Duggins v. North Carolina State Bd. of Certified Public Accountant Examiners

• Decision Date: 19 March 1975
• Docket Number: No. 7410SC971,7410SC971
• Citation: 212 S.E.2d 657,25 N.C.App. 131
• Court: North Carolina Court of Appeals
• Parties: James N. DUGGINS, Jr. v. NORTH CAROLINA STATE BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS.

Page 657

212 S.E.2d 657

25 N.C.App. 131

James N. DUGGINS, Jr. v. NORTH CAROLINA STATE BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS.

No. 7410SC971.

Court of Appeals of North Carolina.

March 19, 1975.

Certiorari Allowed by Supreme Court May 6, 1975.

Tuggle, Duggins & Donahue, P.A., by Daniel W. Donahue, Greensboro, for plaintiff appellee.

Allen, Steed & Pullen, P.A., by Lucius W. Pullen and D. James Jones, Jr., Raleigh, for defendant appellant.

MORRIS, Judge.

In pertinent part, G.S. § 93--12 provides that the powers and duties of the State Board of Certified Public Accountant Examiners shall be as follows:

'(3) To formulate rules for the government of the Board of and for the examination of applicants for certificates of qualification admitting such applicants to practice as certified public accountants.

(5) To issue certificates of qualification admitting to practice as certified public accountants, each applicant who, having the qualifications herein specified, shall have passed examinations to the satisfaction of the Board, in 'theory of account', 'practical accounting', 'auditing', 'commercial law', and other related subjects. 'From and after July 1, 1961, any person shall be eligible to take the examination given by the Board who is a citizen of the United States, or has declared his intention of becoming such citizen, and has resided for at least one year within the State of North Carolina, is twenty-one years of age or over and of good moral character, submits evidence satisfactory to the Board that he has completed two years in a college or university, or its equivalent, and shall have completed a course of study in accountancy in a school, college or university approved by the Board. Such applicant, in addition to passing satisfactorily the examinations given by the Board, shall have had at least two years' experience on the field staff of a certified public accountant or a North Carolina public accountant in public practice, or shall have served two or more years as an internal revenue agent or special agent under a District Director of Internal Revenue, or at least two years on the field staff of the North Carolina State Auditor under the direct supervision of a certified public accountant and shall have the endorsement of three certified public accountants as to his eligibility. A master's or more advanced degree in economics or business administration from an accredited college or university may be substituted for one year of experience. The Board may permit persons otherwise eligible to take its examinations and withhold certificates until such persons shall have had the required experience.' (Emphasis supplied.)

G.S. § 93--1, which defines certain terms used in Chapter 93, further provides that

'An 'accountant' is a person engaged in the public practice of accountancy who is neither a certified public accountant nor a public accountant as defined in this chapter.',

and

'A 'certified public accountant' is a person engaged in the public practice of accountancy who holds a certificate as a certified public accountant issued to him under the provisions of this chapter.'

The statute further defines a 'public accountant'

'(a) person engaged in the public practice of accountancy who is registered as a public accountant under the provisions of this chapter.',

and provides that

'A person is engaged in the 'public practice of accountancy' who holds himself out to the public as an accountant and in consideration of compensation received or to be received offers to perform or does perform, for other persons, services which involve the auditing or verification of financial transactions, books, accounts, or records, or the preparation, verification or certification of financial, accounting and related statements intended for publication or renders professional services or assistance in or about any and all matters of principle or detail relating to accounting procedure and systems, or the recording, presentation or certification and the interpretation of such service through statements and reports.' (Emphasis supplied.)

Rule 9(c) of Section II of the Rules of the Board, promulgated under the authority of G.S. § 93--12, tracks the experience requirement of the statute in its provisions that:

'Each applicant must submit proof, acceptable to the Board, that he has had:

(1) At least two years' experience on the field staff of a certified public accountant in public practice or a North Carolina public accountant in public practice.

(2) Or, shall have served two or more years as an internal revenue agent or special agent under a District Director of Internal Revenue.

(3) Or, shall have served at least two years on the field staff of the North Carolina State Auditor under the direct supervision of a certified public accountant.

