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| Home > Statutes > Usa Missouri |
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USA Statutes : missouri
Title : OCCUPATIONS AND PROFESSIONS
Chapter : Chapter 326 Accountants
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1. Only licensees may issue a report on financial statements of
any person, firm, organization or governmental unit or offer to render or
render any attest service. Such restriction shall not prohibit any act of
a public official or public employee in the performance of the person's
duties as such; nor prohibit the performance by any nonlicensee of other
services involving the use of accounting skills, including the
preparation of tax returns, management advisory services and the
preparation of nonattest financial statements. Nonlicensees may prepare
financial statements and issue nonattest transmittals or information
thereon which do not purport to be in compliance with the Statements on
Standards for Accounting and Review Services (SSARS).
2. Only certified public accountants shall use or assume the title
certified public accountant, or the abbreviation CPA or any other title,
designation, words, letters, abbreviation, sign, card or device tending
to indicate that such person is a certified public accountant. Nothing in
this section shall prohibit:
(1) A certified public accountant whose certificate was in full force and
effect, issued pursuant to the laws of this state prior to August 28,
2001, and who does not engage in the practice of public accounting,
auditing, bookkeeping or any similar occupation, from using the title
certified public accountant or abbreviation CPA;
(2) A person who holds a certificate, then in force and effect, issued
pursuant to the laws of this state prior to August 28, 2001, and who is
regularly employed by or is a director or officer of a corporation,
partnership, association or business trust, in his or her capacity as
such, from signing, delivering or issuing any financial, accounting or
related statement, or report thereon relating to such corporation,
partnership, association or business trust provided the capacity is so
designated, and provided in the signature line the title CPA or certified
public accountant is not designated.
3. No firm shall provide attest services or assume or use the title
certified public accountants or the abbreviation CPAs, or any other
title, designation, words, letters, abbreviation, sign, card or device
tending to indicate that such firm is a certified public accounting firm
unless:
(1) The firm holds a valid permit issued pursuant to section 326.289; and
(2) Ownership of the firm is in accord with section 326.289 and rules
promulgated by the board.
4. Only persons holding a valid license or permit issued pursuant to
section 326.280 or 326.289 shall assume or use the title certified
accountant, chartered accountant, enrolled accountant, licensed
accountant, registered accountant, accredited accountant or any other
title or designation likely to be confused with the titles certified
public accountant or public accountant, or use any of the abbreviations
CA, LA, RA, AA or similar abbreviation likely to be confused with the
abbreviation CPA or PA. The title enrolled agent or EA shall only be used
by individuals so designated by the Internal Revenue Service. Nothing in
this section shall prohibit the use or issuance of a title for nonattest
services provided that the organization and the title issued by the
organization existed prior to August 28, 2001.
5. (1) Nonlicensees shall not use language in any statement relating to
the financial affairs of a person or entity that is conventionally used
by certified public accountants in reports on financial statements.
Nonlicensees may use the following safe harbor language:
(a) For compilations:
"I (We) have prepared the accompanying (financial statements) of (name of
entity) as of (time period) for the (period) then ended. This
presentation is limited to preparing in the form of a financial statement
information that is the representation of management (owners). I (We)
have not audited or reviewed the accompanying financial statements and
accordingly do not express an opinion or any other form of assurance on
them.";
(b) For reviews:
"I (We) reviewed the accompanying (financial statements) of (name of
entity) as of (time period) for the (period) then ended. These financial
statements (information) are (is) the responsibility of the company's
management. I (We) have not audited the accompanying financial statements
and accordingly do not express an opinion or any other form of assurance
on them.".
(2) Only persons or firms holding a valid license or permit issued
pursuant to section 326.280 or 326.289 shall assume or use any title or
designation that includes the words accountant or accounting in
connection with any other language, including the language of a report,
that implies that the person or firm holds a license or permit or has
special competence as an accountant or auditor; provided, however, that
this subsection shall not prohibit any officer, partner, principal,
member, manager or employee of any firm or organization from affixing
such person's own signature to any statement in reference to the
financial affairs of the firm or organization with any wording
designating the position, title or office that the person holds therein
nor prohibit any act of a public official or employee in the performance
of the person's duties as such. Nothing in this subsection shall prohibit
the singular use of "accountant" or "accounting" for nonattest purposes.
6. Licensees signing or authorizing someone to sign reports on financial
statements when performing attest, review or compilation services shall
provide those services in accordance with professional standards as
determined by the board by rule.
7. No licensee or holder of a provisional license or firm holding a
permit pursuant to sections 326.280 to 326.289 shall use a professional
or firm name or designation that is misleading about the legal form of
the firm, or about the persons who are partners, principals, officers,
members, managers or shareholders of the firm, or about any other matter.
8. None of the foregoing provisions of this section shall apply to a
person or firm holding a certification, designation, degree or license
granted in a foreign country entitling the holder to engage in the
practice of public accounting or its equivalent in the country whose
activities in this state are limited to the provision of professional
services to persons or firms who are residents of, governments of, or
business entities of the country in which the person holds the
entitlement, who performs no attest, review or compilation services and
who issues no reports with respect to the financial statements of any
other persons, firms or governmental units in this state, and who does
not use in this state any title or designation other than the one under
which the person practices in such country, followed by a translation of
such title or designation into the English language, if it is in a
different language, and by the name of such country.
9. No licensee whose license is issued pursuant to section 326.280 or
issued pursuant to prior law shall perform attest services through any
certified public accounting firm that does not hold a valid permit issued
pursuant to section 326.289.
10. Nothing herein shall prohibit a practicing attorney or firm of
attorneys from preparing or presenting records or documents customarily
prepared by an attorney or firm of attorneys in connection with the
attorney's professional work in the practice of law.
11. Nothing herein shall prohibit any trustee, executor, administrator,
referee or commissioner from signing and certifying financial reports
incident to his or her duties in that capacity.
12. Nothing herein shall prohibit any director or officer of a
corporation, partner or a partnership, sole proprietor of a business
enterprise, member of a joint venture, member of a committee appointed by
stockholders, creditors or courts, or an employee of any of the
foregoing, in his or her capacity as such, from signing, delivering or
issuing any financial, accounting or related statement, or report
thereon, relating to the corporation, partnership, business enterprise,
joint venture or committee, provided the capacity is designated on the
statement or report.
