|(a) An unlicensed entity is permitted to state that
it has an ownership interest and a business affiliation with a registered
CPA firm provided each such statement complies with subsection (b)
of this section.
(b) In any letterhead, or in any advertising or promotional
statements by an unlicensed entity that refers to accounting, auditing
or attest services or any derivative terms associated with those services,
there must be a statement that such services are only performed by
the affiliated registered CPA firm. This statement must be included
in conspicuous proximity to the name of the unlicensed entity and
be printed in type not less bold than that contained in the body of
the letterhead, advertisement or promotional statement. If the advertisement
is in audio format, the statement must be clearly declared in each
(c) An unlicensed entity performing attest services
is in the unauthorized practice of public accountancy and in violation
of the Act and the board's rules.
(d) Interpretative Comment: This section clarifies
that the mere mention of a business and ownership affiliation with
a registered CPA firm on the letterhead, or in advertising or promotional
statements, of an unlicensed entity does not violate the Act when
done in compliance with the provisions of this section. This section
also clarifies that the letterhead, advertising or promotional statements
of the unlicensed entity may not refer to accounting, auditing or
attest services, or any derivative terms associated with those services,
without violating §901.453 of the Act (relating to Use of Other
Titles or Abbreviations). It also clarifies that all attest services
must still be performed exclusively by registered CPA firms in accordance
with the Act and all board rules. The definition of "attest services"
is set forth in §501.52 of this title (relating to Definitions).