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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
ENGROSSED SENATE
BILL NO. 1760 By: Dugger of the Senate
and
Kendrix of the House
An Act relating to the Oklahoma Accountancy Act;
amending 59 O.S. 2021, Section 15.1A, which relates
to definitions; removing references; amending 59 O.S.
2021, Section 15.2, which relates to the Oklahoma
Accountancy Board; removing licensed public
accountant from board; reconfiguring membership of
board; amending 59 O.S. 2021, Section 15.8 , which
relates to qualifications; removing qualifications
for candidacy for licensed public accountant;
amending 59 O.S. 2021, Section 15.9, which r elates to
issuances of certificates and licenses; removing
conditions for issuan ces of licenses for public
accountants; amending 59 O.S. 2021, Section 15.10,
which relates to examinations; removing examination
for licensed public accountants; amending 59 O.S.
2021, Section 15.13, which relates to reciprocity;
removing issuances of lic ense to public accountants;
amending 59 O.S. 2021, Section 15.13A, which relates
to foreign reciprocity; updating statutory language;
updating statutory reference; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 59 O.S. 2021, Section 15.1A, is
amended to read as follows:
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Section 15.1A. As used in the Oklahoma Accountancy Act:
1. “Accountancy” means the profession or practice of
accounting;
2. “AICPA” means the American Institute of Ce rtified Public
Accountants;
3. “Applicant” means an individual or entity that has made
application to the Board for a certificate , license, or permit and
said application has not been approved;
4. “Assurance” means independent professional services that
improve the quality of inform ation, 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 pe rformed in
accordance with the Stateme nts on Standards for
Accounting and Review Services (SSARS),
c. any engagement performed in accordance with the
Statements on Standards for Attes tation Engagements
(SSAE), and
d. any engagement to be performed in accor dance with the
Auditing Standards of t he Public Company Accounting
Oversight Board (PCAOB).
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The statements on standards specified in this definition shall
be adopted by reference by t he 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;
6. “Audit” can only be performed by an individual or entity who
is registered with the Board and holding a valid permit issue d
pursuant to the Oklahoma Ac countancy Act, or an individual grante d
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 o f determining
conformity with established criteria and communicating the results
to interested parties;
7. “Board” means the Oklahoma Accountanc y Board;
8. “Candidate” means an individual who has been qualified and
approved by the Board to take an the examination for a certificate
or license;
9. “Certificate” means the Oklahoma document issued by the
Board to a candidate upon successful completi on of the certified
public accountant examin ation designating the holder as a certified
public accountant pursu ant to the laws of Oklahoma. “Certificate”
shall also mean the Oklahoma document issued by reciprocity to an
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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 prac tice privileges under Section
15.12A of this title, or a firm exempt from the permit and
registration requireme nts under Section 15.15C of this title to
perform professional services;
12. “Compilation” when used with reference to financial
statements, means presenting information in the form of fin ancial
statements which is th e representation of management or owne rs
without undertaking to express any assurance on the statements;
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 th e Board;
16. “Entity” means an organization whether for profit or not,
recognized by the State of Oklahoma this state to conduct business;
17. “Examination” means the test sections of Auditing and
Attestation, Business En vironment and Concepts, Financial Accounting
and Reporting, and Regulation or thei r successors, administered,
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supervised, and graded by, or at the direction of, the Board or
other jurisdiction that is required for a certificate as a certified
public accountant or a license as a public acc ountant;
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 i n financial position for a period of time, in
conformity with generally accepted accounting principles or another
comprehensive basis of accounting. The term does not includ e
incidental financial data inclu ded in management advisory se rvice
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, pro fessional limited liability compa ny,
professional limited liab ility partnership, l imited liability
partnership or professional corporation, or any other professional
form of organization organized under the laws of the State of
Oklahoma this state or the laws of another jurisdiction and issued a
permit in accordance with Section 15.15A of this tit le or exempt
from the permit requirement under Section 15.15C of this title ,
including individual partners or shareholders, that is engaged in
accountancy;
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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 o r 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 Acco untants;
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 Oklahoma this state. “License” shall also mean the
Oklahoma document issued by the Board by reciproci ty 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 des ignation, hereinafter collectively
referred to as “MAS”, means the function of providing advice and/or
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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 the client improve th e use of its
capabilities and resources to achi eve its objectives including but
not limited to:
a. counseling management in analysis, planning,
organizing, operating, r isk management and controlling
functions,
b. conducting special studies, preparing recom mendations,
proposing plans and programs, and p roviding advice and
technical assistance in their implementation,
c. reviewing and suggesting improvement of policies,
procedures, systems, methods, and organization
relationships, and
d. 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 wh ile 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;
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30. “Partnership” means a contractual relationship based upon a
written, oral, or implied agreement between two or more individuals
who combine their resources an d 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 defi ne 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 est ablished by the Board. The term “peer review”
also encompasses the term “quality review”;
33. “Permit” means the written authority gr anted annually by
the Board to individuals or firms to practice public accounting in
Oklahoma this state, which is issued pursuant to the Okla homa
Accountancy Act;
34. a. “Practice of public accounting ”, also known as
“practice public accounting”, “practice” and “practice
accounting”, refers to the activities of a registrant,
an individual granted practice privileges under
Section 15.12A of this title, or a firm exempt from
the permit and registration requireme nts under Section
15.15C of this title in reference to acc ountancy. An
individual or firm shall be deemed to be engaged in
