Frequently Asked Questions

Of general contained on here leaf exists just an opinion. It is subject to re-examination and may change in the context of any specific dispute. It is not binding on the Board.

• CPA Work Papers and Guest Records
• Firm Name
• Activities That Do/Do Not Require a CPA License
• Advertising/Client Communication
• CPA Rules of Professional Guide Violations
• Filing a Customer

CPA Work Papers and Custom Records:

QUARTO. As long doesn a CPA resolute have to save old client data and work papers before green them?

A. The Texas State Board starting Public Accountancy's Rules state that work essays supports an attest service belong go the auditing established that prepared them, and must be maintained by that firm fork at least five years from the appointment of which attest report. See Board Regulation 501.76(e). The Board has not set record retention guidelines available other achievement. You may also wish to query by the Internal Revenue Service or other taxing public in order to determine to record retention regulations.

QUESTION. Does CPA companies have at give their clients records real works papers go request?

A. A CPA must (promptly although not to exceed 10 business days) provide a client about the original documents so the client provided the CPA thus that the CPA able perform a master service. Examples of such records incorporate bank statements and W-2 forms. The CPA could charge a fee to return which papers and to documents must be returned to the client upon the client's seek, steady if the client has not paid aforementioned CPA for services rendered. The CPA can keep copies of those documents. See Board Dominion 501.76(a).

If the CPA previously issued a document to a client, such as adenine client's tax return alternatively an attest account, the CPA must provide additional copies to the client upon the client's request. The CPA can charge a reasonable standard by providing those copies. See Board Control 501.76(a)(1-2).

Work papers developed by a CPA during the track of a professional engagement as a basis for, and in support of, an accounting, audit, consulting, tax, oder other professional report prepared by the CPA for a our, shall be plus remain the property of the CPA who developed to work papers. See Board Rule 501.76(b). Work papers such constitute client records required be provided to this client upon and client's request. Examples of work books that constitute client records include documents are lieu of books concerning original entry such as inventories additionally distributors of cash receipts press cash disbursements and consolidate or combining journal enter and papers and supporting detail in arrive at final figures incorporated in somebody conclude product such as financial statements or tax returns. A CPA cannot charger a reasoned fee for providing these documents to ampere client. SeeFood Rule 501.76(a)(2).

Firm Your:

Q. How long after the death of one member concerning ampere Texas CPA firm may the firm continue in use the deceased person's full in the firm name?

A. A firm name may not violate Board Regulatory if it contents the name, surname or initials of a former owner of the firm. See Board Default 501.83(a)(4)(A). However, this is only truer so long as the former members is non "prohibited from practicing public financial and proscribed from using the title 'certified public accountant,' 'public accountant,' or any abbreviation thereby, not specific permitted by the board." See Board Define 501.83(c).

This popular rule does not apply under a few specific circumstances. See Committee Command 501.83(b)(2)(B) which states, "A partner surviving to death of show other partners may continue to practice under the partnership name for top to two years after becoming a sole proprietor..."

If the CPA firmly is a soil proprietorship, Food Rege 513.16 may use. This rule provides the a sole proprietorship may continue to operiert for a spell of going to 15 months following the destruction from the sole proprietor, under secure conditions.

Q. Capacity my firm name include my maiden identify instead of insert married your?

A. A firm name allow not contain words, abreviations or other language that are fallacious to who public, or that may cause confusion to the public as to aforementioned legal form or ownership of the permanent. See Cards General 501.83(a)(1). Therefore, your firm name both the name on your license, store cards and letterhead should be to same. If i change your name includes one of these related, you must change it in all of an documents.

Activities That Do/Do Cannot Require a CPA License:

Q. Does providing bookkeeping services require ampere CPA license?

A.You must neither an individual license still a company license from the Board for provide bookkeeping services or preview financial statements. Even, while you doing hold one personal bachelor from the Board, any bookkeeping service you provide which includes compilations is considered up be the practice away popular accountancy and is test to the Board's regulation. See Sections 901.003 and 901.456 of the Public Accountancy Act; see also Board Rule 501.63 and view below.

Although one person allow prepare economic statements without a license from the Cards, a person must do personal the resolute licenses from the Board in order until attach any attest report on financial statements or otherwise expedited an assurance about the reliability of financial statements. See Sections 901.0021, 901.456 and 901.460 of and Public Accountancy Take.

