Delaware Code
Chapter 1. BOARD OF ACCOUNTANCY
§ 111. Requirements for permits to practice by firms.

(a) Each firm with an office in this State and which intends to be or is engaged in the practice of certified public accountancy or the practice of public accountancy in this State shall be required to obtain and maintain a valid permit to practice. The Board shall grant or renew permits to firms that make application and demonstrate their qualifications in accordance with this section.
(b) A firm that does not have an office in this State may engage in the practice of certified public accountancy in this State through an individual practicing pursuant to the practice privilege afforded by § 109 of this title without obtaining a permit under this section or otherwise notifying the Board.
(c) Permits shall be renewed biennially.
(d) An applicant for initial issuance or renewal of a CPA firm permit to practice under this section shall be required to show that:

(1) Notwithstanding any other provision of law, a simple majority of the ownership of the firm, in terms of financial interests and voting rights, of all partners, officers, shareholders, members or managers, belongs to holders of a CPA certificate, CPA permit, or CPA license who are licensed in some state. All partners, officers, shareholders, members or managers, whose principal place of business is in this State, and who perform certified public accounting services in this State hold a valid permit to practice under § 108 of this title, or the corresponding provision of prior law. Although firms may include nonlicensee owners, the firm and its ownership must comply with applicable rules promulgated by the Board.
(2) Any certified public accounting firm as defined in this title may include nonlicensee owners provided that:

a. The firm designated a permit holder of this State who is responsible for the proper registration of the firm and identifies that individual to the Board.
b. All nonlicensee owners are active individual participants in the certified public accounting firm or affiliated entities.
c. The firm complies with such other requirements as the Board may impose by rule.
(e) An applicant for initial issuance or renewal of a PA firm permit to practice under this section shall be required to show that:

(1) Notwithstanding any other provision of law, a simple majority of the ownership of the firm, in terms of financial interests and voting rights, of all partners, officers, shareholders, members or managers, belongs to holders of permits to practice under § 110 of this title. All partners, officers, shareholders, members or managers, whose principal place of business is in this State, and who perform public accounting services in this state hold a valid permit to practice under § 110 of this title. Although firms may include nonlicensee owners, the firm and its ownership must comply with applicable rules promulgated by the Board.
(2) Any public accounting firm as defined in this title may include nonlicensee owners provided that:

a. The firm designated a permit holder of this State who is responsible for the proper registration of the firm and identifies that individual to the Board.
b. All nonlicensee owners are active individual participants in the public accounting firm or affiliated entities.
c. The firm complies with such other requirements as the Board may impose by rule.
(f) For purposes of this section, the employees of a public accounting firm with its principal office or offices outside of this State must obtain a permit for those employees who work in excess of 80 hours in this State or who work for a client or clients located in this State. However, any firm which is engaged to practice public accountancy in this State, for even 1 hour, is required to obtain a permit. Every principal of a public accounting firm who is responsible for the accounting work in this State shall obtain an individual permit to practice under § 110 of this title.
(g), (h) [Repealed].
(i) An applicant for initial issuance or renewal of a permit to practice under this section shall be required to register each office of the firm within this State with the Board and to affirm that all attest and compilation services rendered in this State are under the charge of a person holding an active permit to practice issued under this chapter or qualifies for the practice privilege under § 109 of this title.
(j) An applicant for initial issuance or renewal of permits under this section shall in his or her application list all states in which they have applied for or hold permits as CPA firms and list any past denial, revocation or suspension of a permit by any other state, and each holder of or applicant for a permit under this section shall notify the Board in writing, within 30 days after its occurrence, of any change in the identities of partners, officers, shareholders, members or managers whose principal place of business is in this State, any change in the number or location of offices within this State, any change in the identity of the persons in charge of such offices, and any issuance, denial, revocation or suspension of a permit by any other state.
(k) An applicant for initial issuance or renewal of permits under this section shall in his or her application list all states in which they have applied for or hold permits as PA firms and list any past denial, revocation or suspension of a permit by any other state, and each holder of or applicant for a permit under this section shall notify the Board in writing, within 30 days after its occurrence, of any change in the identities of partners, officers, shareholders, members or managers whose principal place of business is in this State, any change in the number or location of offices within this State, any change in the identity of the persons in charge of such offices, and any issuance, denial, revocation or suspension of a permit by any other state.
(l) Firms which fall out of compliance with the provisions of this section due to changes in ownership or personnel, after receiving or renewing a permit, shall take corrective action to bring the firm back into compliance within 60 days. Failure to bring the firm back into compliance within 60 days will result in the suspension or revocation of the firm permit.
(m) Effective July 1, 2017, the Board shall by rule require as a condition to renewal of permits under this section, that firms that provide attest and/or compilation services be enrolled in a board-approved peer review program and comply with the applicable standards and guidance of that program, provided that any such rule:

(1) Shall be promulgated reasonably in advance of the time when it first becomes effective;
(2) Shall include reasonable provision for compliance by a firm showing that it has, within the preceding 3 years, undergone a peer review. Such compliance requirement shall first be effective for the renewal period ending June 30, 2019; and
(3) Shall require, with respect to any organization administering peer review programs, that it be subject to evaluations by the Board or its designee, to periodically assess the effectiveness of the peer review program under its charge.