32-701
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32-701. Definitions In this chapter, unless the context otherwise requires: 1. "Accredited institution" means any public or private regionally or nationally accredited college or university that is accredited by an organization recognized by the council for higher education accreditation or its successor agency. 2. "Attestation" or "attest function" means the issuance by a registrant of a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party. 3. "Board" means the Arizona state board of accountancy established by section 32-702. 4. "Certified public accountant" means an individual who has been issued a certificate of authority by the board to practice as a certified public accountant, including an individual on inactive status. 5. "Conviction" means a judgment of conviction by any state or federal court of competent jurisdiction in a criminal cause, regardless of whether an appeal is pending or could be taken, and includes any judgment or order based on a plea of no contest. 6. "Disciplinary action" means any other regulatory sanctions imposed by the board in combination with, or as an alternative to, revocation or suspension of a certificate or registration, including the imposition of: (a) An administrative penalty in an amount not to exceed two thousand dollars for each violation of this chapter or rules adopted pursuant to this chapter. (b) Restrictions on the scope of registrants' accounting practice, including, without limitation, restriction of audit or attest function practice, restriction of tax practice or restriction of management advisory practice. (c) Peer review and professional education requirements. (d) A decree of censure. (e) Probation requirements best adapted to protect the public welfare that may include a requirement for restitution payments to accounting services clients or to other persons suffering economic loss resulting from violations of this chapter or rules adopted pursuant to this chapter. (f) Reimbursement of the board's costs of investigations and proceedings initiated under this chapter. 7. "Federal securities laws" means the securities act of 1933, the securities exchange act of 1934, the public utility holding company act of 1935 and the investment company act of 1940, as amended. 8. "Firm" means a business organization that is engaged in the practice of accounting and that is established under the laws of any state or foreign country, including a sole practitioner, partnership, professional corporation, professional limited liability company, limited liability company, limited liability partnership or any other entity recognized by the board that has met the applicable requirements contained in sections 32-731 and 32-732. 9. "Letter of concern" means an advisory letter to notify a registrant that, while the evidence does not warrant disciplinary action, the board believes that the registrant should modify or eliminate certain practices and that continuation of the activities that led to the evidence being submitted to the board may result in board action against the registrant. A letter of concern is not a disciplinary action. 10. "Limited reciprocity privilege" means the permission to practice as a certified public accountant in this state pursuant to section 32-725 for an individual whose principal place of business is outside of this state. 11. "Practice of accounting" means providing any accounting services, including recording and summarizing financial transactions, analyzing and verifying financial information, examining, reviewing and reporting on financial statements, reporting financial results to an employer, clients or other parties and rendering attestation, tax and management advisory services to an employer, clients or other parties. 12. "Principal place of business" means the office designated by the individual or firm as the principal location for the practice of accounting. 13. "Public accountant" means an individual who has been issued a certificate of authority by the board to practice as a public accountant, including an individual on inactive status. 14. "Reciprocity" means the issuance of a certificate by the board to an individual to practice as a certified public accountant in this state as provided by section 32-724. 15. "Related courses" means: (a) Business administration. (b) Statistics. (c) Computer science, information systems or data processing. (d) Economics. (e) Finance. (f) Management. (g) Business law. (h) College algebra or more advanced mathematics. (i) Advanced written communication. (j) Advanced oral communication. (k) Ethics. (l) Other courses closely related to the subject of accounting and satisfactory to the board. 16. "Restricted financial services" means the following services rendered by the holder of a certificate issued by the board: (a) Audits or other engagements performed in accordance with the statements on auditing standards adopted by the American institute of certified public accountants. (b) Reviews of financial statements performed in accordance with the statements on standards for accounting and review services adopted by the American institute of certified public accountants. (c) Attestation engagements performed in accordance with the statements on standards for attestation engagements adopted by the American institute of certified public accountants. (d) The preparation and issuance of audit reports as required by the Sarbanes-Oxley act of 2002 (P.L. 107-204; 116 Stat. 745) or the rules of the securities and exchange commission. |