In this chapter, the following terms have the meanings indicated: “Client” means the person that retains a licensee for the performance of professional services. Contingent Fee. “Contingent fee” means a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of the service. “Contingent fee” does not apply to professional services: Involving tax matters, if the fee is determined based on the results of judicial proceedings or the findings of governmental agencies; and For which the fees are to be fixed by the courts or other public authorities. “Financial statements” means statements and related footnotes that purport to show actual or anticipated financial position which relates to a point in time or results of operations, cash flow, or changes in financial position which relate to a period of time, on the basis of generally accepted accounting principles or another comprehensive basis of accounting. The term includes specific elements, accounts, or items of the financial statements, but does not include incidental financial data included in management advisory services reports to support recommendations to a client, nor does it include tax returns and supporting schedules. “Management course” means a course in business-related subjects of 3 semester hours taken to fulfill the requirement for a major in accounting and includes the study of: Controlling; Decision making; Leadership; Organization; and Planning. Other Compensation. “Other compensation” means compensation received by a licensee who is engaged in the practice of certified public accountancy other than for the performance of professional services, including compensation for the sale of products other than the work product of the licensee, or for referral of products or services of others. “Other compensation” does not include gifts valued at $100 or less in a single calendar year. “Practice of certified public accountancy” means to perform any of the following accountancy services: Conducting an audit or an examination of financial statements; or Providing a written certificate or opinion as to the correctness of the information or the fairness of the presentation of the information in any financial statement, schedule, report or exhibit. Practice of Public Accountancy. “Practice of public accountancy” means the offering to perform or the performance by a person while holding out to the public as a licensee, for a client or potential client: Services involving the use of accounting or auditing skills, including the issuance of reports on financial statements; One or more types of management advisory services, consulting, or financial planning services; or The preparation of tax returns or the furnishing of advice on tax matters. “Practice of public accountancy” includes the practice of certified public accountancy. “Professional services” means any services performed or offered to be performed by a licensed certified public accountant or permit holder for a client in the course of the practice of public accountancy. “U.S. business law” means a course in accounting education of 3 or more semester hours taken to fulfill the requirement for a major in accounting, and includes the analysis and study of the law regarding: Agency; Contracts; Employment; Insurance; Negotiable instruments; Personal or real property; and Sales. Written Certificate or Opinion as to the Correctness of the Financial Statement or as to the Fairness of the Presentation. “Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation” means an opinion, report, or other form of language that states or implies assurance as to the reliability of any financial statements, and that also includes or is accompanied by any statement or implication that the person or firm issuing the written certificate or opinion has special knowledge or competence in accounting or auditing. This statement or implication of special knowledge or competence may arise from use by the issuer of the report of names or titles indicating that the person is a certified public accountant or auditor, or may arise from the language of the certificate or opinion itself. “Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation” includes any: Form of language which expressly disclaims an opinion when that form of language is conventionally understood to imply any positive assurance as to the reliability of the financial statements referred to; and Other form of language that is conventionally understood to imply positive assurance or special knowledge or competence. “Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation” may include special competence on the part of the person or firm issuing the language in this subsection. The Board shall hold an annual meeting in July of each year or at such other time as the members of the Board may vote upon, for the purpose of electing officers. Monthly meetings may be held on dates mutually convenient to the members of the Board. Special meetings shall be held, after reasonable notice, at the call of the Chairman or of any two Board members. Notice of all meetings and hearings shall be published in the Maryland Register. The Chairman shall preside at all meetings and shall perform such duties as the Board may direct. At any meeting at which the Chairman is absent, the Secretary-Treasurer shall act in the Chairman's place. An applicant who has passed all sections of the Uniform CPA Examination in another state is entitled to receive a license to practice certified public accountancy from the Board without retaking the examination in Maryland if the applicant meets all of the following qualifications: The applicant either: Under the paper and pencil testing format, sat for all sections of the initial examination and all unsuccessfully completed sections of subsequent examination; or Under the computerized testing format, passed all sections of the examination within 18 months from the date the first section was passed; The applicant is of good moral character; The applicant is 18 years old; The applicant has never been licensed as a certified public accountant in any state; and The applicant either: Met the requirements of education and experience as specified in Business Occupations and Professions Article, Title 2, Subtitle 3, Annotated Code of Maryland, at the time of initially applying to take the examination in the other state; or Meets the current requirements of education and experience as specified in Business Occupations and Professions Article, Title 2, Subtitle 3, Annotated Code of Maryland. An applicant who has met the requirements of §A(2)—(4) of this regulation and, under the paper and pencil format, sat for all sections of the initial examination and all unsuccessfully completed sections of subsequent examinations, and has passed two or more sections in another state or territory, but has not passed all sections of the examination, shall be given conditional credit for the sections passed, in accordance with Regulation .05 of this chapter. An applicant who has met the requirements of §A(2) — (4) of this regulation but, under the computerized testing format, has not passed all sections of the examination, shall be given conditional credit for the sections passed in accordance with Regulation .05 of this chapter. An applicant who passed the examination more than 4 years prior to applying for transfer of grades must complete 80 hours of continuing education in compliance with COMAR 09.24.02 before receiving a license to practice certified public accountancy. Independence. A licensee who is performing an engagement in which the licensee is to issue a written certificate or opinion, other than one in which a lack of independence is disclosed, shall be independent with respect to the client in fact and appearance. Independence is considered to be impaired if, for example, during the period of a licensee's professional engagement, or at the time of issuing the written certificate or opinion, the licensee: Had or was