South Carolina Code of Regulations Chapter 1 - DEPARTMENT OF LABOR, LICENSING AND REGULATION BOARD OF ACCOUNTANCY
1. What Chapter 1 Is and Why It Exists
Chapter 1 contains the rules used by South Carolina’s Board of Accountancy to regulate the accounting profession in the state.
Its purpose is to:
Protect the public
Ensure accountants are qualified and ethical
Set standards for licensing, practice, and discipline
Explain how the Board operates
The Board works under the Department of Labor, Licensing and Regulation (LLR) and enforces the state’s accountancy laws.
2. Authority of the Board of Accountancy
The Board has legal authority to:
License Certified Public Accountants (CPAs)
Issue firm permits to accounting firms
Establish education, exam, and experience requirements
Enforce ethical standards
Investigate complaints
Discipline licensees who violate rules
The Board can adopt regulations, conduct hearings, and impose penalties.
3. Definitions and Key Terms
Chapter 1 defines important terms used throughout the rules, such as:
Certified Public Accountant (CPA) – An individual licensed to practice public accounting in South Carolina
Public accounting – Providing accounting services such as audits, reviews, tax preparation, or consulting to the public
Firm – Any business entity offering accounting services
Attest services – Services that involve issuing reports on financial statements (such as audits and reviews)
Licensee – A person or firm licensed by the Board
These definitions ensure consistent interpretation of the rules.
4. Licensing Requirements for CPAs
A. Education Requirements
To become a CPA in South Carolina, an applicant must:
Complete 150 semester hours of college education
Earn at least a bachelor’s degree
Complete specific accounting and business courses required by the Board
B. Examination Requirements
Applicants must pass the Uniform CPA Examination, which tests:
Auditing and attestation
Financial accounting and reporting
Regulation
Business concepts
The Board controls approval of exam eligibility and acceptance of scores.
C. Experience Requirements
Applicants must complete:
A required amount of professional accounting experience
Experience must be verified by a licensed CPA
Experience can include public accounting, government, industry, or academia (if approved)
5. CPA License Renewal and Continuing Education (CPE)
A. License Renewal
CPA licenses must be renewed periodically (usually every two years)
Renewal requires compliance with continuing education rules
B. Continuing Professional Education (CPE)
Licensees must complete a required number of hours of CPE, including:
Accounting and auditing
Tax
Ethics (a mandatory component)
Other professional topics approved by the Board
Failure to meet CPE requirements can result in penalties or license suspension.
6. Firm Permits and Practice Requirements
Accounting firms must:
Register with the Board
Obtain a firm permit to practice public accounting
Designate a CPA responsible for compliance
Meet ownership and management requirements (for CPA-controlled firms)
Firms that perform attest services must meet stricter requirements.
7. Professional Conduct and Ethics
Chapter 1 establishes ethical standards that CPAs must follow, including:
Independence in attest engagements
Integrity and objectivity
Confidentiality of client information
Avoidance of conflicts of interest
Prohibition of fraudulent or deceptive practices
Violations of ethical rules are grounds for discipline.
8. Discipline and Enforcement
The Board may discipline a CPA or firm for:
Fraud or dishonesty
Gross negligence or incompetence
Violations of Board regulations
Criminal convictions related to accounting practice
Failure to comply with CPE requirements
Possible disciplinary actions include:
Reprimand
Fines
License suspension
License revocation
Probation with conditions
The Board follows formal procedures, including notice and hearings.
9. Complaints and Investigations
Anyone may file a complaint against a CPA or firm
The Board has authority to investigate complaints
Licensees must cooperate with investigations
Confidentiality rules apply during investigations
10. Board Procedures and Administration
Chapter 1 also covers:
How Board meetings are conducted
Quorum and voting rules
Recordkeeping
Rulemaking authority
Fees for applications, licenses, and renewals
11. Overall Purpose of Chapter 1
In summary, Chapter 1:
Regulates who may practice accounting in South Carolina
Sets professional and ethical standards
Protects the public from unqualified or unethical accountants
Ensures confidence in financial reporting and accounting services
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