74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 498
A-Engrossed
House Bill 2079
Ordered by the Senate April 3
Including Senate Amendments dated April 3
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Oregon Board of Accountancy)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Requires Oregon Board of Accountancy to establish by rule
requirements for public accountancy experience for person taking
examination for licensure as public accountant. Modifies
requirements for admission to examination for certified public
accountant certificate. Authorizes board to grant credit to
applicant for licensure who has received passing grade in one or
more sections of examination given in another state.
A BILL FOR AN ACT
Relating to regulation of accountancy; amending ORS 673.010,
673.040, 673.050, 673.060, 673.075 and 673.100.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 673.010 is amended to read:
673.010. As used in ORS 673.010 to 673.457:
(1) 'Attest,' 'attesting' or 'attestation' means the opinion of
a licensee as to the reliability or fairness of information that
is used for guidance in the financial transactions of, accounting
for or assessing the status or performance of, commercial and
noncommercial enterprises, whether public or private, following
the completion of an audit, in accordance with generally accepted
accounting and auditing standards. The board by rule shall
further define what constitutes attestation services in
conformance, to the extent possible, with professional standards,
including but not limited to the Statements on Auditing Standards
(SAS) for audits or other engagements, the Statement of Standards
for Accounting and Review Services (SSARS) for the review of
financial statements and the Statements on Standards for
Attestation Engagements (SSAE) for examinations of prospective
financial information.
(2) 'Board' means the Oregon Board of Accountancy created by
ORS 673.410.
(3) 'Business organization' means any form of business
organization authorized by law, including but not limited to a
proprietorship, partnership, corporation, limited liability
company, limited liability partnership or professional
corporation.
(4) 'Certificate' means a certificate of certified public
accountant issued under ORS 673.040.
(5) 'Client' means a person who agrees with a licensee to
receive any professional service from the licensee.
(6) 'Commission' means money or other consideration recognized
as a commission under rules adopted by the board pursuant to ORS
673.012.
(7) 'Compilation' means those services as defined by the board
by rule.
(8) 'Contingent fee' means a fee established for the
performance of any professional service and directly or
indirectly paid to a licensee 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 such service. The board
by rule may further define 'contingent fee.' A fee is not
contingent if the fee:
(a) Is fixed by courts or other public authorities; or
(b) In tax matters, is determined based on the results of
judicial proceedings or the findings of governmental agencies.
(9) 'License' means:
(a) A certificate, permit or registration, or a license issued
under ORS 673.100, enabling the holder thereof to practice public
accountancy in this state; or
(b) A certificate, permit, registration or other authorization
issued by a jurisdiction outside this state enabling the holder
thereof to practice public accountancy in that jurisdiction.
(10) 'Licensee' means the holder of a license under subsection
(9)(a) of this section.
(11) 'Manager' means a manager of a limited liability company.
(12) 'Member' means a member of a limited liability company.
(13) 'Peer review' means a study, appraisal or review of one or
more aspects of the public accountancy work of a holder of a
permit under ORS 673.150 or of a registered business organization
that performs attestation or compilation services that is
conducted by:
(a) A certified public accountant who holds an active permit
issued under ORS 673.150 or an active license issued by the
licensing authority for the practice of public accountancy in
another state and who is independent of the permit holder or
registered business organization being reviewed; or
(b) A public accountant who holds an active permit issued under
ORS 673.150 and who is independent of the permit holder or
registered business organization being reviewed.
(14) 'Permit' means a permit to practice public accountancy
issued under ORS 673.150.
(15) 'Professional' means arising out of or related to the
specialized knowledge or skills associated with certified public
accountants and public accountants.
(16) 'Public accountant' means a public accountant licensed
under ORS 673.100.
(17) 'Referral fee' means a fee recognized as a referral fee
under rules adopted by the board pursuant to ORS 673.012.
(18) 'Registration' means the authority issued under ORS
673.160 by the Oregon Board of Accountancy to a business
organization to practice public accountancy in this state.
