2006 Code of Virginia § 54.1-4400 - Definitions

54.1-4400. Definitions.

As used in this chapter, unless the context clearly indicates otherwise:

"Assurance" means any act or action, whether written or oral, expressing anopinion or conclusion about the reliability of a financial statement or aboutits conformity with any financial accounting principles or standards.

"Attestation engagement" means performing an engagement in accordance withattestation standards promulgated by the American Institute of CertifiedPublic Accountants and issuing a written communication that expresses aconclusion about the reliability of a written assertion that is theresponsibility of another party.

"Board" means the Board of Accountancy continued by the provisions of thischapter and established by its predecessor under prior law.

"Commission" means compensation generated from the purchase or sale of aproduct or service and which would not be generated but for the purchase orsale of the product or service.

"Compilation" or "Compile," when used by a CPA, refers to a firm(including sole proprietors) presenting in the form of financial statementsinformation that is the representation of management (owners) withoutundertaking to express any assurance on the statements and performing suchservice in accordance with the Statements on Standards for Accounting andReview Services issued by the American Institute of Certified PublicAccountants.

"Contingent fee" means a fee established for the performance of a servicepursuant to an arrangement in which no fee will be charged unless a specifiedfinding or result is obtained, or in which the amount of the fee is dependentupon the finding or result obtained. Fees shall not be considered contingentif fixed by courts or other public authorities, or in tax matters ifdetermined based on the results of judicial proceedings or the findings ofgovernmental agencies. A CPA certificate holder's fees may vary depending onthe complexity of services rendered, and such variation shall not beconsidered a contingent fee.

"CPA certificate" means a certificate as a certified public accountant(CPA) issued by the Board pursuant to this chapter or correspondingprovisions of prior law, which shall function as a license, if currentlyvalid, or a certificate as a certified public accountant issued after meetingthe CPA exam and other requirements under the laws of any other state.

"CPA exam" means the National Uniform CPA exam approved and administered bythe Board of Accountancy to candidates for a CPA certificate.

"CPA title" means using "CPA," "Certified Public Accountant," "publicaccountant," or "CPA firm" in any form or manner that communicates(including but not limited to any title, phrase, acronym, abbreviation,business cards, CPA wall certificate, letterhead, reports, tax returns, sign,card, or any other document or device) that the individual or firm holds acurrently valid CPA certificate or permit.

"Director" means the Executive Director of the Board of Accountancy.

"Financial statement" means a written or other form of presentation,including accompanying notes, which presents, in whole or in part, historicalor prospective financial position, results of operations or changes infinancial position of any person, corporation, partnership or other entity.

"Firm" means a sole proprietorship, partnership, corporation, limitedliability company, limited liability partnership, or any other form oforganization permitted by law.

"License" means a CPA certificate or permit.

"Licensee" means a holder of a CPA certificate or permit.

"Non-CPA owner" means an individual who does not hold a license, providesprofessional services to clients, and holds an ownership interest in a CPAfirm.

"Peer review" means a study, appraisal, or review, by a CPA certificateholder or CPA firm holding a currently valid license that is not affiliatedwith the firm being reviewed, of one or more aspects of the professional workof a firm that engages in the practice of public accounting or compilesfinancial statements in accordance with the American Institute of CertifiedPublic Accountants' Statements on Standards for Accounting and ReviewServices (SSARS).

"Permit" means a permit issued to a firm that has met all of therequirements for registration under this chapter. Issuance of a permit shallconstitute licensure as defined in 54.1-300.

"Practice of public accountancy" or "public accounting" means the givingof an assurance, in a report or otherwise, whether expressly or implicitly,unless this assurance is given by an employee to his employer.

"Registration" or "registered" means the process through which a firmobtains a permit from the Board.

"Report" or "reports," when used with reference to financial statements,means an opinion or disclaimer of opinion or other form of language orrepresentation that states or implies any form of assurance or denial ofassurance.

"State" means any state of the United States, the District of Columbia,Puerto Rico, the U.S. Virgin Islands and Guam.

"Statements on Standards for Accounting and Review Services" or "SSARS"means Statements on Standards for Accounting and Review Services establishedby the American Institute of Certified Public Accountants.

"Substantial equivalency" means a determination by the Board or itsdesignee that the education, CPA exam and experience requirements containedin the statutes and administrative rules of another jurisdiction arecomparable to, or exceed, the education, CPA exam and experience requirementscontained in this chapter, or that an individual CPA from anotherjurisdiction has met education, CPA exam and experience requirements that arecomparable to, or exceed, the education, CPA exam, and experiencerequirements contained in this chapter.

(2001, c. 832; 2003, c. 291; 2004, c. 602.)