The Public Accountancy Act - Texas

1 chapter 901of theOccupations CodeEffective as of September 1, 2019 Prepared as an information brochure onlyand not necessarily in conformitywith chapter 901, Occupations CodeTexas State Board of Public Accountancy505 E. Huntland Drive, Suite 380 Austin, Texas 78752-3757(512) Accountancy ActTheThe Public Accountancy ActChapter 901 of the Occupations CodeContentsSubchapter A. general provisions Sec. Short Sec. general Sec. Meaning and Implication of Sec. Practice of Public Sec. Construction; Sec. Findings; Public Policy; Sec. Application of Sunset subchapter B. Texas State Board of Public Accountancy Sec. Board Sec. Eligibility of Public Sec. Membership and Employee Sec. Sec. Officers; Executive Sec. Grounds for Sec. Per Diem; Sec.

2 Member Sec. C. Executive Director and Other Board Personnel Sec. Executive Director and Sec. Division of Sec. Qualifications and Standards of Conduct Sec. Career Ladder Program; Performance Sec. Equal Employment Opportunity Policy; D. Board Powers and Duties Sec. general Powers and Duties of Sec. Advisory Sec. Appointment of Board Public Accountancy ActChapter 901 of the Occupations CodeSec. Enforcement Sec. Scholarship Trust Fund for Fifth-Year Accounting Rules of Professional Rules on Consequences of Criminal Rules for Rules Restricting Competitive Sec. Peer Availability and Confidentiality of Certain Board Privilege for Certain Immunity from Sec. Outside Legal Sec. Rules for Attest Authority to Issue Subpoena, Administer Oath, and Receive Negotiated Rulemaking and Alternative Dispute Resolution Technology Criminal History Record E.

3 Public Interest Information and Complaint Procedures Sec. Public Interest Sec. Sec. Complaint Sec. Public F. Certificate Requirements Sec. Certificate Sec. Eligibility Sec. Background Sec. Education Sec. Special Education Requirements for Part-time Sec. Work Experience Sec. Oath and Certificate Public Accountancy ActChapter 901 of the Occupations Code Sec. Transfer of Complete Examination Credit Between Sec. Certification Based on Sec. Certificate Based on Foreign G. Uniform CPA Examination Sec. Administration; Board Sec. Application of Sec. Filing Sec. Examination Sec. Frequency of Sec. Content and Security of Sec. Grading Sec. Examination Sec. Sec. Conditional Examination Sec. Restructure of Sec.

4 Transfer of Partial Examination Credit Between H. Firm License Requirements Sec. Firm License Sec. Application for Firm License or Sec. Resident Sec. Firm License Information and Sec. Registration for Certain Foreign subchapter I. License Requirements, Issuance, and Renewal Sec. License Sec. Eligibility Requirements; general Sec. Application for and Renewal of Sec. Notice of License Sec. Procedure for Sec. Consequence of Failure to Pay Certain Sec. Fee Reduction for Retired Persons or Persons with Sec. Continuing Professional Public Accountancy ActChapter 901 of the Occupations CodeSubchapter J. Practice of Public Accountancy Sec. Use of title or Abbreviation for Certified Public Accountant ..38 Sec. Use of title or Abbreviation for Public Accountant.

5 38 Sec. Use of Other Titles or Sec. title Used by Certain Out-of-State or Foreign Sec. Name Requirements and Sec. Reports on Financial Statements; Use of Name or Signature on Certain Sec. Accountant-Client Sec. Loss of Sec. Applicability of Partnership Requirements to Sec. Performing Attest Sec. Practice by Certain Out-of-State Sec. Practice by Out-of-State Practitioner With Substantially Equivalent K. Prohibited Practices and Disciplinary Procedures Sec. Disciplinary Powers of Sec. Grounds for Disciplinary Sec. Board Action Involving Sec. License Revocation Based on Violation of Sec. Emergency Sec. Procedure Pending Final Conviction of Certain Sec. Voluntary Surrender of Certificate or Firm License ..50 Sec. Sec.

