Ariz. Admin. Code § R4-1-455.02 - Professional Conduct: Competence and Technical Standards

A. Confidential client information: A certified public accountant, public accountant, or firm shall not disclose confidential information obtained in the course of a professional engagement except with the consent of the client. This requirement shall not be construed to:

1. Relieve a certified public accountant, public accountant, or firm of the obligations under R4-1-455.01(B) and (C) ;

2. Affect the certified public accountant's, public accountant's, or firm's compliance with a validly issued subpoena or summons enforceable by order of a court;

3. Prohibit review of a certified public accountant's, public accountant's, or firm's professional practices as a part of a peer or quality review conducted under Board decision or authority; or

4. Preclude a certified public accountant, public accountant, or firm from responding to an inquiry made by the Board under state statutes.

B. Records disposition responsibility: A certified public accountant, public accountant, or firm shall furnish to a client, or former client, upon request, within a reasonable time after original issuance:

1. A copy of any tax returns prepared for the client;

2. A copy of any reports, or other documents, that were previously issued to the client; and

3. Any accounting or other records belonging to the client that the certified public accountant, public accountant, or firm may have removed from the client's premises, or received for the client's account. The certified public accountant, public accountant, or firm may make a copy of the documents if the documents form the basis for work done by the certified public accountant, public accountant, or firm.

A. In reporting on financial statements for which a registrant has performed attest services (as defined in A.R.S. § 32-701) any of the following will constitute a violation of A.R.S. § 32-741(A)(4):

1. In an audit engagement, failing to:

a. Prepare audit documentation that is sufficient to enable an experienced auditor, having no previous connection with the audit, to understand:

i. The nature, timing, and extent of the audit procedures performed;

ii. The results of the audit procedures performed, and the audit evidence obtained; and

iii. Significant findings or issues arising during the audit, the conclusions reached thereon, and significant professional judgments made in reaching those conclusions;

b. Obtain sufficient appropriate evidence to conclude that the financial statements taken as a whole are free from material misstatement; or

c. Modify the opinion in the auditor's report when:

i. The financial statements as a whole are materially misstated; or

ii. Sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from material misstatement has not been obtained.

2. In a review engagement, failing to:

a. Accumulate sufficient review evidence to provide a reasonable basis for obtaining limited assurance that there are no material modifications that should be made to the financial statements in order to be in conformity with the applicable financial reporting framework; or

b. Modify the accountant's review report for a departure from the applicable financial reporting framework, including inadequate disclosure, that is material to the financial statements.

3. In an examination of prospective financial statements engagement, failing to:

a. Obtain sufficient evidence to provide a reasonable basis for the conclusion that is expressed in the report; or

b. Modify the report when:

i. One or more significant assumptions do not provide a reasonable basis for the prospective financial statements; or

ii. The examination is affected by conditions that preclude application of one or more procedures considered necessary in the circumstances.

B. The provisions of this subsection are not intended to be all inclusive or to limit the application of A.R.S. § 32-741(A)(4).

Notes

Ariz. Admin. Code § R4-1-455.02

Section R4-1-455.02 renumbered from R4-1-455(C) and amended effective April 22, 1992 (Supp. 92-2). Amended effective November 20, 1998 (Supp. 98-4). Amended by final rulemaking at 20 A.A.R. 520, effective 2/4/2014. Amended by final rulemaking at 23 A.A.R. 3246, effective 1/1/2018.