Wyo. Code R. 061-0001-6
Accountants, Board of Certified Public
Chapter 6: Rules of Professional Conduct
Effective Date: 03/04/2013 to Current
Rule Type: Current Rules & Regulations
Reference Number: 061.0001.6.03042013
Section 1. Preamble. This Code of Professional Conduct is promulgated under the authority granted by W.S. 33-3-108, which delegates to the Wyoming Board of Certified Public Accountants the power and duty to prescribe rules of professional conduct for establishing and maintaining high standards of competence and integrity in the profession of public accountancy. These rules apply to certificate or permit holders and those who avail themselves of practice privileges.
(a) The Rules of Professional Conduct set forth in this Chapter rest upon the premise that the public places trust and confidence in the CPA profession and the services it provides. The public consists of clients, credit grantors, governments, employers, investors, the business and financial community, and others who use CPA services. Consequently, licensees have a duty to conduct themselves in a manner that will be beneficial to the public and which fosters such trust and confidence. This Code of Professional Conduct identifies the fundamental principles of conduct intended to govern licensees in all aspects of professional performance whether they are in public practice, industry, not-for profit organizations, government, education or other professional endeavors. The independence rules apply only to those professional services where it is required by the applicable professional standards.
(b) When a holder accepts an engagement to perform professional services in the practice of public accounting, or uses a title which implies a particular competence, the holder accepts the obligations set forth in the Rules of Professional Conduct, and accordingly has a duty to abide by the Rules of Professional Conduct.
(c) In applying any of the professional standards, the Board may consider as persuasive, but not necessarily conclusive, applicable interpretations and rulings of the Code of Professional Conduct adopted by the American Institute of Certified Public Accountants (AICPA), as well as similarly applicable interpretations and rulings issued by other authorities such as the International Accounting Standards Board (IASB) and the Public Company Accounting Oversight Board (PCAOB). The Rules of Professional Conduct shall apply to holders regardless of membership status in the AICPA. All standards and rules of professional conduct are referred to in Chapter 11 'Statement on Standards Relative to the Practice of Public Accounting' including effective and/or last published dates as applicable.
(d) A holder who is engaged in the practice of public accounting outside the United States will not be subject to discipline by the Board for departing, with respect to such foreign practice, from any of the rules, so long as the holder's conduct is in accordance with standards of professional conduct applicable to the practice of public accounting in the country in which the holder is practicing. However, even in such a case, if a holder's name is associated with financial statements in such a manner as to imply that the holder is acting under circumstances that would entitle the reader to assume that United States practices are followed, the holder will be expected to comply with Rules of Professional Conduct governing auditing standards, accounting principles, accounting and review services and attestation standards.
(e) The authoritative standards that are referred to in this chapter are available from the AICPA, electronically at https://www.cpa2biz.com/Stores/AICPA; the FASB at www.fasb.org; the FASAB at www.fasab.org; or US Department of Labor, 200 Constitution Avenue NW, Washington DC, 20210; Government Auditing Standards may be accessed electronically at http://www.gao.gov. ; GASB at www.gasb.org. PCAOB standards may be accessed electronically at http://www.pcaobus.org. IASB standards may be accessed at www.ifrs.org.
Section 2. Independence, Integrity and Objectivity .
(a) Independence Rule. A holder shall be independent in the performance of professional services as required by: (i) standards promulgated by the AICPA Code of Professional Conduct, ET Section 55 and ET Section 101; (ii) the Government Auditing Standards, Yellow Book ; (iii) the standards issued by the PCAOB where applicable; (iv) the standards issued by the US Department of Labor @29CFR 2509.75-9 where applicable; (v) the standards issued by the IASB; and (vi) similar other entities having generally recognized authority.
(b) Integrity and Objectivity Rule. In the performance of any professional service, a holder shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to others.
(c) Commissions Rule. A holder shall not pay a commission to obtain a client or accept a commission from or on behalf of a client when the holder also performs for that client:
(i) an audit or review of a financial statement; (ii) a compilation of a financial statement when the holder expects, or reasonably might expect, that a third party will use the financial statement and the holder's report does not disclose a lack of independence; (iii) an examination of prospective financial information; or (iv) any other service requiring independence.
