HB0209 - Certified Public Accountancy Act.

2001

state of Wyoming

01LSO-0414

HOUSE BILL NO. HB0209

Certified Public Accountancy Act.

Sponsored by: Representative(s) Johnson, W. and Senator(s)
Anderson, J.

A BILL

for

1 AN ACT relating to the profession of accounting; providing
2 for certificate and permit requirements for certified
3 public accountants; providing for an accountancy board;
4 providing for definitions and standards; authorizing
5 investigations and hearings; specifying conditions by which
6 certificates or permits can be revoked or suspended;
7 providing for criminal penalties; repealing "The Certified
8 Public Accountant's Act of 1975"; and providing for an
9 effective date.

11 Be It Enacted by the Legislature of the state of Wyoming:

13 Section 1. W.S. 33-3-301 through 33-3-319 are created
14 to read:

16 ARTICLE 3

Page 1

1 WYOMING CERTIFIED PUBLIC ACCOUNTANCY ACT OF 2001

3 33-3-301. Title.

5 This act may be cited as the "Wyoming Certified Public
6 Accountancy Act of 2001."

8 33-3-302. Definitions.

10 (a) As used in this act:

12 (i) "AICPA" means the American Institute of
13 Certified Public Accountants;

15 (ii) "Attest" means providing the following
16 financial statement services subject to the exception set
17 out in W.S. 33-3-312:

19 (A) Any audit or other engagement to be
20 performed in accordance with the Statements on Auditing
21 Standards (SAS);

23 (B) Any examination of prospective
24 financial information to be performed in accordance with

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1 the Statements on Standards for Attestation Engagements
2 (SSAE);

4 (C) Any review of a financial statement to
5 be performed in accordance with the Statements on Standards
6 for Accounting and Review Services (SSARS); and

8 (D) The statements on standards specified
9 in this definition shall be adopted by reference by the
10 board pursuant to the Wyoming Administrative Procedure Act
11 and shall be those developed for general application by
12 recognized national accountancy organizations like the
13 AICPA.

15 (iii) "Board" means the Wyoming Board of
16 Certified Public Accountancy established under W.S.
17 33-3-303 or its predecessor under prior law;

19 (iv) "Certificate" means a certificate as
20 "certified public accountant" issued under W.S. 33-3-305 or
21 corresponding provisions of prior law or a corresponding
22 certificate as certified public accountant issued after
23 examination under the law of any other state;

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1 (v) "Client" means a person or entity that
2 agrees with a certificate or permit holder or a certificate
3 holder or a employer to receive any professional service;

5 (vi) "Compilation" means providing a service to
6 be performed in accordance with statements on Standards for
7 Accounting and Review Services (SSARS) that is presented in
8 the form of financial statements, information that is the
9 representation of the client or the client's management
10 (owners) without undertaking to express any assurance on
11 the statements;

13 (vii) "CPA firm" means any form of organization
14 allowed by state law that has been issued a permit under
15 W.S. 33-3-306;

17 (viii) "NASBA" means the National Association of
18 State Boards of Accountancy;

20 (ix) "Peer review" means a study, appraisal or
21 review of one (1) or more aspects of the professional work
22 of a certificate or permit holder that performs attest or
23 compilation services by a certificate holder who is not

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1 affiliated with the certificate or permit holder being
2 reviewed;

4 (x) "Permit" means a permit to practice as a CPA
5 firm issued under W.S. 33-3-306 or corresponding provisions
6 of prior law or under corresponding provisions of the laws
7 of other states;

9 (xi) "Practice of accounting" means holding out
10 to be a certified public accountant or a certified public
11 accounting firm in any manner and offering to perform or
12 performing one (1) or more kinds of services involving the
13 use of accounting and auditing skills including the
14 issuance of reports on financial statements or one (1) or
15 more kinds of management advisory services, financial
16 advisory services, consulting services, the preparation of
17 tax returns or furnishing advice on tax matters;

19 (xii) "Practice monitoring program" means a
20 program consisting of peer reviews which are conducted in
21 conformity with standards promulgated by the peer review
22 committees of the American Institute of Certified Public
23 Accountants;

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1 (xiii) "Professional" means arising out of or
2 related to the specialized knowledge or skills associated
3 with CPAs;

5 (xiv) "Report" when used with reference to
6 financial statements prepared by certificate or permit
7 holders means an opinion, report or other form of language
8 that states or implies assurance as to the reliability of
9 any financial statements and that also includes or is
10 accompanied by any statement or implication that the person
11 or firm issuing it has special knowledge or competence in
12 accounting or auditing. A statement or implication of
13 special knowledge or competence may arise from use by the
14 issuer of the report of names or titles indicating that the
15 person or firm is a certificate or permit holder or from
16 the language of the report itself. The term "report"
17 includes any form of language which disclaims an opinion
18 when the form of language is conventionally understood to
19 imply any positive assurance as to the reliability of the
20 financial statements referred to or special competence on
21 the part of the person or firm issuing the language and it
22 includes any other form of language that is conventionally
23 understood to imply an assurance or special knowledge or
24 competence;

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2 (xv) "Reviewer" means a certificate or permit
3 holder who fulfills the requirements for peer reviews as
4 established by the American Institute of Certified Public
5 Accountants;

7 (xvi) "Rule" means any rule, regulation or other
8 written directive of general application duly adopted by
9 the board;

11 (xvii) "State" means any state of the United
12 States, the District of Columbia, Puerto Rico, the United
13 States Virgin Islands and Guam; except that "this state"
14 means the state of Wyoming;

16 (xviii) "This act" means W.S. 33-3-301 through
17 33-3-319.

19 33-3-303. State board of accountancy.

21 (a) There is created the Wyoming board of certified
22 public accountancy, which shall have responsibility for the
23 administration and enforcement of this act. The board shall
24 consist of five (5) members, appointed by the governor, all

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1 of whom shall be residents of this state. Three (3)
2 members of the board shall be persons who hold certified
3 public accountant certificates issued under the laws of
4 Wyoming, who work for a firm permitted under W.S. 33-3-306
5 and are in good standing as certified public accountants.
6 One (1) member of the board shall be a person who holds a
7 certified public accountant certificate issued under the
8 laws of Wyoming and who does not work for a firm permitted
9 under W.S. 33-3-306. One (1) member of the board shall be a
10 member of the general public who is not a certificate
11 holder and who does not provide accounting services. The
12 term of each member of the board shall be three (3) years,
13 the term of each to be designated by the governor except
14 that members of the board appointed and serving as members
15 under prior law at the effective date of this act shall
16 serve out the terms for which they were appointed, as
17 members of the board created by this section. Vacancies
18 occurring during a term shall be filled by appointment by
19 the governor for the unexpired term. Upon the expiration of
20 the member's term of office, a member shall continue to
21 serve until a successor shall have been appointed and taken
22 office. The governor may remove any member he appoints as
23 provided in W.S. 9-1-202 Appointment to fill an unexpired
24 term shall be considered a complete term for this purpose.

