Title 5
Businesses and Professions

Chapter 3.1
Public Accountancy

§ 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 services:

(i) Any audit or other engagement to be performed in accordance with the Statements on Auditing Standards (SAS);

(ii) Any review of a financial statement to be performed in accordance with the Statement on Standards for Accounting and Review Services (SSARS);

(iii) Any examination of prospective financial information to be performed in accordance with the Statements on Standards for Attestation Engagements (SSAE);

(iv) Any engagement to be performed in accordance with the standards of the public company accounting oversight board;

(v) Any examination, review, or agreed-upon procedures engagement to be performed in accordance with the SSAE, other than an examination described in subsection (1)(iii); and

(vi) The statements on standards specified in this definition shall be adopted by reference by the board pursuant to rulemaking and shall be those developed for general application by recognized national accountancy organizations, such as the American Institute of Certified Public Accountants, and the Public Company Accounting Oversight Board.

(2) “Authority” means an authority to practice as a public accountant in this state granted by the public accountants advisory commission under former § 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 § 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 Institute of Certified Public Accountants, that is presenting in the form of financial 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, corporation, sole proprietor, 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 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 § 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 as defined in subsection (17).

(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 the attested information or compiled 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 that disclaims an opinion when that language is conventionally understood to imply any positive assurance as to the reliability of the attested information or compiled 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 United States, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. The term “this state” means the state of Rhode Island.

(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.