Code of Colorado Regulations
700 - Department of Regulatory Agencies
705 - Division of Professions and Occupations - Board of Accountancy
3 CCR 705-1 - ACCOUNTANCY RULES AND REGULATIONS
Section 3 CCR 705-1.4 - BOARD ORGANIZATION AND ADMINISTRATION
Current through Register Vol. 47, No. 17, September 10, 2024
This Rule is promulgated pursuant to sections 12-20-204 and 12-100-105(1)(b), C.R.S.
A. ACRONYMS
B. ABBREVIATIONS AND DEFINITIONS
Except as otherwise provided, words and phrases capitalized in these Rules are defined in this Rule 1.4 . In addition to the definitions found in section 12-100-103, C.R.S., the following apply:
Title 12, Article 100 of the Colorado Revised Statutes (sections 12-100-101 through 12-100-130, C.R.S.)
The status of a licensee's certificate, license, or registration, or other authority allowing the licensee to assume or use the CPA designation and to offer or perform any service for which an active certificate of CPA or active or valid registration is required pursuant to sections 12-100-112(3) and 12-100-116(1), C.R.S.
Pursuant to section 12-100-108(1)(b), C.R.S., the professional ethics course and examination means Professional Ethics: The American Institute of Certified Public Accountants Comprehensive Course (for Licensure) or a subsequent course of study concerning the subject of professional ethics and the related examination prepared and administered by the AICPA.
The Code of Professional Conduct issued by the AICPA in the "AICPA Professional Standards" incorporated herein by reference in Rule 1.4(C).
The AICPA Professional Standards issued by the AICPA and incorporated herein by reference in Rule 1.4(C).
An applicant is an individual who submits an application for an initial, renewal, reinstated, reactivated, retired, or inactive certificate.
A degree conferred by a college or university that demonstrates the recipient has obtained not less than 120 credit hours of higher education.
An individual who submits an application to sit for the examination.
A certificate of Certified Public Accountant.
An individual granted a Colorado certificate pursuant to the requirements in Article 100 of Title 12, C.R.S.
An individual or entity that agrees with a licensee to receive any professional service.
Continuing professional education as required and described in section 12-100-115, C.R.S., and Rule 1.10 of these Rules.
A two-year period from January 1 of an even-numbered year through December 31 of an odd-numbered year during which the certificate holder must complete CPE.
CPE covering sections 12-100-101 through 130 and 13-90-107(1)(f), C.R.S., and the Rules and Policies of the Board as provided in Rule 1.10(H).
CPE concerning professional ethical behavior in regulatory ethics or behavioral ethics as defined by the fields of study.
The Uniform CPA Examination.
The status of a certificate holder's certificate or firm's registration following a failure to renew the certificate or registration by the expiration date.
The NASBA CPE Fields of Study, incorporated herein by reference in Rule 1.4(C).
Statements and related disclosures that purport to show an actual or anticipated financial position that relates to a point in time, or results of operations, cash flow, or changes in financial position that relate to a period of time, on the basis of U.S. GAAP or another comprehensive basis of accounting. The term includes specific elements, accounts, or items of such statements, but does not include incidental financial data included in management advisory services reports to support recommendations to a client, nor does it include tax returns and supporting schedules.
A business entity composed of one or more CPAs engaged in the practice of public accounting as a domestic or foreign partnership, professional corporation, or limited liability company; "partnership" means any form of partnership, including a registered limited partnership, limited liability partnership, and limited liability limited partnership.
Any activity by an individual or entity that informs or implies or tends to indicate to others an active/valid status as a CPA or Firm. This includes, but is not limited to, any oral or written representation, such as business cards or letterhead, resumes, biographies, the display of a certificate evidencing a CPA designation, or the listing as a CPA or Firm in directories or on the internet. "Activity" includes any continuing representation caused or used by an individual or entity, including but not limited to, any oral or written representation, such as signage, directories, or the Internet.
The status of a certificate upon transfer of that certificate to the inactive list.
A natural person.
The Joint AICPA/NASBA Statement on Standards for Continuing Professional Education (CPE) Programs jointly issued by the AICPA and NASBA.
An individual or firm authorized to hold out and offer and provide services as a CPA(s) under the Act as a certificate holder, registrant, or through mobility/practice privilege.
The privilege for a CPA or firm to practice accounting in this state pursuant to section 12-100-117(2), C.R.S., and Rule 1.14.
An association of two or more entities that includes at least one CPA firm that:
A network firm is a firm or other entity that belongs to a network as defined in Rule 1.4 . This includes any entity (including another firm) that the network firm, by itself or through one or more of its owners, controls (as defined in FASB ASC 810), is controlled by, or is under common control with.
A shareholder of a corporation, a member of a limited liability company, a partner of a partnership, or any other person having an interest in any entity that is functionally equivalent to an owner's interest.
A committee established by the Board to oversee the peer review requirement.
A 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.
Reports issued by the peer reviewer/reviewing firm in accordance with the Board-approved peer review standards.
Board-approved professional standards for administering, performing, and reporting on peer reviews.
A licensee responsible for conducting a peer review.
