Current through Register Vol. 63, No. 9, September 1, 2024
(1)
General Standards. Licensees
shall comply with the following general standards.
(a)
Professional Competence.
Licensees shall undertake only those professional services that the licensee or
the licensee's firm can reasonably expect to be completed with professional
competence.
(b)
Due
Professional Care. Licensees shall exercise due professional care in the
performance of professional services.
(c)
Planning and Supervision.
Licensees shall plan and supervise the performance of professional services.
(d)
Sufficient Relevant
Data. Licensees shall obtain sufficient relevant data to afford a
reasonable basis for conclusions or recommendations in relation to any
professional services performed.
(e) The Board adopts the General Standards
and the compliance with the General Standards sections of the AICPA Code of
Professional Conduct. The AICPA interpretations and definitions of these
sections are adopted as non-exclusive guidance to licensees, prospective
licensees, the board, and members of the public.
(2)
Auditing standards. A
licensee shall not permit the licensee's name to be associated with financial
statements in such a manner as to imply that the licensee is independent with
respect to such financial statements unless the licensee has complied with
applicable generally accepted auditing standards. Statements on Auditing
Standards issued by the AICPA, and other pronouncements having similar
generally recognized authority, are considered to be interpretations of
generally accepted auditing standards, and departures must be justified when
such standards are not followed.
(3)
Accounting principles.
(a)
Responsibility of Licensees in
Public Accounting. A licensee shall not express an opinion that
financial statements are presented in conformity with generally accepted
accounting principles if such financial statements contain any departure from
such accounting principles which has a material effect on the financial
statements taken as a whole, unless the licensee can demonstrate that by reason
of unusual circumstances, the financial statements would otherwise have been
misleading. In such a case, the licensee's report must describe the departure,
the approximate effects thereof, if practicable, and the reasons why compliance
with the principle would result in a misleading statement. For purposes of this
rule, generally accepted accounting principles are defined by pronouncements
issued by the Financial Accounting Standards Board and its predecessor entities
and similar pronouncements issued by other entities having similar generally
recognized authority, including International Financial Reporting Standards
promulgated by the International Accounting Standards Board.
(b)
Responsibility for the Reporting on
financial statements in conformity with GAAP. A person who holds an
active or inactive license shall not state affirmatively that financial
statements or other financial data of an entity are presented in conformity
with generally accepted accounting principles (GAAP) if such statements or data
contain any departure from an accounting principle promulgated by the Financial
Accounting Standards Board and its predecessor entities and similar generally
recognized authority that has a material effect on the statements or data taken
as a whole, including International Financial Reporting Standards promulgated
by the International Accounting Standards Board.
(c)
Departures from Established
Accounting Principles. There is a strong presumption that adherence to
officially established accounting principles would in nearly all instances
result in financial statements that are not misleading. There may be unusual
circumstances where literal application of pronouncements on accounting
principles would have the effect of rendering financial statements misleading.
In such cases the proper accounting treatment is that which will render the
financial statements not misleading. The question of what constitutes unusual
circumstances is a matter of professional judgment involving the ability to
support the position that adherence to a promulgated principle would be
regarded by a reasonable person as producing a misleading
result.
(4) Tax standards.
Licensees shall not perform tax planning services, recommend tax return
positions or prepare or sign tax returns (including amended returns, claims for
refund and information returns) filed with any taxing authority unless the
licensee has complied with Statements on Standards for Tax Services issued by
the Tax Executive Committee of the American Institute of Certified Public
Accountants and with United States Department of Treasury Circular No.
230.
(5)
Other professional
standards. Licensees, in the performance of consulting services or
accounting and attest services, shall conform to the professional standards
applicable to such services. For purposes of this rule such professional
standards are considered to be defined by Statements on Consulting Services and
Statements for Accounting and Review Services, respectively, in each instance
issued by the AICPA, and by similar pronouncements by other entities having
generally recognized authority.
Statutory/Other Authority: ORS
670.310 &
673.410
Statutes/Other Implemented: ORS
673.410