13. (1) A licensee shall not for a commission recommend or refer to a
client any product or service, or for a commission recommend or refer any
product or service to be supplied by a client, or receive a commission,
when the licensee also performs for that client:
(a) An audit or review of a financial statement; or
(b) A compilation of a financial statement when the licensee expects, or
reasonably may expect, that a third party will use the financial
statement and the licensee's compilation report does not disclose a lack
of independence; or
(c) An examination of prospective financial information.
Such prohibition applies during the period in which the licensee is
engaged to perform any of the services listed above and the period
covered by any historical financial statements involved in such listed
services.
(2) A licensee who is not prohibited by this section from performing
services for or receiving a commission and who is paid or expects to be
paid a commission shall disclose in writing that fact to any person or
entity to whom the licensee recommends or refers a product or service to
which the commission relates.
(3) Any licensee who accepts a referral fee for recommending or referring
any service of a licensee to any person or entity or who pays a referral
fee to obtain a client shall disclose in writing the acceptance or
payment to the client.
14. (1) A licensee shall not:
(a) Perform for a contingent fee any professional services for, or
receive a fee from, a client for whom the licensee or the licensees's
firm performs:
a. An audit or review of a financial statement; or
b. A compilation of a financial statement when the licensee expects, or
reasonably might expect, that a third party will use the financial
statement and the licensee's compilation report does not disclose a lack
of independence; or
c. An examination of prospective financial information;
(b) Prepare an original tax return or claim for a tax refund for a
contingent fee for any client; or
(c) Prepare an amended tax return or claim for a tax refund for a
contingent fee for any client, unless permitted by board rule.
(2) The prohibition in subdivision (1) of this subsection applies during
the period in which the licensee is engaged to perform any of those
services and the period covered by any historical financial statements
involved in any services.
(3) A contingent fee is a fee established for the performance of any
service pursuant to an arrangement in which no fee will be charged unless
a specified finding or result is attained, or in which the amount of the
fee is otherwise dependent upon the finding or result of the service.
Solely for purposes of this section, fees are not regarded as being
contingent if fixed by courts or other public authorities, or, in tax
matters, if determined based on the results of judicial proceedings or
the findings of governmental agencies. A licensee's fees may vary
depending, for example, on the complexity of services rendered.
15. Any person who violates any provision of subsections 1 to 5 of this
section shall be guilty of a class A misdemeanor. Whenever the board has
reason to believe that any person has violated this section it may
certify the facts to the attorney general of this state or bring other
appropriate proceedings. (L. 2001 H.B. 567, A.L. 2002 H.B. 1600)
1. To assure a free flow of information for peer review pursuant
to section 326.286 or 326.289, or proceedings before the board pursuant
to section 326.310, all complaint files, investigation files, and all
other investigation reports and other investigative information in the
possession of the board or peer review committee or firm, acting pursuant
to the authority of section 326.286, 326.289 or 326.310, or its employees
or agents, which relate to the hearings or review shall be privileged and
confidential, and shall not be subject to discovery, subpoena, or other
means of legal compulsion for their release to any person, other than the
licensee and the board or peer review committee or firm or their
employees and agents involved in such proceedings or be admissible in
evidence in any judicial or administrative proceeding, other than the
proceeding for which such material was prepared or assembled. A final
written decision and finding of fact of the board, pursuant to section
326.310, shall be a public record.
2. No person shall be civilly liable as a result of his or her acts,
omissions or decisions in good faith as a member of the board, a peer
review committee or firm, or as an employee or agent thereof, in
connection with such person's duties.
3. No person shall be civilly liable as a result of filing a report or
complaint with the board or a peer review committee, or for the
disclosure to the board or a peer review committee or its agents or
employees, whether pursuant to a subpoena, of records, documents,
testimony or other forms of information which constitute privileged
matter in connection with proceedings of a peer review committee, or
other board proceedings pursuant to section 326.310. Immunity from civil
liability shall not apply if the act is done with malice. (L. 2001 H.B.
567)
1. Upon application by the board and the necessary burden having
been met, a court of general jurisdiction may grant an injunction,
restraining order or other order as may be appropriate to enjoin a person
from:
(1) Offering to engage or engaging in the performance of any acts or
practices for which a license or permit is required upon a showing that
acts or practices were performed or offered to be performed without a
license or permit; or
(2) Engaging in any practice or business authorized by a certificate,
license or permit issued pursuant to this chapter upon a showing that the
holder presents a substantial probability of serious danger to the
health, safety or welfare of any resident of this state or client of the
licensee.
2. Any action shall be commenced either in the county in which such
conduct occurred or in the county in which the defendant resides.
3. Any action brought pursuant to this section shall be in addition to
and not in lieu of any penalty provided by this chapter and may be
brought concurrently with other actions to enforce this chapter. (L. 2001
H.B. 567)
At all proceedings for the enforcement of these or any other
provisions of this chapter, the board shall, in its discretion as it
deems necessary, select the attorney general or one of his or her
designated assistants, or other legal counsel to appear and represent the
board at each stage of the proceeding or trial until its conclusion. (L.
2001 H.B. 567)
The display or uttering by a person of a card, sign,
advertisement or other printed, engraved or written instrument or device,
printed or through electronic media, bearing a person's name in
conjunction with the words "certified public accountant" or any
abbreviation thereof, or "public accountant" or any abbreviation thereof,
shall be prima facie evidence in any action brought pursuant to section
326.298 that the person whose name is so displayed caused or procured the
display or uttering of such card, sign, advertisement or other printed,
engraved or written instrument or device and that such person is holding
himself or herself out to be a certified public accountant or a public
accountant holding a license pursuant to section 326.280. In any such
action evidence of the commission of a single act prohibited by this
chapter shall be sufficient to justify an injunction or a conviction
without evidence of a general course of conduct. (L. 2001 H.B. 567)
1. The board may refuse to issue any license or permit required
pursuant to this chapter for one or any combination of causes stated in
subsection 2 of this section. The board shall notify the applicant in
writing of the reasons for the refusal and shall advise the applicant of
the applicant's right to file a complaint with the administrative hearing
commission as provided by chapter 621, RSMo.
