325.220 Definitions for chapter.
908 words·~4 min read·
/ky/chapter-325/325-220A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in this chapter, unless the context otherwise requires:
(1)"Attest service" means providing the following services:
(a)Any audit or other engagement subject to and to be performed in accordance
with the current versions of the American Institute of Certified Public
Accountants (AICPA) Statements on Auditing Standards (SAS), and
Government Auditing Standards issued by the United States Government
Accountability Office;
(b)Any review of a financial statement subject to and to be performed in
accordance with the current versions of the American Institute of Certified
Public Accountants (AICPA) Statements on Standards for Accounting and
Review Services (SSARS);
(c)Any examination of prospective financial information or other professional
services to be performed in accordance with the current versions of the
American Institute of Certified Public Accountants (AICPA) Statements on
Standards for Attestation Engagements (SSAE);
(d)Any engagement to be performed in accordance with the Public Company
Accounting Oversight Board Auditing Standards; and
(e)Any examination, review, or agreed-upon procedures engagement to be
performed in accordance with the SSAE, other than an examination described
in paragraph
(c)of this subsection;
(2)"Board" means the State Board of Accountancy;
(3)"Firm" means a sole proprietorship, partnership, professional service corporation, or
any other form of business organization that is authorized to operate under the laws
of this Commonwealth, complies with the provisions of this chapter, and is issued a
license to practice by the board or is exempt from having to obtain a license
pursuant to KRS 325.301;
(4)"Firm manager" means a licensee of this state or another state designated by a firm
to be responsible for the firm complying with the firm registration and firm
licensing requirements contained in this chapter and administrative regulations
promulgated thereunder;
(5)"License" means a license as a certified public accountant or a firm issued pursuant
to this chapter;
(6)"Licensee" means a certified public accountant, firm, or public accountant, holding
a license to practice issued under this chapter;
(7)"Peer review" means a practice monitoring process designed to promote quality in
attest and compilation services, and protect the public interest. The process shall
comply with standards that are equivalent to or more stringent than the current
version of the Standards for Performing and Reporting on Peer Reviews issued by
the American Institute of Certified Public Accountants (AICPA);
(8)"Public accountant" means a public accountant issued a license to practice by the
Commonwealth of Kentucky under the Public Accounting Act of 1946 as amended;
(a)"Regulated activities" means the offering to perform or the performance for a
client or potential client by a person or firm holding a license issued under this
chapter of one
(1)or more types of services involving the use of accounting,
attest, or compilation services, including the issuance of reports on financial
statements, or one
(1)or more types of management advisory, financial
advisory, or consulting services, or the preparation of tax returns or the
furnishing of advice on tax matters.
(b)Notwithstanding paragraph
(a)of this subsection, this definition shall not
prohibit anyone who is not a certified public accountant from performing
accounting and bookkeeping services, as well as the preparation of tax returns
or financial statements, for which attestation by the preparer is not required.
The board shall promulgate an administrative regulation defining terms, as
necessary, that are not included in this chapter;
(10)"Report," when used with reference to any attest or compilation service, means an
opinion, report, or other form of language that states or implies assurance as to the
reliability of the attested information on 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 from the language of the report itself. The term "report" includes any
form of language which disclaims an opinion when such form of language is
conventionally understood to imply any positive assurance as to the reliability of the
attested information or compiled financial statements referred to or special
competence on the part of the person or firm issuing such language; and it includes
any other form of language that is conventionally understood to imply such
assurance or such special knowledge or competence;
(11)"Sponsoring organization" means a board-approved professional society or other
organization responsible for facilitating and administering a peer review program
that is equivalent to or more stringent than a program as outlined in the American
Institute of Certified Public Accountants (AICPA)'s current version of the Standards
for Performing and Reporting on Peer Reviews, including provisions that provide
guidance for administering peer reviews;
(12)"State" includes and means any state, territory, or insular possession of the United
States, or the District of Columbia; and
(13)"Substantial equivalency" means a determination by the board or its designee that
the education, examination, and experience requirements in the statutes and
administrative regulations of another state for the licensing of a certified public
accountant are comparable or better than those contained in the Uniform
Accountancy Act issued by the American Institute of Certified Public Accountants
(AICPA) and National Association of State Boards of Accountancy (NASBA), or
that an individual certified public accountant's education, examination, and
experience qualifications are comparable or exceed these national standards.