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BOARD OF ACCOUNTANCY
DEFINITIONS AND SAFE HARBOR LANGUAGE
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
(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
(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
(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.
(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 representation
of the owner or management of the company for which the statement is presented;
(b) Does not include assurances
by the person that the representations in the financial statement conform to generally
accepted accounting principles.
(15) 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.
(16) Enterprise means any person
or entity, whether organized for profit or not, for which a licensee provides public
(17) 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.
(18) Fees include commissions,
contingent fees and referral fees.
(19) 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 comprehensive basis of accounting 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.
(20) 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.
(21) First time candidate means
a candidate for the CPA exam who is sitting for the exam for the first time in Oregon.
(22) 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
(23) 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
(24) 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 certificate or
license in good standing issued under the authority of ORS 673 as a certified public
accountant or a public accountant.
(25) Inactive means a license
status granted by the Board to a licensee:
(a) Whose license is not suspended
(b) Who is not:
(A) Performing or offering to
perform, for a client, services involving the use of accounting or auditing skills,
including but not limited to issuance of reports on financial statements, management
advisory, financial advisory or consulting services, preparation of tax returns
or the furnishing of advice on tax matters; and
(B) Practicing public accountancy
in a business organization that is required to be registered in Oregon with the
Board under ORS 673.160; or
(c) A sole practitioner.
(d) Licensees who are granted
inactive status shall not use the CPA or PA designation unless the word “inactive”
is used in conjunction with the designation, such as “CPA Inactive”
and is listed in the same size font as the designation.
(26) In good standing means
the status of a holder of a license or registration issued by any jurisdiction,that
is not suspended, revoked, expired, resigned, retired or lapsed.
(27) Jurisdiction means the
licensing authority for the practice of public accountancy in any state, U.S. Territory
or foreign country.
(28) Lapsed means a license
status that is not renewed within 60-days of the close of a license period.
(a) A person in lapsed status
(A) Practice public accounting
in a business organization required to be registered with the Board under ORS 673.160;
(B) Practice as a sole practitioner;
(C) Perform or offer to perform
for a client services involving the use of accounting or auditing skills, including
but not limited to issuance of reports on financial statements, management advisory,
financial advisory or consulting services, preparation of tax returns or the furnishing
of advice on tax matters.
(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 status only prior to becoming expired.
(29) 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.
(30) Licensee means the holder
of a license as defined in these rules.
(31) Material participation
means participation that is regular, continuous and substantial.
(32) Manager means a manager
of a limited liability company.
(33) Member means a member of
a limited liability company.
(34) NASBA means National Association
of State Boards of Accountancy.
(35) 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.
(36) PA or Public Accountant
means a person who is the holder of a license issued under ORS 673.100.
(37) 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.
(38) Permit means a license
to practice public accountancy issued under ORS 673.150.
(39) 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.
(40) Principal Place of Business
means the office location designated by a person for purposes of substantial equivalency
(41) Professional means arising
out of or related to the specialized knowledge or skills associated with certified
public accountants and public accountants.
(42) 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.
(43) 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.
(44) 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.
(45) Registration means the
authority issued under ORS 673.160 to a business organization to practice public
accountancy in this state.
(46) 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 the compiled financial statements and that also includes
or is accompanied by any statement or implication that the person or firm issuing
the report has special knowledge or competence in public accountancy. 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 issuer is a public accountancy
professional or organization 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 representation of management (owners)."
(47) 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
(A) A licensee in retired status
may not perform any attest services nor sign any tax returns as a preparer.
(B) A licensee in retired status
may not perform public accounting services for direct or indirect compensation.
(C) A licensee in retired status
may sign any documents related to non-compensated services as a “CPA Retired”
or “PA Retired”. The word “Retired” must be in the same
size font as the designation.
(c) A licensee in retired status,
may be restored to active status at the Boards discretion of showing good cause.
(48) 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.
(49) 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
(50) Standards for Accounting
and Review Services means the Statements on Standards for Accounting and Review
Services published by the AICPA.
(51) Standards for board approved
peer review programs means the Standards for Performing and Reporting on Peer Reviews
published by the AICPA.
(52) Statements on Standards
for Attestation Engagements means the statements by that name issued by the AICPA.
(53) State means any state,
territory or insular possession of the United States, and the District of Columbia.
(54) Substantial equivalency
(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 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 has the qualifications
specified in paragraph (a) of this subsection and holds a valid license as a certified
public accountant from another state that does not require an individual to have
the qualifications specified in paragraph (1) of this subsection as a condition
of licensure as a certified public accountant.
(55) 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.
(56)(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.
(57) 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
[Publications: Publications referenced
are available from the agency.]
Stat. Auth.: ORS 670.310
Stats. Implemented: ORS 670.310
Hist.: 1AB 2-1982, f. &
ef. 10-15-86 AB 1-1989, f. & cert. ef. 1-25-89; AB 2-1990, f. & cert ef.
4-9-90; AB 1-1992, f. & cert. ef. 2-18-92; AB 1-1993, f. 1-14-93, cert. ef.
1-15-93; AB 6-1993(Temp), f. 11-2-93, cert. ef. 11-4-93; AB 1-1994, f. & cert.
ef. 1-21-94; AB 4-1994, f. & cert. ef. 9-27-94; AB 5-1994, f. & cert. ef.
11-10-94; AB 2-1995, f. & cert. ef. 3-22-95; AB 3-1995, f. & cert. ef. 5-19-95;
AB 4-1995, f. & cert. ef. 8-8-95; AB 1-1996, f. & cert. ef. 1-29-96; AB
2-1996, f. & cert. ef. 9-25-96; AB 2-1997, f. & cert. ef. 3-10-97; BOA 1-1998,
f. & cert. ef. 1-26-98; BOA 6-1998, f. & cert. ef. 7-29-98; BOA 6-1999,
f. 12-21-99, cert. ef. 1-1-00; BOA 3-2001, f. 12-28-01, cert. ef. 1-1-02; BOA 2-2002,
f. 12-27-02, cert. ef. 1-1-03; BOA 3-2003, f. 12-23-03 cert. ef. 1-1-04; BOA 3-2005,
f. 2-24-05 cert. ef. 3-1-05; BOA 6-2005, f. 11-22-05, cert. ef. 1-1-06; BOA 5-2006,
f. 12-22-06, cert. ef. 1-1-07; BOA 2-2009, f. 12-15-09, cert. ef. 1-1-10; BOA 2-2010,
f. 12-15-10, cert. ef. 1-1-11; BOA 2-2011, f. 12-28-11, cert. ef. 1-1-12; BOA 2-2014,
f. 12-15-14, cert. ef. 1-8-15; BOA 1-2015, f. 9-30-15, cert. ef. 10-1-15
Financial Statement Preparation
Preparation of financial statements or
reports (as defined herein) is restricted to CPAs and PAs, unless prepared in accordance
with ORS 673.010(19)(c).
Stat. Auth.: ORS 670.310 & OL 1999,
Stats. Implemented: OL 1999,
Hist.: BOA 6-1998, f. &
cert. ef. 7-29-98; BOA 4-1999, f. & cert. ef. 7-23-99; BOA 6-1999, f. 12-21-99,
cert. ef. 1-1-00; BOA 3-2001, f. 12-28-01, cert. ef. 1-1-02; BOA 1-2015, f. 9-30-15,
cert. ef. 10-1-15
The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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