Oklahoma Administrative Code › Title 10 - Oklahoma Accountancy Board › Chapter 15 - Licensure and Regulation of Accountancy › Subchapter 1 - General Provisions › Section 10:15-1-2 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
In addition to the terms defined in the Oklahoma Accountancy
				  Act, the following words or terms shall be applied when implementing that Act
				  and, when used in this Chapter shall have the following meaning, unless the
				  context clearly indicates otherwise:
"Accounting information system (AIS)"
means a
				  subsystem of the management information system within an organization. The
				  accounting information system collects and records financial and related
				  information used to support management decision making and to meet both
				  internal and external financial reporting requirements. An AIS system includes,
				  but is not limited to, the accounting for transactions cycles such as revenues
				  and receivables, purchases and payables, payroll, inventory, cash receipts and
				  cash disbursements, and related data based systems.
"Act"
means the Oklahoma Accountancy Act,
				  Oklahoma Statutes, Title 59, §§
									15.1
				  through
				  15.38,
				  dealing with the practice of public accountancy in Oklahoma.
"Active"
when used to refer to the status of a
				  registrant, describes an individual who possesses a certificate or license and
				  who has not otherwise been granted "retired" or "inactive" status.
"Advanced"
means the learning activity level
				  most useful for individuals with mastery of the particular topic. This level
				  focuses on the development of in-depth knowledge, a variety of skills, or a
				  broader range of applications. Advanced level programs are often appropriate
				  for seasoned professionals within organizations; however, they may also be
				  beneficial for other professionals with specialized knowledge in a subject
				  area.
"Basic"
means the learning activity level most
				  beneficial to registrants new to a skill or an attribute. These individuals are
				  often at the staff or entry level in organizations, although such programs may
				  also benefit a seasoned professional with limited exposure to the area.
"Code"
means Title 10 of the Oklahoma
				  Administrative Code.
"Compensation"
means the receipt of any
				  remuneration of any kind for public accounting services, including but not
				  limited to salary, wages, bonuses or receipt of any tangible or intangible
				  thing of value.
"Continuing Professional Education"
means the
				  set of activities that enables registrants to maintain and improve their
				  professional competence. It is an integral part of the lifelong learning
				  required to provide competent service.
"CPE"
means continuing professional
				  education.
"CPE credit"
means fifty minutes of
				  participation in a group, independent study or self-study program. One-half CPE
				  credit increments (equal to 25 minutes) are permitted after the first credit
				  has been earned in a given learning activity.
"CPE program sponsor"
means the individual or
				  organization responsible for setting learning objectives, developing the
				  program materials to achieve such objectives, offering a program to
				  participants, and maintaining the documentation required by these standards.
				  The term CPE program sponsor may include associations of CPAs or PAs, whether
				  formal or informal, as well as employers who offer in-house programs.
"Evaluative feedback"
means specific response to
				  incorrect answers to questions in self-study programs. Unique feedback must be
				  provided for each incorrect response, as each one is likely to be wrong for
				  differing reasons.
"Examining Authority"
means the agency, board or
				  other entity, of the District of Columbia, or any state or territory of the
				  United States, entrusted with the responsibility for the governance,
				  discipline, registration, examination and award of certificates, licenses or
				  conditional credits for certified public accountants or public accountants and
				  the practice of public accountancy in said jurisdictions.
"Generally accepted accounting principles"
means
				  the same as Financial Accounting Standards Board (FASB) Accounting Standards
				  Codification Section
				  105,
				  "Generally Accepted Accounting Principles."
"Generally accepted auditing standards"
means
				  those standards which are used to measure the quality of the performance of
				  auditing procedures and the objectives to be obtained by their use. Statements
				  on Auditing Standards issued by the American Institute of Certified Public
				  Accountants, Standards for Audit of Government Organizations, Programs,
				  Activities and Functions issued by the Comptroller General of the United
				  States, Standards of the Public Company Accounting Oversight Board (PCAOB) and
				  other pronouncements having similar generally recognized authority, are
				  considered to be interpretations of generally accepted auditing standards, and
				  departures from such pronouncements, where they are applicable, must be
				  justified by those who do not follow them.
"Group program"
means an educational process
				  designed to permit a participant to learn a given subject through interaction
				  with an instructor and other participants either in a classroom or conference
				  setting or by using the Internet.
"Immediate family members"
means the
				  registrant's, or his/her spouse's, lineal and collateral heirs.
"Inactive"
used to refer to the status of a
				  registrant who is exempt from complying with the CPE requirements as provided
				  in Subchapter
				  10:15-30-8(1)(B),(C),(D),
				  and (E). However, inactive status does not
				  preclude volunteer services for which the inactive registrant receives no
				  direct or indirect compensation so long as the inactive registrant does not
				  sign any documents related to such services as a CPA or PA.
"Independent study"
means an educational process
				  designed to permit a participant to learn a given subject under a learning
				  contract with a CPE program sponsor.
"Instructional methods"
means delivery
				  strategies such as case studies, computer-assisted learning, lectures, group
				  participation, programmed instruction, teleconferencing, use of audiovisual
				  aids, or work groups employed in group, self-study, or independent study
				  programs.
"Intermediate"
means learning activity level
				  that builds on a basic program, most appropriate for registrants with detailed
				  knowledge in an area. Such persons are often at a mid-level within the
				  organization, with operational and/or supervisory responsibilities.
