Ohio Administrative Code › Title 4701 - Accountancy Board › Chapter 4701-13 - Registration of Offices, Partnerships, and Corporations › Section 4701-13-01 - Definitions

Current through all regulations passed and filed through July 1, 2024
The following words and terms, when
				used in this chapter, shall have the following meanings:
(A)
								"Acceptance
			 letter" means a letter issued by the peer review sponsoring organization which
			 communicates acceptance of a peer review, and contains the name and address of
			 the firm under review, the period covered by the peer review, the results of
			 the peer review, and the date of acceptance and information related to the
			 acceptance of the review.
(B)
								"Attest engagement" is defined in rule
			 4701-9-05
			 of the Administrative Code.
(C)
								"Completion
			 letter" means a letter issued by the peer review sponsoring organization which
			 communicates to the firm that all remedial actions specified in a prior
			 acceptance letter have been completed and the peer review is
			 complete.
(D)
								"Conditional acceptance letter" means an acceptance
			 letter which communicates acceptance of a peer review subject to completion of
			 remedial actions and the date the remedial actions must be
			 completed.
(E)
								"Engagement" means an agreement that describes the
			 business relationship between a client and a CPA or public accounting firm that
			 defines the scope, terms, and costs of the agreement as performed by the CPA or
			 public accounting firm.
(F)
								"Letter of response" means a formal letter issued from
			 the peer review firm to the peer review committee, in response to deficiencies
			 communicated in a conditional acceptance letter.
(G)
								"Peer review"
			 means the study and appraisal, by an independent evaluator, of a public
			 accounting firm's system of quality control to assure it is designed in
			 conformity with professional standards to perform accounting and auditing work
			 ("system review"); or of a sample of a the firm's actual accounting work and
			 procedures ("engagement review").
(H)
								"Peer review
			 committee" means the peer review acceptance committee of the peer review
			 sponsoring organization or the national peer review committee of the "American
			 Institute of Certified Public Accountants," authorized pursuant to division
			 (G)(1) of section 4701.04 of the Revised
			 Code.
(I)
								"Peer review firm" or "attest firm" means a business or
			 permit holder registered with the board that performs or offers to perform work
			 on any engagement that will result in the issuance of any report in accordance
			 with professional standards as defined in rule
			 4701-9-03,
			 4701-9-04,
			 4701-9-05,
			 or
			 4701-9-06
			 of the Administrative Code, including audits, compilations, and
			 reviews.
(J)
								"Peer review oversight committee" is defined in
			 paragraph (A)(6) of rule
			 4701-1-10 of the
			 Administrative Code.
(K)
								"Peer review program administrator" means any
			 organization authorized by the board to administer all or part of the board's
			 peer review program as specified in division (G) of section
			 4701.04 of the Revised Code. The
			 "Ohio Society of Certified Public Accountants" is the board's authorized peer
			 review program administrator and agent pursuant to division (G) of section
			 4701.04 of the Revised
			 Code.
(L)
								"Peer review report" means a report issued by an
			 independent evaluator which summarizes the nature, objectives, scope,
			 limitations, and procedures performed by a public accounting firm that accepts
			 engagements subject to peer review, and assigns a rating to the firm's reviewed
			 work based on peer review standards set by the "American Institute of Certified
			 Public Accountants."
(M)
								"Peer review sponsoring organization" means any
			 organization approved by the board that meets the peer review standards
			 specified in rule
			 4701-13-05
			 of the Administrative Code.
(N)
								"Practice of
			 public accounting" is defined in rule
			 4701-7-04
			 of the Administrative Code.
(O)
								"Professional
			 liability insurance" means any of the following:
(1)
									Commercially
			 available professional liability insurance or a professional liability
			 insurance program;
(2)
									A deposit in trust or in bank escrow of cash, bank
			 certificates of deposit, or United States treasury obligations;
(3)
									A bank letter of
			 credit or insurance company bond.