1-321.   Definitions.When used in chapter 1 of the Kansas Statutes Annotated, andamendments thereto, the following terms shall have the meaningsindicated:

      (a)   "Actively participate" means participation that is continuous as one'sprimaryoccupation.

      (b)   "Affiliated entity" means one that provides services to the CPA firm orprovides services to the public that are complementary to those provided by theCPA 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 thestatements on auditing standards (SAS);

      (2)   any audit to be performed in accordance with the Kansas municipal auditguide;

      (3)   any review of a financial statement to be performed in accordance withthe statements on standards for accounting and review services (SSARS);

      (4)   any engagement, except a compilation, to be performed in accordance withthe statements on standards for attestation engagements (SSAE); and

      (5)   any engagement to be performed in accordance with the standards of thePCAOB.

      (e)   "Board" means the Kansas board of accountancy established under K.S.A.1-201 and amendments thereto.

      (f)   "Certificate" means a certificate as a certified public accountant issuedunder K.S.A. 1-302 and amendments thereto, or a certificate as a certifiedpublicaccountant issued after examination under the law of any other state.

      (g)   "Client" means a person or entity that agrees with a permit holder toreceive any professional service.

      (h)   "Compilation" means providing a service to be performed in accordancewith the statements on standards for accounting and review services (SSARS)or the statements on standards forattestation engagements (SSAE)the objective of which is to presentin the form of financial statements, information that is therepresentation of management or owners, or both, without undertaking toexpress any assurance on the statements.

      (i)   "Directed" means the location to which the engagement letter is sent.

      (j)   "Equity capital" means (1) capital stock, capitalaccounts,capital contributions or undistributed earnings of a registered firm asreferred to in K.S.A. 1-308 and amendments thereto; and (2) loans and advancesto a registered firm made or held by its owners. "Equity capital" does notinclude an interest in bonuses, profit sharing plans, defined benefit plansor loans to a registered firm from banks, financial institutions or other thirdparties that do not actively participate in such registered firm.

      (k)   "Firm" means:

      (1)   An individual who operates as a sole practitioner and who issues reportssubject to peer review; or

      (2)   any business organization including, but not limited to, a generalpartnership, limited liability partnership, general corporation, professionalcorporation or limited liability company.

      (l)   "Good moral character" means lack of a history ofprofessional dishonestyor other felonious acts.

      (m)   "Home office" means the location specified by the client asthe address to which a service described in subsection (d) of K.S.A. 1-322, andamendments thereto, is directed.

      (n)   "Active license" means a certificate or a permit topractice issued byanother state that is currently in force and authorizes the holder to practicecertified public accountancy.

      (o)   "Licensee" means the holder of a certificate or apermit to practiceissued by this state or another state.

      (p)   "Manager" means a manager of a limited liabilitycompany.

      (q)   "Member" means a member of a limited liability company.

      (r)   "NASBA" means the national association of state boardsof accountancy.

      (s)   "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 andassuranceservices, except for attest services;

      (4)   financial planning;

      (5)   valuation services; and

      (6)   any other financial service not included in thestatements on auditingstandards, the statements on standards for accounting and review services, thestandards for attestation engagements as developed by the American institute ofcertified public accountants or as defined by the board.

      (t)   "PCAOB" means the public company accounting oversightboard created by the Sarbanes-Oxley act of 2002.

      (u)   "Practice of certified public accountancy" meansperforming or offeringto perform attest or nonattest services for the public while using thedesignation "certified public accountant" or CPA inconjunction with such services.

      (v)   "Practice of public accountancy" means performing oroffering to performattest or nonattest services for the public by a person not required to have apermit to practice or a firm not required to register with the board.

      (w)   "Principal place of business" means the office locationdesignated by the licensee for purposes of substantial equivalency andreciprocity.

      (x)   "Professional" means arising out of or related to thespecializedknowledge or skills associated with CPAs.

      (y)   "Report," when used with reference to financialstatements, means anopinion, report or other form of language that states or implies assurance asthe reliability of any financial statements and that also includes or isaccompanied by any statement or implication that the person or firm issuing ithas special knowledge or competence in accounting or auditing.Such a statement or implication of special knowledge or competence may arisefrom use, by the issuer of the report, of names or titles indicating that theperson or firm is an accountant or auditor or from the language of the reportitself. The termreport includes any form of language which disclaims an opinion when suchform of language is conventionally understood to imply any positive assuranceas to the reliability of the financial statements referred to or specialcompetence on the part of the person or firm issuing such language; and itincludes any other form of language that is conventionally understood to implysuch assurance or such special knowledge or competence.

      (z)   "Rule" means any rule or regulation adopted by theboard.

      (aa)   "State" means any state of the United States, theDistrict of Columbia,Puerto Rico, the U.S. Virgin Islands and Guam; except that "this state" meansthe state of Kansas.

      (bb)   "Substantial equivalency" is a determination by theboard of accountancyor its designee that the education, examination and experience requirementscontained in the statutes and administrative rules of another jurisdiction arecomparable to, or exceed the education, examination and experience requirementscontained in the uniform accountancy act or that an individual CPA's education,examination and experience qualifications are comparable to or exceed theeducation, examination and experience requirements contained in the uniformaccountancy act.In ascertaining substantial equivalency as used in this act, the board shalltake into account the qualifications without regard to the sequence in whichexperience, education or examination requirements were attained.

      (cc)   "Uniform accountancy act" means model legislationissued by the AICPA andNASBA in existence on July 1, 2007.

      History:   L. 2000, ch. 81, § 1;L. 2001, ch. 120, § 5;L. 2007, ch. 97, § 10;L. 2009, ch. 38, § 12; Apr. 2.