An Act
ENROLLED SENATE
BILL NO. 1253 By: Dugger and Stanley of the
Senate
and
Kendrix of the House
An Act relating to the Oklahoma Accountancy A ct;
amending 59 O.S. 2021, Section 15.1A, which relates
to definitions; modifying definition to include
certain examination; updating statutory language; and
providing an effective date .
SUBJECT: Oklahoma Accountancy Act def initions
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 59 O.S. 2021, Sectio n 15.1A, is
amended to read as follows:
Section 15.1A. As used in the Oklahoma Accountancy Act:
1. "Accountancy" means the profession or practice of
accounting;
2. "AICPA" means the American Inst itute of Certified Public
Accountants;
3. "Applicant" means an individual or entity tha t has made
application to the Board for a certificate, license, or permit and
said application has not been approved;
ENR. S. B. NO. 1253 Page 2
4. "Assurance" means independent professional ser vices that
improve the quality of i nformation, or its context, for decision
makers;
5. "Attest" means providing the following services:
a. any audit or other engagement to be performed in
accordance with the Statements on Auditing Standards
(SAS),
b. any review of a financial statement to be performed in
accordance with the Statements on Sta ndards for
Accounting and Review Services (SSARS),
c. any engagement performed in accordance with the
Statements on Standards for Attestation Engagements
(SSAE), and
d. any engagement to be performed in accordance with the
Auditing Standards of the Public Company Accounting
Oversight Board (PCAOB).
The statements on standards specified in this definition shall
be adopted by reference by the Board pursuant to rulemaking a nd
shall be those developed for gen eral application by recognized
national accountancy o rganizations, such as the AICPA, IFAC and the
PCAOB;
6. "Audit" can only be performed by an individual or entity who
is registered with the Board and holding a valid p ermit issued
pursuant to the Oklaho ma Accountancy Act, or an individual granted
practice privileges under Section 15.12A of this title, and means a
systematic investigation or appraisal of information, procedures, or
operations performed in accordance with generally accepted auditing
standards in the United States, for the purpose of determin ing
conformity with established criteria and communicating the results
to interested parties;
7. "Board" means the Oklahoma Accountancy Board;
ENR. S. B. NO. 1253 Page 3
8. "Candidate" means an individual who has been qualified and
approved by the Board to take an examination for a certificate or
license;
9. "Certificate" means the Oklahoma document issued by the
Board to a candidate upon successful completion of the certified
public accountant examination designating the holder as a certified
public accountant pursuant to the law s of Oklahoma. "Certificate"
shall also mean the Oklahoma document issued by reciprocity to an
individual who has previously been certified in another
jurisdiction;
10. "Certified public accountant " means any person who has
received a certificate from th e Board or other jurisdictions;
11. "Client" means the individual or entity which retains a
registrant, an individual granted practice privileges under Section
15.12A of this title, or a firm exempt fro m the permit and
registration requirements under Sect ion 15.15C of this title to
perform professional services;
12. "Compilation" when used with reference to financial
statements, means presenting information in the form of financial
statements which is t he representation of managem ent or owners
without undertaking to express any assurance on the statements;
13. "CPA" or "C.P.A." means certified public accountant;
14. "Designated manager" means the Oklahoma certified pu blic
accountant or public accountan t appointed by the firm part ners or
shareholders to be responsible for the administration of the office;
15. "Designee" means the National Association of State Boards
of Accountancy (NASBA) or other entities so designate d by the Board;
16. "Entity" means an organization whether for profit or not,
recognized by the State of Oklahoma this state to conduct business;
17. "Examination" means the test sections of Auditing and
Attestation, Business Environment and Concepts, Financial Acc ounting
and Reporting, and Regulation or their successors, admi nistered,
supervised, and graded by, or at the direction of, the Board or
ENR. S. B. NO. 1253 Page 4
other jurisdiction that is required for a certificate as a certified
public accountant or a license as a public account ant all or any
part of the Uniform Certified Public Accountant Examination
developed and scored by the American Institute of Cert ified Public
Accountants as approved or designated by the Board;
18. "Executive director" means the chief administrative offic er
of the Board;
19. "Financial statements" means statements and footnotes
related thereto that undertake to present an actual or anticipated
