Part 22.
TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Chapter 501.
PROFESSIONAL CONDUCT
The Texas State Board of Public Accountancy adopts the repeal of Chapter
501, §§501.1-501.4, 501.11-501.15, 501.21-501.26, 501.31-501.33,
501.36-501.43, 501.45-501.49, 501.50 concerning Professional Conduct without
changes to the proposed text as published in the December 10, 1999, issue
of the
Texas Register
(24 TexReg 11060).
The repeal allows the Board to rewrite and relocate the rules contained
in this Chapter.
The repeal will function by having the rules contained in Chapter 501 re-written
and relocated in a more logical manner.
No comments were received regarding adoption of the rule.
Subchapter A. GENERAL PROVISIONS
22 TAC §§501.1 - 501.4
The repeal is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003559
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §§501.11 - 501.15
The repeals are adopted under the Public Accountancy Act,
Tex. Occupations Code, Section 901.151 (Vernon 1999) which provides the agency
with the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
No other article, statute or code is affected by these adopted repeals.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on May 22, 2000.
TRD-200003560
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §§501.21 - 501.26
The repeals are adopted under the Public Accountancy Act,
Tex. Occupations Code, §901.151 (Vernon 1999) which provides the agency
with the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
No other article, statute or code is affected by these adopted repeals.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on May 22, 2000.
TRD-200003561
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §§501.31 - 501.33
The repeals are adopted under the Public Accountancy Act,
Tex. Occupations Code, §901.151 (Vernon 1999) which provides the agency
with the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
No other article, statute or code is affected by these adopted repeals.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on May 22, 2000.
TRD-200003562
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §§501.36 - 501.43, 501.45 - 501.49
The repeals are adopted under the Public Accountancy Act,
Tex. Occupations Code, §901.151 (Vernon 1999) which provides the agency
with the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
No other article, statute or code is affected by these adopted repeals.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on May 22, 2000.
TRD-200003563
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.50
The repeals are adopted under the Public Accountancy Act,
Tex. Occupations Code, §901.151 (Vernon 1999) which provides the agency
with the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
No other article, statute or code is affected by these adopted repeals.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on May 22, 2000.
TRD-200003564
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
Subchapter A. GENERAL PROVISIONS
22 TAC §501.51
The Texas State Board of Public Accountancy adopts new rule
501.51 concerning Preamble and General Principles without changes to the proposed
text as published in the December 10, 1999 issue of the
Texas Register
(24 TexReg 11062).
The new rule allows old rule 501.1 to be relocated and written in clearer
language.
The new rule will function by stating the preamble and general principles
in more precise language.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003528
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.52
The Texas State Board of Public Accountancy adopts new rule
501.52 concerning Definitions with changes to the proposed text as published
in the December 10, 1999 issue of the
Texas Register
(24 TexReg 11063). The changes are deletion of the last sentence in
paragraph (9) (The sentence to be deleted begins with "For" and ends with
"statements") and the addition of the last sentence in paragraph (9) which
reads: "Incidental financial data to support recommendations to a client or
in documents for which the reporting is governed by Statements or Standards
for Attestation Engagements and tax returns and supporting schedules do not
constitute financial statements for the purposes of this definition."
The new rule allows unnecessary definitions from old rule 501.2 to be eliminated,
grammatical changes to be made to existing definitions, a technically correct
definition of "financial statement" to be used, and the rest of the definitions
to be transferred from old rule 501.2.
The new rule will function by having an accurate list of definitions in
the Rules of Professional Conduct.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
§501.52.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise. The
masculine shall be construed to include the feminine or neuter and vice versa,
and the singular shall be construed to include the plural and vice versa.
(1)
Act--The Public Accountancy Act, Chapter 901, Occupations
Code (Vernon's 1999).
(2)
Advertisement--A message which is transmitted to persons
by, or at the direction of, a certificate or registration holder and which
has reference to the availability of the certificate or license holder to
perform professional services.
(3)
Board--The Texas State Board of Public Accountancy.
