Accy 1.404(2)(a)
(a) Engaging concurrently with the practice of public accounting in any business or occupation inconsistent with the certified public accountant's responsibilities under the Wisconsin rules of conduct would constitute involvement in an incompatible occupation prohibited by
sub. (1).
Accy 1.404(2)(b)1.
1. Detracts from the public image of the profession, as for example, on legal grounds, or involves conduct which would constitute an act discreditable to the profession.
Accy 1.404(2)(b)2.
2. Impairs the certified public accountant's objectivity in rendering professional services to clients.
Accy 1.404(2)(b)3.
3. Inherently involves responsibilities which are likely to conflict with the certified public accountant's responsibility to others arising out of the client-certified public accountant relationship.
Accy 1.404(2)(c)
(c) A conflict of interest exists when a certified public accountant or firm of such persons who are licensed to practice in Wisconsin becomes associated with or employed by a nonlicensed individual or firm offering accounting, tax, or consulting services, such as those customarily provided by certified public accountants, in a manner and with representation or implication that third parties could interpret or conclude that attest services are performed or offered by both the nonlicensed individual or firm and the certified public accountant. A conflict of interest also exists if the services of the licensed certified public accountant or firm of such persons can be influenced or decisions altered by the noncertified associate or employer.
Accy 1.404(2)(d)
(d) A conflict of interest exists when a certified public accountant who is not licensed permits his or her status as a certified public accountant to be used or publicized in a manner or situation that third parties could assume or conclude that attest services are being performed or offered by or through nonlicensed individuals or firms.
Accy 1.404 History
History: Cr.
Register, June, 1974, No. 222, eff. 7-1-74; cr. (2),
Register, February, 1976, No. 242, eff. 4-1-76; r. and recr.
Register, July, 1978, No. 271, eff. 9-1-78; cr (2),
Register, July, 1979, No. 283, eff. 9-1-79; renum. from Accy 1.504,
Register, July, 1980, No. 295, eff. 8-1-80; am. (2) (intro.) and (a),
Register, April, 1981, No. 304, eff. 5-1-81; cr. (2) (c) and (d),
Register, June, 1982, No. 318, eff. 7-1-82; am. (2) (b) 1.,
Register, April, 1985, No. 352, eff. 5-1-85;
CR 03-071: am. (1) and (2) (a) to (d)
Register May 2004 No. 581, eff. 6-1-04;
2015 Wis. Act 217: am. (1) Register May 2016 No. 725, eff. 6-1-16. Accy 1.405(1)
(1) An individual or firm may practice as a certified public accountant in any form of business organization permitted by state law. No person licensed to practice as a certified public accountant may practice under a firm name that is misleading as to the type of organization. A misleading CPA firm name is any of the following:
Accy 1.405(1)(a)
(a) A name that 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 any of the following:
Accy 1.405(1)(a)1.
1. A name that implies the existence of a corporation when the firm is not a corporation, such as through the use of the words “corporation," “incorporated," “Ltd.," “professional corporation," or an abbreviation thereof as part of the firm name if the firm is not incorporated or is not a professional corporation.
Accy 1.405(1)(a)2.
2. A name that 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" if the firm is not such an entity.
Accy 1.405(1)(a)3.
3. A name that includes the name of an individual who is not a CPA if the title “CPAs" is included in the firm name.
Accy 1.405(1)(a)4.
4. A name that includes information about or indicates an association with persons who are not members of the firm, except as provided in
subs. (3) and
(4).
Accy 1.405(1)(a)5.
5. A name that includes the terms “& Company," “& Associate," or “Group," if 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.
Accy 1.405(1)(b)
(b) A name that 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.
Accy 1.405(1)(c)
(c) A name that claims or implies the ability to influence a regulatory body or official.
Accy 1.405(1)(d)
(d) A name that 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 or prohibited from using the title CPA or holding himself or herself out as a certified public accountant.
Accy 1.405(2)
(2) Any of the following is a permissible type of CPA firm name if it does not otherwise violate this subchapter:
Accy 1.405(2)(a)
(a) A firm name that includes the names of one or more former or present owners.
