Neb. Admin. Code tit. 288 — Board of Public Accountancy

Chapter 1 Scope of Rules

Neb. Admin. Code tit. 288, ch. 1 Scope of Rules {#sec-288-nac-1 omnilex-key=us-ne-regs-official--title-288--288 NAC 1}

001 These rules govern the procedures and actions of the Nebraska State Board of Public Accountancy, except where inconsistent with Nebraska Law.

002 Interpretations of the Rules and Accountancy Act

From time to time on its own motion, or as the result of proceedings pending before it, the Board will render interpretations of the Rules and the Act. Such interpretations shall be considered Board policy and shall be made available to licensees and maintained in the Board reference manual. Such manual shall be available to licensees and other interested parties.

Statutory Authority: Section 1-108 R.R.S. 1943

History

• Effective 2010-08-31

Chapter 2 Applicable Laws

Neb. Admin. Code tit. 288, ch. 2 Applicable Laws {#sec-288-nac-2 omnilex-key=us-ne-regs-official--title-288--288 NAC 2}

001 The provisions of the Public Accountancy Act, Chapter 1, Article 1, and all other relevant statutes including the Public Meetings Law, Chapter 84, Article 14, and the Rules of Administrative Agencies, Chapter 84, Article 9, are applicable to the procedures and actions of the Nebraska State Board of Public Accountancy. Any of the rules or regulations promulgated under these specific statutory grants of authority shall become null and void upon the effective date of any statute which repeals, changes, alters, amends, or modifies such statutory grant of authority.

Statutory Authority: Sections 1-106 to 1-171, Sections 84-902 to 84-917, and Sections 84-1408 to 84-1414 R.R.S. 1943

History

• Effective 1987-06-15

Chapter 3 Definition of Terms

Neb. Admin. Code tit. 288, ch. 3 Definition of Terms {#sec-288-nac-3 omnilex-key=us-ne-regs-official--title-288--288 NAC 3}

001 As used herein, unless the context otherwise requires:

001.01 “Act” shall mean the Public Accountancy Act, Chapter 1, Article 1, Reissue Revised Statutes, Nebraska.

001.02 “AICPA” shall mean the American Institute of Certified Public Accountants.

001.03 “Attest” means providing the following services:

001.03A any audit or other engagement to be performed in accordance with the AICPA Statements on Auditing Standards (SAS) in effect on October 15, 2025;

001.03B any review of a financial statement to be performed in accordance with the AICPA Statements on Standards for Accounting and Review Services (SSARS) in effect on October 15, 2025;

001.03C any examination of prospective financial information to be performed in accordance with the AICPA Statements on Standards for Attestation Engagements (SSAE) in effect on October 15, 2025;

001.03D any engagement to be performed in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB) in effect on October 15, 2025; and

001.03E any examination, review, or agreed upon procedures engagement to be performed in accordance with the SSAE, other than an examination described in subsection 001.03(C). The standards specified in this definition shall be adopted by reference by the Board, and shall be those developed for general application by recognized national accountancy organizations, such as the AICPA, and the PCAOB.

001.04 “Board” means the Nebraska Board of Public Accountancy established under Section 1-107 of the Act.

001.05 “Certificate” means the certificate of “certified public accountant” issued pursuant to Section 1-114 of the Act or corresponding provisions of prior law, or a corresponding certificate issued under the law of any other state, which signifies having met the educational requirements, the successful completion of the Uniform CPA Examination, and an examination in professional ethics.

001.06 “Client” shall mean any person or entity who retains a permit holder for the performance of professional services.

001.07 “Compilation” shall mean providing a service to be performed in accordance with Statements on Standards for Accounting and Review Services (SSARS), in effect on October 15, 2025.

001.08 “Financial statements” shall mean presentation of financial data, including accompanying notes, derived from accounting records and intended to communicate an entity’s economic resources or obligations at a point in time or the changes therein for a period of time in accordance with a comprehensive basis of accounting. Financial statements include, but are not limited to, balance sheets, statements of income, statements of retained earnings, statements of cash flows, statements of changes in owner’s equity, statements of assets and liabilities that do not include owners’ equity accounts, statements of revenue and expenses, statements of cash receipts and disbursements, summary of operations and statements of operations by product lines. Financial statements may be prepared on either a historical or prospective basis. For purposes hereof, incidental financial data included in management advisory services reports to support recommendations to a client, and tax returns and supporting schedules do not constitute financial statements. The statement, affidavit, or signature of preparers required on tax returns neither constitutes an opinion on financial statements nor requires a disclaimer of such opinion.

001.09 “Firm” shall mean a partnership, limited liability company, or corporation engaged in the practice of public accountancy in this state entitled to register with the board or a proprietorship engaged in the practice of public accountancy in this state.

001.10 “He,” “his,” and “him” mean, where applicable, the corresponding feminine and neutral pronouns also.

001.11 “Holding out to the public as a permit holder” As that term is used in these rules and in the definition of the practice of public accountancy, it means any representation that a person holds a permit to practice made in connection with an offer to perform or the performance of services to the public. Any such representation is presumed to invite the public to rely upon the professional skills implied by the permit in connection with services offered to be performed. For purposes of this definition and these rules, a representation shall be deemed to include any oral, electronic, or written communication conveying that a licensee holds a permit, including the use of titles or legends displayed in letterheads, business cards, office doors, advertisements, websites or other electronic means, and all other listings. Holding out to the public does not include:

001.11A the display of the original of a certificate, unless a currently valid permit to practice is also displayed; or

001.11B any representation by a faculty member in an educational institution that such faculty member holds a certificate or permit, when the purposes of such representation reasonably relates to his functioning in the capacity of faculty member; or

001.11C any representation in a book, article, or other publication or in any promotional advertising for such book, article or other publication that the author holds a certificate or permit, provided that such book, article, or other publication does not offer the performance of services or the sale of any products (other than the book, article, or publication itself) of any kind.

001.12 “Home office” is the location specified by the client as the address where the attestation service is directed.

001.13 “In good standing” shall mean that a certificate holder possesses a certificate which is considered by the appropriate licensing agency to be current in payment of fees and unrevoked at the time of application for a license or at the time of renewal.

001.14 “Interpretations of the Rules of Professional Conduct” shall mean pronouncements issued by the Board to provide guidelines as to the scope and application of the Rules of Professional Conduct.

001.15 “Issuer” shall mean individuals, partnerships, professional corporations, Limited Liability Companies, or other such entities.

001.16 “Licensee” shall mean the holder of a CPA certificate, active permit, or inactive registration issued by the Board.

001.17 “Office” shall mean each place of business of a practice unit which constitutes a separate geographical location where the practice unit engages in the practice of public accountancy.

001.18 “Permit holder” or “holder of a permit” shall mean any person or firm holding a permit to practice public accountancy as a certified public accountant in the State of Nebraska.

001.19 “Permit to practice” means the license issued under the Sections of the Public Accountancy Act, to either a person or a firm.

001.20 “Practice of public accountancy” shall mean the performance or offering to perform by a person holding himself out to the public as a permit holder, for a client or potential client, of one or more kinds of services involving:

001.20A the use of accounting or auditing skills, including the issuance of reports on financial statements which state or imply any level of assurance as to the reliability of any financial statements associated with such assurances;

001.20B management, advisory, financial, or consulting services, or the preparation of tax returns or the furnishing of advice on tax matters.

001.21 “Practice privilege” shall mean privilege of a certified public accountant licensed in another state to practice public accountancy or hold out as a certified public accountant in Nebraska in accordance with Section 1-125.01 of the Act.

001.22 “Practice unit” shall mean all Certified Public Accountants practicing public accountancy in Nebraska as a partnership, limited liability company, or corporation engaged in the practice of public accountancy in this state entitled to register with the board or a proprietorship engaged in the practice of public accountancy in this state and in whose name financial reports are issued. Certified Public Accountants not in full-time public practice, but who provide accounting services to the public on a part-time basis, are included in this definition.

001.23 “Principal place of business” means the office location designated by the practice privilege CPA licensee as his primary location for the practice of public accountancy.

001.24 “Professional services” means any services performed or offered to be performed by a permit-holder for a client in the course of the practice of public accountancy.

001.25 “Report” when used with reference to any attest or compilation service, means an opinion, report, or other form of language that states or implies assurance as to the reliability of the attested information or compiled financial statements and that also includes or is accompanied by any statement or implication that the person or firm issuing it has special knowledge or competence in accounting or auditing. Such a 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 or firm is an accountant or auditor, or from the language of the report itself. The term “report” includes any form of language which disclaims an opinion when such form of language is conventionally understood to imply any positive assurance as to the reliability of the attested information or compiled financial statements referred to and/or special competence on the part of the person or firm issuing such language; and it includes any other form of language that is conventionally understood to imply such assurance and/or such special knowledge or competence.

001.26 “State” means any state, territory or insular possession of the United States, the Commonwealth of Puerto Rico, or the District of Columbia; except that “this State” means the State of Nebraska.

History

• Effective 2026-07-25

Chapter 4 Board Meetings and Proceedings

Neb. Admin. Code tit. 288, ch. 4 Board Meetings and Proceedings {#sec-288-nac-4 omnilex-key=us-ne-regs-official--title-288--288 NAC 4}

001 Organization of the Board

001.01 The Board shall hold an organizational meeting each year. At such meeting, the Board shall elect from its own members a chair, a vice-chair and a secretary.

001.02 At the organizational meeting, the Board may establish the dates on which the regular meetings of the Board will be held.

002 Duties of the Board

002.01 The Board shall exercise administrative control over the practice of public accountancy in the State of Nebraska, subject to the applicable provisions of the Act.

002.02 The Board shall provide for the preparation and adoption of the annual budget to provide the funds necessary to finance the operation of the Board.

002.03 At least annually, the Board shall establish the fees applicable to candidates for the examinations conducted by the Board and for permits issued by the Board.

002.04 The Board shall employ an executive director, additional personnel, and any other assistance as it may require for the performance of its duties. Unless otherwise directed by the board, the executive director shall keep a record of all proceedings, transactions, and official acts of the board, be custodian of all the records of the board, and perform such other duties as the board may require.

003 Duties of Officers

The chair of the Board, or in the event of the chair’s absence or inability to act, the vice-chair, shall preside at Board meetings and shall perform all duties imposed by the Act and such other duties as may be prescribed by action of the Board. The chair shall appoint such committees or hearing panels as are provided by the Act and these Regulations or established by the Board. The Board shall determine other duties of the officers.

004 Meetings

004.01 Emergency Meetings. Emergency meetings of the Board may be held in accordance with the provisions of Section 84-1411(3), as follows:

004.01A The Secretary or other designee of the Board shall maintain a list of the news media requesting notification of meetings and shall make reasonable efforts to provide advance notification to them of the time and place of each meeting, and the subjects to be discussed at the meeting.

004.01B When it is necessary to hold an emergency meeting of the Board without reasonable advance public notice, the nature of the emergency shall be stated in the minutes and any formal action taken in such meeting shall pertain only to the emergency.

004.01C Such emergency meetings may be held by means of electronic or telecommunication equipment.

004.02 Closed Meetings. Closed meetings of the Board may be held in accordance with investigations conducted under Section 1-137 of the Act or under the provisions of Section 84-1410, R.R.S., as follows:

004.02A A closed meeting may be called by an affirmative vote of at least five (5) members of the Board; provided, that such session is clearly necessary for the protection of the public interest or for the prevention of needless injury to the reputation of an individual and if such individual has not requested a public meeting.

004.02B The vote to hold a closed session shall be taken in open session.

004.02C The vote of each member on the question of holding a closed session, the reason for the closed session, and the time when the closed session commenced and concluded shall be recorded in the minutes of the Board meeting.

004.02D The meeting shall be reconvened in open session before any formal action may be taken by the Board.

004.02E Any member of the Board shall have the right to challenge the continuation of a closed session if the member believes that the session has exceeded the reason stated in the original motion to hold a closed session. Such challenge shall be overruled only by a majority of the members present. Such challenge and its disposition shall be recorded in the Board minutes.

004.03 Open Meetings. Except as provided under 004.01 and 004.02 as given above, meetings of the Board of Public Accountancy shall be held in open session.

004.03A Notice. Not less than seven (7) days prior to any regular or special meeting of the Board notice shall be given to each Board member of the time and place of the meetings and of the agenda of subjects to be discussed or acted upon, as known at the time such notice is given. Such notice shall be deemed served when provided to each Board member as shown on the records of the Board. Publicized notice of all regular or special meetings of the Board shall be given by the publication of notice of the time and place of the meeting accompanied by a declaration that the agenda of all meetings is kept continuously current and available for public inspection at the offices of the Board in Lincoln, Nebraska. All notices shall be published in a paper with general circulation within this State at least five (5) days prior to the meeting. In addition, the Board shall provide notice to all other news media requesting such notification.

004.03B Agenda. The Secretary or his or her designee shall maintain an agenda of all business to be considered or conducted by the Board. Any member may place an item on the agenda for consideration at the next meeting of the Board by notifying the Secretary or his or her designee not less than three (3) days prior to the giving of notice for such meeting. Items not placed on the agenda and included in the notice of meeting can only be considered if of an emergency nature.

004.03C Form of Meeting. The parliamentary procedures of meetings of the Board shall be determined by Robert’s Rules of Order Revised, unless these Regulations or the Act or other statutes of the State of Nebraska require other procedures. Five (5) members shall constitute a quorum for the transaction of business at any meeting of the Board.

004.03D Opportunity for Public Expression. The Board, as a representative governmental body, recognizes the importance of the public’s viewpoint relative to its actions. Members of the public and holders of a CPA certificate, a permit to practice, or an inactive registration who desire to express ideas, grievances, or other matters to the Board should notify the Secretary at the commencement of the meeting, if possible, so that the Chairman can recognize such person as the appropriate agenda item is reached. The Chairman is authorized to rule any speaker out of order if the remarks being made are irrelevant and not germane to any subject matter currently before the Board, or if the speaker‘s remarks relate to a subject matter over which the Board lacks jurisdiction.

004.03E Voting. All votes on motions and resolutions shall be by roll call vote by the Board in open session. The record shall show how each member voted, or whether the member was absent or not voting. The votes to elect the officers of the Board may be taken by secret ballot; but the total number of votes for each candidate shall be recorded in the minutes.

004.03F Minutes. The Secretary or his or her designee shall keep minutes of all the Board’s meetings showing the time, place, members present and absent, and the substances of all matters discussed. The minutes of all meetings and evidence and documentation received or disclosed in open session shall be public records and open to the public inspection during normal business hours. Duplicated copies of the minutes shall be prepared following each meeting by the Secretary of the Board. Such minutes shall be written and available for public inspection within ten (10) working days, or prior to the next convened meeting, whichever occurs earlier.

005 Contested Case

005.01 Definitions. The following definitions shall apply as used throughout Chapter 4 of these rules and regulations.

005.01A. Contested case shall mean a proceeding before the Board in which the legal rights, duties, or privileges of specific parties are required by law or constitutional right to be determined after a Board hearing.