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1 A person who has served two (2) complete consecutive terms
2 shall be eligible for reappointment after the expiration of
3 two (2) full terms.

5 (b) The board shall elect annually from among its
6 members a chairman and other officers as the board may
7 determine to be appropriate. The board shall meet at the
8 times and places as may be fixed by the board. Meetings of
9 the board shall be conducted pursuant to the provisions of
10 the public meetings statutes, W.S. 16-4-401, et seq. A
11 majority of the board members then in office shall
12 constitute a quorum at any meeting duly called. The board
13 shall have a seal which shall be judicially noticed. The
14 board shall retain or arrange for the retention of all
15 applications and all documents under oath that are filed
16 with the board and also records of its proceedings and it
17 shall maintain a registry of the names and addresses of all
18 certificate or permit holders under this act.

20 (c) Each member of the board shall receive as
21 compensation the amount paid each day to legislators for
22 each day or portion thereof spent in the discharge of the
23 member's official duties and shall be reimbursed under W.S.

Page 9

1 9-3-102 and 9-3-103 for per diem and travel expenses
2 incurred in the performance of their duties.

4 (d) All monies collected by the board from fees
5 authorized to be charged by this act shall be received and
6 accounted for by the board and shall be deposited in the
7 state treasury to the credit of the board. Appropriation
8 shall be made for the expenses of administering the
9 provisions of this act which may include, but shall not be
10 limited to, the costs of conducting investigations and of
11 taking testimony and procuring the attendance of witnesses
12 before the board or its committees; all legal proceedings
13 taken under this act for the enforcement thereof; and
14 educational programs for the benefit of the public and
15 certificate or permit holders and their employees.

17 (e) The board shall file an annual report of its
18 activities with the governor and the legislature pursuant
19 to Wyoming statutes. The board shall mail a copy of the
20 annual report to any person requesting it and paying a
21 reasonable charge therefor.

23 (f) The board shall prepare for public distribution
24 an annual register which lists all current certificate and

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1 permit holders, the names of the board members and other
2 matters deemed proper by the board and copies of the
3 register shall be mailed to each certificate holder.

5 (g) The board may employ an executive director and
6 other personnel as it deems necessary in its administration
7 and enforcement of this act. It may appoint committees or
8 persons to advise or assist it in the administration and
9 enforcement as it may see fit. It may retain its own
10 counsel to advise and assist it in addition to the advice
11 and assistance as is provided by the attorney general of
12 this state.

14 (h) The board shall have the power to take all action
15 that is necessary and proper to effectuate the purposes of
16 this act, including the power to sue and be sued in its
17 official name as an agency of this state. The board shall
18 also have the power to issue subpoenas to compel the
19 attendance of witnesses and the production of documents; to
20 administer oaths; to take testimony; to cooperate with the
21 appropriate authorities in other states in investigation
22 and enforcement concerning violations of this act and
23 comparable acts of other states; and to receive evidence
24 concerning all matters within the scope of this act. In

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1 case of disobedience of a subpoena, the board may invoke
2 the aid of any court in requiring the attendance and
3 testimony of witnesses and the production of documentary
4 evidence. The board, its members and its agents shall be
5 immune from personal liability for actions taken in good
6 faith in the discharge of the board's responsibilities and
7 the state shall hold the board, its members and its agents
8 harmless from all costs, damages and attorneys' fees
9 arising from claims and suits against them with respect to
10 matters to which the immunity applies.

12 (j) The board shall prescribe rules and regulations
13 consistent with the provisions of this act and other
14 statutes of the state consistent with or required for the
15 public interest. The rules and regulations shall include
16 but are not limited to:

18 (i) Rules governing the board's meetings and the
19 conduct of its business;

21 (ii) Rules of procedure governing the conduct of
22 investigations and hearings by the board;

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1 (iii) Rules specifying the educational and
2 experience qualifications required for the issuance of
3 certificates under W.S. 33-3-305 and the continuing
4 professional education required for renewal of certificates
5 under W.S. 33-3-305;

7 (iv) Rules of professional conduct directed to
8 controlling the quality and probity of services by
9 certificate or permit holders and dealing among other
10 things with independence, integrity and objectivity;
11 competence and technical standards; responsibilities to the
12 public; and responsibilities to clients;

14 (v) Rules governing the manner and circumstances
15 of use of the titles "certified public accountant" and
16 "CPA";

18 (vi) Rules regarding peer review that may be
19 required to be performed under provisions of this act;

21 (vii) Rules governing the determination of
22 substantial equivalence;

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1 (viii) Rules establishing examination fees in an
2 amount sufficient to ensure funds adequate to administer
3 the examination required in W.S. 33-3-304(a)(iv) or to
4 administer the special test to foreign applicants
5 authorized by W.S. 33-3-305(h);

7 (ix) Other rules as the board may deem necessary
8 or appropriate for implementing the provisions and the
9 purposes of this act;

11 (x) Rules governing the professional standards
12 applicable to certificate or permit holders;

14 (xi) Rules governing the use of the CPA
15 designation on inactive or retired status.

17 (k) All rules and regulations and proceedings shall
18 be in compliance with the Wyoming Administrative Procedure
19 act.

21 33-3-304. Qualifications for a certificate as a
22 certified public accountant.

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1 (a) The certificate of "certified public accountant"
2 shall be granted to any person who meets the education,
3 experience and examination requirements of this section and
4 who makes application therefor pursuant to W.S. 33-3-305:

6 (i) Who is a resident of Wyoming or has a place
7 of business in Wyoming or, as an employee, is regularly
8 employed in Wyoming;

10 (ii) Who has attained the age of majority in
11 Wyoming;

13 (iii) Who has:

15 (A) Prior to December 31, 1999, earned a
16 baccalaureate degree conferred by a college or university
17 recognized by the board with twenty-four (24) semester
18 hours in accounting and passed the exam by December 31,
19 2002; or

21 (B) After December 31, 1999, met the
22 eligibility requirement to apply for the examination given
23 pursuant to paragraph (iv) of this subsection by completing
24 at least one hundred fifty (150) semester hours of college

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1 education including a baccalaureate or higher degree
2 conferred by a college or university acceptable to the
3 board, the total educational program to include an
4 accounting concentration or equivalent as determined to be
5 appropriate by the rules and regulations of the board; or
6 who expects to meet the requirements within ninety (90)
7 days following the examination, or with respect to whom the
8 requirement has been waived, is eligible to take the
9 examination when the person has met the requirements. When
10 any candidate is admitted to the examination on the
11 expectation that the person will complete the education
12 requirement within ninety (90) days, no certificate shall
13 be issued nor shall credit for any part of the examination
14 be given, unless the requirement is in fact completed
15 within the time or within the time the board in its
16 discretion may determine upon application; and

18 (iv) Who has passed an examination in accounting
19 and auditing and other related subjects the board
20 determines to be appropriate. The examination required to
21 be passed as a condition for the granting of a certificate
22 shall be held at least twice a year and shall test the
23 applicant's knowledge of the subjects of accounting and
24 auditing and other related subjects as the board may

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1 specify by rule, including but not limited to, business law
2 and taxation. The time for holding the examination shall
3 be determined by the board and may be changed from time to
4 time. The board shall prescribe by rule the methods of
5 applying for and conducting the examination; including
6 grading papers and determining a passing grade required of
7 an applicant for a certificate and granting credit for
8 passing individual portions of the examination as allowed
9 by board rules. The board shall, to the extent possible,
10 see to it that the examination itself, grading of the
11 examination and the passing grades are uniform with those
12 applicable in all other states. The board may make use of
13 all or any part of the Uniform Certified Public Accountant
14 Examination and Advisory Grading Service of the American
15 Institute of Certified Public Accountants and may contract
16 with third parties to perform administrative services with
17 respect to the examination as it deems appropriate to
18 assist it in performing its duties under this section.

