
- § 5050.2 (a) The board may revoke, suspend, issue a fine pursuant to Article 6.5 (commencing with Section 5116), or otherwise restrict or discipline the holder of an…
- § 5051 Except as provided in Sections 5052 and 5053, a person shall be deemed to be engaged in the practice of public accountancy within the meaning and intent of…
- § 5052 Nothing in this chapter shall apply to any person who as an employee, independent contractor, or otherwise, contracts with one or more persons, organizations,…
- § 5053 Nothing contained in this chapter precludes a person who is not a certified public accountant or public accountant from serving as an employee of, or an…
- § 5054 (a) Notwithstanding any other provision of this chapter, an individual or firm holding a valid and current license, certificate, or permit to practice public…
- § 5055 Any person who has received from the board a certificate of certified public accountant, or who is authorized to practice public accountancy in this state…
- § 5056 Any person who has received from the board a certificate of public accountant may, subject to Section 5051, be styled and known as a “public accountant” and…
- § 5057 Notwithstanding any other provision of law, an individual holding a valid and current license, certificate, or permit to practice public accountancy from…
- § 5058 No person or partnership shall assume or use the title or designation “chartered accountant,” “certified accountant,” “enrolled accountant,” “registered…
- § 5058.1 A person or firm may not use any title or designation in connection with the designation “certified public accountant” or “public accountant” that is false or…
- § 5058.2 The holder of an inactive license issued by the board pursuant to Section 462, when lawfully using the title “certified public accountant,” the CPA…
- § 5058.3 The holder of a retired license issued by the board pursuant to Section 5070.1, when lawfully using the title “certified public accountant,” the CPA…
- § 5058.4 The holder of a permit in a military inactive status issued by the board pursuant to Section 5070.2, when lawfully using the title “certified public…
ARTICLE 3.5. Standards of Professional Conduct §§ 5060–5063.10 · 11 sections
- § 5060 (a) No person or firm may practice public accountancy under any name which is false or misleading. (b) No person or firm may practice public accountancy under…
- § 5061 (a) Except as expressly permitted by this section, a person engaged in the practice of public accountancy shall not: (1) pay a fee or commission to obtain a…
- § 5062 A licensee shall issue a report which conforms to professional standards upon completion of a compilation, review or audit of financial statements.
- § 5062.2 A licensee shall not accept employment with a publicly traded corporation or its affiliate within 12 months of the date of issuance of a financial statement…
- § 5062.3 For purposes of an enforcement action taken by the board, an accounting firm providing attestation services where none of the licensee owners of the firm have…
- § 5062.4 If a licensee is no longer employed with an accounting firm, the accounting firm shall make all working papers available to a licensee who signed a report on…
- § 5063 (a) A licensee shall report to the board in writing of the occurrence of any of the following events occurring on or after January 1, 1997, within 30 days of…
- § 5063.1 Within 10 days of entry of a conviction described in paragraph (1) of subdivision (a) of Section 5063 or a judgment described in subdivision (c) of Section…
- § 5063.2 Within 30 days of payment of all or any portion of any civil action settlement or arbitration award against a licensee of the board in which the amount or…
- § 5063.3 (a) No confidential information obtained by a licensee, in their professional capacity, concerning a client or a prospective client shall be disclosed by the…
- § 5063.10 (a) Any restatement of a financial statement that is included in any report filed with the United States Securities and Exchange Commission shall be exempt…
ARTICLE 4. Applications, Registrations, Permits Generally §§ 5070–5079 · 13 sections
- § 5070 (a) Permits to engage in the practice of public accountancy in this state shall be issued by the board only to holders of the certificate of certified public…
- § 5070.1 (a) The board may establish, by regulation, a system for the placement of a license into a retired status, upon application, for certified public accountants…
- § 5070.2 (a) (1) Beginning January 1, 2014, a holder of a permit may apply to have the holder’s permit placed in a military inactive status if the holder of a permit is…
- § 5070.5 (a) (1) A permit issued under this chapter to a certified public accountant or a public accountant expires at 12 midnight on the last day of the month of the…
- § 5070.6 Except as otherwise provided in this chapter, an expired permit may be renewed at any time within five years after its expiration upon the filing of an…
