PART 22. TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
CHAPTER 501. RULES OF PROFESSIONAL CONDUCT
SUBCHAPTER B. PROFESSIONAL STANDARDS
The Texas State Board of Public Accountancy (Board) proposes an amendment to §501.62 concerning Other Professional Standards.
Background, Justification and Summary
The Board attempts to identify, as much as possible, all professional standards that a CPA is expected to adhere to. Forensic services is a professional standard that has not previously been identified.
Fiscal Note
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost to the state, no estimated reduction in costs to the state and to local governments, and no estimated loss or increase in revenue to the state, as a result of enforcing or administering the amendment.
Public Benefit
The adoption of the proposed rule amendment will specifically identify a professional standard not previously listed.
Probable Economic Cost and Local Employment Impact
Mr. Treacy, Executive Director, has determined that there will be no probable economic cost to persons required to comply with the amendment and a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Small Business, Rural Community and Micro-Business Impact Analysis
William Treacy, Executive Director, has determined that the proposed amendment will not have an adverse economic effect on small businesses, rural communities or micro-businesses because the amendment does not impose any duties or obligations upon small businesses, rural communities or micro-businesses; therefore, an Economic Impact Statement and a Regulatory Flexibility Analysis are not required.
Government Growth Impact Statement
William Treacy, Executive Director, has determined that for the first five-year period the amendment is in effect, the proposed rule: does not create or eliminate a government program; does not create or eliminate employee positions; does not increase or decrease future legislative appropriations to the Board; does not increase or decrease fees paid to the Board; does not create a new regulation; limits the existing regulation; does not increase or decrease the number of individuals subject to the proposed rule's applicability; and does not positively or adversely affect the state's economy.
Takings Impact Assessment
No takings impact assessment is necessary because there is no proposed use of private real property as a result of the proposed rule revision.
The requirement related to a rule increasing costs to regulated persons does not apply to the Texas State Board of Public Accountancy because the rule is being proposed by a self-directed semi-independent agency. (§2001.0045(c)(8))
Public Comment
Written comments may be submitted to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 505 E. Huntland Dr., Suite 380, Austin, Texas 78752 or faxed to his attention at (512) 305-7854, no later than noon on March 4, 2024.
The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small businesses. If the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; and finally, describe how the health, safety, environmental, and economic welfare of the state will be impacted by the various proposed methods. See Texas Government Code, §2006.002(c).
Statutory Authority
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code §901.151, which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§501.62.Other Professional Standards.
A person in the performance of consulting services, accounting and review services, any other attest service, financial advisory services, or tax services shall conform to the professional standards applicable to such services. For purposes of this section, such professional standards are considered to be interpreted by:
(1) AICPA issued standards, including but not limited to:
(A) Statements on Standards on Consulting Services (SSCS);
(B) Statements on Standards for Accounting and Review Services (SSARS);
(C) Statements on Standards for Attestation Engagements (SSAE);
(D) Statements on Standards for Tax Services (SSTS);
(E) Statements on Standards for Financial Planning
Services (SSFPS); [or]
(F) Statements on Standards for Valuation Services
(SSVS); or [.]
(G) Statements on Standards for Forensic Services (SSFS).
(2) Pronouncements by other professional entities having similar national or international authority recognized by the board including but not limited to the International Financial Reporting Standards (IFRS) promulgated by the International Accounting Standards Board (IASB).
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 18, 2024.
TRD-202400175
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 3, 2024
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy (Board) proposes an amendment to §521.9, concerning Certificate Fee.
Background, Justification and Summary
Individuals applying for their initial CPA license are assessed a fee to cover the administrative costs of processing an application. The rule amendment clarifies that the fee will not be refunded for any reason.
Fiscal Note
William Treacy, Executive Director of the Board, has determined that for the first five-year period the proposed amendment is in effect, there will be no additional estimated cost to the state, no estimated reduction in costs to the state and to local governments, and no estimated loss or increase in revenue to the state, as a result of enforcing or administering the amendment.
Public Benefit
The proposed rule amendment will put applicants on notice that if their application is not approved, or they don't pass the exam, or they don't complete their application for initial licensure the board will apply the fee toward the board's costs of processing the application and not refund the fee.
Probable Economic Cost and Local Employment Impact
Mr. Treacy, Executive Director, has determined that there will be no probable economic cost to persons required to comply with the amendment and a Local Employment Impact Statement is not required because the proposed amendment will not affect a local economy.
Small Business, Rural Community and Micro-Business Impact Analysis
William Treacy, Executive Director, has determined that the proposed amendment will not have an adverse economic effect on small businesses, rural communities or micro-businesses because the amendment does not impose any duties or obligations upon small businesses, rural communities or micro-businesses; therefore, an Economic Impact Statement and a Regulatory Flexibility Analysis are not required.
Government Growth Impact Statement
William Treacy, Executive Director, has determined that for the first five-year period the amendment is in effect, the proposed rule: does not create or eliminate a government program; does not create or eliminate employee positions; does not increase or decrease future legislative appropriations to the Board; does not increase or decrease fees paid to the Board; does not create a new regulation; limits the existing regulation; does not increase or decrease the number of individuals subject to the proposed rule's applicability; and does not positively or adversely affect the state's economy.
Takings Impact Assessment
No takings impact assessment is necessary because there is no proposed use of private real property as a result of the proposed rule revision.
The requirement related to a rule increasing costs to regulated persons does not apply to the Texas State Board of Public Accountancy because the rule is being proposed by a self-directed semi-independent agency. (§2001.0045(c)(8))
Public Comment
Written comments may be submitted to J. Randel (Jerry) Hill, General Counsel, Texas State Board of Public Accountancy, 505 E. Huntland Dr., Suite 380, Austin, Texas 78752 or faxed to his attention at (512) 305-7854, no later than noon on March 4, 2024.
The Board specifically invites comments from the public on the issues of whether or not the proposed amendment will have an adverse economic effect on small businesses. If the proposed rule is believed to have an adverse effect on small businesses, estimate the number of small businesses believed to be impacted by the rule, describe and estimate the economic impact of the rule on small businesses, offer alternative methods of achieving the purpose of the rule; then explain how the Board may legally and feasibly reduce that adverse effect on small businesses considering the purpose of the statute under which the proposed rule is to be adopted; and finally, describe how the health, safety, environmental, and economic welfare of the state will be impacted by the various proposed methods. See Texas Government Code, §2006.002(c).
Statutory Authority
The amendment is proposed under the Public Accountancy Act ("Act"), Texas Occupations Code §901.151, which authorizes the Board to adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§521.9.Certificate Fee.
(a) The fee for the initial issuance of a CPA certificate pursuant to the Act will be established by the board. The fee is nonrefundable.
(b) A military service member or military veteran who is eligible for the issuance of the CPA certificate is exempt from this fee.
(c) The exemption from the certificate fee must be evidenced by an active ID, state-issued driver's license with a veteran designation or DD214.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on January 18, 2024.
TRD-202400176
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Earliest possible date of adoption: March 3, 2024
For further information, please call: (512) 305-7842