Texas Administrative Code › Title 22 - EXAMINING BOARDS › Part 22 - TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY › Chapter 501 - RULES OF PROFESSIONAL CONDUCT › Subchapter A - GENERAL PROVISIONS › Section 501.51 - Preamble and General Principles

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  These rules of professional conduct were promulgated under the Public
				  Accountancy Act, which directs the Texas State Board of Public Accountancy to
				  promulgate rules of professional conduct "in order to establish and maintain
				  high standards of competence and integrity in the practice of public
				  accountancy and to ensure that the conduct and competitive practices of
				  licensees serve the purposes of the Act and the best interest of the
				  public."
(b) The services usually
				  and customarily performed by those in the public, industry, or government
				  practice of accountancy involve a high degree of skill, education, trust, and
				  experience which are professional in scope and nature. The use of professional
				  designations carries an implication of possession of the competence associated
				  with a profession. The public, in general, and the business community, in
				  particular, rely on this professional competence by placing confidence in
				  reports and other services of accountants. The public's reliance, in turn,
				  imposes obligations on persons utilizing professional designations to their
				  clients, employers and to the public in general. These obligations include
				  maintaining independence in fact and in appearance, while in the client
				  practice of public accountancy, continuously improving professional skills,
				  observing GAAP and GAAS, when required, promoting sound and informative
				  financial reporting, holding the affairs of clients and employers in
				  confidence, upholding the standards of the public accountancy profession, and
				  maintaining high standards of personal and professional conduct in all
				  matters.
(c) The board has an
				  underlying duty to the public to ensure that these obligations are met in order
				  to achieve and maintain a vigorous profession capable of attracting the bright
				  minds essential to adequately serving the public interest.
(d) These rules recognize the First Amendment
				  rights of the general public as well as licensees and do not restrict the
				  availability of accounting services. However, public accountancy, like other
				  professional services, cannot be commercially exploited without the public
				  being harmed. While information as to the availability of accounting services
				  and qualifications of licensees is desirable, such information should not be
				  transmitted to the public in a misleading fashion.
(e) The rules are intended to have
				  application to all kinds of professional services performed in the practice of
				  public accountancy, including services found at §
										501.52(22)
				  of this chapter (relating to Definitions).
(f) Finally, these rules also recognize the
				  duty of certified public accountants to refrain from committing acts
				  discreditable to the profession. These acts, whether or not related to the
				  accountant's practice, impact negatively upon the public's trust in the
				  profession.
(g) In the
				  interpretation and enforcement of these rules, the board may consider relevant
				  interpretations, rulings, and opinions issued by the boards of other
				  jurisdictions and appropriate committees of professional organizations, but
				  will not be bound thereby.