HAR Chapter 71 – Certified Public Accountants and Public Accountants

HAWAII ADMINISTRATIVE RULES
TITLE 16
CHAPTER 71
CERTIFIED PUBLIC ACCOUNTANTS AND PUBLIC ACCOUNTANTS
This rule should be read in conjunction with Hawaii Revised
Statutes Chapter 466, PUBLIC ACCOUNTANCY, which is distributed
separately.
This material can be made available for individuals with special
needs. 	Please call the Professional Vocational Licensing Division
of DCCA at 808-586-2690, to submit your request.
Unofficial Version

Amendment and Compilation of Chapter 16-71
Hawaii Administrative Rules
December 18, 2020
SUMMARY PAGE
1. 	§16-71-1 is amended.
2. 	§16-71-3 is amended.
3. 	§16-71-8 is amended.
4. 	§16-71-18 is amended.
5. 	§16-71-19 is amended.
6. 	§16-71-19.1 is amended.
7. 	§16-71-21 is amended.
8. 	§16-71-24 is amended.
9. 	§16-71-33 is amended.
10. 	§16-71-34 is amended.
11. 	§16-71-36 is amended.
12. 	§16-71-39 is amended.
13. 	§16-71-64 is amended.
14. 	Chapter 16-71 is compiled.

71-1
HAWAII ADMINISTRATIVE RULES
TITLE 16
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
CHAPTER 71
CERTIFIED PUBLIC ACCOUNTANTS AND PUBLIC ACCOUNTANTS
Subchapter 1 	General Provisions
§16-71-1 	Objective
§16-71-2 	Biennial renewal; continuing
professional education in ethics or
professional conduct
§16-71-3 	Notification and filing of names and
addresses and changes
§16-71-4 	Evidence of authority to practice
§16-71-4.5 	Minimum insurance requirements for a
professional corporation
Subchapter 2 	Definitions
§16-71-8 	Definitions
§16-71-9 	Repealed
§16-71-10 	Repealed
Subchapter 3 	License of Certified Public
Accountant
§16-71-14 	Issuance
§16-71-15 	Application for license

71-2
§16-71-16 	Competence, trustworthiness, and
fairness (references)
§16-71-17 	Education
§16-71-18 	Examination
§16-71-19 	Computer-based examination
§16-71-19.1 	Examination misconduct
§16-71-20 	Repealed
§16-71-21 	Experience
§16-71-22 	Knowledge of laws and rules
Subchapter 4 	Permit to Practice
§16-71-24 	Permit to practice
§16-71-25 	Repealed
§16-71-26 	Control and reporting
§16-71-27 	Temporary permit to practice
Subchapter 5 	Continuing Professional Education
§16-71-31 	Basic concept
§16-71-32 	Persons covered
§16-71-33 	Basic requirements of study hours
§16-71-34 	Hours which qualify
§16-71-35 	Deficiency in hours and carryover hours
§16-71-36 	Program classifications
§16-71-37 	Requirements for group programs
§16-71-38 	Requirements for individual self-study
programs
§16-71-39 	Sponsors whose programs automatically
qualify
§16-71-40 	Repealed
§16-71-41 	Requirements for approval by the board
§16-71-42 	Repealed
§16-71-43 	Duration of approval
§16-71-44 	Repealed
§16-71-45 	Information requirements
§16-71-46 	Exceptions
§16-71-47 	Certification to other jurisdiction
§16-71-48 	Exception for temporary permits

§16-71-1
71-3
Subchapter 6 	Repealed
§16-71-52 	Repealed
§16-71-53 	Repealed
§16-71-54 	Repealed
§16-71-55 	Repealed
§16-71-56 	Repealed
§16-71-57 	Repealed
Subchapter 7 	Rules of Conduct
§16-71-61 	Independence, integrity, and
objectivity
§16-71-62 	Competence and technical standards
§16-71-63 	Responsibilities to clients
§16-71-64 	Other responsibilities and practices
Subchapter 8 	Practice and Procedure
§16-71-66 	Administrative practice and procedure
Subchapter 9 	Oral Testimony
§16-71-69 	Oral testimony
SUBCHAPTER l
GENERAL PROVISIONS
§16-71-1 	Objective. 	This chapter has been
adopted by the board of public accountancy, hereafter

§16-71-1
71-4
referred to as “board”, and is intended to clarify
chapter 466, Hawaii Revised Statutes, and to implement
the administration thereof to the end that chapter
466, HRS, may be best effectuated and the public
interest most effectively served. 	[Eff 1/1/74; am and
ren §16-71-1, 6/25/81; am and comp; 6/8/84; comp
10/23/87; comp 2/22/94; comp 6/3/95; comp 1/22/01;
comp 1/30/10; comp 2/13/12; am and comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-4)
§16-71-2 	Biennial renewal; continuing
professional education in ethics or professional
conduct. 	(a) 	Each license of a certified public
accountant and a public accountant shall be renewed
biennially on or before December 31 of each odd-
numbered year by submitting an application, paying a
renewal fee, and attesting that the applicant has
completed at least four hours of continuing
professional education in ethics or professional
conduct.
(b) 	Each permit to practice of a certified
public accountant or public accountant shall be
renewed biennially on or before December 31 of each
odd-numbered year by submitting an application, paying
a renewal fee, and complying with the continuing
professional education requirements in section 16-71-
33.
(c) 	Each firm permit to practice shall be
renewed biennially on or before December 31 of each
odd-numbered year by submitting an application and
paying a renewal fee. 	[Eff 11/21/74; ren §1.02,
3/6/80; am and ren §16-71-2, 6/25/81; am and comp
6/8/84, am and comp 10/23/87; comp 2/22/94; comp
6/3/95; comp 1/22/01; am and comp 1/30/10; comp
2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4) 	(Imp:
HRS §§466-4, 466-5, 466-6)

§16-71-4.5
71-5
§16-71-3 	Notification and filing of names and
addresses and changes. 	The current mailing address of
each certified public accountant, registered public
accountant, public accounting firm, and permit holder
shall be registered with the board. 	The board shall
be immediately notified in writing of all changes.
[Eff 1/1/74; ren §1.03, 3/6/80; am and ren §16-71-3,
6/25/81; am and comp 6/8/84; am and comp 10/23/87;
comp 2/22/94; comp 6/3/95; comp 1/22/01; comp 1/30/10;
comp 2/13/12; am and comp 11/27/21] 	(Auth: 	HRS §466-
4) 	(Imp: 	HRS §466-4)
§16-71-4 	Evidence of authority to practice.
Each permit holder and public accounting firm shall at
all times display evidence of the authority to
practice, together with the certificate or
registration and other evidence of current validation,
in the permit holder's and public accounting firm's
place of business. 	[Eff 1/1/74; ren §1.05, 11/21/74;
ren §1.04, 3/6/80; am and ren §16-71-4, 6/25/81; am
and comp 6/8/84; am and comp 10/23/87; comp 2/22/94;
comp 6/3/95; comp 1/22/01; comp 1/30/10; comp 2/13/12;
comp 11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §§466-
4, 466-7)
§16-71-4.5 	Minimum insurance requirements for a
professional corporation. 	(a) 	Pursuant to section
415A-11, HRS, a professional accounting corporation
may provide security for professional responsibility
by procuring errors and omissions insurance or a
surety bond issued by an insurance company, or any
combination thereof, as the corporation may elect.
(b) 	The minimum amount of errors and omissions
insurance or surety bond issued by an insurance
company for a professional accounting corporation
shall be $100,000 for each shareholder; provided that
the minimum amount for each professional accounting
corporation shall not be less than $250,000. 	[Eff and