005.01B. Ex parte communication shall mean an oral or written communication which is not on the record in a contested case with respect to which reasonable notice to all parties was not given. Ex parte communication shall not include:

005.01B1. Communications which do not pertain to the merits of a contested case;

005.01B2. Communications required for the disposition of ex parte matters as authorized by law;

005.01B3. Communications in a ratemaking or rulemaking proceeding; and

005.01B4. Communications to which all parties have given consent.

005.01B5. Prohibitions against ex parte communications. The prohibitions found in this section shall apply beginning at the time notice for hearing is given.

005.01B5(a). Prohibitions; to whom applicable.

005.01B5(a)1. Parties and public. No party in a contested case or other person outside the Board having an interest in the contested case shall make or knowingly cause to be made an ex parte communication to the hearing officer or to the Board member or employee who is or may reasonably be expected to be involved in the decision-making process of the contested case.

005.01B5(a)2. Persons in decision-making roles. No hearing officer or the Board member or employee who is or may reasonably be expected to be involved in the decision-making process of the contested case shall make or knowingly cause to be made an ex parte communication to any party in a contested case or other person outside the Board having an interest in the contested case.

005.01B5(a)3. Investigators. No Board member or employee engaged in the investigation or enforcement of a contested case shall make or knowingly cause to be made an ex parte communication to a hearing officer or Board member or employee who is or may reasonably be expected to be involved in the decision-making process of the contested case.

005.01B5(b). Disclosure of contacts. The hearing officer or Board member or employee who is or may reasonably be expected to be involved in the decision-making process of the contested case who receives or who makes or knowingly causes to be made an ex parte communication set forth in subsections 005.01B5(a)1 through 005.01B5(a)3 shall file in the record of the contested case:

005.01B5(b) 1. All such written communications;

005.01B5(b) 2. Memoranda stating the substance of all such oral communications;

005.01B5(b) 3. All written responses and memoranda stating the substance of all oral responses to all the ex parte communications.

005.01B5(b) 4.The filing shall be made within two working days of the receipt or making of the ex parte communication. Notice of the filing, with an opportunity to respond, shall be given to all parties of record.

005.01B5(b) 5. Filing and notice of filing provided under subsection 005.01B5(b)4 shall not be considered on the record and reasonable notice for purposes of the definition of ex parte communication.

005.01C. Hearing officer shall mean the person or persons conducting a hearing, contested case, or other proceeding pursuant to the Administrative Procedure Act, whether designated as the presiding officer, administrative law judge, or some other title designation.

005.01D. Party means the person by or against whom a contested case is brought or a person allowed to intervene in a contested case.

005.01E. Petition means the initial document filed by or with the Board that sets forth a claim and request for the Board action.

005.02 Commencement of a Contested Case. The contested case begins with the filing of a petition and request for hearing, if applicable, with the Board.

005.02A. The petition is the initial document filed by or with the Board that sets forth a claim and request for Board action.

005.02B. The parties to a contested case shall be the petitioner or person by whom a contested case is brought and the respondent or person against whom a contested case is brought.

005.02C. A party may appear on his or her own behalf in a contested case proceeding or may be represented by an attorney or other representative as permitted by law.

005.02D. The pleadings in a contested case may include a petition, answer, reply, notice, motion, stipulation, objection or order or other formal written document filed in a proceeding before the Board. Any pleading filed in a contested case shall meet the following requirements:

005.02D1. The pleading shall contain a heading specifying the name of the Board and the title or nature of the pleading, shall state material factual allegations and state concisely the action the Board is being requested to take, shall contain the name and address of the petitioner, and shall be signed by the party filing the pleading, or when represented by an attorney, the signature of that attorney.

005.02D1a. Attorneys shall also include their address, telephone number and bar number.

005.02D1b. The initial petition shall also contain the name and address of the respondent.

005.02D2. All pleadings shall be made on white, letter sized (8½ x 11) paper and shall be legibly typewritten, photo statically reproduced, printed or handwritten. If handwritten, a pleading must be written in ink.

005.02E. All pleadings shall be filed with the Board at its official office. Filing may be accomplished by personal delivery or mail and will be received during regular office hours of the Board.

005.02F. The Board shall serve a copy of the petition on each respondent listed in the petition personally or by first-class or certified mail. Written proof of such service shall be filed with the Board. Each respondent who chooses to file a responsive pleading must do so within 20 days from the date of personal service or the date of Board mailing of the petition.

005.02G. All pleadings subsequent to the initial petition shall be served by the party filing such pleading upon all attorneys of record or other representatives of record and upon all unrepresented parties. Service shall be made personally or by first-class or certified mail. Written proof of such service shall be filed with the Board.

005.02H. Unless state law provides that a hearing is not required, a hearing date shall be set by the Board in accordance with statutory requirements. A written notice of the time and place of hearing and the name of the hearing officer, if known, shall be served by the Board upon all attorneys of record or other representatives of record and upon all unrepresented parties. The notice must include a proof of such service and will be filed with the Board.

005.02I. In computing time prescribed or allowed by these rules and regulations or by any applicable statute in which the method of computing time is not specifically provided, days will be computed by excluding the day of the act or event and including the last day of the period. If the last day of the period falls on a Saturday, Sunday, or state holiday, the period shall include the next working day.

005.03 Intervention in a Contested Case.

005.03A. Intervention in a contested case shall be allowed when the following requirements are met:

005.03A1. A petition for intervention must be submitted in writing to the hearing officer or designee at least five working days before the hearing. Copies must be mailed by the petitioner for intervention to all parties named in the hearing officer’s notice of the hearing;

005.03A2. The petition must state facts demonstrating that the petitioner’s legal rights, duties, privileges, immunities, or other legal interests may be substantially affected by the proceeding or that the petitioner qualifies as an intervenor under any provision of law; and

005.03A3. The hearing officer or designee must determine that the interests of justice and the orderly and prompt conduct of the proceedings will not be impaired by allowing the intervention.

005.03B. The hearing officer or designee may grant a petition for intervention at any time upon determining that the intervention sought is in the interests of justice and will not impair the orderly and prompt conduct of the proceedings.

005.03C. If a petitioner qualifies for intervention, the hearing officer or designee may impose conditions upon the intervenor’s participation in the proceedings, either at the time that intervention is granted or at any subsequent time. Those conditions may include:

005.03C1. Limiting the intervenor’s participation to designated issues in which the intervenor has a particular interest demonstrated by the petition;

005.03C2. Limiting the intervenor’s use of discovery, cross-examination, and other procedures so as to promote the orderly and prompt conduct of the proceedings; and

005.03C3. Requiring two or more intervenor’s to combine their presentation of evidence and argument, cross-examination, discovery, and other participation in the proceedings.

005.03D. The hearing officer or designee, at least 24 hours before the hearing, shall issue an order granting or denying each pending petition for intervention, specifying any conditions and briefly stating the reasons for the order.

005.03D1. The hearing officer or designee may modify the order at any time, stating the reasons for the modification.

005.03D2. The hearing officer or designee shall promptly give notice of an order granting, denying, or modifying intervention to the petitioner for intervention and to all parties.

005.04 Hearing Officer; criteria.

005.04A. The Board or its chair may delegate to a hearing officer, including a Board member, the functions of conducting a prehearing conference and/or a hearing and submitting a recommended decision to the Board.

005.04B. A person who has served as investigator, prosecutor, or advocate in a contested case or in its prehearing stage may not serve as hearing officer or assist or advise a hearing officer in the same proceeding except as provided in subsection 005.04D.

005.04C. A person who is subject to the authority, direction, or discretion of one who has served as investigator, prosecutor, or advocate in a contested case or in its prehearing stage may not serve as hearing officer or advise a hearing officer in the same proceeding except as provided in subsection 005.04D.

005.04D. If all parties consent, a person who has served as, or who is subject to the authority, direction, or discretion of one who has served as investigator, prosecutor, or advocate in a contested case or in its prehearing stage may assist a hearing officer in the preparation of orders.

005.04E. A person who has participated in a determination of probable cause or other equivalent preliminary determination in a contested case may serve as hearing officer or assist or advise a hearing officer in the same proceeding.

005.04F. A person may serve as hearing officer at successive stages of the same contested case.

005.05 Prehearing Procedures

005.05A. Prehearing conferences and orders. A hearing officer designated to conduct a hearing may determine, subject to the Board’s rules and regulations, whether a prehearing conference will be conducted. If a prehearing conference is not held, a hearing officer for the hearing may issue a prehearing order, based on the pleadings, to regulate the conduct of the proceedings.

005.05A1. If a prehearing conference is conducted:

005.05A2. The hearing officer shall promptly notify the Board of the determination that a prehearing conference will be conducted. The Board may assign another hearing officer for the prehearing conference; and

005.05A3. The hearing officer for the prehearing conference shall set the time and place of the conference and give reasonable written notice to all parties and to all persons who have filed written petitions to intervene in the matter. The Board shall give notice to other persons entitled to notice.

005.05A4. The notice referred to in subsection 005.05A3 shall include the following:

005.05A4 (a). The names and mailing addresses of all parties and other persons to whom notice is being given by the hearing officer;

005.05A4 (b). The name, official title, mailing address, and telephone number of any counsel or employee who has been designated to appear for the Board;

005.05A4 (c). The official file or other reference number, the name of the proceeding, and a general description of the subject matter;

005.05A4 (d). A statement of the time, place, and nature of the prehearing conference;

005.05A4 (e). A statement of the legal authority and jurisdiction under which the prehearing conference and the hearing are to be held;

005.05A4 (f). The name, official title, mailing address, and telephone number of the hearing officer for the prehearing conference;

005.05A4 (g). A statement that a party who fails to attend or participate in a prehearing conference, hearing, or other stage of a contested case or who fails to make a good faith effort to comply with a prehearing order may be held in default under the Administrative Procedure Act; and

005.05A4 (h). Any other matters that the hearing officer considers desirable to expedite the proceedings.

005.05B. The hearing officer shall conduct a prehearing conference, as may be appropriate, to deal with such matters as exploration of settlement possibilities, preparation of stipulations, clarification of issues, rulings on identity and limitation of the number of witnesses, objections to proffers of evidence, determination of the extent to which direct evidence, rebuttal evidence, or cross-examination will be presented in written form and the extent to which telephone, television, or other electronic means will be used as a substitute for proceedings in person, order of presentation of evidence and cross-examination, rulings regarding issuance of subpoenas, discovery orders, and protective orders, and such other matters as will promote the orderly and prompt conduct of the hearing. The hearing officer shall issue a prehearing order incorporating the matters determined at the prehearing conference.

005.05C. The hearing officer may conduct all or part of the prehearing conference by telephone, television, or other electronic means if each participant in the conference has an opportunity to participate in, to hear, and, if technically feasible, to see the entire proceeding while it is taking place.

005.06. Discovery in contested cases.

005.06A. The hearing officer or a designee, at the request of any party or upon the hearing officer’s own motion, may issue subpoenas, discovery orders, and protective orders in accordance with the applicable statutes except as may otherwise be prescribed by law. Subpoenas and orders issued under this subsection may be enforced by the district court.

005.06B. Any prehearing motion to compel discovery, motion to quash, motion for protective order or other discovery-related motion shall:

005.06B1. Quote the interrogatory, request, question, or subpoena at issue, or be accompanied by a copy of the interrogatory, request, subpoena or excerpt of a deposition;

005.06B2. State the reasons supporting the motion;

005.06B3. Be accompanied by a statement setting forth the steps or efforts made by the moving party or his or her counsel to resolve by agreement the issues raised and that agreement has not been achieved; and

005.06B4. Be filed with the Board. The moving party must serve copies of all such motions to all parties to the contested case.

005.06C. Other than is provided in subsection 005.06 B4 above, discovery materials need not be filed with the Board.

005.07. Continuances. The hearing officer may, in his or her discretion, grant extensions of time or continuances of hearings upon the hearing officer’s own motion or at the timely request of any party for good cause shown. A party must file a written motion for continuance which states in detail the reasons why a continuance is necessary and serve a copy of the motion on all other parties.

005.07A. Good cause. Good cause for an extension of time or continuance may include, but is not limited to, the following:

005.07A1. Illness of the party, legal counsel or witness;

005.07A2. A change in legal representation; or

005.07A3. Settlement negotiations are underway.

005.08. Amendments.

005.08A. A petition may be amended at any time before an answer is filed or is due if notice is given to the respondent or his or her attorney. In all other cases, a petitioner must request permission to amend from the hearing officer.

005.08B. A hearing officer may also allow, in his or her discretion, the filing of supplemental pleadings alleging facts material to the case occurring after the original pleadings were filed. A hearing officer may also permit amendment of pleadings where a mistake appears or where amendment does not materially change a claim or defense.

005.09. Informal Disposition. Unless otherwise precluded by law, informal disposition may be made of any contested case by stipulation, agreed settlement, consent order, or default.

005.10 Conducting a contested case hearing.

005.10A. Order. At the discretion of the hearing officer, the hearing may be conducted in the following order:

005.10A1 The hearing is called to order by the hearing officer. Any preliminary motions, stipulations or agreed orders are entertained.

005.10A2. Each party may be permitted to make an opening statement. Opening statements take place in the same order as the presentation of evidence.

005.10A3. Presentation of evidence.

005.10A3(a). Evidence will be received in the following order:

005.10A3(a) 1. Evidence is presented by the petitioner;

005.10A3(a) 2. Evidence is presented by the respondent;

005.10A3(a) 3. Rebuttal evidence is presented by the petitioner; and

005.10A3 (a) 4. Surrebuttal evidence is presented by the respondent.

005.10A3(b). With regard to each witness who testifies, the following examination may be conducted:

005.10A3 (b)1. Direct examination conducted by the party who calls the witness;

005.10A3 (b) 2. Cross-examination by the opposing party;

005.10A3 (b) 3. Redirect examination by the party who called the witness; and

005.10A3 (b) 4. Recross-examination by the opposing party.

005.10A4. After the evidence is presented, each party may have opportunity to make a closing argument. Closing arguments shall be made in the same order as the presentation of evidence. The hearing officer may request that the parties submit briefs in lieu of closing arguments.

005.10B. Evidence.

005.10B1. In contested cases, the Board or hearing officer may admit and give probative effect to evidence which possesses probative value commonly accepted by reasonably prudent persons in the conduct of their affairs and may exclude incompetent, irrelevant, immaterial and unduly repetitious evidence.

005.10B2. Any party to a formal hearing before the Board, from which a decision may be appealed to the courts of this state, may request that the Board be bound by the rules of evidence applicable in district court by delivering to the Board at least three days prior to the holding of the hearing a written request therefore. Such request shall include the requesting party’s agreement to be liable for the payment of costs incurred thereby and upon any appeal or review thereof, including the cost of court reporting services which the requesting party shall procure for the hearing.

005.10B3. Documentary evidence may be received in the form of copies or excerpts or incorporated by reference.

005.10B4. All evidence including records and documents in the possession of the Board of which it desires to avail itself shall be offered and made a part of the record in the case. No factual information or evidence other than the record shall be considered in the determination of the case.

