PART 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
CHAPTER 501. RULES OF PROFESSIONAL CONDUCT
SUBCHAPTER C. RESPONSIBILITIES TO CLIENTS
22 TAC §501.75
The Texas State Board of Public Accountancy (Board)
proposes an amendment to §501.75, concerning Confidential Client
Communications.
The amendment to §501.75 will make it clear that licensees
must provide client communications and records in response to grand
jury subpoenas.
William Treacy, Executive Director of the Board, has determined
that for the first five-year period the proposed amendment will be in effect:
A. the additional estimated cost to the state expected as a result
of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a
result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the
amendment is in effect the public benefits expected as a result of
adoption of the proposed amendment will be clarification of the accountant/client
confidentiality standards.
The probable economic cost to persons required to comply with the
amendment will be insignificant.
Mr. Treacy has determined that a Local Employment Impact Statement
is not required because the proposed amendment will not affect a local economy.
Mr. Treacy has determined that the proposed amendment will not
have an adverse economic effect on small businesses because the amendment
does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and
a Regulatory Flexibility Analysis are not required because the proposed
amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the
proposed rule from any interested person. Comments must be received
at the Board no later than noon on September 7, 2009. Comments should
be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State
Board of Public Accountancy, 333 Guadalupe Street, Tower 3, Suite
900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the
issues of whether or not the proposed amendment will have an adverse
economic effect on small businesses; if the proposed rule is believed
to have an adverse effect on small businesses, estimate the number
of small businesses believed to be impacted by the rule, describe
and estimate the economic impact of the rule on small businesses,
offer alternative methods of achieving the purpose of the rule; then
explain how the Board may legally and feasibly reduce that adverse
effect on small businesses considering the purpose of the statute
under which the proposed rule is to be adopted; finally describe how
the health, safety, environmental and economic welfare of the state
will be impacted by the various proposed methods. See Texas Government
Code, §2006.002(c).
The amendment is proposed under the Public Accountancy
Act (Act), Texas Occupations Code, §901.151 which authorizes
the Board to adopt rules deemed necessary or advisable to effectuate
the Act.
No other article, statute or code is affected by this proposed amendment.
§501.75.Confidential Client Communications.
Except by permission of the client or the authorized representatives
of the client, a person or any partner, officer, shareholder, or employee
of a person shall not voluntarily disclose information communicated
to him by the client relating to, and in connection with, professional
accounting services or professional accounting work rendered to the
client by the person. Such information shall be deemed confidential.
However, nothing herein shall be construed as prohibiting the disclosure
of information required to be disclosed by the standards of the public
accounting profession in reporting on the examination of financial
statements or as prohibiting disclosures pursuant to a court order
signed by a judge, a congressional or grand jury subpoena,
[
This agency hereby certifies that the proposal has
been reviewed by legal counsel and found to be within the agency's
legal authority to adopt.
Filed with the Office of the Secretary of State on July 23, 2009.
TRD-200903045
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 6, 2009
For further information, please call: (512) 305-7842
SUBCHAPTER C. EDUCATIONAL REQUIREMENTS
22 TAC §511.57
The Texas State Board of Public Accountancy (Board)
proposes an amendment to §511.57, concerning Definition of Accounting
Courses.
The amendment to §511.57 will establish the effective date
for course requirements to take the CPA exam.
William Treacy, Executive Director of the Board, has determined
that for the first five-year period the proposed amendment will be
in effect:
A. the additional estimated cost to the state expected as a result
of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a
result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the
amendment is in effect the public benefits expected as a result of
adoption of the proposed amendment will allow students and colleges
sufficient time to transition into the new requirements.
The probable economic cost to persons required to comply with the
amendment will be insignificant.
Mr. Treacy has determined that a Local Employment Impact Statement
is not required because the proposed amendment will not affect a local
economy.
Mr. Treacy has determined that the proposed amendment will not
have an adverse economic effect on small businesses because the amendment
does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and
a Regulatory Flexibility Analysis are not required because the proposed
amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the
proposed rule from any interested person. Comments must be received
at the Board no later than noon on September 7, 2009. Comments should
be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State
Board of Public Accountancy, 333 Guadalupe Street, Tower 3, Suite
900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the
issues of whether or not the proposed amendment will have an adverse
economic effect on small businesses; if the proposed rule is believed
to have an adverse effect on small businesses, estimate the number
of small businesses believed to be impacted by the rule, describe
and estimate the economic impact of the rule on small businesses,
offer alternative methods of achieving the purpose of the rule; then
explain how the Board may legally and feasibly reduce that adverse
effect on small businesses considering the purpose of the statute
under which the proposed rule is to be adopted; finally describe how
the health, safety, environmental and economic welfare of the state
will be impacted by the various proposed methods. See Texas Government
Code, §2006.002(c).