§16-71-4.5
71-6
comp 1/30/10; comp 2/13/12; comp 11/27/21] 	(Auth:
HRS §466-4) 	(Imp: 	HRS §§415A-11, 466-4)
SUBCHAPTER 2
DEFINITIONS
§16-71-8 	Definitions. 	As used in this chapter:
"Continuing professional education" or "CPE"
means a formal course or program of learning from a
sponsor approved by the board as provided in this
chapter.
"Incidental to a person's practice in such other
state or country", as used in section 466-7(c)(4),
HRS, means services rendered in this State by a non-
licensee for work performed for a client outside the
State, such as the audit of a Hawaii subsidiary of an
out-of-state parent corporation or an audit of a
Hawaii branch or division of an out-of-state
partnership, joint venture, or individual
proprietorship.
"Not in a public accounting practice" or "not in
public practice" means the status of a certified
public accountant licensed under section 466-5, HRS,
or a public accountant licensed under section 466-6,
HRS, or a public accounting firm under section 466-7,
HRS, that:
(1) 	Does not have a permit to practice under
chapter 466, HRS, or this chapter; or
(2) 	Is not engaged in any form of public
accounting in this State.
"Public accounting practice" or "public practice"
means performing, offering to perform, or holding
oneself out as being able to perform for a fee one or
more types of services involved in the practice of
public accountancy by a certified public accountant
licensed under section 466-5, HRS, who has a permit to

§16-71-10
71-7
practice under section 466-7, HRS, and section 16-71-
24; a public accountant licensed under section 466-6,
HRS, who has a permit to practice under section 466-7,
HRS, and section 16-71-24; or by a public accounting
firm that has a permit to practice under section 466-
7, HRS, and section 16-71-24, including but not
limited to:
(1) 	A sole proprietor or sole practitioner
engaged in public accounting practice;
(2) 	A partner in a domestic or foreign general,
limited, or limited liability partnership of
certified public accountants or public
accountants, or a combination of both;
(3) 	A principal in a domestic or foreign
professional accounting corporation;
(4) 	A member of a domestic or foreign limited
liability company;
(5) 	A staff employee of a domestic or foreign
public accounting firm as defined in section
466-3, HRS;
(6) 	A domestic or foreign professional
accounting corporation;
(7) 	A domestic or foreign general, limited, or
limited liability partnership of certified
public accountants or public accountants, or
a combination of both; or
(8) 	A domestic or foreign limited liability
company. 	[Eff 1/1/74; am and ren §16-71-8,
6/25/81; am and comp 6/8/84; am and comp
10/23/87; comp 2/22/94; comp 6/3/95; comp
1/22/01; am and comp 1/30/10; comp 2/13/12;
am and comp 11/27/21] 	(Auth: 	HRS §466-4)
(Imp: 	HRS §§466-4, 466-5, 466-6)
§16-71-9 	REPEALED. 	[R 1/30/10]
§16-71-10 	REPEALED. 	[R 1/30/10]

§16-71-14
71-8
SUBCHAPTER 3
LICENSE OF CERTIFIED PUBLIC ACCOUNTANT
§16-71-14 	Issuance. 	A person shall be entitled
to the issuance of a license of certified public
accountant upon application to the board and upon the
satisfactory fulfillment of the requirements set forth
in section 466-5(a), HRS. 	[Eff 1/1/74; am and ren
§16-71-14, 6/25/81; am and comp 6/8/84; comp 10/23/87;
comp 2/22/94; comp 6/3/95; comp 1/22/01; am and comp
1/30/10; comp 2/13/12; comp 11/27/21] 	(Auth: 	HRS
§466-4) 	(Imp: 	HRS §466-5)
§16-71-15 	Application for license. 	After
satisfactorily fulfilling the requirements of section
466-5(a), HRS, an application for a license of
certified public accountant shall be filed in
accordance with deadline dates established by the
board and be accompanied by a fee as provided by the
department of commerce and consumer affairs in chapter
16-53. 	[Eff 1/1/74; am and ren §16-71-15, 6/25/81; am
and comp 6/8/84; am and comp 10/23/87; comp 2/22/94;
am and comp 6/3/95; comp 1/22/01; am and comp 1/30/10;
comp 2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4)
(Imp: 	HRS §§466-5, 466-8)
§16-71-16 	Competence, trustworthiness, and
fairness (references). 	Each applicant for a license
of a certified public accountant shall submit three
letters of reference, from persons not related to the
applicant, attesting to the applicant's competence,

§16-71-17
71-9
trustworthiness, and fairness. 	[Eff 1/1/74; am and
ren §16-71-16, 6/25/81; am and comp 6/8/84; comp
10/23/87; comp 2/22/94; comp 6/3/95; comp 1/22/01; am
and comp 1/30/10; comp 2/13/12; comp 11/27/21] 	(Auth:
HRS §466-4) 	(Imp: 	HRS §§466-4, 466-5)
§16-71-17 	Education. 	(a) 	An applicant for a
license of certified public accountant shall:
(1) 	Present satisfactory evidence that the
applicant has received a baccalaureate
degree from a university, college, or other
four-year institution of learning accredited
by a regional or national accrediting agency
or association recognized by the Secretary
of Education under the requirements of 20
United States Code section 1099b, as
amended; or
(2) 	Present satisfactory evidence that the
applicant has received a baccalaureate or
comparable degree from a foreign or U.S.
university, college, or other four-year
institution of learning and provide evidence
that the baccalaureate or comparable degree
qualifies the applicant for acceptance for
an advanced degree at an accredited
university, college, or other four-year
institution of learning as specified in
paragraph (1).
(b) 	An applicant who passed the examination
prior to December 31, 2000, or who earned conditional
credits prior to December 31, 2000 and subsequently
passed the examination before the conditional credits
expired, shall, in addition to meeting the
requirements in subsection (a), present evidence of
satisfactory completion of at least thirty semester
hours of upper division or graduate level study
comprised of such subjects as:
(1) 	Accounting and auditing;
(2) 	Taxation;
(3) 	Management services;

§16-71-17
71-10
(4) 	Computer science;
(5) 	Economics;
(6) 	Business law;
(7) 	Functional fields of business (e.g.,
finance, production, marketing, personnel
relations, business organization, and
business management); or
(8) 	Other business-related subjects as approved
by the board, at an accredited university,
college, or four-year institution of
learning as specified in subsection (a).
The baccalaureate degree and the thirty semester
hours of additional study shall have included a
minimum of eighteen semester hours of upper division
or graduate level accounting and auditing subjects.
In the event the additional studies of thirty
semester hours are completed before the baccalaureate
degree is conferred, the applicant shall furnish the
board a letter from the university, college, or four-
year institution of learning indicating that the
additional studies were not counted toward the
baccalaureate degree.
(c) 	An applicant who did not earn conditional
credits prior to December 31, 2000 and who passed the
examination after December 31, 2000, shall, in
addition to meeting the requirements in subsection
(a), present evidence of satisfactory completion of at
least one hundred fifty semester hours of college
education which shall include:
(1) 	At least twenty-four semester hours in
accounting courses, of which at least
eighteen semester hours are upper division
or graduate level accounting courses,
including without limitation courses in:
(A) 	Financial accounting;
(B) 	Auditing;
(C) 	Taxation; and
(D) 	Managerial accounting; and
(2) 	At least twenty-four semester hours in upper
division or graduate level accounting or