committed to acquire any direct or material indirect financial interest in the client; Was a trustee of any trust, or personal representative of any estate, if this trust or estate had or was committed to acquire any direct or material indirect financial interest in the client; Had any joint, closely held business investment with the client or any officer, director, or principal stockholder of the client which was material in relation to the net worth of either the licensee or the client; or Had any loan to or from the client or any officer, director, or principal stockholder of the client other than loans of the following kinds made by a financial institution under normal lending procedures, terms, and requirements: Loans obtained by the licensee which are not material in relation to the net worth of the licensee, Home mortgages, and Other secured loans, except those secured solely by a guarantee of the licensee. Independence is also considered to be impaired if, during the period covered by the financial statements, during the period of the professional engagement, or at the time of issuing the written certificate or opinion, the licensee: Was connected with the client as a promoter, underwriter, or voting trustee, a director, or officer or in any capacity equivalent to that of a member of management or of an employee; Was a trustee for any pension or profit-sharing trust of the client; or Received other compensation from a third party, or had a commitment to receive other compensation from the client or a third party, with respect to services or products procured or to be procured by the client. The examples in §A(2) of this regulation are not intended to be all-inclusive. A licensee may not in the performance of professional services knowingly misrepresent facts, or subordinate judgement to others. In tax practice, however, a licensee may resolve doubt in favor of the client as long as there is reasonable support for the licensee's position. A licensee may not, during the period in which the licensee is engaged to perform any of the following services, and during the period covered by any historical financial statements involved in the listed services: Perform for a contingent fee any professional services for, or receive a contingent fee from a client for whom the licensee or the licensee's firm performs: An audit or review of a financial statement; A compilation of a financial statement, when the licensee expects, or reasonably might expect, that a third party will use the financial statement and the licensee's compilation report does not disclose a lack of independence; or An examination of prospective financial information; or Prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client. A licensee may not concurrently engage in the practice of certified public accountancy and in any other business or occupation which impairs independence or objectivity in rendering professional services. With respect to other compensation: A licensee who receives or agrees to receive other compensation with respect to services or products recommended, referred, or sold by the licensee to another person shall make, not later than the making of the recommendation, referral, or sale, the following disclosures to the other person in writing: If the other person is a client, the nature, source, and amount of the other compensation, or If the other person is not a client, the nature and source only of any other compensation received from a third party; The disclosure required by this regulation shall be made regardless of the amount, as defined by Regulation .01A(4) of this chapter, of the other compensation involved; This regulation does not apply to payments received from the sale of all or a material part of an accounting practice, or to retirement payments to persons formerly engaged in the practice of public accountancy; Compliance with the requirements of this section does not constitute a defense to a charge of impaired independence under §A(3)(c) of this regulation. A licensee may not pay a commission to a third party to obtain a client unless, before being engaged by the client, the licensee discloses to the client in writing the fact and the amount of the commission. This regulation does not apply to payments made by a licensee for the purchase of all or a material part of an accounting practice, or to retirement payments to persons formerly engaged in the practice of public accountancy. Competence and Technical Standards. A licensee may not undertake any engagement for the performance of professional services which the licensee cannot reasonably expect to complete with due professional competence, including compliance, where applicable, with §G(2)—(4) of this regulation. A licensee may not permit the licensee's name to be associated with financial statements in such a manner as to imply that the licensee is acting as an independent certified public accountant with respect to these financial statements unless the licensee has complied with applicable generally accepted auditing standards, as such standards may be amended, modified, issued, or reissued. Statements on auditing standards issued, reissued, amended, or modified, from time to time, by the American Institute of Certified Public Accountants, and other pronouncements having similar generally recognized authority, are considered to be interpretations of generally accepted auditing standards, and departures therefrom shall be justified by those who do not follow them. A licensee may not issue a report asserting that financial statements are presented in conformity with generally accepted at that time accounting principles if these financial statements contain any departure from those accounting principles which have a material effect on the financial statements taken as a whole, unless the licensee can demonstrate that by reason of unusual circumstances the financial statements would otherwise have been misleading. In this case, the licensee's report shall describe the departure, the approximate effects thereof, if practicable, and the reasons why compliance with the principle would result in a misleading statement. For purposes of this regulation, generally accepted accounting principles are considered to be defined by pronouncements issued, reissued, amended, or modified, from time to time, by the Financial Accounting Standards Board and its predecessor and successor entities and similar pronouncements issued by other entities having similar generally recognized authority. A licensee in the performance of accounting and review services or management advisory services, consulting, financial planning, or tax services shall conform to the professional standards applicable to these services at the time the services are performed. Responsibilities to Clients. Except by permission of the client or the heirs, successors, or personal representatives of the client, a licensee or any partner, officer, shareholder, or employee of a licensee may not voluntarily disclose information communicated by the client relating to and in connection with professional services rendered to the client by the licensee. This regulation does not: Relieve a licensee of any obligations under §G of this regulation; Affect in any way a licensee's obligation to comply with a validly issued subpoena or summons in a criminal or bankruptcy case; Prohibit disclosures in the course of a quality review of a licensee's professional services; or Preclude a licensee from responding to any inquiry made by the Board or any investigative or disciplinary body established by law or formally recognized by the Board. Members and agents of the Board and professional practice reviewers may not disclose any client information which comes to their attention from licensees in disciplinary proceedings or otherwise in carrying out their responsibilities, except that they may furnish this information to an investigative or disciplinary body of the kind referred