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Rule Title: DEFINITIONS
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Department: LABOR AND INDUSTRY
Chapter: BOARD OF PUBLIC ACCOUNTANTS
Subchapter: Definitions
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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24.201.301    DEFINITIONS

(1) "AICPA" means the American Institute of Certified Public Accountants.

(2) "Blended learning program" means an educational program incorporating multiple learning formats, different delivery methods, and is synchronous and asynchronous.

(3) "Client" means the person, entity, or enterprise, whether organized for profit or not, which retains a permit holder for the performance of professional services. A client may be an entity served by governmental or nongovernmental agencies performing services similar to public accounting firms.

(4) "Continuing professional education (CPE)" means an integral part of the lifelong learning required to provide competent service to the public. It is the set of activities that enables CPAs to maintain and improve their professional competence.

(5) "CPAES" means NASBA CPA Examination Services.

(6) "Engagement review report" means a peer review where the peer reviewer evaluates and reports on whether engagements submitted for review by the firm are performed and reported on in conformity with applicable professional standards in all material respects.

(7) "Engagement review report rating of 'Fail'" means the engagements submitted for review by the review firm for the peer review year ended were not performed and/or reported on in conformity with applicable professional standards in all material respects.

(8) "Engagement review report rating of 'Pass'" means that nothing came to the reviewer's attention that caused him/her to believe that the engagements submitted for review by the review firm for the peer review year ended were not performed and reported on in conformity with applicable professional standards in all material respects.

(9) "Engagement review report rating of 'Pass with deficiencies'" means except for the deficiencies described in the report, nothing came to the reviewer's attention that caused him/her to believe the engagements submitted for review by the review firm for the peer review year ended were not performed and reported on in conformity with applicable professional standards in all material respects.

(10) "Financial statement" means a presentation of financial data, derived from accounting records and intended to communicate an entity's economic resources or obligations at a point in time, or the changes therein for a period of time. Financial presentations included in tax returns are not financial statements for purposes of this definition. Financial statements include, but are not limited to, the following:

(a) balance sheet;

(b) statement of income;

(c) statement of retained earnings;

(d) statement of changes in owners' equity;

(e) financial forecasts, projections, and similar presentations;

(f) statement of assets and liabilities (with or without owners' equity accounts);

(g) statement of revenue and expenses;

(h) summary of operations;

(i) statement of operations by product lines;

(j) statement of cash receipts and disbursements; and

(k) statement of cash flows.

(11) "Group program" means any live or group Internet-based program.

(12) "Hour" of instruction is equal to 50 minutes of instructional time. One-half continuing education credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity.

(13) "IQAB" means the International Qualifications Appraisal Board.

(14) "MRA" means Mutual Recognition Agreement.

(15) "Nano-learning program" means a tutorial program designed to permit a participant to learn a given subject in a ten-minute timeframe through the use of electronic media (including technology applications and processes and computer-based or web-based technology) and without interaction with a real-time instructor. A nano-learning program is typically focused on a single learning objective and is not paper-based. A nano-learning program is not a group program. Nano-learning is not a substitute for comprehensive programs addressing complex issues.

(16) "NASBA" means the National Association of State Boards of Accountancy.

(17) "PCAOB" means the Public Company Accounting Oversight Board that conducts firm inspections of certified public accounting firms' SEC issuer practices and other engagements subject to its inspection process.

(18) "Peer review" means a board-approved study, appraisal, or review of one or more aspects of the attest or compilation work of a permit holder of a registered firm in the practice of public accounting, by a person or persons who hold licenses in this or another jurisdiction, and who are not affiliated with the person or firm being reviewed.

(19) "Peer review programs" means the sponsoring organization's entire peer review process, including, but not limited to, the standards for administering, performing, and reporting on peer reviews, oversight procedures, training, and related guidance materials.

(20) "Peer review reports" means reports issued by the peer reviewer/reviewing firm in accordance with the peer review standards.

(21) "Peer review standards" means the board-approved professional standards for administering, performing, and reporting on peer reviews.

(22) "Peer reviewer/reviewing firm" means a certified public accountant/accounting firm responsible for conducting the peer review holding a valid and active license to practice public accounting in good standing by this state or some other state and meets the peer reviewer qualifications to perform peer reviews established in the board-approved peer review standards.

(23) "Practice privilege" means that privilege extended pursuant to 37-50-325, MCA, to a qualified individual whose principal place of business is not in this state and who holds a valid license as a certified public accountant.

(24) "Practice privilege holder" means an individual who avails himself or herself of the practice privilege.

(25) "Professional services" means any service performed or offered to be performed by a permit holder for a client in the course of the practice of public accountancy.

(26) "Program sponsor" means the individual or organization responsible for issuing the certificate of completion, and maintaining the CPE completion documentation.

(27) "Report" (when used with reference to financial statements) means an opinion, report, or other form of language which states or implies assurance as to the reliability of any financial statements (examples include: audits, reviews, and compilations) and which:

(a) 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;

(i) 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 the firm is an accountant or auditor, or from the language of the report itself.

(b) 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 financial statements referred to and/or special competence on the part of the person or firm issuing such language; and

(c) includes any other form of language that is conventionally understood to imply such assurance and/or such special knowledge or competence.

(28) "Report acceptance body (RAB)" means the sponsoring organization's committee responsible for, but not limited to, the acceptance of peer review documents.

(29) "SEC" means the Securities and Exchange Commission.

