Michigan Administrative Code
Department - Licensing and Regulatory Affairs
Bureau of Professional Licensing
Board of Accounting
Accountancy - General Rules
Part 1 - GENERAL PROVISIONS
Section R. 338.5101 - Definitions
Universal Citation: MI Admin Code R. 338.5101
Current through Vol. 24-04, March 15, 2024
Rule 101.
(1) As used in these rules:
(a) "Board" means the
state board of accountancy created under section 721 of the code, MCL
339.721.
(b) "Code" means the occupational code, 1980
PA 299, MCL
339.101 to
339.2677.
(c) "Continuing education period" means all
or part of a year beginning July 1 and ending June 30.
(d) "Continuous instruction" means education
time not including breakfast, lunch, or dinner periods, coffee breaks, or any
other breaks in the program.
(e)
"CPA" means certified public accountant.
(f) "Disclose" means to provide a written
communication from a CPA or CPA firm informing the client, before making a
recommendation or referral, that the CPA or CPA firm will receive a commission,
referral fee, or contingency fee from a third-party for recommendations or
referrals of products or services, or both.
(g) "Enterprise" means a person for which an
individual licensee, firm licensee, individual with practice privileges, or
out-of-state firm performs professional services.
(h) "Financial statements" means statements
and related footnotes that show financial position, results of operations, and
cash flows based on generally accepted accounting principles or another
comprehensive basis of accounting. Financial statements does not include
incidental financial data included in-management advisory services reports to
support recommendations to a client and does not include tax returns and
supporting schedules of tax returns.
(i) "Generally accepted accounting
principles" means accounting principles issued by the applicable nationally or
internationally recognized professional standard setting organization related
to individual accounting engagements.
(j) "Generally accepted auditing standards"
means the standards of professional conduct, issued by the applicable
nationally or internationally recognized professional standard setting
organization, related to individual audit engagements.
(k) "Individual with practice privileges"
means an individual who practices in this state under section 727a of the code,
MCL 339.727a.
(l) "Nano-learning program" means a tutorial
program designed to allow a participant to learn a given content area in a
10-minute period with electronic media and without interaction with a real-time
instructor.
(m) "Out-of-state firm"
means a firm that may provide certain services and use the title "CPA firm"
without obtaining a firm license under the conditions in section 728(4) and (5)
of the code, MCL
339.728.
(n) "Professional engagement" means an
agreement between a client and an individual licensee, firm licensee,
individual with practice privileges, or out-of-state firm relative to the
performance of professional services.
(o) "Professional services" means any
services performed or offered to be performed by an individual licensee, firm
licensee, individual with practice privileges, or out-of-state firm for a
client in the course of the practice of public accounting under section 720 of
the code, MCL
339.720.
(p) "Qualifying hours" means continuing
education hours that satisfy part 3 of these rules.
(2) A term defined in the code has the same meaning when used in these rules.
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