financial position as of a point in time, or results of operations,
cash flow, or changes in financial position f or a period of time, in
conformity with generally accepted acco unting principles or another
comprehensive basis of accounting. The term does not include
incidental financial data included in management advisory service
reports to support recommendations t o a client; nor does it include
tax returns and supporting sche dules;
20. "Firm" means an entity that is either a sole
proprietorship, partnership, professional limited liability company,
professional limited liability partnership, limited liability
partnership or professional corporation, or any other professional
form of organization organized under the laws of the State of
Oklahoma this state or the laws of another jurisdiction and issued a
permit in accordance with Section 15.15A of this title or exempt
from the permit requirement under Section 15.15C of this title ,
including individual partners or shareholders, that is engaged in
accountancy;
21. "Holding out" means any representation by an individual
that he or she holds a certificate or license and a valid per mit, or
by an entity that it holds a valid permit. Any such re presentation
is presumed to invite the public to rely upon the professional
skills implied by the certificate or license and valid permit in
connection with the services or products offered;
22. "Home office" means the location specified by the client as
the address to which a service described in Section 15.12A of this
title is directed;
23. "IFAC" means the International Federation of Accountants;
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24. "Individual" means a human being;
25. "Jurisdiction" means any state or territory of the United
States and the District of Columbia;
26. "License" means the Oklahoma document issued by the Board
to a candidate upon successful completion of the public accountant
examination designating the hol der as a public accountant pursuant
to the laws of Oklahoma. "License" shall also mean the Oklahoma
document issued by the Board by reciprocity to a public accountant
who has previously been licensed by examination in another
jurisdiction;
27. "Management advisory services", also known as "management
consulting services", "management services", "business advisory
services" or other similar designation, hereinafter collectively
referred to as "MAS", means the function of providing advice and/or
technical assistance, performed in accordance with standards for MAS
engagements and MAS consultations such as those issued by the
American Institute of Certified Public Accountants, where the
primary purpose is to help the client improve the use of its
capabilities and resources to achieve its objectives including but
not limited to:
a. counseling management in analysis, planning,
organizing, operating, risk management and controlling
functions,
b. conducting special studies, preparing recommendations,
proposing plans and programs, and providing advice and
technical assistance i n their implementation,
c. reviewing and suggesting improvement of policies,
procedures, systems, methods, and organization
relationships, and
d. introducing new ideas, concepts, and methods t o
management.
MAS shall not include recommendations and comments prepared as a
direct result of observations made while performing an audit,
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review, or compilation of financial statements or while providing
tax services, including tax consultations;
28. "NASBA" means the National Association of State Boards of
Accountancy;
29. "PA" or "P.A." means public accountant;
30. "Partnership" means a contractual relationship based upon a
written, oral, or implied agreement between two or more individuals
who combine their resources and activities in a joint enterprise and
share in varying degrees and by specific agreement in the management
and in the profits or losses. A partnership may be general or
limited as the laws of this state define those terms;
31. "PCAOB" means the Public Company Accounting Oversight
Board;
32. "Peer Review" means a review performed pursuant to a set of
peer review rules established by the Board. The term "peer review"
also encompasses the term "quality review";
33. "Permit" means the written authority granted annually by
the Board to individuals or firms to practice public accounting in
Oklahoma, which is issued pursuant to the Oklahoma Accountancy Act;
34. a. "Practice of public accounting ", also known as
"practice public accounting", "practice" and "practice
accounting", refers to the activitie s of a registrant,
an individual granted practice privileges under
Section 15.12A of this title, or a firm exempt from
the permit and registration requirements under Section
15.15C of this title in reference to accountancy. An
individual or firm shall be deemed to be engaged in
the practice of public accounting if the individual or
