Section 9.12 - Unlawful acts(a) Except as provided in sections 5.2 and 5.4 of this act, it is unlawful for any person to hold himself out as or otherwise use the title or designation "certified public accountant," or the abbreviation "CPA," or any other title, designation, words, letters or abbreviation tending to indicate that the person is a certified public accountant or engaged in the practice of public accounting unless the person has received or has been notified in writing by the board that he has qualified to receive a certificate of certified public accountant issued by this Commonwealth, which is not revoked or suspended.(b) It is unlawful for any person to hold himself out or otherwise use the title "certified public accountant," "public accountant" or any abbreviation thereof, or the letters "CPA" or "PA" by virtue of any certificate, registration or license illegally or fraudulently obtained by the person, or issued unlawfully or through any fraudulent representation or deceit, or misstatement of material fact or fraudulent concealment of a material fact made or induced or aided or abetted by the person.(c) Except as provided in sections 5.2 and 5.4 of this act, it is unlawful for any partnership, corporation or other association to hold itself out as or otherwise use the title or designation "certified public accountant" or "public accountant" or the abbreviation "CPA" or "PA," or any other title, designation, words, letters or abbreviation tending to indicate that the partnership, corporation or other association is composed of or includes certified public accountants or public accountants unless the partnership, corporation or other association holds a current license under section 8.8 of this act.(f) Except as provided in this subsection, in sections 5.2 and 5.4 of this act or in subsections (a) and (c), it is unlawful for any person to use a title that includes the word "certified" as a part thereof, or any other title or designation likely to be confused with "certified public accountant," or any title or designation implying or connoting accreditation by any jurisdiction for the practice of any type of bookkeeping, accounting, auditing, tax or other professional practice related thereto, or to use any abbreviation of such title or designation. It is not a violation of this subsection for an individual: (1) except as provided in clause (2), to use a title or designation that includes the word "accredited" or "certified" or an abbreviation of such a title or designation if the title or designation has been conferred by a private organization after evaluation of the individual's credentials or qualifications and if when the title or designation is used on the individual's stationery it is accompanied by a statement that it has been conferred by an organization not affiliated with the Federal or any State government; or(2) to use the designation "certified financial planner" or "chartered global management accountant" or an abbreviation of the designation if the designation has been conferred by a private organization after evaluation of the individual's credentials or qualifications.(j) It is unlawful for any person to hold himself out as or otherwise use the title or designation "public accountant" or the abbreviation "PA" or any other title, designation, words, letters or abbreviation tending to indicate that the person is a public accountant, unless such person is registered as a public accountant and is a licensee, or unless such person has received, or has been notified in writing by the board that he has qualified to receive a certificate as certified public accountant issued by this Commonwealth. (k) Deleted. (l) It is unlawful for any person, partnership or corporation to hold himself or itself out as or otherwise use the title or designation "certified accountant," "chartered accountant," "enrolled accountant," "licensed accountant," "registered accountant," "licensed public accountant," "registered public accountant" or "accredited accountant" or any other title or designation likely to be confused with "certified public accountant" or "public accountant," or any abbreviation of any of those prohibited titles or designations or similar abbreviations likely to be confused with "CPA," except that a person who is a licensee may hold himself out to the public as an "accountant," "auditor" or "accountant and auditor." It is not a violation of this clause for an individual designated by the Internal Revenue Service as an enrolled agent to use that title or the abbreviation "EA." (l.1) It is unlawful for any person to sell or offer to sell or fraudulently obtain, furnish or procure any certificate, registration, license or determination of substantial equivalency under the provisions of this act or cause or aid or abet another person to do so.
(l.2) Except as provided in sections 5.2 and 5.4 of this act, it is unlawful for any person that is not a licensee to sign, affix a firm name to or otherwise issue any:
(2) opinion, certificate or other communication respecting compliance with conditions established by law or contract, including, but not limited to, statutes, ordinances, regulations, grants, loans and appropriations, together with any wording, accompanying or contained in such opinion, certificate or other communication that indicates that the person is composed of or employs:(i) accountants or auditors; or(ii) persons having expert knowledge in accounting or auditing. (l.3) It is unlawful for a licensee to use a professional or firm name that the licensee is prohibited from using by other applicable provision of law or that is misleading as to the persons who are partners, officers, members, directors, employees or shareholders of the firm or as to any other matter, except that the names of one or more former partners, shareholders or members may be included in the name of a firm or its successor.
