Or. Admin. R. 801-005-0010 - Definitions
As used in OAR Chapter 801, the following terms or abbreviations have the following meanings, unless otherwise defined therein:
(1)
Active means
a license issued by the Oregon Board of Accountancy to an individual who has
met the requirements to hold a CPA or PA license, maintains the license and is
in good standing.
(2)
AICPA means American Institute of Certified Public Accountants.
(3)
Applicant means a
person applying for a license to practice public accountancy.
(4)
Attestation Services means
the following professional services required to be performed under the
following standards:
(a) Any audit or other
engagement for which performance standards are included in the Statements on
Auditing Standards (SAS), International Standards on Auditing (ISA), or other
internationally recognized auditing standards;
(b) Any review of a financial statement for
which performance standards are included in the Statement on Standards for
Accounting and Review Services (SSARS);
(c) Any examination of prospective financial
information for which performance standards are included in the Standards for
Attest Engagements (SSAE);
(d) Any
examination, review or agreed upon procedures engagement other than an
examination described in paragraph (c) of this subsection for which performance
standards are included in the Statements on Standards for Attestation
Engagements (SSAE); and
(e) Any
engagement for which performance standards are included in the Auditing
Standards of the Public Company Accounting Oversight Board in the United States
(PCAOB).
(f) The statements on
standards specified in subsections (a) through (d) of this definition are those
developed by the AICPA.
(5)
Business organization means
any form of business organization authorized by law, including but not limited
to a proprietorship, partnership, corporation, limited liability company,
limited liability partnership or professional corporation.
(6)
CPA or Certified Public
Accountant means a person who has a certificate of certified public
accountant issued under ORS
673.040.
(7)
CPA Exam means the Uniform
Certified Public Accountant Examination.
(8)
CPE means continuing
professional education.
(9)
Candidate means a person applying for the CPA Exam.
(10)
Censure means an official
written expression of reprimand, by Board action, to a licensee for specified
conduct.
(11)
Certificate means a certificate of certified public accountant
issued under ORS
673.040.
(12)
Client means a person or
entity who agrees with a licensee, or employer of a licensee to receive any
professional service from the licensee or employer of licensee. An employer is
considered a client for inactive status licensees.
(13)
Commission means a fee
calculated as a percentage of the total value of the sale of a product or
service that is paid or received in the form of money or other valuable
consideration.
(14)
Compilation Services means a professional service required to be
performed in accordance with the Statement on Standards for Accounting and
Review Services (SSARS) in which the person performing the services presents a
financial statement that:
(a) Is based on the
responsibility of the owner or management of the company for which the
statement is presented; and
(b)
Does not include assurances by the person that the representations in the
financial statement conform to the applicable reporting
framework.
(15)
Confidential Client Information is information that is obtained
from a source or developed by the licensee in the course of performing
professional services for the client, excluding information available to the
public.
(16)
Contingent
fee means a fee established for the performance of any professional
service and directly or indirectly paid to a licensee pursuant to an
arrangement in which no fee will be charged unless a specified finding or
result is attained, or in which the amount of the fee is otherwise dependent
upon the finding or result of such service. A fee is not contingent if the fee:
(a) Is fixed by courts or other public
authorities; or
(b) In tax matters,
is determined based on the results of judicial proceedings or the findings of
governmental agencies.
(17)
Direct Supervision is
regular and meaningful interaction between the supervisor licensee and the
person being supervised in terms of planning, coordinating, guiding,
inspecting, controlling, and evaluating activities, and having authority over
the employee being supervised. A licensee acting as a consulting or independent
contractor to the applicant's employer will not meet the requirement of direct
supervision.
(18)
Enterprise means any person or entity, whether organized for
profit or not, for which a licensee provides public accounting services.
(19)
Expired means a
license that has not been renewed after six years from the close of the last
license period for which the license was active, inactive or retired. An
expired license may be restored only if the Board determines that there is good
cause to do so.
(20)
Fees include commissions, contingent fees and referral fees.