firm holds itself out to the public in any manner as
one skilled in the knowledge, science, and practice of
accounting and auditing, taxation and management
advisory services an d is qualified to render such
professional services as a certified public accountant
or public accountant, and performs the following:
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(1) maintains an office for the transaction of
business as a certified public accountant or
public accountant,
(2) offers to prospective clients to perform or who
does perform on behalf of clients professional
services that involve or require an audit,
verification, investigation, certification,
presentation, or review of financial transactions
and accounting records or an a ttestation
concerning any other written assertion,
(3) prepares or certifies for clients reports on
audits or investigations of books or records of
account, balance sheets, and othe r financial,
accounting and related schedules, exhibits,
statements, or reports which are to be used for
publication or for the purpose of obtaining
credit, or for filing with a court of law or with
any governmental agency, or for any other
purpose,
(4) generally or incidentally to the work described
herein, renders professional services to clients
in any or all matters relating to accounting
procedure and to the recording, presentation, or
certification of financial information or data,
(5) keeps books, or prepares trial balances,
financial statements, or reports, all as a part
of bookkeeping services for clients,
(6) prepares or signs as the tax preparer, tax
returns for clients, consults with clients on tax
matters, conducts studies for clients on tax
matters and prepares reports for clients on tax
matters, unless the services a re uncompensated
and are limited solely to the registrant 's, or
the registrant's spouse's lineal and collateral
heirs,
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(7) prepares personal financial or investment plans
or provides to clients products or services of
others in implementation of personal f inancial or
investment plans, or
(8) provides management advisory services to clients.
b. Except for an individual granted practice privileges
under Section 15.12A of this tit le or a firm exempt
from the permit and registration requirements under
Section 15.15C of this title, an individual or firm
not holding a certificate, license or permit shall not
be deemed to be engaged in the practice of public
accounting if the individua l or firm does not hold
itself out, solicit, or advertise for clients using
the certified public accountant or public accountant
designation and engages only in the following
services:
(1) keeps books, or prepares trial balances,
financial statements, or reports, provided such
instruments do not use the terms "audit",
"audited", "exam", "examined", "review" or
"reviewed" or are not exhibited as having been
prepared by a certified public accountant or
public accountant. Except for an individual
granted practice privileges under Section 15.12A
of this title or a firm exempt from the perm it
and registration requirements under Section
15.15C of this title, nonregistrants may use the
following disclaimer language in connection with
financial statements and be i n compliance with
the Oklahoma Accountancy Act: "I (we) have not
audited, examined or reviewed the accompanying
financial statements and accordingly do not
express an opinion or any other form of assurance
on them.",
(2) prepares or signs as the tax prep arer, tax
returns for clients, consults with clients on tax
matters, conducts studi es for clients on tax
ENR. S. B. NO. 1253 Page 9
matters and prepares reports for clients on tax
matters,
(3) prepares personal financial or investment plans
or provides to clients products or servic es of
others in implementation of personal financial or
investment plans, or
(4) provides management advisory services to clients.
c. Only permit holders, individuals granted practice
privileges under Section 15.12A of this title, or
firms exempt from th e permit and registrati on
requirements under Section 15.15C of this title may
render or offer to render any attest service, as
defined herein, or issue a report on financial
statements which purport to be in compliance with the
Statements on Standards for Accounting and Review
Services (SSARS). This restriction shall not prohibit
any act of a public official or public employee in the
performance of that person 's duties. This restriction
shall not be construed to prohibit the performance by
any unlicensed individual of other ser vices as set out
in subparagraph b of this paragraph.
d. A person is not deemed to be practicing public
accounting within the meaning of this section solely
by displaying an Oklahoma CPA certificate or a PA
license in an office, ide ntifying himself or hers elf
as a CPA or PA on letterhead or business cards, or
identifying himself or herself as a CPA or PA.
