PURPOSE: This rule defines terms used in the rules of the Missouri State Board of Accountancy.

PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. Therefore, the material which is so incorporated is on file with the agency who filed this rule, and with the Office of the Secretary of State. Any interested person may view this material at either agency’s headquarters or the same will be made available at the Office of the Secretary of State at a cost not to exceed actual cost of copy reproduction. The entire text of the rule is printed here. This note refers only to the incorporated by reference material.

1. (1) Commission fee or referral fee shall include, but not be limited to:

   1. (A) Any fee, profit or other thing of value required or received for the rendering or selling of goods or services; or
   2. (B) Any fee, profit or other thing of value required or received for referring a client to the products or services of others; or
   3. (C) Any fee, profit or other thing of value paid to obtain a client. This rule does not apply to payments made where the payments are part of the employees’ compensation or for the purchase of all, or a material part, of an accounting practice, or to retirement payments to persons formerly engaged in the practice of public accounting.
2. (2) Contingent fee means compensation for the performance of professional services where the compensation or the amount is contingent upon the findings or result of those services.
3. (3) CPA means a certified public accountant.
4. (4) Enterprise means any person(s) or entity, whether organized for profit or not, for which a licensee provides services.
5. (5) Financial statement is a presentation of financial data, including accompanying notes, if any, intended to communicate an entity’s economic resources and/or obligations at a point in time or the changes therein for a period of time, in accordance with generally accepted accounting principles or a comprehensive basis of accounting other than generally accepted accounting principles. Incidental financial data to support recommendations to a client or in documents for which the reporting is governed by Statements on Standards for Attestation Engagements, which is incorporated by reference in this rule, and tax returns and supporting schedules do not, for this purpose, constitute financial statements. The statement, affidavit, or signature of preparers required on tax returns neither constitutes an opinion on financial statements nor requires a disclaimer of such opinion. Statement on Standards of Attestation Engagement are documents included in the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, which is incorporated by reference in this rule. A printed copy or copy on CD-Rom or other electronic copies of the Rules of Professional Conduct may also be obtained from the American Institute of Certified Public Accountants, PO Box 2209, Jersey City, New Jersey 07303-2209 or http://www.aicpa.org.

6. (6) Practice of public accounting means:

   1. (A) Performing or offering to perform for an enterprise, client or potential client one (1) or more services involving the use of accounting or auditing skills or one (1) or more management advisory or consulting services or the preparation of tax returns or the furnishing of advice on tax matters by a person or firm using the title “CPA” in signs, advertising, directory listings, business cards, letterheads, or other public representations, except that this shall not contradict section 326.292, RSMo;
   2. (B) Signing or affixing one’s own name, any trade or assumed name used by him or her, or a professional firm in his or her or its professional firm name, with any wording indicating he or she or the professional firm has expert knowledge in accounting or auditing, to any opinion or certificate attesting in any way to the reliability of any representation or estimate in regard to any person or organization embracing financial information or facts respecting compliance with conditions established by law or contract including, but not limited to, statutes, ordinances, rules, grants, loans and appropriations, except that this shall not contradict section 326.292, RSMo;
   3. (C) Offering to the public or to prospective clients to perform or actually performing on 20 CSR 2010-2

behalf of clients any professional services that involve or require an audit or examination of financial records leading to the expression of a written attestation or opinion concerning these records, except that this shall not contradict section 326.292, RSMo; or

1. (D) Maintaining an office for the transaction of business as a CPA firm.

1. (7) Professional services means any services including all services performed by a member while holding himself or herself out as a CPA.

2. (8) Resident of this state is an individual considered to be for the purposes of Chapter 326, RSMo, a resident of this state, provided:

   1. (A) The individual maintains a permanent place of residence in Missouri and actually resides in Missouri;
   2. (B) The individual is a full-time student at an accredited college or university in this state;
   3. (C) The individual who is a graduate from a Missouri college or university, and at the time of graduation had a Missouri address, shall be considered a resident of this state for six (6) months from the date of graduation;
   4. (D) The individual is regularly employed full-time in this state; or
   5. (E) The individual is a permanent resident of Missouri and is serving on active duty in the armed services, or the individual is a permanent resident of Missouri and is the spouse of an individual serving on active duty in the armed services. To satisfy the requirements of this rule, employment in Missouri need not be in public accounting.
3. (9) A resident manager of an office is a CPA holding an active license to practice, issued under section 326.280, RSMo and currently practicing public accounting, who has direct supervision of the office and who, in addition, oversees the planning, administration, direction and review of the services being performed by that office.
4. (10) Accounting firm is a certified public accountant firm, a CPA firm, or firm, sole proprietorship, a corporation, a partnership or any other form of organization issued a permit pursuant to section 326.289, RSMo.
5. (11) The provisions of this rule are declared severable. If any provision of this rule is held invalid by a court of competent jurisdiction, the remaining provisions of this rule shall remain in full force and effect, unless otherwise determined by a court of competent jurisdiction to be invalid. FINANCIAL INSTITUTIONS AND PROFESSIONAL REGISTRATION

AUTHORITY: sections 326.256 and 326.262, RSMo Supp. 2003.* This rule originally filed as 4 CSR 10-2.005. Original rule filed July 3, 1975, effective Aug. 25, 1975. Amended: Filed Sept. 13, 1978, effective Jan. 13, 1979. Amended: Filed Nov. 10, 1981, effective April 11, 1982. Amended: Filed Sept. 3, 1986, effective Jan. 30, 1987. Amended: Filed Feb. 5, 1990, effective June 28, 1990. Amended: Filed June 4, 1990, effective Nov. 30, 1990. Amended: Filed Sept. 25, 1991, effective March 9, 1992. Amended: Filed Oct. 13, 1993, effective May 9, 1994. Amended: Filed Aug. 25, 1995, effective March 30, 1996. Rescinded and readopted: Filed April 5, 2004, effective July 30, 2004. Moved to 20 CSR 2010-2.005, effective Aug. 28, 2006.

*Original authority: 326.256, RSMo 2001, amended 2002 and 326.262, RSMo 2001. Op. Atty. Gen. No. 30, Butler (9-24-79). Government employees doing internal “accounting work” do not engage in the “practice of public accounting,” since this work does not rise to the level of activity governed by Chapter 326, RSMo.