                                 CODE OF VIRGINIA

LICENSING REQUIREMENTS FOR FIRMS (§ 54.1-4412.1)

A. Only a licensed firm can provide attest services, compilation services, or
financial statement preparation services to persons or entities located in
Virginia. However, this shall not affect the privilege of a person who is not
licensed to include a statement on financial statements indicating that no
assurance is provided on the financial statements, to say that financial
statements have been compiled, or to use the compilation language, as prescribed
by subsections B and C of &#xA7; 54.1-4401.

B. A firm that provides attest services, compilation services, or financial
statement preparation services to persons or entities located in Virginia shall
obtain a Virginia license if such firm&#8217;s principal place of business is in
Virginia.

C. A firm whose principal place of business is not in Virginia is not required
to obtain a Virginia license but may provide attest services, compilation
services, or financial statement preparation services to persons or entities
located in Virginia if the following provisions are met:

   1. The firm holds the license of another state and can lawfully provide attest
   services, compilation services, or financial statement preparation services to
   persons or entities in the state where its principal place of business is
   located; and

   2. The firm complies with subsection D; and

   3. The firm&#8217;s personnel working on the engagement either (i) hold a
   Virginia license or (ii) hold the license of another state and comply with the
   practice privilege provisions of &#xA7; 54.1-4411; or

   4. The firm&#8217;s personnel working on the engagement are under the
   supervision of a person who either (i) holds a Virginia license or (ii) holds
   the license of another state and complies with the practice privilege
   provisions of &#xA7; 54.1-4411.

D. For a firm to obtain and hold a Virginia license:

   1. As determined on a firm-wide basis:
   				a. At least 51 percent of the owners of the firm shall be licensees,
   trustees of an eligible employee stock ownership plan as defined in &#xA7;
   13.1-543, or a firm that meets this requirement; and
   				b. At least 51 percent of the voting equity interest in the firm shall be
   owned by persons who are licensees, by trustees of an eligible employee stock
   ownership plan as defined in &#xA7; 13.1-543, or by a firm that meets this
   requirement.
   				If the death, retirement, or departure of an owner causes either of these
   requirements not to be met, the requirement shall be met within one year after
   the death, retirement, or departure of the owner.

   2. The Board shall prescribe requirements concerning the hours that owners who
   are not licensees work in the firm and may prescribe other requirements for
   those persons.

   3. All attest services, compilation services, and financial statement
   preparation services provided for persons and entities located in Virginia
   shall be under the supervision of a person who either (i) holds a Virginia
   license or (ii) holds the license of another state and complies with the
   practice privilege provisions of &#xA7; 54.1-4411.

   4. Any person who releases or authorizes the release of reports on attest
   services, compilation services, or financial statement preparation services
   provided for persons or entities located in Virginia shall:
   				a. Either (i) hold a Virginia license or (ii) hold the license of another
   state and comply with the practice privilege provisions of &#xA7; 54.1-4411;
   and
   				b. Meet any additional requirements the Board prescribes.

   5. The firm shall conduct its attest services, compilation services, and
   financial statement preparation services in conformity with the standards of
   conduct and practice in &#xA7; 54.1-4413.3 and regulations promulgated by the
   Board.

   6. If the services provided by the firm are within the scope of the
   practice-monitoring program of the American Institute of Certified Public
   Accountants or its successor, the firm shall enroll in the program or in
   another practice-monitoring program for attest services, compilation services,
   and financial statement preparation services that is approved by the Board. In
   addition, if enrolled the firm shall:
   				a. Comply with any requirements prescribed by the Board in response to the
   results of peer reviews; and
   				b. Participate in the American Institute of Certified Public
   Accountants&#8217;, or sponsoring organizations&#8217;, Facilitated State
   Board Access process, or its successor process, or another process approved by
   the Board for peer reviews.

   7. The name of the firm shall not be false, misleading, or deceptive.

E. The Board shall prescribe the methods and fees for a firm to apply for the
issuance, renewal, or reinstatement of a Virginia license.

F. A firm may not use the CPA title in Virginia unless it holds a Virginia
license or the license of another state as permitted in subsection C.

HISTORY: 2007, c. 804; 2014, cc. 40, 755; 2015, c. 287; 2017, c. 403; 2024, cc.
654, 677; 2025, cc. 523, 539.