Client: means the person who retains a licensee for the performance of one or more of the services included in the definition of the practice of public accountancy. See Utah Code 58-26a-102
Compilation: means providing a service to be performed in accordance with Statements on Standards for Accounting and Review Services (SSARS) that is presenting, in the form of financial statements, information that is the representation of management or owners, without undertaking to express any assurance on the statements. See Utah Code 58-26a-102
Dependent: A person dependent for support upon another.
Licensee: means the holder of a current valid license issued under this chapter. See Utah Code 58-26a-102
Peer review: means a board approved study, appraisal, or review of one or more aspects of the attest and compilation services rendered by a licensee in the practice of public accounting, performed by a licensee holding an active license in this or another state who is not affiliated with the licensee being reviewed. See Utah Code 58-26a-102
Report: when used with reference to financial statements, means:
(i)
an opinion, report, or other form of language that:
(A)
states or implies assurance as to the reliability of the attested information or compiled financial statements; or
(B)
implies that the person or firm issuing the report has special knowledge or competence in accounting or auditing and specifically includes compilations and reviews; such an 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 a public accountant or auditor, or from the language of the report itself; or
(ii)
any disclaimer of opinion when it is conventionally understood to imply any positive assurance as to the reliability of the attested information or compiled financial statements referred to or language suggesting special competence on the part of the person or firm issuing such language; and the report includes any other form of language that is conventionally understood to imply such assurance or such special knowledge or competence. See Utah Code 58-26a-102
undertaking an engagement when the licensee knows or should know that the licensee could not reasonably expect to complete it with professional competence;
(b)
making unauthorized disclosures of confidential information obtained in the practice of public accountancy;
(c)
engaging in any business or activity that creates a conflict of interest with a licensee’s practice in the profession when the licensee knows or should know that it is a conflict of interest and the licensee does not fully disclose the conflict of interest in writing to all affected parties;
(d)
failing to meet the requirements for continuing professional education or peer review required under this chapter; or
(e)
issuing a report on financial statements of a client, other than a report in which a lack of independence is disclosed, or performing an attest engagement subject to the attestation standards of the American Institute of Certified Public Accountants when the licensee is not independent, in fact and appearance, to the client.
(2)
(a)
A licensee may not, for a commission, recommend or refer to a client a product or service, or for a commission recommend or refer a product or service to be supplied by a client, or receive a commission, when the licensee also performs for that client:
(i)
an audit or review of a financial statement;
(ii)
a compilation of a financial statement when the licensee expects, or reasonably might expect, that a third party will use the financial statement and the licensee’s compilation report does not disclose a lack of independence; or
(iii)
an examination of prospective financial information.
(b)
The prohibition under Subsection (2)(a) applies during:
(i)
the period in which the licensee is engaged to perform any of the services listed in Subsection (2)(a); and
(ii)
the period covered by any historical financial statements involved in any such listed services.
(c)
A licensee who is not prohibited under Subsection (2)(a) from performing services or receiving a commission and who is paid or expects to be paid a commission shall disclose that fact to any person or entity to whom the licensee recommends or refers a product or service to which the commission relates.
(d)
A licensee who accepts a referral fee for recommending or referring a service of a licensee to a person or entity or who pays a referral fee to obtain a client shall disclose the acceptance or payment to the client.
(3)
(a)
A licensee may not:
(i)
perform for a contingent fee a professional service for, or receive a contingent fee from a client for whom the licensee or the licensee’s firm performs:
(A)
an audit or review of a financial statement;
(B)
a compilation of a financial statement when the licensee expects, or reasonably might expect, that a third party will use the financial statement and the licensee’s compilation report does not disclose a lack of independence; or
(C)
an examination of prospective financial information; or
(ii)
prepare an original or amended tax return or claim for a tax refund for a contingent fee for a client.
(b)
The prohibition in Subsection (3)(a) applies during:
(i)
the period in which the licensee is engaged to perform any of the services listed in Subsection (3)(a); and
(ii)
the period covered by any historical financial statements involved in the listed services.
(c)
Except as stated in Subsections (3)(d) and (e), a contingent fee is a fee established for the performance of a service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of the service.
(d)
Solely for the purposes of this Subsection (3), fees are not regarded as being contingent if fixed by courts or other public authorities, or in tax matters, if determined based on the results of judicial proceedings or the findings of a governmental agency.
(e)
A licensee’s fee may vary depending, for example, on the complexity of service rendered.
