K.S.A 1-321
1-321. Definitions. When
used in chapter 1 of the Kansas Statutes Annotated, and amendments thereto, the
following terms shall have the meanings indicated:
(a) “Actively participate” means
participation that is continuous as one’s primary occupation.
(b) “affiliated
entity” means one that provides services to the CPA firm or provides services
to the public that are complementary to those provided by the CPA firm.
(c) “AICPA” means the American
institute of certified public accountants.
(d) “Attest” means providing the
following financial statement services:
(1) Any audit or other engagement to be
performed in accordance with the statements on auditing standards (SAS);
(2) any audit to be
performed in accordance with the
(3) any review of a
financial statement to be performed in accordance with the statements on
standards for accounting and review services (SSARS);
(4) any
engagement, except a compilation, to be performed in accordance with the
statements on standards for attestation engagements (SSAE); and
(5)
any engagement to be performed in accordance
with the standards of the PCAOB.
(e) “Board” means the
(f) “Certificate” means a
certificate as a certified public accountant issued under K.S.A. 1-302 and
amendments thereto, or a certificate as a certified public accountant issued
after examination under the law of any other state.
(g) “Client” means a person or
entity that agrees with a permit holder to receive any professional service.
(h) “Compilation” means providing a
service to be performed in accordance with the statements on standards for
accounting and review services (SSARS) or performed in accordance with the statements
on standards for attestation engagements (SSAE) that is presented in the form
of financial statements or information that is the representation of management
or both, without undertaking to express any assurance on the statements.
(i)
“Equity capital” means (1) capital stock, capital accounts, capital
contributions or undistributed earnings of a registered firm as referred to in
K.S.A. 1-308 and amendments thereto; and (2) loans and advances to a registered
firm made or held by its owners. “Equity
capital” does not include an interest in bonuses, profit sharing plans, defined
benefit plans or loans to a registered firm from banks, financial institutions
or other third parties that do not actively participate in such registered
firm.
(j)
“Firm” means:
(1)
An individual who operates as a sole practitioner and who issues reports
subject to peer review; or
(2)
any business organization including, but not
limited to, a general partnership, lijmited liability
partnership, general corporation, professional corporation or limited liability
company.
(k) “Good moral character” means lack of a
history of professional dishonesty or other felonious acts.
(l) “Active license” means a
certificate or a permit to practice issued by another state that is currently
in force and authorizes the holder to practice certified public accountancy.
(m) “Licensee” means the holder of a
certificate or a permit to practice issued by this state or another state.
(n) “Manager” means a manager of a
limited liability company.
(o) “Member” means a member of a
limited liability company.
(p) “NASBA” means the national
association of state boards of accountancy.
(q) “Nonattest”
means providing the following services:
(1) The preparation of tax returns and
providing advice on tax matters;
(2) the preparation
of any compilation;
(3) management
advisory, consulting, litigation support and assurance services, except for
attest services;
(4) financial
planning; and
(5) any other financial service not
included in the statements on auditing standards, the statements on standards
for accounting and review services, the standards for attestation engagements
as developed by the American institute of certified public accountants or as
defined by the board.
(r)
“PCAOB means the public company accounting oversight board created by
the Sarbanes-Oxley act of 2002.
(s) “Practice of certified public
accountancy” means performing or offering to perform attest or nonattest services for the public while using the
designation “certified public accountant” or “CPA” in conjunction with such
services.
(t) “Practice of public accountancy”
means performing or offering to perform attest or nonattest
services for the public by a person not required to have a permit to practice
or a firm not required to register with the board.
(u) “Professional” means arising out
of or related to the specialized knowledge or skills associated with CPAs.
(v) “Report,” when used with
reference to financial statements, means an opinion, report or other form of
language that states or implies assurance as the reliability of any financial
statements and that also includes or is accompanied by any statement or
implication that the person or firm issuing it has special knowledge or
competence in accounting or auditing.
Such a 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 or firm is an accountant or auditor or from the language of the
report itself. The term report includes
any form of language which disclaims an opinion when such form of language is
conventionally understood to imply any positive assurance as to the reliability
of the financial statements referred to or special competence on the part of
the person or firm issuing such language; and it includes any other form of
language that is conventionally understood to imply such assurance or such
special knowledge or competence.
(w) “Rule” means any rule or
regulation adopted by the board .
(x) “State” means any state of the
(y) “Substantial equivalency” is a
determination by the board of accountancy or its designee that the education,
examination and experience requirements contained in the statutes and
administrative rules of another jurisdiction are comparable to, or exceed the
education, examination and experience requirements contained in the uniform
accountancy act or that an individual CPA’s education, examination and
experience qualifications are comparable to or exceed the education,
examination and experience requirements contained in the uniform accountancy
act.
(z) “Uniform accountancy act” means
model legislation issued by the AICPA and NASBA in existence on July 1, 2000.