005.10B5. A hearing officer or designee may administer oaths and issue subpoenas in accordance with the rules of civil procedure except as may otherwise be prescribed by law. Subpoenas and orders issued under this subsection may be enforced by the district court.

005.10B6. The Board shall give effect to the rules of privilege recognized by law.

005.10B7. The Board may take official notice of cognizable facts and in addition may take official notice of general, technical, or scientific facts within its specialized knowledge and the rules and regulations adopted and promulgated by such Board.

005.10B7 (a). Parties shall be notified either before or during the hearing or by reference in preliminary reports or otherwise of materials so noticed.

005.10B7 (b). Parties shall be afforded an opportunity to contest facts so noticed.

005.10B7 (c). The record shall contain a written record of everything officially noticed.

005.10B8. The Board may utilize its experience, technical competence and specialized knowledge in the evaluation of the evidence presented to it.

005.11. Conducting the hearing by electronic means. The hearing officer may conduct all or part of the hearing by telephone, television, or other electronic means if each participant in the hearing has an opportunity to participate in, to hear, and, if technically feasible, to see the entire proceeding while it is taking place.

005.12. Official record.

005.12A. The Board shall prepare an official record, which shall include testimony and exhibits, in each contested case, but it shall not be necessary to transcribe the record of the proceedings unless requested for purpose of rehearing or appeal, in which event the transcript and record shall be furnished by the Board upon request and tender of the cost of preparation.

005.12B. The Board shall maintain an official record of each contested case under the Administrative Procedure Act for at least four years following the date of the final order.

005.12C. The Board record shall consist only of the following:

005.12C1. Notices of all proceedings;

005.12C2. Any pleadings, motions, requests, preliminary or intermediate rulings and orders, and similar correspondence to or from the Board pertaining to the contested case;

005.12C3. The record of the hearing before the Board, including all exhibits and evidence introduced during such hearing, a statement of matters officially noticed by the Board during the proceeding, and all proffers of proof and objections and rulings thereon; and

005.12C4. The final order.

005.12D. As provided in 005.04, the hearing officer or Board member, or employee who is or may reasonably be expected to be involved in the decision making process of the contested case who receives or who makes or knowingly causes to be made an ex parte communication as set forth in that subsection shall make the appropriate filings which shall be included in the official record of the contested case.

005.12E. Except to the extent that the Administrative Procedure Act or another statute provides otherwise, the Board record shall constitute the exclusive basis for Board action in contested cases under the act and for judicial review thereof.

005.13. Costs. All costs of a contested case may be assessed to the party or parties against whom a final decision is rendered.

005.14 Decision and Order in a contested case.

005.14A. Every decision and order adverse to a party to the proceeding, rendered by an Board in a contested case, shall be in writing or stated in the record and shall be accompanied by findings of fact and conclusions of law.

005.14A. The decision and order should include:

005.14A 1. The name of the Board and name of the proceeding;

005.14A 2. The time and place of the hearing;

005.14A 3. The names of all parties or their attorneys who entered an appearance at the hearing;

005.14A 4. The findings of fact consisting of a concise statement of the conclusions upon each contested issue of fact;

005.14A 5. The conclusions of law consisting of the applications of the controlling law to the facts found and the legal results arising there from; and

005.14A 6. The order consisting of the action taken by the Board as a result of the facts found and the legal conclusions arising there from.

005.14B. Parties to the proceeding shall be notified of the decision and order in person or by mail. A copy of the decision and order and accompanying findings and conclusions shall be delivered or mailed upon request to each party or his or her attorney of record.

005.15 Appeals.

005.15A. Any person aggrieved by a final decision in a contested case is entitled to judicial review under the Administrative Procedure Act or to resort to such other means of review as may be provided by law.

005.15B. Parties desiring to appeal a Board decision must file a petition for review in the district court of the county where the Board action is taken within thirty days after the service of the final decision by the Board. The thirty day period for appeal commences to run from the date of mailing of the notice of order and decision to the parties or their attorneys of record. Service of the petition and summons must be made in accordance with Nebraska law.

005.15C. Unless otherwise provided by statute, the procedures of Neb. Rev. Stat. § 84-917 govern the procedure for taking an appeal.

006 Investigation of complaints and finding of probable cause . Investigations of complaints, including matters brought to the Board’s attention without a complaint from the public, shall be for the purpose of determining whether there is probable cause to institute proceedings under 005, “Contested Case,” for violations of the Act, or the Board’s Rules and Regulations.

006.01. The Board may designate one of its members, or any other person of appropriate competence, to serve as its investigating officer to obtain information relative to the complaint.

006.02 Upon completion of his investigation, the investigating officer shall file and report as to his findings with the Board. The investigating officer will recommend that the Board either find probable cause and schedule a contested case or else lack of probable cause and dismiss the complaint. The Board’s determination shall be on the basis of the investigating officer’s report. The report may be returned for further investigation.

006.03 The report of the investigating officer, the testimony, and the documents gathered during the investigation shall be treated as confidential information and as records which may be withheld from the public pursuant to Neb. Rev. Stat. § 84-712.05.

006.04 Upon the findings of probable cause, if the subject of the investigation is the holder of a CPA certificate or a permit to practice, or an inactive registration, the Board shall issue a petition and hold a public hearing on the petition in accordance with Chapter 4 005. If the subject of the investigation is not a holder of a CPA certificate or a permit to practice or an inactive registration, the Board may take appropriate action pursuant to either Section 1-165 or Section 1-166 of the Act; or the Board may, under its own motion, issue a cease and desist order to such offender.

006.05 Disposition may be made of any complaint by stipulation, agreed settlement, or consent order without a finding of probable cause prior to the beginning of a contested case. Such disposition shall be binding on all parties to the complaint.

007 Adoption of Rules

007.01 Any interested person may petition the Board requesting the promulgation, amendment, or repeal of any rule. Such petition shall be submitted in written form and shall give the specific language of the petitioner‘s proposal.

007.02 No rule shall be adopted, amended, or repealed by the Board except at a public hearing held during a regularly scheduled meeting of the Board.

007.03 Notice of such public hearing shall be given at least thirty days prior to the hearing and in accordance with the notice for the open meeting of the Board at which the adoption, amendment, or repeal of such rule is to be considered.

007.04 Draft copies or working copies of all rules to be considered for adoption, amendment, or repeal by the Board shall be available to the public at the offices of the Board and at the offices of the Revisor of Regulations at the time notice is given and until two (2) weeks following the public hearing.

007.05 All hearings for the adoption, amendment, or repeal of a rule shall be open to the public.

008 Conflicts of Interest; Board members; participation; disclosure .

008.01 Pursuant to Nebraska Revised Statutes, Section 1-108.01, the Board shall follow the definitions and procedures set forth in the Nebraska Political Accountability and Disclosure Act and any rules and regulations promulgated pursuant to such Act and as amended from time to time with respect to conflicts of interest of Board members.

Statutory Authority: Section 1-108, Section 1-112, Sections 84-904 to 84-917, Section 84-712.05 and Sections 84-1408 to 84-1414, R.R.S. 1943

History

• Effective 2024-05-05

Chapter 5 Rules of Professional Conduct

Neb. Admin. Code tit. 288, ch. 5 Rules of Professional Conduct {#sec-288-nac-5 omnilex-key=us-ne-regs-official--title-288--288 NAC 5}

001 Declaration of Purpose . Pursuant to the provisions of Section 1-112 of the Act, for the purpose of establishing and maintaining high standards of integrity and dignity in the profession of public accountancy, the following Rules of Professional Conduct are adopted:

002 Independence

002.01 Independence. A licensee who is performing an engagement in which the licensee will issue a report on financial statements of any client (other than a compilation report in which a lack of independence is disclosed) must be independent with respect to the client in fact and appearance. Independence will be considered to be impaired, if, for example:

002.01A During the period of his professional engagement, or at the time of expressing his opinion, the licensee, his firm, or any member thereof

002.01A1 had or was committed to acquire any direct or material indirect financial interest in the enterprise;

002.01A2 was a trustee of any trust or the personal representative of any estate that had or was committed to acquire any direct or material indirect financial interest in the enterprise;

002.01A3 had any joint closely held business investment with the enterprise or any officer, director or principal stockholder thereof which was material in relation to the net worth of the licensee or the enterprise;

002.01A4 had any loan to or from the enterprise or any officer, director or principal stockholder thereof, other than the following kinds of loans from a financial institution when made under normal lending procedures, terms and requirements: (1) loans obtained by the licensee or his firm which are not material in relation to the net worth of such borrower; (2) home mortgages; and (3) other secured loans, except those loans secured solely by the guarantee of the licensee or his firm.

002.01B Either during the period covered by the financial statements, the period of the professional engagement, or at the time of expressing an opinion, the licensee

002.01B1 was connected with the enterprise as a promoter, underwriter, voting trustee, a director or officer or in any capacity equivalent to that of a member of management or of an employee; or

002.01B2 was the trustee for any pension or profit-sharing trust of the enterprise.

003 Integrity and Objectivity . A licensee shall not in the performance of professional services knowingly misrepresent facts, nor subordinate his judgment to others. In tax practice, a licensee may resolve doubt in favor of his client as long as there is reasonable support for his position.

004 Competence and Technical Standards

004.01 Competence. A licensee shall undertake only those engagements which he or his firm can reasonably expect to complete with professional competence. This shall mean only those which he or someone in his firm is qualified, either by experience or education, to handle.

004.02 Auditing Standards. A licensee shall not permit his name to be associated with financial statements in such a manner as to imply that he is acting as an independent public accountant unless he has complied with the applicable generally accepted auditing standards. Statements issued by the American Institute of Certified Public Accountants, and other pronouncements having similar generally recognized authority, are deemed to be interpretations of generally accepted auditing standards.

004.03 Accounting Principles. A licensee shall not express an opinion that financial statements are presented in conformity with generally accepted accounting principles if such statements contain any departure from an accounting principle, which has a material effect on the financial statements taken as a whole, unless the licensee can demonstrate that due to unusual circumstances, the financial statement would otherwise have been misleading. In such cases, his report must describe the departure, the approximate effects thereof, if practicable, and the reasons why compliance with the principle would result in a misleading statement. Pronouncements issued by the Financial Accounting Standards Board and other pronouncements having similar generally recognized authority are deemed to be generally accepted accounting principles.

004.04 Forecasts. A licensee shall not in the performance of professional services permit his name to be used in conjunction with any forecast of future transactions in a manner which may lead to the belief that the licensee vouches for the achievability of the forecast.

004.05 Other professional standards. A licensee, in the performance of management advisory services or accounting and review services, shall conform to the professional standards applicable to such services. For purposes of these rules, such professional standards are considered to be defined by Statements on Management Advisory Services and Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants and by similar pronouncements by other entities having generally recognized authority.

005 Responsibility to Clients

005.01 Confidential Client Information. A licensee shall not disclose any confidential information obtained in the course of performing professional services except with the consent of the client. Provided, however, this rule shall not be construed:

005.01A to relieve the licensee of his obligations under 288 NAC 5-004.02 and 004.03 relating to auditing standards and accounting principles;

005.01B to affect in any way his compliance with the validly issued subpoena or summons enforceable by order of any Court or agency;

005.01C to prohibit review of the licensee’s professional practices as a part of voluntary quality review under Board authorization; or

005.01D to preclude a licensee from responding to any inquiry made by the Board or by an authorized investigative or disciplinary body, which in the opinion of the Board is duly constituted.

The Board shall not disclose any confidential client information which comes to its attention from licensees involved in disciplinary proceedings or otherwise in carrying out its official responsibilities, providing, however, this prohibition shall not restrict the exchange of information with any authorized and duly constituted investigative or disciplinary body.

005.02 Records. A licensee shall furnish to his client or former client, regardless of unpaid fees outstanding, upon request made within a reasonable time after original issuance of the document:

005.02A a copy of a tax return of the client;

005.02B a copy of any report; or other document, issued by the licensee to or for such client;

005.02C 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 for the client’s account, but the licensee may make and retain copies of such documents when they form the basis for work done by him; and

005.02D a copy of the licensee’s working papers, to the extent that such working papers include records which would ordinarily constitute part of the client’s books and records and are not otherwise available to the client.

005.02E the licensee may charge reasonable expenses for furnishing the records.

005.03 Contingent Fees. A licensee in public practice shall not:

005.03A Perform for a contingent fee any professional services for, or receive such a fee from a client for whom the licensee or the licensee’s firm performs

005.03A1 an audit or review of a financial statement; or

005.03A2 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

005.03A3 an examination of prospective financial information; or

005.03B Prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.

The prohibition in 005.03A above applies during the period in which the licensee or the licensee’s firm is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in any such listed services.

Except as stated in the next sentence, a contingent fee is 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 such service. Solely for purposes of this rule, fees are not regarded as being contingent if fixed by courts or other public authorities, or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies.

Any licensee who accepts a contingent fee or expects to be paid a contingent fee shall provide written disclosure of such acceptance or payment and the basis for determining such fee to the client.

Written disclosure statements, as set forth by Attachment 1 to this Chapter, are to be executed in duplicate, with a receipt acknowledgement signed and dated by the client, and maintained by the licensee for a period of five years. Licensees are subject to a random audit by the Board or its designee for compliance with the written disclosure provisions of this rule.

A licensee’s fees may vary depending, for example, on the complexity of services rendered.

006 Advertising and Solicitation .

006.01 A licensee shall not use or participate in the use of any form of communication, written or oral, having reference to his professional services, which contains a false, fraudulent, misleading, deceptive or unfair statement or claim, nor any form of communication having reference to his professional services which is accomplished or accompanied by coercion, duress, compulsion, intimidation, threats or harassing conduct. A false, fraudulent, misleading, deceptive or unfair statement or claim includes, but is not limited to, a statement or claim which:

006.01A Contains a misrepresentation of fact; or

006.01B Is likely to mislead or deceive because it fails to make full disclosure of relevant facts;

006.01C Is intended or likely to create false or unjustified expectations of favorable results; or

006.01D Implies educational or professional attainments or licensing recognition not supported in fact; or

006.01E 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 may reasonably be expected to affect the fees that will in fact be charged; or

006.01F Contains other representations or implications that in reasonable probability will cause a person of ordinary prudence to misunderstand or be deceived.

007 Other Responsibilities and Practices

007.01 Acts discreditable. A licensee shall not commit an act that reflects adversely on his fitness to engage in the practice of public accountancy.

007.02 Commissions and referral fees.

007.02A Prohibited Commissions. A licensee in public practice shall not for a commission recommend or refer to a client any product or service, or for a commission recommend or refer any product or service to be supplied by a client, or receive a commission, when the licensee or the licensee’s firm also performs for that client:

007.02A1 an audit or review of a financial statement; or

007.02A2 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

007.02A3 an examination of prospective financial information. This prohibition applies during the period in which the licensee is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in such listed services.

