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Understanding the Role of a Person Associated with a Public Accounting Firm
Definition & Meaning
The term "person associated with a public accounting firm" refers to various individuals who have a professional connection to a public accounting firm. This includes roles such as proprietors, partners, shareholders, and professional employees like accountants. It also encompasses independent contractors who engage with the firm in activities related to audit reports. These individuals may share in the firm's profits or receive compensation, and they often act on behalf of the firm in various capacities.
Table of content
Legal Use & context
This term is commonly used in the context of public accounting and financial reporting. It is particularly relevant in legal matters concerning audit reports and the responsibilities of accounting firms. Understanding who qualifies as a "person associated with a public accounting firm" is crucial in areas such as corporate governance, compliance, and investor protection. Users can manage related forms or procedures using templates available through platforms like US Legal Forms, which are drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: An accountant who works at a public accounting firm and participates in preparing audit reports is considered a person associated with that firm.
Example 2: A partner in a public accounting firm who shares in the firm's profits and represents the firm in client meetings also qualifies under this definition.
Relevant laws & statutes
The primary legal reference for this term is found in Title 15 of the United States Code, Section 7201, which outlines the definitions related to public accounting firms and their associated personnel. This statute is part of the Sarbanes-Oxley Act, which aims to enhance corporate governance and accountability.
Comparison with related terms
Term
Definition
Differences
Accountant
A professional who performs accounting tasks.
Broader category; not all accountants are associated with public firms.
Public Accounting Firm
A firm that provides accounting services to the public.
This term refers to the organization rather than the individuals associated with it.
Common misunderstandings
What to do if this term applies to you
If you believe you are a person associated with a public accounting firm, it is important to understand your rights and responsibilities. Consider reviewing your firm's policies and the legal implications of your role. If you need assistance, explore US Legal Forms for templates that can help you navigate related legal matters. For complex situations, consulting a legal professional is advisable.
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