Wyo. Code R. 061-0001-6
Accountants, Board of Certified Public
Chapter 6: Rules of Professional Conduct
Effective Date: 08/21/2002 to 08/29/2003
Rule Type: Superceded Rules & Regulations
Reference Number: 061.0001.6.08212002
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.
(a) The Rules of Professional Conduct set out below rest upon the premises that the reliance of the public in general and of the business community in particular on sound financial reporting, and on the implication of professional competence which inheres in the authorized use of a legally restricted title relating to the practice of public accountancy, imposes on persons engaged in such practice certain obligations both to their clients and to the public. These obligations, which the Rules of Conduct are intended to enforce where necessary, include the obligation to maintain independence of thought and action, to strive continuously to improve one's professional skills, to observe where applicable generally accepted accounting principles and generally accepted auditing standards, to promote sound and informative financial reporting, to hold the affairs of clients in confidence, to uphold the standards of the public accounting profession, and to maintain high standards of personal conduct in all matters affecting one's fitness to practice public accounting.
(b) Acceptance of a permit holder to engage in the practice of public accounting, or to use titles which imply a particular competence so to engage, involves acceptance by the permit holder of such obligations, and accordingly of a duty to abide by the Rules of Conduct.
(c) The Rules of Conduct are intended to have application to all kinds of professional services performed in the practice of public accounting and to apply as well to all permit holders, whether or not engaged in the practice of public accounting, except where the wording of a Rule clearly indicates that the applicability is more limited.
(d) A permit 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 his conduct is in accordance with standards of professional conduct applicable to the practice of public accounting in the country in which he is practicing. However, even in such a case, if a permit holder's name is associated with financial statements in such a manner as to imply that he is acting as an independent public accountant and under circumstances that would entitle the reader to assume that United States practices are followed, he will be expected to comply with Rules 202, 203, 205 and 206.
(e) In the interpretation and enforcement of the Rules of Conduct, the Board will give consideration, but not necessarily dispositive weight, to relevant interpretations, rulings and opinions issued by the Boards of other jurisdictions, and by appropriately authorized committees on ethics of professional organizations.
(a) Rule 101 - Independence. A permit holder in public practice shall be independent in the performance of professional services as required by standards promulgated by the American Institute of Certified Public Accountants, Code of Professional Conduct, ET Section 55 and ET Section 101 as of June 1, 2002 or the Government Auditing Standards, Amendment No. 3, October 2002.
(b) Rule 102 - Integrity and Objectivity. 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 judgement to others.
(c) Rule 103 - Commissions. A permit holder shall not pay a commission to obtain a client or accept a commission from or in behalf of a client when the permit holder also performs for that client:
(i) an audit or review of a financial statement;
(ii) a compilation of a financial statement when the permit holder expects, or reasonably might expect, that a third party will use the financial statement and the permit 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) Rule 104 - Contingent Fees. 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 permit holder shall not offer 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 permit 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 permit holder may accept or pay a referral fee for the sale of services or products to a client if the permit 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 permit 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 permit 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. Copies of the authoritative standards referenced in this chapter are available for inspection at the Board's office. Copies may be purchased from the AICPA, Harborside Financial Center, 201 Plaza Three, Jersey City, NJ 07311-3881.
(a) Rule 201 - Competence. A permit holder shall not undertake any engagement for the performance of professional services which he cannot reasonably expect to complete with due professional competence in a timely manner, including compliance, where applicable, with Rules 202, 203, 205, 206, and 207.
(b) Rule 202 - Auditing Standards. A permit holder shall not permit his name to be associated with financial statements in such a manner as to imply that he is acting as an independent certified public accountant with respect to such financial statements unless he has complied with applicable generally accepted auditing standards. Generally accepted auditing standards are the standards set forth in the Codification of Statements on Auditing Standards, Numbers 1 through 96; Codification of Statements on Standards for Attestation Engagements as of January 1, 2002; Standards for Audits of Government Organizations, Programs, Activities and Functions issued by the United States General Accounting Office, June 1994 Revision; Government Auditing Standards, Amendment No. 1, May 1999 and Government Auditing Standards, Amendment No. 2, July 1999; and Government Auditing Standards, Amendment No. 3, October 2002; and other pronouncements having similar generally recognized authority are considered to be interpretations of generally accepted auditing standards, and departures therefrom must be justified by those who do not follow them. This rule does not include any later amendments or editions. The above referenced standards are hereby adopted by the Board.
(c) Rule 203 - Accounting Principles. A permit holder shall not express an opinion that financial statements are presented in conformity with generally accepted accounting principles if such financial statements contain any departure from such accounting principles which has a material effect on the financial statements taken as a whole, unless the permit holder can demonstrate that by reason of unusual circumstances the financial statements would otherwise have been misleading. In such a case, the permit holder's report must describe the departure, the approximate effects thereof, if practicable, and the reason why compliance with the principle would result in misleading statement. For purposes of this rule, generally accepted accounting principles are considered to be defined by pronouncements issued by: the Financial Accounting Standards Board and its predecessor entities, as published in Accounting Standards, Current Text, General Standards as of June 1, 2002 and Accounting Standards, Current Text, Industry Standards as of June 1, 2002 the Governmental Accounting Standards Board, its predecessor entities, as published in the Codification of the Governmental Accounting and Financial Reporting Standards as of June 30, 2002; and similar pronouncements issued by other entities having similar generally recognized authority. This rule does not include any later amendments or editions. The above referenced standards are hereby adopted by the Board.