(4)
Certificate or registration holder--The holders of
all currently valid:
(A)
certificates issued to individuals who have been awarded
the designation certified public accountant by the board pursuant to the Act,
or pursuant to corresponding provisions of a prior Act; and
(B)
registrations with the board for the practice of public
accounting in this state.
(5)
Charitable organization--An organization which
has been granted tax-exempt status under the Internal Revenue Code of 1986, §501(c),
as amended.
(6)
Client--
(A)
The person or entity which retains a certificate or registration
holder for the performance of professional services regardless of the fee
arrangement;
(B)
any person or entity upon whose financial statements the
certificate or registration holder is retained to report or opine, whether
or not this is the same person or entity which retains the certificate or
registration holder.
(7)
Commission--Compensation for recommending or
referring any product or service to be supplied by another person.
(8)
Contingent fee--A fee for any service where no fee
will be charged unless a specified finding or result is attained, or in which
the amount of the fee is otherwise dependent upon the finding or result of
such service. However, a certificate or registration holder's non-contingent
fees may vary depending, for example, on the complexity of the services rendered.
Fees are not contingent if they are fixed by courts or governmental entities
acting in a judicial or regulatory capacity, or in tax matters if determined
based on the results of judicial proceedings or the findings of governmental
agencies acting in a judicial or regulatory capacity, or if there is a reasonable
expectation of substantive review by a taxing authority.
(9)
Financial statements--A presentation of financial
data, including accompanying notes, derived from accounting records and intended
to communicate an entity's economic resources or obligations at a point in
time, or the changes therein for a period of time, in accordance with generally
accepted accounting principles. Incidental financial data to support recommendations
to a client or in documents for which the reporting is governed by Statements
or Standards for attestation Engagements and tax returns and supporting schedules
do not constitute financial statements for the purposes of this definition.
(10)
Firm--A proprietorship, partnership, or professional
or other corporation, or other business engaged in the practice of public
accountancy.
(11)
Good standing--Compliance by a certificate or registration
holder with the Board's licensing rules, including the mandatory continuing
education requirements and payment of the annual license fee, and any penalties
and other costs attached thereto. In the case of board-imposed disciplinary
or administrative sanctions, the certificate or registration holder must be
in compliance with all the provisions of the board order to be considered
in good standing.
(12)
Licensee--The holder of a license issued by the board
to a certificate or registration holder pursuant to the Act, or pursuant to
provisions of a prior act.
(13)
Person--An individual, partnership, corporation,
registered limited liability partnership, or limited liability company.
(14)
Practice of public accountancy--The practice of public
accountancy includes the client practice of public accountancy and the industry
or government practice of public accountancy.
(A)
Client Practice. Client practice of public accountancy
is the offer to perform or the performance by a certificate or registration
holder for a client or a potential client of a service involving the use of
accounting, attesting, or auditing skills. The phrase "service involving the
use of accounting, attesting, or auditing skills" includes:
(i)
the issuance of reports on, or the preparation of, financial
statements, including historical or prospective financial statements or any
element thereof;
(ii)
the furnishing of management or financial advisory or
consulting services;
(iii)
the preparation of tax returns or the furnishing of advice
or consultation on tax matters;
(iv)
the advice or recommendations in connection with the sale
or offer for sale of products (including the design and implementation of
computer software), when the advice or recommendations routinely require or
imply the possession of accounting or auditing skills or expert knowledge
in auditing or accounting; and/or
(v)
litigation support services.
(B)
Industry or government practice. Industry or government
practice of public accountancy is:
(i)
the preparation of, or reporting on, financial statements
(including historical or prospective financial statements or any element thereof)
by an individual licensed under the Act, of the individual's employer or an
entity affiliated with the employer, when the financial statement or report
is to be used by an investor, a third party, or a financial institution;
(ii)
the preparation of a tax return of the individual's employer
or an entity affiliated with the employer, if the tax return is filed with
a taxing authority; or
(iii)
the supervision of those activities described in clauses
(i) and (ii) of this subparagraph.
(C)
A certificate or registration holder not engaged or employed
to any extent in either the client practice of public accountancy or the industry
or government practice of public accountancy is not engaged in the practice
of public accountancy. Furthermore, the preparation of reports exclusively
for internal use by the management and/or board of directors of the individual's
employer or an entity affiliated with the employer is not the practice of
public accountancy.
