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Licensure
Licensure represents a form of regulation. By regulating a service, the government seeks to define minimum quality standards and require, by granting or denying licenses, compliance with those standards.
Increasingly, outsourcing service providers are entering markets that require licensure. Means of circumventing the licensure requirement include:
These circumventions have attracted the attention of regulators and self-regulatory organizations. In 2005, the American Institute of Certified Public Accountants adopted an ethical rule, for example, that requires disclosure by a CPA to his or her client of the fact that a paraprofessional is performing the services and, indeed, that such service might be performed offshore.
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