Arkansas Administrative Code › Agency 235 - DEPARTMENT OF LABOR AND LICENSING › Division 06 - Arkansas State Board of Public Accountancy › Rule 235.06.24-001 - Arkansas State Board of Public Accountancy Rules Last Amended January 26, 2024

Current through Register Vol. 49, No. 6, June, 2024
RULE 1
DEFINITIONS
1.1 ACT, BOARD,
			 STATE, EXAMINATION, PRONOUNS
Throughout these Rules, the "Public Accountancy Act of 1975, as
				amended," codified as A.C.A. §
										17-12-101 et seq., may be referred
				to as "the Act" and the Board of Public Accountancy as "the Board;" "this
				State" refers to the State of Arkansas; "examination" means the examination
				required for a certificate as a Certified Public Accountant prescribed by
				A.C.A. §
										17-12-301 et seq.; and masculine
				terms shall include the feminine and, when the context requires, shall include
				partnerships, limited liability companies and corporations.
1.2 ATTEST
Providing the following services:
a) an audit or other engagement to be
			 performed in accordance with the AICPA "Statements on Auditing
			 Standards,"
b) a review of a
			 financial statement to be performed in accordance with the AICPA "Statements on
			 Standards for Accounting and Review Services,"
c) an examination of prospective financial
			 information to be performed in accordance with the AICPA "Statements on
			 Standards for Attestation Engagements,"
d) an engagement to be performed in
			 accordance with PCAOB auditing standards, and
e) an examination, review, or an agreed upon
			 procedures engagement to be performed in accordance with the AICPA Statements
			 on Standards for Attestation Engagements other than an engagement described in
			 section (c) above.
1.3
			 CERTIFICATE
A certificate as "certified public accountant" issued under
				A.C.A. §
										17-12-301 or a corresponding
				certificate as "certified public accountant" issued after examination under the
				laws of any state.
1.4
			 CLIENT
The person or entity which retains a licensee for the
				performance of professional services.
1.5 COMMISSION
An allowance or consideration paid upon completion of the
				transaction for recommending or referring a product or service to be supplied
				by another person.
1.6
			 COMPILATION
Providing a service of any compilation engagement to be
				performed in accordance with the AICPA "Statements on Standards for Accounting
				and Review Services"
1.7
			 FINANCIAL STATEMENTS
Financial statements are statements and footnotes related
				thereto that purport to show actual or anticipated financial position which
				relates to a point in time or changes in financial position which relate to a
				period of time, including statements which use a cash or other comprehensive
				basis of accounting. The term includes balance sheets, statements of income,
				statements of changes in comprehensive income, statements of retained earnings,
				statements of cash flows and statements of changes in owners' equity, but does
				not include incidental financial data included in management advisory services
				reports to support recommendations to a client, nor does it include tax returns
				and supporting schedules.
1.8 FIRM
A partnership, corporation, limited liability company, sole
				proprietorship, or other entity required to be registered with the Board under
				the provisions of A.C.A. §
										17-12-401 et seq.
1.9 GENERALLY ACCEPTED ACCOUNTING
			 PRINCIPLES
"Generally accepted accounting principles" shall be deemed and
				construed to mean accounting principles or standards generally accepted in the
				United States. For purposes of these rules, generally accepted accounting
				principles are considered to be defined by pronouncements issued by the
				Financial Accounting Standards Board and its predecessor entities and similar
				pronouncements issued by other entities having similar generally recognized
				authority.
1.10 GENERALLY
			 ACCEPTED AUDITING STANDARDS
"Generally accepted auditing standards" shall be deemed and
				construed to mean the generally accepted auditing standards adopted by the
				Board. The Board shall take into consideration interpretations of Generally
				Accepted Auditing Standards as issued by the American Institute of Certified
				Public Accountants and other pronouncements having similar generally recognized
				authority.
1.11 HOME OFFICE
The location specified by the client as the address to which a
				service described in A.C.A. §
										17-12-311(a)(4)
				is directed.
1.12 LICENSEE
The holder of a license, meaning a certificate issued under
				A.C.A. §
										17-12-301 or registered under
				A.C.A. §
										17-12-312 or A.C.A. §
										17-12-401 et. seq. or, in each
				case, a certificate or permit issued or a registration under corresponding
				provisions of prior law.
1.13 PERMIT TO PRACTICE
Permit to practice means a permit to practice public
				accountancy issued under prior provisions of the Act, or under corresponding
				provisions of the law of other states.
1.14 PRACTICE OF, OR PRACTICING PUBLIC
			 ACCOUNTING
The performance of or an offer to perform attest services as
				defined in this section or the performance or an offer to perform professional
				services for the general public.
1.15 PREPARATION OF FINANCIAL STATEMENTS
Providing a service of any preparation of financial statements
				engagement to be performed in accordance with the AICPA "Statements on
				Standards for Accounting and Review Services."
1.16 PRINCIPAL PLACE OF BUSINESS
The primary location from which professional services are
				performed. A person or firm may only have one principal place of business at
				any one time.
Individuals who perform professional services at multiple
				locations, such as individuals who perform attest services on assignment as
				needed in multiple jurisdictions, may designate as their principal place of
				business the location that most often serves as the individual's home base of
				operations.
1.17
			 PROFESSIONAL SERVICES
Services arising out of or related to specialized knowledge or
				skills performed by certified public accountants or public accountants,
				including issuing reports on financial statements, providing management or
				financial advisory services or consulting, preparing tax returns, or providing
				advice on tax matters, providing forensic accounting services, or providing
				internal auditing services.
1.18 PUBLIC COMMUNICATION
A public communication is a communication made in identical
				form to multiple persons or to the world at large, as by television, radio,
				motion picture, newspaper, pamphlet, mass mailing, letterhead, business card,
				electronic transmission or directory.
1.19 RETURNING MILITARY VETERAN
A former member of the United States Armed Forces who was
				discharged from active duty under circumstances other than dishonorable.
1.20 SUBSTANTIAL EQUIVALENCY
A determination by the NASBA National Qualification Appraisal
				Service that:
a. The education,
			 examination and experience requirements of the state in which the individual
			 holds a valid license are comparable to or exceed the education, examination
			 and experience requirements contained in the Uniform Accountancy Act;
			 or
b. The individual CPA's
			 education, examination and experience requirements are comparable to or exceed
			 the education, examination and experience requirements contained in the Uniform
			 Accountancy Act.
1.21
			 UAA
The Uniform Accountancy Act issued jointly by the American
				Institute of Certified Public Accountants (AICPA) and the National Association
				of State Boards of Accountancy (NASBA), as amended from time to time.