20 (b) An applicant for initial issuance of a
21 certificate under this section shall show that the
22 applicant has had one (1) year's full-time experience. This
23 experience shall include providing any type of service or
24 advice involving the use of accounting, attest,

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1 compilation, management advisory, financial advisory, tax
2 or consulting skills all of which shall be verified by a
3 certificate holder or the equivalent experience
4 satisfactory to the board as set forth in the rules and
5 regulations. This experience shall be acceptable if it was
6 gained through employment in government, industry,
7 academia, public practice or in a CPA firm.

9 (c) The board may waive the education requirements in
10 paragraph (a)(iii) of this section and accept an
11 application to apply for the examination required under
12 paragraph (a)(iv) of this section if the applicant
13 demonstrates completion of a baccalaureate degree with a
14 total accounting concentration as determined by the board
15 in the rules and regulations who has also completed one (1)
16 year of qualified experience as required under subsection
17 (b) of this section. No certificate earned as a result of
18 successful completion of the examination pursuant to this
19 section will be granted until the applicant has completed
20 an additional three (3) years of qualified experience.

22 33-3-305. Issuance and renewal of certificates and
23 maintenance of competency.

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1 (a) The board shall grant or renew certificates to
2 persons who make application and demonstrate that their
3 qualifications, including where applicable the
4 qualifications prescribed by W.S. 33-3-304, are in
5 accordance with this section. The holder of a certificate
6 issued under this section may only provide attest services,
7 as defined, in a CPA firm that holds a permit issued under
8 W.S. 33-3-306.

10 (b) Certificates shall be initially issued, renewed
11 annually and shall expire on December 31 of the year of
12 issuance or renewal. Applications for the certificates
13 shall be made in the form and in the case of applications
14 for renewal, between dates as the board shall by rule
15 specify and the board shall grant or deny any application
16 no later than ninety (90) days after the application is
17 filed in proper form. In any case where the applicant seeks
18 the opportunity to show that issuance or renewal of a
19 certificate was mistakenly denied or where the board is not
20 able to determine whether it should be granted or denied,
21 the board may issue to the applicant a provisional
22 certificate, which shall expire one hundred thirty (130)
23 days after its issuance or when the board determines

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1 whether or not to issue or renew the certificate for which
2 application was made, whichever shall first occur.

4 (c) The board shall issue a certificate to a holder
5 of a certificate issued by another state upon showing that:

7 (i) The applicant passed the examination
8 required for issuance of the applicant's certificate with
9 grades that would have been passing grades at the time in
10 this state;

12 (ii) The applicant met the education and
13 experience requirements as set forth in W.S.
14 33-3-304(a)(iii) and 33-3-304(b) or the applicant had five
15 (5) years of experience of the type described in W.S.
16 33-3-304(b) earned within the ten (10) years immediately
17 preceding the application; and

19 (iii) If the applicant's experience was earned
20 more than five (5) years prior to the application for
21 issuance of an initial certificate under this section, that
22 the applicant has fulfilled the requirements of continuing
23 professional education that would have been applicable
24 under subsection (f) of this section.

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2 (d) The board shall by rule require, on either a
3 uniform or a random basis, any certificate holder who
4 performs compilation services for the public other than
5 through a CPA firm, that the individual undergo, no more
6 frequently than once every three (3) years, a peer review
7 conducted in the manner as the board shall by rule specify
8 and the review shall include verification that the
9 individual has met the experience or competency
10 requirements set out in professional standards for the
11 services.

13 (e) As an alternative to the requirements of
14 subsection (c) of this section, the board may provide by
15 rule a mechanism for an applicant to demonstrate the
16 requirements have been met. The board may use or recognize
17 the National Qualification Appraisal Service (NASBA) or
18 verification from other state boards of accountancy.

20 (f) For renewal of a certificate under this section,
21 each certificate holder shall participate in a program of
22 learning designed to maintain professional competency. The
23 program of learning shall comply with rules adopted by the
24 board. The board may by rule create an exception to this

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1 requirement for certificate holders who do not perform one
2 (1) or more kinds of services involving the use of
3 accounting or auditing skills, including issuance of
4 reports on financial statements, of one (1) or more kinds
5 of management advisory, financial advisory or consulting
6 services, the preparation of tax returns or the furnishing
7 of advice on tax matters. Certificate holders granted an
8 exception by the board shall place the word "inactive"
9 adjacent to their CPA title on any business card,
10 letterhead or any other document or device, with the
11 exception of their CPA certificate on which their CPA title
12 appears.

14 (g) Applicants for initial issuance or renewal of
15 certificates under subsections (a) through (f) of this
16 section shall in their applications list all states in
17 which they hold certificates, licenses or permits and list
18 any denial, revocation or suspension of a certificate,
19 license or permit within the prior twelve (12) month
20 period. Each holder of, or applicant for, a certificate
21 under this section shall notify the board in writing of any
22 issuance, denial, revocation or suspension of a
23 certificate, license or permit by another state.

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1 (h) The board shall issue a certificate to a holder
2 of a substantially equivalent foreign designation, provided
3 that:

5 (i) The foreign authority which granted the
6 designation makes similar provision to allow a person who
7 holds a valid certificate issued by this state to obtain
8 the foreign authority's comparable designation;

10 (ii) The foreign designation:

12 (A) Was duly issued by a foreign authority
13 that regulates the practice of public accountancy and the
14 foreign designation has not expired, been revoked or
15 suspended;

17 (B) Entitles the holder to issue reports
18 upon financial statements;

20 (C) Was issued upon the basis of
21 educational, examination and experience requirements
22 established by the foreign authority or by law; and

24 (iii) The applicant:

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2 (A) Received the designation, based on
3 educational and examination standards substantially
4 equivalent to those in effect in this state at the time the
5 foreign designation was granted;

7 (B) Completed an experience requirement
8 substantially equivalent to the requirement set out in W.S.
9 33-3-304(b) in the jurisdiction which granted the foreign
10 designation or has completed four (4) years of professional
11 experience in this state or meets equivalent requirements
12 prescribed by the board by rule, within the ten (10) years
13 immediately preceding the application; and

15 (C) Passed a uniform qualifying examination
16 in national standards and an examination on the laws,
17 regulations and code of ethical conduct in effect in this
18 state acceptable to the board.