to above. A licensee shall furnish to the licensee's client or former client, upon request and reasonable notice made within a reasonable time after original issuance of the document in question: A copy of a tax return of the client; A copy of any report, or other document, issued by the licensee to or for this client; Any accounting or other records belonging to, or obtained from or on behalf of, the client which the licensee removed from the client's premises or received from the client's account, but the licensee may make and retain copies of these documents when they form the basis for work done by the licensee; and A copy of the licensee's working papers, to the extent that these working papers include records which would ordinarily constitute part of the client's records and are not otherwise available to the client. Other Responsibilities and Practices. A licensee may not commit any act that reflects adversely on the licensee's fitness to engage in the practice of public accountancy. A licensee may not permit others to carry out on the licensee's behalf, either with or without compensation, acts which, if carried out by the licensee, would place the licensee in violation of the Code of Professional Conduct. A licensee may practice public accountancy only in a proprietorship, a partnership, or a professional corporation, organized in accordance with Business Occupations and Professions Article, Title 2, Annotated Code of Maryland. A licensee may not engage in the practice of public accountancy using a professional or firm name or designation which is misleading in any way, about the legal form of the firm, or about those who are partners, members, directors, or shareholders of the firm, or about any other matter. However, names of one or more former partners, members, directors, or shareholders may be included in the name of a firm or its successor, with the written consent of the former partner, member, director, or shareholder. A partner, member, director, or shareholder surviving the death of all other partners, members, directors, or shareholders may continue to practice under a firm name for 1 year after becoming a sole practitioner. An accounting firm may not use in its name terms such as “Group”, “and Company”, “and Associates”, or similar terms which imply the presence in the firm of more licensees than those identified by name in the firm name unless the number of licensees associated with the firm, whether as partners, shareholders, members, directors, or full-time employees, exceeds the number of licensees named in the firm name. Failure to Respond. If an applicant or licensee receives from the Board a written communication requesting a response, the applicant or licensee shall respond in writing within 30 days of the date of the mailing. The Board shall send a written communication by first-class mail to the last address furnished to the Board by the applicant or licensee. It is the responsibility of the applicant or licensee to notify the Board in writing if there has been a change in the applicant’s or licensee’s address. Failure to respond as required by the regulation may be considered by the Board to be a violation of Business Occupations and Professions Article, §2-315(a)(1)(xii), Annotated Code of Maryland. Advertising and Solicitation. A licensee may not use or participate in the use of any form of communication, written or oral, having reference to the licensee's professional services, which contains a false, fraudulent, misleading, deceptive, or unfair statement or claim. A licensee may not solicit clients by the use of coercion, duress, compulsion, intimidation, threats, overreaching, or vexatious or harassing conduct. A false, fraudulent, misleading, deceptive, or unfair statement or claim includes but is not limited to a statement or claim which: Contains a misrepresentation of fact; Is likely to mislead or deceive because it fails to make full disclosure of relevant facts; Is intended or likely to create false or unjustified expectations of favorable results; Implies educational or professional attainments or licensing recognition not supported in fact; Represents that professional services can or will be competently performed for a stated fee when this is not the case, or makes representations with respect to fees for professional services that do not disclose all variables that reasonably may be expected to affect the fees that will in fact be charged; or Contains other representations or implications that in reasonable probability will cause those of ordinary prudence to misunderstand or be deceived. A licensee or CPA firm offering or performing public accounting services on an Internet webpage or website shall include the following information on the webpage or website: Name of the licensee or firm; Principal place of business of the licensee or firm; Business phone of the licensee or firm; and The Maryland license or permit number issued by the Board accompanied by the language “Maryland license number” or “Maryland permit number”, as appropriate. A CPA firm webpage or website need not include the individual registration number of each CPA firm member. Requirement to Disclose Conviction or Sanction to Board. A licensee or permit holder shall disclose to the Board that the licensee or permit holder has been: Convicted of a felony under the laws of the United States or any state; Convicted of a misdemeanor under the laws of the United States or any state; or Sanctioned by a unit of federal or state government, or any regulatory entity established by law. The disclosure under §J(1) of this regulation shall be made: In writing; and Within 30 days of the date of the conviction or sanction. The fact that a licensee or permit holder has appealed a conviction or sanction does not relieve the licensee or permit holder of the obligation to comply with §J of this regulation. The regulations set forth in COMAR 09.01.02 shall govern hearings before the Board. In proceedings for suspension or revocation of any license or permit the Board will regard “conviction” under Business Occupations and Professions Article, §3-315(a)(3), Annotated Code of Maryland, to have occurred upon the entering of a guilty verdict or acceptance of a plea of nolo contendere in a court of competent jurisdiction. An applicant for a licensing examination shall pay to the Board the examination fee in an amount or amounts set by one or more entities selected by the Board to develop, administer, or score the examination. Other fees to be charged by the Board are as follows: Original examination application fee — $67; Application for reciprocity — $75; License fee — $24; Renewal fee — $63; Application for inactive status — $31; Renewal for inactive status — $31; Reinstatement for inactive status — $63; Reactivation from inactive status — $63; Reinstatement of expired license — $126; Firm application fee — $75; Firm permit fee — $75; Firm renewal fee — $151; Firm reinstatement fee — $303; Transfer of grades application — $75; Duplicate license certificate — $56; Verification fee (letter of good standing) — $25. A compilation does not constitute the practice of certified public accountancy if the compilation report: Includes the statement “The preparer of this report has not undergone and is not required to undergo peer review”. Does not reference the Statements on Standards for Accounting and Review Services issued by the AICPA. Business Occupations and Professions Article, §§2-102, 2-207, 2-209, 2-304—2-307, 2-309, 2-311, 2-313, 2-315, 2-410, and 2-416, Annotated Code of Maryland Effective date: Regulations .01—.03 effective May 2, 1972 Regulations .01—.03 amended effective May 12, 1976 (3:10 Md. R. 529) Regulations .04—.06 adopted effective May 12, 1976 (3:10 Md. R. 529) Chapter revised effective August 25, 1978 (5:17 Md. R. 1329) Regulation .01A amended effective January 26, 1987 (14:2 Md. R. 128); September 19, 1988 (15:19 Md. R. 2246) Regulation .01D amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .02 amended effective June 16, 1986 (13:12 Md. R. 1374) Regulation .02A amended effective October 25, 1982 (9:21 Md. R. 2105) Regulation .02B amended effective April 2, 1990 (17:6 Md. R. 740) Regulation .02D amended effective November 30, 1987 (14:24 Md. R. 2554); September 19, 1988 (15:19 Md. R. 2247) Regulation .03C amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .03D amended effective October 5, 1979 (6:20 Md. R. 1628); December 20, 1982 (9:25 Md. R. 2479); January 26, 1987 (14:2 Md. R. 128); September 19, 1988 (15:19 Md. R. 2246) Regulation .03E amended effective November 3, 1986 (13:22 Md. R. 2397); January 26, 1987 (14:2 Md. R. 128); May 4, 1987 (14:9 Md. R. 1080) Regulation .03G amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .03H amended effective January 26, 1987 (14:2 Md. R. 128); September 19, 1988 (15:19 Md. R. 2247) Regulation .03K adopted effective November 3, 1978 (5:22 Md. R. 1672) Regulation .03K amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .04A and B amended effective April 11, 1983 (10:7 Md. R. 633); January 26, 1987 (14:2 Md. R. 128) Regulation .04D amended effective December 20, 1982 (9:25 Md. R. 2479); January 26, 1987 (14:2 Md. R. 128); March 23, 1987 (14:6 Md. R. 714) Regulation .05A, B, O amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .06A amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .07 adopted effective October 24, 1983 (10:21 Md. R. 1901) Regulation .07 amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .08 adopted effective March 23, 1987 (14:6 Md. R. 714) Regulation .08A, B amended effective November 2, 1987 (14:22 Md. R. 2339) Regulation .08M adopted effective September 19, 1988 (15:19 Md. R. 2247) Chapter revised effective September 28, 1992 (19:19 Md. R. 1705) Regulation .01A amended effective March 20, 2000 (27:5 Md. R. 583); December 31, 2007 (34:26 Md. R. 2261) Regulation .02 amended effective August 28, 1995 (22:17 Md. R. 1317) Regulation .02A, C amended and E, F adopted effective August 15, 1994 (21:16 Md. R. 1383) Regulation .02A, D, F, G amended effective September 9, 1996 (23:18 Md. R. 1316) Regulation .02B, C amended effective June 29, 1998 (25:13 Md. R. 993) Regulation .02 repealed effective March 29, 2004 (31:6 Md. R. 508) Regulation .03A, C amended as an emergency provision effective January 1, 2004 (31:3 Md. R. 206) Regulation .03C amended as an emergency provision effective May 15, 1998 (25:12 Md. R. 943); amended permanently effective October 5, 1998 (25:20 Md. R. 1528) Regulation .03G adopted effective April 14, 2003 (30:7 Md. R. 487) Regulation .03H adopted as an emergency provision effective August 1, 2003 (30:20 Md. R. 1445); emergency status extended at 31:1 Md. R. 28 Regulation .03 repealed effective March 29, 2004 (31:6 Md. R. 508) Regulation .04A amended effective May 9, 1994 (21:9 Md. R. 750) Regulation .04 repealed effective March 29, 2004 (31:6 Md. R. 508) Regulation .05A amended effective July 19, 1993 (20:14 Md. R. 1168); December 28, 1998 (25:26 Md. R. 1921); May 9, 2005 (32:9 Md. R. 848); December 28, 2009 (36:26 Md. R. 1994) Regulation .05B amended effective May 9, 2005 (32:9 Md. R. 848) Regulation .05C adopted effective May 9, 2005 (32:9 Md. R. 848) Regulation .05D adopted effective December 28, 2009 (36:26 Md. R. 1994) Regulation .06C amended effective March 20, 2000 (27:5 Md. R. 583); December 31, 2007 (34:26 Md. R. 2261) Regulation .06G amended effective October 19, 1998 (25:21 Md. R. 1573) Regulation .06I amended effective October 10, 1994 (21:20 Md. R. 1732); December 28, 1998 (25:26 Md. R. 1921); January 28, 2019 (46:2 Md. R. 52) Regulation .06J adopted effective April 28, 2014 (41:8 Md. R. 470) Regulation .07 repealed and new Regulation .07 adopted effective September 29, 2003 (30:19 Md. R. 1331) Regulation .09 amended as an emergency provision effective January 15, 1993 (20:3 Md. R. 255); emergency status expired July 15, 1993 Regulation .09 amended effective July 19, 1993 (20:14 Md. R. 1169) Regulation .09 amended as an emergency provision effective July 1, 1998 (25:18 Md. R. 1431); amended permanently effective December 28, 1998 (25:26 Md. R. 1921) Regulation .09 amended effective September 22, 2008 (35:19 Md. R. 1716); May 17, 2010 (37:10 Md. R. 721); June 1, 2012 (39:9 Md. R. 611); May 1, 2014 (41:8 Md. R. 470); April 10, 2017 (44:7 Md. R. 354) Regulation .09A, B amended as an emergency provision effective January 20, 1995 (22:3 Md. R. 150); amended permanently effective June 5, 1995 (22:11 Md. R. 820) Regulation .09A, B amended effective May 6, 1996 (23:9 Md. R. 670) Regulation .09A, B amended as an emergency provision effective January 10, 2001 (28:3 Md. R. 202); emergency status expired July 10, 2001 (Emergency provisions are temporary and not printed in COMAR) Regulation .09A, B amended as an emergency provision effective June 22, 2001 (28:14 Md. R. 1319); emergency status expired December 15, 2001; amended permanently effective January 7, 2002 (28:26 Md. R. 2272) Regulation .09A, B amended as an emergency provision effective May 1, 2002 (29:12 Md. R. 924); amended permanently effective September 2, 2002 (29:17 Md. R. 1380) Regulation .09A, B amended as an emergency provision effective January 1, 2004 (31:3 Md. R. 206); amended permanently effective March 29, 2004 (31:6 Md. R. 508) Regulation .09B amended effective July 1, 2005 (32:11 Md. R. 982) Regulation .09B amended as an emergency provision effective August 14, 2006 (33:16 Md. R. 1362); amended permanently effective October 1, 2006 (33:19 Md. R. 1559) Regulation .09B amended effective August 16, 2007 (34:16 Md. R. 1431); August 14, 2008 (35:16 Md. R. 1391); June 10, 2024 (51:11 Md. R. 580) Regulation .09H adopted as an emergency provision effective November 18, 1994 (21:25 Md. R. 2093); adopted permanently effective April 24, 1995 (22:8 Md. R. 595) Regulation .09O, P adopted effective April 24, 1995 (22:8 Md. R. 595) Regulation .09P repealed effective October 10, 2016 (43:20 Md. R. 1109) Regulation .10 adopted effective June 1, 2012 (39:9 Md. R. 611) Annotation: COMAR 09.24.01.01A(5) and .04B(2) cited in Attorney General Opinion No. 81-010 (March 4, 1981), which clarified the definition of the term “audit”. These regulations may be cited and referred to as the “Accountancy Continuing Education Regulations”. The continuing education requirement applies to all persons licensed under Business Occupations and Professions Article, Annotated Code of Maryland, to practice certified public accountancy in this State. The requirement does not apply to those licensees who have been placed on inactive status. The public interest requires that certified public accountants provide competent service in all areas of their practice. The State legislature has determined that it is in the public interest to require certified public accountants employed in or engaged in public accounting to comply with the continuing education requirements as a prerequisite to the renewal of a license. In this chapter, the following terms have the meanings indicated. Terms Defined. “Application date” means: The date and time an online license application is electronically submitted to the Board; The date a mailed, paper license application is postmarked by the U.S. Postal Service; or The date a paper license application otherwise delivered is stamped by the Board. “Carried forward” means eligible to be counted towards the continuing education requirement for the following 2-year licensing term. “Certificate of attendance” means a document issued and signed by the instructor, or other qualified program representative, that: Certifies an individual’s attendance at a continuing education program; and Includes the following: The name of the attendee; The title of the program; The subject matter presented; The method by which the subject matter was presented; The number of credit hours earned by the attendee; The name of the entity sponsoring the program; and The date of the