§16-71-17
71-11
non-accounting business-related courses
including without limitation courses in:
(A) 	Economics;
(B) 	Legal and social environment of
business;
(C) 	Business law;
(D) 	Marketing;
(E) 	Finance;
(F) 	Organizational, group, and individual
behavior;
(G) 	Quantitative applications in business;
(H) 	Communication skills;
(I) 	Business ethics;
(J) 	Globalization;
(K) 	Total-quality management;
(L) 	Computer science;
(M) 	Human relations; or
(N) 	Other business-related courses.
(d) 	Each applicant shall present evidence
satisfactory to the board that the requirements
provided in section 466-5(f), or 466-5.5, HRS, as
applicable, have been met. 	Satisfactory evidence
shall take the form of a certified copy of a diploma,
a certified transcript (date and degree granted), or a
statement from a college official indicating that the
applicant will graduate within one hundred twenty days
after the examination.
(e) 	An applicant requesting an exemption from
the educational requirements pursuant to section 466-
5(c), HRS, shall arrange to provide direct
confirmation to the board, from an appropriate source,
that the applicant meets the requirements stated
therein. 	[Eff 1/1/74; am 5/12/78; am 3/6/80; am and
ren §16-71-17, 6/25/81; am and comp 6/8/84; am and
comp 10/23/87; am and comp 2/22/94; am and comp
6/3/95; comp 1/22/01; am and comp 1/30/10; comp
2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4) 	(Imp:
HRS §§466-5, 466-5.5)

§16-71-18
71-12
§16-71-18 	Examination. 	The examination
prescribed in section 466-5(e), HRS, shall consist of
the American Institute of Certified Public Accountants
examination. 	[Eff 1/1/74; am and ren §16-71-18,
6/25/81; am and comp 6/8/84; am and comp 10/23/87;
comp 2/22/94; am and comp 6/3/95; comp 1/22/01; comp
1/30/10; comp 2/13/12; am and comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-5)
§16-71-19 	Computer-based examination. 	(a) 	The
board shall use the examination prescribed by the
American Institute of Certified Public Accountants,
and shall make all necessary arrangements with the
American Institute of Certified Public Accountants
including the grading of the examination. 	The grades
issued by the American Institute of Certified Public
Accountants are advisory only and shall be ratified by
the board to be official.
(b) 	Applications for the examination shall be:
(1) 	Made on a form provided by the board and
filed with the board by the date specified
in the application form; and
(2) 	Accompanied by the examination fee specified
in chapter 16-53 which shall not be
refundable. 	For each section of the
examination, the applicant shall pay a
candidate testing fee that includes the
actual fees charged by the American
Institute of Certified Public Accountants,
National Association of State Boards of
Accountancy, and the test delivery service
provider, as well as the application fees
specified in chapter 16-53. 	An application
shall not be accepted for consideration
unless the application is completed
properly, and the correct fee and supporting
documents required under this chapter and
chapter 466, HRS, are attached to the
application. 	In the case of an applicant

§16-71-19
71-13
who will complete the educational
requirements within one hundred twenty days
after the first examination, a transcript of
the last semester shall be sent to the board
immediately upon the school's release of the
grades.
(c) 	An applicant who, subsequent to filing a
completed application, wishes to reschedule the
applicant's appointment to take the examination, may
reschedule at no charge if the applicant notifies the
board at least thirty days prior to the date of the
appointment to take the examination. 	Rescheduling an
appointment within thirty days before the date of the
appointment to take the examination shall result in
the assessment of a fee specified in chapter 16-53
which shall not be refundable. 	Failure to appear for
the examination shall cause the forfeiture of all fees
charged for the application and the examination.
(d) 	Each applicant shall present evidence
satisfactory to the board that the requirements set
forth in section 466-5, HRS, have been met.
Satisfactory evidence shall take the form of a
certified copy of a diploma, a certified transcript
(date and degree granted), or a statement from a
college official indicating that the applicant will
graduate within one hundred twenty days after the
examination.
(e) 	In the case of an applicant admitted to the
examination on the expectation that the applicant will
complete the educational requirements within one
hundred twenty days, no grades shall be released and
no credit shall be given for any part of the
examination unless the educational requirement is met
within one hundred twenty days of the examination and
evidence of completion is submitted to the board.
(f) 	The examination for the license of certified
public accountant shall be held in the State at places
designated by the board.
(g) 	The board may apply reasonable security
measures which are deemed necessary to confirm the
identification of the applicants for examination.
Notwithstanding any other provision of this chapter,

§16-71-19
71-14
the board may postpone a scheduled examination, the
release of grades, or the issuance of a license due to
a breach of examination security or examination
misconduct.
(h) 	An applicant shall attain a grade of at
least seventy-five, or the uniform passing grade
established through a psychometrically acceptable
standard-setting procedure approved by the board, in
all sections of the examination in order to
satisfactorily complete the entire examination.
(i) 	An applicant may take the required sections
of the examination individually and in any order.
Credit for any section passed shall only be valid for
eighteen months from the last day of the quarter in
which the applicant took that section, and the
applicant shall not be required to maintain a minimum
score on any failed section(s).
(1) 	An applicant shall pass all four sections of
the examination within a rolling eighteen-
month period, which begins on the last day
of the quarter in which the first section(s)
passed is taken.
(2) 	An applicant can retake a failed section in
the same quarter if the applicant’s grade
for the previous attempt of the same section
has been released.
(3) 	In the event all four sections of the
examination are not passed within the
rolling eighteen-month period, credit for
any section(s) passed outside the rolling
eighteen-month period shall expire and that
section(s) shall be retaken.
(j) 	The board shall accept conditional credits
for any section or sections of the examination earned
by the applicant and given under the authority of
another state; provided that the applicant meets the
educational requirements in section 466-5, HRS and
further provided that the conditional credits for any
section or sections earned in another state would have
been given if the applicant had taken the section or
sections in this State.

§16-71-19.1
71-15
(k) 	Notwithstanding any other provision to the
contrary, conditional credits that have expired may be
extended only for good and valid reasons as determined
by the board.
(l) 	The board may waive the examination for a
license of certified public accountant in accordance
with section 466-5(h), HRS; provided that with respect
to the holder of a valid certificate or license of
certified public accountant issued under the laws of
another state, the board shall obtain written
confirmation from an appropriate source in the other
state that the certificate or license upon which an
application for exemption is based is currently valid
and in good standing. 	[Eff 1/1/74; am 11/21/74; am
3/11/76; am 5/12/79; am and ren §16-71-19, 6/25/81; am
and comp 6/8/84; am and comp 10/23/87; am and comp
2/22/94; am and comp 6/3/95; comp 1/22/01; am and comp
1/30/10; comp 2/13/12; am and comp 11/27/21] 	(Auth:
HRS §466-4) 	(Imp: 	HRS §§466-5, 466-8)
§16-71-19.1 	Examination misconduct. 	(a) 	Any
misconduct by an applicant in applying for, taking, or
subsequent to the examination shall be prohibited and
shall invalidate any grade earned by an applicant on
any section of the examination, and may warrant
summary expulsion from the test site, disqualification
from taking the examination permanently or for a
specified period of time, and other action deemed
appropriate by the board.
(b) 	Acts of misconduct include but are not
limited to any of the following:
(1) 	Falsifying or misrepresenting educational
credentials or other information required
for admission to the examination;
(2) 	Failure to follow examination instructions
or procedures;
(3) 	Communication between applicants or with
others inside or outside the test site while
the examination is in progress;

§16-71-19.1
71-16
(4) 	Copying another applicant's answers or
allowing one's answers to be copied;
(5) 	Copying the examination questions or
answers;
(6) 	Substitution of another person to sit in the
test site;
(7) 	Reference to crib sheets, outlines,
textbooks, or other material or electronic
media (other than those provided to the
applicant as part of the examination) inside
or outside the test site while the
examination is in progress;
(8) 	Leaving the test site without prior
approval;
(9) 	Violating the nondisclosure prohibitions of
the examination, or aiding or abetting
another in doing so; or
(10) Retaking or attempting to retake a section
by an individual holding a valid license of
certified public accountant, or by an
applicant who has unexpired conditional
credit for having already passed the same
section, provided that this may be allowed
if the individual has been expressly
authorized by the board to do so.
(c) 	In any case where it appears that misconduct
has occurred or is occurring, the board or its
designee may either summarily expel the applicant
involved in the misconduct from the examination, or
move the applicant to a separate area in the test site
where the applicant can be more closely observed. 	In
any case where the board or its designee permits an
applicant to continue taking the examination, it may:
(1) 	Admonish the applicant;
(2) 	Seat the applicant in a segregated location
for the remainder of the examination;
(3) 	Keep a record of the seat location and
identifying information of the applicant,
and the names and identifying information of
other applicants in close proximity to the
applicant; or

