NAC628.500. Adoption by reference of Code of Professional Conduct; exceptions.

     1. The Board hereby adopts by reference the Code of Professional Conduct adopted by the American Institute of Certified Public Accountants, as that code existed on June 1, 2003, with the following exceptions:

     (a) References to “member” are amended to refer to “practitioner.”

     (b) The definition of “financial statements” in ET Section 92 is amended to read as follows:

          (1) “Financial statements” means:

               (I) Any statements or footnotes related thereto that purport to demonstrate the financial condition of a person at a particular time or the change in a person’s financial condition during a particular period; or

               (II) Any statements prepared using a cash or other comprehensive basis of accounting.

          (2) The term includes balance sheets, statements of income, statements of retained earnings, statements of cash flows and statements of changes in equity.

          (3) The term does not include incidental financial data that is included in reports concerning advisory services for management made to support recommendations to a client, tax returns or schedules in support of a tax return, or the statement, affidavit or signature of the person who prepares a tax return.

     (c) The definition of “practice of public accounting” in ET Section 92 is amended to have the meaning ascribed to it in NRS 628.023.

     (d) The disclosure required pursuant to Section B of Rule 503 must:

          (1) Include the amount of the commission expressed in dollars or the method, described in plain language, used to calculate the commission;

          (2) Include the name of the person or entity paying the commission;

          (3) Be written;

          (4) Be made on or before the date of referral or recommendation; and

          (5) Be signed and dated.

     (e) The statement, affidavit or signature of the preparer of a tax return does not constitute an opinion on a financial statement, and the preparer of the tax return is not required to make a disclaimer of such an opinion.

     (f) The Board does not adopt by reference pursuant to this section Appendix B of the ET Appendixes of the Code of Professional Conduct.

     2. A copy of the Code of Professional Conduct may be obtained:

     (a) By mail from the American Institute of Certified Public Accountants, Attn: Order Department, Harborside Financial Center, 201 Plaza Three, Jersey City, New Jersey 07311, at a cost of $13.75 for a printed copy; or

     (b) On-line from the American Institute of Certified Public Accountants at its website at http://www.aicpa.org/about/code/index.html, free of charge.

     (Added to NAC by Bd. of Accountancy, eff. 12-13-96; A by R169-99, 12-13-99; R094-01, 10-17-2001; R056-05, 11-17-2005)