2. The board may file a complaint with the administrative hearing
commission as provided by chapter 621, RSMo, or may initiate settlement
procedures as provided by section 621.045, RSMo, against any certified
public accountant or permit holder required by this chapter or any person
who fails to renew or surrenders the person's certificate, license or
permit for any one or any combination of the following causes:
(1) Use of any controlled substance, as defined in chapter 195, RSMo, or
alcoholic beverage to an extent that the use impairs a person's ability
to perform the work of any profession licensed or regulated by this
chapter;
(2) The person has been finally adjudicated and found guilty, or entered
a plea of guilty or nolo contendere, in a criminal prosecution under the
laws of any state or of the United States, for any offense reasonably
related to the qualifications, functions or duties of any profession
licensed or regulated pursuant to this chapter, for any offense an
essential element of which is fraud, dishonesty or an act of violence, or
for any offense involving moral turpitude, whether or not sentence is
imposed;
(3) Use of fraud, deception, misrepresentation or bribery in securing any
certificate, permit or license issued pursuant to this chapter or in
obtaining permission to take any examination given or required pursuant
to this chapter;
(4) Obtaining or attempting to obtain any fee, charge, tuition or other
compensation by fraud, deception or misrepresentation;
(5) Incompetency, misconduct, gross negligence, fraud, misrepresentation
or dishonesty in the performance of the functions or duties of any
profession licensed or regulated by this chapter;
(6) Violation of, or assisting or enabling any person to violate, any
provision of this chapter or any lawful rule or regulation adopted
pursuant to this chapter;
(7) Impersonation of any person holding a certificate or permit or
allowing any person to use his or her certificate or permit or diploma
from any school;
(8) Revocation, suspension, restriction, modification, limitation,
reprimand, warning, censure, probation or other final disciplinary action
against the holder of or applicant for a license or other right to
practice any profession regulated by this chapter by another state,
territory, federal agency or country, whether voluntarily agreed to by
the certified public accountant or applicant, including but not limited
to the denial of licensure, surrender of a license, allowing a license to
expire or lapse, or discontinuing or limiting the practice of accounting
while subject to an investigation or while actually under investigation
by any licensing authority, branch of the armed forces of the United
States of America, court, agency of the state or federal government, or
employer;
(9) A person is finally adjudged insane or incompetent by a court of
competent jurisdiction;
(10) Assisting or enabling any person to practice or offer to practice
accountancy pursuant to this chapter who is not eligible to practice
pursuant to this chapter;
(11) Issuance of a certificate or permit based upon a material mistake of
fact;
(12) Failure to display a valid certificate or permit required by this
chapter or any rule promulgated pursuant to this chapter;
(13) Violation of any professional trust or confidence;
(14) Use of any advertisement or solicitation which is false, misleading
or deceptive to the general public or persons to whom the advertisement
or solicitation is primarily directed;
(15) Violation of professional standards or rules of professional conduct
applicable to the accountancy profession as promulgated by the board;
(16) Failure to comply with any final order of a court of competent
jurisdiction enforcing a subpoena or subpoena duces tecum from the board;
(17) Failure to comply with any final order of the board;
(18) Failure to maintain documentation evidencing compliance with the
board's continuing professional education requirements;
(19) Failure, on the part of a holder of a certificate, license or permit
pursuant to section 326.280 or 326.289, to maintain compliance with the
requirements for issuance or renewal of such certificate, license, permit
or provisional license or to report changes to the board pursuant to
sections 326.280 to 326.289;
(20) Making any false or misleading statement or verification in support
of an application for a certificate, license or permit filed by another.
3. Proceedings pursuant to this section shall be conducted in accordance
with the provisions of chapter 621, RSMo. Upon a finding that the grounds
provided in subsection 2 of this section for disciplinary action are met,
the board may, singly or in combination, assess an administrative penalty
not to exceed two thousand dollars per violation, censure or place on
probation on such terms and conditions as the board deems appropriate for
a period not to exceed five years, or may suspend for a period not to
exceed three years or revoke the certificate, license or permit. In any
order of revocation, the board may provide that the person shall not
apply for a new license for a maximum of three years and one day
following the date of the order of revocation. All stay orders shall toll
this time period. In lieu of or in addition to any remedy specifically
provided in subsection 1 of this section, the board may require of a
licensee:
(1) A peer review conducted as the board may specify; or
(2) Satisfactory completion of continuing professional education programs
as the board may specify; or
(3) A peer review conducted as the board may specify and satisfactory
completion of continuing professional education programs as the board may
specify. (L. 2001 H.B. 567)
After notice and hearings as provided in chapter 621, RSMo, the
board may revoke the permit of a CPA firm if it does not have all the
qualifications prescribed by section 326.289; or may revoke, suspend or
censure the permit holder for any of the causes enumerated in section
326.310. (L. 2001 H.B. 567)
Upon application in writing and after hearing pursuant to
notice, the board may issue a new license to a licensee whose license has
been revoked, or may reissue or modify the suspension of any permit to
practice public accounting which has been revoked or suspended. (L. 2001
H.B. 567)
1. All moneys payable pursuant to the provisions of this chapter
shall be collected by the division of professional registration who shall
transmit them to the department of revenue for deposit in the state
treasury to the credit of a fund to be known as the "State Board of
Accountancy Fund" which is hereby created.
2. Notwithstanding the provisions of section 33.080, RSMo, to the
contrary, money in the fund shall not be transferred and placed to the
credit of general revenue until the amount in the fund at the end of the
biennium exceeds two times the amount of the appropriation from the
board's funds for the preceding fiscal year or, if the board requires by
rule certificate or permit renewal less frequently than yearly, then
three times the appropriation from the board's funds for the preceding
fiscal year. The amount, if any, in the fund which shall lapse is that
amount in the fund which exceeds the appropriate multiple of the
appropriations from the board's funds for the preceding fiscal year.
3. In any proceeding in which a remedy provided by subsection 1 or 2 of
section 326.310 is imposed, the board may also require the respondent
licensee to pay the costs of the proceeding if the board is a prevailing
party or in settlement. The moneys shall be placed in the state treasury
to the credit of the "Missouri State Board of Accountancy Investigation
Fund", which is hereby created, to be used solely for investigations as
provided in this chapter. The moneys shall not be considered in
calculating amounts to be transferred to general revenue as provided in
subsection 2 of this section. The fund shall be used solely for board
investigations.
4. The board shall set the amount of the fees which this chapter
authorizes and requires by rule pursuant to chapter 536, RSMo. The fees
shall be set at a level to produce revenue which shall not substantially
exceed the cost and expense of administering this chapter. (L. 2001 H.B.