§16-71-21
71-17
(4) 	Notify the national candidate database, the
American Institute of Certified Public
Accountants, and the test delivery service
provider of the circumstances, so that the
applicant may be more closely monitored in
future examination sessions.
(d) 	In any case where the board believes that it
has evidence that an applicant has been involved in
examination misconduct, the board shall conduct an
investigation and may conduct a hearing consistent
with the provisions of section 16-71-66, chapter 16-
201, and chapter 91, HRS.
(e) 	If an applicant is refused credit for any
section(s) of the examination, disqualified from
taking any section, or barred from taking the
examination in the future, the board or its designee
may provide information on its findings and actions
taken to the board of accountancy of another state or
jurisdiction of the United States. 	[Eff and comp
1/30/10; comp 2/13/12; am and comp 11/27/21] 	(Auth:
HRS §466-4) 	(Imp: 	HRS §§466-5, 466-8)
§16-71-20 	REPEALED. 	[R 6/3/95]
§16-71-21 	Experience. 	(a) 	Except as otherwise
provided in section 466-5(d), HRS, an applicant shall
have met one of the following experience requirements
for a license:
(1) 	Completion of one thousand five hundred
chargeable hours in the performance of
audits involving the application of
generally accepted accounting principles and
auditing standards earned while in public
accounting practice; or
(2) 	Completion of two years of professional
experience in:

§16-71-21
71-18
(A) 	Public accountancy practice as defined
in section 466-3, HRS; or
(B) 	Private or government accounting or
auditing work deemed by the board to be
equivalent to professional experience
in public accountancy practice.
(b) 	The professional experience described in
subsection (a)(2) shall:
(1) 	Include:
(A) 	The issuance of reports on financial
statements involving the use of
accounting or auditing skills, or both,
and the application of generally
accepted accounting principles or
another comprehensive basis of
accounting of the United States;
(B) 	Management advisory or consulting
services involving the use of
accounting or auditing skills, or both;
or
(C) 	The preparation of tax returns or
furnishing of advice on tax matters in
accordance with applicable tax laws of
the United States; and
(2) 	Be obtained in one of the following
categories, or any combination thereof:
(A) 	Public practice (i.e., working for a
public accounting firm);
(B) 	Private sector or industry (i.e.,
working for a private business that is
not a public accounting firm);
(C) 	Government (i.e., federal, state,
county, etc.); or
(D) 	Education (i.e., working as an
instructor teaching upper division or
graduate level accounting or auditing
subjects);
provided that the experience described in this
subsection shall not be credited toward or apply to
the thirty months of experience specified in section
466-5(b)(2), HRS. 	The thirty months of experience

§16-71-21
71-19
shall be gained in public practice and shall be
applicable to the extent provided in section 466-5.5,
HRS.
(c) 	All experience required under this chapter
and chapter 466, HRS, shall:
(1) 	Be non-routine, non-clerical, and non-
ministerial in nature;
(2) 	Continually require independent thought and
judgment on accounting or auditing matters;
(3) 	Be gained under the supervision of an
individual who holds or has held a permit in
this State, or the equivalent in another
jurisdiction, during the period of
supervision; provided that an applicant may
be immediately supervised by a non-permit
holder as long as the applicant ultimately
reports to, is instructed by, is reviewed
by, and is evaluated directly by an
individual who holds or has held a permit in
this State, or the equivalent in another
jurisdiction, during the period of
supervision; and
(A) 	The applicant's supervisor shall have
supervised, reviewed, and evaluated the
applicant's work on a routine and
recurring basis.
(B) 	Supervision may be facilitated through
telecommunications systems and devices,
and computers; provided that this shall
not be the primary method of
supervision. 	A majority of the
supervision shall be of a personal
nature.
(C) 	To be acceptable, the supervision shall
have been provided while the applicant
was an employee of the same public
accounting firm, entity, or agency that
employed the supervisor; and
(4) 	Have been of a full-time nature, measured in
terms of weeks. 	Full-time employment shall
constitute at least thirty-five hours per
week.

§16-71-21
71-20
(d) 	Each applicant shall submit a detailed
statement or form prescribed by the board which fully
describes the applicant's experience to the
satisfaction of the board. 	The statement or form
shall be signed and certified by the applicant's
present or former supervisor who holds or has held a
permit in this State, or its equivalent in another
jurisdiction, during the period of supervision. 	[Eff
and comp 6/8/84; am and comp 10/23/87; comp 2/22/94;
am and comp 6/3/95; am and comp 1/22/01; am and comp
1/30/10; am and comp 2/13/12; am and comp
11/27/21] 	(Auth: 	§466-4) 	(Imp: 	HRS §466-5)
§16-71-22 	Knowledge of laws and rules. 	On the
application, each applicant for a license of certified
public accountant shall attest that the applicant has
read and shall abide by the provisions of chapter 466,
HRS, and this chapter. 	[Eff and comp 6/3/95; comp
1/22/01; am and comp 1/30/10; comp 2/13/12; comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-5)
SUBCHAPTER 4
PERMIT TO PRACTICE
§16-71-24 	Permit to practice. 	(a) 	Individual
permit to practice. 	For a permit to practice public
accountancy, a certified public accountant licensed
under section 466-5, HRS, or public accountant
licensed under section 466-6, HRS, shall file an
application and include an attestation that the

§16-71-24
71-21
applicant has fulfilled the continuing professional
education requirements specified in subchapter 5.
(b) 	Firm permit to practice.
(1) 	For a permit to practice public accountancy,
a firm engaged in public accounting in this
State shall file an application listing the
principals of the firm (i.e., sole
proprietor, partners in a partnership,
shareholders of a professional accounting
corporation, or members of a limited
liability company).
(A) 	As of the date of the application, a
foreign or multi-state firm shall list
only those principals who are residents
of Hawaii or who are engaged in public
accounting practice in this State.
(B) 	If the firm has no permanent office in
this State, and no principals who are
residents of this State or principals
who are engaged in public accounting
practice in this State, the firm shall
list a principal with a current Hawaii
individual permit to practice.
(C) 	The Hawaii business operations of a
foreign or multi-state firm shall
constitute a "firm" for purposes of the
firm permit to practice under section
466-7, HRS.
(2) 	For a permit to practice public accountancy,
a firm shall also provide its Hawaii general
excise tax license number pursuant to
section 237-9, HRS, on its application.
Failure to provide a Hawaii general excise
tax license number shall result in a denial
of the firm permit to practice unless the
firm attests that it does not and shall not
have any gross income for engaging in the
practice of public accounting in this State.
(3) 	All principals of a firm physically located
in the State or that has a permanent office
in the State shall be licensed as certified
public accountants or public accountants