(4) A master's or more advanced degree in economics or business administration from an accredited college or university as provided in Rule (9)(b)(2) may be substituted for one year of experience.'

The major question presented by this appeal is whether the phrase 'in public practice' as used in that portion of G.S. § 93--12(5), which reads 'two years' experience on the field staff of a certified public accountant or a North Carolina public accountant in public practice', is equivalent to the phrase 'public practice of accountancy', as that phrase is defined in G.S. § 93--1(5). The trial court specifically found the two phrases were not equivalent and therefore concluded that '(a) certified public accountant who is also a lawyer engaged in the public practice of law is a certified public accountant in public practice within the meaning of G.S. § 93--12(5).' The defendant Board assigns error to this interpretation of the statute and seeks a reversal of the trial court's decision finding that the plaintiff 'has satisfied the experience requirement of G.S. § 93--12(5).' More specifically, defendant contends that well-settled rules of construction preclude such an interpretation of the statute. We agree.

It is an accepted principle of statutory construction in this State that "parts of the same statute, and dealing with the same subject are 'to be considered and interpreted as a whole . . ."' Fishing Pier v. Town of Carolina Beach, 274 N.C. 362, 370, 163 S.E.2d 363, 369 (1968), (quoting from In Re Hickerson, 235 N.C. 716, 71 S.E.2d 129 (1952)) and cases cited therein. Furthermore, our courts have consistently held that '(s)tatutes dealing with the same subject matter must be construed In pari materia, and harmonized, if possible, to give effect to each.' 7 Strong, N.C. Index 2d, Statutes, § 5, p. 75. Considering and interpreting the provisions of Chapter 93 of the General Statutes as a whole, we think it clear that the plain meaning of G.S. § 93--12(5) is that an applicant for licensing as a certified public accountant shall have two years' experience on the field staff of a certified public accountant In the public practice of accountancy. An examination of the experience requirement of our statutes since 1913 provides additional support for our holding.

Within the act creating a State Board of Accountancy in 1913 our General Assembly provided that:

'Any citizen of the United States, or person who has duly declared his intention of becoming such citizen, over the age of twenty-one years, of good moral character, being a graduate of a high school or having had an equivalent education, Who has had at least three years experience in the practice of accounting, and has passed a satisfactory examination as herein provided, shall be entitled to a certificate to practice accounting and shall be styled and known as a certified public accountant.' (Emphasis supplied.) Public Laws 1913, c. 157, § 8.

The act further provided that '. . . be it understood that by 'public accountant' is meant one actively engaged and practicing accountancy as his principal vocation during the business period of the day . . .'

Chapter 261 of the Public Laws of 1925, which 'was evidently intended to cure the defects or omissions of former statutes', Respess v. Spinning Co., 191 N.C. 809, 813, 133 S.E. 391, 394 (1926), carried forward the experience requirement. Section 11(5) of the act empowered the Board to issue certificates of qualification to practice as certified public accountants to each applicant, 'who, being the graduate of an accredited high school or having an equivalent education shall have had at least two years experience Or its equivalent next preceding the date of his application on the field staff of a certified public accountant or public accountant one of which shall have been as a senior or accountant in charge, and who shall receive the endorsement of three certified public accountants of any state as to his eligibility to become a certified public accountant; or who, in lieu of the two years experience Or its equivalent, above mentioned, shall have had one year's experience after graduating from a recognized school of accountancy; . . .' (Emphasis supplied.) Under the statute 'equivalent' experience was recognized as sufficient to meet the experience requirement for certification. Undoubtedly, plaintiff's chances of becoming qualified for admission to practice as a certified public accountant would have been better under the 1925 act, under the identical circumstances which are before us. We find it significant, however, that the 1951 Session of the General Assembly completely deleted the phrase 'or its equivalent' from the statute effective 1 July 1955.

From 1 July 1955 until 1 July 1961 the statute provided that an applicant, 'in addition to passing satisfactorily the examinations given by the board, shall have had at least two years' experience next preceding the date of his application on the field staff of a certified public accountant or public accountant or on the field staff of an accounting firm of which at least one member is a certified public accountant or public...