567)
1. Except by permission of the client for whom a licensee
performs services or the heirs, successors or personal representatives of
such client, a licensee pursuant to this chapter shall not voluntarily
disclose information communicated to the licensee by the client relating
to and in connection with services rendered to the client by the
licensee. The information shall be privileged and confidential, provided,
however, that nothing herein shall be construed as prohibiting the
disclosure of information required to be disclosed by the standards of
the public accounting profession in reporting on the examination of
financial statements or as prohibiting disclosures in investigations, in
ethical investigations conducted by private professional organizations,
or in the course of peer reviews, or to other persons active in the
organization performing services for that client on a need-to-know basis
or to persons in the entity who need this information for the sole
purpose of assuring quality control.
2. A licensee shall not be examined by judicial process or proceedings
without the consent of the licensee's client as to any communication made
by the client to the licensee in person or through the media of books of
account and financial records, or the licensee's advice, reports or
working papers given or made thereon in the course of professional
employment, nor shall a secretary, stenographer, clerk or assistant of a
licensee, or a public accountant, be examined, without the consent of the
client concerned, regarding any fact the knowledge of which he or she has
acquired in his or her capacity as a licensee. This privilege shall exist
in all cases except when material to the defense of an action against a
licensee. (L. 2001 H.B. 567)
1. Subject to the provisions of section 326.322, all statements,
records, schedules, working papers and memoranda made by a licensee or a
partner, shareholder, officer, director, member, manager or employee of a
licensee, incident to, or in the course of, rendering services to a
client while a licensee, except the reports submitted by the licensee to
the client and except for records that are part of the client's records,
shall be and remain the property of the licensee in the absence of an
express agreement between the licensee and the client to the contrary. No
statement, record, schedule, working paper or memorandum shall be sold,
transferred or bequeathed without the consent of the client or the
client's personal representative or assignee to anyone other than one or
more surviving partners, stockholders, members or new partners, new
stockholders or new members of the licensee, or any combined or merged
firm or successor in interest to the licensee. Nothing in this section
should be construed as prohibiting any temporary transfer of workpapers
or other material necessary in the course of carrying out peer reviews or
as otherwise interfering with the disclosure of information pursuant to
section 326.322.
2. A licensee shall furnish to a client or former client, upon request
and reasonable notice:
(1) A copy of the licensee's working papers to the extent that the
working papers include records that would ordinarily constitute part of
the client's records and are not otherwise available to the client; and
(2) Any accounting or other records belonging to, or obtained from or on
behalf of, the client that the licensee removed from the client's
premises or received for the client's account. The licensee may make and
retain copies of such documents of the client when they form the basis
for work done by the licensee.
3. Nothing in this section shall require a licensee to keep any paperwork
beyond the period prescribed in any other applicable statute, nor shall
it prohibit a licensee from charging a reasonable fee for furnishing the
requested materials.
4. Notwithstanding the provisions of this chapter to the contrary,
documents otherwise subject to lawful discovery in a court proceeding
pursuant to the Missouri rules of civil procedure prior to August 28,
2001, shall remain subject to such lawful discovery. (L. 2001 H.B. 567)
Application by a person or a firm not a resident of this state
shall constitute and authorize appointment of the Missouri secretary of
state as the applicant's agent upon whom process may be served in any
action or proceeding against the applicant arising out of any transaction
or operation connected with or incidental to services performed within
this state. (L. 2001 H.B. 567)
If any provisions of sections 326.250 to 326.331 or the
application thereof to anyone or to any circumstances is held invalid,
the remainder of those sections and the application of the invalid
provision to others or other circumstances shall not be affected. (L.
2001 H.B. 567)
The provisions of sections 326.250 to 326.331 shall be known and
may be cited as the "Missouri Accountancy Act". (L. 2001 H.B. 567)
It is the policy of this state and the purpose of this chapter
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 protection of 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, and 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 persons licensed 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 certified public
accountants 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. (L. 2001 H.B. 567)
1. As used in this chapter, the following terms mean:
(1) "AICPA", the American Institute of Certified Public Accountants;
(2) "Attest", providing the following financial statement services:
(a) Any audit or other engagement to be performed in accordance with the
Statements on Auditing Standards (SAS);
(b) Any examination of prospective financial information to be performed
in accordance with the Statements on Standards for Attestation
Engagements (SSAE);
(3) "Board", the Missouri state board of accountancy established pursuant
to section 326.259 or its predecessor pursuant to prior law;
(4) "Certificate", a certificate issued pursuant to section 326.060 prior
to August 28, 2001;
(5) "Certified public accountant" or "CPA", the holder of a certificate
or license as defined in this section;
(6) "Certified public accountant firm", "CPA firm" or "firm", a sole
proprietorship, a corporation, a partnership or any other form of
organization issued a permit pursuant to section 326.289;
(7) "Client", a person or entity that agrees with a licensee or
licensee's employer to receive any professional service;
(8) "Compilation", providing a service to be performed in accordance with
Statements on Standards for Accounting and Review Services (SSARS) that
is presented in the form of financial statements information that is the
representation of management (owners) without undertaking to express any
assurance on the statements;
(9) "License", a license issued pursuant to section 326.280, or a
provisional license issued pursuant to section 326.283; or, in each case,
an individual license or permit issued pursuant to corresponding
provisions of prior law;
(10) "Licensee", the holder of a license as defined in this section;
(11) "Manager", a manager of a limited liability company;
(12) "Member", a member of a limited liability company;
(13) "NASBA", the National Association of State Boards of Accountancy;
(14) "Peer review", a study, appraisal or review of one or more aspects
of the professional work of a licensee or certified public accountant
firm that performs attest, review or compilation services, by licensees
who are not affiliated either personally or through their certified
public accountant firm being reviewed pursuant to the Standards for
Performing and Reporting on Peer Reviews promulgated by the AICPA or such
other standard adopted by regulation of the board which meets or exceeds
the AICPA standards;
(15) "Permit", a permit to practice as a certified public accountant firm
issued pursuant to section 326.289 or corresponding provisions of prior
law or pursuant to corresponding provisions of the laws of other states;
(16) "Professional", arising out of or related to the specialized
knowledge or skills associated with certified public accountants;
(17) "Public accounting":
(a) Performing or offering to perform for an enterprise, client or
potential client one or more services involving the use of accounting or
auditing skills, or one or more management advisory or consulting
services, or the preparation of tax returns or the furnishing of advice
on tax matters by a person, firm, limited liability company or
professional corporation using the title "C.P.A." or "P.A." in signs,
advertising, directory listing, business cards, letterheads or other
public representations;
(b) Signing or affixing a name, with any wording indicating the person or
entity has expert knowledge in accounting or auditing to any opinion or
certificate attesting to the reliability of any representation or
estimate in regard to any person or organization embracing financial
information or facts respecting compliance with conditions established by
law or contract, including but not limited to statutes, ordinances,
rules, grants, loans and appropriations; or
(c) Offering to the public or to prospective clients to perform, or
actually performing on behalf of clients, professional services that
involve or require an audit or examination of financial records leading
to the expression of a written attestation or opinion concerning these
records;
(18) "Report", when used with reference to financial statements, means an
opinion, report or other form of language that states or implies
assurance as to the reliability of any 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 financial statements referred to or special
competence on the part of the person or firm issuing such language, or
both, and includes any other form of language that is conventionally
understood to imply such assurance or such special knowledge or
competence, or both;
(19) "Review", providing a service to be performed in accordance with
Statements on Standards for Accounting and Review Services (SSARS) that
is performing inquiry and analytical procedures that provide the
accountant with a reasonable basis for expressing limited assurance that
there are no material modifications that should be made to the statements
for them to be in conformity with generally accepted accounting
principles or, if applicable, with another comprehensive basis of
accounting;
(20) "State", any state of the United States, the District of Columbia,
Puerto Rico, the U.S. Virgin Islands and Guam; except that "this state"
means the state of Missouri;
(21) "Substantial equivalency", a determination by the board of
accountancy or its designee that the education, examination and
experience requirements contained in the statutes and administrative
rules of another jurisdiction are comparable to or exceed the education,
examination and experience requirements contained in this chapter or that
an individual certified public accountant's education, examination and
experience qualifications are comparable to or exceed the education,
examination and experience requirements contained in this chapter;
(22) "Transmittal", any transmission of information in any form,
including but not limited to any and all documents, records, minutes,
computer files, disks or information.
