Ariz. Admin. Code § 14-4-120

Current through Register Vol. 30, No. 25, June 21, 2024

Section R14-4-120 - Financial Statements

A. Qualification of accountants

1. The Commission will not recognize any person as a certified public accountant who is not duly registered and in good standing as such under the laws of the place of his residency or principal office.

2. The Commission will not recognize any person as a public accountant who is not in good standing and entitled to practice as such under the laws of the place of his residency or principal office.

3. The Commission will not recognize any certified public accountant or public accountant as independent who is not in fact independent. An accountant will not be considered independent with respect to any person or any affiliate thereof in whom he has any financial interest direct or indirect or with whom he is or was during the period of the report connected as a promoter, underwriter, voting trustee, attorney, director, officer, or employee.

B. Accountants -- report:

1. The accountant's report shall be dated, shall have a conformed signature, shall indicate the city and state where issued, and shall identify without detailed enumeration the financial statements covered by the report.

2. The accountant's report shall state whether the audit was made in accordance with generally accepted auditing standards and shall designate any auditing procedures generally recognized as normal or deemed necessary by the accountant under the circumstances of a particular case which have been omitted and the reasons for their omission.

3. Any matters to which the accountant takes exception shall be thoroughly identified; the exception thereto specified and thoroughly stated, and to the extent practicable, the effect of such exception on the related financial statements given.

4. If, with respect to the report of the financial statements, the principal accountant relies on a financial statement by another accountant, the report of such other accountant shall be filed as part of the applicant's financial statement.

C. Opinion to be expressed. The accountant's report shall state clearly:

1. The opinion of the accountant with respect to the financial statements covered by the report and the accounting principles and practices reflected therein; and

2. The opinion of the accountant as to the consistency of the application of the accounting principles, or, as to any changes in such principles which have a material effect on the financial statements.

D. Consents. If any accountant or other professional expert has prepared or audited any report or opinion for use in connection with an application for registration or an exemption for which a filing is required, such accountant or expert must file a copy of a signed consent in connection with such filing. The consent shall be dated within 90 days of the application or filing, unless the Securities Division waives this requirement for good cause shown.

Ariz. Admin. Code § R14-4-120

Former Order S-20; Amended effective August 4, 1982 (Supp. 82-4).