the practice of public accounting if the ind ividual or
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firm holds itself out to the public in any manner as
one skilled in the knowl edge, science, and practice of
accounting and auditing, ta xation and management
advisory services and is qualified to render such
professional services as a certified p ublic accountant
or public accountant, and perform s the following:
(1) maintains an office for the transaction of
business as a certified public a ccountant or
public accountant,
(2) offers to prospective clients to perform or who
does perform on behalf of clients professional
services that involve or requ ire an audit,
verification, investigat ion, certification,
presentation, or review of financial t ransactions
and accounting records or an attestation
concerning any other written assertion,
(3) prepares or certifies for clients reports on
audits or investigations of books or records of
account, balance sheets, and other financial,
accounting and relat ed schedules, exhibits,
statements, or reports which are to be used for
publication or for the purpose of obta ining
credit, or for filing with a court of law or with
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any governmental agency, or for any other
purpose,
(4) generally or incidentally to the wo rk described
herein, renders professional services to clients
in any or all matters relating to accounting
procedure and to the rec ording, 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 studi es for clients on tax
matters and prepares reports for cli ents 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 in vestment plans
or provides to clients products or services of
others in implementation of personal financial or
investment plans, or
(8) provides management advisory se rvices to clients.
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b. Except for an individual gra nted 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, an individual or firm
not holding a certificate , license or permit s hall not
be deemed to be enga ged 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 enga ges only in the follo wing
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 indi vidual
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 u se the
following disclaimer l anguage in connection with
financial statements and be in compliance with
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the Oklahoma Accountan cy 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 ass urance
on them.”,
(2) prepares or signs as the tax preparer, tax
returns for clients, consults w ith clients on tax
matters, conducts studies for clients on tax
matters and prepares reports for clients on ta x
matters,
(3) prepares personal financial or inve stment plans
or provides to clients pr oducts 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 grante d 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 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). Thi s restriction shall not prohibit
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any act of a public official or public employee in the
performance of that pe rson’s duties. This restriction
shall not be construed to prohibit the performance by
any unlicensed individual 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 meani ng of this section so lely
by displaying an Oklahom a CPA certificate or a PA
license in an office, 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, pub lic signs,
advertisements, publication s directed to clients or
potential clients, financial or t ax documents of a
client, performance of any attest service or issuance
of a report constitutes the practice o f public
accounting and requires a permit, practic e privileges
under Section 15.12A of t his title, or an exemption
from the permit and registratio n requirements under
Section 15.15C of this title;
35. “Preissuance review” means a review preformed pursuant to a
set of procedures that include review of eng agement document,
report, and clients’ financial statements in order to permit the
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reviewer to assess compliance with all applicable professional
standards;
36. “Principal place of business ” means the office location
designated by the licensee for the pur poses 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 knowledg e or skills associated with C PAs or PAs;
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 pr ofession 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 accoun tants or combination of both
currently registered with the Board pursuant to the authori ty 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 a ssurance as to the reliabilit y of
the attested information or compl ied financial statements, and that
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also includes or is acc ompanied by any statement or implication that
the person or firm issuing it has special knowledge or competenc e 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 r eport 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 statem ents referred to and/ or
special competence on the part of the person or firm issuing suc h
language; and it includes any other form of language tha t is
conventionally understood to imply such assurance and/or such
special knowledge or competence. This defi nition is not intende d to
include a report prepare d by a person not holding a certificat e or
license or not granted practice privileges under Sect ion 15.12A of
this title. However, such report shall not refer to “audit”,
“audited”, “exam”, “examined”, “review” or “reviewed”, nor use the
language “in accordance with standards established by t he American
Institute of Certified Public Accountants ” or successor of said
entity, or governmental agency approved by the Board, except for the
Internal Revenue Servic e. Except for an ind ividual granted practice
privileges under Section 15.12A of this ti tle or a firm exempt from
the permit and registration requ irements under Section 15.15C of
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this title, nonregistrants may use the following disclaimer language
in connection with financial statements not to be in viola tion of
the Oklahoma Accountancy Act: “I (we) have not audited, examined,
or reviewed the accom panying 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 limit ed 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 statem ents,
means a registrant or 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
performing inquiry and analytical procedures that pr ovide the
registrant with a reasonable basis for expressin g limited assurance
that there are no material modifications that should be made to the
statements in order fo r them to be in confo rmity with generally
accepted accounting principles or, if applicab le, 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, examinati on and experience requirement s
contained in the statutes and admini strative rules of
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another jurisdiction are comparable to, or exceed, the
education, examination and experience requirements
contained in the AICPA/NASBA Uniform Account ancy Act,
or
b. that an individual certified publi c accountant’s or
public accountant’s education, examination and
experience qualifications are c omparable to or exceed
the education, examination and experience requirements
contained in the Oklahoma Accoun tancy Act and rules o f
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 examin ation requirements we re attained.