- § 5070.7 (a) A permit that is not renewed within five years following its expiration may not be renewed, restored, or reinstated thereafter, and the certificate of the…
- § 5070.8 A permit which has been suspended is subject to expiration, and shall be renewed as provided in this article, but such renewal does not entitle the holder of…
- § 5072 (a) No persons shall engage in the practice of accountancy as a partnership unless the partnership is registered by the board. (b) A partnership, other than a…
- § 5073 (a) Application for registration of a partnership shall be made upon a form prescribed by the board. At the time of registration, if the partnership has a…
- § 5076 (a) In order to renew its registration in an active status or convert to an active status, a firm, as defined in Section 5035.1, shall have a peer review…
- § 5076.1 (a) The board shall appoint a peer review oversight committee of certified public accountants of this state who maintain a license in good standing and who are…
- § 5078 In each office of a certified public accountant or public accountant in this state which is not under the personal management of such an accountant,…
- § 5079 (a) Notwithstanding any other provision of this chapter, any firm lawfully engaged in the practice of public accountancy in this state may have owners who are…
ARTICLE 5. Certificates, Information and Records §§ 5080–5095 · 20 sections
- § 5080 The “certified public accountant” license shall be granted by the board to any person who meets the requirements of this article, has not committed acts or…
- § 5080.1 The board may require an applicant for a certified public accountant license to appear in person to determine if the applicant’s qualifications are as…
- § 5081 An applicant for an authorization to be admitted to the examination for a certified public accountant license shall: (a) Not have committed acts or crimes…
- § 5082 An applicant for a certified public accountant license shall have successfully passed an examination in subjects the board deems appropriate, and in the form…
- § 5082.1 (a) The examination required by the board for the granting of a license as a certified public accountant may be conducted by the board or by a public or…
- § 5082.2 A candidate who fails an examination provided for in this article shall have the right to reexamination pursuant to the provisions of this article and…
- § 5082.3 An applicant for a license as a certified public accountant may be deemed by the board to have met the examination requirements of Section 5082 if the…
- § 5082.4 A Canadian Chartered Accountant in good standing may be deemed by the board to have met the examination requirements of Section 5082 if they have successfully…
- § 5082.5 The board may give credit to a candidate who has passed all or part of the examination in another state if the members of the board determine that the…
- § 5087 (a) The board may issue a certified public accountant license to any applicant who is a holder of a current, active, and unrestricted certified public…
- § 5088 Any individual who is the holder of a current, active, and unrestricted license as a certified public accountant issued under the laws of any state and who…
- § 5090 An applicant for the certified public accountant license shall comply with the education, examination, and experience requirements in this article.
- § 5093 (a) To qualify for the certified public accountant license, an applicant who is applying under this section shall meet the education, examination, and…
- § 5093.2 (a) An applicant for admission to the certified public accountant examination under Section 5082 shall meet the educational requirements by presenting… see note
- § 5093.3 (a) An applicant seeking certified public accountant licensure shall show, to the satisfaction of the board, completion of two years of qualifying experience… see note
- § 5093.5 (a) Notwithstanding subdivision (b) of Section 5093, the board may admit an applicant to the certified public accountant examination before the applicant…
- § 5094 (a) In order for education to be qualifying, it shall meet the standards described in subdivision (b) or (c) of this section. (b) At a minimum, education shall…
- § 5094.3 (a) An applicant for licensure as a certified public accountant shall, to the satisfaction of the board, provide documentation of the completion of 10 semester…
- § 5094.6 (a) The board shall, by regulation, adopt guidelines for accounting study to be included as part of the education required under Section 5093. (b) For purposes…
- § 5095 (a) To be authorized to sign reports on attest engagements, a licensee shall complete a minimum of 500 hours of experience, satisfactory to the board, in…
ARTICLE 5.1. Practice Privileges §§ 5096–5096.22 · 13 sections
- § 5096 (a) An individual whose principal place of business is not in this state and who has a current and active license, certificate, or permit to practice public…