2. The statements on standards specified in this section shall be adopted
by reference by the board pursuant to rulemaking and shall be those
developed for general application by the AICPA or other recognized
national accountancy organization as prescribed by board rule. (L. 2001
H.B. 567, A.L. 2002 H.B. 1600)
1. The "Missouri State Board of Accountancy" is hereby
established and shall consist of seven members, one of whom shall be a
voting public member, and shall have the functions, powers and duties
prescribed in this chapter.
2. Each member of the board, except the public member, shall be a
licensee pursuant to the laws of this state, and shall at the time of his
or her appointment be a citizen of the United States, a resident of this
state for at least one year and have practiced continuously as a licensee
for a period of at least five years immediately preceding his or her
appointment. At the time of his or her appointment, the public member
shall be a citizen of the United States, a resident of this state for a
period of one year, a registered voter, a person who is not and never was
a member of any profession licensed or regulated pursuant to this chapter
or the immediate family member of such a person, and a person who does
not have and never has had a material financial interest in either
providing professional services regulated by this chapter, or an activity
or organization directly related to any profession licensed or regulated
pursuant to this chapter.
3. Members of the Missouri state board of accountancy appointed pursuant
to section 326.160 prior to August 28, 2001, shall serve the remainder of
their terms. Thereafter, the members of the board, including public
members, shall be chosen by the governor with the advice and consent of
the senate from lists submitted by the director of the division of
professional registration. The chair of the largest membership state
organization of certified public accountants which is dedicated to
maintaining the high professional and ethical standards of accountants as
well as protection of the public may submit a list of five licensees to
the director of the division of professional registration for
consideration as a board member, other than the public member. To be
considered by the director of the division of professional registration,
the list shall be submitted at least ninety days prior to the expiration
of the term of the board member or as soon as feasible after a vacancy on
the board occurs. The duties of the public member shall not include the
determination of the technical requirements for licensure, whether any
person meets the technical requirements, or the technical competence or
technical judgment of a certified public accountant or applicant for
licensure.
4. The term of office of each board member appointed shall be five years.
Vacancies shall be filled by the governor for the remainder of the
unexpired term. No person shall serve more than two consecutive terms or
eleven years, whichever is less; except that a member may hold office
until his or her successor is appointed and qualified. Any member who has
served two complete consecutive terms shall be ineligible to be
reappointed until one year has lapsed. No member whose term has been
terminated for any reason, other than the term's expiration, shall be
eligible for reappointment until the lapse of one year. An appointment to
fill an unexpired term shall not be considered a complete term.
5. The governor may remove any member of the board for misconduct,
incompetency or neglect of official duties after giving the member
written notice of the charges and an opportunity to be heard. (L. 2001
H.B. 567)
1. The Missouri state board of accountancy shall have power by
rule to adopt and use a seal; make and amend all rules deemed necessary
for the proper administration of this chapter; conduct examinations;
administer oaths and hear testimony regarding complaints, investigations
and disciplinary actions or in pursuing settlement as provided by section
621.110, RSMo, or preparatory to the filing of a complaint pursuant to
section 621.045, RSMo; require by summons or subpoena the attendance and
testimony of witnesses, and the production of books, papers and documents
with respect to testimony regarding complaints, investigations and
disciplinary actions or in pursuing settlement; and do and perform all
other acts and things committed to its charge and administration, or
incidental thereto.
2. The board shall maintain its office in Jefferson City, Missouri. (L.
2001 H.B. 567)
1. The board shall elect annually one of its members as
president, one as vice president, one as secretary and one as treasurer,
and shall make an annual report to the governor and the general assembly.
The board shall file and preserve all written applications, petitions,
complaints, charges or requests made or presented to the board and all
affidavits and other verified documents, and shall keep accurate records
and minutes of its proceedings. A copy of any entry in the register, or
of any records or minutes of the board, certified by the president or
secretary of the board under its seal shall constitute and have the full
force and effect of the original.
2. The board may employ legal counsel and board personnel as defined in
subdivision (4) of subsection 15 of section 620.010, RSMo, and incur such
travel and other expense as in its judgment shall be necessary for the
effective administration of this chapter.
3. The board may also appoint a continuing education committee of not
less than five members consisting of certified public accountants of this
state. Such committee shall:
(1) Evaluate continuing education programs to determine if they meet
continuing education regulations adopted by the board;
(2) Consider applications for exceptions to continuing education
regulations adopted pursuant to the provisions of section 326.271; and
(3) Consider other matters regarding continuing education as may be
assigned by the board. (L. 2001 H.B. 567)
1. The board may prescribe by rule the dates and places for
holding regular meetings and regulate the call, notice and holding of
special meetings. Four members of the board shall constitute a quorum at
any regular meeting or special meeting.