(D)
For purposes of this section, an entity shall be deemed
"affiliated with" a licensee's employer only if, and so long as, the employer
(directly or indirectly through another entity affiliated with the employer)
possesses the power to direct the management of the entity through ownership
of a majority of the voting securities or other applicable voting equity interests
of the entity.
(15)
Practice unit--An office of a firm required
to be registered with the board for the purpose of practicing public accountancy.
(16)
Professional services--Any services performed or
offered to be performed in the course of the practice of public accountancy.
(17)
Report--When used with reference to financial statements,
means either an engagement performed through the application of procedures
under the Statement on Standards for Accounting and Review Services or any
opinion, report, or other form of language that states or implies assurance
as to the reliability of any financial statements and/or includes or is accompanied
by any statement or implication that the person or firm issuing it has special
knowledge or competence in accounting or auditing. Such a statement or implication
of special knowledge or competence may arise from use by the issuer of the
report of names or titles indicating that he or it is an accountant or auditor
or from the language of the report itself. The term "report" includes any
form of language which disclaims an opinion when such form of language is
conventionally understood to imply any assurance as to the reliability of
the financial statements to which reference is made and/or special competence
on the part of the person or firm issuing such language; and it includes any
form of language conventionally used with respect to a compilation or review
of financial statements, and any other form of language that implies such
special knowledge or competence.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003529
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.53
The Texas State Board of Public Accountancy adopts new rule
501.53 concerning Applicability of Rules of Professional Conduct without changes
to the proposed text as published in the December 10, 1999 issue of the
The new rule allows old rule 501.3 to be transferred to this rule and citations
to other rules to be updated.
The new rule will function by having the old rule concerning applicability
of professional conduct updated and correct citations used.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003530
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.54
The Texas State Board of Public Accountancy adopts new rule
501.54 concerning Conversion Chart and Savings Clause without changes to the
proposed text as published in the December 10, 1999 issue of the
Texas Register
(24 TexReg 11066).
The new rule allows the cites from the repealed Rules of Professional Conduct
to be paired with their new cites and for actions taken by the Board under
the old rules to be valid.
The new rule will function by being able to pair up the old Rules with
their revised counterparts.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003531
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.60
The Texas State Board of Public Accountancy adopts new rule §501.60
concerning Auditing Standards without changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11067).
The new rule allows old §501.22 to be transferred and one minor redundancy
to be eliminated.
The new rule will function by having old §501.3 transferred with updated
citations to other Rules of Professional Conduct.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003532
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.61
The Texas State Board of Public Accountancy adopts new rule §501.61
concerning Accounting Principles without changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11067). The new rule allows old §501.23 to be relocated
and one minor grammatical change to be made.
The new rule will function by having old §501.11 relocated and grammatically
corrected.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003533
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.62
The Texas State Board of Public Accountancy adopts new rule §501.62
concerning Other Professional Standards without changes to the proposed text
as published in the December 10, 1999 issue of the
Texas Register
(24 TexReg 11068).
The new rule allows old §501.24 to be relocated.
The new rule will function by having §501.24 relocated into the reorganized
rules of professional conduct.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003534
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.70
The Texas State Board of Public Accountancy adopts new rule §501.70
concerning Independence without changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11069).
The new rule allows old §501.11 to be relocated and for the language
in subsection (a) to be clarified.
The new rule will function by having the Rule relocated and subsection
(a) easier to read and comprehend.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003535
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.71
The Texas State Board of Public Accountancy adopts new rule §501.71
concerning Receipt of Commissions and Other Compensation without changes to
the proposed text as published in the December 10, 1999, issue of the
The new rule allows old §501.14 to be relocated, elimination of a
redundant list of services, and clearer language to be used.
The new rule will function by having old §501.14 relocated and clarified
so that it will be easier to read and comprehend.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003536
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.72
The Texas State Board of Public Accountancy adopts new rule §501.72
concerning Contingency Fees without changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11072).
