Rule 5

Statement of Basis and Purpose – February 2008

The statutory authority for the adoption of Rule 5.12 is section 12-2-104(1)(b), C.R.S.  The basis is that the Board is responsible for the renewal, reactivation, and reinstatement of certificates.  The purpose is to aid certificate holders so they know when the requirements of the new Chapter 5 shall take effect.

Rule 7.6

Statement of Basis and Purpose - February 2008
The specific statutory authority is section 12-2-104(1)(b) and (c), C.R.S.  The basis is that the Board has authority to determine certain standards that C.P.A.s must meet according to the Rules of Professional Conduct.  The purpose is to add the word “other” to “professional standards” in this definition to make the term consistent with Rule 7.6 and to update the suite number of the Board’s address.  

Rule 7.14

Statement of Basis and Purpose - February 2008
The statutory basis for the proposed new rule 7.14 is sections 12-2-104(1)(b) and (c), C.R.S.  The basis of Rule 7.14, a new rule, is that the Board has authority to discipline C.P.A.s for various grounds for discipline, including violations of the Rules of Professional Conduct.  Rule 7.14 requires certified public accountants to report the actions by other entities against the C.P.A. or the public accounting firm and certain criminal matters.  Self-reporting by C.P.A.s and firms will allow the Board to obtain more quickly information regarding such matters that may be grounds for disciplinary action against a C.P.A. or firm.