§16-71-24
71-22
with individual permits to practice under
section 466-7, HRS.
(4) 	All foreign or multi-state firms engaged in
public accounting practice in this State
shall have at least one licensed certified
public accountant or public accountant
principal (i.e., sole proprietor, partner in
a partnership, shareholder of a professional
accounting corporation, or member of a
limited liability company) with a permit to
practice under section 466-7, HRS.
(5) 	The firm permit to practice shall be
automatically terminated upon the death or
loss of the permit to practice of all
principals of a firm. 	The permit to
practice for the firm may be reinstated upon
the transfer of shares or membership
interests to an individual who holds a
permit to practice under section 466-7, HRS,
or upon the reinstatement of the permit to
practice of the sole proprietor, sole
shareholder, or sole member of a limited
liability company, as the case may be. 	[Eff
1/1/74; am and ren §16-71-24, 6/25/81; am
and comp 6/8/84; am and comp 10/23/87; comp
2/22/94; comp 6/3/95; comp 1/22/01; am and
comp 1/30/10; comp 2/13/12; am and comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS
§466-7)
§16-71-25 	REPEALED. 	[R 6/8/84]
§16-71-26 	Control and reporting. 	(a) 	For the
purpose of this section, a permit shall be obtained
whether or not the public accounting practice is:
(1) 	One of continuation from the prior year;
(2) 	One to be entered into for the first time;
or

§16-71-27
71-23
(3) 	One to be resumed after the permit to
practice for the prior year or prior years
has lapsed.
(b) 	For a 1974 permit, an applicant shall file
an application prior to the commencement date of the
applicant's public practice. 	For a permit to practice
public accountancy for the year 1975 and each year
thereafter, the applicant shall file an application,
on a form prescribed by the board, at least thirty
days prior to the date on which the permit shall
become effective. 	[Eff 1/1/74; am and ren §16-71-26,
6/25/81; am and comp 6/8/84; am and comp 10/23/87;
comp 2/22/94; comp 6/3/95; comp 1/22/01; comp 1/30/10;
comp 2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4)
(Imp: 	HRS §§466-4, 466-7)
§16-71-27 	Temporary permit to practice. 	An
application for a temporary permit to practice,
pursuant to section 466-7(c), HRS, shall be filed on a
form prescribed by the board not later than sixty days
prior to the commencement of the period covered by the
application and shall be accompanied by a statement
signed by an official of the jurisdiction which issued
the certificate or registration, attesting that the
same is currently valid, and unrevoked. 	The board may
waive the filing deadline requirement for good cause.
[Eff 1/1/74; am and ren §16-71-27, 6/25/81; am and
comp 6/8/84; comp 10/23/87; am and comp 2/22/94; comp
6/3/95; comp 1/22/01; comp 1/30/10; comp 2/13/12; comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-7)
SUBCHAPTER 5
CONTINUING PROFESSIONAL EDUCATION

§16-71-31
71-24
§16-71-31 	Basic concept. 	The overriding
consideration in determining whether or not a specific
program qualifies as acceptable continuing
professional education is whether the program is a
formal program of learning which will contribute
directly to the professional competence of a licensee
in public practice. 	Each licensee shall determine the
course of study to be pursued by the licensee within
the guidelines established by this chapter. 	[Eff
1/1/74; am and ren §16-71-31, 6/25/81; am and comp
6/8/84; comp 10/23/87; comp 2/22/94; comp 6/3/95; comp
1/22/01; am and comp 1/30/10; comp 2/13/12; comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-7)
§16-71-32 	Persons covered. 	Any person in public
accounting practice, regardless of the extent or
degree of the practice, shall be covered by this
chapter. 	[Eff 1/1/74; am and ren §16-71-32, 6/25/81;
am and comp 6/8/84; comp 10/23/87; comp 2/22/94; comp
6/3/95; comp 1/22/01; comp 1/30/10; comp 2/13/12; comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-7)
§16-71-33 	Basic requirements of study hours.
(a) 	For a permit to practice public accountancy
covering each biennium, an individual applicant shall
file, together with the application and payment of a
fee for a permit to practice, an attestation as to the
completion of at least eighty hours in continuing
professional education programs. 	The eighty hours
shall have been earned by the applicant within a
twenty-four-month period, and within twenty-four
months prior to the date of the application for a

§16-71-34
71-25
permit to practice, with a minimum of twenty hours
earned within each calendar year.
(b) 	The applicant shall include within the
eighty hours of continuing professional education
programs, at least four hours of continuing
professional education in the subject area of ethics
or professional conduct; provided that these hours may
also be used to simultaneously fulfill the
requirements to renew the license of a certified
public accountant or public accountant under section
16-71-2.
(c) 	The continuing professional education
requirement of eighty hours may be prorated only for
the permit obtained for the biennium period
immediately following an individual's first permit to
practice. 	The proration schedule shall be ten hours
for each three-month period of the biennium. 	The
number of hours required shall be determined by the
date on which the individual's first permit to
practice was approved.
(d) 	An applicant whose first permit was approved
in the first three months of the biennium shall earn
eighty hours to obtain the subsequent permit; an
applicant whose first permit was approved in the
second three months of the biennium shall earn seventy
hours to obtain the subsequent permit; and the total
hours required shall decrease by ten hours for each
three month period to a minimum of ten hours for an
applicant whose first permit was approved in the last
three months of the biennium period. 	[Eff 1/1/74; am
and ren §16-71-33, 6/25/81; am and comp 6/8/84; am and
comp 10/23/87; am and comp 2/22/94; comp 6/3/95; comp
1/22/01; am and comp 1/30/10; comp 2/13/12; am and
comp 11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-
7)
§16-71-34 	Hours which qualify. 	A minimum of
fifty minutes shall constitute one continuing
professional education hour. 	No credit for continuing
professional education hours shall be allowed for time

§16-71-34
71-26
expended for study outside of the classroom nor shall
additional credits be allowed for programs or courses
repeated in any single year. 	The hours spent in
continuing professional education programs shall be
measured, as follows:
(1) 	A one-day program, other than a university
or college course, of not less than six
hours shall equal eight continuing
professional education hours;
(2) 	One hour of attendance in a group program,
other than a university or college course,
shall equal one continuing professional
education hour;
(3) 	Each hour certified by the sponsor of an
individual self-study program shall equal
one continuing professional education hour;
(4) 	An academic credit hour for a semester
earned from an accredited university or
college as specified in section 16-71-
17(a)(1) shall equal fifteen continuing
professional education hours, provided the
credits were not counted toward
certification;
(5) 	An academic credit hour for a quarter earned
from an accredited university or college as
specified in section 16-71-17(a)(l) shall
equal ten continuing professional education
hours, provided the credits were not counted
toward certification;
(6) 	Each university or college classroom hour in
noncredit study shall equal one continuing
professional education hour;
(7) 	Each hour of university or college classroom
work as a teacher, instructor, or lecturer
shall equal one continuing professional
education hour; however, the total
cumulative continuing professional education
hours earned by this method shall not exceed
forty credit hours towards continuing
professional education in any biennium;
credit for the same course shall be awarded
only once during a three year period;

§16-71-34
71-27
(8) 	Each hour spent at a group program, other
than a university or college course, as a
lecturer, discussion leader, or speaker
shall equal one continuing professional
education hour if the attendees of the group
program shall be able to earn continuing
professional education credit as a result of
the attendance; and provided that the total
cumulative hours earned by this method shall
not exceed forty credit hours toward
continuing professional education in any
biennium; credit for the same course shall
be awarded only once during a three-year
period;
(9) 	Fifty per cent of each hour spent as a
reviewer at a formally sponsored inter-
office or inter-firm quality review program;
and provided that the credit shall not
exceed twenty continuing professional
education hours in any biennium;
(10) Credit may be allowed for authoring articles
and books published in any one year,
provided that they contribute to the
professional competence of the licensee.
Credit for the publications may be given on
a self-declaration basis; provided the
credit shall not exceed twenty continuing
professional education hours in any
biennium; and
(11) An applicant for a permit to practice shall
be allowed eighty hours of continuing
professional education credit for passing
the American Institute of Certified Public
Accountants examination for the two years
following the date the applicant is notified
of passing the examination. 	If an applicant
has not taken credit in the two years
following notification, the applicant shall
be allowed to take credit for forty hours of
continuing professional education during the
third year following notification. 	Credit

