Rule 20:75:07:04 New firms.
20:75:07:04. New firms. A new firm, as a condition to
renewal of its firm permit, must undergo a peer review during the first
calendar year after it has been engaged in the practice of public accountancy
for one full calendar year. After the initial review, the firm shall be
reviewed every three years.
A new firm is a firm that has not been
previously licensed in this state or has not had a peer review completed in the
three-year period prior to application. It does not include the following:
(1) A firm that has been
previously licensed and changes its name or the legal form of its practice, but
retains the same practice;
(2) A new
partnership formed by two former sole proprietors who are existing
permit holders who were already selected for peer review. The peer review of
the new firm shall be conducted in the later of the years for which each of the
former sole proprietors was selected;
(3) A partnership that is
dissolved with each individual taking clients from the partnership. The peer
review for the new firm of each permit holder remains in the same year to which
the original partnership was assigned;
(4) A partnership that is
dissolved with one partner taking all of the clients. The peer review for the
permit holder taking over the existing business remains in the year to which it
was originally assigned.
29 SDR 16, effective August 14, 2002.
Authority: SDCL 36-20B-12(9).
Implemented: SDCL 36-20B-36.
Back to 20:75:07