4701-11-06 Retention of client records.

 

 

 

4701-11-06                  Retention of client records.

 

 

 

(A)   If a client makes a written request for records from a registered firm, or Ohio permit holder if the Ohio permit holder's firm is not registered with the board, the registered firm or Ohio permit holder shall comply with the request within thirty days after receipt of the request. The thirty-day deadline may be extended by the board if the registered firm or Ohio permit holder requests an extension of time in accordance with paragraph (H) of this rule.

 

(B)    A client's records are any accounting or other records belonging to the client that were provided to the registered firm or Ohio permit holder by or on behalf of the client, as well as records defined in paragraph (E) of this rule as client records.

 

(C)    The workpapers of the registered firm or Ohio permit holder include, but are not limited to, the following:

 

(1)    The registered firm's or Ohio permit holder's notes or memos regarding the engagement;

 

(2)     Records kept by the registered firm or Ohio permit holder of procedures applied, tests performed, information obtained, and pertinent conclusions reached in the engagement;

 

(3)   Analyses and schedules prepared by the client at the registered firm's or Ohio permit holder's request, and;

 

(4)    Audit programs, audit analyses and memoranda, letters of confirmation and representation, abstracts of company documents, and schedules or commentaries either prepared or obtained by the registered firm or Ohio permit holder.

 

(D)    Workpapers may also be in the form of data stored on discs, tapes, films, or any media other than paper. Workpapers are considered to be the registered firm's or Ohio permit holder's property. In the event of a dispute between the registered firm or Ohio permit holder and the client concerning records, the board will determine whether or not a document may be classified either as a registered firm's or Ohio permit holder's workpaper, or as a client record.

 

(E)   Workpapers may contain information that is not reflected in the client's books and records, with the result that the client's financial information is incomplete. These records are defined as client records, and may include but are not limited to:

 

(1)  Adjusting, closing, combining or consolidating journal entries;

 

 

(2)        Depreciation    and    amortization    schedules,    including     tax    carryforward information; and

(3)    Information normally contained in books of original entry, as well as general ledgers and subsidiary ledgers.

(F)     If the registered firm or Ohio permit holder translates client information onto computer files for use with the registered firm's or Ohio permit holder's software, then the registered firm or Ohio permit holder must return either a printout or copy of the computer files to the client that contain the information described in paragraph (E) of this rule. TheIf the registered firm or Ohio permit holder has not been paid for professional services rendered, then the registered firm or  Ohio permit holder is under no obligation to convert information that is not in an electronic format to electronic form, or provide the client with electronic files or a copy of any software. If the client has paid the registered firm or Ohio permit holder for professional services rendered, then the registered firm or Ohio permit holder must provide a copy of all relevant electronic data files to the client.

(G)   If the registered firm or Ohio permit holder has provided the information described in paragraph (B) or (E) of this rule to the client, then the registered firm or Ohio permit holder need not comply with further client requests for the same information.

(H) In the event of a dispute between the client and a registered firm or Ohio permit holder over the return of records described in paragraph (E) of this rule, the Ohio permit holder may request an extension of the deadline specified in paragraph (A) of this rule in order to mediate the dispute. The request must be filed within thirty days of the date the records retention complaint is filed with the board. The mediation must be conducted before a mediator mutually agreed upon and selected by the parties, and must be completed within sixty days of the date the complaint is filed with the board. The mediator may be the executive director of the board or a designee if the parties agree. If either party is dissatisfied with the recommendations of the mediator, that party may request a hearing before the board.

Effective:                                                     08/25/2005

R.C. 119.032 review dates:                         06/07/2005 and 08/25/2010

CERTIFIED ELECTRONICALLY

Certification

08/15/2005

Date

Promulgated Under:                           119.03

Statutory Authority:                           4701.03

Rule Amplifies:                                  4701.03

Prior Effective Dates:                         4/27/92, 4/28/97, 3/29/99, 8/5/99, 10/22/04