(A) Licensed certified public accountants/public accountants performing or supervising the performance of attest or compilation services must provide those services in accordance with professional standards.
(B) A person holding a license or firm holding a registration under this chapter must not use a professional or firm name or designation that is misleading.
(1) A common brand name, including common initials, used by a CPA firm in its name is not misleading if the firm is a network firm as defined in the AICPA Code of Professional Conduct and, when offering or rendering services that require independence under AICPA standards, the firm complies with the AICPA Code of Professional Conduct's applicable standards on independence.
(2) A misleading CPA firm name is one that:
(a) 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 the owners or members of the firm are, such as a reference to a type of organization or an abbreviation thereof that does not accurately reflect the form under which the firm is organized including, but not limited to, a name that:
(i) implies the existence of a corporation when the firm is not incorporated or is not a professional corporation, such as through the use of the words "corporation", "incorporated", "Ltd.", or "professional corporation", or an abbreviation thereof as part of the firm name;
(ii) 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";
(iii) includes the name of an individual who is not a CPA if the title "CPAs" is included in the firm name;
(iv) includes information about or indicates an association with persons who are not members of the firm, except as permitted in item (1). Notwithstanding the prohibition in this subitem, the names of one or more former partners, members, managers, or shareholders who are no longer in public practice may be included in the name of the firm or its successor; or
(v) includes the terms "& Company", "& Associate", or "Group" when the firm does not include, in addition to the named partner, shareholder, owner, or member, at least one other unnamed partner, shareholder, owner, member, or staff employee;
(b) 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;
(c) claims or implies the ability to influence a regulatory body or official; or
(d) includes the name of an owner whose license has been revoked for disciplinary reasons by the board, whereby the licensee has been prohibited from practicing public accountancy, using the title CPA, or holding himself out as a certified public accountant.
HISTORY: 2004 Act No. 289, Section 1; 2022 Act No. 174 (S.812), Section 1, eff May 16, 2022.
Effect of Amendment
2022 Act No. 174, Section 1, rewrote (B).
Structure South Carolina Code of Laws
Title 40 - Professions and Occupations
Section 40-2-5. Purpose of chapter.
Section 40-2-70. Powers and duties of board.
Section 40-2-80. Investigations of complaints or other information suggesting violations; report.
Section 40-2-90. Report of violations to board; hearing; notice to accused licensee or registrant.
Section 40-2-130. Denial of authorization to practice.
Section 40-2-140. Effect of prior criminal conviction on authorization to practice.
Section 40-2-170. Costs of investigation and prosecution.
Section 40-2-180. Unpaid costs become judgment.
Section 40-2-200. Violations; penalty.
Section 40-2-240. Licensing of persons licensed in another state.
Section 40-2-245. Requirements to practice if licensed out of state.
Section 40-2-250. Renewal of licenses; reinstatement of lapsed licenses.
Section 40-2-255. Renewal of registration; peer reviews.
Section 40-2-270. "Emeritus" status.
Section 40-2-275. "Retired" status.
Section 40-2-330. Severability.
Section 40-2-510. Persons considered to be engaged in practice.
Section 40-2-520. Unlicensed practice.
Section 40-2-540. Authority of board.
Section 40-2-550. Applicant qualifications.
Section 40-2-560. Issuance of licenses.
Section 40-2-570. Disciplinary action.
Section 40-2-580. Initiation of proceedings; procedures.