Session of 1999
HOUSE BILL No. 2354
By Committee on Business, Commerce and Labor
9 AN ACT concerning public accountancy; relating to the regulation of
10 certified public accounts; amending K.S.A. 1998 Supp. 1-202, 1-316
11 and 1-319 and repealing the existing sections.
13 Be it enacted by the Legislature of the State of Kansas:
14 New Section 1. As used in this act:
15 (a) "Accounting services" means performing attest and nonattest
17 (b) "Attest services" means the following financial services:
18 (1) Any audit or other engagement to be performed in accordance
19 with the statements on auditing standards as promulgated by the Amer-
20 ican institute of certified public accountants;
21 (2) any review of a financial statement or compilation of a financial
22 statement to be performed in accordance with the statements on stan-
23 dards for accounting and review services as promulgated by the American
24 institute of certified public accountants;
25 (3) any examination of prospective financial information to be per-
26 formed in accordance with the statements on standards for attestation
27 engagements as promulgated by the American institute of certified public
29 (c) "Nonattest services" means the following financial services:
30 (1) Preparation of tax returns and providing advice on tax matters;
31 (2) management advisory, consulting and litigation support services;
32 (3) financial planning; and
33 (4) any other financial service not included in the statements on au-
34 diting standards, the statements on standards for accounting and review
35 services, the statements on standards for attestation engagements as de-
36 veloped by the American institute of certified public accountants, or as
37 defined by the board.
38 (d) "Board" means the board of accountancy.
39 (e) "Firm" means a sole proprietorship, corporation, partnership or
40 any other form of business entity organized for the purpose of practicing
41 public accountancy and that is practicing public accountancy in this state.
42 (f) "Practice or practicing public accountancy" or "the practice of
43 public accountancy" means performing or offering to perform accounting
HB 2354 2
1 services for the public while using the designation "certified public ac-
2 countant" or "C.P.A." in conjunction with such services. The practice of
3 public accountancy by persons not required to hold a Kansas permit to
4 practice, including public accountants, is not prohibited or regulated by
5 the provisions of this act.
6 New Sec. 2. (a) A person who has been granted a permit to practice
7 public accountancy by the board may use the designation "certified public
8 accountant" or "C.P.A."
9 (b) A person who has been granted a Kansas certificate but who does
10 not hold a permit may use the designation, "certified public accountant"
11 or "C.P.A." as a credential evidencing successful completion of the C.P.A.
12 examination or in conjunction with such person's employment in industry,
13 government or education, but may not use the designation in conjunction
14 with performing or offering to perform accounting services for the public.
15 Sec. 3. K.S.A. 1998 Supp. 1-202 is hereby amended to read as fol-
16 lows: 1-202. (a) Each year the board shall meet and organize by electing
chairperson chair and a vice-chairperson vice-chair from its member-
18 ship. The board shall appoint a secretary, who need not be a member of
19 the board.
The board may adopt such rules and regulations as it may
deem necessary for the proper administration of its duties and the car-
rying out of the purposes of this act. The board shall meet at the call of
22 the chairperson but not less than twice each year and shall have a seal.
23 The chairperson and the secretary of the board shall have the power to
24 administer oaths.
25 (b) The board shall keep records of all proceedings and actions by
26 and before it. In any proceedings in court, civil or criminal, arising out of
27 or founded upon any provisions of this act, copies of such records which
28 are certified as correct by the secretary of the board under the seal of the
29 board shall be admissible in evidence and shall be prima facie evidence
30 of the correctness of the contents thereof.
31 (c) The board, from time to time, shall: (1) Adopt
, amend, and revoke
32 and amend any rules and regulations necessary to regulate the practice
33 of public accountancy, including rules of professional conduct;
34 (2) provide for
certification and registration and issue permits to prac-
tice in accordance with the provisions of this act the issuance of certifi-
36 cates, permits to practice and firm registrations;
37 (3) keep accounts of its receipts and disbursements;
38 (4) keep a register of Kansas certificates issued by the board;
39 (5) revoke, suspend and reinstate certificates, registrations and
41 (6) initiate proceedings
and, hold hearings and do all things necessary
carry out the intent of this act regulate the practice of public
HB 2354 3
1 (d) A majority of the board shall constitute a quorum for the trans-
2 action of any business at any meeting of the board.
3 Sec. 4. K.S.A. 1998 Supp. 1-316 is hereby amended to read as fol-
4 lows: 1-316. (a) It is unlawful for any person, except the holder of a valid
5 permit issued under K.S.A. 1-310 and amendments thereto, or any firm,
6 unless it is registered under the provisions of K.S.A. 1-308, and amend-
7 ments thereto, to
affix or cause to be affixed the signature of any such
person or firm to any accounting or financial statement, to any opinion
on, report on or certificate to any accounting or financial statement with
any word indicating that such person or firm, or its members, officers or
employees, are certified public accountants practice public accountancy.
12 (b) It is unlawful for any person, except the holder of a valid Kansas
13 certificate, to use or assume the title "certified public accountant" or to
14 use the abbreviation "C.P.A." or any other title, designation, words, let-
15 ters, abbreviation, sign, card, or device likely to be confused with "certi-
16 fied public accountant."
17 (c) Any person who violates any provision of this section shall be guilty
18 of a misdemeanor, and upon conviction thereof, shall be subject to a fine
19 of not more than $500, or to imprisonment for not more than one year,
20 or by both such fine and imprisonment.
21 Sec. 5. K.S.A. 1998 Supp. 1-319 is hereby amended to read as fol-
22 lows: 1-319. (a)
The display or uttering by a person of a card, or other
printed, engraved, or written instrument or device, bearing a person's
name in conjunction with the words "certified public accountant" or any
abbreviation thereof shall be prima facie evidence in any action for an
injunction brought under K.S.A. 1-318, and amendments thereto, that
the person whose name is so displayed caused or procured the display or
uttering of such card, or other printed, engraved, or written instrument
or device, and that such person is holding such person out to be the holder
of a Kansas certificate or the holder of a permit to practice issued under
K.S.A. 1-310 and amendments thereto. Using the designation "certified
32 public accountant" or "C.P.A." on any printed material or in any media
33 format shall be prima facie evidence in any action for an injunction
34 brought under K.S.A. 1-318 and amendments thereto, that the person is
35 practicing public accountancy in violation of K.S.A. 1-316 and amend-
36 ments thereto except that this section shall not apply to a person who has
37 been granted a Kansas certificate but who does not hold a permit if the
38 person is using the designation as a credential evidencing successful com-
39 pletion of the C.P.A. examination or in conjunction with such person's
40 employment in industry, government or education and is not using the
41 designation in conjunction with performing or offering to perform ac-
42 counting services for the public.
43 (b) In any action under K.S.A. 1-318, and amendments thereto, evi-
HB 2354 4
1 dence of the commission of a single act prohibited by this act or the act
2 of which this section is amendatory shall be sufficient to justify an in-
3 junction without evidence of a general course of conduct.
4 Sec. 6. K.S.A. 1998 Supp. 1-202, 1-316 and 1-319 are hereby
6 Sec. 7. This act shall take effect and be in force from and after its
7 publication in the Kansas register.