Occ. Code Section 901.456
Reports on Financial Statements; Use of Name or Signature on Certain Documents
(a)Only a license holder or a person who practices under a privilege under Section 901.461 (Practice by Certain Out-of-state Firms) or 901.462 (Practice by Out-of-state Practitioner with Substantially Equivalent Qualifications) may issue a report on a financial statement of another person or otherwise perform or offer to perform an attest service.
(b)A person who is not a license holder and who does not practice under a privilege under Section 901.461 (Practice by Certain Out-of-state Firms) or 901.462 (Practice by Out-of-state Practitioner with Substantially Equivalent Qualifications):
(1)may not use language in any statement related to the financial affairs of a person that is conventionally used by license holders in reports on financial statements;
(2)may prepare financial statements; and
(3)may issue nonattest transmittals or information regarding nonattest transmittals if the transmittals or information do not purport to be in compliance with standards for accounting and review services adopted by the American Institute of Certified Public Accountants or another national accountancy organization recognized by the board.
(c)The following safe harbor language may be used by a person who is not a license holder without violating Subsection (b): “(I/We) have prepared the accompanying balance sheet of (client’s name) as of (date) and the related statements of income, retained earnings, and cash flow changes in financial position for the (period then ended). These financial statements, which are the representation of management and which are presented to be used for federal income tax purposes, (are/are not) in agreement with the company’s financial records. Management has elected to omit substantially all informative disclosures with respect to these financial statements. If the omitted disclosures were included in the above financial statements, they might influence the user’s conclusion concerning the company’s financial position, results of operations, and/or changes in financial position. (I/We) do not express any form of assurance with respect to these financial statements.”
(d)Unless a person is in compliance with this chapter, the person may not sign on or affix to an accounting or financial statement, or an opinion on, report on, or certificate to an accounting or financial statement, the person’s name or a trade or assumed name used by the person in the person’s profession or business with any wording indicating that the person:
(1)is an accountant or auditor; or
(2)has expert knowledge in accounting or auditing.
(e)This section does not prohibit:
(1)a partner, officer, employee, or principal of an organization from signing a statement or report regarding the financial affairs of the organization with wording that designates the position, office, or title held by the person in the organization;
(2)any act of a public official or public employee in the performance of the person’s duties as a public official or public employee; or
(3)the performance by a person who is not a license holder of a service that is not an attest service and that involves the use of bookkeeping skills, including:
(A)the preparation of tax returns;
(B)management advisory services; or
(C)the preparation of financial statements without the issuance of reports.
(f)A license holder or an individual who practices under a privilege under Section 901.462 (Practice by Out-of-state Practitioner with Substantially Equivalent Qualifications) who performs attest services must provide those services in accordance with standards adopted by the American Institute of Certified Public Accountants or another national accountancy organization recognized by the board.
Section 901.456 — Reports on Financial Statements; Use of Name or Signature on Certain Documents,
https://statutes.capitol.texas.gov/Docs/OC/htm/OC.901.htm#901.456 (accessed Nov. 25, 2023).