12 AAC 04.010. Independence

(a) An accountant or accounting firm shall express a disclaimer of an opinion on financial statements of any enterprise if accountant or accounting firm is not independent of that enterprise and shall disclose the lack of independence.

(b) An accountant or accounting firm is not independent if

(1) during the period of professional engagement, or at the time of expressing an opinion, the accountant or any member of the accounting firm had or was committed to acquire a direct or indirect financial interest in the enterprise; or

(2) during the period of professional engagement or the period covered by the financial statements, or at the time of expressing an opinion, the accountant or any member of the accounting firm was connected with the enterprise as a promoter, underwriter, voting trustee, director, officer, or employee.

(c) For purposes of this section, the word "director" shall not include gratuitous service to a charitable, religious, or nonprofit organization.

History: Eff. 1/20/63, Register 7; am 9/9/72, Register 43; am 1/18/78, Register 64; am 4/10/88, Register 106

Authority: AS 08.04.070 (b)

AS 08.04.080

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