program. “Certificate of completion” means a document issued and signed by a qualified program representative that: Certifies that an individual has successfully completed the learning objectives of the continuing education program; and Includes the following: The name of the attendee; The title of the program; The subject matter presented; The method by which the subject matter was presented; The number of credit hours earned by the attendee; The name of the entity sponsoring the program; The date of the program; and The registry number of the program sponsor. “Continuing education publication” means information pertaining to the practice of public accountancy prepared and issued for distribution or sale to the public for the purpose of providing continuing education instruction. An applicant for license renewal shall complete, prior to submitting an application, a minimum of 80 credit hours of qualifying continuing education in each 2-year license term. The requirement in §A of this regulation does not apply to the first renewal of a license. Professional Ethics. A minimum of 4 credit hours of the continuing education for each 2-year license term shall be in professional ethics. Credit hours in professional ethics in excess of 4 hours in a 2-year license term may not be carried forward to satisfy this requirement. Credit hours in professional ethics in excess of 4 hours in a 2-year license term may be carried forward to meet the requirement of §A of this regulation. Except as provided in §C of this regulation, qualifying credit hours in excess of the 80 credit hours required for a 2-year license term, up to a maximum of 80 credit hours, may be carried forward to apply to the following 2-year license term. Qualifying credit hours reported in a license renewal application in excess of the 80 credit hour requirement in §A of this regulation may only be carried forward to apply to the following 2-year license term. The Board shall allow a maximum of 80 credit hours of qualifying continuing education earned in the initial license term to be carried forward if the credit hours are properly reported on the first renewal application. The overriding consideration in determining whether a specific program or method qualifies is that it shall be a program or method of learning which contributes directly to the professional competence of an individual after this individual has been licensed to practice certified public accountancy. Group Continuing Education Programs. A group continuing education program will qualify only if it meets §A of this regulation. Types of group continuing education programs would include: Professional development programs of recognized national and state accounting organizations and their chapters; Technical sessions at meetings of recognized national and state accounting organizations and their chapters; Non-credit courses at universities and colleges; In-firm education programs; and Programs offered by other recognized professional or industrial organizations. An individual who reports participation in a qualifying group continuing education program to satisfy the continuing education requirements of this chapter shall provide, upon the Board’s request, the following documentation: A certificate of completion; or A certificate of attendance. University and College Courses. University and college courses taken for academic credit at an institution of higher education that meets the requirements of Business Occupations and Professions Article, §2-303(c), Annotated Code of Maryland, will qualify only if §A of this regulation is met. Credit towards the continuing education requirement will be calculated as follows: 15 hours for each semester hour credit; and 10 hours for each quarter hour credit. An individual who reports completion of a university or college course to satisfy the continuing education requirements of this chapter shall provide, upon the Board’s request, an official transcript that includes the course. Other Programs. A program other than a group program will qualify only if the program meets the requirements of §A of this regulation. An individual who reports participation in a program other than a group continuing education program to satisfy the continuing education requirements of this chapter shall provide, upon the Board’s request, the following documentation: A certificate of completion; or A certificate of attendance. Electronic Self-Study. In order to qualify, an electronic self-study program of 10-minute duration must include: At least one stated learning objective; and Require the participant to correctly answer at least two final assessment questions at the end of the program. Peer Reviews. A peer review shall qualify if conducted in accordance with Business Occupations and Professions Article, Title 2, Subtitle 4A, Annotated Code of Maryland, and COMAR 09.24.06. Calculation of Credit for Peer Reviews. Only an individual in a firm that receives a “passing” peer review report with no deficiencies may receive credit. The peer reviewer shall allocate the credit hours among the engagement personnel in attendance at the exit conference for the peer review. The peer reviewer shall allocate a maximum of: 12 hours for an engagement review; and 16 hours for a system review. Peer review credit hours may not exceed 16 credit hours per individual for any license period. An individual who reports participation in a peer review to satisfy the continuing education requirements of this chapter shall provide, upon the Board’s request, a written certification signed and dated by the peer reviewer indicating the following: The name of the individual receiving credit; The name of the reviewed firm; The permit number of the reviewed firm; The type of peer review performed; and The number of credit hours awarded to the individual. Continuing Education Publications. An individual may receive continuing education credit for authoring or contributing to a continuing education publication that: Meets §A of this regulation; and Has been reviewed prior to publication by a qualified independent party. Credit Hours. The Board shall determine the number of credit hours to be awarded to an individual for authoring or contributing to a continuing education publication based on the time spent by the individual: Performing research associated with the continuing education publication; and Writing the continuing education publication. An individual may be awarded a maximum of 10 credit hours for each continuing education publication. Continuing education publication credit hours may not exceed 40 credit hours per individual for any license period. Documentation. An individual who reports authoring or contributing to a continuing education publication to satisfy the continuing education requirements of this chapter shall provide, upon the Board’s request, the following documentation: For printed media, the individual shall provide a copy of the published work. For digital media, the individual shall provide a copy of the published work. For online media, the individual shall provide: The complete uniform resource locator of the published work; The title of the published work; and The date of the published work. For all types of media, the individual shall, on a form provided by the Board: Certify the hours spent by the individual researching and writing the continuing education publication; and Identify the independent party who reviewed the continuing education publication. Services as a Teacher, Lecturer, or Discussion Leader. An individual may receive continuing education credit for services as a teacher, lecturer, or discussion leader that meet §A of this regulation. Credit Hours. An individual who provides services as a teacher, lecturer, or discussion leader will be awarded credit hours for a presentation of a course or program in the following amounts: For a university or college course offered at an institution of higher education that meets