State offices and all DLLR physical locations will be closed to the public December 24 & December 25, 2014. However, Unemployment Insurance telephone and Web operations WILL be available on Wednesday, December 24.

DLLR's Division of Occupational and Professional Licensing

 

How Mobility Works in Maryland - Maryland Board of Public Accountancy

 

The mobility provisions of the Maryland Public Accountancy Act permit an individual who is licensed as a certified public accountant in another state, and whose principal place of business is also located in another state, to provide CPA services in Maryland without having to give notice to the Board, pay a fee, or obtain a license. The only requirement is that the individual's out-of-state firm hold a valid Maryland CPA firm permit.

Any individual who provides CPA services in Maryland, based upon his/her licensure in another state, is required to comply with the provisions of the Maryland Public Accountancy Act and regulations governing the practice of certified public accountancy. The Board retains jurisdiction over these individuals to take disciplinary action. An out-of-state CPA who is disciplined by the Board may also face possible disciplinary action in the his/her home state.

An individual who is licensed in another state, but whose principal place of business is located in Maryland, must have a Maryland CPA license.

However, a sole practitioner, who is licensed in another state with a principal place of business in another state, may only provide certain attest services, as more fully explained below, in Maryland through a firm that has been issued a permit by the Board. The most practical way for a sole practitioner to practice in Maryland is to form a CPA corporation, partnership, limited liability company, or limited liability partnership in his/her home state, then apply for a Maryland firm permit.

IMPACT ON INDIVIDUALS

A CPA sole practitioner who is actively licensed in another state may perform CPA services in Maryland through a firm that has a Maryland permit without having to obtain a Maryland license. An individual who is licensed in another state, who practices as a sole practitioner, must obtain a firm permit* to provide the following financial statement or "attest" services for a client with a home office in Maryland:

  1. an audit or other engagement performed in accordance with the Statements on Auditing Standards issued by AICPA.
     
  2. an examination of prospective financial information performed in accordance with the Statements on Standards for Attestation Engagements issued by the AICPA.
     
  3. any engagement performed in accordance with the Auditing Standards of the Public Company Accounting Oversight Board.

* A sole practitioner who is actively licensed in another state and plans to perform these identified attest services in Maryland under the mobility provisions of the Maryland Public Accountancy Act must meet the requirements for one of the following types of business permits:

Partnerships
Corporations
LLC/LLP

IMPACT ON CPA FIRMS LOCATED IN OTHER STATES

The previous temporary permits that were available to out-of-state firms are no longer available. The mobility legislation repealed limited firm permits for corporations, partnerships, limited liability companies, and limited liability partnerships. Out-of-state CPA firms now must obtain a full two-year permit to provide the services listed below for a client with a home office in Maryland:

  1. (1) an audit or other engagement performed in accordance with the Statements on Auditing Standards issued by the AICPA.
     
  2. an examination of prospective financial information performed in accordance with the Statements on Standards for Attestation Engagements issued by the AICPA; and
     
  3. any engagement performed in accordance with the Auditing Standards of the Public Company Accounting Oversight Board.

Note: An out of state firm does not need a Maryland permit to perform the following services for a client with a home office in Maryland:

  1. (1) a review of a financial statement performed in accordance with the Statements on Standards for Accounting and Review Services issued by AICPA; or
     
  2. a compilation (presentation of information) in the form of a financial statement that:
     
    1. is performed in accordance with the statements on standards for accounting and review services of the American Institute of Certified Public Accountants; and
       
    2. is the representation of management without an undertaking on the part of the preparer to express any assurance on the statements.
       
  3. performs the above services through an individual who has a "practice privilege," see Maryland Law.

*An out of state firm must meet the requirements set forth in the Maryland Public Accountancy Act for the applicable type of business permit:

Partnerships
Corporations
LLC/LLP

IMPACT ON CONSUMERS

Consumers seeking information about the license status of a CPA or the permit status of a CPA firm will be required to do more than just consult the Board's website or call the Board directly. When contacting a CPA or CPA firm to perform and audit or other CPA service, an individual or business should inquire about the license status of the CPA, including the state in which the CPA is licensed, and the license/permit status of the CPA firm.

The Maryland Board has developed an "easy to use" map that will direct consumers to the license verification websites for almost every state board of accountancy.  View the map.