S.D. Admin. R. 20:75:07:01

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

Section 20:75:07:01 - Definitions

Terms used in this chapter mean:

(1) "Accounting and auditing practice," all engagements covered by "Statements on Auditing Standards" (SAS), "Statements on Standards for Accounting and Review Services" (SSARS), "Statements on Standards for Attestation Engagements" (SSAE) for Financial Forecasts and Projections (AICPA, Professional Standards, vol. 1, AT sec. 301 and 801), attest services on financial information when the firm audits, reviews, or compiles the historical financial statements of the client, and standards for financial and compliance audits contained in Government Auditing Standards ("Yellow Book") December 2011 Revision, or July 2018 Revision, as applicable, issued by the U. S. General Accounting Office;

(2) "Engagement review," a review required of a firm that only performs services under "Statements for Accounting and Review Services" or "Statements on Standards for Attestation Engagements" not included in system reviews;

(3) "Equivalent review," a peer review conducted by the American Institute of Certified Public Accountants, a state licensing board, or an accounting association or society in accordance with the review standards in §§ 20:75:07:09 to 20:75:07:15, inclusive;

(4) "Pass report," a report issued as the result of a peer review that describes no significant deficiencies in the professional standards in §§ 20:75:05:05 and 20:75:05:06;

(5) "Pass with deficiency or fail report," a pass with deficiency or fail report issued as the result of a peer review that describes significant deficiencies in the professional standards in §§ 20:75:05:05 and 20:75:05:06;

(6) "Professional standards," professional standards in §§ 20:75:05:05 and 20:75:05:06;

(7) "Quality control system," the five elements of quality control described in "Statement on Quality Control Standards (SQCS)," No. 2, vol. 2, QC Section 10, and "Statements on Quality Control Standards," published in AICPA Professional Standards, Volume 2, as of July 1, 2019;

(8) "Report review," a review required of a firm that only performs compilation engagements under "Statements for Accounting and Review Services" where the firm has compiled financial statements that omit substantially all disclosures;

(9) "System review," a review required of a firm that performs engagements under the "Statements on Auditing Standards" (SAS), "Statements on Standards for Accounting and Review Services" (SSARS), "Statements on Standards for Attestation Engagements" (SSAE), or "Government Auditing Standards" (GAS), or performs examinations of prospective financial statements under "Statements on Standards for Attestation Engagements";

(10) "Year of review," the calendar year during which a peer review is to be conducted; in the case of an equivalent review, the fiscal or calendar year during which a peer review is to be conducted;

(11) "Year under review," the calendar year prior to the year of review; in the case of an equivalent review, the fiscal or calendar year prior to the year of review.

S.D. Admin. R. 20:75:07:01

29 SDR 16, effective 8/14/2002; 30 SDR 119, effective 2/9/2004; 33 SDR 107, effective 12/26/2006; 35 SDR 165, effective 12/22/2008; 35 SDR 305, effective 7/1/2009; 36 SDR 216, effective 7/6/2010; 39 SDR 33, effective 9/5/2012; 39 SDR 219, effective 6/24/2013; 41 SDR 111, effective 1/19/2015; 45 SDR 084, effective 12/31/2019; 45 SDR 084, effective 1/1/2020; 46 SDR 153, effective 7/9/2020

General Authority: SDCL 36-20B-12(9).

Law Implemented: SDCL 36-20B-36.

References: Government Auditing Standards, December 2011 Revision, or July 2018 Revision, as applicable. United States Government Accountability Office. Copies may be viewed at the board's office or obtained from the United States Government Accountability Office, Washington, DC 20548, or their website at www.gao.gov/yellowbook. Cost: Government Auditing Standards, December 2011 Revision, first copy free, each additional copy $2; AICPA Professional Standards, Volume 2, as of July 1, 2019, American Institute of Certified Public Accountants. Copies may be viewed at the board's office or obtained from American Institute of Certified Public Accountants, 220 Leigh Farm Road, Durham, NC 27707. Cost: Member $199/Non-Members $249. Conduct of review -- Requirements, § 20:75:07:09.