The new rule allows old §501.15 to be relocated, elimination of a
redundant list of services and a definition, and clearer language to be used.
The new rule will function by having §501.15 relocated and clarified
so that it is easier to read and comprehend.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003537
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.73
The Texas State Board of Public Accountancy adopts new rule §501.73
concerning Integrity and Objectivity without changes to the proposed text
as published in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11072).
The new rule allows old §§501.12, 501.13 and 501.26 to be relocated
and minor grammatical changes to be made.
The new rule will function by having three similar Rules consolidated and
made easier to read and comprehend.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003538
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.74
The Texas State Board of Public Accountancy adopts new rule §501.74
concerning Competence without changes to the proposed text as published in
the December 10, 1999, issue of the
Texas Register
(24 TexReg 11073).
The new rule allows old §501.21 to be relocated and subsections (a)(1)-(a)(3),
(b), (c), and (d) to be added in order to clarify the general standard in
subsection (a).
The new rule will function by having old §501.21 relocated and clarified
through additional language.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003539
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.75
The Texas State Board of Public Accountancy adopts new rule §501.75
concerning Confidential Client Communications without changes to the proposed
text as published in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11074).
The new rule allows old §501.31 to be relocated and for minor clarifying
changes to be made regarding exceptions to the rule.
The new rule will function by having the old Rule relocated and be easier
to read and comprehend.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003540
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.76
The Texas State Board of Public Accountancy adopts new rule §501.76
concerning Records and Work Papers without changes to the proposed text as
published in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11075).
The new rule allows old §501.32 and §501.33 to be consolidated
and relocated, grammatical and clarifying changes to be made, and an unnecessary
definition to be deleted.
The new rule will function by having two rules relocated, clarified, and
consolidated so that the new rule will be easier to read and comprehend.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003541
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.77
The Texas State Board of Public Accountancy adopts new rule §501.77
concerning Acting through Others without changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11076).
The new rule allows for the relocation and renumbering of rule 501.42.
The new rule will function by relocating and renumbering rule 501.42.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003542
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.80
The Texas State Board of Public Accountancy adopts new rule §501.80
concerning Practice of Public Accountancy without changes to the proposed
text as published in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11077).
The new rule allows old §501.4 to be relocated and clarified and grammatical
changes to be made.
The new rule will function by having the old rule relocated and made easier
to read and comprehend.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003543
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.81
The Texas State Board of Public Accountancy adopts new rule §501.81
concerning Registration Requirements without changes to the proposed text
as published in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11078).
The new rule allows old §501.40 to be relocated, to be written in
a clearer manner, and to update citations to the Public Accountancy Act.
The new rule will function by having the rule relocated, clarified, and
contain updated citations.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003544
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.82
The Texas State Board of Public Accountancy adopts new rule §501.82
concerning Advertising without changes to the proposed text as published in
the December 10, 1999, issue of the
Texas Register
(24 TexReg 11079).
The new rule allows old §501.43 to be relocated, the definitions section
to be reorganized, and clarifying language changes to be used.
The new rule will function by having the old rule relocated, restructured,
and written in clearer language.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003545
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.83
The Texas State Board of Public Accountancy adopts new rule §501.83
concerning Firm Names without changes to the proposed text as published in
the December 10, 1999, issue of the
Texas Register
(24 TexReg 11080).
The new rule allows old §501.47 to be relocated and minor grammatical
and clarifying changes to be made.
The new rule will function by having the old rule relocated and clarified
for easier reading and comprehension.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003546
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.84
The Texas State Board of Public Accountancy adopts new rule §501.84
concerning Form of Practice without changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11082).
The new rule allows old §501.46 to be relocated and unnecessary statutory
citations to be removed.
The new rule will function by having the rule relocated and easier to read
and comprehend.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003547
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.90
The Texas State Board of Public Accountancy adopts new rule §501.90
concerning Discreditable Acts with changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11082). The changes are in sub paragraph (3) where "provisions
of Subchapter K" was replaced with "provisions of Subchapter J".
The new rule allows old §501.41 to be relocated, updated citations
to the Act to be used, and a repetitive subsection to be deleted.
