TITLE 5
Businesses and Professions
CHAPTER 5-3.1
Public Accountancy
SECTION 5-3.1-3
§ 5-3.1-3 Definitions.
As used in this chapter, unless the context requires otherwise, the following
terms are construed as follows:
(1) "Attest" means providing the following financial
statement services:
(i) Any audit or other engagement to be performed in
accordance with the Statements on Auditing Standards (SAS) as adopted by the
American Institute of Certified Public Accountants;
(ii) Any review of a financial statement to be performed in
accordance with the Statement on Standards for Accounting and Review Services
(SSARS) as adopted by the American Institute of Certified Public Accountants;
(iii) Any examination of prospective financial information to
be performed in accordance with the Statements on Standards for Attestation
Engagements (SSAE) as adopted by the American Institute of Certified Public
Accountants;
(iv) Any services considered attest by the American Institute
of Certified Public Accountants;
(v) Any services that will provide assurance on financial
information and will be performed in accordance with appropriate professional
standards;
(vi) The statements on standards specified in this definition
shall be adopted by reference by the board pursuant to rulemaking and shall be
those standards developed by the American Institute of Certified Public
Accountants.
(2) "Authority" means an authority to practice as a public
accountant in this state granted by the public accountants advisory commission
under former § 5-3-6, (P.L. 1962, chapter 228, Section 1, as amended by
P.L. 1970, chapter 272, Section 1).
(3) "Board" means the board of accountancy, a public
authority created by § 5-3.1-4.
(4) "Certificate" means a certificate as certified public
accountant issued under this chapter or corresponding provisions of prior law,
or a corresponding certificate as certified public accountant issued after
examination under the law of any other state.
(5) "Certified public accountant" or "CPA" means a person
holding a certificate issued under this chapter or corresponding provisions of
prior law or under the accountancy act or similar law of any other state.
(6) "Compilation" means providing a service to be performed
in accordance with the Statement on Standards for Accounting and Review
Services (SSARS) as adopted by the American Institute of Certified Public
Accountants that is presenting in the form of financial statements, information
that is the representation of management without undertaking to express any
assurance on the statements.
(7) "Entity" includes a general partnership, limited
liability company, limited liability partnership, a corporation, a sole
proprietor, a trust and joint venture.
(8) "Good moral character" for purposes of this section,
means lack of a history of dishonest or felonious acts.
(9) "Licensee" means the holder of a certificate, authority
or permit issued under this chapter or under the prior laws of this state.
(10) "Majority" refers to more than fifty percent (50%)
ownership in terms of financial interests and voting rights.
(11) "Peer review" means a study, appraisal, or review of one
or more aspects of the professional work of a practice unit engaged in the
practice of public accountancy in this state, by a licensee or licensees who
are not affiliated with the practice unit being reviewed.
(12) "Permit" means a permit to practice public accountancy
issued under § 5-3.1-7, 5-3.1-8, or 5-3.1-9, or under corresponding
provisions of prior law, or under corresponding provisions of the law of any
other state.
(13) "Practice of (or practicing) public accounting or
accountancy" means the performance of or the offering to perform, in an
independent posture, for a client or potential client, one or more kinds of
services involving the use of accounting or auditing skills, in connection with
the issuance of reports on financial statements.
(14) "Practice unit" means a sole proprietorship,
corporation, partnership or other entity engaged in the practice of public
accounting in this state. For the purpose of this chapter, the office of the
Auditor General is considered a practice unit.
(15) "Principal residence" means the state in which a person
has the right to register to vote for, or the right to vote in, general
elections and in which he or she qualifies to file a resident state income tax
return.
(16) "Public accountant" or "PA" means a person holding an
authority as a public accountant issued under the prior laws of this state.
(17) "Report" means an opinion, report, or other form of
language that states or implies assurance as to the reliability of financial
statements and that also includes or is accompanied by a statement or
implication that the person or practice unit issuing the financial statements
has special knowledge or competence in accounting or auditing. 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 issuer is an accountant or
auditor, or from the language of the report itself. The term "report" includes
any form of language which disclaims an opinion when that language is
conventionally understood to imply any positive assurance as to the reliability
of the financial statements referred to and/or any special competence on the
part of the person or practice unit issuing that language; and it also includes
any other form of language that is conventionally understood to imply that
assurance and/or special knowledge or competence.
(18) "State" means the states of the United States, the
District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. The term
"this state" means the state of Rhode Island.
(19) "Substantial equivalency" means a determination by the
board of accountancy that the education, examination and experience
requirements contained in the statutes and administrative rules of another
state or jurisdiction are comparable to or exceed the education, examination
and experience requirements included in this chapter or that an individual
CPA's education, examination and experience qualifications are comparable to or
exceed the education, examination and experience requirements contained in this
chapter. In ascertaining substantial equivalency as used in this chapter the
board shall take into account the qualifications without regard to the sequence
in which experience, education or examination requirements were attained.
History of Section.
(P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1; P.L. 2007, ch.
225, § 1; P.L. 2007, ch. 238, § 1; P.L. 2011, ch. 17, § 1; P.L.
2011, ch. 23, § 1.)