§16-71-34
71-28
for passing the American Institute of
Certified Public Accountants examination
shall not be taken more than once. 	[Eff
1/1/74; am 11/21/74; am and ren §16-71-34,
6/25/81; am and comp 6/8/84; comp 10/23/87;
am and comp 2/22/94; comp 6/3/95; comp
1/22/01; am and comp 1/30/10; comp 2/13/12;
am and comp 11/27/21] 	(Auth: 	HRS §466-4)
(Imp: 	HRS §466-7)
§16-71-35 	Deficiency in hours and carryover
hours. 	(a) 	In the event an applicant, except as
provided in section 16-71-46, is found to be lacking
in the eighty required continuing professional
education hours as of December 31 of any odd-numbered
year, the applicant shall be required to make up the
deficient hours before the board approves the permit
to practice.
(b) 	In the event the total continuing
professional education hours is found to be in excess
of the minimum requirements in any biennium, the
applicant may carryover the excess to the following
biennium's requirements, provided that the carryover
shall be limited to forty hours. 	It shall be the
responsibility of the licensee to maintain a record of
any carryover credits. 	[Eff 1/1/74; am and ren §16-
71-35, 6/25/81; am and comp 6/8/84; am and comp
10/23/87; am and comp 2/22/94; comp 6/3/95; comp
1/22/01; am and comp 1/30/10; comp 2/13/12; comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-7)
§16-71-36 	Program classifications. 	(a) 	The
continuing professional education programs shall be
classified into two categories, as follows:
(1) 	Group programs as prescribed in section 16-
71-37; and

§16-71-37
71-29
(2) 	Individual self-study programs as prescribed
in section 16-71-38.
(b) 	Continuing professional education programs
may include but are not limited to the following
subjects:
(1) 	Accounting (public, private, and
governmental);
(2) 	Auditing (public, private, and
governmental);
(3) 	Administrative practice;
(4) 	Social environment of business;
(5) 	Ethics or professional conduct;
(6) 	Business law;
(7) 	Business management and organization;
(8) 	Finance;
(9) 	Business valuation;
(10) Insurance;
(11) Management advisory services;
(12) Marketing;
(13) Behavioral ethics;
(14) Communications;
(15) Personal development;
(16) Personnel/human relations;
(17) Computer science;
(18) Economics;
(19) Mathematics;
(20) Production;
(21) Financial planning;
(22) Statistics; and
(23) Taxes. 	[Eff 1/1/74; am and ren §16-71-36,
6/25/81; am and comp 6/8/84; am and comp
10/23/87; am and comp 2/22/94; comp 6/3/95;
comp 1/22/01; am and comp 1/30/10; comp
2/13/12; am and comp 11/27/21] 	(Auth: 	HRS
§466-4) 	(Imp: 	HRS §466-7)
§16-71-37 	Requirements for group programs. 	Each
group program shall:
(1) 	Require attendance;

§16-71-37
71-30
(2) 	Be at least fifty minutes in duration;
(3) 	Be conducted by a qualified instructor or
discussion leader;
(4) 	Through its sponsor, maintain written
records of its attendees and of the program
outline for a period of two years
immediately following the conclusion of the
program;
(5) 	Through its sponsor, issue to each attendee
written evidence of attendance with the
suggested continuing professional education
credit hours shown thereon, exclusive of any
study or preparation time; and
(6) 	Have a board approved sponsor. 	[Eff 1/1/74;
am and ren §16-71-37, 6/25/81; am and comp
6/8/84; am and comp 10/23/87; am and comp
2/22/94; comp 6/3/95; comp 1/22/01; am and
comp 1/30/10; comp 2/13/12; comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS
§466-7)
§16-71-38 	Requirements for individual self-study
programs. 	Each individual self-study program shall:
(1) 	Be conducted by a qualified board approved
sponsor;
(2) 	Through its sponsor, issue a certificate of
completion, specifying subject matter and
recommended continuing professional
education credit hours; and
(3) 	Through its sponsor, maintain written
records of each student and of the program
outline for a period of two years
immediately following the conclusion of the
program. 	[Eff 1/1/74; am and ren §16-71-38,
6/25/81; am and comp 6/8/84; am and comp
10/23/87; am and comp 2/22/94; comp 6/3/95;
comp 1/22/01; am and comp 1/30/10; comp
2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4)
(Imp: 	HRS §466-7)

§16-71-41
71-31
§16-71-39 	Sponsors whose programs automatically
qualify. 	Subject to compliance with the requirements
of sections 16-71-37 and 16-71-38, the program
sponsors who automatically qualify shall include:
(1) 	All non-profit nationally recognized
accounting and auditing associations, such
as the American Institute of Certified
Public Accountants, the National Society of
Accountants, the Accounting and Financial
Women’s Alliance, the National Association
of Accountants, the National Association of
State Boards of Accountancy, and their
respective state societies, state boards,
chapters, or branches;
(2) 	Universities and colleges, provided that the
institutions are accredited as specified
under section 16-71-17(a)(1); or
(3) 	Sponsors approved by another state board or
by the National Association of State Boards
of Accountancy's National Registry. 	[Eff
1/1/74; 	am 5/12/78; am and ren §16-71-39,
6/25/81; am and comp 6/8/84; am and comp
10/23/87; am and comp 2/22/94; comp 6/3/95;
comp 1/22/01; comp 1/30/10; comp 2/13/12; am
and comp 11/27/21] 	(Auth: 	HRS §466-4)
(Imp: 	HRS §466-7)
§16-71-40 	REPEALED. 	[R 2/22/94]
§16-71-41 	Requirements for approval by the
board. 	Sponsors who do not automatically qualify
shall be required to apply to the board on a form
prescribed by the board prior to the program event.
The sponsor shall comply with all requirements,
policies, and standards set forth by the board. 	[Eff

§16-71-41
71-32
l/1/74; am 11/21/74; am and ren §16-71-41, 6/25/81; am
and comp 6/8/84; comp 10/23/87; am and comp 2/22/94;
comp 6/3/95; comp 1/22/01; comp 1/30/10; comp 2/13/12;
comp 	] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS
§466-7)
§16-71-42 	REPEALED. 	[R 2/22/94]
§16-71-43 	Duration of approval. 	The approval by
the board of each group program sponsor and each
individual self-study program sponsor shall expire on
December 31 of every odd-numbered year. 	[Eff 1/1/74;
am and ren §16-71-43, 6/25/81; am and comp 6/8/84;
comp 10/23/87; am and comp 2/22/94; comp 6/3/95; comp
1/22/01; am and comp 1/30/10; comp 2/13/12; comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-7)
§16-71-44 	REPEALED. 	[R 2/22/94]
§16-71-45 	Information requirements. 	(a)
Accompanying an application for a permit to practice,
each certified public accountant and public accountant
shall also file, on a form prescribed by the board, an
attestation relating to the applicant's continuing
professional education, setting forth the following:
(1) 	Name of the course sponsor;
(2) 	Identification number of the course sponsor
as issued by the National Association of
State Boards of Accountancy's National
Registry, the board, or any other board of
accountancy in a state or jurisdiction of
the United States;
(3) 	Title of the course;

