1. A. In this chapter, the following terms have the meanings indicated:

   1. (1) “Client” means the person that retains a licensee for the performance of professional services.

   2. (2) Contingent Fee.

      1. (a) “Contingent fee” means a fee established for the performance of any 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.

      2. (b) “Contingent fee” does not apply to professional services:

         1. (i) Involving tax matters, if the fee is determined based on the results of judicial proceedings or the findings of governmental agencies; and
         2. (ii) For which the fees are to be fixed by the courts or other public authorities.
   3. (3) “Financial statements” means statements and related footnotes that purport to show actual or anticipated financial position which relates to a point in time or results of operations, cash flow, or changes in financial position which relate to a period of time, on the basis of generally accepted accounting principles or another comprehensive basis of accounting. The term includes specific elements, accounts, or items of the financial statements, but does not include incidental financial data included in management advisory services reports to support recommendations to a client, nor does it include tax returns and supporting schedules.

   4. (4) “Management course” means a course in business-related subjects of 3 semester hours taken to fulfill the requirement for a major in accounting and includes the study of:

      1. (a) Controlling;
      2. (b) Decision making;
      3. (c) Leadership;
      4. (d) Organization; and
      5. (e) Planning.

   5. (5) Other Compensation.

      1. (a) “Other compensation” means compensation received by a licensee who is engaged in the practice of certified public accountancy other than for the performance of professional services, including compensation for the sale of products other than the work product of the licensee, or for referral of products or services of others.
      2. (b) “Other compensation” does not include gifts valued at $100 or less in a single calendar year.

   6. (6) “Practice of certified public accountancy” means to perform any of the following accountancy services:

      1. (a) Conducting an audit or an examination of financial statements; or
      2. (b) Providing a written certificate or opinion as to the correctness of the information or the fairness of the presentation of the information in any financial statement, schedule, report or exhibit.

   7. (7) Practice of Public Accountancy.

      1. (a) “Practice of public accountancy” means the offering to perform or the performance by a person while holding out to the public as a licensee, for a client or potential client:

         1. (i) Services involving the use of accounting or auditing skills, including the issuance of reports on financial statements;
         2. (ii) One or more types of management advisory services, consulting, or financial planning services; or
         3. (iii) The preparation of tax returns or the furnishing of advice on tax matters.
      2. (b) “Practice of public accountancy” includes the practice of certified public accountancy.
   8. (8) “Professional services” means any services performed or offered to be performed by a licensed certified public accountant or permit holder for a client in the course of the practice of public accountancy.

   9. (9) “U.S. business law” means a course in accounting education of 3 or more semester hours taken to fulfill the requirement for a major in accounting, and includes the analysis and study of the law regarding:

      1. (a) Agency;
      2. (b) Contracts;
      3. (c) Employment;
      4. (d) Insurance;
      5. (e) Negotiable instruments;
      6. (f) Personal or real property; and
      7. (g) Sales.

   10. (10) Written Certificate or Opinion as to the Correctness of the Financial Statement or as to the Fairness of the Presentation.

       1. (a) “Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation” means an opinion, report, or other form of 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 or firm issuing the written certificate or opinion has special knowledge or competence in accounting or auditing. This 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 person is a certified public accountant or auditor, or may arise from the language of the certificate or opinion itself.

       2. (b) “Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation” includes any:

          1. (i) Form of language which expressly disclaims an opinion when that form of language is conventionally understood to imply any positive assurance as to the reliability of the financial statements referred to; and
          2. (ii) Other form of language that is conventionally understood to imply positive assurance or special knowledge or competence.
       3. (c) “Written certificate or opinion as to the correctness of the financial statement or as to the fairness of the presentation” may include special competence on the part of the person or firm issuing the language in this subsection.
2. B. The Board shall hold an annual meeting in July of each year or at such other time as the members of the Board may vote upon, for the purpose of electing officers. Monthly meetings may be held on dates mutually convenient to the members of the Board. Special meetings shall be held, after reasonable notice, at the call of the Chairman or of any two Board members. Notice of all meetings and hearings shall be published in the Maryland Register.
3. C. The Chairman shall preside at all meetings and shall perform such duties as the Board may direct. At any meeting at which the Chairman is absent, the Secretary-Treasurer shall act in the Chairman's place.