The amendment is proposed under the Public Accountancy
Act (Act), Texas Occupations Code, §901.151 which authorizes
the Board to adopt rules deemed necessary or advisable to effectuate
the Act.
No other article, statute or code is affected by this proposed amendment.
§511.57.Definition of Accounting Courses.
(a) An individual shall meet the board's accounting
course requirements in one of the following ways:
(1) Hold a baccalaureate or higher degree from a recognized
educational institution as defined by board rule, §511.52 and
present a valid transcript from that institution that shows degree
credit for not fewer than 30 semester hours of accounting courses
as defined in subsection (c) of this section; or
(2) Hold a baccalaureate or higher degree from a recognized
educational institution as defined by board rule, §511.52, and
after obtaining the degree, complete not fewer than 30 semester hours
of accounting courses, as defined in subsection (c) of this section,
from four-year degree granting institutions, or accredited community
colleges, provided that all such institutions are recognized by the
board as defined by board rule, §511.52, and that the accounting
programs offered at the community colleges are reviewed and accepted
by the board.
(b) Credit for hours taken at recognized colleges and
universities using the quarter system shall be counted as 2/3 of a
semester hour for each hour of credit received under the quarter system.
(c) The board will accept not fewer than 30 semester
credit hours of accounting courses without repeat from the courses
listed below. The courses must meet the board's standards by containing
sufficient business knowledge and application to be useful to candidates
taking the Uniform CPA Examination. A recognized educational institution
must have accepted the courses for purposes of obtaining a baccalaureate
degree or its equivalent, and they must be shown on an official transcript.
At least 15 of these hours must result from physical attendance at
classes meeting regularly on the campus of the transcript-issuing
institution. The subject-matter content should be derived from the
Uniform CPA Examination Content Specification Outline and cover some
or all of the following:
(1) financial accounting and reporting for business
organizations that may include:
(A) intermediate accounting;
(B) advanced accounting;
(C) accounting theory;
(2) managerial or cost accounting (excluding introductory level courses);
(3) auditing and attestation services;
(4) internal accounting control and risk assessment;
(5) financial statement analysis;
(6) accounting research and analysis;
(7) up to twelve semester hours of taxation[
(8) financial accounting and reporting for governmental
and/or other nonprofit entities;
(9) up to twelve semester hours of accounting information
systems, including management information systems ("MIS"), provided
the MIS courses are listed or cross-listed as accounting courses,
and the college or university accepts these courses as satisfying
the accounting course requirements for graduation with a degree in
accounting;
(10) fraud examination;
(11) international accounting and financial reporting; and
(12) an accounting internship program (not to exceed
3 semester hours) which meets the following requirements:
(A) the accounting knowledge gained is equal to or
greater than the knowledge gained in a traditional accounting classroom
setting;
(B) the employing firm provides the faculty coordinator
and the student with the objectives to be met during the internship;
(C) the internship plan is approved in advance by the
faculty coordinator;
(D) the employing firm provides a significant accounting
work experience with adequate training and supervision of the work
performed by the student;
(E) the employing firm provides an evaluation of the
student at the conclusion of the internship, provides a letter describing
the duties performed and the supervision to the student, and provides
a copy of the documentation to the faculty coordinator and the student;
(F) the student keeps a diary comprising a chronological
list of all work experience gained in the internship;
(G) the student writes a paper demonstrating the knowledge
gained in the internship;
(H) the student and/or faculty coordinator provides
evidence of all items upon request by the board;
(I) the internship course shall not be taken until
a minimum of 12 semester hours of upper division accounting course
work has been completed.
(13) At its discretion, the board may accept up to
three semester hours of credit as accounting for course work with
substantial merit in the context of a career in public accounting,
provided the course work is predominantly accounting or auditing in
nature but not included in paragraphs (1) - (12) of this subsection.
For any course submitted under this provision, the Accounting Faculty
Head or Chair must affirm to the board in writing its merit and content.