However, the designation of CPA or PA on such
letterheads, business cards, public signs,
advertisements, publications directed to clients or
potential clients, financial or tax documents of a
client, performance of a ny attest service or issuance
of a report constitutes the practice of public
accounting and requires a permit, practice privileges
under Section 15.12A of this title, or an exemption
from the permit and registration requirements under
Section 15.15C of thi s title;
ENR. S. B. NO. 1253 Page 10
35. "Preissuance review" means a review preformed pursuant to a
set of procedures that include review of engagement document,
report, and clients' financial statements in order to per mit the
reviewer to assess compliance with all applicable profe ssional
standards;
36. "Principal place of business " means the office location
designated by the licensee for the purposes of substantial
equivalency and reciprocity;
37. "Professional corporation" means a corporation organized
pursuant to the laws of th is state;
38. "Professional" means arising out of or related to the
specialized knowledge or skills associated with CPAs or PAs;
39. "Public accountant" means any individual who has received a
license from the Board;
40. "Public interest" means the collective well-being of the
community of people and institutions the profession serves;
41. "Qualification applicant " means an individual who has made
application to the Board to qualify to becom e a candidate for
examination;
42. "Registrant" means a CPA, PA, or firm composed of certified
public accountants or public accountants or combination of both
currently registered with the Board pursuant to the authority of the
Oklahoma Accountancy Act;
43. "Report", when used with reference to any attest or
compilation service, means an opinion, report or other form of
language that states or implies assurance as to the reliability of
the attested information or complied financial statements, and that
also includes or is accompanied by any statement or implication t hat
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 is suer of the
report of names or titles indicating that the perso n 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
ENR. S. B. NO. 1253 Page 11
opinion when such form of language is conve ntionally understood to
imply any positive assurance as to the reliability of the attested
information or compiled financial statements referred to and/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 su ch assurance and/or such
special knowledge or competence. This definition is not intended to
include a report prepared by a person not holding a certificate or
license or not granted practice privileges under Section 15.12A of
this title. However, such r eport shall not refer to "audit",
"audited", "exam", "examined", "review" or "reviewed", nor use the
language "in accordance with standards established by the A merican
Institute of Certified Pu blic Accountants" or successor of said
entity, or governmental agency approved by the Board, except for the
Internal Revenue Service. Except for an individual granted practice
privileges under Section 15.12A of this title or a firm exempt from
the permit and registration requirements under Section 15.15C of
this title, nonregistrants may use the following disclaimer language
in connection with financial statements not to be in violation of
the Oklahoma Accountancy Act: "I (we) have not audited, examined,
or reviewed the accompanying financial statements and according ly do
not express an opinion or any other form of assurance on them. ";
44. "Representation" means any oral or written communication
including but not limited to the use of title or legends on
letterheads, business cards, office doors, advertisements, and
listings conveying the fact that an individual or entity holds a
certificate, license or permit;
45. "Review", when used with reference to financial statemen ts,
means a registrant or an indivi dual granted practice privileges
under Section 15.12A of this t itle, or a firm exempt from the permit
and registration requirements under Section 15.15C of this title
performing inquiry and analytical procedures that prov ide the
registrant with a reasonabl e basis for expressing limited assurance
that there are no mate rial modifications that should be made to the
statements in order for them to be in conformity with generally
accepted accounting principles or, if applicable , with another
comprehensive basis of accounting; and
46. "Substantial equivalency " is a determination by the
Oklahoma Accountancy Board or its designee that:
ENR. S. B. NO. 1253 Page 12
a. the education, examination and experience requirements
contained in the statutes and admini strative rules of
another jurisdiction are comparable to, or exceed, the
education, examination and experience requirements
contained in the AICPA/NASBA Uniform Accountancy Act,
or
b. that an individual certified public accountant 's or
public accountant's education, examination and
experience qualifications are comparable to or exceed
the education, examination and experience requirements
contained in the Oklahoma Accountancy Act and rules of
the Board.
In ascertaining substantial equivalency as used in t he Oklahoma
Accountancy Act, the Board or its designee shall take into account
the qualifications with out regard to the sequence in which
experience, education, or examination requirements were attained.
SECTION 2. This act shall become e ffective November 1, 2022.
ENR. S. B. NO. 1253 Page 13
Passed the Senate the 16th day of February, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the 18th day of April, 2022.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _______________________________ __