20 (j) An applicant applying pursuant to subsection (h)
21 of this section shall in the application list all
22 jurisdictions, foreign and domestic, in which the applicant
23 holds a designation to practice public accountancy. Each
24 holder of a certificate issued under this section shall

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1 notify the board in writing of any issuance, denial,
2 revocation or suspension of a designation or commencement
3 of a disciplinary or enforcement action by any
4 jurisdiction.

6 (k) The board has the sole authority to interpret the
7 application of the provisions of subsections (e) and (f) of
8 this section.

10 (m) For a period of twelve (12) months from the
11 effective date of this act, all certificate holders who
12 maintain the certificate on inactive status under prior law
13 shall have the opportunity to continue to hold the
14 certificate pursuant to the terms of this act without
15 meeting additional experience requirements under W.S.
16 33-3-304(b). All holders who elect to avail themselves of
17 this opportunity shall comply with all other provisions of
18 this act.

20 (n) There shall be an annual certificate fee not
21 exceeding three hundred dollars ($300.00) to be determined
22 by the board. If the annual certificate fee is not paid by
23 the deadlines established by board rule, a late renewal fee
24 as set by the board, not to exceed one hundred fifty

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1 dollars ($150.00), will be added to the renewal fee. In any
2 case, the renewal fee shall be an amount not in excess of
3 four hundred fifty dollars ($450.00) to be determined by
4 the board.

6 (o) Any certificate holder granted the exception to
7 be placed on inactive status pursuant to subsection (f) of
8 this section shall pay an annual fee not exceeding one-half
9 (1/2) of the annual certificate fees assessed in subsection
10 (n) of this section.

12 33-3-306. Firm permits to practice, attest experience
13 and peer review.

15 (a) The board shall grant or renew permits to
16 practice as a CPA firm to entities that make application
17 and demonstrate their qualifications therefor in accordance
18 with this section. A firm shall hold a permit issued under
19 this section in order to provide attest services as defined
20 or to use the title "ACPA" or "ACPA firm".

22 (b) Permits shall be initially issued and renewed for
23 periods of not more than one (1) year expiring on December
24 31 of each year following issuance or renewal. Applications

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1 for permits shall be made in the form and in the case of
2 applications for renewal between the dates as the board may
3 by rule specify.

5 (c) An applicant for initial issuance or renewal of a
6 permit to practice under this section shall be required to
7 show that:

9 (i) Notwithstanding any other provision of law,
10 a simple majority of the ownership of the firm, in terms of
11 financial interests and voting rights of all partners,
12 officers, shareholders, members or managers belongs to
13 holders of a certificate who are licensed in some state and
14 the partners, officers, shareholders, members or managers
15 who perform professional services in this state hold a
16 valid certificate issued under W.S. 33-3-305 or the
17 corresponding provision of prior law. Although firms may
18 include noncertificate holder owners, the firm and its
19 ownership shall comply with rules promulgated by the board;

21 (ii) Any CPA firm as defined in this act may
22 include noncertificate holder owners provided that:

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1 (A) The firm designates a certificate
2 holder of this state who is responsible for the proper
3 registration of the firm and the firm notifies the board
4 whom that individual is; and

6 (B) All noncertificate holder owners are
7 active individual participants in the CPA firm.

9 (iii) Any individual certificate holder who is
10 responsible for supervising attest or compilation services
11 or signs or authorizes someone to sign the accountant's
12 report on the financial statements on behalf of the firm
13 shall meet the experience or competency requirements set
14 out in the professional standards for the services.

16 (d) An applicant for initial issuance or renewal of a
17 permit to practice under this section shall be required to
18 register each office of the firm within this state with the
19 board and to show that all attest or compilations services
20 as defined in this act rendered in this state are under the
21 charge of a person holding a valid certificate issued under
22 W.S. 33-3-305 or the corresponding provision of prior law.

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1 (e) An applicant for initial issuance or renewal of
2 permits under this section shall in their application list
3 all states in which they hold permits as CPA firms and list
4 any past denial, revocation or suspension of a permit by
5 any other state. Each holder of or applicant for a permit
6 under this section shall notify the board in writing,
7 within thirty (30) days after its occurrence, of any change
8 in the identities of partners, officers, shareholders,
9 members or managers, any change in the number or location
10 of offices within this state, any change in the identity of
11 the persons in charge of the offices and any issuance,
12 denial, revocation or suspension of a permit by any other
13 state.

15 (f) There shall be an annual permit fee not exceeding
16 three hundred dollars ($300.00) to be determined by the
17 board. If the annual permit fee is not paid by the
18 deadlines established by board rule, a late renewal fee as
19 set by the board, not to exceed one hundred fifty dollars
20 ($150.00), will be added to the renewal fee. In any case,
21 the renewal fee shall be an amount not in excess of four
22 hundred fifty dollars ($450.00), to be determined by the
23 board.

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1 (g) Firms which are not in compliance with the
2 provisions of subsection (c) of this section due to changes
3 in firm ownership or personnel, after receiving or renewing
4 a permit, shall take corrective action to bring the firm
5 back into compliance. The state board may grant a period of
6 time for a firm to take corrective action. Failure to take
7 corrective action may result in the suspension or
8 revocation of the firm permit.

10 (h) The board may require, on a uniform or random
11 basis, that certificate or permit holders undergo peer
12 review conducted in a manner as the board may specify by
13 rule and regulation. The review shall include verification
14 of compliance with the experience or competency
15 requirements set out in professional standards for the
16 services.

18 (j) Any report, statement, memorandum, transcript,
19 finding, record or working paper prepared and any opinion
20 formulated in connection with any practice monitoring
21 program which is in the possession of the board or the
22 reviewer shall be considered privileged and shall not be
23 subject to discovery, subpoena or other means of legal
24 compulsion for release to any person or entity or be

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1 admissible as evidence in any judicial or administrative
2 proceeding.

4 33-3-307. Appointment of secretary of state as agent.

6 Application by a person or a firm not a resident of this
7 state for a certificate under W.S. 33-3-305 or a permit to
8 practice under W.S. 33-3-306 shall constitute appointment
9 of the secretary of state as the applicant's agent upon
10 whom process may be served in any action or proceeding
11 against the applicant arising out of any transaction or
12 operation connected with or incidental to services
13 performed by the applicant while a certificate or permit
14 holder within this state.

16 33-3-308. Enforcement against holders of
17 certificates, permits and registrations.

