Registration of firms of certified public accountants.

(a)

(1) The Board shall register firms of certified public accountants that demonstrate their qualifications in accordance with this section.

(2) The following entities must register under this section:

(A) Any firm with an office in the District performing attest services as defined in § 47-2853.41(1) or engaging in the practice of certified public accounting as defined in § 47-2853.41(7) ;

(B) Any firm with an office in the District that uses the title “CPA” or “CPA firm”; and

(C) Any firm that does not have an office in the District but performs attest services defined in § 47-2853.41(1) for a client having its home office in the District.

(3) A firm that does not have an office in the District may perform attest services as defined in § 47-2853.41(1) for a client having its home office in the District, may otherwise engage in the practice of certified public accounting, and may use the title “CPA” or “CPA firm” without registering under this section or obtaining a permit under § 47-2853.47 , if the firm:

(A) Has the qualifications described in subsection (b) of this section;

(B) Satisfies any requirements of the Board with respect to peer reviews: and

(C) Performs the services through an individual with practice privileges under § 47-2853.49 .

(4) A firm that is not subject to the requirements of paragraphs (2) and (3) of this subsection may perform other professional services in the practice of certified public accounting in the District and may use the title “CPA” or “CPA firm” without registering under this section or obtaining a permit under § 47-2853.47 , if the firm:

(A) Performs the services through an individual with practice privileges under § 47-2853.49 ; and

(B) Is lawfully able to perform the services in the state where the individual with practice privileges has his or her principal place of business.

(b) A firm registering with the Board as a firm of certified public accountants under subsection (a) of this section shall meet the following requirements:

(1) At least one member shall be a certified public accountant licensed and in good standing in the District or, in the case of a firm required to register under subsection (a)(2)(A) of this section, shall be an individual with practice privileges under § 47-2853.49 ;

(2) Each member, whose principal place of business is in the District and who performs professional services in the District shall be a certified public accountant licensed and in good standing in the District;

(3) Repealed;

(4) Notwithstanding any other provision of law and subject to the provisions of paragraph (5) of this subsection:

(A) At least a simple majority of the ownership interest and voting rights of all partners, officers, shareholders, members, or managers in the firm of certified public accountants shall be owned by individuals licensed as certified public accountants in the District or in any other state; and

(B) Partners, officers, shareholders, members, or managers whose principal place of business is in the District and who perform professional services in the District shall be licensed under this part.

(5) A firm of certified public accountants which includes owners who are not licensed under this part shall be subject to the following requirements:

(A) The firm shall designate an individual who is licensed in the District or, in the case of a firm required to register under subsection (a)(2)(A) of this section, an individual with practice privileges under § 47-2853.49 , to be responsible for the proper registration of the firm and notify the Board.

(B) All owners who are not licensed in the District or in a state shall be active individual participants in the firm of certified public accountants or affiliated entities.

(C) The firm shall comply with all other requirements that the Board may impose by rule.

(6) A licensed individual, or individual with practice privileges, who is responsible for attestation or compilation services and signs, or authorizes another person to sign, the accountant’s report on the financial statements on behalf of the firm shall meet the competency requirements set forth in the professional standards for such services.

(7) A licensed individual, or individual with practice privileges, who signs, or authorizes another person to sign, the accountants’ report on the financial statements on behalf of the firm shall meet the competency requirements set forth in the professional standards.

(c) Subject to subsection (a)(4) of this section, a firm that is a corporation organized for the practice of certified public accounting shall also comply with Chapter 5 of Title 29 , and any rules promulgated thereunder, governing the issuance, ownership, and transferability of shares and be in compliance with such regulations as may be issued for such corporations.

(e) An applicant firm for initial issuance or renewal of a permit to practice under this section shall register each office of the firm within the District with the Board and demonstrate that all attest and compilation services rendered in the District are under the charge of a person licensed under this part, or the corresponding provision of prior law or some other state.

(f) An applicant firm for initial issuance or renewal of permits under this section shall, in its application, list all states (including the District) in which the firm has applied for or has been issued permits as a CPA firm and list any past denial, revocation, or suspension of a permit by the District or any other state, and each licensee or applicant for a permit under this section shall notify the Board in writing, within 30 days after its occurrence, of any change in the identities of partners, officers, shareholders, members, or managers whose principal place of business is in the District, any change in the number or location of offices within the District, any change in the identity of the persons in charge of such offices, and any issuance, denial, revocation, or suspension of a permit by any other state.

(g) Firms that fall out of compliance with the provisions of this section due to changes in firm ownership or personnel shall take corrective action as quickly as possible. The Board may grant a reasonable period to take corrective action. Failure to bring the firm back into compliance within a reasonable period, as defined by the Board, shall result in the suspension or revocation of the firm permit.