Current through all regulations passed and filed through September 16, 2024
(A) An Ohio permit holder may practice public
accounting as defined in rule
4701-7-04 of the Administrative
Code, whether as an owner or employee, only in the form of a sole
proprietorship, a partnership, limited liability company, professional
association, corporation, or other legal entity whose characteristics conform
to the Revised Code and rules of the board.
(B)
The name of a public accounting firm
as defined in
paragraph (P) of rule
4701-13-01 of the Administrative
Code may not be used unless such name has been registered with the
board.
(C) A misleading
public
accounting firm name is one which:
(1)
Contains any representation that would be likely to cause a reasonable person
to misunderstand or be confused about the legal form of the firm, or about who
are the owners or members of the firm, including reference to a type of
organization or an abbreviation thereof which does not accurately reflect the
form under which the firm is organized, including, but not limited to the
following:
(a) Implies the existence of a
corporation when the firm is not a corporation, such as through the use of the
words "corporation," "incorporated," "Ltd.," "professional corporation," or an
abbreviation thereof as part of the firm name if the firm name is not
incorporated or is not a professional corporation;
(b) Implies the existence of a partnership
when there is not a partnership such as by use of the term "partnership" or
"limited liability partnership" or the abbreviation "LLP" if the firm is not
such an entity;
(c) Includes the
name of an individual who is not a CPA if the title "CPAs" is included in the
firm name;
(d) Includes information
about or indicates an association with persons who are not members of the firm,
except as permitted pursuant to paragraph (D) of this rule; or
(e) Includes the terms "& Company,"
"& Associate," or "Group," but the firm does not include, in addition to
the named partner, another shareholder, owner, member, or staff
employee.
(2) Contains
any representation that would be likely to cause a reasonable person to have a
false or unjustified expectation of favorable results or capabilities, through
the use of a false or unjustified statement of fact as to any material
matter.
(3) Claims or implies the
ability to influence a regulatory body or official;
(4) Includes the name of an owner whose
CPA
certificate or license has been revoked for disciplinary reasons by the
board, whereby the owner has
been prohibited from practicing public
accounting or prohibited from using the title CPA or
representing themselves as a certified public
accountant.
(D) The
following types of public accounting firm names are not in and of
themselves misleading and are permissible so long as they do not violate the
provisions of paragraph (C)(1)(a) of this rule:
(1) A firm name that includes the names of
one or more former or present owners;
(2) A firm name that excludes the names of
one or more former or present owners;
(3) A firm name that uses the designation
"CPA" as part of the firm name when all named individuals are owners of the
firm who hold such titles or are former owners who held such title at the time
they ceased to be owners of the firm;
(4) A firm name that includes the name of a
non-CPA owner if the "CPA" title is not a part of the firm name;
(E) A network firm as defined in
the "AICPA Code of Professional Conduct" and published on its website
(www.aicpa.org) may use a common brand name or share common
initials, as part of the firm name;
(F) A network firm as defined in the "AICPA
Code of Professional Conduct" and published on its website (www.aicpa.org)
may use the network name as the firm's name, provided it also shares one or
more of the following characteristics with other firms in the network:
(1) Common control, as defined by generally
accepted accounting principles in the United States, among the firms through
ownership, management, or other means;
(2) Profits or costs, excluding
location operating costs
, costs of
developing audit methodologies, manuals and training courses, and other costs
that are immaterial to the firm;
(3) Common business strategy that involves
ongoing collaboration among the firms whereby the firms are responsible for
implementing the association's strategy and are held accountable for
performance pursuant that strategy;
(4) Significant part of professional
resources;
(5) Common quality
control policies and procedures that network
firms are required to implement and that are monitored by the
association.
