Arkansas Administrative Code › Agency 019 - State Board of Accountancy › Rule 019.00.16-001 - 2015 Rule Changes

Current through Register Vol. 49, No. 6, June, 2024
BOARD RULES
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 financial statement services: any audit
			 or other engagement to be performed in accordance with the "Statement on
			 Auditing Standards," any review of a financial statement to be performed in
			 accordance with the "Statements on Standards for Accounting and Review
			 Services," any examination of prospective financial information to be performed
			 in accordance with the "Statements on Standards for Attestation Engagements,"
			 and any engagement to be performed in accordance with PCAOB Auditing
			 Standards.
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 to be performed in accordance with
			 "Statements on Standards for Accounting and Review Services" that is presenting
			 in the form of financial statements information that is the representation of
			 management and/or owners without undertaking to express any assurance on the
			 statements.
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 and regulations, 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 PEER REVIEW
The process of reviewing the work product of a licensee by a
			 qualified individual or firm, the purpose of which is to assure that
			 professional services are performed consistent with applicable
			 standards.
1.14 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.
1.15 PRACTICE OF, OR PRACTICING PUBLIC
		  ACCOUNTING
The performance of attest services as defined in this section or
			 the performance of professional services while using the title or designation
			 certified public accountant, public accountant, CPA, PA, accountant, or
			 auditor.
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.