Michigan Administrative Code › Department - Licensing and Regulatory Affairs › Bureau of Professional Licensing › Board of Accounting › Accountancy - General Rules › Part 1 - GENERAL PROVISIONS › Section R. 338.5101 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 101.
(1) As
					 used in these rules:
(a) "Board" means the
					 state board of accountancy created under section 721 of the code, MCL
					 339.721.
(b) "Code" means the occupational code, 1980
					 PA 299, MCL
					 339.101 to
					 339.2677.
(c) "Continuing education period" means all
					 or part of a year beginning July 1 and ending June 30.
(d) "Continuous instruction" means education
					 time not including breakfast, lunch, or dinner periods, coffee breaks, or any
					 other breaks in the program.
(e)
					 "CPA" means certified public accountant.
(f) "Disclose" means to provide a written
					 communication from a CPA or CPA firm informing the client, before making a
					 recommendation or referral, that the CPA or CPA firm will receive a commission,
					 referral fee, or contingency fee from a third-party for recommendations or
					 referrals of products or services, or both.
(g) "Enterprise" means a person for which an
					 individual licensee, firm licensee, individual with practice privileges, or
					 out-of-state firm performs professional services.
(h) "Financial statements" means statements
					 and related footnotes that show financial position, results of operations, and
					 cash flows based on generally accepted accounting principles or another
					 comprehensive basis of accounting. Financial statements does not include
					 incidental financial data included in-management advisory services reports to
					 support recommendations to a client and does not include tax returns and
					 supporting schedules of tax returns.
(i) "Generally accepted accounting
					 principles" means accounting principles issued by the applicable nationally or
					 internationally recognized professional standard setting organization related
					 to individual accounting engagements.
(j) "Generally accepted auditing standards"
					 means the standards of professional conduct, issued by the applicable
					 nationally or internationally recognized professional standard setting
					 organization, related to individual audit engagements.
(k) "Individual with practice privileges"
					 means an individual who practices in this state under section 727a of the code,
					 MCL 339.727a.
(l) "Nano-learning program" means a tutorial
					 program designed to allow a participant to learn a given content area in a
					 10-minute period with electronic media and without interaction with a real-time
					 instructor.
(m) "Out-of-state firm"
					 means a firm that may provide certain services and use the title "CPA firm"
					 without obtaining a firm license under the conditions in section 728(4) and (5)
					 of the code, MCL
					 339.728.
(n) "Professional engagement" means an
					 agreement between a client and an individual licensee, firm licensee,
					 individual with practice privileges, or out-of-state firm relative to the
					 performance of professional services.
(o) "Professional services" means any
					 services performed or offered to be performed by an individual licensee, firm
					 licensee, individual with practice privileges, or out-of-state firm for a
					 client in the course of the practice of public accounting under section 720 of
					 the code, MCL
					 339.720.
(p) "Qualifying hours" means continuing
					 education hours that satisfy part 3 of these rules.