(d) Effective July 1, 2011, the [
(e) The following types of introductory courses do
not meet the accounting course definition in subsection (c) of this
section:
(1) elementary accounting;
(2) principles of accounting;
(3) financial and managerial accounting;
(4) introductory accounting courses; and
(5) accounting software courses.[
(f) Any CPA review course offered by an educational
institution or a proprietary organization shall not be used to meet
the accounting course definition.
This agency hereby certifies that the proposal has
been reviewed by legal counsel and found to be within the agency's
legal authority to adopt.
Filed with the Office of the Secretary of State on July 23, 2009.
TRD-200903044
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 6, 2009
For further information, please call: (512) 305-7842
SUBCHAPTER B. CONTINUING PROFESSIONAL EDUCATION RULES FOR INDIVIDUALS
The Texas State Board of Public Accountancy (Board)
proposes an amendment to §523.118, concerning Limitation for
Non-Technical Courses.
The amendment to §523.118 clarifies the length of time included
in the reporting period that forms the basis for calculating the 50
percent limitation on Certified Public Accountants taking non-technical
Continuing Professional Education credit hours.
William Treacy, Executive Director of the Board, has determined
that for the first five-year period the proposed amendment will be
in effect:
A. the additional estimated cost to the state expected as a result
of enforcing or administering the amendment will be none.
B. the estimated reduction in costs to the state and to local governments
as a result of enforcing or administering the amendment will be none.
C. the estimated loss or increase in revenue to the state as a
result of enforcing or administering the amendment will be none.
Mr. Treacy has determined that for the first five-year period the
amendment is in effect the public benefits expected as a result of
adoption of the proposed amendment will be a consistent application
of the limitation on the taking of non-technical courses. The proposed
revision will make the rule consistent with the language contained
in §523.112.
The probable economic cost to persons required to comply with the
amendment will be insignificant.
Mr. Treacy has determined that a Local Employment Impact Statement
is not required because the proposed amendment will not affect a local
economy.
Mr. Treacy has determined that the proposed amendment will not
have an adverse economic effect on small businesses because the amendment
does not impose any duties or obligations upon small businesses.
Mr. Treacy has determined that an Economic Impact Statement and
a Regulatory Flexibility Analysis are not required because the proposed
amendment will not adversely affect small or micro businesses.
The Board requests comments on the substance and effect of the
proposed rule from any interested person. Comments must be received
at the Board no later than noon on September 7, 2009. Comments should
be addressed to J. Randel (Jerry) Hill, General Counsel, Texas State
Board of Public Accountancy, 333 Guadalupe Street, Tower 3, Suite
900, Austin, Texas 78701 or faxed to his attention at (512) 305-7854.
The Board specifically invites comments from the public on the
issues of whether or not the proposed amendment will have an adverse
economic effect on small businesses; if the proposed rule is believed
to have an adverse effect on small businesses, estimate the number
of small businesses believed to be impacted by the rule, describe
and estimate the economic impact of the rule on small businesses,
offer alternative methods of achieving the purpose of the rule; then
explain how the Board may legally and feasibly reduce that adverse
effect on small businesses considering the purpose of the statute
under which the proposed rule is to be adopted; finally describe how
the health, safety, environmental and economic welfare of the state
will be impacted by the various proposed methods. See Texas Government
Code, §2006.002(c).
The amendment is proposed under the Public Accountancy
Act (Act), Texas Occupations Code, §901.151 which authorizes
the Board to adopt rules deemed necessary or advisable to effectuate
the Act.
No other article, statute or code is affected by this proposed
amendment.
§523.118.Limitation for Non-Technical Courses.
A licensee may not claim more than fifty percent of the total
CPE credit hours required from the non-technical area in
a three year reporting period [
This agency hereby certifies that the proposal has
been reviewed by legal counsel and found to be within the agency's
legal authority to adopt.
Filed with the Office of the Secretary of State on July 23, 2009.
TRD-200903046
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 6, 2009
For further information, please call: (512) 305-7842
in] investigations or proceedings under the Act, [
in]
ethical investigations conducted by private professional organizations,
or in the course of peer reviews.
CHAPTER 511. ELIGIBILITY,]
(including tax research and analysis);
The]
board requires that a minimum of two semester credit hours in research
and analysis relevant to the course content described in subsection
(c)(6) or (7) of this section is completed. The semester hours may
be obtained through a discrete course or offered through an integrated
approach. If the course content is offered through integration, the
university must advise the board of the course(s) that contain the
research and analysis content.
; and,]
CHAPTER 523. CONTINUING PROFESSIONAL EDUCATION
any reporting period].