Which of the following would be permitted by the AICPA?
A) John Smith, CPA owns 50 percent of the firm and Joan Jones, non-CPA, owns 50 percent.
B) Non-CPAs own 25 percent of the firm. The non-CPAs do not have a college degree.
C) Non-CPAs own 40 percent of the firm and follow all AICPA requirements.
D) Fred Smith, a non-CPA, owns 10 percent of the firm and has a full-time job separate from the firm and views the ownership purely as an investment.

Question

Quizplus · Accepted Answer

The AICPA permits non-CPA ownership up to 49% of a firm, as long as they follow all AICPA requirements. Options A and B both include non-CPA ownership above 50% and without meeting certain qualifications. Option D includes ownership by a non-CPA who is not actively involved in the firm, but does not specify if the firm meets AICPA requirements for non-CPA ownership.

Which of the Following Would Be Permitted by the AICPA