Texas Administrative Code › Title 22 - EXAMINING BOARDS › Part 22 - TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY › Chapter 501 - RULES OF PROFESSIONAL CONDUCT › Subchapter E - RESPONSIBILITIES TO THE BOARD/PROFESSION › Section 501.90 - Discreditable Acts

Current through Reg. 49, No. 28; July 12, 2024
A person shall not commit any act that reflects adversely
					 on that person's fitness to engage in the practice of public accountancy. A
					 discreditable act includes but is not limited to and the board may discipline a
					 person for the following:
(1) fraud or
				  deceit in obtaining a certificate as a CPA or in obtaining registration under
				  the Act or in obtaining a license to practice public accounting;
(2) dishonesty, fraud or gross negligence in
				  the practice of public accountancy;
(3) violation of any of the provisions of
				  Subchapter J or §901.458 of the Act (relating to Loss of Independence)
				  applicable to a person certified or registered by the board;
(4) final conviction of a felony or
				  imposition of deferred adjudication or community supervision in connection with
				  a criminal prosecution of a felony under the laws of any state or the United
				  States;
(5) final conviction of any
				  crime or imposition of deferred adjudication or community supervision in
				  connection with a criminal prosecution, an element of which is dishonesty or
				  fraud under the laws of any state or the United States, a criminal prosecution
				  for a crime of moral turpitude, a criminal prosecution involving alcohol abuse
				  or controlled substances, or a criminal prosecution for a crime involving
				  physical harm or the threat of physical harm;
(6) a revocation, cancellation, placement on
				  probation, limitation on the scope of practice, or suspension by another state,
				  or a refusal of renewal by another state, of the authority issued by that state
				  to the person, or to the person's partner, member, or shareholder, to engage in
				  the practice of public accountancy for a reason other than the failure to pay
				  the appropriate authorization fee;
(7) suspension or revocation of or any
				  consent decree concerning the right to practice before any state or federal
				  regulatory or licensing body for a cause which in the opinion of the board
				  warrants its action;
(8) a final
				  finding of conduct by state or federal courts of competent jurisdiction,
				  agencies, boards, local governments or commissions for violations of state or
				  federal laws or rules or findings of unethical conduct by licensees that engage
				  in activities regulated by entities including but not limited to: the Public
				  Company Accounting Oversight Board, Internal Revenue Service, U.S. Securities
				  and Exchange Commission, U.S. Department of Labor, U.S. General Accounting
				  Office, U.S. Housing and Urban Development, Texas State Auditor, Texas
				  Comptroller of Public Accounts, Texas Securities Board, Texas Department of
				  Insurance, and the Texas Secretary of State;
(9) knowingly participating in the
				  preparation of a false or misleading financial statement or tax
				  return;
(10) fiscal dishonesty or
				  breach of fiduciary responsibility of any type;
(11) failure to comply with a final order of
				  any state or federal court;
(12)
				  repeated failure to respond to a client's inquiry within a reasonable time
				  without good cause;
(13)
				  intentionally misrepresenting facts or making a misleading or deceitful
				  statement to a client, the board, board staff or any person acting on behalf of
				  the board;
(14) giving intentional
				  false sworn testimony or perjury in court or in connection with discovery in a
				  court proceeding or in any communication to the board or any other federal or
				  state regulatory or licensing body;
(15) threats of bodily harm or retribution to
				  a client;
(16) public allegations
				  of a lack of mental capacity of a client which cannot be supported in
				  fact;
(17) voluntarily disclosing
				  information communicated to the person by an employer, past or present, or
				  through the person's employment in connection with accounting services rendered
				  to the employer, except:
(A) by permission of
				  the employer;
(B) pursuant to the
				  Government Code, Chapter 554 (commonly referred to as the "Whistle Blowers
				  Act");
(C) pursuant to:
(i) a court order signed by a
				  judge;
(ii) a summons under the
				  provisions of:
(I) the Internal Revenue Code
				  of 1986 and its subsequent amendments;
(II) the Securities Act of 1933
				  (15
				  U.S.C. §
														77a et seq.) and its subsequent
				  amendments; or
(III) the Securities
				  Exchange Act of 1934 (15 U.S.C. §
														78a
				  et seq.) and its subsequent amendments;
(iii) a congressional or grand jury subpoena;
				  or
(iv) applicable federal laws,
				  federal government regulations, including requirements of the PCAOB;
(D) in an investigation or
				  proceeding by the board;
(E) in an
				  ethical investigation conducted by a professional organization of
				  CPAs;
(F) in the course of a peer
				  review under §901.159 of the Act (relating to Peer Review); or
(G) any information that is required to be
				  disclosed by the professional standards for reporting on the examination of a
				  financial statement.