An Act
ENROLLED SENATE
BILL NO. 170 By: Dugger 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, as last amended
by Section 1, Chapter 26, O.S.L. 2022 (59 O.S. S upp.
2022, Section 15.1A), which relates to definitions;
expanding definition; updating statutory language;
and providing an effective date .
SUBJECT: Accountancy definitions
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 59 O.S. 2021, Section 15.1A, as
last amended by Section 1, Chapter 26, O.S.L. 2022 (59 O.S. Supp.
2022, Section 15.1A), is amended to read as follows:
Section 15.1A. As used in the Oklahoma A ccountancy Act:
1. “Accountancy” means the profession or practice of
accounting;
2. “AICPA” means the American Institute of Ce rtified Public
Accountants;
3. “Applicant” means an individual or entity that has made
application to the Board for a certifica te or permit and said the
application has not been approved;
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4. “Assurance” means independent professional services that
improve the quality of inform ation, or its context, for decision
makers;
5. “Attest” means providing the follow ing services:
a. any audit or other engagement to be pe rformed in
accordance with the Statem ents on Auditing Standards
(SAS),
b. any review of a financial statement to be pe rformed in
accordance with the Stateme nts on Standards for
Accounting and Review Se rvices (SSARS),
c. any engagement examination of prospective financial
information to be performed in accordance with the
Statements on Standards for Attes tation Engagements
(SSAE), and
d. any engagement to be performed in accor dance with the
Auditing Standards of the Public Company Accounting
Oversight Board (PCAOB), and
e. any engagements, review, or agreed upon procedures
engagement to be performed in ac cordance with the
SSAE, other than the exceptions described in
subparagraph c of paragraph 34 of this section.
The statements on standards specified in this definition shall
be adopted by refere nce by the Board pursuant to rulemaking and
shall be those developed for general application by recognized
national accountancy organizations, such as the AICPA, IF AC and the
PCAOB;
6. “Audit” can only be performed by an individual or entity who
is registered with the Board and holding a valid permit issue d
pursuant to the Oklahoma Accountancy Act, or an individual grante d
practice privileges under Section 15.12A of this title, and means a
systematic investigation or ap praisal of information, procedures, o r
operations performed in accordance with generally accepted auditing
standards in the United States, for the purpose o f determining
ENR. S. B. NO. 170 Page 3
conformity with established cri teria and communicatin g the results
to interested parties;
7. “Board” means the Oklahoma Ac countancy Board;
8. “Candidate” means an individual who has been qualified a nd
approved by the Board to take the examination for a certificate;
9. “Certificate” means the Oklahoma docu ment issued by the
Board to a candidate upon successful completi on of the certified
public accountant examin ation designating the ho lder as a certified
public accountant pursuant to the laws of Oklahoma. “Certificate”
Certificate shall also mean the Oklahoma document issued by
reciprocity to an individual who has previously been certified in
another jurisdiction;
10. “Certified public accountan t” means any person who has
received a certificate from the Board or other jurisdictions;
11. “Client” means the individual or entity which retai ns a
registrant, an individual granted practice privileges under Section
15.12A of this title, or a firm exem pt from the permit and
registration requireme nts under Section 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 fin ancial
statements which is the representation of management or owne rs
without undertaking to express any assurance on the stat ements;
13. “CPA” or “C.P.A.” means certified public accountant;
14. “Designated manager” means the Oklahoma certified public
accountant or public accountant appointed by the firm partners or
shareholders to be responsible for the administration of the o ffice;
15. “Designee” means the National Association of State Boards
of Accountancy (NASBA) or other entities so designated by th e Board;
16. “Entity” means an organization whether for profit or not,
recognized by this state to conduct business;
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17. “Examination” means the test sections of Auditing and
Attestation, Business Environment and Concepts, Financial Accounting
and Reporting, and Regulation or thei r successors, administered,
supervised, and graded by, or at the direct ion of, the Board or
other jurisdiction that is required for a cer tificate as a certified
public accountant;
18. “Executive director” means the chief administrative officer
of the Board;
19. “Financial statements” means statements and footnotes
related thereto that undertake to pre sent an actual or anticipated
financial position as of a point in time, or results of operations,
cash flow, or changes i n financial position for a period of time, in
conformity with generally accepted accounting principles or a nother
comprehensive basis o f accounting. The term does not inc lude
incidental financial data included in management advisory service
reports to support recommendations to a client; nor does it include
tax returns and supporting schedules;
20. “Firm” means an entity that is either a sole
proprietorship, partnership, professional limited liability company,
professional limited liability partnership, l imited liability
partnership or professional corporation, or any other professional
form of organization or ganized under the laws of 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 acco untancy;
21. “Holding out” means any representation by an individual
that he or she holds a certificate or license and a valid permit, or
by an entity that it holds a valid permit. Any such representation
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 des cribed 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 holder as a public accountant pursuant
to the laws of this state. “License” 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 suc h 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 achi eve 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 p roviding advice and
technical assistance in their implementation,
c. reviewing and suggesting improvem ent of policies,
procedures, systems, methods, and organization
relationships, and
d. introducing new ideas, concepts, and methods to
management.
MAS shall not include recommendations and comments prepared as a
direct result of observations made while perf orming an audit,
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review, or compilation of financial statements o r 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 a nd activities in a joint enterprise and
share in varying degrees and by spec ific agreement in the manage ment
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” “Peer review” means a review perfor med
pursuant to a set of peer review rules established by the Board.
