Code of Maryland Regulations › Title 09 - MARYLAND DEPARTMENT OF LABOR › Subtitle 24 - BOARD OF PUBLIC ACCOUNTANCY › Chapter 09.24.01 - General Regulations › Section 09.24.01.01 - The Board

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter,
				the following terms have the meanings indicated:
(1) "Client" means the person that retains a
				licensee for the performance of professional services.
(2) Contingent Fee.
(a) "Contingent fee" means a fee established
				for the performance of any service pursuant to an arrangement in which no fee
				will be charged unless a specified finding or result is attained, or in which
				the amount of the fee is otherwise dependent upon the finding or result of the
				service.
(b) "Contingent fee" does
				not apply to professional services:
(i)
				Involving tax matters, if the fee is determined based on the results of
				judicial proceedings or the findings of governmental agencies; and
(ii) For which the fees are to be fixed by
				the courts or other public authorities.
(3) "Financial statements" means statements
				and related footnotes that purport to show actual or anticipated financial
				position which relates to a point in time or results of operations, cash flow,
				or changes in financial position which relate to a period of time, on the basis
				of generally accepted accounting principles or another comprehensive basis of
				accounting. The term includes specific elements, accounts, or items of the
				financial statements, 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.
(4) "Management course" means a course in
				business-related subjects of 3 semester hours taken to fulfill the requirement
				for a major in accounting and includes the study of:
(a) Controlling;
(b) Decision making;
(c) Leadership;
(d) Organization; and
(e) Planning.
(5) Other Compensation.
(a) "Other compensation" means compensation
				received by a licensee who is engaged in the practice of certified public
				accountancy other than for the performance of professional services, including
				compensation for the sale of products other than the work product of the
				licensee, or for referral of products or services of others.
(b) "Other compensation" does not include
				gifts valued at $100 or less in a single calendar year.
(6) "Practice of certified public
				accountancy" means to perform any of the following accountancy services:
(a) Conducting an audit or an examination of
				financial statements; or
(b)
				Providing a written certificate or opinion as to the correctness of the
				information or the fairness of the presentation of the information in any
				financial statement, schedule, report or exhibit.
(7) Practice of Public Accountancy.
(a) "Practice of public accountancy" means
				the offering to perform or the performance by a person while holding out to the
				public as a licensee, for a client or potential client:
(i) Services involving the use of accounting
				or auditing skills, including the issuance of reports on financial
				statements;
(ii) One or more types
				of management advisory services, consulting, or financial planning services;
				or
(iii) The preparation of tax
				returns or the furnishing of advice on tax matters.
(b) "Practice of public accountancy" includes
				the practice of certified public accountancy.
(8) "Professional services" means any
				services performed or offered to be performed by a licensed certified public
				accountant or permit holder for a client in the course of the practice of
				public accountancy.
(9) "U.S.
				business law" means a course in accounting education of 3 or more semester
				hours taken to fulfill the requirement for a major in accounting, and includes
				the analysis and study of the law regarding:
(a) Agency;
(b) Contracts;
(c) Employment;
(d) Insurance;
(e) Negotiable instruments;
(f) Personal or real property; and
(g) Sales.
(10) Written Certificate or Opinion as to the
				Correctness of the Financial Statement or as to the Fairness of the
				Presentation.
(a) "Written certificate or
				opinion as to the correctness of the financial statement or as to the fairness
				of the presentation" means an opinion, report, or other form of language that
				states or implies assurance as to the reliability of any financial statements,
				and that also includes or is accompanied by any statement or implication that
				the person or firm issuing the written certificate or opinion has special
				knowledge or competence in accounting or auditing. This 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 is a certified
				public accountant or auditor, or may arise from the language of the certificate
				or opinion itself.
(b) "Written
				certificate or opinion as to the correctness of the financial statement or as
				to the fairness of the presentation" includes any:
(i) Form of language which expressly
				disclaims an opinion when that form of language is conventionally understood to
				imply any positive assurance as to the reliability of the financial statements
				referred to; and
(ii) Other form of
				language that is conventionally understood to imply positive assurance or
				special knowledge or competence.
(c) "Written certificate or opinion as to the
				correctness of the financial statement or as to the fairness of the
				presentation" may include special competence on the part of the person or firm
				issuing the language in this subsection.