OCCUPATIONAL CODE (EXCERPT)
Act 299 of 1980
339.728 License to engage in practice of public accounting; application by firm; requirements; change of address; practice of public accountancy under subsection (1); conditions; other professional services practiced without license.
(1) A firm shall apply for and obtain a Michigan license under this article in order to engage in the practice of public accounting in this state if either of the following apply:
(a) The firm establishes or maintains an office in this state.
(b) An individual representing the firm performs any engagement described in section 720(1)(a)(i), (iii), or (iv) for any client having its home office in this state.
(2) Reports produced pursuant to engagements in subsection (1)(b) may be supervised or signed, or the report's signature may be authorized for the firm, by an individual practicing public accounting in Michigan pursuant to section 727a.
(3) A firm applying for licensure under this article shall meet all of the following requirements:
(a) At least a simple majority of the equity and voting rights of the firm are held directly or beneficially by individuals who are licensed in good standing as certified public accountants of this or another state or the equivalent in another licensing jurisdiction acceptable to the board. Owners who are not certified public accountants as defined by section 720(1)(b) must be active individual participants in the firm or its affiliated entities. An individual with practice privileges under section 727a who performs services for which a firm license is required under this section is not required to obtain a certificate under section 726 or a registration or license under section 727.
(b) The principal officer of the firm and each officer or director having authority for the practice of public accounting by the firm are licensed in good standing as certified public accountants in this or another state or the equivalent in another licensing jurisdiction acceptable to the board.
(c) Has filed the required certificate of authority with the department pursuant to the business corporations act, 1972 PA 284, MCL 450.1101 to 450.2098, if applicable.
(4) A firm shall provide a change in address to the department within 30 days of the change.
(5) A firm not required to obtain a Michigan license under subsection (1) may perform a review engagement in accordance with the statements on standards for accounting and review services or a compilation for a client having its home office in this state, may use the title "CPA" or "CPA firm", and may practice public accountancy as authorized in this section without a license issued under subsection (1) only if it meets both of the following conditions:
(a) It has met the requirements in subsection (3)(a) and (b) and section 729(2).
(b) It performs such services through an individual with practice privileges under section 727a.
(6) A firm not required to obtain a Michigan license under subsection (1) and that is not seeking to practice under subsection (5) may perform other professional services within the practice of public accountancy while using the title "CPA" or "CPA firm" in this state without a license issued under subsection (1) only if it meets both of the following conditions:
(a) It performs such services though an individual with practice privileges under section 727a.
(b) It can lawfully do so in the licensing jurisdiction where such individuals with practice privilege have their principal place of business.
History: Add. 1997, Act 10, Imd. Eff. May 16, 1997
Am. 2000, Act 334, Imd. Eff. Dec. 20, 2000
Am. 2008, Act 161, Imd. Eff. June 11, 2008
Am. 2010, Act 215, Imd. Eff. Nov. 23, 2010
Popular Name: Act 299
© 2009 Legislative Council, State of Michigan