The term “peer review” peer review also encompasses the term
“quality review”;
33. “Permit” means the written authorit y granted annually by
the Board to individuals or firms to practice public acco unting in
this state, 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 activities of a registrant,
an individual granted practice privileges under
Section 15.12A of this title, or a firm exempt from
the permit and registration requireme nts 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 knowl edge, science, and practice of
accounting and audit ing, taxation and management
advisory services and is qualified to render such
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professional services as a certified public accountant
or public accountant, and performs the following:
(1) maintains an office for the transaction of
business as a certified public accountant or
public accountant,
(2) offers to prospective clients to perf orm or who
does perform on behalf of clients professional
services that involve or require an audit,
verification, investigat ion, certification,
presentation, or review of fi nancial transactions
and accounting records or an attestation
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 other financial,
accounting and related schedules, exhibits,
statements, or reports which are to be used for
publication or for the purpos e of obtaining
credit, or for filing with a court of law or with
any governmental agency, or for any other
purpose,
(4) generally or incidentall y to the work described
herein, renders professional services to clients
in any or all matters relating to accou nting
procedure and to the recording, presentation, or
certification of financial information or data,
(5) keeps books, or prepares trial balan ces,
financial statements, or reports, all as a part
of bookkeeping services for clie nts,
(6) prepares or signs as the tax preparer, tax
returns for clients, consults with clients on tax
matters, conducts studi es for clients on tax
matters and prepares re ports for clients on tax
matters, unless the services are uncompensated
and are limited solely to the registrant ’s, or
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the registrant’s spouse’s lineal and collateral
heirs,
(7) prepares personal financial or in vestment plans
or provides to clients produc ts or services of
others in implementation of personal financial or
investment plans, or
(8) provides management ad visory services to clients.
b. 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, an individ ual or firm
not holding a certificate, license or permit shall not
be deemed to be engaged in the practice of public
accounting if the individual or firm does not hold
itself out, solicit, or advertise for clients using
the certified public accountant or p ublic 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 a s having been
prepared by a certified public accountant or
public accountant. Except for an indi vidual
granted practice privileges under Section 15.12A
of this title or a firm exempt from the permit
and registration requiremen ts under Section
15.15C of this title, nonregistrants may use the
following disclaimer language in connection with
financial statements and be in compliance with
the Oklahoma Accountancy Act: “I (we) have not
audited, examined or reviewed the accompanying
financial statements and acc ordingly do not
express an opinion or any other form of assurance
on them.”,
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(2) 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 clie nts on tax
matters,
(3) prepares personal financial or investment plans
or provides to clients pr oducts or services of
others in implementation of personal financial or
investment plans, or
(4) provides management advisory s ervices to clients.
c. Only permit holders, individuals granted practice
privileges under Section 15.12A of this title, or
firms exempt from the permit and registrati on
requirements under Section 15.15C of this title may
render or offer to render any atte st 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). Thi s restriction shall not prohibit
any act of a public official or pub lic 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 pr acticing public
accounting within the meaning of this section solely
by displaying an Oklahoma CPA certificate or a PA
license in an office, identifying himself or herself
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, publication s directed to clients or
potential clients, financial or t ax documents of a
client, performance of any attest service or issu ance
of a report constitutes the p ractice of public
accounting and requires a permit, practice privileges
under Section 15.12A of t his title, or an exemption
ENR. S. B. NO. 170 Page 10
from the permit and registratio n requirements under
Section 15.15C of this title;
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 permit the
reviewer to assess compliance with all applicable professional
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 this state;
38. “Professional” means arising out of or relat ed 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 institutio ns the profession serves;
41. “Qualification applicant” means an individual who has made
application to the Board to qualify to become a candidate for
examination;
42. “Registrant” means a CPA, PA, or firm compos ed of certified
public accountants or publ ic accountants or combination of both
currently registered with the Board pursuant to the authori ty of the
Oklahoma Accountancy Act;
43. “Report”, when used with reference to any attest or
compilation service, me ans an opinion, report or other form of
language that states or implies assurance as to the reliability of
the attested information or compl ied financial statements, and that
also includes or is acc ompanied 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
ENR. S. B. NO. 170 Page 11
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” 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 reliabili ty of
the attested information or compiled financi al 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 such assura nce 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 report sha ll not refer
to “audit”, “audited”, “exam”, “examined”, “review” or “reviewed”,
nor use the language “in accordance with standards established by
the American Institute of Certified Public Accountants ” or successor
of said such entity, or governmental agen cy approved by the Board,
except for the Internal Reven ue Service. Except for an individual
granted practice privileges under Section 15.12A of this ti tle or a
firm exempt from the permit and registration requ irements under
Section 15.15C of this title, n onregistrants 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 accom panying financial statements
and accordingly do not express an opinion or any other form of
assurance on them.”;
44. “Representation” means any oral or written communication
including but not limit ed to the use of title or legends on
letterheads, business cards, office doors, advertisements, and
listings conveying the fact that an individual or entity h olds a
certificate, license or permit;
45. “Review”, when used with reference to financial statem ents,
means a registrant or 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
performing inquiry and analytical procedures that pr ovide the
registrant with a reasonable basis for expressin g limited assurance
that there are no materi al modifications tha t should be made to the
statements in order for them to be in conformity with generally
ENR. S. B. NO. 170 Page 12
accepted accounting principles or, if applicab le, with another
comprehensive basis of accounting; and
46. “Substantial equivalency ” is a determination by the
Oklahoma Accountancy Board or its designee that:
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 requirement s
contained in the AICPA/NASBA Un iform Accountancy Act,
or
b. that an individual certified public accountant’s or
public accountant’s education, examination and
experience qualifications are c omparable 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 the Oklahoma
Accountancy Act, the Board or its designee shall take into account
the qualifications wi thout regard to the sequ ence in which
experience, education, or examination requirements were attained.
SECTION 2. This act shall become e ffective November 1, 2023.
ENR. S. B. NO. 170 Page 13
Passed the Senate the 20th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the 17th day of April, 2023.
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: _______________________________ __