the requirements of Business Occupations and Professions Article, §2-303(c), Annotated Code of Maryland, the individual shall receive 15 hours of continuing education for each semester hour credit of the course and 10 hours of continuing education for each quarter hour credit of the course; or For any other course or program, the individual shall receive three times the credit hours of the course or program. Credit hours for services as a teacher, lecturer, or discussion leader may not exceed 45 credit hours per individual for any license period. An individual may only be awarded credit hours for the first time presentation of a course or program within a 2-year license term. Documentation. An individual who reports services as a teacher, lecturer, or discussion leader to satisfy the continuing education requirements of this chapter shall provide, upon the Board’s request, the following documentation: The professional credentials of the individual; The name of the course or program; The group or institution offering the course or program; An outline or syllabus of the subject matter presented; The date of the presentation; The location of the presentation; and The duration of the presentation. Applicants for license renewal or reinstatement shall provide a certification of compliance with the license requirements, under Business Occupations and Professions Article, §§2-311 and 2-312, Annotated Code of Maryland, under penalty of perjury, in an appropriate form specified by the Board. An applicant for license renewal or reinstatement who reports continuing education credit hours to the Board shall retain the applicable documentation of the credit hours, as specified in this chapter, for a period of 4 years from the application date. The Board, at its discretion, may verify the information and documentation supporting the certification of continuing education credit hours reported. Upon request, the individual who reported the continuing education credit hours shall submit to the Board, or its designee, copies of the original documentation. An applicant for license renewal or reinstatement may request a modification of continuing professional education credit hours previously reported to the Board provided that the applicant: Makes the request in writing within 30 days of the application date; and Provides to the Board the documentation identified in §A of this regulation for the continuing professional education credit hours claimed. An applicant for reinstatement may only report continuing education hours earned within 2 years of the application date. Credit Hour Calculation. For purposes of these regulations, the Board shall calculate continuing education credit hours as follows: 50 minutes of instruction shall be considered equivalent to 1 credit hour; 25 minutes of instruction shall be considered equivalent to .5 credit hour; 10 minutes of instruction shall be considered equivalent to .2 credit hour; Instruction of duration other than set forth in §F(1)—(3) of this regulation shall be rounded down to the lowest 10-minute increment; and Instruction of a duration less than 10 minutes may not qualify for continuing education credit. The Board may issue a license to any applicant who has not fully complied with the continuing education requirements in cases when failure by the applicant to fulfill this requirement has been caused by reason of any of the following: Health as certified by a medical doctor; Military service on extended active duty with the armed forces of the United States; Other good and valid causes, as determined and approved by the Board. Business Occupations and Professions Article, §§2-207(a), 2-311, and 2-312, Annotated Code of Maryland Effective date: January 5, 1977 (4:1 Md. R. 17) Chapter revised effective August 25, 1978 (5:17 Md. R. 1329) Regulation .01 amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .01B amended effective February 28, 1994 (21:4 Md. R. 276) Regulation .02 amended effective January 26, 1987 (14:2 Md. R. 128); October 1, 2006 (32:23 Md. R. 1825); May 18, 2009 (36:10 Md. R. 716) Regulation .02A amended and C repealed effective August 15, 1983 (10:16 Md. R. 1454) Regulation .02A amended effective December 28, 1998 (25:26 Md. R. 1921) Regulation .02C adopted effective September 9, 1996 (23:18 Md. R. 1316) Regulation .02D amended effective May 17, 2010 (37:10 Md. R. 721) Regulation .02E amended effective December 31, 2007 (34:26 Md. R. 2261) Regulation .02F adopted effective May 17, 2010 (37:10 Md. R. 721) Regulation .03 amended effective November 30, 1987 (14:24 Md. R. 2554); December 28, 1998 (25:26 Md. R. 1921); May 18, 2009 (36:10 Md. R. 716) Regulation .03B, E amended effective January 26, 1987 (14:2 Md. R. 128) Regulation .03H adopted effective December 31, 2007 (34:26 Md. R. 2262) Regulation .04 amended effective January 26, 1987 (14:2 Md. R. 128); December 28, 1998 (25:26 Md. R. 1921) Regulation .04B amended effective December 31, 2007 (34:26 Md. R. 2261) Regulation .04D adopted effective September 9, 1996 (23:18 Md. R. 1316) Regulation .04D repealed effective December 28, 1998 (25:26 Md. R. 1921) Regulation .04D adopted effective April 28, 2014 (41:8 Md. R. 470) Regulation .05 amended effective January 26, 1987 (14:2 Md. R. 128) Chapter revised effective March 30, 2015 (42:6 Md. R. 511) In order to receive an initial license, an applicant shall provide evidence of practical work experience meeting the requirements of Business Occupations and Professions Article, §2-302(f), Annotated Code of Maryland. Verification of Work Experience. Only work experience verified by a certified public accountant holding an active license may be approved. The Board may require a certified public accountant who has verified an applicant's work experience to provide evidence sufficient to support the verification. The Board may require a certified public accountant who has refused to verify an applicant's work experience to explain the refusal to the Board, either in writing, or in person. The Board may require an applicant to provide additional information concerning the applicant's work experience. Evaluation and Approval of Work Experience. The Board shall consider the following factors in determining whether to approve an applicant's verified work experience: The complexity of the work experience; and The diversity of the work experience. Business Occupations and Professions Article, §2-207(a), Annotated Code of Maryland Effective date: August 25, 1978 (5:17 Md. R. 1329) Regulation .01 amended effective October 5, 1979 (6:20 Md. R. 1628); April 11, 1983 (10:7 Md. R. 633); January 26, 1987 (14:2 Md. R. 128); July 19, 1993 (20:14 Md. R. 1169) Regulation .01 repealed and new Regulation .01 adopted effective January 8, 2001 (27:26 Md. R. 2358) Except sole proprietorships, any firm in which certified public accountancy is practiced shall have a permit issued by the Board under the requirements in Business Occupations and Professions Article, Title 2, Subtitle 4, Annotated Code of Maryland. A majority of the ownership interest, in terms of financial interests and voting rights, of a firm in which certified public accountancy is practiced shall be owned by individuals licensed to practice certified public accountancy in this State or another state. Any firm in which certified public accountancy is practiced shall designate and identify to the Board an individual licensed to practice certified public accountancy in this State who shall be responsible for the proper registration of the firm and communication with the Board. An individual not licensed to practice certified public accountancy may have an ownership interest in a firm in which certified public accountancy is practiced, if the individual is an active participant in the business of the firm or its affiliated entities. To determine whether a nonlicensee owner is an active participant in the business of the firm or its affiliated entities, the Board shall consider the: Number