Activity Review
North Carolina State
Board of Certified Public
Accountant Examiners
1101 Oberlin Rd., Ste. 104 • PO Box 12827 • Raleigh, NC 27605 • 919-733-4222 • www.nccpaboard.gov • No. 08-2011
Does Serving as a Campaign Treasurer
Require You to Undergo Peer Review?
With local, state, and national candidate
filing periods well underway, you, as a
CPA, may find yourself asked to serve
as a campaign treasurer for a political
campaign.
Depending on the nature of the
campaign-local, state, or national-your
duties may require you to complete cer¬
tain campaign finance reporting forms.
For a national campaign, this would
require the completion of the Federal
FEC Form 3 and for a state campaign,
completion of the North Carolina forms
CRO-UOO and CR-1100.
The Board asked James W.
Brackens, Jr., CPA, Vice President of
Ethics and Practice Quality for the
A1CPA, "Would the performance of
these duties require you to undergo a
peer review based solely on the prepara¬
tion and signing of such documents?"
Brackens directed our attention to
the following interpretation issued by
the A1CPA Accounting and Review
Services Committee ( AR Sec tion 9080) :
Applicability ofSSARS No. 19 When
Performing Controllership or Other Man¬
agement Services
.21 Question - If the accountant is
in the practice of public accounting and
provides an entity with controllership or
other management services that entail tire
submission of financial statements, is tire
accountant required to fblloiv tire require¬
ments of section 80?
.22 Interpretation - If the accountant
is in the practice of public accounting as
defined by the AICPA's Code of Conduct
(ET sec. 92par. .25) and is not a stockholder,
partner, director, officer, or employee of
the entity, the accountant is required to
follow the performance and communica¬
tion requirements of section 80, includ¬
ing any requirement to disclose a lack of
independence.
.23 If the accountant is in thepractice of
public accounting and is also a stockholder,
partner, director, officer, or employee of
the entity, the accountant may either (a)
comply wi th the requiremen ts of section 80),
or (b) communicate, preferably in writing,
the accountant's relationship to the entity
(for example, stockholder, partner, director,
officer, or employee). The following is an
example of the type of communication that
may be used by the accountant:
The accompanying balance sheet
of Company X as of December 31,
2
0ХХ,
and the related statemen ts
of income and cash flows for the
year then endedhave been prepared
by [name of accountant], CPA. I
havepreparedsuch financial state¬
ments in my capacity [ describe
capacity, for example, as a director]
of Company X.
.24 If an accountant is notin theprac¬
tice of public accounting, the issuance of a
report under SSARS would be inappropri¬
ate; however, thepreviouslymentionedcom-
munication maybeused. [Issue Date: July
2002, Revised December 2010 (formerly
Interpretation No. 21 to section 100).]
Brackens also stated that, "In addi¬
tion to the suggested communication
provided above, a communication of
one's relationship to an entity may be
achieved by other means, such as by a
signature line on a standardized form
that indicates the capacity of the signer
(such as campaign treasurer)."
Furthermore, "if the
СРА/
cam¬
paign treasurer prepared and signed the
report, which clearly indicates his/her
capacity as campaign treasurer, and did
not issue a separate compilation report,
then SSARS No. 19 would not apply."
"Accordingly, the preparation and
signing of such campaign reports would
not subject the CPA to a peer review
under A1CPA Standards." This is ap¬
plicable whether tire CPA is in public
practice or employed in industry.
If you have questions regarding
this article, please contact Robert N.
Brooks at rbrooks@nccpaboard.gov
or J. Michael Barham, CPA, at mbar-
ham@nccpaboard.gov. Thank you to
James W. Brackens, Jr., CPA, for his
assistance with this article.
In This Issue
2011 Board Meetings . 2
Board Office Closed . 5
Certificates Issued . 5
Disciplinary Actions . 2
Disciplinary Actions Resulting
from CPE Audit . 4
Inactive Status . 7
In Memoriam:
Maximo Mukelabai . 3
New Exam Fees . 4
Reclassifications . 6
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