The new rule will function by having the old rule relocated and updated
with a redundancy deleted.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
§501.90.Discreditable Acts.
A certificate or registration holder shall not commit any act that
reflects adversely on his fitness to engage in the practice of public accountancy.
A discreditable act includes but is not limited to:
(1)
fraud or deceit in obtaining a certificate as a certified
public accountant or in obtaining registration under the Act or in obtaining
a license to practice public accounting;
(2)
dishonesty, fraud or gross negligence in the practice
of public accountancy;
(3)
violation of any of the provisions of Subchapter J
or §901.458 of the Act applicable to a person certified or registered
by the board;
(4)
final conviction of a felony or imposition of deferred
adjudication in connection with a criminal prosecution of a felony under the
laws of any state or the United States;
(5)
final conviction of any crime or imposition of deferred
adjudication in connection with a criminal prosecution, an element of which
is dishonesty or fraud under the laws of any state or the United States;
(6)
cancellation, revocation, suspension or refusal to
renew authority to practice as a certified public accountant or a public accountant
by any other state for any cause other than failure to pay the appropriate
registration fee in such other state;
(7)
suspension or revocation of or a voluntary consent
decree concerning the right to practice before any state or federal agency
for a cause which in the opinion of the board warrants its action;
(8)
knowingly participating in the preparation of a false
or misleading financial statement or tax return;
(9)
fiscal dishonesty or breach of fiduciary responsibility
of any type;
(10)
failure to comply with a final order of any state
or federal court;
(11)
repeated failure to respond to a client's inquiry
within a reasonable time without good cause;
(12)
misrepresenting facts or making a misleading or deceitful
statement to a client;
(13)
false swearing or perjury in any communication to
the board or any other federal or state regulatory or licensing authority;
(14)
threats of bodily harm or retribution to a client;
(15)
public allegations of a lack of mental capacity of
a client which cannot be supported in fact;
(16)
causing a breach in the security of the CPA examination;
(17)
voluntarily disclosing information communicated to
the certificate holder by an employer, past or present, or through the certificate
holder's employment in connection with accounting services rendered to the
employer, except:
(A)
by permission of the employer;
(B)
pursuant to the Government Code, Chapter 554 (commonly
referred to as the "Whistle Blowers Act");
(C)
pursuant to a subpoena or other compulsory process in a
court proceeding;
(D)
in an investigation or proceeding by the board under the
Public Accountancy Act; or
(E)
in an ethical investigation conducted by a professional
organization of certified public accountants; and
(18)
breaching the terms of an agreed consent order
entered by the Board or violating any Board Order.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003548
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.91
The Texas State Board of Public Accountancy adopts new rule §501.91
concerning Reportable Events without changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11084).
The new rule allows old §501.36 to be relocated and for clarifying
language on reportable offenses to be used.
The new rule will function by having the old Rule relocated and clarified
for easier reading and comprehension.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003555
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.92
The Texas State Board of Public Accountancy adopts new rule §501.92
concerning Frivolous Complaints without changes to the proposed text as published
in the December 10, 1999, issue of the
Texas Register
(24 TexReg 11085).
The new rule allows old §501.39 to be relocated and renamed, and for
clearer language to be used.
The new rule will function by having the old Rule relocated, renamed and
clarified.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003556
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.93
The Texas State Board of Public Accountancy adopts new rule §501.93
concerning Responses without changes to the proposed text as published in
the December 10, 1999, issue of the
Texas Register
(24 TexReg 11085).
The new rule allows old §501.48 to be relocated and clarifying changes
to be made in subsection (d).
The new rule will function by having the old Rule relocated and clarified.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003557
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §501.94
The Texas State Board of Public Accountancy adopts new rule §501.94
concerning Mandatory Continuing Professional Education without changes to
the proposed text as published in the December 10, 1999, issue of the
The new rule allows old §501.25 to be relocated and proper citations
to other Rules to be used.