007.02B Disclosure of Permitted Commissions. A licensee in public practice who is not prohibited by this rule from performing services for or receiving a commission and who is paid or expects to be paid a commission shall provide written disclosure of that fact and the basis for determining such commission to any person or entity to whom the licensee recommends or refers a product or service to which the commission relates.

007.02C Referral Fees. Any licensee who accepts a referral fee for recommending or referring any service of a CPA to any person or entity or who pays a referral fee to obtain a client shall provide written disclosure of such acceptance or payment and the basis for determining such fee to the client.

007.02D Written Disclosure Statements. Written disclosure statements, as set forth by Attachment 1 to this Chapter, are to be executed in duplicate, with a receipt acknowledgement signed and dated by the client, and maintained by the licensee for a period of five years. Licensees are subject to a random audit by the Board or its designee for compliance with the written disclosure provisions of this rule.

007.02E Disclosure Form for commission, contingent fee, or referral fee.

COMMISSION, CONTINGENT FEE OR REFERRAL FEE DISCLOSURE

This written disclosure form is required by the Nebraska Board of Public Accountancy for use by duly licensed Certified Public Accountants (CPA’s) who intend to accept from any client compensation in the form of a commission, a contingent fee or a referral fee. CPA’s are prohibited from accepting a commission or contingent fee as compensation from a client for whom the CPA or the CPA’s firm also performs:

1. an audit or review of a financial statement; or
2. a compilation of a financial statement when the CPA expects, or reasonably might expect, that a third party will use the financial statement and the CPA’s compilation report does not disclose a lack of independence; or
3. an examination of prospective financial information.

A CPA also cannot prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client. Except as stated in the next sentence, a contingent fee is 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 such service. Solely for purposes of this rule, fees are not regarded as being contingent if fixed by courts or other public authorities, or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies.

Any CPA who accepts a commission, contingent fee or referral fee or expects to be paid in such a manner shall provide written disclosure of such acceptance or payment and the basis for determining such fee to the client.

BASIS FOR DETERMINING FEE:

---

---

---

Further, you are hereby informed that as a client of my firm or myself, I may have access to confidential financial information that would not otherwise be available to me if a client relationship did not exist prior to my solicitation of business. Your receipt of this disclosure constitutes your full understanding of the relationship between me, my firm, and you as a client.

Offered by:

---

PRINTED NAME OF CPA

---

CERTIFICATE #

---

DATE

Accepted by:

---

PRINTED NAME OF CLIENT(S)

---

SIGNATURE OF CLIENT(S)

---

DATE

This form is to be executed in duplicate with one copy to be presented to the client at the time of signature. The CPA is required to maintain this form in their files for a minimum of five years and is subject to a random audit by the Board or its designee for compliance with written disclosure provisions. Questions on this form or the above prohibitions and conditions should be directed to the Nebraska Board of Public Accountancy, P.O. Box 94725, Lincoln, NE 68509, (402) 471-3595.

007.03 Form of Practice and Name. A licensee may practice public accountancy, whether as an owner or employee, only in the form of a proprietorship, a partnership, a professional corporation, a limited liability company or any other permissible form of practice. A licensee shall not practice under a firm name which includes any name that would have the capacity or tendency to deceive or mislead or is misleading as to the type of organization (proprietorship, partnership, professional corporation, limited liability company or other permissible form of practice). Fictitious names are not precluded from consideration under this rule. However, names of one or more past partners, shareholders or limited liability company members may be included in the firm name of a successor partnership, corporation, limited liability company or other permissible successor business entity. A firm name is deemed misleading if it includes the name of a person who is not a CPA. A firm name is deemed misleading if it includes the terms “& Associates,” “& Company,” or “Group,” or similar plural terms, if the firm has only one individual practicing in the firm with a current permit to practice as a CPA. A permit holder surviving the death or withdrawal of all other permit holders may continue to practice under the firm name for up to two years after becoming the sole practicing permit holder in the firm.

Any CPA firm that has continuously used an assumed name approved by the Board prior to July 19, 2005 may continue to use the assumed name, so long as the CPA firm is only owned by an individual practitioner, partner, or shareholder, who obtained such Board approval.

007.04 Professional Corporations. A corporation registered under Section 1-134 of the Act and any corporation granted a permit under Section 1-136 of the Act shall be subject to the Rules of Professional Conduct. Any shareholder who ceases to be eligible to be a shareholder shall be required to dispose of all of his or her shares within a reasonable period to a person qualified to be a shareholder or to the corporation. The principal executive officer of a professional corporation licensed in Nebraska to practice public accounting shall be a shareholder and a director who is a licensed certified public accountant. Directors and officers who are not licensees shall not exercise any authority whatsoever over professional matters relating to the practice of public accountancy.

007.05 Communications. Any requested response to a communication from the Board shall be within thirty (30) calendar days of the receipt of the communication.

007.06 Obligation of certificate holders to notify the Board of changes of address and other information. Each certificate holder shall notify the Board in writing within thirty days of any change of address or change of employment.

Statutory Authority: Section 1-112 R.R.S. 1943

History

• Effective 2010-08-31

Chapter 6 Certified Public Accountant Examination

Neb. Admin. Code tit. 288, ch. 6 Certified Public Accountant Examination {#sec-288-nac-6 omnilex-key=us-ne-regs-official--title-288--288 NAC 6}

001 Time and Place for Filing Applications

001.01 Applications to take the Certified Public Accountant Examination must be made on a form provided by the Board or its designee and filed with the Board or its designee.

001.02 An application will not be considered filed until the application fee and examination fee required by these Rules and all required supporting documents have been received. Supporting documents shall include proof of identity as determined by the Board and specified on the application form, official transcripts, proof the Candidate has satisfied the education requirement, and disclosure of any conduct as outlined in 002.02.

001.03 The Board or its designee will forward notification of eligibility for the computer-based examination to NASBA’s National Candidate Database.

002 Character and Fitness Standards

002.01 Purpose. The primary purpose of character and fitness screening for taking the Uniform CPA exam and licensure is to assure the protection of the public. The CPA licensing process is incomplete if only testing for competence is undertaken. The public is adequately protected only by a system that evaluates character and fitness as those elements relate to the character of the applicant and to the practice of public accountancy.

002.02 Causes for denial to sit for CPA examination or licensure. The revelation or discovery of any of the following facts from any jurisdiction shall be grounds for denial to sit for the CPA exam or issuance of a Board certificate or an initial permit to practice public accountancy:

1. A civil judgment, criminal conviction or civil penalty an element of which judgment, conviction, or penalty involves dishonesty, fraud, deceit, or misrepresentation;
2. violation of a court order;
3. denial of professional licensure or disciplinary action by a professional regulatory agency or professional organization;
4. conviction of a felony.

002.03 Denial to sit for the Uniform CPA Examination and licensure. The Board may refuse to allow a person to sit for the Uniform CPA Examination or to issue a Board certificate or an initial permit on the grounds of failure to meet the standards as outlined in Subsection 002. If a person is found to be ineligible to sit for the Uniform CPA Examination or to be issued a Board certificate or an initial permit the person shall have the right to a hearing before the Board.

002.04 USE OF INFORMATION. Upon appeal by applicant of a denial under Subsection 002.02, the Board will determine whether the present character and fitness of an applicant qualify the pplicant to practice public accountancy, despite the existence of a cause under Subsection 002.02. In making this determination, the following factors should be considered in assigning weight and significance to prior conduct:

1. the applicant's age at the time of the conduct;
2. the recency of the conduct;
3. the reliability of the information concerning the conduct;
4. the seriousness of the conduct;
5. the factors underlying the conduct;
6. the cumulative effect of the conduct or information;
7. the evidence of rehabilitation;
8. the applicant's positive social contributions since the conduct;
9. the applicant's candor in the application process;
10. the materiality of any omissions or misrepresentations.

003 Time and Place of Examinations

003.01 Eligible Candidates shall independently contact the Board or a test center operator identified by the Board to schedule the time and place for the examination at an approved test site.

004 Conduct of Examinations

004.01 The Board may make use of the uniform certified public accountants examination prepared by the American Institute of Certified Public Accountants (AICPA) or another nationally recognized organization. The Board may also make use of the advisory grading service provided by the AICPA or another nationally recognized organization.

004.02 The candidate may be photographed or other biometric identification taken by the test administrator at each appearance for the examination. The candidate will be required to provide proof of identification.

004.03 Cheating by a Candidate in applying for, taking or subsequent to the examination will be deemed to invalidate any grade otherwise earned by a Candidate on any Test Section of the examination, and may warrant summary expulsion from the test site and disqualification from taking the examination for a specified period of time.

004.03A For purposes of this Rule, the following actions or attempted activities, among others, may be considered cheating:

(1) Falsifying or misrepresenting educational credentials or other information required for admission to the examination; (2) Communication between Candidates inside or outside the test site or copying another Candidate's answers while the examination is in progress; (3) Communication with others inside or outside the test site while the examination is in progress; (4) Substitution of another person to sit in the test site in the stead of a Candidate; (5) Reference to crib sheets, textbooks or other material or electronic media (other than that provided to the Candidate as part of the examination) inside or outside the test site while the examination is in progress. (6) Violating the nondisclosure prohibitions of the examination or aiding or abetting another in doing so, or otherwise participating in the collection of Test Items for use, redistribution or sale. (7) Retaking or attempting to retake a Test Section by an individual holding a valid Certificate or by a Candidate who has unexpired credit for having already passed the same Test Section, unless the individual has been directed to retake a Test Section pursuant to Board order or unless the individual has been expressly authorized by the Board to participate in a "secret shopper" program.

004.03B In any case where it appears cheating has occurred or is occurring, the Board or its representatives may either summarily expel the Candidate involved from the examination or move the Candidate to a position in the Test Center away from other examinees where the Candidate can be watched more closely.

004.03C In any case where the Board or its representative believes it has evidence a Candidate has cheated on the examination, including those cases where the Candidate has been expelled from the examination, the Board shall conduct an investigation and may conduct a hearing following the examination session for the purpose of determining whether or not there was cheating, and if so, what remedy should be applied. In such proceedings, the Board shall decide:

(1) Whether the Candidate shall be given credit for any portion of the examination completed in that session; and (2) Whether the Candidate shall be barred from taking the examination and if so, for what period of time.

004.03D In any case where the Board or its representative permits a Candidate to continue taking the examination, it may, depending on the circumstances:

(1) Admonish the Candidate; (2) Seat the Candidate in a segregated location; (3) Keep a record of the Candidate's seat location and identifying information, and the names and identifying information of the candidates in close proximity of the Candidate; and/or (4) Notify the National Candidate Database and the AICPA and/or the Test Center of the circumstances, so the Candidate may be more closely monitored in future examination sessions.

004.03E In any case where a candidate is refused credit for a Test Section taken, or is disqualified from taking other sections, the Board or its designee shall give the candidate a statement containing its findings, the evidence upon which the findings are based, and a notice of the right of the candidate to a formal hearing by the Board, with rights of appeal, pursuant to the Administrative Procedure Act.

004.03F In any case in which the Candidate is refused credit for any Test Section of an examination taken, disqualified from taking any Test Section, or barred from taking the examination in the future, the Board will provide to the Board of Accountancy of any other state to which the Candidate may apply for the examination information as to the Board's findings and actions taken.

004.03G Notwithstanding any other provisions under these rules, the Board may postpone scheduled examinations, the release of grades, or the issuance of certificates due to a breach of examination security, unauthorized acquisition or disclosure of the contents of an examination; suspected or actual negligence, errors, omissions, or irregularities in conducting an examination; or for any other reasonable cause or unforeseen circumstance.

004.04 All supplies necessary for the examination will be furnished by the Board or its designee. All supplies furnished by the Board or the test administrator shall remain the administrator's property and must be returned whether used or not.

004.05 The Board or its designee will communicate to each candidate the decisions reached by the Board in his or her case, and shall state the grade received by the candidate on each Test Section.

In no event will any information concerning a candidate's answers be given to anyone other than the candidate himself nor will any of the candidate's examination be accessible for inspection except as otherwise provided for in these regulations.

004.06 Candidates may request a score review to ensure that their exam was scored consistent with the scoring guides, and/or they may request a score appeal to review their incorrect responses under the auspices of the Board of Accountancy.

005 Examination Subjects and Requirements

005.01 The examination shall test the knowledge and skills required for performance as an entry-level certified public accountant. The examination shall include the subject areas of accounting and auditing and related knowledge and skills as the Board may require.

005.02 A Candidate shall be required to pass all Test Sections of the examination in order to qualify for certification. Upon receipt of the advisory grades to the examination provider, the provider shall report the results to the Candidate and the Board. The Board may review any examination grades at their discretion. The Candidate must on each test section, attain the uniform passing grade established through a psychometrically acceptable standard-setting procedure.

005.03 A Candidate shall be required to pass all sections of the examination in order to qualify for certification.

005.03A A Candidate may take the required Test Sections individually and in any order. Credit for passing any Test Section(s) shall be valid for that Test Section for thirty (30) months from the date the passing score for such Test Section is released by NASBA to the Candidate or the Board, as the case may be, regardless of the number of Test Sections taken or having to attain a minimum score on any failed section(s).

1. A Candidate shall pass all required Test Sections within a rolling thirty (30) month period. The rolling period begins on the date the first passing score(s) are released by NASBA to the Candidate or the Board, as the case may be. The rolling period concludes on the date the Candidate sits for the final Test Section passed, regardless of when the score is released by NASBA for the final Test Section.
2. A Candidate who earns initial credit on one or more Test Section(s) of the CPA examination must sit for and complete the remaining required Test Section(s) of the examination by midnight on the last day of the rolling period.
3. If all required Test Sections are not passed within this initial thirty (30) month period, credit for the first Test Section(s) passed shall expire and a new rolling period shall begin on the date the second passing score(s) were released by NASBA to the Candidate or the Board, as the case may be, and continue for thirty (30) months from that date. If all required Test Section(s) are not passed within this next rolling period, credit for the second Test Section(s) passed shall expire and a new rolling thirty (30) month period will begin on the date the next Test Section passing score, if any, was released by NASBA to the Candidate or the Board, as the case may be, and this cycle of thirty (30) month rolling periods and Test Section credit expirations will continue until all Test Sections are passed within one thirty (30) month period. Notwithstanding the foregoing, if a Candidate stops testing for a thirty (30) month period, then all credit for previously passed Test Sections shall expire.

005.03B A Candidate shall not retake a failed Test Section until the Candidate has been notified of the score for the most recent attempt of that failed Test Section. A Candidate shall be deemed to have passed the examination if the Candidate obtains credit for passing all required Test Sections in one rolling thirty (30) month period.

005.03C Notwithstanding the requirements of subsections 005.03A, 005.03B, the period of time in which to pass all required Test Section(s) of the examination may be extended by the Board upon a showing that the credit was lost by reason or circumstances beyond the Candidate’s control, and when applicable, on a case-by-case basis.

005.03D A Candidate shall retain credit for any and all required Test Sections of the examination passed as a Candidate of another state if such credit would have been given under then applicable requirements in this or that other State.

