Competence and Technical Standards

(1) Competence. A certified public accountant shall not undertake any engagement which the (MA REG. # 1339, Dated 5-19-17) licensee’s or the license’s firm cannot reasonably expect to complete with professional competence. (2) Auditing Standards. A certified public accountant shall not permit the licensee’s name to be associated with financial statements in such a manner as to imply that the licensee is acting as an independent certified public accountant unless the licensee has complied with applicable generally accepted auditing standards. 3.02: continued (3) Accounting Principles. A certified public accountant shall not express an opinion that financial statements are presented in conformity with generally accepted accounting principles if such statements contain anydeparture from an accounting principle which has a material effect on the statements taken as a whole, unless the licensee can demonstrate that due to unusual circumstances the financial statements would otherwise have been misleading. In such cases the licensee’s report must describe the departure, the approximate effects thereof, if practicable, and the reasons why compliance with the principle would result in a misleading statement. (4) Forecasts. A certified public accountant shall not permit the licensee’s name to be used in conjunction with any forecast of future transactions in a manner which may lead to the belief that the certified public accountant vouches for the achievability of the forecast.