1. As used in the 1999 Public Accountancy Act:
2. A. "accounting experience" means providing service or advice involving the use of accounting, attest, management advisory, financial advisory, tax or consulting skills as verified by a certified public accountant who meets requirements prescribed by the board; provided that experience gained through employment in government, industry, academia or public practice shall be accepted;

3. B. "attest" means to provide the following services:

   1. (1) an audit or other engagement performed in accordance with the statements on auditing standards;
   2. (2) a review of a financial statement performed in accordance with the statement on standards for accounting and review services;
   3. (3) an engagement performed in accordance with the statements on standards for attestation engagements adopted by the board; and
   4. (4) an engagement to be performed in accordance with the auditing standards of the public company accounting oversight board;
4. C. "board" means the New Mexico public accountancy board;
5. D. "certificate" means the legal recognition issued to identify a certified public accountant or a registered public accountant pursuant to the 1999 Public Accountancy Act or prior law;
6. E. "certified public accountant" means a person certified by this state or by another state to practice public accountancy and use the designation;
7. F. "comparable licensure requirements" means requirements that are comparable to or exceed the education, examination and accounting experience requirements of Paragraph (1) of Subsection A of Section 61-28B-26 NMSA 1978, as determined by the board;
8. G. "compilation" means a service provided to management, applying accounting and financial reporting expertise, in the presentation of financial statements and reports without undertaking to obtain or provide assurance that there are no material modifications that should be made to the financial statements or reports to be in accordance with the applicable financial reporting framework;
9. H. "contingent fee" means a fee established for the performance of a service pursuant to an arrangement in which no fee will be charged unless a specific finding or result is attained or upon which the amount of the fee is dependent upon a finding or result. "Contingent fee" does not mean a fee set by the court or a public authority on a tax matter;
10. I. "director" means the executive director of the board;
11. J. "firm" means a sole proprietorship, professional corporation, partnership, limited liability company, limited liability partnership or other legal business entity that practices public accountancy;
12. K. "licensee" means a person, certified public accountant, certified public accountant firm, registered public accountant or registered public accountant firm authorized to do business in New Mexico pursuant to the provisions of the 1999 Public Accountancy Act or prior law;
13. L. "peer review" means a study, appraisal or review of one or more aspects of the professional work of a firm by a certified public accountant who is not affiliated with the firm being reviewed;
14. M. "permit" means the annual authority granted to practice as a certified public accountant firm or a registered public accountant firm;
15. N. "practice" means performing or offering to perform public accountancy for a client or potential client by a person who makes a representation to the public as being a permit holder or registered firm;
16. O. "public accountancy" means the performance of one or more kinds of services involving accounting or auditing skills, including the issuance of reports on financial statements, the performance of one or more kinds of management, financial advisory or consulting services, the preparation of tax returns or the furnishing of advice on tax matters;
17. P. "registered public accountant" means a person who is registered by the board to practice public accountancy and use the designation; and

18. Q. "report" means a written communication issued by an accountant or an accountant firm that:

    1. (1) when used in reference to an audit, review or examination service, expresses or disclaims an opinion or a conclusion as to whether subject matter is presented in accordance with specified criteria; and
    2. (2) when used in reference to a compilation, agreed-upon procedures service or other service that is not an audit, review or examination service, includes a statement or implication that the accountant or accountant firm that issued the report has special knowledge or competence in accounting or attest services such as by the use of names or titles indicating that the person or firm is an accountant or an accountant firm or by the contents of the report itself.

History: Laws 1999, ch. 179, § 3; 2000, ch. 91, § 1; 2008, ch. 30, § 1; 2017, ch. 12, § 1; 2025, ch. 105, § 1.

ANNOTATIONS

Delayed repeals. — For delayed repeal of this section, see 61-28B-29 NMSA 1978.

The 2025 amendment, effective January 1, 2026, defined the terms "accounting experience" and "comparable licensure requirements" as used in the 1999 Public Accountancy Act, and removed the definition of the term "substantial equivalency"; added new Subsection A and redesignated former Subsections A through D as Subsections B through E, respectively; added a new Subsection F and redesignated former Subsections E through O as Subsections G through Q, respectively; and deleted former Subsection P.

The 2017 amendment, effective June 16, 2017, added the definition of "compilation" to, and clarified certain definitions in, the Public Accountancy Act; in Subsection A, in the introductory clause, after "the following", deleted "financial statement", and in Paragraph A(3), after "an", deleted "examination of prospective financial information" and added "engagement", and after "attestation engagements", added "adopted by the board"; added a new Subsection E and redesignated the succeeding subsections accordingly; in Subsection I, after "‘licensee’ means a", added "person", and after "accountant firm", added "authorized to do business in New Mexico pursuant to the provisions of the 1999 Public Accountancy Act or prior law"; and in Subsection O, in the introductory clause, after "‘report’ means", deleted "an opinion or other writing that:" and added "a written communication issued by an accountant or an accountant firm that:", and deleted former Paragraphs O(1) through O(3) and added new Paragraphs O(1) and O(2).

The 2008 amendment, effective May 14, 2008, added Paragraph (4) of Subsection A and Subparagraph (a) of Paragraph (3) of Subsection N; deleted the definition of person and of specialty designation; and in Subsection O, changed the reference to the 1999 Public Accountancy Act to Subsection A of Section 61-28A-26 NMSA 1978.

The 2000 amendment, effective July 1, 2000, added a new Subsection E and redesignated the remaining subsections accordingly.

Generally, as to public accountant. — A public accountant is one who provides accounting or auditing, as opposed to bookkeeping, services on a fee basis, per diem or otherwise, for more than one employer. 1947 Op. Att'y Gen. No. 47-5050.

Providing auditing services for credit union league members. — An individual not registered or licensed as an accountant, who is employed by the New Mexico credit union league, and provides auditing services on behalf of the league for member credit unions, does not hold himself out to the public as a public accountant, nor does he violate the public accountancy provisions. 1969 Op. Att'y Gen. No. 69-124.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 1 Am. Jur. 2d Accountants § 1 et seq.

Construction and application of statutory provisions respecting persons who may prepare tax returns for others, 10 A.L.R.2d 1443.

Regulation of accountants, 70 A.L.R.2d 433, 4 A.L.R.4th 1201.

1 C.J.S. Accountants § 2.