Ala. Admin. Code r. 30-X-6-.03 - Competence And Technical Standards

Current through Register Vol. 40, No. 6, March 31, 2022

(1) General Standards. A registrant shall comply with the following general standards as interpreted by bodies designated by Council of the American Institute of Certified Public Accountants and must justify any departures therefrom.
(a) Professional Competence. He shall undertake only those engagements which he or his firm can reasonably expect to complete with professional competence.
(b) Due Professional Care. He shall exercise due professional care in the performance of an engagement.
(c) Planning and Supervision. He shall adequately plan and supervise an engagement.
(d) Sufficient Relevant Data. He shall obtain sufficient relevant data to afford a reasonable basis for conclusions or recommendations in relation to an engagement.
(e) Forecasts. He shall not permit his name to be used in conjunction with any forecast of future transactions in a manner which may lead to the belief that he vouches for the achievability of the forecast.
(2) Auditing Standards. A registrant shall not permit his name to be associated with financial statements in such a manner as to imply that he is acting as an independent public accountant unless he has complied with the applicable generally accepted auditing standards promulgated by the American Institute of Certified Public Accountants. Statements on auditing standards issued by the Institute's Auditing Standards Executive Committee are, for the purposes of this rule, considered to be interpretations of the generally accepted auditing standards, and departures from such statements must be justified by those who do not follow them.
(3) Accounting Principles. A registrant shall not express an opinion that financial statements are presented in conformity with generally accepted accounting principles if such statements contain any departure from an accounting principle promulgated by the body designated by Council of the American Institute of Certified Public Accountants to establish such principles which has a material effect of the statements taken as a whole, unless he can demonstrate that due to unusual circumstances the financial statements would otherwise have been misleading. In such cases his report must describe the departure, the approximate effects thereof, if practicable, and the reasons why compliance with the principle would result in a misleading statement.
(4) Other Technical Standards. A registrant shall comply with other technical standards promulgated by bodies designated by Council of the American Institute of Certified Public Accountants to establish such standards, and departures therefrom must be justified by those who do not follow them.

Author: Alabama Board of Public Accountancy

Notes

Ala. Admin. Code r. 30-X-6-.03
Filed September 3, 1982.

Statutory Authority: Code of Ala. 1975, ยงยง 34-1-1, et seq.

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