Definitions

(1) Unless otherwise stated, as used in this chapter and each subsequent chapter of the Rules of the State Board of Accountancy: (a) “Act” means the Tennessee Accountancy Act of 1998, Tenn. Code Ann. §§ 62-1-101 et seq.; (b) “Accounting service” means accounting, attest, tax, consulting or management advisory services; (c) “AICPA” means the American Institute of Certified Public Accountants; (d) “Attest” shall be defined as in Tenn. Code Ann. § 62-1-103; (e) “Board” shall be defined as in Tenn. Code Ann. § 62-1-103; (f) “Certificate” shall be defined as in Tenn. Code Ann. § 62-1-103; (g) “CPA” means “Certified Public Accountant” and shall be defined as in Tenn. Code Ann. § 62-1-103; (h) “Expired License” means a license that is more than six months past the expiration date of the license; (i) “Financial statements” means statements, footnotes and other supplementary information related thereto that undertake to present an actual or anticipated financial position as of a point in time, or results of operations, cash flow, or changes in financial position for a period of time, in conformity with generally accepted accounting principles or another comprehensive basis of accounting. The term does not include incidental financial data included in management advisory service reports to support recommendations to a client; nor does it include tax returns and supporting schedules; (j) “License” means a certificate issued under T.C.A. § 62-1-107, a permit issued under T.C.A. § 62-1-108, or a registration under T.C.A. § 62-1-109, or, in each case, a certificate, license, or permit issued under corresponding provisions of prior law; LICENSING AND REGISTRATION REQUIREMENTS CHAPTER 0020-01 (k) “Member” means member in a limited liability company; (l) “NASBA” means the National Association of State Boards of Accountancy; (m) “Permit” means a permit to practice as a CPA or PA firm issued under §§ 62-1-108, 62- 1-109 or corresponding provisions of prior law; (n) “Partnership” or “Corporation” shall include any form of business organization authorized under the laws of this or any other state; (o) “Practice of public accountancy” means providing or offering to provide attest services to the public, or using the titles “certified public accountant,” “public accountant,” “CPA,” or “PA”; (p) “Professional service” means any service performed or offered by a licensee for a client in the course of the practice of public accountancy; (q) “PA” means “Public Accountant” and shall be defined as in Tenn. Code Ann. § 62-1- 103; (r) “Registration” shall be defined as in Tenn. Code Ann. § 62-1-103; (s) “Report” shall be defined as in Tenn. Code Ann. § 62-1-103. This term, as defined in Tenn. Code Ann. § 62-1-103 of the Act and used in Tenn. Code Ann. § 62-1-108 of the Act, and in these Rules, includes forms of language contained in a report which refers to financial statements or other information, when such forms of language express or deny any assurance as to the reliability of the financial statements or other information to which it refers. Among the possible sources of such forms of language are pronouncements by authoritative bodies recognized by the Board describing the work that should be performed and/or the responsibilities that should be assumed, for specified kinds of professional engagements, and in addition prescribing the form of report which should be issued upon completion of such engagements. A form of report prescribed by such a pronouncement will ordinarily constitute a form of language which is conventionally understood as implying assurance and expertise; (t) “Resident manager” means a licensee designated by a firm to be responsible for an office location’s compliance with the Act and the rules of the Board. A resident manager may be the resident manager of multiple office locations. Each office location must have a CPA resident manager, with responsibility for that office, whether that manager is an owner in the firm or not.