SECTION 2. AMENDATORY 59 O.S. 2021, Section 15.2, is
amended to read as follows:
Section 15.2. A. There is hereby re -created, to continue until
July 1, 2023, 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, wh o shall
have professional or practical experience in the use of accounting
services and financial matters, so as to be qualified to make
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judgments about the qualifications and conduct of persons and firms
subject to regulation under the Oklahoma Accountanc y Act to be
appointed by the Governor and confirme d by the Senate. The numbe r
of registrant members shall not be more than six five, not including
a firm, who shall serve terms of five (5) years. No member who has
served two successive complete terms sha ll be eligible for
reappointment, but an appointme nt to fill an unexpired ter m shall
not be considered a complete term for this purpose. The 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. One member shall be either a pub lic accountant licensed and
holding a permit pursuant to the provisions o f the Oklahoma
Accountancy Act, or a person with professional or practical
experience in the use of accoun ting services and fin ancial matters
and who shall have met the educational re quirements to qualify as a
candidate for examination for the license of p ublic accountant as
provided in subsection B of Section 15.8 of this title. A list of
qualified persons shall be compiled and submitted to the Governor by
the Oklahoma Society of Pub lic Accountants, or successor
organization from time to time as appointme nt of the Board member is
required to be made. A list of three names shall be submitted for
each single appointment from which the Governor may make the
appointment.
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C. Five members shall be certified public accountants holding
certificates and four shal l 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 ac counting 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 Soci ety of Certified
Public Accountants from time to time as appointments of the
certified public accoun tant Board members are required. A list of
three names shall be submitted for each single appointment fro m
which the Governor may make the appointment.
D. One member C. Two members shall be a public member members
who is are not a certified public accountant or licensed public
accountant accountants. The One public member shall be appointed by
the Governor to a term coterminou s with the Governor. The public
member shall serve at t he pleasure of 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 us e
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 Account ants, Oklahoma Society of
Certified Public Accountants, or successor or ganizations from time
to time as appointment of the Board member is required. A list of
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three (3) names shall be submitted for each single appointment from
which the Governor may ma ke the appointment.
E. D. Upon the expiration of the term of office, a member shall
continue to serve until a qualified successor has been app ointed.
Confirmation by the Senate is required during the next regular
session of the Oklahoma Senate for the member to continue to serve.
SECTION 3. AMENDATORY 59 O.S. 2021, Sect ion 15.8, is
amended to read as follows:
Section 15.8. A. A qualification applicant to qualify as a
candidate for examination shall file an application for
qualification in a format ap proved by the Oklahoma Accountancy
Board. The fee for the qualificati on application shall be
determined by the Boar d and shall not exceed Three Hundred Dolla rs
($300.00). Every qualification applicant to qualify as a candidate
for the certificate of cert ified public accountant or license of
public accountant shall submit to a national criminal history record
search, must be a resident of this state immediatel y 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 th e national criminal histo ry
records search shall be paid by the app licant.