of hours the nonlicensee owner devotes to firm business or the business of its affiliated entities; and Type of activities the nonlicensee owner performs for the firm or its affiliated entities. A nonlicensee owner may be a: Natural person; or Business entity, if each ultimate beneficial owner of equity interest in that entity is a natural person actively participating in the business of the firm or its affiliated entities. A nonlicensee's ownership interest shall revert to the firm when the nonlicensee's active participation in the business of the firm or its affiliated entities ceases. The Board may deny, suspend, or revoke a permit for a firm in which certified public accountancy is practiced if a nonlicensee having interest in the firm or its affiliated entities: Has been convicted under the laws of the United States or any state of a: Felony; or Misdemeanor containing an element of fraud or misrepresentation; Violates any provision of Business Occupations and Professions Article, Title 2, Annotated Code of Maryland; or Violates any provision of COMAR 09.24. The name of an owner not licensed to practice certified public accountancy may not be included in the name of the certified public accountancy firm. Business Occupations and Professions Article, §§2-207 and 2-401—2-403, Annotated Code of Maryland Effective date: September 29, 2003 (30:19 Md. R. 1331) Regulation .04 amended effective May 18, 2009 (36:10 Md. R. 716) This chapter establishes criteria for the Uniform CPA Examination, which: Tests the knowledge and skills required by the Board for performance as an entry-level certified public accountant; and Includes the subject areas of accounting, auditing, and related knowledge and skills as the Board may require. In this chapter, the following terms have the meaning indicated. Terms Defined. “Administration window” means one of four quarterly periods during the year in which a candidate may sit for any section of the Uniform CPA Examination. “Applicant” means an individual who applies to take the Uniform CPA Examination. “Candidate” means an individual who is approved by the Board to take the Uniform CPA Examination. “Cheating” means: Falsifying or misrepresenting educational credentials or other information required by the Board for qualification for the Uniform CPA Examination; Communicating inside or outside of an examination facility for the purpose of exchanging information about examination subject matter during the administration of any examination section; Copying another candidate's answers during the administration of the examination; Substituting another person to sit in a test facility while the examination is in progress; Referring to any material or electronic media other than material provided by the examination facility for the purpose of completing the examination; or Attempting to gain an unfair advantage over other candidates by any other means. “Examination section” means one of four parts of the Uniform CPA Examination. “Notice to schedule” means notification sent to a candidate that authorizes the candidate to schedule an examination. “Notify in writing” means notice by regular mail, email, or other electronic means. “Passing score” means a score of 75 or greater on each section of the Uniform CPA Examination. To take the Uniform CPA Examination, an applicant shall satisfactorily complete: Unless otherwise indicated, a minimum of 27 undergraduate semester hours of accounting education to include each of the following subjects: Auditing of at least 3 undergraduate semester hours; Financial accounting of at least 9 undergraduate semester hours; Accounting information systems of at least 3 undergraduate semester hours; and U.S. federal income tax of at least 3 undergraduate semester hours; and At least 3 undergraduate semester hours in: Business ethics; or Accounting ethics. In order to become licensed, in addition to satisfactorily completing the requirements set forth in §A of this regulation, an applicant shall satisfactorily complete 3 undergraduate semester hours in business law and a minimum of 18 undergraduate semester hours in the following business-related subjects, including 3 undergraduate semester hours in at least five of the following subjects: Statistics; Economics; Corporation or business finance; Management; Data analytics; Marketing; Business communication; Information technology/systems; Quantitative methods; or Other business-related content areas included in the Uniform CPA Examination Blueprints. The following may be accepted as fulfilling a part or all of the semester hours requirement under §A of this regulation, at either the graduate or undergraduate level, if the accredited institution granting the credits reports the credits on an official transcript without qualification or limitation and if the credits are acceptable by the accredited institution in the institution's own graduate or undergraduate degree-granting programs: Independent study courses; Correspondence courses; College Level Entrance Programs (CLEP); and Credits earned only by examination. If qualification is sought on the basis of a combination of graduate and undergraduate courses: 3 undergraduate level semester hours shall be considered equivalent to 2 graduate level semester hours; and A higher than baccalaureate degree is not required to fulfill this requirement. If qualification is sought on the basis of a combination of semester and quarter hour courses: 1 undergraduate level quarter hour shall be considered equivalent to .667 semester hours; and 1 graduate level quarter hour shall be considered equivalent to 1 undergraduate semester hour. If an applicant has received an accounting degree, or has taken course work to supplement a non-accounting degree, at a school or college that is not a member of the Association to Advance Collegiate Schools of Business or not accredited as provided by Business Occupations and Professions Article, Title 2, Annotated Code of Maryland, the Board may: Seek the advice of consultants as to the academic standing of the institution; Charge the applicant the reasonable cost of the consultation; Upon receipt of the report of the consultants, the Board may decide to reject, or to accept within its lawful discretion, either: The entire academic program; or Any part of the academic program. If only a part of the academic program is accepted under §F(3)(b) of this regulation, the Board shall specify the courses to be taken at an accredited institution for the applicant to qualify. Each original applicant shall: File an application with the Board on forms that the Board approves; and Submit the appropriate fee and the official transcripts demonstrating completion of the educational requirements set forth in Regulation .03 of this chapter to the address designated by the Board on the appropriate application forms. A candidate may choose to take the examination sections individually and in any order. An application to take a reexamination shall be submitted on a form, or in a manner, determined by the Board. For examinations administered after November 6, 2003, a candidate approved to take the examination before July 1, 1999 shall meet the requirements of Regulation .03 of this chapter unless the candidate: Has earned conditional credit under Regulation .04 of this chapter; or Was present for the examinations administered in: May 2003; or November 2003. The Board shall give examinations to applicants, at least twice a year, at times and places that the Board determines. Notification of Candidate Eligibility and Notice to Schedule. The Board or its designee shall issue a notice to schedule upon: The original candidate's approval to take the Uniform CPA Examination and payment of appropriate examination fees; or Receipt of payment of appropriate examination fees from a reexamination candidate. The notice to schedule is valid for 180 days from the date issued. A candidate may not retake a failed examination section