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30th Legislature(2017-2018)

Bill Text 30th Legislature

00 Enrolled HB 147                                                                                                         
01 Relating to the Board of Public Accountancy; relating to the licensure of public accountants;                           
02 and relating to the practice of public accounting.                                                                      
03                           _______________                                                                               
04    * Section 1. AS 08.04.080 is amended to read:                                                                        
05 Sec. 08.04.080. Adoption of rules. The board may adopt rules of professional                                            
06 conduct to establish and maintain a high standard of integrity and dignity in the                                       
07 profession of public accounting. At least 30 days before the adoption of any rule or                                    
08 amendment, the board shall send a notice [MAIL COPIES] of the proposed rule or                                        
09 amendment [TOGETHER WITH A NOTICE OF ITS EFFECTIVE DATE] to each                                                        
10       holder of a license or permit issued under this chapter to the address of the license or                          
11       permit holder last known to the board.                                                                            
12    * Sec. 2. AS 08.04.110 is amended to read:                                                                           
13            Sec. 08.04.110. Personal requirements. An applicant for a certified public                                   
14       accountant license shall be [AT LEAST 19 YEARS OF AGE AND] of good moral                                          
01       character.                                                                                                        
02    * Sec. 3. AS 08.04.195(a) is amended to read:                                                                        
03            (a)  Notwithstanding AS 08.04.110 - 08.04.190, the board may issue a license                                 
04       to engage in the practice of public accounting to an applicant who holds a license, or                            
05       its equivalent, issued by another state if the applicant                                                          
06                 (1)  passed the Uniform Certified Public Accountant Examination of                                      
07       the American Institute of Certified Public Accountants in order to receive the                                    
08       applicant's initial license from the other state;                                                                 
09                 (2)  [HAS FOUR YEARS OF EXPERIENCE OUTSIDE THE STATE                                                    
10 IN THE PRACTICE OF PUBLIC ACCOUNTING OR] meets the accounting                                                         
11 experience [EQUIVALENT] requirements established by the board by regulation;                                          
12 [THE FOUR YEARS MUST OCCUR AFTER THE APPLICANT PASSES THE                                                               
13 EXAMINATION REQUIRED IN (1) OF THIS SUBSECTION AND WITHIN THE                                                           
14 10 YEARS IMMEDIATELY PRECEDING THE APPLICANT'S APPLICATION                                                              
15       UNDER THIS CHAPTER;]                                                                                              
16 (3)  is not the subject of review procedures, disciplinary proceedings, or                                              
17       unresolved complaints related to the applicant's license from another state; and                                  
18                 (4)  is of good moral character.                                                                        
19    * Sec. 4. AS 08.04 is amended by adding a new section to read:                                                       
20 Sec. 08.04.565. Prohibited acts. An individual licensed under AS 08.04.105                                              
21 may not perform attest functions through a partnership, limited liability company,                                      
22 corporation, or other business entity unless the partnership, limited liability company,                                
23       corporation, or other business entity holds a valid permit issued under AS 08.04.240.                             
24    * Sec. 5. AS 08.04.662 is amended to read:                                                                           
25 Sec. 08.04.662. Confidential communications. (a) A license holder, a permit                                             
26 holder, a practice privilege holder, an out-of-state exemption holder, or a partner, an                                 
27 officer, a shareholder, a member, or an employee of a license holder, a permit holder,                                  
28 an out-of-state exemption holder, or a practice privilege holder may not reveal                                         
29 information communicated to the license holder, permit holder, out-of-state exemption                                   
30 holder, or practice privilege holder by a client about a matter concerning which the                                    
31 client has employed the license holder, permit holder, out-of-state exemption holder,                                   
01       or practice privilege holder in a professional capacity. This section does not apply to                           
02                 (1)  information required to be disclosed by the standards of the public                                
03       accounting profession in reporting on the examination of financial statements;                                    
04                 (2)  the release of information the client has authorized the license                                   
05       holder, permit holder, out-of-state exemption holder, or practice privilege holder to                             
06       reveal;                                                                                                           
07                 (3)  information revealed as part of the discovery of evidence related to                               
08       a court or administrative proceeding or introduced in evidence in a court or                                      
09       administrative proceeding;                                                                                        
10 (4)  information revealed in ethical investigations conducted by private                                                
11       professional organizations; [OR]                                                                                  
12 (5)  information revealed in the course of a quality review under                                                       
13       AS 08.04.426; or                                                                                                
14                 (6)  information disclosed                                                                            
15 (A)  under applicable state or federal laws or regulations; or                                                        
16 (B)  as required by the Public Company Accounting                                                                     
17            Oversight Board.                                                                                           
18 (b)  Client information obtained by the board under (a)(3) - (6) [(a)(3) - (5)] of                                    
19 this section is confidential and is not a public record for purposes of AS 40.25.110 -                                  
20       40.25.140.                                                                                                        