(19) 'Report,' when used with reference to attestation or
compilation services, means an opinion or other form of written
language that states or implies assurance as to the reliability
of any financial statements and that also includes or is
accompanied by any statement or implication that the person
issuing the report has special knowledge or competence in public
accountancy. Such a statement or implication of special knowledge
or competence may arise from use by the issuer of the report of
names or titles indicating that the issuer is a public
accountancy professional or organization or may arise from the
language of the report itself.
(a) 'Report' includes any form of written language that:
(A) Disclaims an opinion when the form of language implies any
positive assurance as to the reliability of the financial
statements referred to or special knowledge or competence on the
part of the person issuing the language;
(B) Implies any positive assurance as to the reliability of the
financial statements referred to or special knowledge or
competence on the part of the person issuing the language; or
(C) Relates to the financial affairs of a person and that is
conventionally used by licensees in reports or financial
statements.
(b) 'Report' does not include:
(A) The following statement signed by a person who does not
hold a certificate, license or permit under ORS 673.010 to
673.457 as long as the statement is not accompanied by any
wording indicating the person is an accountant or auditor or any
other language prohibited by ORS 673.310 or 673.320:
_________________________________________________________________
The accompanying balance sheet (or __) of XYZ Company as of
(date), and the related statements of income (or retained
earnings or cash flow) for the year then ended have been prepared
by me (us).
The information presented in these financial statements is the
representation of management (owners).
_________________________________________________________________
(B) Any other financial statements or reports that are not and
do not purport to be in compliance with national standards,
including but not limited to Statements of Standards for
Accounting and Review Services (SSARS) and Statements on
Standards for Attestation Engagements (SSAE) adopted by the board
by rule, when the statements or reports are issued by persons not
otherwise subject to regulation by the board under ORS 673.010 to
673.457.
(20) 'State' means any state, territory or insular possession
of the United States, and the District of Columbia.
(21) 'Substantial equivalency' means a determination by the
National Qualification Appraisal Service of the National
Association of State Boards of Accountancy that:
(a) The education, examination and experience requirements
contained in the statutes and administrative rules of another
jurisdiction are equivalent to or exceed the education,
examination and experience requirements { - of the Uniform
Accountancy Act - } { + established under ORS 673.040, 673.050
and 673.060 and adopted by the board by rule under ORS
670.310 + }; or
(b) An individual's education, examination and experience
qualifications are equivalent to or exceed the education,
examination and experience requirements { - of the Uniform
Accountancy Act - } { + established under ORS 673.040, 673.050
and 673.060 and adopted by the board by rule under ORS
670.310 + }.
SECTION 2. ORS 673.040 is amended to read:
673.040. (1) A certificate of certified public accountant shall
be { - granted - } { + issued + } to any applicant who meets
the requirements of this section and ORS 673.050 and 673.060 and
who passes an examination on the code of professional ethics
adopted by the Oregon Board of Accountancy.
(2) An applicant for a certificate shall show that after
meeting the eligibility requirements for the examination required
by ORS 673.050, the applicant has had one year of experience,
meeting requirements prescribed by the board by rule, under the
direct supervision of a public accountant, certified public
accountant or chartered accountant who:
(a) Is licensed and in good standing in this state or another
jurisdiction; and
(b) Has been licensed for a minimum period of time set by the
board by rule.
(3) The board may issue a certificate to a holder in good
standing of a license of certified public accountant { + issued
by another state + } or { + of a + } chartered accountant
{ + certificate + } issued { - by another state or - } by a
foreign country { + recognized by the board + } upon a showing
that the holder meets requirements that are substantially
equivalent to the education, experience and other requirements
that must be satisfied for the issuance of a certificate of
certified public accountant under ORS 673.010 to 673.457.
(4) The board shall charge a fee for each application for
issuance of a certificate under this section in an amount
prescribed by the board by rule.
(5) The board by rule may prescribe:
(a) Information required of applicants regarding the practice
of public accountancy outside this state;
(b) Information required of licensees regarding changes in the
ability or authority of the licensee to practice public
accountancy; and
(c) A period of time within which applicants must satisfy the
requirements of this section and ORS 673.050 and 673.060.