(21)
Financial
statements means the presentation of financial data, including
accompanying notes, that is derived from accounting records and intended to
communicate an entity's economic resources or obligations or the changes
therein, at a specific point in time, and/or the results of operations for a
specific period of time, presented in accordance with generally accepted
accounting principles or a applicable reporting framework other than generally
accepted accounting principles. Financial presentations included in tax returns
are not financial statements. Incidental financial data included in management
advisory services reports to support recommendations to a client are not
financial statements. The method of preparation (for example, manual or
computer preparation) is not relevant to the definition of a financial
statement.
(22)
Firm
means a business organization as defined in ORS
673.010
that is engaged in the practice of public accountancy and is required to be
registered with the Board.
(23)
First time candidate means a candidate for the CPA exam who is
sitting for the exam for the first time in Oregon.
(24)
Generally Accepted Accounting
Principles means accounting principles or standards generally accepted
in the United States, including but not limited to Statements of Financial
Accounting Standards and interpretations thereof, as published by the Financial
Accounting Standards Board, and Statements of Governmental Accounting Standards
and interpretations thereof, as published by the Government Accounting
Standards Board and the International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board (IASB).
(25)
Generally Accepted Auditing
Standards means the Generally Accepted Auditing Standards including but
not limited to those standards adopted by the American Institute of Certified
Public Accountants, together with interpretations thereof, as set forth in
Statements on Auditing Standards issued by the AICPA, and for federal audits,
the Single Audit Act and related U.S. Office of Management and Budget Circulars
published by the Government Accountability Office, and International Standards
on Auditing (ISAs) issued by International Federation of Accountants (IFAC)
through the International Auditing and Assurance Standards Board
(IAASB).
(26)
Holding out as
a CPA or PA means to assume or use by oral or written communication the
titles or designations "certified public accountant" or "public accountant" or
the abbreviations "CPA" or "PA", or any number or other title, sign, card,
device or use of any internet domain or e-mail name, tending to indicate that
the person holds a valid certificate or license under the authority of ORS 673
as a certified public accountant or a public accountant.
(27)
Inactive status means a
license status granted by the Board to a licensee:
(a) Whose license is not expired, suspended,
revoked or in retired status; and
(b) Who has met and agreed to all conditions
and requirements set out in OAR 801-010-0120 relating to inactive status
licensure.
(28)
In
good standing means the status of a holder of a license or firm
registration issued by any jurisdiction that is not suspended, revoked,
expired, resigned or lapsed. The good standing status of a licensee or
registered firm will not be affected by the lapse of a license issued in
another jurisdiction provided that the licensee holds an active, inactive or
retired license to practice public accountancy in the State of
Oregon.
(29)
Jurisdiction means the licensing authority for the practice of
public accountancy in any state, U.S. Territory or foreign country.
(30)
Lapsed means a license
status that is not renewed within 60-days of the close of a license period.
(a) Lapsed licensees are not permitted
practice public accounting as defined in OAR 801-005-0010(41).
(b) A person in lapsed status must not hold
out in any form or manner that they are a CPA or PA.
(c) A lapsed license may be reinstated to
active, inactive or retired status only prior to becoming expired.
(31)
License means:
(a) A certificate, permit or registration, or
a license issued under ORS
673.100,
enabling the holder thereof to practice public accountancy in this state;
or
(b) A certificate, permit,
registration or other authorization issued by a jurisdiction outside this state
enabling the holder thereof to practice public accountancy in that
jurisdiction.
(32)
Licensee means the holder of a license as defined in these
rules.
(33)
Material
participation means participation that is regular, continuous and
substantial.
(34)
Manager means a manager of a limited liability company.
(35)
Member means a member of a
limited liability company.
(36)
NASBA means National Association of State Boards of
Accountancy.
(37)
Non-licensee owner means a person who does not hold a certificate,
license or permit as a certified public accountant or public accountant in
Oregon or in any other jurisdiction.
(38)
PA or Public Accountant
means a person who is the holder of a license issued under ORS
673.100.