(30) "Self-study program" means an educational program completed individually without the assistance or interaction of a real-time instructor.

(31) "SSARS" means the statements on standards for accounting and review services.

(32) "Sponsoring organization" means a board-approved professional society or other organization responsible for the facilitation and administration of peer reviews through the use of its peer review program and peer review standards.

(33) "System review" means a peer review intended to provide the peer reviewer with a reasonable basis for expressing an opinion on whether, during the year under review:

(a) the reviewed firm's system of quality control for its accounting and auditing practice has been designed in accordance with quality control standards; and

(b) the reviewed firm's quality control policies and procedures were being complied with to provide the practice unit with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.

(34) "System review report with a rating of 'Fail'" means that due to the significant deficiencies identified in the report, the system of quality control for the accounting and auditing practice of the reviewed firm, in effect for the year most recently ended, has not been suitably designed or complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.

(35) "System review report with a rating of 'Pass'" means the system of quality control for the accounting and auditing practice of the reviewed firm, in effect for the year most recently ended, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.

(36) "System review report with a rating of 'Pass with deficiencies'" means that except for the deficiencies described in the report, the system of quality control for the accounting and auditing practice of the reviewed firm, in effect for the year most recently ended, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.

(37) "Technical committee" means a committee of an international, national, or state professional association, council, or member organization, or a governmental entity that supports professional services or industries that require unique and specific knowledge in accounting or tax compliance and serves as a resource to identify issues regarding the practice of accountancy and develops technical or policy recommendations on those issues.

(38) "Technical fields of study" means technical subjects that contribute to the competence of a CPA in the profession of accountancy and that directly relate to the CPA's field of business.

(39) "Technical reviewer" means a subject matter expert other than the course developer who reviews a group, self-study, nano-learning, or blended learning program to ensure the program is technically accurate, current, and addresses the stated learning objectives.

 

History: 37-1-319, 37-50-203, MCA; IMP, 37-1-306, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668; AMD, 2009 MAR p. 9, Eff. 1/16/09; AMD, 2010 MAR p. 2574, Eff. 10/29/10; AMD, 2013 MAR p. 1527, Eff. 8/23/13; AMD, 2014 MAR p. 2849, Eff. 11/21/14; AMD, 2016 MAR p. 1016, Eff. 6/4/16; AMD, 2017 MAR p. 2283, Eff. 12/9/17; AMD, 2021 MAR p. 1776, Eff. 12/11/21.


 

 
MAR Notices Effective From Effective To History Notes
24-201-54 12/11/2021 Current History: 37-1-319, 37-50-203, MCA; IMP, 37-1-306, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668; AMD, 2009 MAR p. 9, Eff. 1/16/09; AMD, 2010 MAR p. 2574, Eff. 10/29/10; AMD, 2013 MAR p. 1527, Eff. 8/23/13; AMD, 2014 MAR p. 2849, Eff. 11/21/14; AMD, 2016 MAR p. 1016, Eff. 6/4/16; AMD, 2017 MAR p. 2283, Eff. 12/9/17; AMD, 2021 MAR p. 1776, Eff. 12/11/21.
24-201-50 12/9/2017 12/11/2021 History: 37-1-319, 37-50-203, MCA; IMP, 37-1-306, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668; AMD, 2009 MAR p. 9, Eff. 1/16/09; AMD, 2010 MAR p. 2574, Eff. 10/29/10; AMD, 2013 MAR p. 1527, Eff. 8/23/13; AMD, 2014 MAR p. 2849, Eff. 11/21/14; AMD, 2016 MAR p. 1016, Eff. 6/4/16; AMD, 2017 MAR p. 2283, Eff. 12/9/17.
24-201-49 6/4/2016 12/9/2017 History: 37-50-203, MCA; IMP, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668; AMD, 2009 MAR p. 9, Eff. 1/16/09; AMD, 2010 MAR p. 2574, Eff. 10/29/10; AMD, 2013 MAR p. 1527, Eff. 8/23/13; AMD, 2014 MAR p. 2849, Eff. 11/21/14; AMD, 2016 MAR p. 1016, Eff. 6/4/16.
24-201-47 11/21/2014 6/4/2016 History: 37-50-203, MCA; IMP, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668; AMD, 2009 MAR p. 9, Eff. 1/16/09; AMD, 2010 MAR p. 2574, Eff. 10/29/10; AMD, 2013 MAR p. 1527, Eff. 8/23/13; AMD, 2014 MAR p. 2849, Eff. 11/21/14.
24-201-46 8/23/2013 11/21/2014 History: 37-50-203, MCA; IMP, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668; AMD, 2009 MAR p. 9, Eff. 1/16/09; AMD, 2010 MAR p. 2574, Eff. 10/29/10; AMD, 2013 MAR p. 1527, Eff. 8/23/13.
24-201-44 10/29/2010 8/23/2013 History: 37-50-203, MCA; IMP, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668; AMD, 2009 MAR p. 9, Eff. 1/16/09; AMD, 2010 MAR p. 2574, Eff. 10/29/10.
24-201-43 1/16/2009 10/29/2010 History: 37-50-203, MCA; IMP, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668; AMD, 2009 MAR p. 9, Eff. 1/16/09.
3/30/1990 1/16/2009 History: 37-50-203, MCA; IMP, 37-50-203, MCA; NEW, 1984 MAR p. 961, Eff. 6/29/84; AMD, 1990 MAR p. 584, Eff. 3/30/90; TRANS, from Commerce, 2005 MAR p. 2668.
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