Accy 1.003 Note (b) The investor and investee sign an agreement under which the investor surrenders significant rights as a shareholder.

Accy 1.003 Note (c) Majority ownership of the investee is concentrated among a small group of shareholders who operate the investee without regard to the views of the investor.

Accy 1.003 Note (d) The investor needs or wants more financial information to apply the equity method than is available to the investee’s other shareholders, for example, the investor wants quarterly financial information from an investee that publicly reports only annually, tries to obtain that information, and fails.

Accy 1.003 Note (e) The investor tries and fails to obtain representation on the investee’s board of directors.

Accy 1.003 History History: CR 03-071: (2) to (5), (7), (9), and (11) to (14) renum. from Accy 1.302 (1) (b) to (k) and am. (2), (4), (7), (11), (13) and (14), cr. (intro.), (1), (6), (8), (10) and (15), Register May 2004 No. 581, eff. 6-1-04; 2013 Wis. Act 210: am. (1) Register April 2014 No. 700, eff. 5-1-14; 2015 Wis. Act 217: am. (intro.), cr. (2m), (2r), (7m) Register May 2016 No. 725, eff. 6-1-16.

subch. II of ch. Accy 1 Subchapter II — Professional Conduct, Integrity,
and Objectivity

Accy 1.101 Accy 1.101 Professional conduct.

Accy 1.101(1) (1) The board adopts by reference the “Code of Professional Conduct” published by the American Institute of Certified Public Accountants, effective as of December 15, 2014, except that references to “member” are replaced by “a person licensed to practice as a certified public accountant.”

Accy 1.101(2) (2) All definitions included in the American Institute of Certified Public Accountants’ Code of Professional Conduct shall apply only within that document.

Accy 1.101 Note Note: The AICPA Code of Professional Conduct is available electronically at http://pub.aicpa.org/codeofconduct/Ethics.aspx or may be obtained from:

Accy 1.101 Note American Institute of Certified Public Accountants

Accy 1.101 Note 1211 Avenue of the Americas

Accy 1.101 Note New York, NY 10036-8775

Accy 1.101 History History: Cr. Register, June, 1974, No. 222, eff. 7-1-74; cr. (2), Register, December, 1974, No. 228, eff. 1-1-75; cr. (2) (d), Register, February, 1976, No. 242, eff. 4-1-76; cr. (2) (e), Register, January, 1977, No. 253, eff. 3-1-77; r. and recr. (1) and cr. (2) (f), Register, July, 1979, No. 283, eff. 9-1-79; r. and recr. (2) (a), am. (2) (d) 2. intro. and d., cr. (2) (g), Register, July, 1980, No. 295, eff. 8-1-80; corrections made under s. 13.93 (2m) (b) 1. and 5., Stats., Register, March, 1993, No. 447; CR 02-120: r. and recr. Register November 2003 No. 575, eff. 12-1-03; 2013 Wis. Act 210: am. Register April 2014 No. 700, eff. 5-1-14; 2015 Wis. Act 217: r. and recr. Register May 2016 No. 725, eff. 6-1-16.

Accy 1.102 Accy 1.102 Integrity and objectivity. No person licensed to practice as a certified public accountant may do any of the following:

Accy 1.102(1) (1) Knowingly misrepresent facts.

Accy 1.102(2) (2) When engaged in the practice of public accounting, including the rendering of tax and management advisory services, subordinate his or her judgment to others.

Accy 1.102 History History: Cr. Register, June, 1974, No. 222, eff. 7-1-74; corrections made under s. 13.93 (2m) (b) 5., Stats., Register, March 1993, No. 447; CR 03-071: am. Register May 2004 No. 581, eff. 6-1-04; 2015 Wis. Act 217: renum. to (intro.), (1), (2) and am. Register May 2016 No. 725, eff. 6-1-16.

subch. III of ch. Accy 1 Subchapter III — Competence and Technical Standards

Accy 1.201 Accy 1.201 General standards.

Accy 1.201(1) (1) A person licensed to practice as a certified public accountant shall comply with all of the following general standards as interpreted by bodies designated by the American Institute of Certified Public Accountants Council, and must justify any departures therefrom:

Accy 1.201(1)(a) (a) Professional competence. A certified public accountant shall undertake only those engagements which the certified public accountant or the firm can reasonably expect to complete with professional competence.

Accy 1.201(1)(b) (b) Due professional care. A certified public accountant shall exercise due professional care in the performance of an engagement.

Accy 1.201(1)(c) (c) Planning and supervision. A certified public accountant shall adequately plan and supervise an engagement.

Accy 1.201(1)(d) (d) Sufficient relevant data. A certified public accountant shall obtain sufficient relative data to afford a reasonable basis for conclusions or recommendations in relation to an engagement.

Accy 1.201(1)(e) (e) Forecasts. A certified public accountant shall not permit the certified public accountant’s name to be used in conjunction with any forecast of future transactions in a manner which may lead to the belief that the certified public accountant vouches for the achievability of the forecast. This paragraph does not prohibit a certified public accountant from preparing, or assisting a client in the preparation of, forecasts of the results of future transactions. When a certified public accountant’s name is associated with such forecasts, there shall be the presumption that such data may be used by parties other than the client. Therefore, full disclosure must be made of the sources of the information used and the major assumptions made in the preparation of the statements and analyses, and character of the work performed by the member, and the degree of the responsibility he or she is taking.

Accy 1.201(2) (2) Interpretations of s. Accy 1.201, not intended to be all-inclusive, are as follows:

Accy 1.201(2)(a) (a) A certified public accountant who accepts a professional engagement implies that he or she has the necessary competence to complete the engagement according to professional standards, applying the certified public accountant’s knowledge and skill with reasonable care and diligence, but the certified public accountant does not assume a responsibility for infallibility of knowledge or judgment.

Accy 1.201(2)(b) (b) Competence in the practice of public accounting involves both the technical qualifications of the certified public accountant and his or her staff and the ability to supervise and evaluate the quality of the work performed. Competence relates both to knowledge of the profession’s standards, techniques and the technical subject matter involved, and to the capability to exercise sound judgment in applying such knowledge to each engagement.