Final answer:
Shares of a CPA corporation, according to AICPA guidelines, are typically restricted to ownership by licensed CPAs or individuals meeting state Board of Accountancy specifications. Non-CPA ownership may require satisfying alternative practice structure conditions.
Step-by-step explanation:
According to the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, when CPAs like Pickens and Perkins decide to incorporate their accountancy practice, there are specific guidelines about share ownership. Generally, shares of the corporation may only be issued to those holding certain qualifications. Principally, shares should be owned by licensed CPAs or other individuals as specified by that state’s Board of Accountancy. If shares are sold to someone not licensed as a CPA, the corporation may need to meet certain alternative practice structure requirements, which are set out by the AICPA and may include ownership by other professionals such as attorneys or actuaries. Therefore, it is essential that Pickens and Perkins follow the AICPA guidelines and state regulations to ensure their corporation remains in compliance when issuing shares.
Shares of a CPA corporation, according to AICPA guidelines, are typically restricted to ownership by licensed CPAs or individuals meeting state Board of Accountancy specifications. Non-CPA ownership may require satisfying alternative practice structure conditions.