1. (a) If a person cannot complete an engagement to provide public accounting services and public accounting work or employment assignment in a manner that complies with the requirements of this chapter, the person shall withdraw from the engagement or resign from the employment assignment.
2. (b) If a person withdraws from an engagement or resigns from an employment assignment pursuant to this section, the person shall inform the client or employer of the withdrawal or resignation.
3. (c) Interpretive Comment: Any withdrawal or resignation shall preferably be in writing. A person shall comply with the requirements of §501.75 of this title (relating to Confidential Client Communications) and §501.90(16) of this title (relating to Discreditable Acts) regarding confidential information of clients and employers during and after a withdrawal or resignation executed pursuant to this section. For purposes of this section, an engagement commences once an engagement letter is signed by the client, time is charged to the engagement, or compensation is received by a person in connection with an engagement or employment assignment.

Source Note:The provisions of this §501.78 adopted to be effective April 7, 2004, 29 TexReg 3475; amended to be effective February 17, 2008, 33 TexReg 1095.