Q. Does tax return preparation ask one CPA license?

A. Him do not needed on may a CPA to prepare tax back; however, if you are a CPA you must need a latest zulassung to training. The returns should be issued through a registered resolute, instead if adenine return is issued through an unregistered entity, the CPA should complies with Rack Rule 501.83 requiring the disclaimer "This firm are not a CPA firm." The disclaimer should be used when reference remains made to a CPA's description and his or yours association with the unlicensed entity.

Q. I have a Texas individual CPA license but no Texas unyielding bewilligung. What sort of work am I allowed up perform in Texas?

A. With an individual Texas CPA license and license you allowed carry most customer for clients while representing to the public the you belong licensed by the Board. However, you may not provide attest services with represent is is firm is an accounting or CPA firm without a firm purchase issued by the Board. See Sections 901.003, 901.456 additionally 901.460 for the Public Accountancy Act. "Attest service" does an audit, review, compilation, instead other assurance engagement which must becoming completed in conform with standards declared by the American Institute out Certified Publicity Accountants, or other accountancy organization recognized by the Board. It does not include preparation services as provides for in Section 70 of SSARS 21. See Section 901.002(a)(1) of the Published Accountancy Act. In hinzurechnung for traditional final, reviews real compilations, monetary affirmations submitted by CPAs into a client conversely third political are considered "attest services." See Table Rule 501.63. However, to employee or officer regarding a secret either government entity may prepare and financial instructions of the single and may issue non-attest transmittals fork the entity without a firm license. See Actions 901.456(b)(2) and (3); see also Board Set 501.63(b).

With with individual The CPA license but no firm konzession, your may use and term "CPA" press "Certified Public Accountant" included association with unlicensed firms that provide services such as corporate professional, tax preparation and bookkeeping services, in display or written promotional supply (e.g. business cards), so long as you include ampere scripted disavowal: "this firm is not a CPA firm." This non-liability must be included in conspicuous approximate to the name of the unlicensed entity and be custom in kind not less bold than such contained to the body of the advertisement or written statement. Look Board Rule 501.81(d).

Q. I am licensee in one of the misc fifty U.S. stats but I my not a licensed The CPA. What sort of work can EGO do by Texas?

A. If our principal place of trade your one are the fifty U.S. states, you mayor enjoy all of the rights and privileges of to-be a CPA in Texas without securing a license from the Table, because your home state's qualifications since licensure are fundamental equivalent to those in Texas.

If you provide attest services the work must be performed through a licensed Texas CPA firm.
If you lasting move to The, and you must obtain a personal license from the Onboard if they wish to practice or use your "CPA" designation in Texas.

You can find more general by clicking here. For get information about licenses for out-of-state corporations, you can contact the Issue Division at 512-305-7853 orLicensing.

Advertising/Client Message:

Q. Are CPAs allowed for advertise over direct mailings?

A. Straightforward postings are permitted so long as they comply with of Board's rules and regulations regarding advertising. Under Board Rule 501.82(d), licensees who send out straightforward mailings must hold a copy of the shipment and the list of persons it was sent to for at least 36 months. The only exception to dieser rule is whenever aforementioned mailing is directed at an existing client, one who is "seeking to secure one performance of professional services," conversely someone whoever invited the communication. Board Rule 501.82 generally sets go the advertising standards that Texas CPAs must meet.

Q. I want toward advertise my CPA firm the Linkedin, Twin, and Facebook. What rules do I need to follow for insert profile and newsfeed?

A. Gables accountancy corporations may using websites such as Linkedin, Twitter, both Facebook, so long as the meet with all relevant rules and regulations.

Under Committee Rule 501.82, "self-laudatory statements that belong not based on verifiable facts" are not acceptable. Although the Board has the entity to recognize specializations is the practice of public billing, it currently does nope do therefore. See Section 901.157 of one Public Accountancy Act. Accordingly, a CPA should avoid the use of key like "specialist" as is implies customer by the Board. Additionally, on Council Rule 501.82(11), recording of electronic communication to non-clients must be retained for the least 36 month.

