TITLE 22. EXAMINING BOARDS
PART 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
CHAPTER 501. RULES OF PROFESSIONAL CONDUCT
SUBCHAPTER
A.
The Texas State Board of Public Accountancy adopts an amendment to §501.52 concerning Definitions, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 617) and will not be republished.
The amendment deletes the reference to a section of the Board's rules that no longer exists. A reference is not needed.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500895
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §501.53, concerning Applicability of Rules of Professional Conduct, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 619) and will not be republished.
Licensees practicing through a practice privilege in this state must comply with all of the Board's rules of professional conduct. In addition, non-attest financials are not issued in accordance with accounting principles as they do not express and opinion and licensees not in the client practice of public accounting may issue non-attest transmittals without a firm license.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500896
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §501.55 concerning Definition of Acronyms, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 621) and will not be republished.
Government Auditing Standards is more accurately referred to as Generally Accepted Government Auditing Standards and that is added to the current acronym and TSBPA is added to the acronym in our rules.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500897
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
SUBCHAPTER
B.
The Texas State Board of Public Accountancy adopts an amendment to §501.60 concerning Auditing Standards, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 622) and will not be republished.
Auditing standards of the Public Company Accounting Oversight Board (PCAOB) also includes PCAOB rules.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500898
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §501.63 concerning Reporting Standards, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 623) and will not be republished.
Peer review does not apply to preparation engagements even though it is a very limited attest service.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500899
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
SUBCHAPTER
C.
The Texas State Board of Public Accountancy adopts new rule §501.79 concerning Transfer or Return of Files Resulting from the Sale, Transfer, Discontinuation or Acquisition of Practice, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 624) and will not be republished.
A licensee that sells its' client's files must notify the client of the change in firms when the licensee continues to practice with the new firm. A licensee who sell his firm's client files must obtain permission of the client prior to the transfer of the client files when the licensee does not work with the new firm as an employee or owner. A licensee that discontinues his practice must maintain the confidentiality of the client files and arrange for the return of the client files to the client when requested.
No comments were received regarding adoption of the new rule.
The new rule is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500900
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
SUBCHAPTER
D.
The Texas State Board of Public Accountancy adopts an amendment to §501.81 concerning Firm Licensing, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 625) and will not be republished.
A licensee may provide non-attest accounting services through a non-licensed firm and use the CPA credential in association with the firm but must include the notice that the firm is not a CPA firm and the firm is not regulated by Board each time the licensee uses the CPA credential.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500901
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
SUBCHAPTER
E.
The Texas State Board of Public Accountancy adopts an amendment to §501.90 concerning Discreditable Acts, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 627) and will not be republished.
The current rules identify acts that the Board may consider discreditable and subject to disciplinary action. The rule also states that there could be additional acts that the Board may find discreditable. The rule is being revised to only include acts that it has identified. The practice has been to hold licensees accountable for only those acts identified. The licensee should have the right to know what behavior the Board believes is unacceptable and thus sanctionable.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500902
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §501.93 concerning Responses, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 628) and will not be republished.
The rule is being updated to recognize email communications with the Board in addition to postal service mail.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500903
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842
CHAPTER 507. EMPLOYEES OF THE BOARD
22 TAC §507.4The Texas State Board of Public Accountancy adopts an amendment to §507.4 concerning Confidentiality, without changes to the proposed text as published in the January 31, 2025, issue of the Texas Register (50 TexReg 629) and will not be republished.
Section 901.160 of the Public Accountancy Act states that information regarding a disciplinary action is confidential prior to the information going to public hearing. The proposed rule revision makes it clear that a complaint investigation that does not result in disciplinary action is also not public information. The purpose of the provision in the Public Accountancy Act is to protect unproven allegations from becoming public information.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 and §901.655 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 13, 2025.
TRD-202500904
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 2, 2025
Proposal publication date: January 31, 2025
For further information, please call: (512) 305-7842