(39)
Peer Review means a study,
appraisal or review of one or more aspects of the public accountancy work of a
holder of a license under ORS
673.150
or of a registered business organization that performs attestation services or
compilation services that is conducted by a CPA who holds an active license
issued by any state or a public accountant licensed under 673.100 who was
required to pass the audit section of the Uniform CPA Exam as a requirement for
licensing. The peer reviewer must also be independent of the license holder or
registered business organization being reviewed.
(40)
Permit means a license to
practice public accountancy issued under ORS
673.150.
(41)
Practice of public
accountancy means performance of or any offer to perform one or more
services for a client or potential client, including the performance of such
services while in the employ of another person by a licensee, professional
services of accounting, tax, personal financial planning, litigation support
services, and those professional services for which standards are promulgated.
These standards include Financial Accounting Standards Board (FASB) Accounting
Standards Codification (ASC), Statements of Financial Accounting Standards,
Statements on Auditing Standards, Statements on Standards for Accounting and
Review Services, Statements on Standards for Consulting Services, Statements of
Governmental Accounting Standards, International Financial Reporting Standards,
International Accounting Standards, International Standards on Auditing,
Statements on Standards for Attestation Engagements, and Statements on
Standards for Valuation Services.
(a) Only
actively licensed CPAs or PAs are permitted to perform the services included in
the definition of the practice of public accountancy as stated above.
(b) Inactive licensees are limited to the
provisions of OAR 801-010-0120.
(c)
Retired licensees may use accounting skills as a volunteer or to provide pro
bono tax services work so long as there is no compensation or remuneration of
any kind offered or paid.
(42)
Preparation of Financial
Statements means providing a service of any preparation of financial
statements engagement to be performed in accordance with the Statements on
Standards for Accounting and Review Services (SSARS).
(43)
Principal Place of Business
means the office location where the licensee performs public accounting
services, and designated by a person for purposes of substantial equivalency
and reciprocity.
(44)
Professional means arising out of or related to the specialized
knowledge or skills associated with certified public accountants and public
accountants.
(45)
Professional services means any services performed or offered to
be performed by a licensee for a client or potential client in the course of
the practice of public accountancy.
(46)
Regional Accreditation
means the college or university is accredited by one of the six regional
accrediting associations or by another accrediting body that is recognized by
the Board.
(47)
Referral
fee means a referral fee that includes, but is not limited to, a rebate,
preference, discount or any item of value, whether in the form of money or
otherwise, given or received by a certified public accountant, public
accountant or firm, to or from any third party, directly or indirectly, in
exchange for the purchase of any product or service, unless made in the
ordinary course of business.
(48)
Registration means the authority issued under ORS
673.160
to a business organization to practice public accountancy in this
state.
(49)
Report.
"Report", when used with reference to attestation services or compilation
services means an opinion or other form of language that states or implies
assurance as to the reliability of the attested information or compiled
financial statements and that also includes or is accompanied by any statement
or implication that the person or firm issuing it has special knowledge or
competence in accounting or auditing. Such a statement or implication of
special knowledge or competence may arise from use by the issuer of the report
of names or titles indicating that the person or firm is an accountant or
auditor or may arise from the language of the report itself.
(a) The term "report" includes any form of
language that:
(A) Disclaims an opinion when
the form of language implies any positive assurance as to the reliability of
the attested information or the compiled financial statements referred to or of
the special knowledge or competence on the part of the person of firm issuing
the language;
(B) Implies any
positive assurance as to the reliability of the attested information or
compiled financial statements referred to or of the special knowledge or
competence on the part of the person or firm issuing the language; or
(C) Relates to the affairs of a person and
that is conventionally used by licensees in reports or financial statements.
(b) Language Not
Constituting a Report: The following statement, signed by a person who does not
hold a license issued under ORS
673.150,
shall not constitute a report under ORS
673.320
so long as the statement is not accompanied by any wording indicating the
person is an accountant or auditor or other language prohibited by ORS
673.020,
673.030,
673.310
or
673.320:
"The accompanying balance sheet (or . . .) of XYZ Company as of (date) and the related statements of income (or retained earnings or cash flows) for the year then ended have been prepared by me (us). The information presented in these financial statements is the responsibility of management (owners)."
