OAR 801-010-0340
Non-CPA and Non-PA Ownership of Business Organizations

(1) Requirements of non-CPA or non-PA ownership. The ownership of a business organization, defined in ORS 673.010 (Definitions for ORS 673.010 to 673.465) and registered as a firm under ORS 673.160 (Registration of business organizations) and OAR 801-010-0345 (Registration of Business Organizations), that is lawfully engaged in the practice of public accountancy in this state may include owners who are not licensed as certified public accountants or public accountants if the following conditions are met:
(a) Licensed certified public accountants and public accountants shall, in the aggregate, directly or beneficially, hold ownership of more than half of the equity capital and a majority of voting rights;
(b) If the business organization has its principal place of business in this state and performs public accountancy services in this state, licensees under the provisions of ORS 673.150 (Permits to engage in practice of public accountancy) or 673.100 (License as public accountant) shall, in the aggregate, directly or beneficially, hold ownership of more than half of the equity capital and a majority of voting rights;
(c) The business organization shall designate in writing a license holder under ORS 673.150 (Permits to engage in practice of public accountancy) who shall be responsible for the management and registration of the business organization in this state;
(d) A license holder under ORS 673.150 (Permits to engage in practice of public accountancy) shall have ultimate responsibility for each financial statement, review and/or attestation service engagement performed in this state;
(e) Non-licensee owners shall be material participants in the business of the firm or an entity affiliated with the firm;
(f) Non-licensee owners may be natural persons or legal entities provided that each ultimate beneficial owner of an equity interest in such entity shall be a natural person who materially participates in the business conducted by the firm.
(g) Non-licensee owners must not hold themselves out as certified public accountants or public accountants and must not have a license in Oregon or any other jurisdiction that has been suspended or revoked for disciplinary reasons.
(h) Inactive, lapsed, suspended, and retired licensees may not hold an ownership interest in a registered CPA or PA firm.
(i) Business organizations with non-CPA or non-PA ownership that are registered under OAR 801-010-0345 (Registration of Business Organizations) must comply with the requirements for peer review as provided in ORS 673.455 (Peer review programs) if such business organization performs attestation services or compilation services.
(j) For purposes of this rule, “material participation” means an activity that is regular, continuous and substantial.
(2) Registration. A business organization with non-licensee ownership that is registered in this state under OAR 801-010-0345 (Registration of Business Organizations) must certify at the time of registration and at each renewal that the business organization is in compliance with the provisions of this rule.
(3) Request for extension. If the licensee ownership of a registered business organization whose principal place of business is in this state does not meet the requirements of section (1) of this rule because of a death or other unforeseen circumstance, the business organization may request an extension of 180 days, or until the next renewal period, whichever is longer, for the business organization to meet such requirement.
(4) CPA designation. A business organization, of which the majority ownership is held by individuals licensed as public accountants under ORS 673.100 (License as public accountant), must not use the term “CPA firm” or any similar name that would indicate that a majority of the owners of the firm hold CPA certificates issued under ORS 673.040 (Eligibility for certificate of certified public accountant).

Source: Rule 801-010-0340 — Non-CPA and Non-PA Ownership of Business Organizations, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=801-010-0340.

Last Updated

Jun. 8, 2021

Rule 801-010-0340’s source at or​.us