|(a) A firm, may not provide or offer to provide attest
services or use the title "CPA," "CPAs," "CPA Firm," "Certified Public
Accountants," "Certified Public Accounting Firm," or "Auditing Firm"
or any variation of those titles unless the firm holds a firm license
issued by the board or qualifies under a practice privilege. A firm
license is not valid for any date or for any period prior to the date
it is issued by the board and it automatically expires and is no longer
valid after the end of the period for which it is issued. A firm license
does not expire when the application for license renewal is received
by the board prior to its expiration date. An expiration date for
a firm license may be extended by the board, in its sole discretion,
upon a demonstration of extenuating circumstances that prevented the
firm from timely applying for or renewing a firm license.
(b) A firm is required to hold a license issued by
the board if the firm establishes or maintains an office in this state.
(c) A firm is required to hold a license issued by
the board and an individual must practice through a firm that holds
such a license, if for a client that has its principal office in this
state, the individual performs:
(1) a financial statement audit or other engagement
that is to be performed in accordance with SAS;
(2) an examination of prospective financial information
that is to be performed in accordance with SSAE; or
(3) an engagement that is to be performed in accordance
with auditing standards of the PCAOB or its successor.
(d) Each advertisement or written promotional statement
that refers to a CPA's designation and his or her association with
an unlicensed entity in the client practice of public accountancy
must include the disclaimer: "This firm is not a CPA firm." The disclaimer
must be included in conspicuous proximity to the name of the unlicensed
entity and be printed in type not less bold than that contained in
the body of the advertisement or written statement. If the advertisement
is in audio format only, the disclaimer shall be clearly declared
at the conclusion of each such presentation.
(e) The requirements of subsection (d) of this section
do not apply with regard to a person performing services:
(1) as a licensed attorney at law of this state while
in the practice of law or as an employee of a licensed attorney when
acting within the scope of the attorney's practice of law;
(2) as an employee, officer, or director of a federally-insured
depository institution, when lawfully acting within the scope of the
legally permitted activities of the institution's trust department;
(3) pursuant to a practice privilege.
(f) On the determination by the board that a person
has practiced without a license or through an unlicensed firm in violation
of subsection (d) of this section, the person's certificate shall
be subject to revocation and may not be reinstated for at least 12
months from the date of the revocation.
(g) Interpretive Comment: A person who is employed
by an unlicensed firm that offers services that fall within the definitions
of the client practice of public accountancy as defined in §501.52(8)
and (22) of this chapter (relating to Definitions) and §901.003
of the Act (relating to Practice of Public Accountancy) must comply
with the disclaimer requirement found in subsection (d) of this section.
|Source Note: The provisions of this §501.81 adopted to be effective June 11, 2000, 25 TexReg 5339; amended to be effective December 6, 2001, 26 TexReg 9859; amended to be effective April 3, 2002, 27 TexReg 2437; amended to be effective February 4, 2004, 29 TexReg 964; amended to be effective February 17, 2008, 33 TexReg 1096; amended to be effective October 13, 2010, 35 TexReg 9101; amended to be effective December 7, 2011, 36 TexReg 8236; amended to be effective June 10, 2015, 40 TexReg 3566