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Ohio Administrative Code (Last Updated: January 12, 2021) |
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4701 Accountancy Board |
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Chapter4701-13. Registration of Offices, Partnerships, and Corporations |
4701-13-01. Definitions
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The following words and terms, when used in this chapter, shall have the following meanings:
(A) "Acceptance letter" means a letter issued by the peer review sponsoring organization which communicates acceptance of a peer review, and contains the name and address of the firm under review, the period covered by the peer review, the results of the peer review, and the date of acceptance and information related to the acceptance of the review.
(B) "Attest engagement" is defined in rule 4701-9-05 of the Administrative Code.
(C) "Completion letter" means a letter issued by the peer review sponsoring organization which communicates to the firm that all remedial actions specified in a prior acceptance letter have been completed and the peer review is complete.
(D) "Conditional acceptance letter" means an acceptance letter which communicates acceptance of a peer review subject to completion of remedial actions and the date the remedial actions must be completed.
(E) "Engagement" means an agreement that describes the business relationship between a client and a CPA or public accounting firm that defines the scope, terms, and costs of the agreement as performed by the CPA or public accounting firm.
(F) "Letter of response" means a formal letter issued from the peer review firm to the peer review committee, in response to deficiencies communicated in a conditional acceptance letter.
(G) "Peer review" means the study and appraisal, by an independent evaluator, of a public accounting firm's system of quality control to assure it is designed in conformity with professional standards to perform accounting and auditing work ("system review"); or of a sample of a the firm's actual accounting work and procedures ("engagement review").
(H) "Peer review committee" means the peer review acceptance committee of the peer review sponsoring organization or the national peer review committee of the "American Institute of Certified Public Accountants," authorized pursuant to division (G)(1) of section 4701.04 of the Revised Code.
(I) "Peer review firm" or "attest firm" means a business or permit holder registered with the board that performs or offers to perform work on any engagement that will result in the issuance of any report in accordance with professional standards as defined in rule 4701-9-03, 4701-9-04, 4701-9-05, or 4701-9-06 of the Administrative Code, including audits, compilations, and reviews.
(J) "Peer review oversight committee" is defined in paragraph (A)(6) of rule 4701-1-10 of the Administrative Code.
(K) "Peer review program administrator" means any organization authorized by the board to administer all or part of the board's peer review program as specified in division (G) of section 4701.04 of the Revised Code. The "Ohio Society of Certified Public Accountants" is the board's authorized peer review program administrator and agent pursuant to division (G) of section 4701.04 of the Revised Code.
(L) "Peer review report" means a report issued by an independent evaluator which summarizes the nature, objectives, scope, limitations, and procedures performed by a public accounting firm that accepts engagements subject to peer review, and assigns a rating to the firm's reviewed work based on peer review standards set by the "American Institute of Certified Public Accountants."
(M) "Peer review sponsoring organization" means any organization approved by the board that meets the peer review standards specified in rule 4701-13-05 of the Administrative Code.
(N) "Practice of public accounting" is defined in rule 4701-7-04 of the Administrative Code.
(O) "Professional liability insurance" means any of the following:
(1) Commercially available professional liability insurance or a professional liability insurance program;
(2) A deposit in trust or in bank escrow of cash, bank certificates of deposit, or United States treasury obligations;
(3) A bank letter of credit or insurance company bond.
(P) "Public accounting firm" means a business or permit holder registered with the board that performs or offers to perform work on any engagement defined as the practice of public accounting per rule 4701-7-04 of the Administrative Code, and that advertises as performing or offering to perform either public accounting services or regulated services pursuant to sections 4701.12 and 4701.14 of the Revised Code.
(Q) "Regulated services" is defined in rule 4701-7-04 of the Administrative Code.
(R) "Relevant oversight or government organization" means an entity, agency, or body which is responsible for the assessment (review?) and administration of specific functions under its jurisdiction and retains authority over those functions.
(S) "Tax/consulting firm" or "non-attest firm" means a business or permit holder that furnishes advice on tax matters, provides consulting services, personal financial planning services, or other services that do not result in the issuance of any report in accordance with professional standards as defined in rule 4701-9-03, 4701-9-04, 4701-9-05, or 4701-9-06 of the Administrative Code while advertising to the public using the CPA or PA designation.