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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:
- an audit or other engagement performed in accordance
with the
Statements on Auditing Standards issued by AICPA.
- an examination of prospective financial information
performed in accordance with the
Statements on Standards for Attestation Engagements
issued by the AICPA.
- 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) an audit or other engagement performed in
accordance with the
Statements on Auditing Standards issued by the
AICPA.
- an examination of prospective financial information
performed in accordance with the
Statements on Standards for Attestation Engagements
issued by the AICPA; and
- 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) a review of a financial statement performed
in accordance with the
Statements on Standards for Accounting and Review
Services issued by AICPA; or
- a compilation (presentation of information) in
the form of a financial statement that:
- is performed in accordance with the statements
on standards for accounting and review services
of the American Institute of Certified Public
Accountants; and
- is the representation of management without
an undertaking on the part of the preparer to
express any assurance on the statements.
- 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.
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