South Carolina S 176: Certified Public Accountants

Bill Text

2025-2026 Bill 176 Text of Previous Version (May. 05, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 176

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

Amended

May 1, 2025

S. 176

Introduced 
by Senator Climer 

S. Printed 5/1/25--H. [SEC 
5/5/2025 9:14 AM]

Read the first time March 20, 2025

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 40-2-20, RELATING TO DEFINITIONS CONCERNING THE REGULATION OF CERTIFIED 
PUBLIC ACCOUNTANTS AND PUBLIC ACCOUNTANTS, SO AS TO CORRECT A CROSS REFERENCE 
IN THE DEFINITIONS OF "ATTEST," "PRACTICE OF ACCOUNTING," AND "SUBSTANTIAL 
EQUIVALENCY"; BY AMENDING SECTION 40-2-30, RELATING TO LICENSING OR 
REGISTRATION REQUIREMENTS AND FORMS FOR ISSUANCE OF A REPORT BY A PERSON OTHER 
THAN CPA OR PA, SO AS TO INCLUDE ELECTRONIC FILES AND METADATA TAGS AMONG THE 
ITEMS THAT MUST MEET CERTAIN REQUIREMENTS TO USE THE TITLE CERTIFIED PUBLIC 
ACCOUNTANT, PUBLIC ACCOUNTANT, AND ABBREVIATIONS CPA AND PA; BY AMENDING 
SECTION 40-2-35, RELATING TO REQUIREMENTS FOR LICENSE TO PRACTICE, SO AS TO 
REVISE THE EDUCATIONAL REQUIREMENTS FOR LICENSURE, REVISE WHAT AN APPLICANT 
MUST HAVE ON RECORD WITH THE BOARD TO DEMONSTRATE COMPLIANCE WITH CERTAIN 
REQUIREMENTS, REVISE CERTAIN TIME REQUIREMENTS RELATED TO THE CPA EXAM, AND 
REVISE THE EDUCATIONAL EXPERIENCE AN APPLICANT MUST HAVE; BY AMENDING SECTION 
40-2-40, RELATING TO THE GRANTING OR RENEWAL OF REGISTRATION TO PRACTICE AS A FIRM, 
SO AS TO PROVIDE THAT A PERSON WHO PERFORMS COMPILATION SERVICES MUST HOLD A 
REGISTRATION ISSUED PURSUANT TO SECTION 40-2-40 AND PROVIDE THAT OWNERSHIP MAY 
ALSO BE HELD THROUGH A REVOCABLE GRANTOR TRUST; BY AMENDING SECTION 40-2-70, 
RELATING TO POWERS AND DUTIES OF THE BOARD, SO AS TO ADD REVIEW AND PROVIDE 
INPUT ON PROPOSED LEGISLATIVE CHANGES RELATED TO THE PRACTICE OF ACCOUNTING AS 
A POWER OF THE BOARD; BY AMENDING SECTION 40-2-80, RELATING TO INVESTIGATIONS 
OF COMPLAINTS OR OTHER INFORMATION SUGGESTING VIOLATIONS, SO AS TO PROVIDE THAT 
AN INSPECTOR-INVESTIGATOR MUST HAVE BEEN LICENSED AS A CERTIFIED PUBLIC 
ACCOUNTANT FOR AT LEAST THE PREVIOUS FIVE YEARS; BY AMENDING SECTION 40-2-240, 
RELATING TO LICENSING OF PERSONS LICENSED IN ANOTHER STATE, SO AS TO REVISE HOW 
PERSONS LICENSED IN OTHER STATES CAN BE LICENSED IN THIS STATE; BY AMENDING 
SECTION 40-2-245, RELATING TO REQUIREMENTS TO PRACTICE IF LICENSED OUT OF STATE, 
SO AS TO REVISE THE REQUIREMENTS TO PRACTICE IF LICENSED OUT OF STATE; AND TO 
REPEAL SECTION 40-2-20(18), SECTION 40-2-35(H), AND SECTION 40-2-35(I) OF THE 
S.C. CODE.

 Amend Title To Conform

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 40-2-20(2) of the S.C. Code is amended to read:

 (2)(a) 
"Attest" 
means providing the following services:

 (i) 
any audit or other engagement to be performed in accordance with the Statements 
on Auditing Standards (SAS);

 (ii) 
any review of a financial statement to be performed in accordance with the 
Statements on Standards for Accounting and Review Services (SSARS);

 (iii) 
any examination of prospective financial information to be performed in 
accordance with the Statements on Standards for Attestation Engagements (SSAE);

 (iv) 
any engagement to be performed in accordance with Public Company Accounting 
Oversight Board (PCAOB) Auditing Standards; or

 (v) 
any examination, review, or agreed upon procedure to be performed in accordance 
with the SSAE, other than an examination described in subitem (c)(iii).

 (b) 
Any standards specified in this definition shall be adopted by reference by the 
board pursuant to rulemaking and shall be those developed for general 
application by national accountancy organizations, such as the AICPA or the 
PCAOB.

SECTION 2. Section 40-2-20(23) of the S.C. Code is amended to 
read:

 (23) "Practice of accounting" means:

 (a) 
issuing a report on financial statements of a person, firm, organization, or 
governmental unit or offering to render or rendering any attest or compilation 
service. This restriction does not prohibit any act of a public official or 
public employee in the performance of that person's duties or prohibit the 
performance by a nonlicensee of other services involving the use of accounting 
skills, including the preparation of tax returns, management advisory services, 
and the preparation of financial statements without the issuance of reports; 
or

 (b) 
using or assuming the title "Certified Public Accountant" or the abbreviation 
"CPA" or any other title, designation, words, letters, abbreviation, sign, 
card, electronic file, metadata tag, or any other device tending to indicate that the person is a 
certified public accountant.

SECTION 3. Section 40-2-20(33) of the S.C. Code is amended to 
read: