A person or person practicing under a practice privilege as provided for in §901.462 of the Act, shall not issue a report asserting that financial statements are presented in conformity with generally accepted accounting principles if such financial statements contain any departure from such accounting principles which has a material effect on the financial statements taken as a whole, unless the person or person practicing under a practice privilege as provided for in §901.462 of the Act can demonstrate that by reason of unusual circumstances the financial statement(s) would otherwise have been misleading. The report must describe the departure, the approximate effects thereof, if practicable, and the reasons why compliance with the generally accepted accounting principles would result in a misleading statement. For purposes of this section, generally accepted accounting principles are considered to be defined by pronouncements issued by the Financial Accounting Standards Board and its predecessor entities and similar pronouncements issued by other entities having similar generally recognized authority.

Source Note:The provisions of this §501.61 adopted to be effective June 11, 2000, 25 TexReg 5337; amended to be effective February 17, 2008, 33 TexReg 1091.