during the same administration window. After filing the proper application and fee, if a candidate does not appear at the exam as scheduled, the candidate forfeits the application fee. A candidate may not transfer fees from one administration window to another. If the examination is offered on a continuous basis with no administration window limitations, a candidate may retake a failed examination section once their grade for that section has been released. A candidate who received a score of 75 or higher in any examination section shall earn conditional credit for passing the section. A candidate who receives conditional credit is excused from retaking the examination section passed, if the candidate passes the remaining sections of the examination within 30 months from the date the first section was passed. A candidate who fails to pass all sections of the examination within 30 months from the date the first section is passed loses conditional credit for the first section and shall pass the section again before 30 months elapse from the date the next examination section is passed. The conditional credit period may be extended by the Board upon a candidate's showing of reasons, acceptable to the Board, why the candidate is unable to take an examination. As soon as practicable after the grading of the examination papers, each candidate shall be notified in writing of the candidate's grades on each subject taken. Within a period of 60 days after release of grades, a candidate may request permission to review the candidate's examination by writing to the Board. Conditional Credit Transition. Candidates who have earned conditional credit for examination sections passed under the paper and pencil format shall retain conditional credit as follows: The Accounting and Reporting examination section under the paper and pencil format shall be considered equivalent to the Regulation examination section under the computerized testing format; The Auditing examination section under the paper and pencil format shall be considered equivalent to the Auditing and Attestation examination section under the computerized testing format; The Business Law and Professional Responsibilities examination section under the paper and pencil format shall be considered equivalent to the Business Environment and Concepts examination section under the computerized testing format; and The Financial Accounting and Reporting examination section under the paper and pencil format shall be considered equivalent to the Financial Accounting and Reporting examination section under the computerized testing format. Duration of Conditional Credit from Paper and Pencil Format. Conditional credit earned in November 2001, expires on the earlier of: The candidate's first attempt to pass the remaining examination sections, if unsuccessful; or May 31, 2004. Conditional credit earned in May 2002, expires on the earlier of: The candidate's second attempt to pass the remaining examination sections, if unsuccessful; or November 30, 2004. Conditional credit earned in November 2002, expires on the earlier of: The candidate's third attempt to pass the remaining examination sections, if unsuccessful; or May 31, 2005. Conditional credit earned in May 2003, expires on the earlier of: The candidate's fourth attempt to pass the remaining examination sections, if unsuccessful; or November 30, 2005. Conditional credit earned in November 2003, expires on the earlier of: The candidate's fifth attempt to pass the remaining examination sections, if unsuccessful; or May 31, 2006. Before applying for a license, an individual who has successfully passed all of the examination sections of the Uniform CPA Examination shall pass the examination in professional ethics approved by the Board. The individual shall pay the cost of the examination in professional ethics. Business Occupations and Professions Article, §§2-207, 2-303, 2-305, and 2-307, Annotated Code of Maryland Effective date: March 29, 2004 (31:6 Md. R. 508) Regulation .03 amended effective December 31, 2007 (34:26 Md. R. 2262); October 3, 2011 (38:20 Md. R. 1202); April 28, 2014 (41:8 Md. R. 470) Regulation .03A amended effective May 18, 2009 (36:10 Md. R. 716) Regulation .03A, B, F amended effective January 8, 2024 (50:26 Md. R. 1131) Regulation .04J adopted effective June 29, 2020 (47:13 Md. R. 641) Regulation .05B, C amended effective January 8, 2024 (50:26 Md. R. 1131) A firm that provides any of the services described in Business Occupations and Professions Article, §2-4A-04, Annotated Code of Maryland, shall be required to undergo, at least once every 3 years, a peer review as a condition of permit renewal. A licensee who provides any of the services described in Business Occupations and Professions Article, §2-4A-04, Annotated Code of Maryland, in a firm holding a permit issued by the Board is not required to undergo a separate peer review as a condition for license renewal. A licensee who provides any of the services described in Business Occupations and Professions Article, §2-4A-04, Annotated Code of Maryland, other than in a firm holding a permit issued by the Board, shall be required to undergo, at least once every 3 years, a peer review as a condition of license renewal. For purposes of this requirement, firms or licensees that only provide compilation services to clients for management use only, the products of which are not disclosed to third parties, are not required to have a peer review as described in Business Occupations and Professions Article, §2-4A-02, Annotated Code of Maryland. In order to qualify for purposes of license or permit renewal, a peer review shall be conducted in an approved peer review program in accordance with: The Standards for Performing and Reporting on Peer Reviews of the American Institute of Certified Public Accountants; or An equivalent set of standards approved by the Board. The Board shall maintain on its website a list of all approved peer review programs and standards. To the extent that there is any conflict between any peer review standards approved by the Board and Maryland law or regulations, Maryland law and regulations shall prevail. Approval by the Board. Before conducting a peer review, an individual shall be approved by the Board. An individual seeking Board approval as a peer reviewer shall file an application on a form provided by the Board. An individual who is authorized as a peer reviewer by a program approved by the Board shall be provisionally approved by the Board pending verification of the individual's qualifications. The Board shall approve an individual it considers qualified to conduct peer reviews. In order to receive and maintain approval as a peer reviewer from the Board, an individual shall comply with the requirements set forth in Business Occupations and Professions Article, §2-4A-05, Annotated Code of Maryland. The Board may revoke its approval of a peer reviewer for the reasons set forth in Business Occupations and Professions Article, §2-4A-05(g), Annotated Code of Maryland. A peer reviewer shall conduct a peer review intended to satisfy the requirement set forth in Business Occupations and Professions Article, §2-4A-02, Annotated Code of Maryland, in accordance with a peer review program approved by the Board. An approved peer review program shall notify the Board upon completion of a peer review within that program that is intended to satisfy the peer review requirements of the Maryland Public Accountancy Law. A peer reviewer shall ensure that a copy of the report of findings is provided to the Board only under the circumstances set forth in Business Occupations and Professions Article, §2-4A-05(e), Annotated Code of Maryland. Business Occupations and Professions Article, §§2-207 and 2-4A-01—2-4A-06, Annotated Code of Maryland Effective date: October 9, 2006 (33:20 Md. R. 1615) Effective date: October 9, 2006 (33:20 Md. R. 1615) Chapter repealed effective May 18, 2009 (36:10 Md. R. 717)