19 (a) After notice and hearing pursuant to W.S.
20 33-3-310, the board may revoke any certificate or permit
21 issued under W.S. 33-3-305 or 33-3-306 or corresponding
22 provisions of prior law or suspend any certificate or
23 permit or refuse to renew any certificate or permit for a
24 period of not more than five (5) years; reprimand, censure

Page 31

1 or limit the scope of practice of any certificate or permit
2 holder; impose an administrative fine not exceeding one
3 thousand dollars ($1,000.00) or place any certificate or
4 permit holder on probation, all with or without terms,
5 conditions and limitations, for any one (1) or more of the
6 following reasons:

8 (i) Fraud or deceit in obtaining a certificate
9 or permit;

11 (ii) Cancellation, revocation, suspension or
12 refusal to renew a license or practice rights for
13 disciplinary reasons in any other state for any cause;

15 (iii) Failure, on the part of a holder of a
16 certificate or permit under W.S. 33-3-305 or 33-3-306, to
17 maintain compliance with the requirements for issuance or
18 renewal of the certificate or permit or to report changes
19 to the board under W.S. 33-3-305(g) or 33-3-306(e) or to
20 pay the fee required by W.S. 33-3-305(k), 33-3-305(n) or
21 33-3-306(f);

Page 32

1 (iv) Failure to apply for a certificate or
2 permit within one (1) year from the expiration date of the
3 certificate or permit last obtained or renewed;

5 (v) Revocation or suspension of the right to
6 practice before any state or federal agency;

8 (vi) Dishonesty, fraud or gross negligence in
9 the performance of services as a certificate or permit
10 holder or in the filing or failure to file the certificate
11 or permit holder's own income tax returns;

13 (vii) Violation of any provision of this act or
14 rule promulgated by the board under this act or violation
15 of professional standards;

17 (viii) Violation of any rule of professional
18 conduct promulgated by the board under W.S.
19 33-3-303(h)(iv);

21 (ix) Conviction of a felony or any crime an
22 element of which is dishonesty or fraud, under the laws of
23 the United States, of this state or of any other state if

Page 33

1 the acts involved would have constituted a crime under the
2 laws of this state;

4 (x) Performance of any fraudulent act while
5 holding a certificate or permit issued under this act or
6 prior law;

8 (xi) Any conduct reflecting adversely upon the
9 certificate or permit holder's fitness to perform services
10 while a certificate or permit holder;

12 (xii) Making any false or misleading statement
13 or verification, in support of an application for a
14 certificate, registration or permit filed by another; or

16 (xiii) Failure of a certificate or permit holder
17 to show compliance with W.S. 33-3-305(d) or 33-3-306(h)
18 concerning peer review.

20 (b) In lieu of, or in addition to, any remedy
21 specifically provided in subsection (a) of this section,
22 the board may require of a certificate or permit holder:

Page 34

1 (i) A peer review conducted in the fashion as
2 the board may specify; or

4 (ii) Satisfactory completion of the continuing
5 professional education programs as the board may specify,
6 or both.

8 33-3-309. Enforcement procedures and investigations.

10 (a) The board may, upon receipt of a complaint or
11 other information suggesting violations of this act or of
12 the rules of the board, conduct investigations to determine
13 whether there is probable cause to institute proceedings
14 under W.S. 33-3-310, 33-3-313 or 33-3-314 against any
15 person or firm for the violation but an investigation under
16 this section shall not be a prerequisite to proceedings in
17 the event that a determination of probable cause can be
18 made without investigation. In aid of the investigations,
19 the board or the chairperson thereof may issue subpoenas to
20 compel witnesses to testify and to produce evidence.

22 (b) The board may designate a member or any other
23 person of appropriate competence to serve as investigating
24 officer to conduct an investigation. Upon completion of an

Page 35

1 investigation, the investigating officer shall file a
2 report with the board. The board shall find probable cause
3 or lack of probable cause upon the basis of the report or
4 shall return the report to the investigating officer for
5 further investigation. Unless there has been a
6 determination of probable cause, the report of the
7 investigating officer, the complaint, if any, the testimony
8 and documents submitted in support of the complaint or
9 gathered in the investigation and the fact of pendency of
10 the investigation shall be treated as confidential
11 information and shall not be disclosed to any person except
12 law enforcement authorities and to the extent deemed
13 necessary in order to conduct the investigation the subject
14 of the investigation, persons whose complaints are being
15 investigated and witnesses questioned in the course of the
16 investigation.

18 (c) Upon a finding of probable cause, if the subject
19 of the investigation is a certificate or permit holder, the
20 board shall direct that a complaint be issued under W.S.
21 33-3-310 and if the subject of the investigation is not a
22 certificate or permit holder the board shall take
23 appropriate action under W.S. 33-3-313 or 33-3-314. Upon a
24 finding that there is no probable cause, the board shall

Page 36

1 close the matter and shall thereafter release information
2 relating thereto only with the consent of the person or
3 firm under investigation.

5 33-3-310. Enforcement procedures and hearings by the
6 board.

8 (a) In any case where probable cause with respect to
9 a violation by a certificate or permit holder has been
10 determined by the board, whether following an investigation
11 under W.S. 33-3-309 or upon receipt of a written complaint
12 furnishing grounds for a determination of probable cause or
13 upon receipt of notice of a decision by the board of
14 accountancy of another state furnishing the grounds, the
15 board shall issue a complaint setting forth appropriate
16 charges and set a date for hearing before the board on the
17 charges. The board shall, not less than thirty (30) days
18 prior to the date of the hearing, serve a copy of the
19 complaint and notice of the time and place of the hearing
20 upon the certificate or permit holder, together with a copy
21 of the board's rules governing proceedings under this
22 section, either by personal delivery or by mailing a copy
23 thereof by certified mail to the certificate or permit

Page 37

1 holder at the certificate or permit holder's last known
2 address.

4 (b) A certificate or permit holder against whom a
5 complaint has been issued under this section shall have the
6 right, reasonably in advance of the hearing, to examine and
7 copy the report of investigation, if any, and any
8 documentary or testimonial evidence and summaries of
9 anticipated evidence in the board's possession relating to
10 the subject matter of the complaint. The board's rules
11 governing proceedings under this section shall specify the
12 manner in which any right may be exercised.

14 (c) In a hearing under this section, the respondent
15 certificate or permit holder may appear in person or, in
16 the case of a firm, through a partner, officer, director,
17 shareholder, member or manager and by counsel, examine
18 witnesses and evidence presented in support of the
19 complaint and present evidence and witnesses on the
20 certificate or permit holder's own behalf. The certificate
21 or permit holder shall be entitled, on application to the
22 board, to the issuance of subpoenas to compel the
23 attendance of witnesses and the production of documentary
24 evidence.

Page 38

2 (d) The evidence supporting the complaint shall be
3 presented by the investigating officer, by a board member
4 designated for that purpose or by counsel. A board member
5 who presents the evidence or who has conducted the
6 investigation of the matter under W.S. 33-3-309, shall not
7 participate in the board's decision of the matter.

