1. (a) A Firm, including a sole proprietorship, may not provide attest services or use the title "CPA," "CPAs," "CPA Firm," "Certified Public Accountants," "Certified Public Accounting Firm," or "Auditing Firm" or any variation of those titles unless the firm holds a firm license.

2. (b) An individual may not provide attest services unless:

   1. (1) the individual has a license or registration issued under the Act; and
   2. (2) the individual offers the attest services through an entity holding a firm license.
3. (c) Each advertisement or written promotional statement that refers to a CPA's designation and his or her association with an unlicensed entity in the client practice of public accountancy must include the disclaimer: "This firm is not a CPA firm." The disclaimer must be included in conspicuous proximity to the name of the unlicensed entity and be printed in type not less bold than that contained in the body of the advertisement or written statement. If the advertisement is in audio format only, the disclaimer shall be clearly declared at the conclusion of each such presentation.

4. (d) The requirements of subsection (c) of this section do not apply with regard to a certificate or registration holder performing services:

   1. (1) as a licensed attorney at law of this state while in the practice of law or as an employee of a licensed attorney when acting within the scope of the attorney's practice of law; or
   2. (2) as an employee, officer, or director of a federally-insured depository institution, when lawfully acting within the scope of the legally permitted activities of the institution's trust department.
5. (e) On the third determination by the board that a certificate holder has practiced without a license or through an unregistered entity in violation of subsection (c) of this section, the individual's certificate shall be subject to revocation and may not be reinstated for at least 12 months from the date of the revocation.
6. (f) Interpretive Comment: A certificate or registration holder who is employed by an unlicensed firm that offers services that fall within the definitions of the client practice of public accountancy as defined in §501.2(9) and §501.2(19) of this title (relating to Definitions) and §901.003 of the Act (relating to Practice of Public Accountancy) must comply with the disclaimer requirement found in subsection (c) of this section.

Source Note:The provisions of this §501.81 adopted to be effective June 11, 2000, 25 TexReg 5339; amended to be effective December 6, 2001, 26 TexReg 9859; amended to be effective April 3, 2002, 27 TexReg 2437; amended to be effective February 4, 2004, 29 TexReg 964.