2. The board shall determine by rule the dates and times of examination
of applicants. Examination of applicants shall be held at least twice
annually. The board may determine by rule the method for publicizing the
times and places of the examination. The board may require any or all
applicants to appear in person before the board to answer questions
regarding their qualifications and may, in the board's discretion,
require evidence in support of the statements of the applicant.
3. The required examination shall test the applicant's knowledge of the
subjects of accounting and auditing, and such other related subjects as
the board may specify by rule, including but not limited to business law
and taxation. The board shall prescribe by rule the methods of applying
for and conducting the examination, including methods for grading and
passing grades; provided, however, that the board shall, to the extent
possible, ensure the examination, grading of the examination and the
passing grades are uniform with those applicable in other states. The
board may make use of all or any part of the Uniform Certified Public
Accountant Examination and Advisory Grading Service of the American
Institute of Certified Public Accountants and may contract with third
parties to perform administrative services with respect to the
examination as the board deems appropriate.
4. The board may determine by rule the examination fee.
5. Each member of the board shall receive as compensation an amount set
by the board not to exceed seventy dollars for each day devoted to the
affairs of the board, and shall be reimbursed for necessary and actual
expenses incurred in the performance of the member's official duties. All
claims for compensation and expenses shall be presented and allowed in
open meetings of the board. No compensation or expenses of members of the
board, its officers or employees shall be charged against the general
funds of the state, but shall be paid out of the state board of
accountancy fund. (L. 2001 H.B. 567)
1. The board shall promulgate rules of procedure for governing
the conduct of matters before the board.
2. The board shall promulgate rules of professional conduct for
establishing and maintaining high standards of competence and integrity
in the profession of public accounting.
3. In promulgating rules and regulations regarding the requirements of
continuing education, the board:
(1) May use and rely upon guidelines and pronouncements of recognized
educational and professional associations;
(2) May prescribe for content, duration and organization of courses;
(3) Shall consider applicant accessibility to continuing education as
required by the board, and any impediments to the interstate practice of
public accounting which may result from differences in requirements in
states;
(4) May in its discretion relax or suspend continuing education
requirements for instances of individual hardship;
(5) Shall not require the completion of more than one hundred twenty
hours of continuing education or its equivalent in any three-year period,
not more than one-third of which shall be required in any one year. The
continuing education requirements must be capable of being fulfilled in
programs or courses reasonably available to licensees within the state.
4. The board may require by rule licensees to submit any continuing
education reporting as the board deems necessary.
5. Any rule or portion of a rule, as that term is defined in section
536.010, RSMo, that is created under the authority delegated in this
chapter shall become effective only if it complies with and is subject to
all of the provisions of chapter 536, RSMo, and, if applicable, section
536.028, RSMo. This chapter and chapter 536, RSMo, are nonseverable and
if any of the powers vested with the general assembly pursuant to chapter
536, RSMo, to review, to delay the effective date or to disapprove and
annul a rule are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after August 28,
2001, shall be invalid and void. (L. 2001 H.B. 567, A.L. 2002 H.B. 1600)
Upon receipt of a complaint or other information suggesting
violations of this chapter or the rules of the board, the board may
conduct investigations to determine if probable cause exists to institute
proceedings pursuant to sections 326.295 to 326.316 against any person or
firm for the violation, but an investigation pursuant to this section
shall not be a prerequisite to initiate proceedings where a determination
of probable cause can be made without investigation. (L. 2001 H.B. 567)
For an applicant to be eligible to apply for the examination,
the applicant shall fulfill the education requirements of subdivision (4)
of subsection 1 of section 326.280. (L. 2001 H.B. 567)
1. A license shall be granted by the board to any person who
meets the requirements of this chapter and who:
(1) Is a resident of this state or has a place of business in this state
or, as an employee, is regularly employed in this state;
(2) Has attained the age of twenty-one years;
(3) Is of good moral character;
(4) Either:
(a) Applied for the initial examination prior to June 30, 1999, and holds
a baccalaureate degree conferred by an accredited college or university
recognized by the board, with a concentration in accounting or the
substantial equivalent of a concentration in accounting as determined by
the board; or
(b) Applied for the initial examination on or after June 30, 1999, and
has at least one hundred fifty semester hours of college education,
including a baccalaureate or higher degree conferred by an accredited
college or university recognized by the board, with the total educational
program including an accounting concentration or equivalent as determined
by board rule to be appropriate;
(5) Has passed an examination in accounting, auditing and such other
related subjects as the board shall determine is appropriate; and
(6) Has had one year of experience. Experience shall be verified by a
licensee and shall include any type of service or advice involving the
use of accounting, attest, review, compilation, management advisory,
financial advisory, tax or consulting skills including governmental
accounting, budgeting or auditing. The board shall promulgate rules and
regulations concerning the verifying licensee's review of the applicant's
experience.
2. The board may prescribe by rule the terms and conditions for
reexaminations and fees to be paid for reexaminations.
3. A person who, on August 28, 2001, holds an individual permit issued
pursuant to the laws of this state shall not be required to obtain
additional licenses pursuant to sections 326.280 to 326.286, and the
licenses issued shall be considered licenses issued pursuant to sections
326.280 to 326.286. However, such persons shall be subject to the
provisions of section 326.286 for renewal of licenses.
4. Upon application, the board may issue a temporary license to an
applicant pursuant to this subsection for a person who has made a prima
facie showing that the applicant meets all of the requirements for a
license and possesses the experience required. The temporary license
shall be effective only until the board has had the opportunity to
investigate the applicant's qualifications for licensure pursuant to
subsection 1 of this section and notify the applicant that the
applicant's application for a license has been granted or rejected. In no
event shall a temporary license be in effect for more than twelve months
after the date of issuance nor shall a temporary license be reissued to
the same applicant. No fee shall be charged for a temporary license. The
holder of a temporary license which has not expired, been suspended or
revoked shall be deemed to be the holder of a license issued pursuant to
this section until the temporary license expires, is terminated,
suspended or revoked.
