New Mexico Register / Volume
XXXII, Issue 22 / November 30, 2021
This is an amendment to 16.60.1 NMAC, Section
7, effective 12/12/2021
16.60.1.7 DEFINITIONS:
A. “Acceptance letter” means a document issued by the sponsoring organization indicating the peer review report has been accepted and, if applicable, any remedial/corrective actions to be agreed to and completed by the firm.
B. “Accounting and auditing services” for peer review purposes means providing any one or more of the following:
(1) engagements performed in accordance with the “statements on auditing standards”;
(2) engagements, other than preparation services, performed in accordance with the “statements on standards for accounting and review services”;
(3) examination, review or agreed upon procedures engagements performed in accordance with the “statements on standards for attestation engagements”; or
(4) engagements performed in accordance with public company accounting oversight board (PCAOB) standards that are not subject to PCOAB permanent inspection.
C. “Act” means the New Mexico 1999 Public Accountancy Act, Sections 61-28B-1 to 61-28B-29 NMSA1978.
D. “Agreed upon procedures” are those which are to be performed in accordance with applicable attestation standards. They are also those in which a license is engaged to issue a written finding that is based on specific procedures that the specified parties agreed are sufficient for their purpose, is restricted to the specified parties, and does not provide an opinion or negative assurance.
E. “Attest” means to provide the following services:
(1) An audit or other engagement performed in accordance with the statements on auditing standards;
(2) a review of a financial statement performed in accordance with the statement on standards for accounting and review services;
(3) an engagement performed in accordance with the statements on standards for attestation engagements adopted by the board; and
(4) an engagement to be performed in
accordance with the auditing standards of the public company accounting
oversight board.
F. “Blended learning” is an educational program incorporating different learning or instructional delivery methods, both asynchronous and synchronous learning activities, or different levels of guidance.
G. “Client” means the person or entity who retains a licensee for the performance of professional services.
H. “Completion letter” means a document issued by the sponsoring organization after a firm has provided evidence of remedial/corrective actions taken, which were specified in the acceptance letter, and its peer review committee has determined no further actions are required.
I. “Disqualifying criminal
conviction” has the same meaning as defined in Subsection E of Section
61-1-36 NMSA 1978.
[I.]
J. “Electronic mail
or an Email” means an electronic mail message created in or received
through an electronic mail system, including all attachments that are sent over
a communications network, using a computer or other electronic device.
[J.]
K. “Electronic
Signature” means an electronic sound, symbol or process attached to or
logically associated with a record and executed or adopted by a person with the
intent to sign the record.
[K.]
L. “Enterprise”
means any person or entity who retains a licensee for the performance of
professional services.
[L.]
M. “Financial
statements” means statements and footnotes related thereto that purport to show
an actual or anticipated financial position or results of operations, cash
flow, or changes in financial position based on generally accepted accounting
principles or another comprehensive basis of accounting. The term includes specific elements, accounts,
or items of such statements, but it does not include incidental financial data
included in management advisory service reports which support recommendations
made to clients. In addition, it does
not include tax returns and supporting schedules.
[M.]
N. “He, his, him”
means masculine pronouns when used herein also include the feminine and the
neuter.
[N.]
O. “Holding out to the
public as a permit holder or registered firm” means the phrase “holding
himself out to the public as a permit holder or registered firm” as used in the
definition of “practice of public accountancy” in Section 3L of the act, and in
these rules it means any representation, other than by an individual holding a
certificate or firm registration issued by this board pursuant to the 1999
Public Accountancy Act, Sections 61-28B-7 thru 61-28B-9, 61-28B-1 or 61-28B-13
NMSA 1978, of the fact that a certificate holder holds a permit, certificate or
is a registered firm in connection with the performance of, or an offer to
perform, services for the public, except as allowed under the practice
privilege pursuant to the 1999 Public Accountancy Act, Sections 61-28B-26 NMSA
1978. Any such representation is
presumed to invite the public to rely upon the professional skills implied by
the certificate, registration, or permit in connection with the professional
services offered to be performed. For
the purpose of this rule, a representation shall be deemed to include any oral
or written communication conveying the fact that the person holds a certificate,
permit or firm registration, including without limitation the use of titles or
legends on letterheads, business cards, office doors, advertisements, internet,
email, or other electronic media.
P. “License” has the same
meaning as defined in Subsection C of Section 61-1-2 NMSA 1978.
Q. "Licensing fee" has
the same meaning as defined in Paragraph (2) of Subsection F of Section 61-1-34
NMSA 1978.
[O.]
R. “Mail” as used
in the rules shall include mail sent by the United States Postal Service or commercial
courier.
[P.]
S. “Manager” has,
when used in these rules, the same meaning as the term “manager” in a limited
liability company.
[Q.]
T. “Member” has,
when used in these rules, the same meaning as the term “member” in a limited
liability company.
U. “Military service member” has
the same meaning as defined in Paragraph (3) of Subsection F of Section 61-1-34
NMSA 1978.
