Chapter 017
2011 -- H 5576
Enacted 05/27/11
A N A C T
RELATING TO
BUSINESSES AND PROFESSIONS - PUBLIC ACCOUNTANCY
Introduced By: Representatives Flaherty, JP O`Neill, and Petrarca
Date Introduced: March 03, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. Section 5-3.1-3 of the General Laws in Chapter
5-3.1 entitled "Public
Accountancy" is hereby
amended to read as follows:
5-3.1-3.
Definitions. -- As used in this chapter, unless
the context requires otherwise, the
following terms are construed as follows:
(1) "Attest"
means providing the following financial statement services:
(i)
Any audit or other engagement to be performed in accordance with the Statements
on
Auditing Standards (SAS) as adopted by the American
Institute of Certified Public Accountants;
(ii) Any review of a
financial statement to be performed in accordance with the
Statement on Standards for Accounting and Review
Services (SSARS) as adopted by the
American Institute of Certified Public Accountants;
(iii) Any examination
of prospective financial information to be performed in accordance
with the Statements on Standards for Attestation
Engagements (SSAE) as adopted by the
American Institute of Certified Public Accountants;
(iv)
Any services considered attest by the American Institute of Certified
Public
Accountants;
(v) Any services that
will provide assurance on financial information and will be
performed in accordance with appropriate professional
standards;
(vi)
The statements on standards specified in this definition shall be
adopted by reference
by the board pursuant to rulemaking and shall be those
standards developed by the American
(2)
"Authority" means an authority to practice as a public accountant in
this state granted
by the public accountants advisory commission under
former section 5-3-6, (P.L. 1962, chapter
228, Section 1, as amended by P.L.
1970, chapter 272, Section 1).
(3) "Board"
means the board of accountancy, a public authority created by section 5-3.1-4.
(4)
"Certificate" means a certificate as certified public accountant
issued under this
chapter or corresponding provisions of prior law, or a
corresponding certificate as certified public
accountant issued after examination under the law of any other
state.
(5) "Certified
public accountant" or "CPA" means a person holding a certificate
issued
under this chapter or corresponding provisions of prior law
or under the accountancy act or
similar law of any other state.
(6)
"Compilation" means providing a service to be performed in accordance
with the
Statement on Standards for Accounting and Review
Services (SSARS) as adopted by the
American
statements, information that is the representation of management
without undertaking to express
any assurance on the statements.
(7) "Entity"
includes a general partnership, limited liability company, limited liability
partnership, a corporation, a sole proprietor, a trust and joint
venture.
(8) "Good moral
character" for purposes of this section, means lack of a history of
dishonest or felonious acts.
(9)
"Licensee" means the holder of a certificate, authority or permit
issued under this
chapter or under the prior laws of this state.
(10)
"Majority" refers to a sixty-seven percent (67%) more than
fifty percent (50%)
ownership in terms of financial interests and voting rights.
(11) "Peer
review" means a study, appraisal, or review of one or more aspects of the
professional work of a practice unit engaged in the practice of
public accountancy in this state, by
a licensee or licensees who are not affiliated with the
practice unit being reviewed.
(12) "Permit"
means a permit to practice public accountancy issued under section 5-3.1-
7, 5-3.1-8, or 5-3.1-9, or under corresponding
provisions of prior law, or under corresponding
provisions of the law of any other state.
(13) "Practice of
(or practicing) public accounting or accountancy" means the
performance of or the offering to perform, in an independent
posture, for a client or potential
client, one or more kinds of services involving the use of
accounting or auditing skills, in
connection with the issuance of reports on financial statements.
(14) "Practice
unit" means a sole proprietorship, corporation, partnership or other
entity
engaged in the practice of public accounting in this state.
For the purpose of this chapter, the
office of the Auditor General is considered a practice unit.
(15) "Principal
residence" means the state in which a person has the right to register to
vote for, or the right to vote in, general elections and
in which he or she qualifies to file a resident
state income tax return.
(16) "Public
accountant" or "PA" means a person holding an authority as a
public
accountant issued under the prior laws of this state.
(17) "Report"
means an opinion, report, or other form of language that states or implies
assurance as to the reliability of financial statements and
that also includes or is accompanied by a
statement or implication that the person or practice unit
issuing the financial statements has
special knowledge or competence in accounting or auditing. A
statement or implication of special
knowledge or competence may arise from use by the issuer of the
report of names or titles
indicating that the issuer is an accountant or auditor, or from
the language of the report itself. The
term "report" includes any form of language
which disclaims an opinion when that language is
conventionally understood to imply any positive assurance as to the
reliability of the financial
statements referred to and/or any special competence on the part
of the person or practice unit
issuing that language; and it also includes any other form of
language that is conventionally
understood to imply that assurance and/or special knowledge or
competence.
(18) "State"
means the states of the
Guam, and the
(19) "Substantial
equivalency" means a determination by the board of accountancy that
the education, examination and experience requirements
contained in the statutes and
administrative rules of another state or jurisdiction are comparable
to or exceed the education,
examination and experience requirements included in this chapter
or that an individual CPA's
education, examination and experience qualifications are
comparable to or exceed the education,
examination and experience requirements contained in this
chapter. In ascertaining substantial
equivalency as used in this chapter the board shall take into
account the qualifications without
regard to the sequence in which experience, education or
examination requirements were attained.
SECTION 2. This act shall take effect upon passage.
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LC01015
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