(d) Contingent Fees Rule. Solely for purposes of this rule, fees are not regarded as being contingent if fixed by courts or other public authorities; or in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies; or fees from services performed for other non-attest clients.
(i) A holder shall not offer to perform or perform professional services for a fee which is contingent upon the findings or results of such services when providing any of the services listed in subsection (c)(i) through (iv) of this section.
(ii) A holder shall not prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.
(e) Referral Fees. A holder may accept or pay a referral fee for the sale of services or products to a client if the holder does not perform any of the services listed in subsection (c)(i) through (iv) of this section.
(f) The prohibitions listed in subsections (c), (d) and (e) of this section shall apply during the period in which the holder is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in the listed services.
(g) Disclosure of permitted commissions, contingent fees, or referral fees. A holder who is not prohibited by these rules from performing services or receiving commissions, contingent fees, or referral fees and who expects to be paid the fee shall make written disclosure in advance of accepting the engagement.
(h) This rule does not prohibit payments for the purchase of all, or a material part, of an accounting practice, or retirement payments to persons formerly engaged in the practice of public accounting, or payments to the heirs or estates of such persons.
Section 3. Competence and Technical Standards .
(a) Competence Rule. A holder shall not undertake any engagement for the performance of professional services which cannot reasonably be completed with due professional competence in a timely manner, including compliance, where applicable, with Rules of Professional Conduct governing auditing standards, accounting principles, accounting and review services and attestation standards.
(b) Auditing Standards Rule. Holders who perform auditing services shall comply with applicable generally accepted auditing standards. Applicable generally accepted auditing standards are : (i) the standards and interpretations set forth in the AICPA Codification of Statements on Auditing Standards; (ii) Government Auditing Standards issued by the United States Government Accountability Office; (iii) standards issued by the PCAOB; where applicable; (iv) the standards and interpretations set forth by the IASB; (v) and other pronouncements having similar generally recognized authority are considered to be interpretations of generally accepted auditing standards, and departures there from must be justified by those who do not follow them.
(c) Accounting Principles Rule. A holder shall not express an opinion that financial statements are presented in conformity with generally accepted accounting principles (GAAP) if such financial statements contain any departure from accounting principles which has a material effect on the financial statements taken as a whole, unless the holder can demonstrate that, by reason of unusual circumstances, the financial statements would otherwise have been misleading. In such a case, the holder's report must describe the departure, the approximate effects thereof, if practicable, and the reason why compliance with the accounting principle would result in issuing a misleading statement. For purposes of this rule, GAAP and the applicable financial reporting frameworks are considered to be defined by pronouncements issued by: (i) the (FASB)and its predecessor entities, as published in FASB Accounting Standards, Codification and Updates ; (ii) the GASB, and its predecessor entities, as published in the GASB Codification; (iii) the FASAB and its predecessor entities, as published in the FASAB Handbook of Accounting Standards and Other Pronouncements; (iv) the IASB and its predecessor entities, as published in the IFRS (including IFRS for SMEs)(the Red Book); (v) and similar pronouncements issued by other entities having similar generally recognized authority.
(d) Accounting and Review Services Rule. A holder who performs accounting and review services shall conform to the professional standards applicable to such services. For purposes of this rule, such professional standards are considered to be defined by: (i) Statements on Standards for Accounting and Review Services issued by the AICPA ; and (ii) by similar pronouncements by other professional entities having similar generally recognized national and international authority.
(e) Attestation Standards Rule. A holder shall not be associated with assurances on representations other than historical financial statements unless such assurances have been made in accordance with: (i) the Statements on Standards for Attestation Engagements issued by the AICPA; (ii) or the Government Auditing Standards, where applicable.
(f) Other Professional Standards Rule: In performing tax services, personal financial planning, business valuation, litigation support and expert witness, and other management advisory or consulting services holders shall comply with the applicable professional standards for such services. For purposes of this rule, such professional standards are defined by:
(i) the Statements on Standards for Consulting Services, Statement on Standards for Tax Services, Statements on Responsibilities in Personal Financial Planning Practice, Statements on Standards for Valuation Services, Statements on Quality Control Standards and Statements on Continuing Professional Education Standards all of which are issued by the AICPA ; (ii) the Governmental Auditing Standards where applicable; (iii) the PCAOB where applicable ; (iv) or by similar pronouncements by other entities having similar generally recognized authority.