§16-71-47
71-33
(4) 	Date attended; and
(5) 	Hours claimed.
(b) 	The board may randomly audit continuing
professional education hours and require an applicant
to submit written evidence satisfactory to the board
demonstrating compliance with the continuing
professional education requirements provided in this
chapter. 	[Eff 1/1/74; am and ren §16-71-45, 6/25/81;
am and comp 6/8/84; comp 10/23/87; am and comp
2/22/94; comp 6/3/95; comp 1/22/01; am and comp
1/30/10; comp 2/13/12; comp 11/27/21] 	(Auth: 	HRS
§466-4) 	(Imp: 	HRS §466-7)
§16-71-46 	Exceptions. 	The board may issue a
permit to practice to any applicant who has not fully
complied with the continuing professional education
requirement in cases where failure by the applicant to
fulfill the requirement has been caused by reason of:
(1) 	Health, as certified by a medical doctor;
(2) 	Military service on extended active duty
with the armed forces of the United States;
or
(3) 	Other good and valid causes, as determined
and approved by the board. 	[Eff 1/1/74; am
and ren §16-71-46, 6/25/81; am and comp
6/8/84; am and comp 10/23/87; comp 2/22/94;
comp 6/3/95; comp 1/22/01; am and comp
1/30/10; comp 2/13/12; comp 11/27/21]
(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-7)
§16-71-47 	Certification to other jurisdiction.
The board shall certify, upon request, to any state as
to the compliance with continuing professional
education requirements under the laws of the State by
any of its licensees. 	[Eff 1/1/74; am and ren §16-71-
47, 6/25/81; comp 6/8/84; comp 10/23/87; comp 2/22/94;
comp 6/3/95; comp 1/22/01; am and comp 1/30/10; comp

§16-71-47
71-34
2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4) 	(Imp:
HRS §466-7)
§16-71-48 	Exception for temporary permits. 	This
subchapter governing continuing professional education
shall not apply to any applicant for a temporary
permit to be issued under section 466-7(c), HRS. 	[Eff
1/1/74; am and ren §16-71-48, 6/25/81; am and comp
6/8/84; comp 10/23/87; am and comp 2/22/94; comp
6/3/95; comp 1/22/01; am and comp 1/30/10; comp
2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4) 	(Imp:
HRS §466-7)
SUBCHAPTER 6 – REPEALED
§16-71-52 	REPEALED. 	[R 2/22/94]
§16-71-53 	REPEALED. 	[R 2/22/94]
§16-71-54 	REPEALED. 	[R 2/22/94]
§16-71-55 	REPEALED. 	[R 2/22/94]
§16-71-56 	REPEALED. 	[R 2/22/94]
§16-71-57 	REPEALED. 	[R 8/25/88]

§16-71-61
71-35
SUBCHAPTER 7
RULES OF CONDUCT
§16-71-61 	Independence, integrity, and
objectivity. 	(a) 	A licensee shall not express an
opinion on financial statements of an enterprise in a
manner as to imply that the licensee is acting as an
independent public accountant with respect thereto
unless the licensee is independent with respect to the
enterprise.
Independence shall be considered to be impaired
if, for example:
(1) 	During the period of the licensee's
professional engagement, or at the time of
expressing an opinion, the licensee:
(A) 	Had acquired or was committed to
acquire any direct or material indirect
financial interest in the enterprise;
(B) 	Was a trustee, executor, or
administrator of any trust or estate
which had acquired or was committed to
acquire any direct or material indirect
financial interest in the enterprise;
(C) 	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 either
the licensee or the enterprise; or
(D) 	Had any loan to or from the enterprise
or any officer, director, or principal
stockholder thereof other than loans of
the following kinds made by a financial
institution under normal lending
procedures, terms, and requirements:

§16-71-61
71-36
(i) 	Loans obtained by the licensee
which are not material in
relation to the net worth of the
borrower;
(ii) 	Home mortgages; and
(iii) 	Other secured loans, except
those secured solely by a
guarantee of the licensee;
(2) 	During the period covered by the financial
statements, during the period of the
professional engagement, or at the time of
expressing an opinion, the licensee:
(A) 	Was connected with the enterprise as a
promoter, underwriter, voting trustee,
director, or officer, or in any
capacity equivalent to a member of
management or of an employee; or
(B) 	Was a trustee of any pension or profit-
sharing trust of the enterprise.
Paragraphs (1) and (2) are not intended to be all-
inclusive examples.
(b) 	A licensee, in the performance of
professional services shall not knowingly misrepresent
facts and shall not subordinate the licensee's
judgment to others. 	In tax practice, however, a
licensee may resolve doubt in favor of a client as
long as there is reasonable support for the position.
(c) 	A licensee shall not pay a commission to
obtain a client, nor accept a commission for a
referral to a client of products or services of
others. 	This subsection shall not prohibit payments
for the purpose of all, or a material part, of an
accounting practice or retirement payments to persons
formerly engaged in the practice of public
accountancy, or payments to the heirs or estates of
those persons.
(d) 	A licensee shall not offer or perform
professional services for a fee which is contingent
upon the findings or results of those services;
provided this subsection shall not apply to
professional services involving federal, state, or

§16-71-62
71-37
other taxes in which the findings are those of the tax
authorities and not those of the licensee, nor shall
it apply to professional services for which the fees
are to be fixed by courts or other public authorities,
and which are, therefore, indeterminate in amount at
the time the professional services are undertaken.
(e) 	A licensee shall not concurrently engage in
the practice of public accountancy and in any other
business or occupation which impairs the licensee's
independence or objectivity in rendering professional
services. 	[Eff 3/6/80; am and ren §16-71-61, 6/25/81;
am and comp 6/8/84; am and comp 10/23/87; am and comp
2/22/94; comp 6/3/95; comp 1/22/01; comp 1/30/10; comp
2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4) 	(Imp:
HRS §466-4)
§16-71-62 	Competence and technical standards.
(a) 	A licensee shall not undertake any engagement for
the performance of professional services which the
licensee cannot reasonably expect to complete with due
professional competence, including compliance, where
applicable, with subsections (b) and (c).
(b) 	A licensee's name shall not be permitted to
be associated with financial statements in a manner as
to imply that the licensee is acting as an independent
public accountant with respect to the financial
statements unless the licensee is in compliance with
applicable generally accepted auditing standards.
Statement on Auditing Standards issued by the American
Institute of Certified Public Accountants, and other
pronouncements having similar generally recognized
authority, are considered to be interpretations of
generally accepted auditing standards, and departures
therefrom shall be justified by those who do not
follow them.
(c) 	A licensee shall not express an opinion that
financial statements are presented in conformity with
generally accepted accounting principles if the
financial statements contain any departure from an
accounting principle which has a material effect on

§16-71-62
71-38
the statements taken as a whole, unless the licensee
can demonstrate that due to unusual circumstances the
financial statements would otherwise have been
misleading. 	In that case, the licensee's report shall
describe the departure, the approximate effects
thereof, if practicable, and the reasons why
compliance with the principles would result in a
misleading statement.
(d) 	A licensee, in the performance of
professional services, shall not permit the licensee's
name to be used in conjunction with any forecast of
future transactions in a manner which may reasonably
lead to the belief that the licensee vouches for the
achievability of the forecast. 	[Eff 3/6/80; am and
ren §16-71-62, 6/25/81; am and comp 6/8/84; am and
comp 10/23/87; comp 2/22/94; comp 6/3/95; comp
1/22/01; comp 1/30/10; comp 2/13/12; comp
11/27/21] 	(Auth: 	HRS §466-4) 	(Imp: 	HRS §466-4)
§16-71-63 	Responsibilities to clients. 	(a) 	A
licensee, without the consent of the client, shall not
disclose any confidential information pertaining to
the client obtained in the course of performing
professional services.
(b) 	Subsection (a) shall not:
(1) 	Relieve a licensee of any obligations under
section 16-71-62(b) and (c);
(2) 	Affect in any way a licensee's obligation to
comply with a validly issued subpoena or
summons enforceable by order of a court;
(3) 	Prohibit disclosures in the course of a
quality review of a licensee's professional
services; or
(4) 	Preclude a licensee from responding to any
inquiry made by the board or any
investigative or disciplinary body
established by law or formally recognized by
the board.

