SB93 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2012

Title

Boards and Profession, redefine the term attest, add new sections regarding privity statute of limitations, venue, and expert witnesses relating to accountants, Sec. 34-1-2 am'd; Secs. 34-1-23 to 34-1-26, inclusive, added

Summary

SB93 redefines 'attest' to cover more types of accounting engagements and adds new rules on privity, time limits, venue, and expert witnesses for licensed accountants and firms.

What This Bill Does

It expands what counts as an attest engagement to include engagements performed under SAS, SSARS, SSAE, and PCAOB standards. It adds new sections that limit who can sue licensees or firms, establish a two-year statute of limitations with a discovery rule and a four-year cap, set where lawsuits can be filed, and require expert witnesses to be 'similarly situated' licensees. It also restricts liability in certain non-client scenarios and limits disclosure about professional liability insurance.

Who It Affects

• CPAs and Alabama accounting firms (licensees) by changing how they are defined in attest services, tightening liability exposure, and imposing new rules for expert testimony and venue.
• Clients, issuers, and other parties relying on financial statements or information prepared by licensees or firms, who face new conditions for bringing claims, defined venues, and specific reliance requirements.

Key Provisions

• Attest definition expanded to include engagements performed under SAS, SSARS, SSAE, and PCAOB standards, with standards adopted by reference by the board.
• 34-1-23: Sets who can sue licensees or firms (clients/issuers or those who engaged the licensee/firm, or those with explicit reliance information) and restrictions on who may bring claims.
• 34-1-24: Establishes a two-year statute of limitations for actions, with a discovery rule (up to six months after discovery) and a hard four-year cap; establishes when the time starts.
• 34-1-25: Establishes proper venue for actions (county where statements were generated or, for individuals, where they reside; for others, where the claimant's principal office is located).
• 34-1-26: Allows expert testimony only from a 'similarly situated licensee' and sets requirements for being considered similarly situated; bars certain disclosures about professional liability insurance; makes insurance limits not discoverable.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Boards and Profession