§ 609.033. Accountants.

 (a)  Qualifications of accountants shall be in accordance with the following:

   (1)  The Commission will not recognize any person as a certified public accountant who is not registered and in good standing as such under the laws of the place of such person’s residence or principal office. The Commission will not recognize any person as a public accountant who is not in good standing and entitled to practice as such under the laws of the place of his residence or principal office.

   (2)  The Commission will not recognize any certified public accountant or public accountant as independent who is not in fact independent. For example, an accountant will be considered not independent with respect to any person, or any of its parents, its subsidiaries or other affiliates in which, during the period of his professional engagement to examine the financial statements being reported on or at the date of his report, he or his firm or a member thereof had, or was committed to acquire, any direct financial interest or any material indirect financial interest; or with which, during the period of his professional engagement to examine the financial statements being reported on, at the date of his report or during the period covered by the financial statements, he or his firm or a member thereof was connected as a promoter, underwriter, voting trustee, director, officer or employee, except that a firm will not be deemed not independent in regard to a particular person if a former officer or employe of such person is employed by the firm and such individual has completely disassociated himself from the person and its affiliates and does not participate in auditing financial statements of the person or its affiliates covering any period of his employment by the person. For the purposes of this subsection the term ‘‘member’’ means all partners and principals in the firm; and all professional employes participating in the audit or located in an office of the firm participating in a significant portion of the audit.

   (3)  In determining whether an accountant is in fact independent with respect to a particular registrant, the Commission will give appropriate consideration to all relevant circumstances including evidence bearing on all relationships between the accountant and that registrant or any affiliate thereof, and will not confine itself to the relationships existing in connection with the filing of reports with the Commission.

 (b)  Accountant’s reports shall be in accordance with the following:

   (1)  Auditor’s report format. The format of the auditor’s report shall be in accordance with the reporting standards established by generally accepted auditing standards including Statements on Auditing Standards promulgated by the Auditing Standards Board of the American Institute of Certified Public Accountants.

   (2)  Accountant’s review report format. The format of the accountant’s review report shall be in accordance with the reporting standards established by Statements on Standards for Accounting and Review Services promulgated by the American Institute of Certified Public Accountants.

   (3)  Accountant’s compilation report format. The format of the accountant’s compilation report shall be in accordance with the reporting standards established by Statements on Standards for Accounting and Review Services promulgated by the American Institute of Certified Public Accountants.

   (4)  Certain accountant’s reports. Auditor’s reports, accountant’s review reports or accountant’s compilation reports issued by public accountants are not permitted for reports required by §  609.034 (relating to financial statements).

   The provisions of this §  609.033 issued under the Pennsylvania Securities Act of 1972 (70 P. S. § §  1-101—1-704).

   The provisions of this §  609.033 adopted April 25, 1975, effective April 26, 1975, 5 Pa.B. 980; amended October 1, 1982, effective October 2, 1982, 12 Pa.B. 3500; amended January 8, 1999, effective January 9, 1999, 29 Pa.B. 202. Immediately preceding text appears at serial pages (234947) to (234952).