6 Right to Sec. Notice of Sec. Legal Representation at Sec. Disciplinary Action for Act Committed in Another Public Accountancy ActChapter 901 of the Occupations CodeSubchapter L. Administrative Penalty Sec. Imposition of Administrative Sec. Amount of Sec. Report and Notice of Violation and Sec. Penalty to Be Paid or Hearing Sec. Sec. Options Following Decision: Pay or Sec. Collection of Sec. Remittance of Penalty and M. Other Penalties and Enforcement provisions Sec. Cease and Desist Sec. Injunctive Sec. Sec. Criminal Sec. Intervention in Sec. Single Act as Evidence of Sec. Appointment of Secretary of State as Sec. Immunity from N. Scholarships for Fifth-Year Accounting Students Sec. Sec. Public Sec. Sec.

7 Sec. Sec. Scholarship Sec. Sec. Minority and Disadvantaged Student Sec. Report on Accountant Scholarship : Other Amendments to chapter 901 of the Occupations Code Sec. 22..60 Sec. 23..61 vThe Public Accountancy ActChapter 901 of the Occupations CodeCHAPTER 901. ACCOUNTANTSSUBCHAPTER AGeneral ProvisionsSec. SHORT title . (a) This chapter may be cited as the Public Accountancy Act. (b) A reference in law to the Public Accountancy Act of 1979 or the Public Accountancy Act of 1991 means this general DEFINITIONS. (a) In this chapter : (1) Attest service means: (A) an audit or other engagement required by the board to be performed in accordance with the auditing standards adopted by the American Institute of Certified Public Accountants or another national Accountancy organization recognized by the board; (B) an engagement required by the board to be performed in accordance with standards for accounting and review services adopted by the American Institute of Certified Public Accountants or another national Accountancy organization recognized by the board.

8 (C) an engagement required by the board to be performed in accordance with standards for attestation engagements adopted by the American Institute of Certified Public Accountants or another national Accountancy organiza- tion recognized by the board; or (D) any other assurance service required by the board to be performed in accordance with professional standards adopted by the American Institute of Certified Public Accountants or another national Accountancy organiza- tion recognized by the board. (2) Board means the Texas State Board of Public Accountancy . (3) Certificate means a certificate issued to a certified Public accountant. (4) Certified Public accountant means a person who holds a certificate issued under this chapter or who practices in this state under Section Public Accountancy ActChapter 901 of the Occupations Code2 (5) Certified Public Accountancy firm means a person who holds a firm license or a firm that practices in this state under Section (6) Client means a person who enters into an agreement with a license holder or a license holder s employer to receive a professional accounting service.

9 (7) Corporation means a corporation authorized by a statute applicable to this state or by an equivalent law of another state or a foreign country, including a professional Public accounting corporation organized under The Texas Professional Corporation Act (Article 1528e, Vernon s Texas Civil Statutes). (8) Firm means a sole proprietorship, partnership, corporation, limited liability company, or other business entity engaged in the practice of Public Accountancy . (9) Firm license means a license issued under subchapter H. (10) License means a license issued under subchapter I. (11) Peer review means the study, appraisal, or review of the professional accounting work of a Public Accountancy firm that performs attest services by a certificate holder who is not affiliated with the firm.

10 (12) Professional accounting services or professional accounting work means services or work that requires the specialized knowledge or skills associated with certified Public accoun- tants, including: (A) issuing reports on financial statements; (B) providing management or financial advisory or consulting services; (C) preparing tax returns; and (D) providing advice in tax matters. (13) Public accountant means a person authorized to practice Public Accountancy under the Public Accountancy Act of 1945 (Article 41a, Vernon s Texas Civil Statutes). (b) The board by rule may define financial statement to comply with the standards adopted by generally recognized bodies respon- sible for setting accounting MEANING AND IMPLICATION OF REPORT.