[R.] V. “Nano
learning program” is a program designed to permit a participant to
learn a given subject in a minimum of 10 minutes and less than 20 minutes
through the use of electronic media (including technology applications and
processes and computer-based or web-based technology) and without interaction
with a real-time instructor. A nano
learning program differs from a self-study program in that it is typically
focused on a single learning objective and is not paper-based. A nano learning program is not a group
program. Nano learning is not a substitute
for comprehensive programs addressing complex issues.
[S.]
W. “Non-technical”
fields of study are subjects that contribute to the maintenance and/or
improvement of the competence of a CPA in areas that indirectly relate to the
CPA’s field of business and subject to board determination. These fields of study include, but are not
limited to:
(1) Behavioral ethics
(2) Business management & organization
(3) Communications and marketing
(4) Computer software and applications
(5) Personal development
(6) Personnel/human resources;
(7) Production
[T.]
X. “PCAOB” means
the public company accounting oversight board.
[U.]
Y. “Peer review
program” means the sponsoring organization’s entire peer review process,
including but not limited to the standards for administering, performing and
reporting on peer reviews, oversight procedures, training, and related guidance
and materials.
[V.]
Z. "Peer review
committee” means a committee comprised exclusively of CPAs practicing
public accountancy and formed by a sponsoring organization for the purpose of overseeing
the administration, acceptance, and completion of peer reviews.
[W.]
AA. “Peer
review oversight committee” means a board appointed committee to provide
oversight of the sponsoring organization in order to provide reasonable
assurance that peer reviews are being administered, conducted, and reported on
in accordance with the minimum standards for performing and reporting on peer
reviews.
[X.]
BB. “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 a certified
public accountant or a registered firm.
[Y.]
CC. “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.
[Z.]
DD. “Practice Privilege”
as defined in the 1999 Public Accountancy Act, Section 61-28B-26, a person
whose principal place of business or residence in not in New Mexico shall be
presumed to have qualifications substantially similar to New Mexico’s
requirements, may exercise all the practice privileges of certificate holders
of New Mexico without the need to obtain a certificate pursuant the 1999 Public
Accountancy Act, Sections 61-28B-9 NMSA 1978, if the individual meets the
requirements of the 1999 Public Accountancy Act, Section 61-28B-26.
[AA.]
EE. “Professional
engagement” means a written or oral agreement between a client and a
licensee relative to the performance of professional services and the services
performed under this agreement. Oral
agreements may only be used when allowed by professional standards.
[BB.]
FF. “Professional
services” means any service performed or offered to be performed by a
licensee for a client in the course of the practice of public accountancy.
[CC.]
GG. “Public
communication” means a communication made in identical form to multiple
persons or to the world at large, including but not limited to television,
radio, motion pictures, newspaper, pamphlet, mass mailing, letterhead, business
card, the internet, email or directory.
[DD.]
HH. “Quality
review” means an interchangeable term for peer review.
[EE.]
II. “Report” As provided in
Section 61-28B-3 N of the act, the term “report” includes the issuance of
reports in conjunction with an accounting and auditing practice using the forms
of language set out in the American institute of certified public accountants
(AICPA) “statements on auditing standards,” “statements on standards of
accounting and review services,” “statements on standards for attestation
engagements,” and PCOAB standards.
[FF.]
JJ. “Services
involving accounting or auditing skills” means “services involving
accounting or auditing skills” as used in the definition of “practice of public
accountancy” in Sections 3K and L of the act.
It includes the provision of advice or recommendations in connection
with the sale or offer for sale of products, when the advice or recommendations
require or imply the possession of accounting or auditing skills or expert
knowledge in auditing or accounting.
[GG.] KK. “Sponsoring
Organization” means a board approved professional society, or other
organization responsible for the facilitation and administration of peer
reviews through use of its peer review program and peer review standards.
[HH.]
LL. “Statement
of compliance” means a certified statement from the human services
department (HSD) stating that an applicant or licensee is in compliance with a
judgment and order for support.
[II.]
MM. “Statement
of non-compliance” means a certified statement from HSD stating that an
applicant or licensee is not in compliance with a judgment and order for
support.
NN. "Substantially equivalent"
means the determination by the board that the education, examination, and
experience requirements contained in the statutes and rules of another jurisdiction
are comparable to, or exceed the education, examination, and experience
requirements of the Act.
[JJ.]
OO. “Technical”
fields of study are technical subjects that contribute to the maintenance
and/or improvement of the competence of a CPA in the profession of accountancy
and that directly relate to the CPA’s field of business. These fields of study include, but are not
limited to:
(1) Accounting
(2) Government accounting
(3) Auditing
(4) Government auditing
(5) Business law
(6) Economics
(7) Finance
(8) Information technology
(9) Management services
(10) Regulatory ethics
(11) Specialized knowledge
(12) Statistics
(13) Taxes
PP. “Veteran” has the same meaning
as defined in Paragraph (4) of Subsection F of Section 61-1-34 NMSA 1978.
[16.60.1.7 NMAC - Rp 16 NMAC 60.1.7 and 16 NMAC 60.11.7, 2/14/2002; A, 11/30/2007; A, 4/15/2008; A, 6/30/2008; A, 1/17/2013; A, 9/15/2015; A, 10/1/2016; A, 10/1/2020; A, 12/12/2021]