21    * Sec. 6. AS 08.04.680(1) is amended to read:                                                                        
22                 (1)  "attest function" means                                                                            
23 (A)  an audit or other engagement, if the performance of the                                                            
24 audit or other engagement is established by the Statements on Auditing                                                  
25            Standards;                                                                                                   
26 (B)  a review of a financial statement, if the performance of the                                                       
27 review is established by the Statements on Standards for Accounting and                                                 
28            Review Services;                                                                                             
29 (C)  an examination of prospective financial information, if the                                                        
30 performance of the examination is established by the Statements on Standards                                            
31            for Attestation Engagements; [OR]                                                                            
01                      (D)  an engagement, if the performance of the engagement is                                        
02            established by the Auditing Standards of the Public Company Accounting                                       
03            Oversight Board; or                                                                                        
04                      (E)  any examination, review, or agreed upon procedure to                                        
05            be performed in accordance with the standards on attestation                                               
06            engagements as                                                                                             
07                           (i)  developed by national accountancy organizations,                                       
08                 including the American Institute of Certified Public Accountants                                      
09                 and the Public Company Accounting Oversight Board; and                                                
10                           (ii)  adopted by the board in regulation;                                                   
11    * Sec. 7. AS 08.04.680(19) is amended to read:                                                                       
12 (19)  "report," when used with reference to an attest or compilation                                                  
13       service,                                                                                                        
14                      (A)  [FINANCIAL STATEMENTS,] means                                                               
15 (i)  an opinion, report, or other form of language that                                                               
16 states or implies assurance as to the reliability of financial statements                                               
17 and that also contains [INCLUDES] or is accompanied by a statement                                                    
18 or implication that the person issuing it has special knowledge or                                                      
19 competency in accounting or auditing, which [; A STATEMENT OR                                                         
20 IMPLICATION OF SPECIAL KNOWLEDGE OR COMPETENCE]                                                                         
21 may arise from use by the issuer of the report of names or titles                                                       
22 indicating that the issuer is a certified public accountant or auditor, or                                              
23                 from the language of the report itself;                                                                 
24 (ii)  [EXCEPT AS PROVIDED IN THIS                                                                                     
25 PARAGRAPH, "REPORT" INCLUDES] any form of language that                                                                 
26 disclaims an opinion when the form of the language is conventionally                                                    
27 understood to imply a positive assurance as to the reliability of the                                                   
28 financial statements referred to or special competence on the part of the                                               
29                 person issuing the language;                                                                            
30 (iii)  [AND "REPORT" INCLUDES] any other form of                                                                      
31 language that is conventionally understood to imply that [SUCH]                                                       
01                 assurance or [SUCH] special knowledge or competence;                                                    
02                      (B)  ["REPORT"] does not include                                                                 
03                           (i) [(A)]  a compilation of financial statement language                                    
04                 that does not express or imply assurance or special knowledge or                                        
05                 competence; or                                                                                          
06                           (ii) [(B)]  the following disclaimer language when used                                     
07                 by a person without a license, a practice privilege, or an out-of-state                                 
08                 exemption in connection with financial statements:                                                      
09                      [(i)]  "I (we) have prepared the accompanying (financial                                           
10 statements) of (name of entity) as of (time period) for                                                                 
11 the (period) then ended. This presentation is limited to                                                                
12 preparing, in the form of financial statements,                                                                         
13 information that is the representation of management                                                                    
14                      (owners)."; or                                                                                     
15 [(ii)]  "I (we) have not audited or reviewed the                                                                        
16 accompanying financial statements and, accordingly, do                                                                  
17 not express an opinion or any other form of assurance on                                                                
18                      them.";                                                                                            
19    * Sec. 8. AS 08.04.680(20) is amended to read:                                                                       
20                 (20)  "state" means a state of the United States, the District of                                       
21       Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands,                                        
22       Guam, the United States Virgin Islands, and American Samoa.                                                     
23    * Sec. 9. AS 08.04.120(b), 08.04.180, 08.04.580, 08.04.590, 08.04.595, and 08.04.598 are                             
24 repealed.                                                                                                               
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