9 (e) In a hearing under this section the board shall
10 be advised by counsel, who shall not be the same counsel
11 who presents or assists in presenting the evidence
12 supporting the complaint under subsection (d) of this
13 section.

15 (f) A hearing under this section will be conducted
16 pursuant to the Wyoming Administrative Procedure Act.

18 (g) In a hearing under this section a stenographic
19 or electronic record shall be made and filed with the
20 board. A transcript need not be prepared unless review is
21 sought under subsection (k) of this section or the board
22 determines that there is other good cause for its
23 preparation.

Page 39

1 (h) In a hearing under this section a recorded vote
2 of a majority of all members of the board then in office,
3 excluding members disqualified by reason of subsection (d)
4 of this section shall be required to sustain any charge and
5 to impose any penalty with respect thereto.

7 (j) If, after service of a complaint and notice of
8 hearing as provided in subsection (a) of this section, the
9 respondent certificate or permit holder fails to appear at
10 the hearing, the board may proceed to hear evidence against
11 the certificate or permit holder and may enter an order as
12 it deems warranted by the evidence, which order shall be
13 final unless the certificate or permit holder petitions for
14 review under subsection (k) of this section. Provided,
15 however, that within thirty (30) days from the date of any
16 order and upon a showing of good cause for the certificate
17 or permit holder's failure to appear and defend, the board
18 may set aside the order and schedule a new hearing on the
19 complaint to be conducted in accordance with applicable
20 provisions of this section and the Wyoming Administrative
21 Procedure Act.

23 (k) Any person or firm adversely affected by any
24 order of the board entered after a hearing under this

Page 40

1 section may obtain review thereof by filing a written
2 petition for review in the district court of Laramie
3 county, within thirty (30) days after the entry of the
4 order. The procedures for review and the scope of the
5 review shall be as specified in the Wyoming Administrative
6 Procedure Act.

8 (m) In any case where the board renders a decision
9 imposing discipline against a certificate or permit holder
10 under this section and W.S. 33-3-308, the board shall
11 examine its records to determine whether the certificate or
12 permit holder holds a certificate or a permit in any other
13 state; and if so, the board shall notify the board of
14 accountancy of the other state of its decision, by mail,
15 within forty-five (45) days of rendering the decision. The
16 board may also furnish information relating to proceedings
17 resulting in disciplinary action to others as outlined in
18 board rules. Where a petition for review has been filed
19 pursuant to W.S. 33-3-310(k), the notification and
20 furnishing of information provided for in this section
21 shall await the resolution of the review and if resolution
22 is in favor of the certificate or permit holder, no
23 notification or furnishing of information shall be made.

Page 41

1 (n) Upon receipt from the department of family
2 services of a certified copy of an order from a court to
3 withhold, suspend or otherwise restrict a certificate or
4 permit issued by the board, the board shall notify the
5 party named in the court order of the withholding,
6 suspension or restriction of the certificate or permit in
7 accordance with the terms of the court order. No appeal
8 under the Wyoming Administrative Procedure Act shall be
9 allowed for a certificate or permit withheld, suspended or
10 restricted under this subsection.

12 33-3-311. Reinstatement.

14 (a) In any case where the board has suspended or
15 revoked a certificate or a permit or refused to renew a
16 certificate or permit the board may, upon application in
17 writing by the person or firm affected and for good cause
18 shown, modify the suspension or reissue the certificate or
19 permit.

21 (b) The board shall by rule specify the manner in
22 which applications shall be made, the times within which
23 they shall be made and the circumstances in which hearings
24 will be held thereon.

Page 42

2 (c) Before reissuing or terminating the suspension
3 of, a certificate or permit under this section, and as a
4 condition thereto, the board may require the applicant
5 therefor to show successful completion of specified
6 continuing professional education; and the board may make
7 the reinstatement of a certificate or permit conditional
8 and subject to satisfactory completion of a peer review
9 conducted in the fashion as the board may specify.

11 (d) If a certificate or permit is suspended or
12 restricted under W.S. 33-3-310(n), the certificate or
13 permit may be reissued without a hearing if the department
14 of family services provides notice that the applicant has
15 complied with the terms of the court order that resulted in
16 the suspension or restriction of the certificate or permit
17 issued under this act.

19 33-3-312. Unlawful acts.

21 (a) Only certificate or permit holders may issue a
22 report on financial statements of any person, firm,
23 organization or governmental unit or offer to render or
24 render any attest or compilation service, as defined in

Page 43

1 this act. This restriction does not prohibit any act of a
2 public official or public employee in the performance of
3 that noncertificate holders duties; or prohibit the
4 performance by any person of other services involving the
5 use of accounting skills, including the preparation of tax
6 returns, management advisory services and the preparation
7 of financial statements without the issuance of reports
8 thereon. Noncertificate or permit holders may prepare
9 financial statements and issue nonattest transmittals or
10 information thereon which do not purport to be in
11 compliance with Statements on Standards for Accounting and
12 Review Services (SSARS).

14 (b) Certificate or permit holders performing attest
15 or compilation services shall provide those services in
16 accordance with professional standards.

18 (c) No person not holding a valid certificate shall
19 use or assume the title "certified public accountant," the
20 abbreviation "CPA" or any other title, designation, words,
21 letters, abbreviation, sign, card or device tending to
22 indicate that the person is a certified public accountant.

Page 44

1 (d) No firm shall provide attest services or assume
2 or use the title "certified public accountants" or the
3 abbreviation "CPAs" or any other title, designation, words,
4 letters, abbreviation, sign, card or device tending to
5 indicate that the firm is a CPA firm unless:

7 (i) The firm holds a valid permit issued under
8 W.S. 33-3-306; and

10 (ii) Ownership of the firm is in accord with
11 this act and rules promulgated by the board.

13 (e) No person or firm not holding a valid certificate
14 or permit issued under W.S. 33-3-305 or 33-3-306 shall
15 assume or use the title "certified accountant," "chartered
16 accountant," "enrolled accountant," "licensed accountant,"
17 "registered accountant," "accredited accountant" or any
18 other title or designation which reasonably could be
19 confused with the title "certified public accountant" or
20 use any of the abbreviations "CA," "LA," "RA," "AA" or
21 similar abbreviation which reasonably could be confused
22 with the abbreviation "ACPA". The title "enrolled agent"
23 or "EA" may only be used by individuals so designated by
24 the Internal Revenue Service. This section shall not

Page 45

1 prohibit the use of the term "public accountant" or the
2 initials "APA".

4 (f) Noncertificate or permit holders may not use
5 language in any statement relating to the financial affairs
6 of a person or entity which is conventionally used by
7 certificate or permit holders in reports on financial
8 statements. Noncertificate or permit holders may use the
9 following safe harbor language:

11 (i) For compilations: "I (we) have compiled the
12 accompanying (financial statements) of (name of entity) as
13 of (time period) for the (period) then ended. This
14 presentation is limited to preparing in the form of
15 financial statement information that is the representation
16 of management (owners)"; or

18 (ii) "I (we) have not audited or reviewed the
19 accompanying financial statements and accordingly do not
20 express an opinion or any other form of assurance on them";

22 (iii) For reviews: "I (we) have reviewed the
23 accompanying (financial statements) of (name of entity) as
24 of (time period) for the period then ended. These

Page 46

1 financial statements (information) are (is) the
2 responsibility of company's management"; or

4 (iv) "I (we) have not audited the accompanying
5 financial statements and accordingly do not express an
6 opinion or any other form of assurance on them".