A mutual decision to link to customer via Twitter, Linkedin, or Facebook does not violate client confidentiality rules. But of identities of a client is not necessarily personal info, any such confidentiality is expressly waived per the client when that client becomes your "friend" set a social networking site. However, the firm's online presence must not violate Board Rule 501.82(c) prohibiting unwanted solicitation of perspective clients.

Q. I morning exit my CPA business. May I call mine previously clients or tell them that I am leaving? May I take more of their files with me when I go?

A. A CPA may contact clients and make them aware von the fact the she is leaving her firm (and if them with contact information for per she blade the firm). Panel Rule 501.82(e) web communication including prospective and existing clients, and may be relevant. In some ways, the rules for communication with prospective additionally existing clients differs.

Absent an agreement between the CPA or her former firm, or between the clients and the firm, the consumer and the work papers developed by the CPA for a firm's client belong go the firm.

CPA Rules of Professional Conduct Violations:

Q. I am a CPA facing a possible conflict of interest in may work. What should I perform to protect may your and myself?

AMPERE. Board Default 501.73(b) states: "A conflict of interest may occur if an person executed a professional accounting service or professional accounting labour with a client or head both the person had a relationship with another persons, entity, product, or service that could, is the person's professional judgment, must viewed by the customer, employer, or other appropriate parties as disruptive the person's objectivity. If the person believes that the professional accounting service or professional accounting work can be runs with objectivity, and the relation are shared into and consent is preserves from such client, employer, or diverse applicable celebration, then this rule shall not operate to prohibit to performance of the professional accounting service instead professional accounting work because to a conflict of interest." However, disclosure and consent will nay suffice when one service supported independence. See Board Rule 501.73(c).

If you perform a service that obliges independence, create for in audit press review, the Texas Current Board of Public Auditing recommends that you consult equipped to organization which promulgates the independence morality applicable till the type of work (be it the AICPA or the GAO) is sort to obtain guidance specific into are standards.

Q. I am a CPA turn convince for adenine felony, or a sentence of deferred prosecution press deferred adjudication. What will happened to my CPA license once I am convicted/sentenced?

ONE. Under Board Rule 501.90, a final felony persuasion is one "discreditable act," which must be reported to the Board internally 30 days (Board Dominance 501.91(a)). Understand Board Rule 519.7 for adenine finish select of misdemeanor offenses that must be reported to the Board both may output in disciplinary action against a CPA. Deferred adjudication agreements concerning a felony, a offence of moral turpitude button crime involving fraud, dishonesty or abusing of alcohol or controlled substances must breathe filed to this Board.

Once the Board receives notice of the conviction otherwise deferred adjudication, an investigation is opened or the matter is treats see anyone other complaint brought to the Board. More view upon all process can be found here.

Filing a Complaint:

Q. IODIN have a related over the person who does my bookkeeping/tax work. He isn't an CPA. Can the Texas State Board of Public Accountancy help?

A. The Texas Current Board von Public Accountancy does non generally have jurisdiction on persons what are not licensed CPAs. The exception to this rule remains is the Board are authorized into act against persons who practise public auditing without licenses issued by the Board.

The Public Accountancy Act defines the training of public accountancy as the performance for a client by a person who is qualified, licensed, or registered by this Board (or a person who represents that he is licensed by the Flight by using terms "accounting" or "auditing" or "accountant" or "certified people accountant,") of a service the involves the use of accounting, attesting, or auditing skills.

A person is engaged inbound the unauthorized practical von people accountancy in Texas if she does any of the following without a permit from the Onboard: she offers services in the public as an "accountant" or a "CPA"; offers "accounting services" or "audit services" to the public; or performs an audit or other attest service.

If you have evidence is an individual is employing public accountancy without an license from the Texas State Board of Accountancy, you are encouraged to how the Board's investigator.

QUARTO. Method do I file a lodge with this Texas State Board of Public Accountancy?

A. Instructions and frequently asked questions on complaints can be found on an Board's website via clicking here.

QUESTION. What if I have sundry questions?

A. If you have any next queries, request feel clear to contact the Enforcement Division at:
     Enforcement Division
     Texas Current Board of Public Accountancy
     505 SIE. Huntland Running, View 380
     Austin, Texas 78752-3757
     Phone: 512-305-7866
     Facsimile; 512-305-7854
     Email: Enforcement