Code of Maryland Regulations
Title 09 - MARYLAND DEPARTMENT OF LABOR
Subtitle 24 - BOARD OF PUBLIC ACCOUNTANCY
Chapter 09.24.01 - General Regulations
Section 09.24.01.01 - The Board

Universal Citation: MD Code Reg 09.24.01.01

Current through Register Vol. 51, No. 19, September 20, 2024

A. In this chapter, the following terms have the meanings indicated:

(1) "Client" means the person that retains a licensee for the performance of professional services.

(2) Contingent Fee.
(a) "Contingent fee" means a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of the service.

(b) "Contingent fee" does not apply to professional services:
(i) Involving tax matters, if the fee is determined based on the results of judicial proceedings or the findings of governmental agencies; and

(ii) For which the fees are to be fixed by the courts or other public authorities.

(3) "Financial statements" means statements and related footnotes that purport to show actual or anticipated financial position which relates to a point in time or results of operations, cash flow, or changes in financial position which relate to a period of time, on the basis of generally accepted accounting principles or another comprehensive basis of accounting. The term includes specific elements, accounts, or items of the financial 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.

(4) "Management course" means a course in business-related subjects of 3 semester hours taken to fulfill the requirement for a major in accounting and includes the study of:
(a) Controlling;

(b) Decision making;

(c) Leadership;

(d) Organization; and

(e) Planning.

(5) Other Compensation.
(a) "Other compensation" means compensation received by a licensee who is engaged in the practice of certified public accountancy other than for the performance of professional services, including compensation for the sale of products other than the work product of the licensee, or for referral of products or services of others.

(b) "Other compensation" does not include gifts valued at $100 or less in a single calendar year.

(6) "Practice of certified public accountancy" means to perform any of the following accountancy services:
(a) Conducting an audit or an examination of financial statements; or

(b) Providing a written certificate or opinion as to the correctness of the information or the fairness of the presentation of the information in any financial statement, schedule, report or exhibit.

(7) Practice of Public Accountancy.
(a) "Practice of public accountancy" means the offering to perform or the performance by a person while holding out to the public as a licensee, for a client or potential client:
(i) Services involving the use of accounting or auditing skills, including the issuance of reports on financial statements;

(ii) One or more types of management advisory services, consulting, or financial planning services; or

(iii) The preparation of tax returns or the furnishing of advice on tax matters.

(b) "Practice of public accountancy" includes the practice of certified public accountancy.

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

(9) "U.S. business law" means a course in accounting education of 3 or more semester hours taken to fulfill the requirement for a major in accounting, and includes the analysis and study of the law regarding:
(a) Agency;

(b) Contracts;

(c) Employment;

(d) Insurance;

(e) Negotiable instruments;

(f) Personal or real property; and

(g) Sales.

(10) Written Certificate or Opinion as to the Correctness of the Financial Statement or as to the Fairness of the Presentation.
(a) "Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation" means an opinion, report, or other form of language that states or implies assurance as to the reliability of any financial statements, and that also includes or is accompanied by any statement or implication that the person or firm issuing the written certificate or opinion has special knowledge or competence in accounting or auditing. This 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 is a certified public accountant or auditor, or may arise from the language of the certificate or opinion itself.

(b) "Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation" includes any:
(i) Form of language which expressly disclaims an opinion when that form of language is conventionally understood to imply any positive assurance as to the reliability of the financial statements referred to; and

(ii) Other form of language that is conventionally understood to imply positive assurance or special knowledge or competence.

(c) "Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation" may include special competence on the part of the person or firm issuing the language in this subsection.

B. The Board shall hold an annual meeting in July of each year or at such other time as the members of the Board may vote upon, for the purpose of electing officers. Monthly meetings may be held on dates mutually convenient to the members of the Board. Special meetings shall be held, after reasonable notice, at the call of the Chairman or of any two Board members. Notice of all meetings and hearings shall be published in the Maryland Register.

C. The Chairman shall preside at all meetings and shall perform such duties as the Board may direct. At any meeting at which the Chairman is absent, the Secretary-Treasurer shall act in the Chairman's place.

Disclaimer: These regulations may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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