KRS § 325.220 — KY Code / Title XXVI / Chapter 325 / Section 325.220
325.220 Definitions for chapter
Status: in_force

325.220 Definitions for chapter.

As used in this chapter, unless the context otherwise requires:

(1) "Attest service" means providing the following services:

(a) Any audit or other engagement subject to and to be performed in accordance

with the current versions of the American Institute of Certified Public

Accountants (AICPA) Statements on Auditing Standards (SAS), and

Government Auditing Standards issued by the United States Government

Accountability Office;

(b) Any review of a financial statement subject to and to be performed in

accordance with the current versions of the American Institute of Certified

Public Accountants (AICPA) Statements on Standards for Accounting and

Review Services (SSARS);

(c) Any examination of prospective financial information or other professional

services to be performed in accordance with the current versions of the

American Institute of Certified Public Accountants (AICPA) Statements on

Standards for Attestation Engagements (SSAE);

(d) Any engagement to be performed in accordance with the Public Company

Accounting Oversight Board Auditing Standards; and

(e) Any examination, review, or agreed-upon procedures engagement to be

performed in accordance with the SSAE, other than an examination described

in paragraph (c) of this subsection;

(2) "Board" means the State Board of Accountancy;

(3) "Firm" means a sole proprietorship, partnership, professional service corporation, or

any other form of business organization that is authorized to operate under the laws

of this Commonwealth, complies with the provisions of this chapter, and is issued a

license to practice by the board or is exempt from having to obtain a license

pursuant to KRS 325.301;

(4) "Firm manager" means a licensee of this state or another state designated by a firm

to be responsible for the firm complying with the firm registration and firm

licensing requirements contained in this chapter and administrative regulations

promulgated thereunder;

(5) "License" means a license as a certified public accountant or a firm issued pursuant

to this chapter;

(6) "Licensee" means a certified public accountant, firm, or public accountant, holding

a license to practice issued under this chapter;

(7) "Peer review" means a practice monitoring process designed to promote quality in

attest and compilation services, and protect the public interest. The process shall

comply with standards that are equivalent to or more stringent than the current

version of the Standards for Performing and Reporting on Peer Reviews issued by

the American Institute of Certified Public Accountants (AICPA);

(8) "Public accountant" means a public accountant issued a license to practice by the

Commonwealth of Kentucky under the Public Accounting Act of 1946 as amended;

(9) (a) "Regulated activities" means the offering to perform or the performance for a

client or potential client by a person or firm holding a license issued under this

chapter of one (1) or more types of services involving the use of accounting,

attest, or compilation services, including the issuance of reports on financial

statements, or one (1) or more types of management advisory, financial

advisory, or consulting services, or the preparation of tax returns or the

furnishing of advice on tax matters.

(b) Notwithstanding paragraph (a) of this subsection, this definition shall not

prohibit anyone who is not a certified public accountant from performing

accounting and bookkeeping services, as well as the preparation of tax returns

or financial statements, for which attestation by the preparer is not required.

The board shall promulgate an administrative regulation defining terms, as

necessary, that are not included in this chapter;

(10) "Report," when used with reference to any attest or compilation service, means an

opinion, report, or other form of language that states or implies assurance as to the

reliability of the attested information on financial statements and that also includes

or is accompanied by any statement or implication that the person or firm issuing it

has special knowledge or competence in accounting or auditing. Such 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 person or firm 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 such form of language is

conventionally understood to imply any positive assurance as to the reliability of the

attested information or compiled financial statements referred to or special

competence on the part of the person or firm issuing such language; and it includes

any other form of language that is conventionally understood to imply such

assurance or such special knowledge or competence;

(11) "Sponsoring organization" means a board-approved professional society or other

organization responsible for facilitating and administering a peer review program

that is equivalent to or more stringent than a program as outlined in the American

Institute of Certified Public Accountants (AICPA)'s current version of the Standards

for Performing and Reporting on Peer Reviews, including provisions that provide

guidance for administering peer reviews;

(12) "State" includes and means any state, territory, or insular possession of the United

States, or the District of Columbia; and

(13) "Substantial equivalency" means a determination by the board or its designee that

the education, examination, and experience requirements in the statutes and

administrative regulations of another state for the licensing of a certified public

accountant are comparable or better than those contained in the Uniform

Accountancy Act issued by the American Institute of Certified Public Accountants

(AICPA) and National Association of State Boards of Accountancy (NASBA), or

that an individual certified public accountant's education, examination, and

experience qualifications are comparable or exceed these national standards.