2023 Texas Statutes › Occupations Code › Title 5 - Regulation of Financial and Legal Services › Subtitle A - Financial Services › Chapter 901 - Accountants › Subchapter A. General Provisions › Section 901.002. General Definitions

Sec. 901.002.  GENERAL DEFINITIONS.  (a)  In this chapter:
(1)  "Attest service" means:
(A)  an audit or other engagement required by the board to be performed in accordance with the auditing standards adopted by the American Institute of Certified Public Accountants or another national accountancy organization recognized by the board;
(B)  an engagement required by the board to be performed in accordance with standards for accounting and review services adopted by the American Institute of Certified Public Accountants or another national accountancy organization recognized by the board;
(C)  an engagement required by the board to be performed in accordance with standards for attestation engagements adopted by the American Institute of Certified Public Accountants or another national accountancy organization recognized by the board;  or
(D)  any other assurance service required by the board to be performed in accordance with professional standards adopted by the American Institute of Certified Public Accountants or another national accountancy organization recognized by the board.
(2)  "Board" means the Texas State Board of Public Accountancy.
(3)   "Certificate" means a certificate issued to a certified public accountant.
(4)  "Certified public accountant" means a person who holds a certificate issued under this chapter or who practices in this state under Section 901.462.
(5)  "Certified public accountancy firm" means a person who holds a firm license or a firm that practices in this state under Section 901.461.
(6)  "Client" means a person who enters into an agreement with a license holder or a license holder's employer to receive a professional accounting service.
(7)  "Corporation" has the meaning assigned by Section 1.002, Business Organizations Code.  The term includes an entity authorized by an equivalent law of another state or a foreign country.
(8)   "Firm" means a sole proprietorship, partnership, corporation, limited liability company, or other business entity engaged in the practice of public accountancy.
(9)  "Firm license" means a license issued under Subchapter H.
(10)  "License" means a license issued under Subchapter I.
(11)  "Peer review" means the study, appraisal, or review of the professional accounting work of a public accountancy firm that performs attest services by a certificate holder who is not affiliated with the firm.
(12)  "Professional accounting services" or "professional accounting work" means services or work that requires the specialized knowledge or skills associated with certified public accountants, including:
(A)  issuing reports on financial statements;
(B)  providing management or financial advisory or consulting services;
(C)  preparing tax returns;  and
(D)  providing advice in tax matters.
(13)  "Public accountant" means a person authorized to practice public accountancy under the Public Accountancy Act of 1945 (Article 41a, Vernon's Texas Civil Statutes).
(b)  The board by rule may define "financial statement" to comply with the standards adopted by generally recognized bodies responsible for setting accounting standards.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.  Amended by Acts 2001, 77th Leg., ch. 1497, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 315 (H.B. 2144), Sec. 1, eff. September 1, 2007.
Acts 2023, 88th Leg., R.S., Ch. 447 (H.B. 2217), Sec. 1, eff. June 9, 2023.