The new rule will function by having the old Rule relocated and using updated
citations.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003558
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: December 10, 1999
For further information, please call: (512) 305-7848
22 TAC §507.6
The Texas State Board of Public Accountancy adopts new §507.6
concerning Employee Training and Education Assistance Program without changes
to the proposed text as published in the February 18, 2000 issue of the
The new rule allows the Board to have a policy on providing assistance
for education and training for an employee under certain conditions.
The new rule will function by having rules governing the circumstances
under which the Board will assists its employees' job-related education and
training, which should improve the quality of services offered and performance.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003565
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: February 18, 2000
For further information, please call: (512) 305-7848
22 TAC §507.7
The Texas State Board of Public Accountancy adopts new §507.7
concerning Eligibility without changes to the proposed text as published in
the February 18, 2000 issue of the
Texas Register
(25 TexReg 1250).
The new rule allows the Board to have written criteria regarding achieving
initial eligibility and maintaining eligibility.
The new rule will function by having rules governing the circumstances
under which the Board will assists its employees' job-related education and
training, which should improve the quality of the services offered and performance.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003566
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: February 18, 2000
For further information, please call: (512) 305-7848
22 TAC §507.8
The Texas State Board of Public Accountancy adopts new §507.8
concerning Procedures without changes to the proposed text as published in
the February 18, 2000 issue of the
Texas Register
(25 TexReg 1251).
The new rule allows the Board to have written procedures regarding employee
education and training assistance.
The new rule will function by having rules governing the circumstances
under which the Board will assist its employees' job-related education and
training, which should improve the quality of services offered and performance.
No comments were received regarding adoption of the rule.
The new rule is adopted under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003567
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: February 18, 2000
For further information, please call: (512) 305-7848
Subchapter B. CONTINUING PROFESSIONAL EDUCATION STANDARDS
22 TAC §523.26
The Texas State Board of Public Accountancy adopts an amendment
to §523.26 concerning Program Time Credit Measurement without changes
to the proposed text as published in the March 31, 2000, issue of the
The amendment allows hour-for-hour credit for courses that have been approved
by the Quality Assurance Service (QAS) of the National Association of State
Boards of Accountancy and will allow up to a maximum of the average completion
time for non-QAS approved self-study programs.
The amendment will function by having some self-study programs apply for
and be approved by QAS, which results in more credit being granted to course
participants, which will encourage student participation in approved CPE courses.
No comments were received regarding adoption of the rule.
The amendment is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003568
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: March 31, 2000
For further information, please call: (512) 305-7848
22 TAC §523.32
The Texas State Board of Public Accountancy adopts an amendment
to §523.32 concerning Ethics Course without changes to the proposed text
as published in the March 31, 2000, issue of the
Texas Register
(25 TexReg 2764).
The amendment will remove self-study as an option for the ethics course
from out-of-state residents.
The amendment will function by having out-of-state residents take their
ethics courses by one of two formats that enhance the teaching/learning environment.
No comments were received regarding adoption of the rule.
The amendment is adopted under the Public Accountancy Act, Tex.
Occupations Code, §901.151 (Vernon 1999) which provides the agency with
the authority to amend, adopt and repeal rules deemed necessary or advisable
to effectuate the Act.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on May 22, 2000.
TRD-200003569
William Treacy
Executive Director
Texas State Board of Public Accountancy
Effective date: June 11, 2000
Proposal publication date: March 31, 2000
For further information, please call: (512) 305-7848
Subchapter B. PROFESSIONAL PRACTICES
Subchapter C. PROFESSIONAL STANDARDS
Subchapter D. CLIENT RECORDS
Subchapter E. OTHER RESPONSIBILITIES AND PRACTICES
Chapter 501.
RULES OF PROFESSIONAL CONDUCT
Subchapter B. PROFESSIONAL STANDARDS
Subchapter C. RESPONSIBILITIES TO CLIENTS
Subchapter D. RESPONSIBILITIES TO THE PUBLIC
Subchapter E. RESPONSIBILITIES TO THE BOARD/PROFESSION
Chapter 507.
EMPLOYEES OF THE BOARD
Chapter 523.
CONTINUING PROFESSIONAL EDUCATION
Chapter 527.
QUALITY REVIEW