5. An applicant for an examination who meets the educational requirements
of subdivision (4) of subsection 1 of this section or who reasonably
expects to meet those requirements within sixty days after the
examination shall be eligible for examination if the applicant also meets
the requirements of subdivisions (1), (2) and (3) of subsection 1 of this
section. For an applicant admitted to examination on the reasonable
expectation that the applicant will meet the educational requirements
within sixty days, no license shall be issued nor credit for the
examination or any part thereof given unless the educational requirement
is in fact met within the sixty-day period. (L. 2001 H.B. 567, A.L. 2002
H.B. 1600)
1. (1) An individual whose principal place of business is not in
this state and has a valid designation to practice public accounting from
any state which the board has determined by rule to be in substantial
equivalence with the licensure requirements of sections 326.250 to
326.331, or if the individual's qualifications are substantially
equivalent to the licensure requirements of sections 326.250 to 326.331,
shall be presumed to have qualifications substantially equivalent to this
state's requirements and shall have all the privileges of licensees of
this state, provided the individual shall notify the board of his or her
intent to engage in the practice of accounting with a client within this
state whether in person, by electronic or technological means, or any
other manner. The board by rule may require individuals to obtain a
license.
(2) Any individual of another state exercising the privilege afforded
pursuant to this section consents as a condition of the grant of this
privilege to:
(a) The personal and subject matter jurisdiction and disciplinary
authority of the board;
(b) Comply with this chapter and the board's rules; and
(c) The appointment of the state board which issued the individual's
license as his or her agent upon whom process may be served in any action
or proceeding by this board against the individual.
(3) Nothing in this section shall prohibit temporary practice in this
state for professional business incidental to a CPA's regular practice
outside this state. "Temporary practice" means that practice which is a
continuation or extension of an engagement for a client located outside
this state, which engagement began outside this state and extends into
this state through common ownership, existence of a subsidiary, assets or
other operations located within this state.
2. A licensee of this state offering or rendering services or using his
or her certified public accountant title in another state shall be
subject to disciplinary action in this state for an act committed in
another state for which the licensee would be subject to discipline for
an act committed in the other state. Notwithstanding the provisions of
section 326.274 to the contrary, the board may investigate any complaint
made by the board of accountancy of another state. (L. 2001 H.B. 567,
A.L. 2002 H.B. 1600)
1. The board may grant or renew licenses to persons who make
application and demonstrate that their qualifications, including the
qualifications prescribed by section 326.280, are in accordance with this
section.
2. Licenses shall be initially issued and renewed for periods of not more
than three years and shall expire on the renewal date following issuance
or renewal. Applications for licenses shall be made in such form, and in
the case of applications for renewal, between such dates, as the board by
rule shall specify. Application and renewal fees shall be determined by
the board by rule.
3. With regard to applicants that do not qualify for reciprocity pursuant
to subsection 1 of this section, or a provisional license through the
substantial equivalency standard set out in subsection 1 of section
326.283, the board may issue a license to an applicant upon a showing
that:
(1) The applicant passed the examination required for issuance of the
applicant's certificate with grades that would have been passing grades
at the time in this state;
(2) The applicant had four years of experience outside of this state of
the type described in subdivision (6) of subsection 1 of section 326.280
or meets equivalent requirements prescribed by the board by rule, after
passing the examination upon which the applicant's license was based and
within the ten years immediately preceding the application; and
(3) If the applicant's certificate, license or permit was issued more
than four years prior to the application for issuance of a license
pursuant to this section, the applicant has fulfilled the requirements of
continuing professional education that would have been applicable
pursuant to subsection 6 of this section.
4. As an alternative to the requirements of subsection 3 of this section,
a certified public accountant licensed by another state who establishes a
principal place of business in this state shall request the issuance of a
license from the board prior to establishing the principal place of
business. The board may issue a license to the person who obtains
verification from the NASBA National Qualification Appraisal Service that
the individual's qualifications are substantially equivalent to the
licensure requirements of sections 326.250 to 326.331.
5. An application pursuant to this section may be made through the NASBA
Qualification Appraisal Service.
6. For renewal of a license pursuant to this section, each licensee shall
participate in a program of learning designed to maintain professional
competency. The program of learning shall comply with rules adopted by
the board. The board may create by rule an exception to such requirement
for licensees who do not perform or offer to perform for the public one
or more kinds of services involving the use of accounting or auditing
skills, including issuance of reports on financial statements or of one
or more kinds of management advisory, financial advisory or consulting
services, or the preparation of tax returns or the furnishing of advice
on tax matters. Licensees granted an exception by the board shall place
the word "inactive" adjacent to their certified public accountant title
on any business card, letterhead or any other document or device, except
their certified public accountant certificate, on which their certified
public accountant title appears.
7. Applicants for initial issuance or renewal of licenses pursuant to
this section shall list all states in which they have applied for or hold
certificates, licenses or permits and list any past denial, revocation or
suspension or any discipline of a certificate, license or permit. Each
holder of or applicant for a license shall notify the board in writing
within thirty days after its occurrence of any issuance, denial,
revocation or suspension or any discipline of a certificate, license or
permit by another state.
8. The board may issue a license to a holder of a substantially
equivalent foreign designation, provided that:
(1) The foreign authority which granted the designation makes similar
provisions to allow a person who holds a valid license issued by this
state to obtain such foreign authority's comparable designation; and
(2) The foreign designation:
(a) Was duly issued by a foreign authority that regulates the practice of
public accounting and the foreign designation 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 educational, examination 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 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 in subdivision (6) of subsection 1 of section 326.280
in the jurisdiction which granted the foreign designation or has
completed four years of professional experience in this state, or meets
equivalent requirements prescribed by the board by rule within the ten
years immediately preceding the application; and
(c) Passed a uniform qualifying examination in national standards and an
examination on the laws, regulations and code of ethical conduct in
effect in this state acceptable to the board.
9. An applicant pursuant to subsection 8 of this section shall list all
jurisdictions, foreign and domestic, in which the applicant has applied
for or holds a designation to practice public accounting. Each holder of
a license issued pursuant to this subsection shall notify the board in
writing within thirty days after its occurrence of any issuance, denial,
revocation, suspension or any discipline of a designation or commencement
of a disciplinary or enforcement action by any jurisdiction.
10. The board has the sole authority to interpret the application of the
provisions of subsections 8 and 9 of this section. (L. 2001 H.B. 567,
A.L. 2002 H.B. 1600)
1. The board may grant or renew permits to practice as a
certified public accounting firm to entities that make application and
demonstrate their qualifications in accordance with this section or to
certified public accounting firms originally licensed in another state
that establish an office in this state. A firm shall hold a permit issued
pursuant to this section to provide attest, review or compilation
services or to use the title certified public accountant or certified
public accounting firm.
2. Permits shall be initially issued and renewed for periods of not more
than three years or for a specific period as prescribed by board rule
following issuance or renewal.
3. The board shall determine by rule the form for application and renewal
of permits and shall annually determine the fees for permits and their
renewals.