(m) Except as provided in sections 5.2 and 5.4 of this act, it is unlawful for any individual who is not a licensee to sign or affix his name or any trade or assumed name used by him in his profession or business to or otherwise issue any: (2) opinion, certificate or other communication respecting compliance with conditions established by law or contract, including, but not limited to, statutes, ordinances, regulations, grants, loans and appropriations, together with any wording accompanying or contained in such opinion, certificate or other communication, which indicates: (i) that he is an accountant or auditor; or(ii) that he has expert knowledge in accounting or auditing. The provisions of this subsection shall not prohibit any officer, employe, partner, or principal of any organization from affixing his signature to any communication in reference to the affairs of the organization with any wording designating the position, title, or office which he holds in the organization, nor shall the provisions of this subsection prohibit any act of a public official or public employe in the performance of his duties as such.(n) Except as provided in sections 5.2 and 5.4 of this act, it is unlawful for any person not a licensee to hold himself or itself out to the public as an "auditor" or as an "accountant and auditor." This subsection shall not prohibit any officer, employe, partner, or principal of any organization from describing himself by the position, title or office he holds in the organization, nor shall this subsection prohibit any action of a public official or public employe in the performance of his duties as such.(o) It is unlawful for any person to hold himself or itself out as a member of any society, association or organization of certified public accountants or public accountants, unless such person holds a valid certificate of certified public accountant issued by this Commonwealth or by some state or is registered as a public accountant in this Commonwealth or, in the case of a firm, is licensed under section 8.8 of this act.(p) Commissions and referral fees shall comply with the following:(1) A person practicing public accounting in this Commonwealth 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 person or the person's firm 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 person expects, or reasonably might expect, that a third party will use the financial statement and the person's compilation report does not disclose a lack of independence.(iii) An examination of prospective financial information. This prohibition applies during the period in which the person is engaged to perform any of the services listed in this clause and the period covered by any historical financial statements involved in such listed services.(2) A person practicing public accounting in this Commonwealth who is not prohibited by this act from performing services for or receiving a commission and who is paid or expects to be paid commission shall disclose that fact to any person to whom the person recommends or refers a product or service to which the commission relates.(3) Any person who accepts a referral fee or who pays a referral fee shall disclose such acceptance or payment to the client.(4) The board shall promulgate regulations specifying the terms of the disclosures required by clause (2) or (3), the manner in which the disclosures shall be made and such other matters regarding the disclosures as the board shall deem appropriate. The regulations shall require, at a minimum, that a disclosure shall comply with all of the following:(i) Be in writing and be clear and conspicuous.(ii) State the amount of the commission or referral fee or the basis on which it will be computed.(iii) Be made at or prior to the time: (A) the recommendation or referral of the product or service is made in the case of a commission; or(B) the client retains the person to whom the client has been referred in the case of a referral fee.(5) This subsection does not apply to:(i) Payments for the purchase of all or part of an accounting practice.(ii) Retirement or similar payments to persons formerly engaged in the practice of public accounting.(iii) Payments to the heirs or estates of persons formerly engaged in the practice of public accounting.(iv) Incentive or bonus payments to a person by a firm employing the person.(q) Except as provided in sections 5.2 and 5.4 of this act, it is unlawful for any person not a licensee to engage in the practice of public accounting in this Commonwealth.(r) Except as provided in sections 5.2 and 5.4 of this act, it is unlawful for any person not a licensee to prepare financial information that is accompanied by a letter or other text that does not comply with section 13(c) of this act.Amended by P.L. TBD 2022 No. 110, § 3, eff. 1/3/2023.1947, May 26, P.L. 318, § 12. Amended 1953, July 29, P.L. 953, § 2; 1961, Sept. 2, P.L. 1165, § 9; 1974, Dec. 30, P.L. 1122, No. 362, § 9, imd. effective. Reenacted and amended 1976, Dec. 8, P.L. 1280, No. 286, §12, imd. effective. Amended 1984 , March 7, P.L. 106, No. 23, §15, effective 4/1/1984; 1996, Dec. 4, P.L. 851, No. 140, § 13, effective in 60 days; 2008, July 9, P.L. 954, No. 73, §9, effective in 60 days [ 9/8/2008].