8 (g) No person holding a certificate or firm holding a
9 permit under this act shall use a professional or firm name
10 or designation that is misleading about the legal form of
11 the firm or about the persons who are partners, officers,
12 members, managers or shareholders of the firm or about any
13 other matter, provided, however, that names of one (1) or
14 more former partners, members, managers or shareholders may
15 be included in the name of a firm or its successor.

17 (h) None of the foregoing provisions of this section
18 shall have any application to a person or firm holding a
19 certification, designation, degree or license granted in a
20 foreign country entitling the holder thereof to engage in
21 the practice of public accountancy or its equivalent in the
22 country, whose activities in this state are limited to the
23 provision of professional services to persons or firms who
24 are residents of, governments of or business entities of

Page 47

1 the country in which the person holds the entitlement, who
2 performs no attest or compilation services as defined and
3 who issues no reports with respect to the financial
4 statements of any other persons, firms or governmental
5 units in this state and who does not use in this state any
6 title or designation other than the one under which the
7 person practices in that country, followed by a translation
8 of the title or designation into the English language, if
9 it is in a different language and by the name of the
10 country.

12 (j) No holder of a certificate issued under W.S.
13 33-3-305 shall perform attest services in any firm that
14 does not hold a valid permit issued under W.S. 33-3-306.
15 No holder of a certificate issued under W.S. 33-3-305 shall
16 perform any compilation of a financial statement other than
17 through a CPA firm unless the individual undergoes, no less
18 frequently than once every three (3) years, a peer review
19 conducted in the manner as the board shall by rule specify
20 and the peer review shall include verification that the
21 individual has met the experience or competency
22 requirements set out in professional standards for the
23 services.

Page 48

1 (k) A holder of a certificate who performs
2 compilation services for the public other than through a
3 CPA firm shall:

5 (i) Sign compilation reports as a CPA;

7 (ii) Meet experience or competency requirements
8 provided in applicable standards; and

10 (iii) Undergo, no less frequently than once
11 every three (3) years, a peer review conducted in the
12 manner as the board shall by rule specify. And the review
13 shall include verification that the individual has met the
14 experience or competency requirements set out in
15 professional standards for the services.

17 (m) A certificate or permit holder shall not for a
18 commission recommend or refer to a client any product or
19 service or for a commission recommend or refer any product
20 or service to be supplied by a client or receive a
21 commission, when the certificate or permit holder also
22 performs for that client:

24 (i) An audit or review of a financial statement;

Page 49

2 (ii) A compilation of a financial statement when
3 the certificate or permit holder expects, or reasonably
4 might expect, that a third party will use the financial
5 statement and the certificate or permit holder's
6 compilation report does not disclose a lack of
7 independence; or

9 (iii) An examination of prospective financial
10 information.

12 (n) The prohibition in subsection (m) of this section
13 applies during the period in which the certificate or
14 permit holder is engaged to perform any of the services
15 listed in subsection (m) of this section and the period
16 covered by any historical financial statements involved in
17 the listed services.

19 (o) A certificate or permit holder who is not
20 prohibited by this section from performing services for or
21 receiving a commission and who is paid or expects to be
22 paid a commission shall disclose that fact to any person or
23 entity to whom the certificate or permit holder recommends

Page 50

1 or refers a product or service to which the commission
2 relates.

4 (p) Any certificate or permit holder who accepts a
5 referral fee for recommending or referring any service of a
6 certificate or permit holder to any person or entity or who
7 pays a referral fee to obtain a client shall disclose the
8 acceptance or payment to the client.

10 (q) A certificate or permit holder shall not:

12 (i) Perform for a contingent fee any
13 professional services for or receive a fee from a client
14 for whom the certificate or permit holder or the
15 certificate or permit holder's firm performs:

17 (A) An audit or review of a financial
18 statement;

20 (B) A compilation of a financial statement
21 when the certificate or permit holder expects, or
22 reasonably might expect, that a third party will use the
23 financial statement and the certificate or permit holder's

Page 51

1 compilation report does not disclose a lack of
2 independence; or

4 (C) An examination of prospective financial
5 information.

7 (ii) Prepare an original or amended tax return
8 or claim for a tax refund for a contingent fee for any
9 client.

11 (r) The prohibition in subsection (g) of this section
12 applies during the period in which the certificate or
13 permit holder is engaged to perform any of the services in
14 subsection (g) of this section and the period covered by
15 any historical financial statements involved in any listed
16 services.

18 (s) Except as provided in this subsection, a
19 contingent fee is a fee established for the performance of
20 any service pursuant to an arrangement in which no fee will
21 be charged unless a specified finding or result is attained
22 or in which the amount of the fee is otherwise dependent
23 upon the finding or result of the service. Solely for
24 purposes of this section, fees are not regarded as being

Page 52

1 contingent if fixed by courts or other public authorities
2 or, in tax matters, if determined based on the results of
3 judicial proceedings or the findings of governmental
4 agencies. A certificate or permit holder's fees may vary
5 depending, for example, on the complexity of services
6 rendered.

8 33-3-313. Injunctions against unlawful acts.

10 Whenever, as a result of an investigation under W.S.
11 33-3-309 or otherwise, the board believes that any person
12 or firm has engaged, or is about to engage, in any acts or
13 practices which constitute or will constitute a violation
14 of W.S. 33-3-312, the board may make application to the
15 appropriate court for an order enjoining the acts or
16 practices and upon a showing by the board that the person
17 or firm has engaged, or is about to engage, in any acts or
18 practices, an injunction, restraining order or other order
19 as may be appropriate shall be granted by the court.

21 33-3-314. Criminal penalties.

23 (a) Whenever, by reason of an investigation under
24 W.S. 33-3-309 or otherwise, the board has reason to believe

Page 53

1 that any person or firm has knowingly engaged in acts or
2 practices that constitute a violation of W.S. 33-3-312, the
3 board may bring its information to the attention of the
4 attorney general of any state or other appropriate law
5 enforcement officer who may cause appropriate criminal
6 proceedings to be brought thereon.

8 (b) Any person or firm who knowingly violates any
9 provision of W.S. 33-3-312 is guilty of a misdemeanor and
10 upon conviction shall be subject to a fine of not more than
11 two thousand dollars ($2,000.00), imprisonment for not more
12 than one (1) year, or both.

14 33-3-315. Single act evidence of practice.