Authority: Business Occupations and Professions Article, §§2-102, 2-207, 2-209, 2-304—2-307, 2-309, 2-311, 2-313, 2-315, 2-410, and 2-416,
Annotated Code of Maryland

Effective date:

Regulations .01—.03 effective May 2, 1972

Regulations .01—.03 amended effective May 12, 1976 (3:10 Md. R. 529)

Regulations .04—.06 adopted effective May 12, 1976 (3:10 Md. R. 529)

Chapter revised effective August 25, 1978 (5:17 Md. R. 1329)

Regulation .01A amended effective January 26, 1987 (14:2 Md. R. 128); September 19, 1988 (15:19 Md. R. 2246)

Regulation .01D amended effective January 26, 1987 (14:2 Md. R. 128)

Regulation .02 amended effective June 16, 1986 (13:12 Md. R. 1374)

Regulation .02A amended effective October 25, 1982 (9:21 Md. R. 2105)

Regulation .02B amended effective April 2, 1990 (17:6 Md. R. 740)

Regulation .02D amended effective November 30, 1987 (14:24 Md. R. 2554); September 19, 1988 (15:19 Md. R. 2247)

Regulation .03C amended effective January 26, 1987 (14:2 Md. R. 128)

Regulation .03D amended effective October 5, 1979 (6:20 Md. R. 1628); December 20, 1982 (9:25 Md. R. 2479); January 26, 1987 (14:2 Md. R. 128); September 19, 1988 (15:19 Md. R. 2246)

Regulation .03E amended effective November 3, 1986 (13:22 Md. R. 2397); January 26, 1987 (14:2 Md. R. 128); May 4, 1987 (14:9 Md. R. 1080)

Regulation .03G amended effective January 26, 1987 (14:2 Md. R. 128)

Regulation .03H amended effective January 26, 1987 (14:2 Md. R. 128); September 19, 1988 (15:19 Md. R. 2247)

Regulation .03K adopted effective November 3, 1978 (5:22 Md. R. 1672)

Regulation .03K amended effective January 26, 1987 (14:2 Md. R. 128)

Regulation .04A and B amended effective April 11, 1983 (10:7 Md. R. 633); January 26, 1987 (14:2 Md. R. 128)

Regulation .04D amended effective December 20, 1982 (9:25 Md. R. 2479); January 26, 1987 (14:2 Md. R. 128); March 23, 1987 (14:6 Md. R. 714)

Regulation .05A, B, O amended effective January 26, 1987 (14:2 Md. R. 128)

Regulation .06A amended effective January 26, 1987 (14:2 Md. R. 128)

Regulation .07 adopted effective October 24, 1983 (10:21 Md. R. 1901)

Regulation .07 amended effective January 26, 1987 (14:2 Md. R. 128)

Regulation .08 adopted effective March 23, 1987 (14:6 Md. R. 714)

Regulation .08A, B amended effective November 2, 1987 (14:22 Md. R. 2339)

Regulation .08M adopted effective September 19, 1988 (15:19 Md. R. 2247)

Chapter revised effective September 28, 1992 (19:19 Md. R. 1705)

Regulation .01A amended effective March 20, 2000 (27:5 Md. R. 583); December 31, 2007 (34:26 Md. R. 2261)

Regulation .02 amended effective August 28, 1995 (22:17 Md. R. 1317)

Regulation .02A, C amended and E, F adopted effective August 15, 1994 (21:16 Md. R. 1383)

Regulation .02A, D, F, G amended effective September 9, 1996 (23:18 Md. R. 1316)

Regulation .02B, C amended effective June 29, 1998 (25:13 Md. R. 993)

Regulation .02 repealed effective March 29, 2004 (31:6 Md. R. 508)

Regulation .03A, C amended as an emergency provision effective January 1, 2004 (31:3 Md. R. 206)

Regulation .03C amended as an emergency provision effective May 15, 1998 (25:12 Md. R. 943); amended permanently effective October 5, 1998 (25:20 Md. R. 1528)

Regulation .03G adopted effective April 14, 2003 (30:7 Md. R. 487)

Regulation .03H adopted as an emergency provision effective August 1, 2003 (30:20 Md. R. 1445); emergency status extended at 31:1 Md. R. 28

