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§5-3.1-3  Definitions. –


Published: 2015

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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.)