Iowa Administrative Code › Agency 193A - Accountancy Examining Board › Chapter 1 - Definitions › Rule 193A-1.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The following definitions apply to the rules of the board of
				accountancy.
"Act"
means the Accountancy Act of 2001 as
				amended by 2008 Iowa Acts, chapter 1106.
"AICPA"
means the American Institute of
				Certified Public Accountants.
"AICPA Code of Professional Conduct"
means the
				AICPA code of professional conduct as amended through January 1, 2024.
"Attest"
or
"attest service"
means the same as defined in Iowa Code section 542.3(1).
"Attest engagement team"
means the team of
				individuals participating in attest service, including those who perform
				concurring and second partner reviews. The attest engagement team includes all
				employees and contractors retained by the firm who participate in attest service,
				irrespective of their functional classification.
"Audit"
means the procedures performed in
				accordance with applicable auditing standards for the purpose of expressing or
				disclaiming an opinion on the fairness with which the historical financial or
				other information is presented in conformity with generally accepted accounting
				principles, another comprehensive basis of accounting, or a basis of accounting
				described in the report.
"Board"
means the same as defined in Iowa Code
				section 542.3(2).
"Certificate"
means the same as defined in Iowa
				Code section 542.3(3).
"Client"
means the same as defined in Iowa Code
				section 542.3(6).
"Commission"
means the same as defined in Iowa
				Code section 542.3(7)  and includes any form of compensation in a fixed or
				variable amount or percentage received for selling, recommending or referring any
				product or service of another, including a referral fee.
"Compensation"
means anything of value received
				by a CPA or LPA while practicing public accounting for selling, recommending or
				referring a product or service of another.
"Compilation"
means the same as defined in Iowa
				Code section 542.3(8).
"Contingent fee"
means the same as defined in
				Iowa Code section 542.3(9).
"Certified public accountant"
or
"CPA"
means the same as defined in Iowa Code section
				542.3(4).
"Examination of prospective financial
				information"
means an evaluation by a CPA of a forecast or projection,
				the support underlying the assumptions in the forecast or projection, whether the
				presentation of the forecast or projection is in conformity with AICPA
				presentation guidelines, and whether the assumptions in the forecast or
				projection provide a reasonable basis for the projection or forecast.
"FASB"
means the Financial Accounting Standards
				Board.
"Financial statement"
means a presentation of
				financial data, including accompanying notes derived from accounting records and
				intended to communicate an entity's economic resources or obligations at a point
				in time or the changes therein for a period of time in conformity with a
				comprehensive basis of accounting, 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 documents.
"Firm"
means a sole proprietorship, partnership,
				corporation, professional corporation, professional limited liability company,
				limited liability partnership or any other form of organization issued a permit
				to practice as a firm under Iowa Code section 542.7 or 542.8 or the office of the
				auditor of state, state of Iowa, when the auditor of state is a certified public
				accountant.
"Forecast"
means prospective financial
				statements that present, to the best of the responsible party's knowledge and
				belief, an entity's expected financial position, results of operations, and
				changes in financial position or cash flows that are based on the responsible
				party's assumptions reflecting conditions it expects to exist and the course of
				action it expects to take.
"GASB"
means the Governmental Accounting
				Standards Board.
"Home office"
means the same as defined in Iowa
				Code section 542.3(10).
"IASB"
means International Accounting Standards
				Board.
"IFRS"
means International Financial Reporting
				Standards.
"IRS"
means the Internal Revenue Service, United
				States Department of the Treasury.
"License"
means the same as defined in Iowa Code
				section 542.3(11).
"Licensed public accountant"
or
"LPA"
means the same as defined in Iowa Code section
				542.3(12).
"Licensed public accounting firm"
means the same
				as defined in Iowa Code section 542.3(13).
"Licensee"
means the same as defined in Iowa
				Code section 542.3(14).
"Managing partner," "managing shareholder,"
or
"managing member"
means the designated individual with ultimate
				responsibility for the operation of a firm's practice.
"NASBA"
means the same as defined in Iowa Code
				section 542.3(17).
"NSA"
means the National Society of
				Accountants.
"Office"
means the same as defined in Iowa Code
				section 542.3(18).
"Owner"
means any person who has equity
				ownership interest in a CPA or LPA firm.
"PCAOB"
means the Public Company Accounting
				Oversight Board created by the Sarbanes-Oxley Act of 2002.
"Peer review,"
as used in 193A-Chapters 11 and
				12, means the same as defined in Iowa Code section 542.3(19).
"Person,"
unless the context indicates
				otherwise, means individuals, sole proprietorships, partnerships, corporations,
				limited liability companies, limited liability partnerships or other forms of
				entities.
"Person associated with a CPA or LPA"
means any
				owner, partner, shareholder, member, employee, assistant, or independent
				contractor of a CPA or LPA firm.
"Practice of public accounting"
means the same
				as defined in Iowa Code section 542.3(24).
"Practice privilege"
means the same as defined
				in Iowa Code section 542.3(25).
"Principal place of business"
means the same as
				defined in Iowa Code section 542.3(26).
"Projection"
means prospective financial
				statements that present, to the best of the responsible party's knowledge and
				belief given one or more hypothetical assumptions, an entity's expected financial
				position, results of operations, and changes in financial position or cash flows
				that are based on the responsible party's assumptions reflecting conditions it
				expects would exist and the course of action it expects would be taken given such
				hypothetical assumptions.
"Report"
means the same as defined in Iowa Code
				section 542.3(27).
"Respondent"
means any person against whom a
				formal statement of charges has been filed.
"Review"
means the same as Iowa Code section
				542.3(1)
"a"
(2).
"SAS"
means statements on auditing
				standards.
"SEC"
means the United States Securities and
				Exchange Commission.
"SSARS"
means the statements on standards for
				accounting and review services.
"State"
means the same as defined in Iowa Code
				section 542.3(28).
"Substantial equivalency"
means the same as
				defined in Iowa Code section 542.3(29).
"Year,"
when used in the context as a time
				measurement of experience in accounting work, means a period of 365
				days.