Section 4. Responsibility to Clients .
(a) Confidential Client Information Rule. A holder shall not, without the consent of the client, disclose any confidential information pertaining to the client obtained in the course of performing professional services.
(i) This rule does not:
(A) relieve a holder of any obligation under the Auditing Standards Rules, the Accounting Principles Rules, the Accounting and Review Services Rules, the Attestation Standards Rule, and Other Professional Standards Rules (formerly Rules 202, 203, 205, 206 and 207);
(B) affect in any way a holder's obligation to comply with a validly issued subpoena or summons enforceable by order of a court;
(C) prohibit disclosures in the course of a quality review of a holder's professional services; or
(D) Preclude a holder from responding to any inquiry made by the Board or any investigative or disciplinary body established by law or formally recognized by the Board.
(ii) Members of the Board and professional practice reviewers shall not disclose any confidential client information which comes to their attention from holders in disciplinary proceedings or otherwise in carrying out their responsibilities, except that they may furnish such information to an investigative or disciplinary body of the kind referred to above.
(b) Records Rule. Within forty-five (45) days of the date a request is made for any of the records in subsections (i) through (iii) below, a holder shall either deliver originals or copies or provide access to the records. Once the holder has complied with these requirements there is no obligation to provide additional records.
(i) client records that were provided to the holder by or on behalf of the client;
(ii) client records prepared by the holder such as accounting or other records including but not limited to tax returns, general ledgers, subsidiary journals and supporting schedules such as detailed employee payroll records and depreciation schedules the holder was engaged to perform;
(iii) supporting records and information not reflected in the client's books and records that are otherwise not available to the client such as adjusting, closing, combining, or consolidating journal entries (including computations supporting such entries) that are produced by the holder during an engagement as these records may make financial information incomplete;
(iv) working papers such as audit programs, analytical review schedules, and statistical sampling results, analyses, and schedules prepared by the client at the request of the holder are the holders' property and need not be provided to the client unless imposed by some other contractual agreement or state or federal law or regulation.
(v) The information in subsections (i) through (iii) above shall be provided in the medium requested, written or electronic if prepared in that medium. The holder shall redact any confidential information that may be attached to paper or electronic records. The holder may make and retain copies of such documents when they form the basis for work performed by him or her and the holder is entitled to reasonable reimbursement for costs associated with providing records for the client.
(vi) If an engagement is terminated prior to completion for a particular year-end, the holder is required to return only client records. A certificate holder may require all fees due for the last completed engagement be paid before the information in (ii) and (iii) above is provided.
(vii) Record Retention: Absent any specific regulations or professional standards issued by governmental agencies or other agencies having generally recognized authority with jurisdiction over the holder's engagement, holders shall retain records for assurance and attest engagements no less than five (5) years from the date of completion of the engagement. All other records including tax related records must be retained for a minimum of three (3) years from the date of completion of the engagement. In the absence of regulations mentioned which define records, retained records shall include, but are not limited to, work papers and other documents that contain conclusions, opinions and analysis, or financial data related to the engagement. If the holder was engaged to perform services utilizing electronic systems, the holder shall ensure that the most current electronic records and three years of paper records (if created) are capable of being accessed in a usable, protected format and are safeguarded through sound computer security procedures to prevent unauthorized access to records. If a pending investigation exists, records shall not be destroyed until the Board has notified the holder in writing of the closure of the investigation or has issued a formal decision based on the investigation. The holder is under no obligation to provide software that may be attached to or associated with electronic records.
(a) Discreditable Acts Rule. A holder shall not commit any act that reflects adversely on the holder's fitness to engage in the practice of public accounting. Acts which reflect adversely on one's fitness include but are not limited to:
(i) Adjudication as mentally incompetent;
(ii) Fiscal dishonesty of any kind;
(iii) Presenting as one's own a certificate, registration or permit issued to another;
(iv) Concealment of information regarding violations of the Act or Rules by other licensees when questioned or requested by the Board;
(v) Willfully failing to file a report or record required by state or federal law; willfully impeding or obstructing the filing of such report or record, or inducing another person to impede or obstruct such filing by another; and the making or filing of such a report or record which one knows to be false;
(vi) Negligence in the preparation of financial statements or records; or
(vii) Solicitation or disclosure of CPA examination questions.
