Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 2010 - Missouri State Board of Accountancy
Chapter 2 - General Rules
Section 20 CSR 2010-2.005 - Definitions

Universal Citation: 20 MO Code of State Regs 2010-2.005

Current through Register Vol. 49, No. 6, March 15, 2024

PURPOSE: This rule defines terms used in the rules of the Missouri State Board of Accountancy.

PUBLISHER'S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

(1) Commission fee or referral fee shall include, but not be limited to:

(A) Any fee, profit, or other thing of value required or received for the rendering or selling of goods or services; or

(B) Any fee, profit, or other thing of value required or received for referring a client to the products or services of others; or

(C) Any fee, profit, or other thing of value paid to obtain a client. This rule does not apply to payments made where the payments are part of the employees' compensation or for the purchase of all, or a material part, of an accounting practice, or to retirement payments to persons formerly engaged in the practice of public accounting.

(2) Contingent fee means compensation for the performance of professional services where the compensation or the amount is contingent upon the findings or result of those services.

(3) C PA means a certified public accountant.

(4) Enterprise means any person(s) or entity, whether organized for profit or not, for which a licensee provides services.

(5) Financial statement is a presentation of financial data, including accompanying notes, if any, intended to communicate an entity's economic resources and/or obligations at a point in time or the changes therein for a period of time, in accordance with generally accepted accounting principles or a comprehensive basis of accounting other than generally accepted accounting principles. Incidental financial data to support recommendations to a client or in documents for which the reporting is governed by Statements on Standards for Attestation Engagements and tax returns and supporting schedules do not, for this purpose, constitute financial statements. The statement, affidavit, or signature of pre-parers required on tax returns neither constitutes an opinion on financial statements nor requires a disclaimer of such opinion. Statements on Standards of Attestation Engagement are documents included in the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct (June 1, 2012), which is incorporated by reference in this rule. A printed copy or copy on CD-Rom or other electronic copies of the Rules of Professional Conduct may also be obtained from the American Institute of Certified Public Accountants, 220 Leigh Farm Road, Durham, NC 27707 or http://www.aicpa.org. This rule does not incorporate any subsequent amendments or additions.

(6) Office means any place from which a Certified Public Accountant (CPA) or CPA firm, employee, agent, or designee practices or offers to practice public accounting.

(7) Practice of public accounting means:

(A) Performing or offering to perform for an enterprise, client, or potential client one (1) or more services involving the use of accounting or auditing skills or one (1) or more management advisory or consulting services or the preparation of tax returns or the furnishing of advice on tax matters by a person or firm using the title Certified Public Accountant, or "CPA," in signs, advertising, directory listings, business cards, letterheads, or other public representations, except that this shall not contradict section 326.292, RSMo;

(B) Signing or affixing one's own name, any trade or assumed name used by him or her, or a professional firm in his or her or its professional firm name, with any wording indicating he or she or the professional firm has expert knowledge in accounting or auditing, to any opinion or certificate attesting in any way to the reliability of any representation or estimate in regard to any person or organization embracing financial information or facts respecting compliance with conditions established by law or contract including, but not limited to, statutes, ordinances, rules, grants, loans, and appropriations, except that this shall not contradict section 326.292, RSMo;

(C) Offering to the public or to prospective clients to perform or actually performing on behalf of clients any professional services that involve or require an audit or examination of financial records leading to the expression of a written attestation or opinion concerning these records, except that this shall not contradict section 326.292, RSMo; or

(D) Maintaining an office for the transaction of business as a C PA firm.

(8) Professional services means any services including all services performed by an individual while holding himself or herself out as a CPA.

(9) Resident of this state is an individual considered to be for the purposes of Chapter 326, RSMo, a resident of this state, provided:

(A) The individual maintains a permanent place of residence in Missouri and actually resides in Missouri;

(B) The individual is a full-time student at an accredited college or university in this state;

(C) The individual, who is a graduate from a Missouri college or university, and at the time of graduation had a Missouri address, shall be considered a resident of this state for six (6) months from the date of graduation;

(D) The individual is regularly employed full-time in this state; or

(E) The individual is a permanent resident of Missouri and is serving on active duty in the armed services, or the individual is a permanent resident of Missouri and is the spouse of an individual serving on active duty in the armed services. To satisfy the requirements of this rule, employment in Missouri need not be in public accounting.

(10) A resident manager of an office is a CPA holding an active license to practice, issued under section 326.280, RSMo, and currently practicing public accounting, who has direct supervision of the office and who, in addition, oversees the planning, administration, direction, and review of the services being performed by that office.

(11) Accounting firm is a certified public accountant firm, a C PA firm, or firm, sole proprietorship, a corporation, a partnership, or any other form of organization issued a permit pursuant to section 326.289, RSMo.

(12) The provisions of this rule are declared severable. If any provision of this rule is held invalid by a court of competent jurisdiction, the remaining provisions of this rule shall remain in full force and effect, unless otherwise determined by a court of competent jurisdiction to be invalid.

*Original authority: 326.256, RSMo 2001, amended 2002, 2008; 326.262, RSMo 2001; and 326.268, RSMo 2001.

Disclaimer: These regulations may not be the most recent version. Missouri 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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