005.03E An application for a certificate shall require the examination scores and date of such Test Sections to be provided to the Board by NASBA, examination provider, or the State Board in which the candidate took the examination.

006 Ethics Examination . All successful candidates for the CPA examination seeking certification shall pass an examination in professional ethics as approved by the Board.

007 Examination Fee . The Candidate shall, for each Test Section scheduled by the Candidate to the Board or its designee, pay a Candidate Testing Fee that includes the actual fees charged by the AICPA, National Association of State Boards of Accountancy (NASBA), and the Test Delivery Service Provider, as well as reasonable application fees established by the Board.

A candidate who fails to appear for the examination shall forfeit all fees charged for both the application and the examination unless the Candidate notifies the Board or its designee in writing within 30 days after the examination with an acceptable reason for failing to sit for the examination as scheduled. Acceptable reasons for not sitting shall include a documented illness verified by a medical doctor, death in the immediate family, call to active military service, or any other reason that the Board determines to be unavoidable. Each refunded examination application fee shall be subject to a 25 percent processing fee.

008 Reciprocal Fee . Applications for a Nebraska CPA certificate by reciprocity shall be accompanied by the fee established by the Board.

History

• Effective 2024-05-05

Chapter 7 Permits, Annual Fees, Inactive List

Neb. Admin. Code tit. 288, ch. 7 Permits, Annual Fees, Inactive List {#sec-288-nac-7 omnilex-key=us-ne-regs-official--title-288--288 NAC 7}

001 Permits . Permits to practice public accountancy will be issued for each licensing period and will expire on June 30 of each period. The issuance to an individual of a certificate or initial permit to practice public accountancy may be denied by the Board if the individual does not meet the Character and Fitness Standards as listed in Chapter 6.002 or other requirements within the Public Accountancy Act.

001.01 Issuance of a Permit under PAA Section 1-136.02.

001.01A A certificate holder may apply for issuance of a permit to practice under PAA Section 1-136.02 using forms provided by the Board. The experience form must include a notarized signature of a supervisor who during the time the experience was gained held an active permit to practice as a CPA.

001.01B

The experience required to be demonstrated for issuance of an initial permit to practice pursuant to PAA Section 1-136.02 shall meet the requirements of this rule.

(1) To determine whether the experience is acceptable, the Board may require an applicant to submit an experience form specifying the experience earned,

(2) The applicant shall have their experience verified to the Board by the supervising active permit holder.

(3) The Board may look at such factors as the complexity and diversity of the work.

(4) One year of experience shall consist of full or part-time employment that extends over a period of no less than a year and no more than three

years and includes no fewer than 2,000 hours of performance of services as described in PAA Section 1-136.02(1)(c).

(5) Two years of experience shall consist of full or part-time employment that extends over a period of no less than two years and no more than six

years and includes no fewer than 4,000 hours of performance of services described in PAA Section 1-136.02(1)(c).

001.01CThe certificate holder must submit evidence of his or her experience upon application for an initial permit to practice.

(1) The Board may require anyone who has furnished evidence of an applicant's experience to substantiate the information.

(2) Any applicant may be required to appear before the Board or its representative to supplement or verify evidence of experience.

(3) The Board may inspect documentation relating to an applicant's claimed experience.

(4) Any active permit holder who has been requested by an applicant to submit to the Board evidence of the applicant's experience and has refused

to do so shall upon request of the Board, explain in writing or in person the basis for such refusal.

001.01D Experience submitted shall have been gained no more than 10 years prior to the application or the applicant shall file with the Board properly completed affidavits of successful completion of 120 hours of approved courses of continuing education, including 4 hours of ethic courses, within the three calendar years preceding application.

001.02 Practice Privilege under PAA Section 1-125.01

001.02A An individual whose principal place of business is not in this state and who holds a valid license in good standing as an active Certified Public Accountant from any state shall have all the practice privileges as defined in Chapter 3 of licensees of this state without the need to obtain licensure under PAA Section 1-136 provided that at the time of initial licensure, the individual was required to show evidence of having met the following requirements:

(1) passed the Uniform CPA examination, and

(2) A post-baccalaureate degree with a concentration in accounting or an equivalent and not less than one year of work experience as defined in subsection 001.01B(4) of this Chapter; or

(3) A baccalaureate degree plus an additional 30 semester credit hours with a concentration in accounting or an equivalent and not less than one year of work experience as defined in subsection 001.01B(4) of this Chapter, or

(4) A baccalaureate degree including an accounting concentration or an equivalent and not less than two years of work experience as defined in subsection 001.01B(5) of this Chapter.

001.02B An individual whose principal place of business is not in this state, and who holds or held a valid active license as a Certified Public Accountant from any state, as of December 31, 2024, and as of such date, has practice privileges in this state under PAA Section 1-125.01, shall continue to have all practice privileges in this state without needing to obtain a license under PAA Section 1-136.

002 Annual Fees . Not later than February 1 of each year, the Board shall by resolution establish the fee schedule for all services for the following licensing year.

003 Inactive List . Any certificate holder who has not lost his or her right to issuance or renewal of a permit and who is not actively engaged in the practice of public accountancy in this state, shall make a written application to the Board to be classified as inactive or inactive-retired, or may surrender his or her certificate to the Board. A person classified as inactive shall not be issued a permit to engage in public accountancy, nor be deemed the holder of a “live permit” as defined in Section 1-151 of the Act, but shall be issued an inactive registration for the current licensing period upon the payment of the applicable fee. Inactive registrations will be issued for each licensing period and will expire on June 30 of each period. Once inactive-retired status is approved by the Board it will remain in effect until the certificate holder makes application for change.

003.01 Inactive Registrant; Use of Disclaimer. Whenever using “Certified Public Accountant” or “CPA” with his or her name, an inactive registrant shall use the disclaimer “Inactive Registrant” in parentheses immediately after the title or abbreviation; provided, however, that a certified public accountant exercising the practice privilege pursuant to the Act and the rules of the Board shall not be required to use the disclaimer.

History

• Effective 2026-07-25

Chapter 8 Continuing Education

Neb. Admin. Code tit. 288, ch. 8 Continuing Education {#sec-288-nac-8 omnilex-key=us-ne-regs-official--title-288--288 NAC 8}

001 Purpose . The purpose of this Chapter is to promulgate rules to assure that minimum continuing education requirements are met by all permit holders and thereby to promote the obligations of the permit holders to provide competent professional services for their clients. Failure to comply with the requirements set forth in this Chapter shall be grounds for non-renewal of a permit for the practice of public accountancy.

002 Definitions . As used in this Chapter:

002.01 "Approved course" means a course approved by the Board.

002.02 "Approved sponsor" means an organization which has been approved and designated by the Board whose programs presented in conformity with this Chapter will constitute approved courses.

002.03 "Participant" shall mean a permit holder attending an approved course.

002.04 "Year" shall mean the twelve-calendar-month period of January through December.

002.05 "Hour" shall mean fifty (50) minutes of continuing participation in the program of instruction. “Half hour” means twenty five (25) minutes and shall count toward participation after meeting a first credit hour.

002.06 “Permit Holder” or “holder of a permit” shall mean any person holding a permit to practice public accountancy.

003 Board Duties . Pursuant to Section 1-136.01 of the Act the Board may require each permit holder to furnish evidence of participation in continuing education in accountancy, auditing and related areas as a condition for renewal or reinstatement of the permit issued pursuant to Section 1-136. To assist permit holders to fulfill this requirement, the Board shall:

003.01 Exercise supervisory authority over the administration and reporting of continuing education.

003.02 Approve or deny sponsors, courses, programs, seminars and other educational activities in satisfaction of the minimum educational requirements. All approvals and denials shall be subject to continuous review by the Board.

003.03 Maintain records with respect to approved sponsors and courses and participation in approved courses by participants.

003.04 Provide such forms or instructions concerning information to be provided on alternative forms as are necessary to enable the participants, sponsors and the Board to fulfill their responsibilities.

003.05 Have the authority to request continuing education documentation from any permit holder for up to six years from their last reporting period.

004 Ethics Requirement

004.01 A permit holder must complete 4 hours of ethic courses in every renewal period or reinstatement.

005 Standards for Course Approval . To become an approved course, an educational presentation shall meet the following minimum requirements:

005.01 Quality. The course shall be organized and presented in such manner as to contribute directly to the professional competence of the participant in the practice of public accountancy.

005.02 Subjects. The course shall present a subject matter directly related to the practice of public accountancy or to information or skills reasonably calculated to be utilized by a participant in the practice of public accountancy. The Board recommends that any permit holder performing audits, reviews or compilations obtain a minimum of forty percent (40%) of the required credit hours in Accounting and Auditing coursework.

005.03 Qualifications of Faculty. Each faculty member shall be qualified through academic or practical experience to teach or demonstrate his subject.

005.04 Written Materials. Written manuals, outlines, forms, written materials, or other electronic means are recommended to be distributed to all participants at or prior to the time the course is commenced.

006 Sponsor Approval

006.01 An organization, agency or individual which has as one of its primary purposes the presentation of education programs relating to the practice of public accountancy and has for a period of not less then two preceding years presented annually, one or more courses meeting the standards for course approval prescribed herein may apply to the Board for accreditation as an approved sponsor. A firm may also apply to the Board for designation as an approved sponsor for its in-firm continuing education programs. Application for approval shall be made to the Board on forms supplied by it or alternative forms which contain the necessary information for Board review.

006.02 The Board may at any time re-evaluate an approved sponsor. If the Board determines that there is basis for revocation of the accreditation of an approved sponsor, the Board shall set the matter for hearing and give the sponsor written notice by Certified Mail thirty (30) days in advance of the hearing. The decision of the Board following the hearing shall be final.

006.03 An approved sponsor may announce: "This course has been approved by the Nebraska State Board of Public Accountancy for ____hours credit."

006.04 An approved sponsor must maintain a list of all permit holders who attend each course, the number of hours, and provide the list to the Board upon request.

007 Credit for Attendance or Participation

007.01 One hour credit shall be given for each hour spent by a participant in actual attendance at the approved course. After the first credit hour earned, half hour increments shall count towards participation.

007.02 Credit may be given for time spent by a participant in actual attendance at formal, organized in-firm educational programs which satisfy the Standards for Course Approval whether or not the firm has obtained pre-approval by the Board as a sponsor. The amount of credit to be given shall be determined by the Board.

007.03 Credit may be given to a participant in completing self-study courses or other individual study programs which require advance registration and provide evidence of satisfactory completion of the course material and which satisfy the Standards for Course Approval. Course materials may be requested by the Board. The amount of credit to be given shall be determined by the Board. Not more than 50% of required hours during a licensing or reinstatement period shall be represented by such courses or programs.

007.04 A permit holder serving as an instructor of an approved course shall be entitled to two hours credit for each hour spent as an instructor of an approved course. Not more than 50% of required hours during a licensing or reinstatement period shall be represented by such credits.

007.05 A permit holder may obtain credit for attending a course offered by a college or university which awards degrees in accounting. The amount of credit to be given shall be determined by the Board. Not more than 50% of required hours during a licensing or reinstatement period shall be given for college credit. Each college semester credit hour shall equal 15 hours CPE credit and each college quarter hour shall equal 8 hours CPE credit.

007.06 A participant may apply to the Board for a determination of the amount of credit that will be given for attendance or participation in any continuing education program which is other than an approved course or offered by other than an approved sponsor.

008 Participant and Instructor Credit

008.01 Each permit holder, who seeks to obtain credit for participation in an approved course either, as a participant or instructor shall apply to the Board on forms supplied by the Board or alternative forms which contain the necessary information for Board review.

008.02 A permit holder or an instructor may request that he be granted credit for participation in continuing education programs, which are other than approved courses offered by approved sponsors. In such event, the licensee shall supply information about the programs as requested by the Board, and the decision of the Board concerning the amount of credit to be granted, if any, shall be final.

008.03 Upon request by the Board, evidence of satisfactory completion of the required continuing education courses shall be provided prior to the renewal date of the permit holder’s permit. Permit holders shall maintain evidence of satisfactory completion of continuing education courses for six years.

009 Non-Compliance Review and Hearing

009.01 If a permit holder fails to meet the requirements of Section 1-136.01 of the Act or this Chapter for continuing education, then the Board shall cause a Notice of Non-Compliance to be sent to such permit holder’s last-known address or email as indicated on records maintained in the office of the Board not less than three months prior to the renewal date of the permit holder’s permit. Such Notice shall advise the permit holder of the existence and nature of such noncompliance and that the licensee may file a request for hearing with the Board within fifteen days of the date of mailing of the Notice. If a hearing is not timely requested, the permit holder shall be deemed to have waived any objection to the finding of noncompliance.

009.02 If a hearing is requested by a permit holder determined to be in noncompliance, the Board shall conduct a hearing at which the permit holder may be represented by counsel and shall make a stenographic or tape recorded record of all proceedings at the hearing. The Board may admit any relevant evidence, including hearsay.

009.03 If, after such hearing, the Board determines that a permit holder is in noncompliance with the requirements for continuing education it shall decline to renew the permit to practice public accountancy held by such permit holder.

009.04 The Board may waive compliance with this Rule for good cause shown in cases involving illness or other hardship or extenuating circumstances beyond the control of the permit holder.

0010 Reinstatement of Inactive Members . Any registrant, who has held a permit to practice and who currently holds an inactive registration, who desires to return to active status shall first notify the Board. Before being readmitted to the status of an active permit holder, such person shall file with the Board a properly completed affidavit of attendance establishing that the permit holder has successfully completed 120 hours, including 4 hours of ethic courses, of approved courses of continuing education within the three prior calendar years preceding the date on which readmission to active status is sought. This calendar year requirement may be waived for good cause, pursuant to Section 009.04 of this Chapter.

Statutory Authority: Section 1-136.01 R.R.S. 1943.

History

• Effective 2026-07-25

Chapter 9 Education

Neb. Admin. Code tit. 288, ch. 9 Education {#sec-288-nac-9 omnilex-key=us-ne-regs-official--title-288--288 NAC 9}

001 Definitions :

001.01 “Accreditation” means the quality control of the education process provided by generally recognized regional and/or programmatic accreditation organizations. These Rules refer to three levels of accreditation. Level 1 represents the most comprehensive review at the accounting program level and Level 3 is the least comprehensive review at the college or university level. Colleges or universities without accreditation, as defined below, would generally lack any level of accreditation including the college or university, the business school or program (“business school”), and/or the accounting department or program (“accounting program”).

1. Level 1 accreditation – the accounting program. In a Level 1 accreditation, the college or university; business school; and the accounting program are separately accredited. This level applies to an accounting program that is accredited by an organization recognized by the Council of Higher Education Accreditation (CHEA) as a specialized or professional accrediting organization, such as the Association to Advance Collegiate Schools of Business-International (AACSB). Accredited accounting programs have met standards substantially higher and much more specific than those required for Level 2 or Level 3 accreditation.

