American Institute of Certified Public Accountants (AICPA) Practice Exam

Under the Texas Public Accountancy Act, who must observe the rules of professional conduct?

1. Anyone working in public accounting

2. All certificate or registration holders

3. Just CPAs with clients

4. Only public accountants

The correct answer is: All certificate or registration holders

The correct answer is that all certificate or registration holders must observe the rules of professional conduct as stipulated under the Texas Public Accountancy Act. This requirement encompasses all individuals who hold a valid certificate or registration, which includes Certified Public Accountants (CPAs) as well as other professionals authorized to practice public accounting. The rationale for this rule is that maintaining professional standards is essential for ensuring the integrity and credibility of the accounting profession. This encompasses ethical practices, adherence to regulations, and upholding the public's trust in financial reporting. Individuals who hold certificates or registrations are seen as representatives of the profession and are therefore expected to adhere to the established guidelines, regardless of whether they are currently engaged with clients. By ensuring all certificate or registration holders comply with these rules, the Texas Public Accountancy Act aims to promote professionalism within the field and safeguard public interests.