- § 5096.1 (a) Any individual, not a licensee of this state, who is engaged in any act which is the practice of public accountancy in this state, and who does not qualify…
- § 5096.2 (a) (1) Practice privileges may be revoked for any of the following reasons: (A) If an individual no longer qualifies under, or complies with, the provisions…
- § 5096.4 (a) The right of an individual to practice in this state under a practice privilege may be administratively suspended at any time by an order issued by the…
- § 5096.5 Notwithstanding any other provision of this article, an individual may not sign any attest report pursuant to a practice privilege unless the individual meets…
- § 5096.6 In addition to the authority otherwise provided for by this code, the board may delegate to the executive officer the authority to issue any notice or order…
- § 5096.7 (a) Anywhere the term “license,” “licensee,” “permit,” or “certificate” is used in this chapter or Division 1.5 (commencing with Section 475), it shall include…
- § 5096.8 In addition to the authority otherwise provided by this code, all investigative powers of the board, including those delegated to the executive officer, shall…
- § 5096.9 (a) The board is authorized to adopt regulations to implement, interpret, or make specific the provisions of this article. (b) The board may adopt emergency…
- § 5096.12 (a) A certified public accounting firm that is authorized to practice in another state and that does not have an office in this state may engage in the…
- § 5096.20 (a) To ensure that Californians are protected from out-of-state licensees with disqualifying conditions, the board shall maintain an out-of-state licensee…
- § 5096.21 (a) (1) If the board determines, through a majority vote of the board at a regularly scheduled meeting, that allowing individuals from a particular state to…
- § 5096.22 (a) An individual whose principal place of business is in a state subject to an action of the board pursuant to Section 5096.21 shall do all of the following:…
ARTICLE 5.5. Audit Documentation §§ 5097–5098 · 2 sections
- § 5097 (a) Audit documentation shall be a licensee’s records of the procedures applied, the tests performed, the information obtained, and the pertinent conclusions…
- § 5098 The board may adopt regulations to implement, interpret, and make specific provisions relating to the following: (a) Requirements for licensees maintaining an…
ARTICLE 6. Disciplinary Proceedings §§ 5100–5115 · 19 sections
- § 5100 After notice and hearing the board may revoke, suspend, or refuse to renew any permit or certificate granted under Article 4 (commencing with Section 5070) and…
- § 5100.1 Notwithstanding any other law, in causes for discipline against a licensee under subdivisions (d), (h), or (l) of Section 5100, the board shall rely on the…
- § 5100.2 (a) In addition to the grounds for the denial of a license pursuant to Section 480, the board may deny an applicant for a license if either of the following…
- § 5100.5 (a) After notice and hearing the board may, for unprofessional conduct, permanently restrict or limit the practice of a licensee or impose a probationary term…
- § 5101 After notice and hearing the board shall revoke the registration and permit to practice of a partnership if at any time it does not have all the qualifications…
- § 5102 The proceedings under this article shall be conducted in accordance with Chapter 5 (commencing at Section 11500) of Part 1 of Division 3 of Title 2 of the…
- § 5103 (a) Notwithstanding any other provision of law, the board may inquire into any alleged violation of this chapter or any other state or federal law, regulation,…
- § 5103.5 (a) The board shall post on its internet website, in an easily marked and identifiable location, notice of all formal accusations. The notice of any formal…
- § 5104 Any certified public accountant or public accountant whose certificate, registration, or permit has been revoked or suspended shall, upon request of the board,…
- § 5105 Any certified public accountant or public accountant who is delinquent in the payment of his renewal fee shall upon request of the board relinquish his…
- § 5106 A plea or verdict of guilty or a conviction following a plea of nolo contendere is deemed to be a conviction within the meaning of this article. The record of…
- § 5107 (a) The executive officer of the board may request the administrative law judge, as part of the proposed decision in a disciplinary proceeding, to direct any…
- § 5108 In connection with any investigation or action authorized by this chapter, the board may issue subpoenas for the attendance of witnesses and the production of…
- § 5109 The expiration, cancellation, forfeiture, or suspension of a license, practice privilege, or other authority to practice public accountancy by operation of law…
- § 5110 (a) After notice and an opportunity for a hearing, the board may deny an application to take the licensing examination, deny admission to current and future…
