S.D. Admin. R. 20:75:05:10

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:75:05:10 - Client records

Terms used in this section are as follows:

(1) Client-provided records are accounting or other records belonging to the client that were provided to the licensee on behalf of the client;

(2) Client records prepared by the licensee or firm are accounting or other records such as tax returns, general ledgers, subsidiary journals, and supporting schedules such as detailed employee payroll records and depreciation schedules that the licensee was engaged to prepare for the client;

(3) Supporting records are information not reflected in the client's books and records that are otherwise not available to the client with the result that the client's financial information is incomplete. Supporting records include adjusting, closing, combining, or consolidating journal entries, including computations supporting such entries that are produced by the licensee during an engagement;

(4) Licensee's working papers include audit programs, analytical review schedules, and statistical sampling results, analyses, and schedules prepared by the client at the request of the licensee.

Upon request, a licensee must furnish to a client or former client any requested client-provided records, client records prepared by the member, or supporting records that are in the custody or control of the licensee or firm. A licensee may withhold client records prepared by the licensee if the preparation of such records is not complete or there are fees due the licensee for the engagement to prepare those records. A licensee may withhold supporting records if there are fees due to the member for the specific work product.

Once a licensee has complied with the client's or former client's requests, the licensee need not comply with any subsequent requests to provide the same information, unless subsequent to complying with a request, a client experiences a loss of records due to a natural disaster or an act of war. In such cases, the licensee shall comply with an additional request to provide such records.

Licensee's working papers are the property of the licensee and need not be provided to the client, unless a contractual agreement exists requiring the licensee to do so.

When a licensee is required to return or provide records to a client, the licensee should comply with the client's request as soon as practicable, but no later than 45 days after the request is made.

A licensee may charge the client a reasonable fee for the time and expense incurred to retrieve and copy such records and require that such fee be paid before the records are provided to the client, provide the requested information in any format usable by the client, and make and retain copies of any records returned or provided to the client.

S.D. Admin. R. 20:75:05:10

29 SDR 16, effective 8/14/2002; 33 SDR 107, effective 12/26/2006.

General Authority: SDCL 36-20B-12(4).

Law Implemented: SDCL 36-20B-40, 36-20B-41.