(6) Any certified public accountant may also be known as a '
public accountant. '
SECTION 3. ORS 673.050 is amended to read:
673.050. (1) Except as provided in subsection (2) of this
section, a candidate for admission to the examination for a
certified public accountant certificate shall { - : - }
{ - (a) - } present satisfactory evidence of graduation with
a baccalaureate or higher degree from a college or university
that is accredited by one of the six regional accrediting
associations or by another accrediting body that is recognized by
the Oregon Board of Accountancy, and shall have completed 150 or
more semester hours or 225 or more quarter hours or the
equivalent thereof, including courses in the study of accounting,
business, economics, finance, written and oral communications and
other subjects as determined by the board as appropriate for the
accountancy profession { - ; or - }
{ - (b) Be a public accountant who received a license under
ORS 673.100 prior to January 1, 2000 - } .
(2) A person may apply to take the examination for the
certificate of certified public accountant { - in order to pass
the sections described in ORS 673.100 on which a passing grade
must be received before a license as a public accountant may be
issued - } { + for the purpose of obtaining a license as a
public accountant under ORS 673.100 + } if the person presents
satisfactory evidence of graduation from a high school with a
four-year course or of having acquired an equivalent education,
and has { - had - } { + completed + } two years of public
accountancy experience or the equivalent
{ - satisfactory to the board - } { + that meets the
experience requirements established by the board by rule + }.
SECTION 4. ORS 673.060 is amended to read:
673.060. (1) A person must pass an examination as a condition
of the { - grant - } { + issuance + } of a certificate of
certified public accountant { + under ORS 673.040 or of a
license as a public accountant under ORS 673.100 + } by the
Oregon Board of Accountancy. The examination shall test the
person's knowledge of the subjects of accounting and auditing and
other related subjects as the board may determine by rule. The
board may contract with a testing service to administer the
examination and may contract with any organization, governmental
or private, for examination material and services.
(2) A person must pass all sections of the examination in order
to qualify for a certificate of certified public accountant and
must pass the sections of the examination described in ORS
673.100 (1)(c) to qualify for a license as a public accountant.
(3) The board shall charge each person who applies to take the
examination a nonrefundable application fee in an amount
determined by the board. The person shall pay the application fee
at the time of the application.
(4) If the board contracts with a testing service to administer
the examination described in subsection (1) of this section, the
testing service shall collect from each person taking the
examination all fees that the testing service charges for
administering the examination.
SECTION 5. ORS 673.075 is amended to read:
673.075. (1) The Oregon Board of Accountancy may, in accordance
with its rules, grant credit to an applicant { - who has
successfully completed an examination given by - } { + for one
or more sections of an examination for which the applicant
received passing grades from + } the licensing authority in any
other state.
{ - The board may grant credit under this subsection if the
applicant has successfully completed an examination in any two or
more subjects described in ORS 673.060 or required by the board
to be part of the examination in this state. - }
(2) Any examination for which credit is granted an applicant
under subsection (1) of this section shall be substantially
equivalent to examination requirements described in ORS 673.060.
SECTION 6. ORS 673.100 is amended to read:
673.100. (1) The Oregon Board of Accountancy shall issue a
license as a public accountant to a person who applies for the
license and who:
(a) Passes an examination on the code of professional ethics
adopted by the board;
(b) Meets the requirements of ORS 673.050 for admission to the
examination for the certificate of certified public accountant;
(c) Takes the examination for the certificate of certified
public accountant pursuant to ORS 673.060 and receives a passing
grade in those sections of the examination { - , excluding the
auditing section, - } that the board { - by rule requires an
applicant for a license as a public accountant to pass - }
{ + may require by rule + }; and
(d) Has { + at least + } one year of public accountancy
experience or the equivalent satisfactory to the board.
(2) An applicant for a license as a public accountant must make
application on a form provided by the board. The board shall
charge each applicant a fee for application in an amount
determined by the board by rule.
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