B. On or after July 1, 1999, every qualification applicant to
qualify as a candidate for examination for the license of public
accountant shall have graduated from an accredited fo ur-year college
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or university with a major in accounting or with a nonaccounting
major supplemented by what the Oklahoma Accountancy Board determines
to be the equivalent of an accounting major of any four -year college
or university in this state or any ot her four-year college or
university recognized by the Board. Such major in accounting or
nonaccounting major shall include satisfactory completion of forty -
eight (48) semester hours, or the equivalent thereof, in accounting
and related subjects. At least thirty (30) semester hou rs, or the
equivalent thereof, of said for ty-eight (48) semester hours, shall
be in accounting courses, at least one of which shall be in
auditing. The remainder of said forty -eight (48) semester hours, or
the equivalent thereof, shall be in said related subjects, which
shall be in any or all of the subjects of economics, statistics,
business law, finance, business management, marketing, busi ness
communication, financial information system s or computer science or
the equivalent of such subjects as determin ed by the Board.
C. On or after July 1, 2 003, every qualification applicant to
qualify as a candidate for examination for the certificate o f
certified public accountant shall have at leas t one hundred fifty
(150) semester hours, o r the equivalent thereof, of college
education including a baccalau reate or higher degree conferred by a
college or university acceptable to the Board from an accred ited
four-year college or university in this sta te or any other
accredited four-year college or university recognize d by the Board.
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A minimum of seventy -six (76) semester hours must be earned at the
upper-division level of college or above or the equivale nt thereof
as determined by the Board; this educ ation requirement shal l have
been completed prior to submitting an a pplication to the Board; the
total educational program of the applicant for examination shall
include an accounting concentration or its equ ivalent as determined
acceptable by the Board wh ich shall include not less than thirty
(30) semester hours, or the e quivalent thereof, in accounting
courses above principles of accounting or introductory accounting,
with at least one course in auditing or assurance; the remaining
accounting courses shal l be selected from fin ancial accounting,
accounting theory, cost/man agerial accounting, federal income tax,
governmental, not-for-profit accounting, accounting information
systems, accounting history and othe r accounting electives; at least
nine (9) semester hours shall be from any or all of the su bjects of
economics, statistics, business law, finance, business ma nagement,
marketing, business communication, risk management, insurance,
management information sy stems, or computer science at the upper -
division level of college or a bove or the equivalen t of such
subjects as determined by the Board; all the remaining se mester
hours, if any, shall be elective but shall be at the upper -division
level of college or abo ve.
D. C. The costs associated with the national c riminal history
record check shall be pa id by the applicant.
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SECTION 4. AMENDATORY 59 O.S. 2021, Section 15.9, is
amended to read as follows:
Section 15.9. A. Upon payment of appropriate fees, the
Oklahoma Accountancy B oard shall grant a certifica te or license 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 i ndividual who does no t have a
history of dishonest acts as demonstrated by documented ev idence and
has not been convicted, pled guilty, or pled nolo contendere to a
felony charge. The Board may refuse to grant a certificate or
license to an applicant for failure to satisfy th e requirement of
good character. The Board shall provide to the de nied applicant
written notification specifying grounds for denial of a certificate
or license including failure to meet the good character c riterion.
Appeal of the action of the Board may be made in accordance with th e
provisions of the Administrative Pro cedures Act.
B. The Board shall issue certificates as certified public
accountants to those applicants who have met the qualifications
required by the provisions of th e Oklahoma Accountanc y Act and the
applicable rules of the Board, and have passed an exa mination in
accounting, auditing and related subjects as the Board determines
appropriate with such grades that satisfy the Board that each
applicant is competent to pr actice as a certified public accountant.
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C. The Board shall, upon request, issue licens es as public
accountants only to those applicants who shall have qualified and
complied with the provisions of this act and the rules of the Board,
and shall have passe d an examination in a ccounting, auditing, and
other related subjects not to exceed seven ty-five percent (75%) of
the CPA Examination subjects with such grades that satisfy the Board
that each applicant is competent to practice a s a public accountant.
The subjects examined sha ll be covered by the same exa mination, and
grading thereon for pass ing, as those used by the Board to test
candidates for the certified public accountant ’s certificate.
D. The Board may make use of all or a ny part of the Uniform
Certified Public Accountan t’s Examination and any organ ization that
assists in providing the examination.
E. D. An applicant for initial issuance of a certificate or
license under this section shall show that the applicant has had o ne
(1) year of experience. Experience shall be d efined by the Board by
rule and shall include providing a type of s ervice or advice
involving the use of accounting, attest, compilation, management
advisory, financial advisory, tax or consulting skills, an d be
satisfied through work experience in governm ent, industry, academia
or public practice, all of which shall be v erified by a certificate
or license holder or an individual approved by the Board. Upon
completion of the requirements of Section 15.8 of t his title, a
qualified applicant for the examinat ion may take the certified
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public accountant or public accountant e xamination prior to earning
the experience required in this subsection, but shall not be issued
a certificate until the experience requireme nt has been met.