(b) Acting Through Others Rule. A holder shall not permit others to carry out on the holder's behalf, either with or without compensation, acts which, if carried out by the holder, would place him or her in violation of the Rules of Professional Conduct.
(c) Advertising Rule.
(i) A holder shall not use or participate in the use of any form of public communication which contains a false, fraudulent, misleading, deceptive or unfair statement or claim. A false, fraudulent, misleading, deceptive or unfair statement or claim includes, but is not limited to, a statement or claim which:
(A) contains a misrepresentation of fact;
(B) is likely to mislead or deceive because it fails to make full disclosure of relevant facts;
(C) contains any testimonial, laudatory, or other statement or implication that the holder's professional services are of exceptional quality, which are not supported by verifiable acts;
(D) is intended, or likely to create, false or unjustified expectations of favorable results;
(E) implies educational or professional attainments, formal recognition as a specialist, or licensing recognition which cannot be verified;
(F) represents that professional services can or will be competently performed for a stated fee when this is not the case, or makes representation with respect to fees for professional services that do not disclose all variables that may reasonably be expected to affect the fees that will in fact be charged; or
(G) contains other representations or implications that in reasonable probability will cause an ordinarily prudent person to misunderstand or be deceived.
(H) A holder advertising to perform professional services via the Internet shall include the following information on the Internet:
(I) business or firm name;
(II) principal place of business address (physical location if different from mailing address);
(III) business phone; and
(IV) certificate number issued by the state of the certificate holder’s principal place of business or if for a CPA firm the same information applicable to the firm.
(ii) A holder who maintains the certificate on inactive or retired status shall not hold out or participate in any form of public communication which constitutes advertising accounting services or references the CPA designation.
(d) Form of Practice Rule.
(i) Subject to all the provisions and restrictions of Board Rules and Regulations, a certificate holder may practice public accounting within a duly registered CPA Firm, or as an employee of a governmental entity, academic institution, or private industry.
(e) Firm Names Rule.
(i) A holder shall not practice public accounting under a firm name which is misleading in any way, as to the legal form of the firm, or as to the persons who are partners, members, officers or shareholders of the firm, or as to any matter with respect to which public communications are restricted by the Advertising Rule.
(A) Unless otherwise approved by the Board, firms may not register under a firm name that includes names of individuals who have never been certified in any jurisdiction or names of individuals whose certificates are currently suspended or revoked.
(B) A CPA firm registered in compliance with W. S. 33-3-127 and Board rules and regulations that uses persons names within it may use the name(s) of current, retired or deceased owners, either alone or with other descriptive terms in its name.
(C) A CPA firm registered in compliance with W. S. 33-3-127 and Board rules and regulations may use an assumed or trade name if it is not misleading.
(D) The designation 'and company' or 'and associates' or similar terms will not be considered misleading when used in a firm name when a certificate holder or public accounting firm registered in compliance with W. S. 33-3-127 and Board rules and regulations, has employees, professional associates, or contractual relationships with other professionals.
(ii) A firm may not designate itself as 'Certified Public Accountants' unless it meets all the requirements to register under this act and the rules and regulations.
(iii) No misleading name may be adopted or used for any CPA Firm registered with the Board.
(i) A holder shall, when requested, respond in writing to communications from the Board within thirty (30) days of the mailing of such communications by registered or certified mail unless provided with an alternate response due date.
(ii) A holder shall fully cooperate with the Board in connection with any inquiry it may make and is also obliged to comply with a lawfully issued subpoena.
(iii) A holder shall furnish all documentation required to support any application as requested by the Board.
(i) Unless the Board has granted a specific exemption, a holder who maintains the certificate on inactive or retired status is prohibited from providing any service defined in W. S. 33-3-109 or Chapter 1, Section 2(dd) of Board rules and regulations to any employer, client, other party or organization, or any entity not wholly owned by the holder.
(ii) This prohibition applies regardless of the assumption or use of the CPA designation in connection with services provided.
(iii) This prohibition applies regardless of compensation received or not received for services provided.