Performing for a client or offering to perform for a client or potential client, one or more kinds, or any combination of services involving the use of accounting or attestation skills, including, but not limited to, issuance of reports on financial statements, or of one or more types of management advisory or consulting services, or the preparation of tax returns, or the furnishing of tax advice.
The privilege for a CPA or firm to practice accounting in this state pursuant to section 12-100-117(2), C.R.S., and Rule 1.14.
For the purposes of section 12-100-117(2), C.R.S., and these Rules, practicing in this state on "professional business" means that a CPA or foreign equivalent whose principle place of business is located in another state or jurisdiction is providing professional services in this state.
Any service performed or offered to be performed by a licensee while holding out.
The process by which an inactive or retired status certificate is returned to active status.
A firm that has been granted registration pursuant to the Act.
The process by which a certificate that has expired is returned to active, inactive, or retired status or by which a firm registration that has expired is returned to active/valid status.
The process to retain a certificate in active, inactive, or retired status, and to retain a firm registration in active/valid status in accordance with a schedule established by the Division of Professions and Occupations.
A sponsoring organization's committee responsible for the acceptance of peer review documents.
The firm partner, shareholder, or member designated to notify the Board of changes to the firm pursuant to section 12-100-114(2)(a)(III), C.R.S.
The status of a certificate following the Board's approval of a certificate holder's application to transfer the certificate status to retired.
A Board-approved professional society or other organization responsible for the facilitation and administration of peer reviews through use of its peer review program and peer review standards.
A determination by the Board or its designee that the education, examination, and experience requirements contained in the statutes and administrative rules of another jurisdiction are comparable to or exceed the education, examination, and experience requirements contained in the AICPA/ NASBA Uniform Accountancy Act (UAA) or that an individual CPA's education, examination, and experience qualifications are comparable to or exceed the requirements contained in the UAA.
Generally accepted accounting principles as contained in the AICPA Professional Standards incorporated by reference in Rule 1.4(C).
Generally accepted auditing standards as contained in the AICPA Professional Standards incorporated by reference in Rule 1.4(C).
C. INCORPORATION BY REFERENCE
The materials listed in this Rule 1.4 are incorporated by reference. These Rules do not include later amendments to or editions of the materials incorporated by reference in this Rule 1.4 . (Note, however, that pursuant to law, licensees will be held to the requirements in those editions that were in effect at the time of the conduct at issue.) If a Rule of the State Board of Accountancy is inconsistent or otherwise differs from the materials incorporated by reference herein, the Rule of the State Board of Accountancy governs. Copies of these materials are available for public inspection during regular business hours at the Board's Office at 1560 Broadway, Suite 1350, Denver, Colorado, 80202 and at the Colorado State Publications Library or at the specific addresses and websites provided below. For information on obtaining or examining these materials, contact the Board's Office at 1560 Broadway, Suite 1350, Denver, Colorado, 80202 or via email at dora_accountancy@state.co.us
The Code of Professional Conduct issued by the AICPA in the "AICPA Professional Standards," effective December 15, 2014. These materials may also be obtained at AICPA.org or AICPA, 220 Leigh Farm Road, Durham, North Carolina 27707-8110.
The AICPA Professional Standards, effective June 1, 2021, issued by the AICPA. These materials may also be obtained at AICPA.org or AICPA, 220 Leigh Farm Road, Durham, North Carolina 27707-8110.
The NASBA CPE Fields of Study, effective December 31, 2019, and available at https://www.colorado.gov/dora/Accountancy_CPE or at https://www.nasbaregistry.org/the-standards or NASBA, 150 Fourth Ave. North, Ste. 700, Nashville, TN, 37219-2417.
The Joint AICPA/NASBA Statement on Standards for Continuing Professional Education (CPE) Programs jointly issued by the AICPA and NASBA, effective December 31, 2019, and available at https://www.colorado.gov/dora/Accountancy_CPE or at https://www.nasbaregistry.org/the-standards or NASBA, 150 Fourth Ave. North, Ste. 700, Nashville, TN, 37219-2417.
The statements of governmental accounting standards issued as
of the effective dates of these Rules and available at
The FASB Accounting Standards Codification issued as of the
effective date of these Rules and available at
The Government Auditing Standards, effective July 17, 2018 issued by the U.S. Governmental Accountability Office and available at www.gao.gov/yellowbook or U.S. Government Publishing Office, 732 North Capitol Street, NW, Washington, DC 20401-0001.
The standards of the Cost Accounting Standards Board (CASB) codified in Title 48, Chapter 99: Federal Acquisition Regulations System at Part 9904- Cost Accounting Standards, as amended October 1, 2020, available at https://www.govinfo.gov/app/collection/cfr/2020/title48, https://www.ecfr.gov/current/title-48/chapter-99/subchapter-B/part-9904?toc=1, or The Office of Management and Budget 725 17th Street, NW Washington, DC 20503.
The FASAB Handbook of Accounting Standards and Other Pronouncements, As Amended as of June 30, 2021, available at http://www.fasab.gov/accounting-standards or FASAB, 441 G Street, NW, Suite 1155,Washington, DC 20548.