2. Level 2 accreditation – the business school. In a Level 2 accreditation, the college or university and the business school are separately accredited, but the accounting program is not separately accredited. This level applies to a business school that is accredited by an organization recognized by the Council of Higher Education Accreditation (CHEA) as a specialized or professional accrediting organization, such as the AACSB or the Association of Collegiate Business Schools and Programs (ACBSP).3. Level 3 accreditation – the college or university. In a Level 3 accreditation, the college or university is accredited, but neither the business school nor the accounting program meet Level 1 or Level 2 requirements. This level applies to a degree granting college or university that is not accredited at Level 1 or Level 2, but is accredited by an organization currently recognized by the Council of Higher Education Accreditation as a regional accrediting organization or a regional accrediting body recognized by the United States Department of Education.

001.02 “College(s) or university(s)” means Board-recognized institution(s) of higher education accredited by regional accrediting organizations.

002 Recognized Standing .

An applicant for certification must demonstrate proof that he has earned a baccalaureate degree from a college or university of recognized standing. An applicant who has earned a baccalaureate degree conferred by a college or university which is accredited by a regional accrediting body recognized by the United States Department of Education is deemed to have met that statutory requirement. Colleges or universities not accredited by a regional accrediting body recognized by the United States Department of Education are considered for purposes of these rules to be unaccredited or non-accredited colleges or universities.

003 Non-accredited Degree

A graduate of a baccalaureate degree granting institution not accredited at the time the applicant’s degree was received or at the time of filing his or her application for certification will be deemed to have met the statutory education requirement, provided;

003.01 An accredited college or university, as defined above, accepts the applicant’s non-accredited degree for admission to a graduate degree program; and

003.02 The applicant presents evidence satisfactory to the Board that the education received from the non-accredited college or university through which the applicant received his or her baccalaureate degree is comparable to an accredited college or university. Evidence satisfactory to the Board may include, but is not limited to:

003.02A letters of recommendation regarding the applicant or the non-accredited institution;

003.02B material from accounting firms regarding the quality of the educational program or the candidates from the non-accredited institution;

003.02C evaluations of the applicant regarding his or her educational background, from faculty members of accredited institutions;

003.02D listings of the non-accredited institution in directories or publications which attest to the quality of the educational programs at that institution;

003.02E membership of the non-accredited institution in organizations which attest to the quality of the non-accredited institution; and any other material acceptable to the Board.

004 Educational Requirements ;

Preface: The Nebraska State Board of Public Accountancy is dedicated to ensuring that the educational preparation of CPAs reflects a broad-based educational program which incorporates the latest information and knowledge in the areas of accounting, auditing and general business as well as an understanding of the world and the relationships between business enterprises, government, and not- for- profit entities.

The Board will not furnish or prescribe specific curriculum which colleges or universities should adopt; rather it urges colleges and universities to adopt innovative approaches and programs designed to best meet the needs of the profession and society.

004.01 CPA Examination Candidates - For the Purpose of Nebraska Revised Statutes, Section 1-106 et. seq., as revised, the education requirements to sit for the Uniform CPA Examination shall be a baccalaureate or higher degree from an accredited college or university (as defined and specified in Title 288, Chapter 9-001 and 9-002) and the subject area requirements as outlined within Sections 004.02A & B.

004.02 Eligibility. The candidate will be required, as a condition of acceptance for sitting for the first time for the Uniform CPA Examination, to provide the Board or its designee with an official transcript or transcripts that show his or her postsecondary education program has included, as follows:

004.02A 24 semester or 36 quarter hours in accounting beyond principles of accounting. The subjects to be covered in these hours shall include some or all of the following:

(1) Financial accounting theory and problems

(2) Cost and managerial accounting

(3) Tax preparation and planning

(4) Auditing

(5) Accounting information systems

(6) Governmental and not-for-profit accounting.

004.02B 24 semester or 36 quarter hours in general business. The subjects to be covered in these hours shall include some or all of the following:

(1) Macro and microeconomics

(2) Business law

(3) Marketing

(4) Management

(5) Finance

(6) Business Ethics

(7) Principles of accounting

(8) Business communication

(9) Quantitative applications in business

(10) Data analytics

004.03 Any person making initial application to take the Uniform CPA examination shall be deemed to have met the educational requirement contained in the law and these rules if the applicant has earned a graduate degree in accounting from an accounting program or department that is accredited in accounting by an accrediting agency recognized by the Board.

004.04 Upon applying for and receiving a certificate, a certificate holder may apply for a permit to practice, as outlined within Section 1-136 et. Seq., as revised, after meeting all other requirements as outlined within the law and these rules.

004.04A Upon application for a permit to practice, a certificate holder shall have completed, at a minimum:

(1) A baccalaureate degree from an accredited college or university (as defined and specified in Title 288 Chapter 9-001 and 9-002).

(2) 24 semester hours or 36 quarter hours in accounting beyond principles of accounting. The subjects to be covered shall include all of the subjects listed under 004.02A (1-6).

(3) 24 semester hours or 36 quarter hours in general business. The subjects to be covered shall include some or all of the subjects listed under 004.02B (1-10).

(4) Content covering the subject of Business Ethics.

004.04B If the time elapsed exceeds six years since the applicant has completed the examination prior to applying for a certificate or permit to practice, the applicant shall file with the Board properly completed affidavits of successful completion of 120 hours of approved courses of continuing education, including 4 hours of ethics courses, within the three years preceding application for a certificate or permit to practice.

004.05 Review of Transcripts; Appropriate level of coursework; transfer hours. For purposes of meeting the educational requirements and for issuance of a certificate or permit to practice, an applicant’s official transcript or transcripts shall be reviewed by the Board or its designee to determine if the applicant‘s educational program complies with the requirements of the law and these rules. In reviewing the transcript or transcripts, hours in courses which have contained the required subjects listed in 9-004.02A and B which have been earned at a non-four-year institution and are transferred to a four-year institution shall be considered as acceptable in meeting the educational requirements.

004.05A A maximum of 12 semester or 18 quarter hours can be earned at a two-year institution after a baccalaureate degree has been granted. Any semester or quarter hours included on the baccalaureate degree transcript are not subject to the 12 semester or 18 quarter hour maximum rule.

004.06 Reciprocal Certificates. An applicant for a reciprocal certificate shall be deemed to have met the requirements of Nebraska Revised Statutes, Section 1- 106, et. seq. if he or she meets the following conditions:

004.06A Holds a current and unrevoked certificate then in full force and effect in any state; and

004.06B Has a postsecondary education which is substantially equivalent to the requirements contained in Nebraska Revised Statutes, Section 1-106, et. seq. The Board or its designee shall determine, based upon information provided by the applicant for a reciprocal certificate, if the applicant has education which is substantially equivalent to the requirements contained in Nebraska Revised Statutes.

004.07 Application procedures. Any person making initial application to take the Uniform CPA Examination and for issuance of a certificate or permit to practice shall be required to submit an official transcript or transcripts showing that the applicant has satisfied the educational requirements as prescribed in these rules. The Board or its designee shall determine whether the applicant is eligible to sit for the Uniform CPA Examination and eligible for issuance of a certificate or permit to practice. If the Board or its designee cannot readily determine that an applicant has satisfied the educational requirements as prescribed in these rules, notification shall be made to the applicant. The burden of showing that the applicant’s educational records contain compliance with the educational requirements contained in these rules shall rest solely with the applicant.

Statutory Authority: Section 1-113 R.R.S. 1943

History

• Effective 2026-07-25

Chapter 10 Public Accounting Offices

Neb. Admin. Code tit. 288, ch. 10 Public Accounting Offices {#sec-288-nac-10 omnilex-key=us-ne-regs-official--title-288--288 NAC 10}

001 Statutory Principles; Definitions . Each office established or maintained in this state pursuant to Nebraska Revised Statutes, Section 1-135 of the Act for the practice of public accounting, by a certified public accountant, by a partnership of certified public accountants, or by a professional corporation of certified public accountants shall be registered annually under the provisions of section 1-125 and 1-135 of the Act. Such offices shall be in compliance with the provisions of this chapter.

001.01 “Office” shall mean a permanent place of business where the practice of public accountancy is performed by a certified public accountant, partnership of certified public accountants, or professional corporation of certified public accountants.

001.02 “Manager” shall mean an active permit holder who is a staff employee, shareholder or partner in a firm, and who is designated by the firm to manage the office of the firm in Nebraska.

001.03 “Work space” shall mean a temporary location maintained by a certified public accountant, partnership of certified public accountants, or professional corporation of certified public accountants.

002 Manager; responsibilities; duties; restrictions .

002.01 Each firm shall register with the Board, on at least an annual basis, a listing of the names of its office managers, along with other information as required by the Board on such registration forms. In addition, each firm shall notify the Board of any changes in the managership of any office it maintains in the state of Nebraska, within thirty days of making such change.

002.02 Each office shall be under the direct supervision of a registered manager. Such manager may serve in such capacity at one office only.

002.03 The registered manager shall supervise all work performed at the office for which he or she is the designated manager. Such manager is responsible for the management of that office and for full compliance by all professional and non-professional staff with provisions of the Public Accountancy Act and the Board’s rules and regulations.

002.04 Failure to provide adequate supervision shall constitute actions which may result in disciplinary action by the Board of Accountancy.

003 Registered office; advertising; restrictions .

003.01 A certified public accountant, partnership of certified public accountants, or professional corporation of certified public accountants may advertise the location of a registered office, and may maintain a listed telephone number of such office on firm letterhead business cards or other advertising.

003.02 Advertising for a registered office shall be in accordance with the relevant provisions of Title 288, Chapter 5.

003.03 Failure to maintain a registered office in accordance with applicable provisions of the Public Accountancy Act and the Board‘s rules and regulations may be grounds for disciplinary actions against the registered office manager, a certified public accountant, a professional corporation or partnership.

004 Work Space; advertising; restrictions .

004.01 A work space, as defined in these rules, may be maintained by a certified public accountant, partnership of certified public accountants, or professional corporation of certified public accountants only in accordance with the following restrictions:

004.01A Work space shall be registered with the Board of Public Accountancy by the certified public accountant, partnership of certified public accountants, or professional corporation of certified public accountants within ten days prior to first opening such work space. The Board of Public Accountancy shall also be notified when such work space is closed for a period of more than thirty days. 004.01B Work space may not be advertised on permanent window or door signs, display signs, building directories, letterhead, business cards or in telephone directories, newspapers or other types of advertising

004.01C Work space may be advertised by a temporary window or door sign, which shall be removed when such work space is not open to the general public.

004.01D Work space shall not be misrepresented to the public, in any manner or form, as a registered office of a certified public accountant, partnership of certified public accountants, or professional corporation of certified public accountants.

004.01E Professional staff of a certified public accountant, partnership of certified public accountants, or professional corporation of certified public accountants may practice public accountancy in such work space only on a part time basis. Supervision of licensed and non-licensed staff who may work in such work space on a part time basis shall be the responsibility of a designated partner or shareholder, or in the case of a sole proprietorship, the sole proprietor.

004.01F Work space may have a separate telephone number, for use in communicating with the general public; however the telephone number of such work space shall not be listed in any telephone directory listing, on letterhead or business cards or in any other form of advertising.

004.02 Failure to comply with the rules regarding work space may result in disciplinary action against a certified public accountant, partnership of certified public accountants, or professional corporation of certified public accountants.

Statutory Authority: Section 1-106, 1-114 through 1-120, 1-121, 1-124, 1-127 and 1-136.04 R.R.S 1991.

History

• Effective 2010-08-31

Chapter 11 Forms of Practice and General Requirements

Neb. Admin. Code tit. 288, ch. 11 Forms of Practice and General Requirements {#sec-288-nac-11 omnilex-key=us-ne-regs-official--title-288--288 NAC 11}

001 Definitions

001.01 For purposes of these rules, “actively participate” means the providing of personal services in the business entity licensed in Nebraska to practice public accounting, in the nature of management, performance of services for clients, or similar activities. Non-natural persons and individuals whose primary source of income from the business entity is provided as a result of passive investment will not be considered as actively participating in the business entity.

001.02 For purposes of these rules, an “owner” is defined as a person who directly or indirectly (a) has an interest in profits and losses of such business entity, or (b) owns all, or any portion, of the equity capital of such business entity, or (c) has a vote with respect to matters of such business entity.

001.03 For purposes of these rules, a “principal” is defined as an owner who actively participates in a business entity licensed in Nebraska to practice public accounting, and who is not licensed in this state or any other state or jurisdiction as a certified public accountant.

001.04 For purposes of these rules, “profits and losses” are defined as the net taxable income or loss, determined prior to payment of any form of compensation to owners, of a business entity licensed in Nebraska to practice public accounting.

001.05 For purposes of these rules, “equity capital” is defined as (a) capital stock, capital accounts, capital contributions, or undistributed earnings of a business entity licensed in Nebraska to practice public accounting; and (b) loans and advances to a business entity licensed in Nebraska to practice public accounting, made or held by its owners. “Equity capital” does not include an interest in bonuses, profit sharing plans or defined benefit plans or loans to a business entity licensed in Nebraska to practice public accounting from banks, financial institutions or other third parties that do not actively participate in such business entity.

001.06 For purposes of these rules, a “business entity” is defined as a proprietorship, partnership, professional corporation, limited liability company or any other permissible form of practice which is licensed in Nebraska to practice public accounting.

001.07 For purposes of these rules and the Public Accountancy Act, “holding themselves out to the general public” is intended to encompass those situations dealing primarily with the promoting, marketing, and practice of public accountancy with clients and potential clients. It is not intended to encompass business and similar situations where disclosure of one’s status as an owner, partner, shareholder, limited liability company member, director or otherwise would not be in violation of the general intent of these rules and is reasonable or necessary under the circumstances of a particular situation or business transaction.

002 Form of Practice and Name . A licensee may practice public accountancy, whether as an owner or employee, only in the form of a proprietorship, a partnership, a professional corporation, a limited liability company or any other permissible form of practice. A licensee shall not practice under a firm name which includes any name that would have the capacity or tendency to deceive or mislead or is misleading as to the type of organization (proprietorship, partnership, professional corporation, limited liability company or other permissible form of practice). Fictitious names are not precluded from consideration under this rule.

However, names of one or more past partners, shareholders or limited liability company members may be included in the firm name of a successor partnership, corporation, limited liability company or other permissible successor business entity. A firm name is deemed misleading if it includes the name of a person who is not a CPA. A firm name is deemed misleading if it includes the terms “& Associates,” “& Company,” or “Group,” or similar plural terms, if the firm has only one individual practicing in the firm with a current permit to practice as a CPA. A permit holder surviving the death or withdrawal of all other permit holders may continue to practice under the firm name for up to two years after becoming the sole practicing permit holder in the firm.

Any CPA firm that has continuously used an assumed name approved by the Board prior to July 19, 2005 may continue to use the assumed name, so long as the CPA firm is only owned by an individual practitioner, partner, or shareholder, who obtained such Board approval.

