SB146 Alabama 2014 Session

Summary

Primary Sponsor

Jimmy Holley

Republican

Session

Regular Session 2014

Title

Certified Public Accountants (CPA's), Public Accountancy Act, terms "attest" and "report" defined, nonresident certified public accountants with practicing privileges required to meet professional standards, Secs. 34-1-2, 34-1-16, 34-1-17 am'd.

Summary

SB146 updates Alabama's CPA laws to expand what counts as attest work, redefine 'report', and require nonresident CPAs with Alabama practice privileges to follow professional standards.

What This Bill Does

It broadens the definition of attest to cover SSAE engagements in addition to SAS and SSARS and allows these standards to be adopted by reference. It redefines 'report' to include any language that asserts or implies assurance and competence. It requires nonresident CPAs with practicing privileges to provide services in accordance with professional standards and tightens licensing, firm-name, and practice rules, including peer-review requirements. It becomes effective October 1, 2014.

Who It Affects

• Licensed Alabama CPAs and CPA firms: face updated definitions for attest and report, stricter licensing/permit rules, and potential requirements for peer review and proper use of titles and firm names.
• Nonresident CPAs with Alabama practicing privileges: must provide attest/compilation services in line with professional standards and comply with new regulatory requirements.
• Nonlicensees and entities offering financial statements: allowed to prepare statements under safe harbor language but face restrictions on using licensee-style attest language and on issuing reports.
• Accounting firms and offices in Alabama: required to maintain proper permits/registration and to avoid misleading firm names or indications of licensure.

Key Provisions

• ATTEST now includes engagements performed under SAS, SSARS, SSAE, and PCAOB standards, with these standards adopted by reference by the board.
• REPORT is defined to cover any opinion, report, or language that states or implies assurance or special accounting competence.
• Nonresident CPAs with practicing privileges must provide services in accordance with professional standards.
• Tightened rules on titles and firm names to prevent misrepresentation, including registration and permit requirements for firms and offices.
• Imposed peer-review requirement for licensees issuing attest or compilation reports, at least once every three years.
• Safe harbor language is provided to nonlicensees for presenting financial statements without SSARS-compliant reports.
• Restrictions ensure attest services are performed only by those with valid permits and registered offices; outlines continued allowances for certain non-CPA roles and professional activities.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Accountants