"Internet-based programs"
means a learning
				  activity, through a group program or a self-study program, that is designed to
				  permit a participant to learn the given subject matter via the Internet. To
				  qualify as either a group or self-study program, the Internet learning activity
				  must meet the respective standards.
"Learning activity"
means an educational
				  endeavor that maintains or improves professional competence.
"Learning contract"
means a written contract
				  signed by an independent study participant and a qualified CPE program sponsor
				  prior to the commencement of the independent study that:
(A) Specifies the nature of the independent study program and
				  the time frame over which it is to be completed, not to exceed 15 weeks.
(B) Specifies that the output must be in the form of a
				  written report that will be reviewed by the CPE program sponsor or a qualified
				  person selected by the CPE program sponsor.
(C) Outlines the maximum CPE credit that will be awarded for
				  the independent study program, but limits credit to actual time spent.
"Learning objectives"
means specifications on
				  what participants should accomplish in a learning activity. Learning objectives
				  are useful to program developers in deciding appropriate instructional methods
				  and allocating time to various subjects.
"Learning plans"
means structured processes that
				  help registrants guide their professional development. They are dynamic
				  instruments used to evaluate and document learning and professional competence
				  development. This may be reviewed regularly and modified, as registrants'
				  professional competence needs change. Plans include:
(A) A self-assessment of the gap between current and needed
				  knowledge, skills, and abilities;
(B) A set of learning objectives arising from this
				  assessment; and
(C) Learning activities to be undertaken to fulfill the
				  learning plan.
"Licensee"
means an individual designated as a
				  CPA, PA, or equivalent designation in another state.
"Management information system (MIS)"
means a
				  computer or manual system, or a group of systems, within an organization that
				  is responsible for collecting and processing data to ensure that all levels of
				  management have the information needed to plan, organize, and control the
				  operations of the organization and to meet both internal and external reporting
				  requirements.
"Office"
means a building, room, or series of
				  rooms which are owned, leased, or rented by an individual or firm for the
				  purpose of holding out or carrying out the practice of public
				  accounting.
"Organization"
includes a corporation,
				  government or governmental subdivision or agency, business trust, estate,
				  trust, partnership, limited liability company, sole proprietorship, an
				  association, two or more persons having a joint or common interest, an employer
				  of CPAs or PAs, or any other legal or commercial entity.
"Other professional standards"
means those
				  standards as defined by Statements on Management Advisory Services, Statements
				  on Responsibilities in Tax Practice, Statements on Standards for Accounting and
				  Review Services and Statements of Quality Control Standards, where applicable,
				  issued by the American Institute of Certified Public Accountants.
"Overview"
means learning activity level that
				  provides a general review of a subject area from a broad perspective. These
				  programs may be appropriate for professionals at all organizational
				  levels.
"Personal development"
means a field of study
				  that covers such skills as communications, managing the group process, dealing
				  effectively with others, interviewing, counseling, and career planning.
"Pilot test"
means sampling of at least three
				  independent individuals representative of the intended participants to measure
				  the average completion time to determine the recommended CPE credit for
				  self-study programs.
"Professional competence"
means having requisite
				  knowledge, skills, and abilities to provide quality services as defined by the
				  technical and ethical standards of the profession. The expertise needed to
				  undertake professional responsibilities and to serve the public
				  interest.
"Reinforcement feedback"
means specific
				  responses to correct answers to questions in self-study programs. Such feedback
				  restates why the answer selected was correct.
"Renewal permit"
refers to a permit applied for
				  prior to the expiration of the current permit.
"Retired"
means a registrant who holds a
				  certificate or license and verifies to the Board that the registrant is no
				  longer practicing public accounting or employed. However, retired status does
				  not preclude volunteer services for which the retired registrant receives no
				  direct or indirect compensation so long as the retired registrant does not sign
				  any documents related to such services as a CPA or PA.
"Rolling three (3) calendar year period"
means
				  that active status registrants are required to complete 120 hours of CPE in any
				  three-calendar-year period.
"Self-study program"
means an educational
				  process designed to permit a participant to learn a given subject without major
				  involvement of an instructor. Self-study programs use a pilot test to measure
				  the average completion time from which the recommended CPE credit is
				  determined.
"Sole Proprietorship"
means an unincorporated
				  business enterprise which is owned entirely by one (1) certificate or license
				  holder.
"State"
means the District of Columbia, any
				  state, or territory of the United States.
"Update"
means learning activity level that
				  provides a general review of new developments. This level is for participants
				  with a background in the subject area who desire to keep current.
Added at 10 Ok Reg 2543,
				  eff 7-1-93; Amended at 12 Ok Reg 1963, eff 7-1-95; Amended at 13 Ok Reg 2329,
				  eff 7-1-96; Amended at 16 Ok Reg 2084, eff 7-1-99; Amended at 17 Ok Reg 1835,
				  eff 7-1-00; Amended at 20 Ok Reg 1897, eff 7-1-03; Amended at 21 Ok Reg 1981,
				  eff 7-1-04; Amended at 23 Ok Reg 2123, eff 7-1-06; Amended at 24 Ok Reg 1729,
				  eff 7-1-07; Amended at 25 Ok Reg 1513, eff 7-1-08; Amended at 27 Ok Reg 1690,
				  eff 7-1-10