Ala. Admin. Code r. 30-X-6-.05 - Other Responsibilities And Practices
Current through Register Vol. 40, No. 6, March 31, 2022
(1)
Conduct in
General. A Certified Public Accountant or Public Accountant shall
conduct himself in a manner which will contribute to the honor and dignity of
the State and the profession and shall not at any time commit an act or engage
in any conduct discreditable to the public accounting profession.
(2)
Disbarment by Treasury,
Agencies, or Boards. A Certified Public Accountant or a Public
Accountant shall conduct himself in a manner which will not cause him to be
suspended or disbarred from practice before the Treasury Department or other
federal agency, or have his CPA certificate issued by any other state or
territory revoked or suspended. Such disbarment, revocation or suspension shall
automatically raise the question of unprofessional conduct.
(3)
Advertising and Other Forms
of Solicitation. A registrant shall not seek to obtain clients by
advertising or other forms of solicitation in a manner that is false,
misleading, or deceptive.
(4)
Commissions.
(a)
Prohibited Commissions. A member in public practice
shall not for a commission recommend or refer to a client any product or
service, or for a commission recommend or refer any product or service to be
supplied by a client, or receive a commission, when the member or the member's
firm also performs for that client
1. an audit
or review of a financial statement; or
2. a compilation of a financial statement
when the member expects, or reasonably might expect, that a third party will
use the financial statement and that member's compilation report does not
disclose a lack of independence; or
3. an examination of prospective financial
information.
This prohibition applies during the period in which the member is engaged to perform any of the services listed above the period covered by any historical financial statements involved in such listed services.
(b)
Disclosure of Permitted Commissions. A member in
public practice who is not prohibited by this rule from performing services for
or receiving a commission and who is paid or expects to be paid a commission
shall disclose that fact to any person or entity to whom the member recommends
or refers a product or service to which the commission relates.
(c)
Referral Fees.
Any member who accepts a referral fee for recommending or referring any service
of a CPA to any person or entity or who pays a referral fee to obtain a client
shall disclose such acceptance or payment to the client.
(5)
Incompatible
Occupations. A person who is engaged in the practice of public
accounting shall not concurrently engage in any business or occupation which
would create a conflict of interest in rendering professional
services.
(6)
Form of
Practice and Name. A registrant may practice public accounting,
whether as an owner or employee, only in the form of a sole proprietorship, a
partnership, a professional association, professional corporation, limited
liability company, limited liability partnership, or any other form of business
entity now or hereafter recognized by Alabama law. All firms regardless of
their business form shall be duly registered with the Board. A registrant shall
not practice public accounting under a firm name which is misleading or is
misleading as to the type of organization (proprietorship, partnership, or
corporation). However, names of one or more past partners or shareholders may
be included in the firm name of a successor business entity recognized by
Alabama law.
(7)
Professional Corporations. Professional corporations
practicing public accounting in Alabama, in addition to matters covered by
other rules of the Board, shall comply with the following:
(a) All shares of stock shall be owned by
Certified Public Accountants if practicing as Certified Public Accountants, or
by Certified Public Accountants or Public Accountants if practicing as Public
Accountants.
(b) Members of the
Board of Directors need not be shareholders of the professional corporation or
professional association, provided, however, that at least one member of the
Board shall be duly licensed to practice public accountancy either as a
Certified Public Accountant or Public Accountant in the State of Alabama, and
provided further that no member of the Board who is not duly licensed to
practice as a Certified Public Accountant or Public Accountant in the State of
Alabama shall participate in any decisions affecting the technical aspects of
public accountancy.
(c) The chief
executive officer shall be a Certified Public Accountant or Public
Accountant.
(d) Revocation or
suspension of the CPA certificate or permit held by the chief executive office
shall also affect a corresponding revocation or suspension of the right to
practice public accounting by the professional corporation, unless the Board
specifically grants a continuance of such right to
practice.
(8) Each office
established or maintained in this State by a certified public accountancy
("Practice unit") shall comply with the annual registration, reporting, and
response requirements of Code of Ala. 1975, §
34-1-10,
and Chapter 30-X-8.
Notes
Author: Alabama Board of Public Accountancy
Statutory Authority: Code of Ala. 1975, § 34-1-3.
The following state regulations pages link to this page.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.