(c) offering to perform or
performing, for other persons one or more types of the following services
including but not limited to accounting, management advisory, financial
advisory, and tax exclusive of services within subdivisions (a) and (b) of this
section, which involve use of the professional skills or competencies described
in paragraph (1) of this subdivision of the licensed accountant, including
professional services rendered to one's employer not required to register under
Education Law section 7408, in any and all matters related to accounting
concepts and to the recording of financial data or the preparation or
presentation of financial statements.
(1)
Professional skills and competencies. The practice of public accountancy shall
include accounting, management advisory, financial advisory, and tax exclusive
of services within subdivisions (a) and (b) of this section, which involve, but
shall not be limited to, use of the following professional skills or
competencies:
(i) application of accounting
skills, which shall include:
(a) preparation
of financial statements and note disclosures;
(b) analysis of the effects of transactions
on account balances;
(c) analysis
of account balances;
(d)
calculation of key financial ratios and interpretation of the results of such
calculations; and
(e) application
of appropriate generally accepted accounting principles in practice.
(ii) application of transaction
processing cycles and the control environment, which shall include:
(a) development of a flow chart to explain
operational processes;
(b)
identification of potential weaknesses in a company's internal control
structure, including computer information systems controls; and
(c) evaluation of corporate governance and
structure;
(iii)
identification of potential violations of ethical behavior;
(iv) fraud detection and
deterrence;
(v) application of
business law and laws related to fraud, including:
(a) cognizance of the fundamental legal
principles associated with contracts, civil and criminal matters, social goals
associated with the legal system and the role of the justice system;
(b) recognition of the advantages and
disadvantages of the different forms of business organization;
(c) recognition of the ethical duties and
legal responsibilities associated with confidentiality; and
(d) familiarization with legal restrictions,
privacy laws, and rights of individuals in gathering evidence of embezzlement,
money laundering, and other issues related to fraud;
(vi) application of tax law:
(a) application of current Federal income tax
laws for individuals and businesses;
(b) application of current State and local
income tax laws for individuals and businesses;
(c) application of financial planning
concepts to current gift and estate tax laws;
(d) calculation of payroll taxes;
and
(e) calculation of sales and
use taxes.
(vii)
application of government and not-for-profit accounting principles, including:
(a) analysis of the differences between
financial reporting for a business enterprise and a government or
not-for-profit entity; and
(b)
preparation of financial statements for a governmental and a not-for-profit
organization by applying appropriate accounting concepts;
(viii) application of management accounting
concepts, including:
(a) evaluation of data
to support decision-making; and
(b)
analysis of expenses to reduce a company's costs and improve
profitability.
(ix)
application of finance concepts, including:
(a) calculation of the time value of
money;
(b) analysis of debt versus
equity in business financing decisions; and
(c) evaluation of investment opportunities
using discounted cash flow, net present value, and risk analysis.
