§ 37:83 — Unlawful acts

Louisiana § 37:83

• Jurisdiction: Louisiana
• Title 37: Professions and Occupations

Text

§83. Unlawful acts
A. Only licensees or individuals granted privileges pursuant to the provisions of R.S.
37:94 may perform preparation of financial statement engagements, which purport to be in
compliance with the Statements on Standards for Accounting and Review Services (SSARS),
or issue a report on financial statements of any other person, firm, organization, or
governmental unit, which purports to be in compliance with standards applicable to attest
services, or otherwise offer to render or render any attest service. This restriction does not
apply to nonlicensees who use accounting skills in the preparation of tax returns,
management advisory services, and the preparation of financial statements without the
issuance of reports. This restriction also does not apply to nonlicensees who may prepare
financial statements which do not purport to be in compliance with the Statements on
Standards for Accounting and Review Services (SSARS).
B. Licensees or individuals granted privileges under R.S. 37:94 performing attest
services must provide those services in accordance with applicable professional standards.
C. No person shall use or assume the title "certified public accountant" or the
abbreviation "CPA" or any other title, designation, words, letters, abbreviation, sign, card,
or device tending to indicate that such person is a certified public accountant, unless the
person holds a valid active certificate issued as provided for in this Part or a privilege
pursuant to R.S. 37:94.
D. No firm shall provide attest services or assume or use the title "certified public
accountants" or the abbreviation "CPAs" or any other title, designation, words, letters,
abbreviation, sign, card, or device tending to indicate that such firm is a CPA firm unless the
firm holds a valid permit issued as provided for in this Part and ownership of the firm is in
accordance with this Part and rules adopted by the board.
E. No person or firm shall assume or use the title "public accountant", "certified
accountant", "chartered accountant", "enrolled accountant", "licensed accountant", "registered
accountant", or any other title or designation likely to be confused with the title "certified
public accountant" or use any of the abbreviations "CA", "LA", "RA", "PA", or similar
abbreviation likely to be confused with the abbreviation "CPA", unless such person or firm
holds a valid active certificate or permit issued as provided for in this Part. The title
"enrolled agent" or "EA" may only be used by individuals so designated by the Internal
Revenue Service.
F.(1)(a) No person shall use language in any statement relating to the financial affairs
of a person or entity which is conventionally used by licensees in reports on financial
statements, unless such person is licensed as provided for in this Part. However, any
nonlicensee using the following "safe harbor" language in connection with the performance
of compilation services shall not be in violation of any provisions of this Part: "The
accompanying balance sheet of (name of company) as of (year end date) and the related
statements of income, retained earnings, and cash flows for the year then ended have been
compiled by me (or us). A compilation is limited to presenting in the form of financial
statements information that is the representation of management (or owners). I (we) have
not audited or reviewed the accompanying financial statements and accordingly do not
express an opinion or any other form or assurance on them."
(b) Use of the following language is permissible in appropriate circumstances:
"Management has elected to omit substantially all of the disclosures (and the statement of
cash flows) required by generally accepted accounting principles. If the omitted disclosures
were included in the financial statements, they might influence the user's conclusions about
the company's financial position, results of operations, and cash flows. Accordingly, these
financial statements are not designed for those who are not informed about such matters".
(2) No person or firm shall assume or use any title or designation that implies that
such person or firm holds an active certificate or permit or has special competence as a
licensee, unless such person or firm holds a valid active certificate or permit issued as
provided for in this Part. However, this Subsection does not prohibit any officer, partner,
member, manager, or employee of any firm or organization from affixing that person's own
signature to any statement in reference to the financial affairs of such firm or organization
with any wording designating the position, title, or office that the person holds therein nor
prohibit any act of a public official or employee in the performance of the person's duties as
such.
G. No person holding a certificate nor firm holding a permit under this Part shall use
a professional or firm name or designation that is misleading about the legal form of the firm
or about the persons who are partners, officers, members, managers, or shareholders of the
firm, or about any other matter. However, names of one or more former partners, members,
managers, or shareholders may be included in the name of the firm or its successor.
H. This Section shall not apply to any person or firm holding a certification,
designation, degree, or license granted in a foreign country entitling the holder to engage in
the practice of public accountancy or its equivalent in such country whose activities in this
state are limited to the provision of professional services to persons or firms who are
residents of, governments of, or business entities of the country in which the person holds
such entitlement, who performs no attest services and who issues no reports with respect to
the financial statements of any other persons, firms, or governmental units in this state and
who does not use any title or designation in this state other than the one under which the
person practices in such country, followed by a translation of such title or designation into
the English language, if it is in a different language, and by the name of such country.
I. No holder of a certificate shall perform attest services in any firm that does not
hold a valid permit.
J. Nothing herein shall prohibit a practicing attorney or firm of attorneys from
preparing or presenting records or documents customarily prepared by an attorney or firm of
attorneys in connection with an attorney's professional work in the practice of law.
K.(1)(a) A licensed certified public accountant or licensed CPA firm shall not, for
a commission, recommend or refer to a client any product or service, or for a commission
recommend or refer any product or service to be supplied by a client, or receive a
commission, when the licensee also performs for that client any of the following:
(i) An audit or review of a financial statement.
(ii) A compilation of a financial statement when the licensee expects or reasonably
might expect that a third party will use the financial statement and the licensee's compilation
report does not disclose a lack of independence.
(iii) An examination of prospective financial information.
(b) This prohibition applies during the period in which the licensee is engaged to
perform any of such services and the period covered by any historical financial statements
involved in such services.
(2) A licensee who is not prohibited by this Section from performing services for or
receiving a commission and who expects to be paid a commission shall disclose that fact to
any person or entity to whom the licensee recommends or refers a product or service to
which the commission relates.
(3) Any licensee who expects to accept a referral fee for recommending or referring
any service of a licensee to any person or entity or who expects to pay a referral fee to obtain
a client shall disclose such acceptance or payment to the client.
L.(1) A licensee shall not:
(a) Perform any professional services for or receive a contingent fee from a client for
whom the licensee or the licensee's firm performs any of the following:
(i) An audit or review of a financial statement.
(ii) A compilation of a financial statement when the licensee expects or reasonably
might expect that a third party will use the financial statement and the licensee's compilation
report does not disclose a lack of independence.
(iii) An examination of prospective financial information.
(b) Prepare an original or amended tax return or claim for a tax refund for a
contingent fee for any client.
(2) These prohibitions apply during the period in which the licensee is engaged to
perform any such services and the period covered by any historical financial statements
involved in such services.
(3) For purposes of this Section, a "contingent fee" is a fee established for the
performance of any service pursuant to an arrangement in which no fee will be charged
unless a specified finding or result is attained or in which the amount of the fee is otherwise
dependent upon the finding or result of such service. However, fees are not regarded as
being contingent if fixed by courts or other nonclient public authorities or in tax matters if
determined based on the results of judicial proceedings or the findings of governmental
agencies. A licensee's fee may vary depending on the complexity of services rendered.

Legislative History

Acts 1979, No. 510, §1; Acts 1999, No. 473, §1, eff. June 18, 1999; Acts 2006, No. 214, §1; Acts 2008, No. 203, §1; Acts 2016, No. 553, §1.