§ 609.033. Accountants.
(a) Qualification of accountants.
(1) The Department will not recognize a person:
(i) As a certified public accountant who is not registered and in good standing under the laws of the place of the person’s residence or principal office.
(ii) As a public accountant who is not in good standing and entitled to practice under the laws of the place of the individual’s residence or principal office.
(2) The Department will not recognize a certified public accountant or public accountant as independent who is not in fact independent. For example, an accountant will be considered not independent with respect to a person, or any of its parents, its subsidiaries or other affiliates in which either of the following applies:
(i) During the period of the accountant’s professional engagement to examine the financial statements being reported on or at the date of his report, the accountant or accountant’s firm or a firm member had, or was committed to acquire, a direct financial interest or a material indirect financial interest.
(ii) During the period of the accountant’s professional engagement to examine the financial statements being reported on, at the date of his report or during the period covered by the financial statements, the accountant or accountant’s firm or a firm member was connected as a promoter, underwriter, voting trustee, director, officer or employee.
(3) A firm will be considered independent in regard to a particular person if a former officer or employee of the person is employed by the firm and the individual has completely disassociated himself from the person and its affiliates and does not participate in auditing financial statements of the person or its affiliates covering any period of the individual’s employment by the person.
(4) In determining whether an accountant is in fact independent with respect to a particular registrant, the Department will give appropriate consideration to all relevant circumstances including evidence bearing on all relationships between the accountant and the registrant or any affiliate of the registrant, and will not confine itself to the relationships existing in connection with the filing of reports with the Department.
(b) Accountant’s reports.
(1) Auditor’s report format. The format of the auditor’s report must be in accordance with the reporting standards established by generally accepted auditing standards including Statements on Auditing Standards promulgated by the Auditing Standards Board of the American Institute of Certified Public Accountants or the auditing standards promulgated by the Public Company Accounting Oversight Board as required under law.
(2) Accountant’s review report format. The format of the accountant’s review report must be in accordance with the reporting standards established by Statements on Standards for Attestation Engagements promulgated by the American Institute of Certified Public Accountants.
(3) Accountant’s compilation report format. The format of the accountant’s compilation report must be in accordance with the reporting standards established by Statements on Standards for Attestation Engagements promulgated by the American Institute of Certified Public Accountants.
(4) Certain accountant’s reports. Auditor’s reports, accountant’s review reports or accountant’s compilation reports issued by public accountants are not permitted for reports required under § 609.034 (relating to financial statements).
Authority The provisions of this § 609.033 issued under the Pennsylvania Securities Act of 1972 (70 P.S. § § 1-101—1-704); amended under section 202.C of the Department of Banking and Securities Code (71 P.S. § 733-202.C); section 609(a) of the Pennsylvania Securities Act of 1972 (70 P.S. § 1-609(a)); and section 9(b) of the Takeover Disclosure Law (70 P.S. § 79(b)).
Source The provisions of this § 609.033 adopted April 25, 1975, effective April 26, 1975, 5 Pa.B. 980; amended October 1, 1982, effective October 2, 1982, 12 Pa.B. 3500; amended January 8, 1999, effective January 9, 1999, 29 Pa.B. 202; transferred and renumbered from 64 Pa. Code § 609.033, December 14, 2012, effective December 15, 2012, 42 Pa.B. 7533; amended January 12, 2018, effective January 13, 2018, 48 Pa.B. 389. Immediately preceding text appears at serial pages (364849) to (364851).
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