Regulation .03 repealed effective March 29, 2004 (31:6 Md. R. 508)

Regulation .04A amended effective May 9, 1994 (21:9 Md. R. 750)

Regulation .04 repealed effective March 29, 2004 (31:6 Md. R. 508)

Regulation .05A amended effective July 19, 1993 (20:14 Md. R. 1168); December 28, 1998 (25:26 Md. R. 1921); May 9, 2005 (32:9 Md. R. 848); December 28, 2009 (36:26 Md. R. 1994)

Regulation .05B amended effective May 9, 2005 (32:9 Md. R. 848)

Regulation .05C adopted effective May 9, 2005 (32:9 Md. R. 848)

Regulation .05D adopted effective December 28, 2009 (36:26 Md. R. 1994)

Regulation .06C amended effective March 20, 2000 (27:5 Md. R. 583); December 31, 2007 (34:26 Md. R. 2261)

Regulation .06G amended effective October 19, 1998 (25:21 Md. R. 1573)

Regulation .06I amended effective October 10, 1994 (21:20 Md. R. 1732); December 28, 1998 (25:26 Md. R. 1921); January 28, 2019 (46:2 Md. R. 52)

Regulation .06J adopted effective April 28, 2014 (41:8 Md. R. 470)

Regulation .07 repealed and new Regulation .07 adopted effective September 29, 2003 (30:19 Md. R. 1331)

Regulation .09 amended as an emergency provision effective January 15, 1993 (20:3 Md. R. 255); emergency status expired July 15, 1993

Regulation .09 amended effective July 19, 1993 (20:14 Md. R. 1169)

Regulation .09 amended as an emergency provision effective July 1, 1998 (25:18 Md. R. 1431); amended permanently effective December 28, 1998 (25:26 Md. R. 1921)

Regulation .09 amended effective September 22, 2008 (35:19 Md. R. 1716); May 17, 2010 (37:10 Md. R. 721); June 1, 2012 (39:9 Md. R. 611); May 1, 2014 (41:8 Md. R. 470); April 10, 2017 (44:7 Md. R. 354)

Regulation .09A, B amended as an emergency provision effective January 20, 1995 (22:3 Md. R. 150); amended permanently effective June 5, 1995 (22:11 Md. R. 820)

Regulation .09A, B amended effective May 6, 1996 (23:9 Md. R. 670)

Regulation .09A, B amended as an emergency provision effective January 10, 2001 (28:3 Md. R. 202); emergency status expired July 10, 2001 (Emergency provisions are temporary and not printed in COMAR)

Regulation .09A, B amended as an emergency provision effective June 22, 2001 (28:14 Md. R. 1319); emergency status expired December 15, 2001; amended permanently effective January 7, 2002 (28:26 Md. R. 2272)

Regulation .09A, B amended as an emergency provision effective May 1, 2002 (29:12 Md. R. 924); amended permanently effective September 2, 2002 (29:17 Md. R. 1380)

Regulation .09A, B amended as an emergency provision effective January 1, 2004 (31:3 Md. R. 206); amended permanently effective March 29, 2004 (31:6 Md. R. 508)

Regulation .09B amended effective July 1, 2005 (32:11 Md. R. 982)

Regulation .09B amended as an emergency provision effective August 14, 2006 (33:16 Md. R. 1362); amended permanently effective October 1, 2006 (33:19 Md. R. 1559)

Regulation .09B amended effective August 16, 2007 (34:16 Md. R. 1431); August 14, 2008 (35:16 Md. R. 1391); June 10, 2024 (51:11 Md. R. 580)

Regulation .09H adopted as an emergency provision effective November 18, 1994 (21:25 Md. R. 2093); adopted permanently effective April 24, 1995 (22:8 Md. R. 595)

Regulation .09O, P adopted effective April 24, 1995 (22:8 Md. R. 595)

Regulation .09P repealed effective October 10, 2016 (43:20 Md. R. 1109)

Regulation .10 adopted effective June 1, 2012 (39:9 Md. R. 611)

Annotation: COMAR 09.24.01.01A(5) and .04B(2) cited in Attorney General Opinion No. 81-010 (March 4, 1981), which clarified the definition of the term “audit”.