Texas Administrative Code
Title 22 - EXAMINING BOARDS
Part 22 - TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY
Chapter 501 - RULES OF PROFESSIONAL CONDUCT
Subchapter C - RESPONSIBILITIES TO CLIENTS
Section 501.73 - Integrity and Objectivity
Current through Reg. 49, No. 38; September 20, 2024
(a) A person in the performance of professional accounting services or professional accounting work shall maintain integrity and objectivity, shall be free of conflicts of interest and shall not knowingly misrepresent facts nor subordinate his or her judgment to others. In tax practice, however, a person may resolve doubt in favor of his client as long as any tax position taken complies with applicable standards such as those set forth in Circular 230 issued by the IRS and the AICPA's SSTSs.
(b) A conflict of interest may occur if a person performs a professional accounting service or professional accounting work for a client or employer and the person has a relationship with another person, entity, product, or service that could, in the person's professional judgment, be viewed by the client, employer, or other appropriate parties as impairing the person's objectivity. If the person believes that the professional accounting service or professional accounting work can be performed with objectivity, and the relationship is disclosed to and consent is obtained from such client, employer, or other appropriate parties in writing, then this rule shall not operate to prohibit the performance of the professional accounting service or professional accounting work because of a conflict of interest.
(c) Certain professional engagements, such as audits, reviews, and other services, require independence. Independence impairments under § 501.70 of this chapter (relating to Independence), its interpretations and rulings cannot be eliminated by disclosure and consent.
(d) A person shall not concurrently engage in the practice of public accountancy and in any other business or occupation which impairs independence or objectivity in rendering professional accounting services or professional accounting work, or which is conducted so as to augment or benefit the accounting practice unless these rules are observed in the conduct thereof.
(e) Interpretive comment: An email communication will satisfy the requirement for written disclosure of a conflict of interest in subsection (b) of this section.
