Alabama accountancy board asks attorney general for guidance on firm ownership by non‑natural persons; reviews proposed rules and national updates

During its Jan. 27 meeting, the Alabama State Board of Public Accountancy voted to request an opinion from the Alabama Attorney General about how the Alabama Public Accountancy Code applies when CPA firm ownership includes non‑natural persons.

Executive Director D. Boyd Busby told the Board the office had received a firm registration request that listed non‑natural persons among the owners and that the Board needed legal guidance on the definition and its application to firm registration mandates under state statute. Terry Sparks, CPA moved that the Board request an Attorney General's opinion; Tod Etheredge seconded and the motion carried on a roll call vote.

The Board also received updates on the status of statute and preliminary proposed rules, but members took no formal action. Jeannine Birmingham, CPA, ASCPA President & CEO, gave a professional issues update. Mr. Busby briefed members on NASBA initiatives, and Chair Steve Smith reviewed the AICPA Private Companies/PEEC exposure draft and proposed ethics rule changes for Alternative Practice Structures. The Board discussed these materials and reviewed statistical summaries of the Alabama CPA Examination and CPE audit results but did not adopt rule changes at this meeting.

By voting to seek an Attorney General opinion, the Board signaled that formal legal guidance is necessary before making determinations about firm registration where ownership structures include entities rather than only natural‑person owners. The motion and discussion were recorded in the official minutes.