§16-71-63
71-39
(c) 	Members of the board and professional
practice reviewers shall not disclose any confidential
client information which comes to their attention from
licensees in disciplinary proceedings or otherwise in
carrying out their responsibilities, except that they
may furnish the information to an investigative or
disciplinary body of the kind referred to in
subsection (b).
(d) 	When an engagement is completed, a licensee
shall furnish to a client or former client, upon
request made within a reasonable time after original
issuance or preparation of the document in question:
(1) 	A copy of a tax return of the client;
(2) 	A copy of any report, or other document,
issued by the licensee to or for the client;
(3) 	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 the documents when they
form the basis of work done; and
(4) 	A copy of the licensee's working papers, to
the extent that the working papers include
records which would ordinarily constitute
part of the client's books and records and
are not otherwise available to the client,
provided 	that a licensee may require that
any fees due and owing from the client to
the licensee for the licensee's services,
where the client has agreed in advance to
pay such fees, be paid before a copy of the
licensee's working papers is provided to the
client. 	[Eff 1/1/74; am and ren §16-71-63,
6/25/81; am and comp 6/8/84; am and comp
10/23/87; am and comp 2/22/94; comp 6/3/95;
comp 1/22/01; comp 1/30/10; comp 2/13/12;
comp 11/27/21] 	(Auth: 	HRS §466-4) 	(Imp:
HRS §466-4)

§16-71-64
71-40
§16-71-64 	Other responsibilities and practices.
(a) 	A licensee shall not commit any act which
reflects adversely on the licensee's fitness to engage
in the practice of public accountancy.
(b) 	A licensee shall not permit others to carry
out on the licensee's behalf, either with or without
compensation, acts which, if carried out by the
licensee, would place the licensee in violation of the
rules of conduct.
(c) 	A licensee shall not use or participate in
the use of any form of public communication having
reference to the licensee's professional services
which contains a false, fraudulent, misleading,
deceptive, or unfair statement or claim. 	A false,
fraudulent, misleading, deceptive, or unfair statement
or claim includes, but is not limited to, a statement
or claim which:
(1) 	Contains a misrepresentation of fact;
(2) 	Is likely to mislead or deceive because it
fails to make full disclosure of relevant
facts;
(3) 	Contains any testimonial or laudatory
statement, or other statement or implication
that the licensee's professional services
are of exceptional quality;
(4) 	Is intended or likely to create false or
unjustified expectations of favorable
results;
(5) 	Implies educational or professional
attainments or licensing recognition not
supported in fact;
(6) 	States or implies that the licensee has
received formal recognition as a specialist
in any aspect of the practice of public
accountancy, if this is not the case;
(7) 	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

§16-71-64
71-41
all variables affecting the fees that will
be charged; or
(8) 	Contains other representations or
implications that in reasonable probability
will cause an ordinarily prudent person to
misunderstand or be deceived.
(d) 	A licensee shall not by any direct personal
communication solicit an engagement to perform
professional services:
(1) 	If the communication would violate
subsection (c) and it is a public
communication; or
(2) 	By the use of coercion, duress, compulsion,
intimidation, threats, overreaching, or
vexatious or harassing conduct.
(e) 	A licensee shall not practice public
accountancy under a firm name which is misleading in
any way, as to the legal form of the firm, or as to
the persons who are sole practitioners, partners,
officers, managers of a manager managed limited
liability company, or shareholders of the firm, or as
to any matter with respect to which public
communications are restricted by subsection (c). 	A
firm name shall not be used by a licensee in the
practice of public accountancy unless the name has
been registered with and approved by the board and the
registration of the firm has been approved by the
business registration division of the department of
commerce and consumer affairs. 	However, names of one
or more past partners or shareholders may be included
in the firm name of a partnership or corporation or
its successor, and a partner surviving the death or
withdrawal of all other partners may continue to
practice under a partnership name for up to two years
after becoming a sole practitioner.
(f) 	A licensee, when requested, shall respond to
communications from the board within thirty days of
the mailing of the communications by registered or
certified mail. 	[Eff 1/1/74; am and ren §16-71-64,
6/25/81; am and comp 6/8/84; am and comp 10/23/87; am
and comp 2/22/94; comp 6/3/95; comp 1/22/01; comp

§16-71-64
71-42
1/30/10; comp 2/13/12; am and comp 11/27/21] 	(Auth:
HRS §466-4) 	(Imp: 	HRS §466-4)
SUBCHAPTER 8
PRACTICE AND PROCEDURE
§16-71-66 	Administrative practice and procedure.
The rules of practice and procedure for certified
public accountants and public accountants shall be as
provided in chapter 16-201, the rules of practice and
procedure of the department of commerce and consumer
affairs, which are incorporated by reference and made
a part of this chapter. 	[Eff and comp 10/23/87; am
and comp 2/22/94; comp 6/3/95; comp 1/22/01; comp
1/30/10; comp 2/13/12; comp 11/27/21] 	(Auth: 	HRS
§§91-2, 466-4) 	(Imp: 	HRS §§91-2, 466-4)
SUBCHAPTER 9
ORAL TESTIMONY
§16-71-69 	Oral testimony. 	(a) 	The board shall
accept oral testimony on any item which is on the
agenda, provided that the testimony shall be subject
to the following conditions:
(1) 	Each person seeking to present oral
testimony shall notify the board not later
than forty-eight hours prior to the meeting,
and at that time shall state the item on
which testimony is to be presented;

§16-71-69
71-43
(2) 	The board may request that any person
providing oral testimony submit the remarks,
or a summary of the remarks, in writing to
the board;
(3) 	The board may rearrange the items on the
agenda for the purposes of providing for the
most efficient and convenient presentation
of oral testimony;
(4) 	Persons presenting oral testimony shall, at
the beginning of the testimony, identify
themselves and the organization, if any,
that they represent;
(5) 	The board may limit oral testimony to a
specified time period but in no case shall
the period be less than five minutes, and
the person testifying shall be informed
prior to the commencement of the testimony
of the time constraints to be imposed; and
(6) 	The board may refuse to hear any testimony
which is irrelevant, immaterial, or unduly
repetitious to the agenda item on which it
is presented.
(b) 	Nothing in this section shall require the
board to hear or receive any oral or documentary
evidence from a person on any matter which is the
subject of another pending proceeding, subject to the
declaratory relief or rule relief provisions of
chapter 16-201.
(c) 	Nothing in this section shall prevent the
board from soliciting oral remarks from persons
present at the meeting or from inviting persons to
make presentations to the board on any particular
matter on the board's agenda. 	[Eff and comp 10/23/87;
comp 2/22/94; comp 6/3/95; comp 1/22/01; comp 1/30/10;
comp 2/13/12; comp 11/27/21] 	(Auth: 	HRS §466-4)
(Imp: 	HRS §92-3)

Amendments to and compilation of chapter 16-71,
Hawaii Administrative Rules, on the Summary page dated
December 18, 2020, were adopted on December 18, 2020,
following a public hearing held on December 18, 2020,
after public notice are given in the Garden Island,
Maui News, West Hawaii Today, Hawaii Tribune-Herald,
and Honolulu Star Bulletin newspapers November 17,
2020.
These rules shall take effect ten days after
filing with the Office of the Lieutenant Governor.
APPROVED:
/s/ Catherine P. Awakuni
Colón
CATHERINE P. AWAKUNI COLÓN
Director of Commerce and
Consumer Affairs
Date: 10/28/2021
/s/ David Y. Ige
DAVID Y. IGE
Governor
State of Hawaii
Date: 11/17/21
APPROVED AS TO FORM:
/s/ Christopher J.I. Leong
Deputy Attorney General
_’21 NOV 17_

Filed