003 Professional Corporations . A corporation registered under Section 1-134 of the Act and any corporation granted a permit under Section 1-136 of the Act shall be subject to the Rules of Professional Conduct. Any shareholder who ceases to be eligible to be a shareholder shall be required to dispose of all of his or her shares within a reasonable period to a person qualified to be a shareholder or to the corporation.

004 Partnerships, Professional Corporations, Limited Liability Companies and other Permissible Forms of Practice; General Requirements; Ownership .

004.01 If a natural person who is not a certified public accountant in this or some other state or jurisdiction is permitted under Section 1-162.01 of the Act to be an owner of a business entity licensed in Nebraska to practice public accounting then:

004.01A Such person shall not hold himself or herself out as a certified public accountant.

004.01B Such person shall not hold himself or herself out to the general public or any client of such business entity licensed in Nebraska by the use of the term owner, partner, shareholder, director, officer or limited liability company member for purposes of describing his or her status in the business entity, regardless of whether such person may occupy such position by reason of common law, statutory law, ownership, or election unless with a disclaimer indicating such person is not a CPA. Such person may hold himself or herself out as a principal.

004.01C The name of such person shall be provided to the Board by a business entity in connection with the granting or renewal of a permit in Nebraska to such business entity, and such person shall be in compliance with the provisions of Section 1-162.01(1)(b) through (i) and (2) of the Public Accountancy Act.

004.02 Limitations; Equity Ownership. Natural persons who are not certified public accountants in this or any other state or jurisdiction but who are owners of a business entity licensed in Nebraska to practice public accounting, shall not directly or indirectly, including as a beneficiary, (a) hold, in the aggregate, more than forty-nine (49%) of such business entity’s equity capital or voting rights, (b) receive, in the aggregate, more than forty-nine (49%) of such business entity’s profits or losses, or (c) exceed in number 49% of the total number of natural persons who are owners of such business entity.

004.03 Limitations; Use of Designation Principal. A person who is an owner and who is licensed in this state or any other state or jurisdiction as a certified public accountant may not hold himself or herself out as a principal.

004.04 Other forms of practice. These rules shall be applied to individuals and to any business entity licensed in Nebraska to practice public accounting in a manner consistent with carrying out the intent of these rules.

004.05 Eligibility; Disqualification; Owners. With respect to owners who are not licensed in this state or any other state or jurisdiction as certified public accountants, if at any time the board determines that any such owner no longer is eligible to be an owner by virtue of not being in compliance with the criteria set forth in Section 1-162.01 of the Public Accountancy Act, such owner and the business entity in which ownership exists shall be notified that if a board hearing is not requested within thirty (30) days of the date of mailing notification of such determination, an order will then be entered that such owner must divest himself, herself or itself of ownership in the business entity within sixty (60) days of entry of the order.

004.06 Professional Corporations; other requirements. The principal executive officer of a professional corporation licensed in Nebraska to practice public accounting shall be an owner and a director who is a licensed certified public accountant. Directors and officers who are not licensees shall not exercise any authority whatsoever over professional matters relating to the practice of public accountancy.

004.07 A non-natural person (hereafter “Parent Company”), other than an employee stock ownership plan, permitted under Section 1-162.01 of the Act to be an owner of a business entity licensed in Nebraska under Section 1-136 of the Act (hereafter “Nebraska permit holder”) shall:

004.07A Provide to the Board the name of the Parent Company and the names of all owners in connection with the granting or renewal of a permit in Nebraska of the Nebraska permit holder; and

004.07B Remain in compliance with the provisions of Section 1-162.01 of the Act and demonstrate to the Board upon application or renewal for a firm permit for the Nebraska permit holder, that (1) any other non-natural person owning any profits and losses, equity or voting interest in the Parent Company also meets the requirements of 11.004.07 and; (2) the natural persons who are either owners or who have an ownership or beneficial interest, directly or indirectly, in such Parent Company shall, as if all were direct owners of the Nebraska Permit holder, meet the requirements of Section 1-162.01(1)(b) through (i) of the Act.

004.08 If an owner of a business entity licensed in Nebraska to practice public accountancy is an employee stock ownership plan (“ESOP”), it shall comply with the following conditions:

004.08A No shares of stock in the licensed business entity may be held by a nonemployee, former employee, or person not actively participating in the licensed business entity. Shares of stock distributed from an ESOP and immediately put back to the business entity for repurchase shall not be considered to be held by a terminated participant or beneficiary. The licensed business entity must meet any requirements of law that would allow the business entity to restrict ownership of shares of stock to active employees and the ESOP and to restrict participants’ right to demand a distribution in the form of stock in the ESOP.

004.08B Unallocated shares under the ESOP shall be treated for the purposes of compliance with Section 1-162.01(b) through (e) of the Act as if such unallocated shares are allocated each year to eligible participants in the ESOP based on a uniform allocation method as allowed by laws governing an ESOP. The trustees of the ESOP shall specify the results of such allocation in connection with the granting or renewal of a permit in Nebraska of the Nebraska permit holder.

004.08C If under Section 1-162.01(k) a special independent trustee or fiduciary is appointed, the special trustee or fiduciary may not exercise any authority whatsoever over professional matters relating to the practice of public accountancy.

004.08D Although the trustee of the ESOP may be the legal owner of the shares of stock held in the ESOP, the Board shall look through the ESOP to all beneficial owners in the ESOP to determine compliance with Section 1-162.01(b) through (e) of the Act. The Board shall disregard any vesting rights to any shares of stock in determining the beneficial ownership under the ESOP. Furthermore, only those participants who have a stock account in the ESOP shall be taken into account as beneficial owners of the licensed business entity.

004.08E All shares of stock allocated, directly or allocated pursuant to 004.08B, to beneficial owners in an ESOP shall be aggregated with any shares of stock directly owned by such natural persons to determine compliance with Section 1-162.01(b) through (e) of the Act.

005 Application procedures; forms .

005.01 Each applicant for registration as any type of licensed business entity shall register with the Board of Public Accountancy prior to performing public accounting work in the state of Nebraska. Such registration form must include an affidavit signed by a general partner or officer of such business entity who is a certified public accountant of Nebraska in good standing, attesting to the accuracy of the information in the application materials.

005.02 After the Board of Public Accountancy has accepted the initial registration application and has issued a permit to practice, the registered business entity may practice in the state of Nebraska under the title which appears on the permit to practice as the name of the business entity.

005.03 Nebraska registered business entities shall renew their registration on an annual basis, on forms provided by the Board of Public Accountancy. Failure or refusal to provide complete and accurate responses to all questions on the registration renewal forms by the deadline noted on such forms may be grounds for refusal to renew such registration.

005.04 Nebraska registered business entities shall include on their initial registration with the board, and subsequent renewal of such registration, a complete listing of the names and the state of residency of all owners.

Statutory Authority: Section 1-162.01 R.R.S. 1994.

History

• Effective 2019-09-22

Chapter 12 Regulations and Procedures Governing Declaratory Orders

Neb. Admin. Code tit. 288, ch. 12 Regulations and Procedures Governing Declaratory Orders {#sec-288-nac-12 omnilex-key=us-ne-regs-official--title-288--288 NAC 12}

001 General Information .

001.01 Scope of this Chapter; Definitions. This chapter pertains solely to the procedures to be used by any person or entity seeking issuance of a declaratory order by an agency. The definitions used in this chapter shall be limited to petitions and proceedings related to declaratory orders.

002 Definitions . As used in this chapter:

002.01 Agency shall mean the Nebraska State Board of Public Accountancy.

002.02 Agency director shall mean the director or governing body, whichever is applicable, of the agency.

002.03 Argument shall mean the oral statement of the petitioner or any other party which explains his or her view of the facts and issue to be decided, the law applicable to the question presented, and the reasoning that connects the facts and law.

002.04 Contested case shall mean a proceeding before the agency in which the legal rights, duties, or privileges of specific parties are required by law or constitutional right to be determined after hearing before the agency.

002.05 Declaratory order proceeding shall mean a proceeding initiated by a petitioner seeking issuance of a binding order by the agency as to the applicability of specified circumstances to a statute, rule, regulation, or order within the primary jurisdiction of the agency.

002.06 Hearing officer shall mean the person or persons conducting a declaratory order proceeding pursuant to the Administrative Procedure Act, whether designated as the presiding officer, administrative law judge, or some other title.

002.07 Intervenor(s) shall mean persons, political subdivisions, corporations, organizations, or other entities who have or claim to have any interest, legal right, duty, privilege, or immunity, which would be directly affected by the agency‘s issuance of a binding declaratory order.

002.08 Necessary party shall mean a person who or an entity which has a specific interest in the applicability of the statute, rule, regulation, or order, as distinguished from a general interest such as may be the concern of the public at large. A necessary party is one which is or would be adversely affected in a legally cognizable way by the uncertainty sought to be resolved.

002.09 Parties shall mean persons, political subdivisions, corporations, organizations, or other entities subject to the jurisdiction of the agency who are involved in a declaratory order proceeding according to the procedures set forth in this chapter.

002.10 Petition shall mean the document filed in accordance with section 003 of this chapter to initiate a declaratory order proceeding.

002.11 Petitioner(s) shall mean a party or parties who have filed a petition with the agency seeking issuance of a declaratory order.

002.12 Pleading shall mean any written petition, answer, or motion used in any declaratory order proceeding before the agency as set forth in this chapter.

003 Petition for Declaratory Order .

003.01 Generally. A request for a declaratory order must be made by a petition that meets the requirements of section 003.

003.02 Who May File. Any person may petition the agency for issuance of a declaratory order as to the applicability to specified circumstances of a statute, rule, regulation, or order which is within the primary jurisdiction of the agency.

003.03 When Orders Appropriate. A declaratory order may be requested on the applicability of a statute, rule, regulation, or order enforced by the agency. “Applicability” refers to the appropriateness of the relation of the law to the person, property, or state of facts, or its relevance under the circumstances given. It may include such questions as whether the law applies at all, to whom it applies, when it applies, how it applies, or which law applies. Considerations as to whether issuance of a declaratory order is appropriate include:

003.03A A declaratory order may be requested only on the applicability of existing statutes and rules and regulations.

003.03B A declaratory order may be requested to obtain a determination of proposed conduct, not to obtain a determination of the effect of conduct that has already occurred.

003.03C A declaratory order is not a mechanism for review or appeal of a decision made by the agency in a contested case.

003.03D A declaratory order may not be requested to obtain a declaration by the agency that a statute or regulation is unconstitutional or that a regulation of the agency is invalid.

003.03E A declaratory order may not be issued by the agency that would substantially prejudice the rights of a person who would be a necessary party and who does not consent in writing to the determination of the matter by a declaratory order proceeding.

003.04 Form of Petition. A petition for declaratory order shall be in the form of either a pleading or letter which shall contain each of the following:

003.04A A caption, which shall include:

003.04A1 The venue: BEFORE THE BOARD OF PUBLIC ACCOUNTANCY, STATE OF NEBRASKA;

003.04A2 A heading specifying the subject matter and the name of the petitioner; and

003.04A3 The name of the pleading: PETITION FOR DECLARATORY ORDER.

003.04B The statements required in subsection 003.05 of this chapter.

003.04C The signature of the petitioner, or when represented by an attorney, the signature of the attorney.

003.04D The name and address of the petitioner, and when represented by an attorney, the name, address, telephone number, and bar number of the attorney.

003.04E Size and Paper. The petition shall be made on white, letter-sized (8-1/2“ x 11”) paper.

003.04F Print. The petition shall be legibly typewritten, photostatically reproduced, printed, or handwritten. If handwritten, the petition must be written in ink. Only one side of a page shall contain any writing.

003.04G Attachments. Any documents attached to a petition shall be securely fastened to the pleading and shall meet the requirements of 003.04E and 003.04F and, when possible, be reproduced on 8-1/2“ x 11” paper or placed in an 8-1/2“ x 11” envelope and clearly marked as an attachment to the petition.

003.05 Contents of Petition. To be considered, the petition shall include the following:

003.05A The name and address of the petitioner;

003.05B The name and address of all persons or entities, known to the petitioner, who may have a specific interest in the applicability of the statute, rule, regulation, or order or who may be adversely affected by the issue sought to be resolved by the petitioner.

003.05C The statute, rule, regulation, or order upon which the petitioner seeks issuance of a declaratory order;

003.05D A detailed statement of all of the material facts and specific circumstances which apply to petitioner’s request for issuance of a declaratory order;

003.05E All propositions of law or contentions asserted by the petitioner;

003.05F A demand for the relief to which the petitioner alleges entitlement. The petition shall state the petitioner‘s position as to how the agency should rule and why the agency should rule in the manner requested; and 003.05G Any documents pertinent to the petition that the petitioner wishes to be considered by the agency.

003.06 The petition shall be subscribed and verified by the petitioner. If the petitioner is a corporation, political subdivision, or other entity, then the petition shall be subscribed and verified by a duly authorized agent of the petitioning entity.

003.07 Sample Petition. The petitioner may use the sample form of a petition which is attached as “Appendix A” and incorporated within this chapter. The petitioner may also prepare a reasonable facsimile of “Appendix A” so long as the requirements of subsections 003.04, 003.05, and 003.06 of this chapter are satisfied.

003.08 Written Consents. The petitioner shall also attach to the petition any written consents obtained from any necessary party that the petition may be determined by use of a declaratory order proceeding.

004 Submission and Service of Declaratory Order Petition .

004.01 The original petition for declaratory order shall be filed with the agency director by mail or in person during the agency’s normal business hours.

004.02 The petition shall be deemed as filed when it is actually received by the agency. The agency shall date stamp all petitions upon receipt.

004.03 At the same time the petition is filed with the agency, the petitioner shall serve a copy of the petition, by certified mail, return receipt requested, on all necessary parties, including all persons, political subdivisions, corporations, organizations, or other entities who are known to have or claim any interest, legal right, duty, privilege, or immunity which would be directly affected by issuance of a declaratory order in this matter by the agency.

005 Disposition of the Petition .

005.01 Generally. Upon the filing of a petition, the agency director may consider the petition, refer the petition to an appropriate licensing or governing board, or delegate the matter to a designated hearing officer, board, or agency employee to consider the petition and recommend a decision to the agency director. In reviewing the petition, the agency may, in its discretion, do one or more of the following:

005.01A Require that additional information be submitted before the petition will be further considered;

005.01B Require a petitioner to provide notice to persons or entities who may be necessary parties and other persons that a request for a declaratory order has been filed with the agency;

005.01C Schedule a date, time, and location at which the petitioner and any other parties to the proceeding may make an oral presentation on the petition;

005.01D Consider the petition and any attachments without oral presentation.

005.02 Within thirty (30) days after the petition is filed, the agency shall, in writing:

005.02A Issue an order declaring the applicability of the statute, regulation, rule, or order in question to the specified circumstances; or

005.02B Agree to issue an order by a specified time declaring the applicability of the statute, regulation, rule, or order in question to the specified circumstances; or

005.02C Set the matter for specified proceedings as set forth in subsection 005.01 of this Chapter; or

005.02D Decline to issue a declaratory ruling, stating the reasons for the agency‘s decision.

