§ 5-3.1-3 - Definitions.
SECTION 5-3.1-3
§ 5-3.1-3 Definitions. – As used in this chapter, unless the context requires otherwise, the followingterms are construed as follows:
(1) "Attest" means providing the following financialstatement services:
(i) Any audit or other engagement to be performed inaccordance with the Statements on Auditing Standards (SAS) as adopted by theAmerican Institute of Certified Public Accountants;
(ii) Any review of a financial statement to be performed inaccordance 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 tobe performed in accordance with the Statements on Standards for AttestationEngagements (SSAE) as adopted by the American Institute of Certified PublicAccountants;
(iv) Any services considered attest by the American Instituteof Certified Public Accountants;
(v) Any services that will provide assurance on financialinformation and will be performed in accordance with appropriate professionalstandards;
(vi) The statements on standards specified in this definitionshall be adopted by reference by the board pursuant to rulemaking and shall bethose standards developed by the American Institute of Certified PublicAccountants.
(2) "Authority" means an authority to practice as a publicaccountant in this state granted by the public accountants advisory commissionunder former § 5-3-6, (P.L. 1962, chapter 228, Section 1, as amended byP.L. 1970, chapter 272, Section 1).
(3) "Board" means the board of accountancy, a publicauthority created by § 5-3.1-4.
(4) "Certificate" means a certificate as certified publicaccountant issued under this chapter or corresponding provisions of prior law,or a corresponding certificate as certified public accountant issued afterexamination under the law of any other state.
(5) "Certified public accountant" or "CPA" means a personholding a certificate issued under this chapter or corresponding provisions ofprior law or under the accountancy act or similar law of any other state.
(6) "Compilation" means providing a service to be performedin accordance with the Statement on Standards for Accounting and ReviewServices (SSARS) as adopted by the American Institute of Certified PublicAccountants that is presenting in the form of financial statements, informationthat is the representation of management without undertaking to express anyassurance on the statements.
(7) "Entity" includes a general partnership, limitedliability company, limited liability partnership, a corporation, a soleproprietor, 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, authorityor permit issued under this chapter or under the prior laws of this state.
(10) "Majority" refers to a sixty-seven percent (67%)ownership in terms of financial interests and voting rights.
(11) "Peer review" means a study, appraisal, or review of oneor more aspects of the professional work of a practice unit engaged in thepractice of public accountancy in this state, by a licensee or licensees whoare not affiliated with the practice unit being reviewed.
(12) "Permit" means a permit to practice public accountancyissued under § 5-3.1-7, 5-3.1-8, or 5-3.1-9, or under correspondingprovisions of prior law, or under corresponding provisions of the law of anyother state.
(13) "Practice of (or practicing) public accounting oraccountancy" means the performance of or the offering to perform, in anindependent posture, for a client or potential client, one or more kinds ofservices involving the use of accounting or auditing skills, in connection withthe issuance of reports on financial statements.
(14) "Practice unit" means a sole proprietorship,corporation, partnership or other entity engaged in the practice of publicaccounting in this state. For the purpose of this chapter, the office of theAuditor General is considered a practice unit.
(15) "Principal residence" means the state in which a personhas the right to register to vote for, or the right to vote in, generalelections and in which he or she qualifies to file a resident state income taxreturn.
(16) "Public accountant" or "PA" means a person holding anauthority as a public accountant issued under the prior laws of this state.
(17) "Report" means an opinion, report, or other form oflanguage that states or implies assurance as to the reliability of financialstatements and that also includes or is accompanied by a statement orimplication that the person or practice unit issuing the financial statementshas special knowledge or competence in accounting or auditing. A statement orimplication of special knowledge or competence may arise from use by the issuerof the report of names or titles indicating that the issuer is an accountant orauditor, or from the language of the report itself. The term "report" includesany form of language which disclaims an opinion when that language isconventionally understood to imply any positive assurance as to the reliabilityof the financial statements referred to and/or any special competence on thepart of the person or practice unit issuing that language; and it also includesany other form of language that is conventionally understood to imply thatassurance and/or special knowledge or competence.
(18) "State" means the states of the United States, theDistrict 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 theboard of accountancy that the education, examination and experiencerequirements contained in the statutes and administrative rules of anotherstate or jurisdiction are comparable to or exceed the education, examinationand experience requirements included in this chapter or that an individualCPA's education, examination and experience qualifications are comparable to orexceed the education, examination and experience requirements contained in thischapter. In ascertaining substantial equivalency as used in this chapter theboard shall take into account the qualifications without regard to the sequencein which experience, education or examination requirements were attained.