| (a) A firm providing attest services or using the titles
CPAs, CPA Firm, Certified Public Accountants, Certified Public Accounting
Firm, Auditing Firm, or a variation of any of those titles shall do
so only through a licensed firm.
(b) To be eligible for a firm license, the firm must
show:
(1) that a majority of the ownership of the firm, in
terms of both financial interests and voting rights, belongs to individuals
who hold certificates issued under this chapter or are licensed as
a CPA in another state; or
(2) that when the firm ownership includes professional
organizations, as defined in §301.003(7) of the Texas Business
Organizations Code, the professional organizations must be owned by
individuals that hold a certificate issued under this chapter or are
licensed in another state; and
(3) that all attest services performed by the firm
in this state are under the supervision of an individual within the
firm who holds a certificate issued by the board or by another state
that has not been suspended or revoked.
(c) Financial interests shall include but shall not
be limited to stock shares, capital accounts, capital contributions,
and equity interests of any kind. Financial interests also include
contractual rights and obligations similar to those of partners, shareholders
or other owners of an equity interest in a legal entity.
(d) Voting rights shall include but shall not be limited
to any right to vote on the firm's ownership, business, partners,
shareholders, management, profits, losses and/or equity ownership.
(e) Interpretive comment: A licensee offering non-attest
services as defined in §901.005 of the Act (relating to Findings;
Public Policy; Purpose) through an unlicensed firm in accordance with
§501.81(d) of this title may not use the CPA designation in the
unlicensed firm's name. For example: John Smith may not use the firm
name "John Smith, CPA" unless the firm is licensed by the board.
(f) Interpretive comment: §901.351(a) of the Act
(relating to Firm License Required), §501.81(a) of this title
and subsection (a) of this section require a firm license in order
to use the CPA designation except as provided for in §501.81(d)
of this title.
(g) Interpretive comment: A professional organization
includes a professional corporation or professional limited liability
company.
|
| Source Note: The provisions of this §513.10 adopted to be effective August 4, 2004, 29 TexReg 7307; amended to be effective August 17, 2008, 33 TexReg 6376; amended to be effective June 11, 2014, 39 TexReg 4433; amended to be effective April 13, 2016, 41 TexReg 2592; amended to be effective June 7, 2017, 42 TexReg 2935 |