- § 5111 Cheating on, or subverting or attempting to subvert any licensing examination includes, but is not limited to, engaging in, soliciting, or procuring any of the…
- § 5112 (a) The board may deny an application to take the licensing examination, deny admittance to current and future licensing examinations, and void examination…
- § 5113 An individual who has been denied admission to the licensing examination under Section 5110 may petition the board for admission to the Certified Public…
- § 5115 (a) A person whose license has been revoked or surrendered may petition the board for reinstatement or reduction of penalty after a period of not less than one…
ARTICLE 6.5. Administrative Penalties §§ 5116–5116.6 · 7 sections
- § 5116 (a) The board, after appropriate notice and an opportunity for hearing, may order any licensee or applicant for licensure or examination to pay an…
- § 5116.1 In accordance with Section 5116 and applicable regulations, except as provided in Section 5116.2, any licensee who violates any provision of this chapter may…
- § 5116.2 In accordance with Section 5116 and applicable regulations, any licensee who violates subdivision (a), (c), (i), (j) or (k) of Section 5100 may be assessed an…
- § 5116.3 In accordance with Section 5116 and applicable regulations, any person who is found to have cheated or subverted or attempted to subvert or cheat on any…
- § 5116.4 (a) The board’s executive officer may request assessment of an administrative penalty in any disciplinary or other proceeding provided in this chapter or in…
- § 5116.5 The board may obtain a judgment in any court of competent jurisdiction ordering the payment of any final administrative penalty assessed by the board pursuant…
- § 5116.6 Anywhere the term “licensee” is used in the article it shall include certified public accountants, public accountants, partnerships, corporations, holders of…
ARTICLE 7. Prohibitions and Offenses Against the Chapter Generally §§ 5120–5122 · 3 sections
- § 5120 Any person who violates Article 3 (commencing with Section 5050) is guilty of a misdemeanor, punishable by imprisonment for not more than six months, or by a…
- § 5121 The display or uttering by a person of a card, sign, advertisement or other printed, engraved or written instrument or device, bearing a person’s name in…
- § 5122 Whenever in the judgment of the board, or with its approval the enforcement advisory committee, any person has engaged, or is about to engage, in any acts or…
ARTICLE 8. Revenue §§ 5130–5134 · 5 sections
- § 5130 The board shall charge and collect a fee from each applicant for the certificate of certified public accountant. The fee shall accompany the application, which…
- § 5131 (a) The board may charge and collect an application fee and an examination fee from each applicant. The applicable fees shall accompany the application which…
- § 5132 (a) All moneys received by the board under this chapter from any source and for any purpose and from a temporary license issued under Section 115.6 shall be…
- § 5133 All money in the Accountancy Fund is hereby appropriated to the California Board of Accountancy to carry out the provisions of this chapter. Each member of the…
- § 5134 The amount of fees prescribed by this chapter is as follows: (a) The fee to be charged to each applicant for the certified public accountant examination shall…
ARTICLE 9. Accountancy Corporations §§ 5150–5158 · 9 sections
- § 5150 An accountancy corporation is a corporation which is registered with the California Board of Accountancy and has a currently effective certificate of…
- § 5151 An applicant for registration as an accountancy corporation shall supply to the board all necessary and pertinent documents and information requested by the…
- § 5152 Each accountancy corporation shall file with the board at the times the board may require a report containing information pertaining to qualification and…
- § 5152.1 Each accountancy corporation shall renew its permit to practice biennially and shall pay the renewal fee fixed by the board in accordance with Section 5134. At…
- § 5154 Except as provided in Section 5079 of this code and in Section 13403 of the Corporations Code, each director, shareholder, and officer of an accountancy…
- § 5155 The income of an accountancy corporation attributable to professional services rendered while a shareholder is a disqualified person (as defined in the…
- § 5156 An accountancy corporation shall not do or fail to do any act the doing of which or the failure to do which would constitute unprofessional conduct under any…
- § 5157 The board may formulate and enforce rules and regulations to carry out the purposes and objectives of this article, including rules and regulations requiring…
- § 5158 Each office of an accountancy corporation engaged in the practice of public accountancy in this state shall be managed by a certified public accountant or…