F. On or after July 1, 2005, ev ery E. Every applicant for the
certificate of certified public accountant or license of public
accountant shall provide evidence of successful completion of an
ethics examination prescribed by the Board.
G. F. Every applicant for the certificate of certi fied public
accountant or license of public account ant 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. G. An individual applying for a certi ficate as a certified
public accountant must make appl ication 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 indivi dual applies for certification. The
Board shall establish rules whereby time limits set for application
pursuant to this provision may, upon written app lication to the
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Board, be waived or reduced if th e candidate is called to acti ve
military service or be comes 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.
I. An individual applying for a license as a public accountant
must make application for the li cense within five (5) yea rs of the
date the Board notifies the candidate that the candidate has
successfully passed all sections of the PA Examination. If the
candidate fails to make application for the li cense within five (5)
years, the candidate must pr ovide documentation showi ng 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 individ ual applies
for licensure. 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 candidat e is
called to active milita ry service or becomes 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 5. AMENDATORY 59 O.S. 2021, Section 15.10, is
amended to read as follow s:
Section 15.10. A. The Board shall provide an examination for
candidates to obtain a certificate or license as accountants a
certified public accountant at least once each year. Additional
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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 sh all take such action as necessary
to assure the confidentiality of the exa mination prior to their
being administered to candidates.
SECTION 6. AMENDATORY 59 O.S. 2021, Section 15.13, is
amended to read as follows:
Section 15.13. A. The Oklahoma Account ancy Board may issue a
certificate or license to an applicant who has been authorized to
practice public accounting as a certified public accountant or
public accountant pursuant to the laws of any jurisdiction if the
applicant passed a test administered f or the purpose of aut horizing
an individual to pra ctice as a certified public accountant or 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 examinat ion, and said the applicant:
1. Meets the require ments for issuance of a certificate or
license in this state on the date of making application;
2. Met, on the date the certificate or license was issued by
the other jurisdiction, the requirements in effe ct on that date for
issuance of a certificate or license in this state; or
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3. Met, on the date of becoming a candidate in another
jurisdiction, the requirements of becoming a candidate in the State
of Oklahoma this state, except for residency.
B. In the event an applicant do es not meet the requirements of
subsection A of this secti on, but has passed a test administered for
the purpose of authorizing an individual to practice as a certified
public accountant or public accountant with grades which were
equivalent to passing a t est for the same purpose in this state on
the date the applicant passed the examination, the Board may iss ue a
certificate or license to an applicant if such applicant has four
(4) years of experience practicing public accounting as a certified
public accountant or 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 subse ction shall be
determined by standards established by the Board.
C. An applicant who is seeking a permit to practice under thi s
section must also provide satisfactory documentation to the Board
that such applicant has met the continuing professional educa tion
requirements, as provided in Section 15.35 of this title, in effect
on the date of the application.
D. The Board may issu e a certificate or license by reciprocity
to the extent required by treaties entered into by the government of
the United States.
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E. A fee in the amo unt 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 or license pursuant to the
provisions of this section. The total amount shall be established
by Board rule.
F. On or after July 1, 2005, an applic ant for the certificate
of certified public accountant or license of public accountant under
this section shall provide evidence of successful complet ion of an
ethics examination prescribed by the Board.
G. As an alternative to the requirements of subsect ion 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 pr incipal
place of business. 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 requ irements of the
AICPA/NASBA Uniform Accountancy Act.
H. An applicant for the certificate of certified public
accountant or license of a public accoun tant under this section
shall submit to a national crimina l history record check. The costs
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associated with the national criminal history record check shall be
paid by the applicant.
SECTION 7. AMENDATORY 59 O.S. 2021, Section 15 .13A, is
amended to read as follows:
Section 15.13A. 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 w hich 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 co untry
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 equiv alent
educational, examinati on and experience requirements
established by the foreign authority or by law; and
3. The applicant:
a. received the designation based on educational and
examination standards substantially equivalent to
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those in effect in this state at the time the forei gn
designation was granted,
b. completed an experience requirement substantially
equivalent to the requi rement set out under this act
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 meets 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 Bo ard, and
d. is of good character.
An applicant for the certificate of certified public accoun tant
under this section shall submit to a national criminal h istory
record check. The costs associated with the national criminal
history record check shall be pa id 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, revoc ation
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or suspension of a designation or commencement of disciplinary or
enforcement action by any juri sdiction.
SECTION 8. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
04/06/2022 - DO PASS.