| (a) A person in the performance of professional accounting
services or professional accounting work shall maintain integrity
and objectivity, shall be free of conflicts of interest and shall
not knowingly misrepresent facts nor subordinate his or her judgment
to others. In tax practice, however, a person may resolve doubt in
favor of his client as long as any tax position taken complies with
applicable standards such as those set forth in Circular 230 issued
by the IRS and the AICPA's SSTSs.
(b) A conflict of interest may occur if a person performs
a professional accounting service or professional accounting work
for a client or employer and the person has a relationship with another
person, entity, product, or service that could, in the person's professional
judgment, be viewed by the client, employer, or other appropriate
parties as impairing the person's objectivity. If the person believes
that the professional accounting service or professional accounting
work can be performed with objectivity, and the relationship is disclosed
to and consent is obtained from such client, employer, or other appropriate
parties in writing, then this rule shall not operate to prohibit the
performance of the professional accounting service or professional
accounting work because of a conflict of interest.
(c) Certain professional engagements, such as audits,
reviews, and other services, require independence. Independence impairments
under §501.70 of this chapter (relating to Independence), its
interpretations and rulings cannot be eliminated by disclosure and
consent.
(d) A person shall not concurrently engage in the practice
of public accountancy and in any other business or occupation which
impairs independence or objectivity in rendering professional accounting
services or professional accounting work, or which is conducted so
as to augment or benefit the accounting practice unless these rules
are observed in the conduct thereof.
(e) Interpretive comment: An email communication will
satisfy the requirement for written disclosure of a conflict of interest
in subsection (b) of this section.
|
| Source Note: The provisions of this §501.73 adopted to be effective June 11, 2000, 25 TexReg 5338; amended to be effective February 4, 2004, 29 TexReg 963; amended to be effective February 17, 2008, 33 TexReg 1093; amended to be effective December 7, 2011, 36 TexReg 8234; amended to be effective June 3, 2020, 45 TexReg 3632 |