(d) Rule 205 - Accounting and Review Services. A permit holder, in the performance of 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 Statements on Standards for Accounting and Review Services Numbers 1 through 8 respectively, issued by the American Institute of Certified Public Accountants and by similar pronouncements by other entities having similar generally recognized authority. This rule does not include any later amendments or editions. The above referenced standards are hereby adopted by the Board.
(e) Rule 206 - Attestation standards. A permit holder shall not permit his name to be associated with assurances on representations other than historical financial statements unless such assurances have been made in accordance with the Statements on Standards for Attestation Engagements Numbers 1-11 as of June 1, 2002. This rule does not include any later amendments or editions. These standards are hereby adopted by the Board.
(f) Rule 207 - Other professional standards: In performing tax services, personal financial planning, business valuation, litigation support and expert witness, and other management advisory or consulting services permit holders shall comply with the applicable professional standards for such services. For purposes of this rule, such professional standards are defined by the Statements on Standards for Consulting Services, Statement on Standards for Tax Services, Statements on Responsibilities in Personal Financial Planning Practice, all of which are issued by the American Institute of Certified Public Accountants as of June 1, 2002 or by similar pronouncements by other entities having similar generally recognized authority.
(a) Rule 301 - Confidential Client Information. A permit holder shall not without the consent of his client disclose any confidential information pertaining to this client obtained in the course of performing professional services.
(i) This rule does not:
(A) relieve a permit holder of any obligation under Rules 202 and 203;
(B) affect in any way a permit 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 permit holder's professional services; or
(D) Preclude a permit 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 permit 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) Rule 302 - Records. A permit holder shall furnish to his client or former client, upon request made within a reasonable time after original issuance of the document in question;
(i) a copy of a tax return of the client;
(ii) a copy of any report, or other document, issued by the permit holder to or for such a client;
(iii) other client records - a client's records are any accounting or other records belonging to the client that were provided to the permit holder by or on behalf of the client;
(iv) a copy of the permit holder's working papers when those work papers contain information that is not reflected in the client's books and records, with the result that the client's financial information is incomplete. This includes adjusting, closing, combining or consolidating journal entries; information normally contained in books of original entry general ledgers or subsidiary ledgers; and tax and depreciation carry forward information. The permit holder may require that all fees due be paid before this information is provided. A permit holder's working papers, including but not limited to, analysis and schedules prepared by the client at the request of the permit holder, are the permit holder's property, not client records, and need not be made available.
(v) The information shall be provided in the medium requested, written or electronic, provided it exists in that medium. The permit holder is under no obligation to provide the client with a copy of any software and/or instructions that may be attached to electronic records. The permit holder may make and retain copies of such documents when they form the basis for work done by him and is entitled to reasonable reimbursement for copies made for the client. If an engagement is terminated prior to completion, the permit holder is required to return only client records.
(a) Rule 401 - Discreditable Acts. A holder shall not commit any act that reflects adversely on his fitness to engage in the practice of public accounting.
(b) Rule 402 - Acting Through Others. A permit holder shall not permit others to carry out on his behalf, either with or without compensation, acts which, if carried out by the permit holder, would place him in violation of the Rules of Conduct.
(c) Rule 403 - Advertising. A permit holder shall not use or participate in the use of any form of public communication having reference to his professional services 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:
(i) contains a misrepresentation of fact;
(ii) is likely to mislead or deceive because it fails to make full disclosure of relevant facts;
(iii) contains any testimonial, laudatory, or other statement or implication that the permit holder's professional services are of exceptional quality, which are not supported by verifiable acts;
(iv) is intended or likely to create false or unjustified expectations of favorable results;
(v) implies educational or professional attainments, formal recognition as a specialist, or licensing recognition which cannot be verified;
(vi) 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
(vii) contains other representations or implications that in reasonable probability will cause an ordinarily prudent person to misunderstand or be deceived.
(viii) A CPA or CPA firm offering to perform professional services via the Internet shall include the following information on the Internet:
(A) business or firm name;
(B) principal place of business;
(C) business phone; and
(D) Wyoming certificate or permit number noting Wyoming as state of certification.
(d) Rule 405 - Form of Practice.
(i) A permit holder may practice public accounting in a proprietorship, a partnership, a corporation, a limited liability partnership, limited liability company, or flexible limited liability company organized to comply with W.S. 33-3-118, 33-3-119, 33-3-120, 17-21-1105, 17-15-103, or 17-15-144 and the Rules and Regulations.
(e) Rule 406 - Firm Names.
(i) A permit 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 Rule 403. Names of one (1) or more past partners, shareholders, or members may be included in the firm name of a partnership, corporation, or limited liability company or its successor. 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 or permits are currently suspended or revoked.
(ii) A firm may not designate itself as "Certified Public Accountants" unless all partners, shareholders, or members are licensed to practice as such and that firm is registered as such.
(iii) No misleading name may be adopted or used for any corporation, partnership, limited liability partnership, limited liability company, flexible limited liability company or proprietorship.
(f) Rule 407 - Communications. A permit 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.