4. An applicant for initial issuance or renewal of a permit to practice
pursuant to this section shall be required to show that:
(1) Notwithstanding any other provision of law to the contrary, a simple
majority of the ownership of the firm, in terms of financial interests
and voting rights of all partners, officers, principals, shareholders,
members or managers, belongs to licensees who are licensed in some state,
and the partners, officers, principals, shareholders, members or
managers, whose principal place of business is in this state and who
perform professional services in this state are licensees pursuant to
section 326.280 or the corresponding provision of prior law. Although
firms may include nonlicensee owners, the firm and its ownership shall
comply with rules promulgated by the board;
(2) Any certified public accounting firm may include owners who are not
licensees, provided that:
(a) The firm designates a licensee of this state who is responsible for
the proper registration of the firm and identifies that individual to the
board;
(b) All nonlicensee owners are active individual participants in the
certified public accounting firm or affiliated entities;
(c) The firm complies with other requirements as the board may impose by
rule;
(3) Any licensee, initially licensed on or after August 28, 2001, who is
responsible for supervising attest services, or signs or authorizes
someone to sign the licensee's report on the financial statements on
behalf of the firm, shall meet competency requirements as determined by
the board by rule which shall include one year of experience in addition
to the experience required pursuant to subdivision (6) of subsection 1 of
section 326.280 and shall be verified by a licensee. The additional
experience required by this subsection shall include experience in attest
work supervised by a licensee;
(4) Any licensee who is responsible for supervising review services or
signs or authorizes someone to sign review reports shall meet the
competency requirements as determined by board by rule which shall
include experience in review services.
5. An applicant for initial issuance or renewal of a permit to practice
shall register each office of the firm within this state with the board
and show that all attest, review and compilation services rendered in
this state are under the charge of a licensee.
6. No licensee or firm holding a permit pursuant to this chapter shall
use a professional or firm name or designation that is misleading as to:
(1) The legal form of the firm;
(2) The persons who are partners, officers, members, managers or
shareholders of the firm; or
(3) Any other matter.
The names of one or more former partners, members or shareholders may be
included in the name of a firm or its successor unless the firm becomes a
sole proprietorship because of the death or withdrawal of all other
partners, officers, members or shareholders. A firm may use a fictitious
name if the fictitious name is registered with the board and is not
otherwise misleading. The name of a firm shall not include the name or
initials of an individual who is not a present or a past partner, member
or shareholder of the firm or its predecessor. The name of the firm shall
not include the name of an individual who is not a licensee.
7. Applicants for initial issuance or renewal of permits shall list in
their application all states in which they have applied for or hold
permits as certified public accounting firms and list any past denial,
revocation, suspension or any discipline of a permit by any other state.
Each holder of or applicant for a permit pursuant to this section shall
notify the board in writing within thirty days after its occurrence of
any change in the identities of partners, principals, officers,
shareholders, members or managers whose principal place of business is in
this state; any change in the number or location of offices within this
state; any change in the identity of the persons in charge of such
offices; and any issuance, denial, revocation, suspension or any
discipline of a permit by any other state.
8. Firms which fall out of compliance with the provisions of this section
due to changes in firm ownership or personnel after receiving or renewing
a permit shall take corrective action to bring the firm back into
compliance as quickly as possible. The board may grant a reasonable
period of time for a firm to take such corrective action. Failure to
bring the firm back into compliance within a reasonable period as defined
by the board may result in the suspension or revocation of the firm
permit.
9. The board shall require by rule, as a condition to the renewal of
permits, that firms undergo, no more frequently than once every three
years, peer reviews conducted in a manner as the board shall specify. The
review shall include a verification that individuals in the firm who are
responsible for supervising attest, review and compilation services or
sign or authorize someone to sign the accountant's report on the
financial statements on behalf of the firm meet the competency
requirements set out in the professional standards for such services,
provided that any such rule:
(1) Shall include reasonable provision for compliance by a firm showing
that it has within the preceding three years undergone a peer review that
is a satisfactory equivalent to peer review generally required pursuant
to this subsection;
(2) May require, with respect to peer reviews, that peer reviews be
subject to oversight by an oversight body established or sanctioned by
board rule, which shall periodically report to the board on the
effectiveness of the review program under its charge and provide to the
board a listing of firms that have participated in a peer review program
that is satisfactory to the board; and
(3) Shall require, with respect to peer reviews, that the peer review
processes be operated and documents maintained in a manner designed to
preserve confidentiality, and that the board or any third party other
than the oversight body shall not have access to documents furnished or
generated in the course of the peer review of the firm except as provided
in subdivision (2) of this subsection.
10. Prior to January 1, 2008, licensees who perform fewer than three
attest services during each calendar year shall be exempt from the
requirements of subsection 9 of this section.
11. The board may, by rule, charge a fee for oversight of peer reviews,
provided that the fee charged shall be substantially equivalent to the
cost of oversight.
12. In connection with proceedings before the board or upon receipt of a
complaint involving the licensee performing peer reviews, the board shall
not have access to any documents furnished or generated in the course of
the performance of the peer reviews except for peer review reports,
letters of comment and summary review memoranda. The documents shall be
furnished to the board only in a redacted manner that does not
specifically identify any firm or licensee being peer reviewed or any of
their clients.
13. The peer review processes shall be operated and the documents
generated thereby be maintained in a manner designed to preserve their
confidentiality. No third party, other than the oversight body, the
board, subject to the provisions of subsection 12 of this section, or the
organization performing peer review shall have access to documents
furnished or generated in the course of the review. All documents shall
be privileged and closed records for all purposes and all meetings at
which the documents are discussed shall be considered closed meetings
pursuant to subdivision (1) of section 610.021, RSMo. The proceedings,
records and workpapers of the board and any peer review subjected to the
board process shall be privileged and shall not be subject to discovery,
subpoena or other means of legal process or introduction into evidence at
any civil action, arbitration, administrative proceeding or board
proceeding. No member of the board or person who is involved in the peer
review process shall be permitted or required to testify in any civil
action, arbitration, administrative proceeding or board proceeding as to
any matters produced, presented, disclosed or discussed during or in
connection with the peer review process or as to any findings,
recommendations, evaluations, opinions or other actions of such
committees or any of its members; provided, however, that information,
documents or records that are publicly available shall not be subject to
discovery or use in any civil action, arbitration, administrative
proceeding or board proceeding merely because they were presented or
considered in connection with the peer review process. (L. 2001 H.B. 567,
A.L. 2002 H.B. 1600)
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