16 In any action brought under W.S. 33-3-310, 33-3-313 or
17 33-3-314, evidence of the commission of a single act
18 prohibited by this act shall be sufficient to justify a
19 penalty, injunction, restraining order or conviction,
20 respectively without evidence of a general course of
21 conduct.

23 33-3-316. Confidential communications.

Page 54

1 Except by permission of the client for whom a certificate
2 or permit holder performs services or the heirs, successors
3 or personal representatives of the client, a certificate or
4 permit holder under this act shall not voluntarily disclose
5 information communicated to the certificate or permit
6 holder by the client relating to and in connection with
7 services rendered to the client by the certificate or
8 permit holder. The information shall be deemed
9 confidential, provided, however, that nothing herein shall
10 be construed as prohibiting the disclosure of information
11 required to be disclosed by the standards of the public
12 accounting profession in reporting on the examination of
13 financial statements or as prohibiting disclosures in court
14 proceedings, in investigations or proceedings under W.S.
15 33-3-309 or 33-3-310, in ethical investigations conducted
16 by private professional organizations, in the course of
17 peer reviews or to other persons active in the organization
18 performing services for that client on a need to know basis
19 or to persons in the entity who need this information for
20 the sole purpose of assuring quality control.

22 33-3-317. Privity of contract.

Page 55

1 (a) This section governs any action based on an act,
2 error or omission occurring on or after July 1, 2001
3 brought against any certificate or permit holder practicing
4 in this state by any person claiming to have been injured
5 as a result of financial statements or other information
6 examined, compiled, reviewed, certified, audited or in the
7 course of an engagement to provide other public accountancy
8 services.

10 (b) No action may be brought under this section
11 unless:

13 (i) The plaintiff:

15 (A) Is the issuer or his successor of the
16 financial statements or other information examined,
17 compiled, reviewed, certified, audited or otherwise
18 reported or opined on by the defendant; and

20 (B) Engaged the defendant certificate or
21 permit holder to examine, compile, review, certify, audit
22 or otherwise report or render an opinion on the financial
23 statements or to provide other public accountancy services;
24 or

Page 56

2 (ii) The defendant certificate or permit holder:

4 (A) Was aware at the time the engagement
5 was undertaken with the certificate or permit holder's
6 client that the financial statements or other information
7 were to be made available for use in connection with a
8 specified transaction by the plaintiff and the transaction
9 was specifically identified to the defendant; and

11 (B) Was aware that the plaintiff intended
12 to rely upon the financial statements or other information
13 in connection with the specified transaction.

15 (c) In order to be entitled to the limitation on
16 liability contained in this section, a certificate or
17 permit holder shall:

19 (i) Identify the purpose of the document and the
20 persons or entities that are entitled to receive and rely
21 upon the financial statement or other information examined,
22 compiled, reviewed, certified, audited or otherwise
23 reported or opined on by the certificate or permit holder

Page 57

1 in the document prepared by the certificate or permit
2 holder; and

4 (ii) Include thereon a statement in a prominent
5 place that advises users of the document that the liability
6 of the certificate or permit holder to third parties who
7 use the document may be limited pursuant to this section.

9 33-3-318. Uniform statute of limitations.

11 (a) This section applies to all causes of action of
12 the type specified herein filed on or after the effective
13 date.

15 (b) This section governs any action based on
16 negligence or breach of contract brought against any
17 certificate or permit holder practicing in this state by
18 any person or entity claiming to have been injured as a
19 result of financial statements or other information
20 examined, compiled, reviewed, certified, audited or
21 otherwise reported or opined on by the defendant
22 certificate or permit holder as a result of an engagement
23 to provide services.

Page 58

1 (c) No action covered by this section may be brought
2 unless the suit is commenced on or before the earlier of:

4 (i) One (1) year from the date the alleged act,
5 omission or neglect is discovered or should have been
6 discovered by the exercise of reasonable diligence;

8 (ii) Two (2) years after completion of the
9 service for which the suit is brought has been performed;
10 or

12 (iii) Two (2) years after the date of the
13 initial issuance of the accountant's report on the
14 financial statements or other information.

16 33-3-319. Proportionate liability.

18 (a) This section applies to all causes of action of
19 the type specified herein filed on or after the effective
20 date.

22 (b) This section governs any claim for money damages
23 brought against any certificate or permit holder; any CPA
24 firm practicing in this state; or any employee or principal

Page 59

1 of the firm by any person or entity claiming to have been
2 injured by the defendant certificate or permit holder or
3 other person or entity.

5 (c) No judgment for money damages may be entered
6 against any certificate or permit holder, firm, employee or
7 principal described in subsection (b) of this section in an
8 action covered by this section except in accordance with
9 the following:

11 (i) If the party seeking a judgment for damages
12 against the certificate or permit holder proves that the
13 certificate or permit holder acted with the deliberate
14 intent to deceive, manipulate or defraud for the
15 certificate or permit holder's own direct pecuniary
16 benefit, the liability of the certificate or permit holder
17 shall be determined according to the principles that
18 generally apply to the action;

20 (ii) If the certificate or permit holder is not
21 proven to have acted with the deliberate intent to deceive,
22 manipulate or defraud for the accountant's own direct
23 pecuniary benefit, the amount of the accountant's liability
24 in damages shall be determined as follows:

Page 60

2 (A) The trier of fact shall determine the
3 percentage of responsibility of the plaintiff, of each of
4 the defendants and of each of the other persons or entities
5 alleged by the parties to have caused or contributed to the
6 harm alleged by the plaintiff. In determining the
7 percentages of responsibility, the trier of fact shall
8 consider both the nature of the conduct of each person and
9 the nature and extent of the causal relationship between
10 that conduct and the damage claimed by the plaintiff;

12 (B) The trier of fact shall next determine
13 the total amount of damage suffered by the plaintiff caused
14 in whole or in part by the plaintiff, the defendants and
15 other persons alleged to have caused or contributed to the
16 damage;

18 (C) The trier of fact shall then multiply
19 the percentage of responsibility of the certificate or
20 permit holder (determined under (A)) by the total amount of
21 damages (determined under (B)) and shall enter a judgment
22 or verdict against the certificate or permit holder in an
23 amount no greater than the product of those two (2)
24 factors;

Page 61

2 (D) In no event shall the damages awarded
3 against or paid by a certificate or permit holder exceed
4 the amount determined under subparagraph (C) of this
5 paragraph. The certificate or permit holder shall not be
6 jointly liable on any judgment entered against any other
7 party to the action; and

9 (E) Except where a contractual relationship
10 permits, no defendant shall have a right to recover from a
11 certificate or permit holder any portion of the percentage
12 of damages assessed against any other defendant.

14 Section 2. W.S. 33-3-101 through 33-3-132 and
15 33-3-201 are repealed.

17 Section 3. Nothing contained in this act shall
18 invalidate or affect any action taken or any proceeding
19 instituted under any law in effect prior to the effective
20 date hereof.

22 Section 4. This act is effective July 1, 2001.

24 (END)

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