(50)
Retired means a license status conferred by the Board upon a
licensee who:
(a) At any age, has held an
active license in good standing to practice public accountancy in Oregon for a
combined period of not less than 20 years, or
(b) Has reached 65 years of age,
and
(c) Has met and agreed to all
conditions and requirements set out in OAR 801-010-0120 relating to retired
status licensure.
(51)
Returning candidate means a person who has received grades for any
section of the Uniform CPA exam who applies to sit for any part of the CPA exam
in Oregon.
(52)
Revoked means a license, certificate or permit that has been fully
canceled and cannot be reinstated.
(53)
Single Audit Act means the
Single Audit Act with the Single Audit Act Amendments of 1996, as published by
the United States Government Accountability Office, Office of Management and
Budget.
(54)
Sole
Practitioner/Sole Proprietor means a CPA or PA who practices
independently and may include unlicensed support personnel, but does not
include any other licensed CPA's or PA's.
(55)
Standards for Accounting and
Review Services means the Statements on Standards for Accounting and
Review Services published by the AICPA.
(56)
Standards for board approved peer
review programs means the Standards for Performing and Reporting on Peer
Reviews published by the AICPA.
(57)
Statements on Standards for
Attestation Engagements means the statements by that name issued by the
AICPA.
(58)
State
means any state, territory or insular possession of the United States, and the
District of Columbia.
(59)
Substantial equivalency means:
(a) An individual holds a valid license as a
certified public accountant from another state that requires an individual, as
a condition of licensure as a certified public accountant to:
(A) Complete at least 150 semester hours of
college education and obtain a baccalaureate or higher degree conferred by a
college or university;
(B) Achieve
a passing grade on the Uniform Certified Public Accountant Examination;
and
(C) Possess at least one year
of experience, verified by a supervisor licensee, providing any type of service
or advice involving the use of accounting, attestation, compilation, management
advisory, financial advisory, tax or related consulting skills, obtained
through public practice or government, industry or academic work; or
(b) An individual licensee who
holds a valid license from another state but that state does not have the
qualifications specified in (a) but can provide evidence that they have met the
requirements of (a) will be deemed substantially equivalent.
(60)
Supervisor
Licensee is a licensee who provides direct supervision to an applicant
and provides verification of any experience requirement. Supervisor licensee
must have held a valid license during the period of supervision.
(61)
Suspended means a licensee
who is not permitted to practice public accountancy for a period of
time.
(62)
Uniform
Accountancy Act (UAA) is a model bill and set of regulations designed by
the AICPA and NASBA to provide a uniform approach to regulation of the
accounting profession, provisions of which may or may not be adopted by state
boards of accountancy.
(63)
(a)
Working papers include but
are not limited to all statements, records, schedules, general ledgers,
journals, trial balances and depreciation schedules made by the licensee
incident to or in the course of rendering services to a client or former
client. Working papers are and shall remain the property of the licensee in the
absence of an express agreement to the contrary between the licensee and
client.
(b) In addition to the
requirements specified in paragraph above, attest documentation shall include,
but not be limited to, the following:
(A) The
objectives, scope and methodology, including any sampling criteria used;
(B) Documentation of the work
performed to support significant conclusions and judgments, including
descriptions of transactions and records examined that would enable a reviewer
with relevant knowledge and experience, having no previous connection with the
attest engagement, to examine the same transactions and records; and
(C) Evidence of any supervisory review of the
work performed.
(64)
Valid means a certified
public accountant or a public accountant license, municipal roster authority,
firm registration or chartered accountant certificate that is in active status
and in good standing with the appropriate licensing authority. A license in
active status is one that is not revoked, suspended, subject to probation,
lapsed, inactive, retired or expired.
Notes
Publications: Publications referenced are available from the agency.
Statutory/Other Authority: ORS 670.310
Statutes/Other Implemented: ORS 670.310
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