005.03 Notwithstanding section 005.02 of this rule, the agency may determine at any time that it will not issue a declaratory order if issuance of an order under the circumstances would be contrary to any provisions of section 009 of this Chapter. The agency shall notify the petitioner and, if applicable, any intervenor or necessary party in writing when the agency determines not to issue a declaratory order.

006 Intervention in Declaratory Order Proceeding .

006.01 Intervention by any person or entity in a declaratory order proceeding shall be allowed when the following requirements are met:

006.01A. A petition for intervention must be submitted in writing to the agency. Copies must be mailed to all parties to the proceeding.

006.01B. The contents of the petition must be as specified in 006.02.

006.01C. The agency must determine that the interests of justice and the orderly and prompt conduct of the proceedings will not be impaired by allowing the intervention.

006.02 Contents of Petition. The petition for intervention shall be submitted to the agency, in writing, on 8 1/2“ x 11” white paper, and shall include each of the following:

006.02A The statute, regulation, rule, or order that may apply to or effect the person, property, entity, or facts at issue in the matter;

006.02B A statement of facts sufficient to show the intervenor’s interest;

006.02C A statement of facts which demonstrate that the intervenor‘s legal rights, duties, privileges, immunities, or other legal interests may be substantially affected by the proceeding or that the intervenor may intervene pursuant to a provision of law;

006.02D All propositions of law or contentions asserted by the intervenor; and

006.02E A statement of the specific relief requested by the intervenor.

006.03 The agency may, at its discretion, invite any person or entity to file a petition for intervention.

006.04 The agency shall grant a petition for intervention if the requirements of 006.01 and 006.02 are satisfied.

006.05 The agency shall deny a petition for intervention upon determining that the interests of justice or the orderly and prompt conduct of the proceedings would be impaired by allowing the intervention.

006.06 The agency’s decision to grant or deny a petition for intervention shall be in writing and served upon all parties.

007 Declaratory Order Proceedings .

007.01 Oral Argument, When. Oral argument shall be had only on specific order of the agency. A petitioner, intervenor, necessary party, or the agency may submit a motion for oral argument to the agency director. If opportunity for oral argument is granted, then argument shall be scheduled to be conducted not more than forty-five (45) days after filing of the petition. Petitioner and all other parties or, when represented, their attorneys, shall be served by the agency with a notice of the date, time, and location for oral argument. The agency shall provide each of the parties with notice of the proceeding not less than seven (7) days in advance of the scheduled date. Service shall be made by certified mail, return receipt requested.

007.02 Oral Argument, Procedure. Oral argument will be made before a hearing officer or before any representative of the agency who is authorized to render or to recommend a decision to the agency. The hearing officer or agency representative shall be in control of the proceeding and shall:

007.02A Identify the proceeding and introduce himself or herself and identify each party for the record;

007.02B Hear the oral argument of the petitioner, intervenor, or necessary parties;

007.02C Close the proceedings.

007.03 At the declaratory order proceeding, agency staff shall have the right to present oral argument.

007.04 The hearing officer or representative may impose reasonable time limits on the amount of time allocated to each party for oral argument.

007.05 The parties and agency staff may file briefs in support of their respective positions. The hearing officer may fix the time and order of filing briefs and may direct that briefs be submitted prior to the date of oral argument.

007.06 The oral argument may be conducted either in person or by telephone conference call.

008 Issuance of Declaratory Order .

008.01 The agency shall issue its declaratory order within sixty (60) days of the date on which the petition was filed.

008.02 The declaratory order shall be in writing and shall include the following:

008.02A The names of all parties to the proceeding upon which the order is based;

008.02B The facts upon which the order is based;

008.02C The statute, regulation, rule, or order at issue in the matter;

008.02D The agency‘s conclusion as to the applicability of the statute, regulation, rule, or order to the facts;

008.02E The agency’s conclusion as to the legal effect or result of applying the statute, regulation, rule, or order to the facts; and

008.02F The reasons relied upon by the agency to support its conclusions.

008.03 A copy of the declaratory order shall be served upon each party by certified mail, return receipt requested.

008.04 Effect of Declaratory Order. A declaratory order shall have the same status and binding effect as any other order issued in a contested case.

008.05 No Response within 60 Days. If the agency has not issued a declaratory order within sixty (60) days after the petition has been filed, then the petition shall be deemed to have been denied by the agency.

009 Circumstances Under Which Agency will not Issue Declaratory Orders .

009.01 Grounds upon which the agency shall refuse to issue a declaratory order include, but are not limited to, the following:

009.01A The petition requests a declaratory order on a matter that is outside the scope of authority of the agency;

009.01B The petition requests review or appeal of a decision made by the agency in a contested case;

009.01C The petition requests a declaratory order on the effect of past conduct;

009.01D An investigation for purposes of a formal adjudication, a contested case, or a petition to issue, amend, or repeal regulations is pending before the agency involving the petitioner on substantially the same or similar facts or issues raised in the petition;

009.01E The petition seeks a declaration that a statute or rule or regulation is unconstitutional;

009.01F The issue raised in the petition has been settled by a change in circumstances or other means so as to render moot the need for a declaratory order;

009.01G An order would substantially prejudice the rights of a person or entity who would be a necessary party and who does not consent in writing to the determination of the matter by a declaratory order proceeding;

009.01H An order would not resolve the controversy or uncertainty; or

009.01I The question posed or facts presented are insufficiently specific, overly broad, or are otherwise inappropriate as a basis upon which to decide the matter.

009.02 Grounds upon which the agency may determine to refuse to issue a declaratory order include, but are not limited to, the following:

009.02A Refusal is necessary to assure adequate allocation of agency resources are available for issuing rulings on petitions raising questions of greater urgency or significance;

009.02B The question presented is of such complexity that the agency has had insufficient opportunity or resources to develop a fully matured ruling;

009.02C The petitioner fails to submit any additional information requested by the agency or submits such information after the date established by the agency;

010 Appeal .

A declaratory order is subject to review in the manner provided for review of contested cases by the Administrative Procedure Act, Neb. Rev. Stat. 84-901 - 84-920. Specific procedures for appeal are set forth in Neb. Rev. Stat. 84-917.

History

• Effective 1995-05-08

Chapter 13 Peer Review

Neb. Admin. Code tit. 288, ch. 13 Peer Review {#sec-288-nac-13 omnilex-key=us-ne-regs-official--title-288--288 NAC 13}

288 - BOARD OF PUBLIC ACCOUNTANCY

001 Purpose .

001.01 The purpose of peer review is to improve the quality of financial reporting and to assure that the public can rely on the financial information on which licensees issue reports. The program emphasizes education and rehabilitation rather than disciplinary action. Appropriate educational programs or procedures will ordinarily be recommended or required where financial reporting does not comply with applicable professional standards.

002 Definitions . The following definitions shall apply as used throughout Chapter 13 of these rules and regulations.

002.01 Peer Review Committee (PRC). Board established committee of individuals to assist the Board with the administration of peer review in order to provide reasonable assurance that peer reviews are being conducted and reported on in accordance with the applicable standards for performing and reporting on peer reviews.

002.02 Peer Review Oversight Committee (PROC). Committee appointed by the Board to assist in the direct oversight of approved sponsoring organizations.

002.03 Peer Review Program. Includes the sponsoring organization’s entire peer review process, including but not limited to, the standards for administering, performing and reporting on peer reviews, oversight procedures, training, and related guidance materials.

002.04 Peer Review Reports. Reports issued by the peer reviewer in accordance with the Board-approved peer review standards.

002.05 Peer Review Standards. Board-approved professional standards to be used in administering, performing and reporting on peer reviews.

002.06 Professional Work. Professional Work for purposes of peer review means the professional services of a firm/practice unit which is subject to peer review.

002.07 Sponsoring Organization. A Board-approved professional association, or other organization responsible for the facilitation and administration of peer reviews though use of its peer review program and peer review standards.

003 Committees .

003.01 Peer Review Committee. The Board will annually appoint a Peer Review Committee (hereinafter the PRC) to assist the Board with the administration of peer review. The PRC will consist of no fewer than five members who will include at least one member of the Board who will serve as liaison between the Board and the PRC. The remaining members of the PRC shall be appointed by the Board and must be holders of current valid Nebraska permits to practice public accountancy and shall, to the extent practical, represent a cross-section of the different sized firms in Nebraska.

003.02 Responsibilities of the PRC.

003.02A Recommending to the Board appointments to the Peer Review Oversight Committee (hereinafter PROC) which will assist in the direct oversight of approved sponsoring organizations;

003.02B Recommending to the Board the approval of sponsoring organizations and their peer review programs and peer review standards;

003.02C Monitoring and assessing the effectiveness of the sponsoring organizations, peer review programs and peer review standards;

003.02D Reporting to the Board on the performance of the sponsoring organizations; and

003.02E Assisting the Board with the review of the documents set forth in 004.09.

003.03 Peer Review Oversight Committee (PROC).

003.03A The PROC shall include one to three members appointed when the Board determines the need for a PROC based on the recommendations of the PRC.

003.03B The PROC members shall not be members of the Board or perform any enforcement related work for regulatory or governmental bodies, professional organizations (including, but not limited to, an AICPA ethics committee, AICPA Joint Trial Board or any state professional ethics committee) or similar groups or subgroups, including consultants and other similar arrangements for the Board;

003.03C Each PROC member shall have received a peer review report with a rating of “Pass” on their own practice unit’s most recently accepted peer review;

003.03D The PROC members may be compensated as independent contractors for their duties as established by the Board;

003.03E Each PROC member shall sign a letter of confidentiality agreeing not to divulge any information that would identify any firm, licensee, or peer reviewer firm to any non-PROC member, including, but not limited to members of the Board and the PRC. The letter of confidentiality shall not include fraud or misrepresentation by a firm or licensee in obtaining peer review; and

003.03F Responsibilities of the PROC include, but are not limited to: (i) reviewing the sponsoring organizations’ administration of their programs; (ii) the direct oversight of the approved sponsoring organizations; and (iii) if deemed necessary by the Board, visiting the sponsoring organization of an approved peer review program for the purposes of review and oversight.

003.04 Authority of the PRC and PROC. The PRC and the PROC are advisory committees to assist the Board. The PRC and the PROC do not have enforcement or disciplinary powers or any quasi-judicial authority.

004 Practice Unit Responsibilities .

004.01 A practice unit which performs attest engagements and/or performs compilations shall enroll in a program that meets Board-approved peer review program standards and shall satisfactorily complete the same.

004.02 A practice unit shall cooperate with the Board-approved peer review program sponsoring organization with which it is enrolled to arrange, schedule, and complete a peer review. A practice unit shall take all educational/remedial actions prescribed by the sponsoring organization. In addition, the practice unit shall cooperate with the Board in all matters related to its peer review and take all actions necessary to timely comply with the peer review requirements.

004.03 Each practice unit is required to provide the following information with each application for a permit:

004.03A Certify whether the practice unit is or is not required to participate in a peer review program; and

004.03B If the practice unit is required to participate in a peer review program, furnish in connection with its renewal application satisfactory evidence of participation in peer review, provide the name of the approved sponsoring organization’s peer review program in which the firm is enrolled, and the period covered by the practice unit’s most recently accepted peer review.

004.04 Practice units enrolled in a Board-approved peer review program shall schedule, undergo and complete its subsequent peer reviews in compliance with the sponsoring organizations’ peer review standards and related guidance. Ordinarily, subsequent peer reviews shall be performed such that the peer review has taken place and all peer review materials are submitted to the sponsoring organization within three years and six months from the peer review year end of the previous peer review.

004.05 The practice unit shall not be required to become a member of any organization administering a board-approved peer review program.

004.06 Practice Units Registered with the Public Company Accounting Oversight Board.

004.06A Practice units receiving inspections under the PCAOB are required to undergo a peer review under a Board-approved peer review program that covers the portion of the practice unit’s professional work not subject to the Public Company Accounting Oversight Board (PCAOB) inspection process; and

004.06B However, for practice units required to be registered with and inspected by the PCAOB, the PRC may exempt the practice unit from the Board’s peer review program only if all of the practice unit’s professional work is subject to the PCAOB inspection process.

004.07 Practice Units Performing Preparation Engagement. A practice unit that only performs preparation engagements as defined under AICPA Statements on Standards for Accounting and Review Services (SSARS), as of October 15, 2025, is not subject to peer review.

004.08 Submission of Documents by Practice Units.

004.08A Practice units required to participate in peer review shall submit to the Board the following documents, as applicable:

1. Peer review report which has been accepted by the sponsoring organization;
2. The practice unit’s letter of response which has been accepted by the sponsoring organization;
3. The acceptance letter from the sponsoring organization.
4. Letter(s) accepting the documents signed by the practice unit with the understanding that the practice unit agrees to take any actions required by the sponsoring organization.
5. Letter signed by the sponsoring organization notifying the practice unit that required actions have been appropriately completed, if applicable.

004.08B Peer review documents required in section 004.09A(1-5) shall be submitted by the practice unit within 30 days of the issuance of the same, or with submission of the practice unit’s renewal application, whichever occurs first. The practice unit shall provide copies of such documents via a website, or regular mail as permitted by the Board.

004.08C Practice units may also satisfy the above document submission requirements by having the sponsoring organization make the documents in section 004.09A accessible to the Board via the AICPA Facilitated State Board Access (FSBA) secure website process.

005 Peer Review Standards/Sponsoring Organizations .

005.01 The Board approves the AICPA Standards for Performing and Reporting on Peer Reviews and adopts the same as the professional standards to be used in administering, performing and reporting on peer reviews.

005.02 The PRC in assisting the Board with respect to approval of sponsoring organizations and their programs shall utilize the standards adopted by the Board in 005.01.

005.03 The Board may terminate its approval of a sponsoring organization for cause following notice and opportunity for hearing. For purposes of this paragraph, “cause” includes, but is not limited to, failure to maintain ongoing compliance with the requirements of the Board.

006 Other .

006.01 Extensions.

006.01A The Board may accept extensions for completing peer reviews granted by sponsoring organizations provided that notification by the practice unit is within 14 days from the date of the letter from the sponsoring organization granting the extension. Extensions may be approved for the following reasons:

(i) health; (ii) military service; or (iii) other good cause outside of the control of the practice unit.

006.01B Requests for extensions of time to undergo a peer review shall be submitted to the Board in writing by the practice unit no later than the earlier of a practice unit’s renewal date or peer review due date (which is determined by the sponsoring organization) and must include any extensions approved by the sponsoring organization.

006.01C An extension may be renewed upon application received by the Board prior to the expiration of the current extension, if the Board finds that the reasons justifying the extension continue to exist.

006.02 Change in Firm Structure. In the event a practice unit is sold, dissolved, or merged with the practice of one more other practice units, determination of successor or predecessor practice unit(s) peer review year-end(s) and the peer review due date(s), if any, will be made in accordance with the sponsoring organization’s guidance.

Statutory Authority: LB 159, 2016.

History

• Effective 2026-07-25