Accy 1.405(2)(b)
(b) A firm name that excludes the names of one or more former or present owners.
Accy 1.405(2)(c)
(c) A firm name that uses the CPA title as part of the firm name when all named individuals are owners of the firm who hold such title or are former owners who held such title at the time they ceased to be owners of the firm.
Accy 1.405(2)(d)
(d) A firm name that includes the name of a non-CPA owner if the CPA title is not a part of the firm name.
Accy 1.405(3)
(3) A network firm may use a common brand name or share common initials as part of the firm name.
Accy 1.405(4)
(4) A network firm may use the network name as the firm's name, provided that it also shares one or more of the following characteristics with other firms in the network:
Accy 1.405(4)(a)
(a) Common control, as defined by generally accepted accounting principles in the U.S., among the firms through ownership, management, or other means.
Accy 1.405(4)(b)
(b) Profits or costs, excluding costs of operating the association, costs developing audit methodologies, manuals and training courses, and other costs that are immaterial to the firm.
Accy 1.405(4)(c)
(c) A common business strategy that involves ongoing collaboration among the firms whereby the firms are responsible for implementing the association's strategy and are held accountable for performance pursuant to that strategy.
Accy 1.405(4)(e)
(e) Common quality control policies and procedures that participating firms are required to implement and that are monitored by the association.
Accy 1.405 History
History: Cr.
Register, June, 1974, No. 222, eff. 7-1-74; cr. (2),
Register, December, 1974, No. 228, eff. 1-1-75; r. and recr. (1) (a), renum. (2) to be (3) and cr. (2),
Register, February, 1976, No. 242, eff. 4-1-76; renum. from Accy 1.505 and am. (3) (intro.),
Register, July, 1980, No. 295, eff. 8-1-80; am. (2) (intro.) and (a),
Register, April, 1981, No. 304, eff. 5-1-81; am. (3) (a),
Register, June, 1982, No. 318, eff. 7-1-82; am. (2),
Register, July, 1983, No. 331, eff. 8-1-83; am. (1) (intro.) and (a),
Register, January, 1985, No. 349, eff. 2-1-85; r. (1) (b),
Register, February, 1990, No. 410, eff. 3-1-90; am. (1) (a),
Register, February, 1992, No. 434, eff. 3-1-92;
r. and recr. (1) (intro.),
Register, May, 1994, No. 461, eff. 6-4-94;
CR 03-071: cons. and renum. (1) (intro.), (a) to be (1) and (3) (intro.), (a) to be (3) and am., r. (1) (c), am. (2)
Register May 2004 No. 581, eff. 6-1-04;
2015 Wis. Act 217: r. and recr. Register May 2016 No. 725, eff. 6-1-16. Accy 1.406
Accy 1.406 Practice while suspended. No person who is licensed to practice as a certified public accountant, who has been suspended, shall practice as a certified public accountant during the period of such suspension.
Accy 1.406 History
History: Cr.
Register, June, 1974, No. 222, eff. 7-1-74; renum. from Accy 1.506,
Register, July, 1980, No. 295, eff. 8-1-80;
CR 03-071: am.
Register May 2004 No. 581, eff. 6-1-04.
Accy 1.407
Accy 1.407 Communications. A certified public accountant shall, when requested, respond to communications from the board within 30 days of the mailing of such communications by registered or certified mail.
Accy 1.407 History
History: Cr.
Register, July, 1978, No. 271, eff. 9-1-78; renum. from Accy 1.507,
Register, July, 1980, No. 295, eff. 8-1-80.
Accy 1.408(1)
(1) In this section “ownership interest" means any equity or voting interest in a firm.
Accy 1.408(2)
(2) An applicant for a license as a certified public accounting firm shall demonstrate that more than 50% of the ownership interest of the firm is held by individuals who hold certificates or licenses to practice as a certified public accountant issued under the laws of any state or foreign country.
Accy 1.408(3)
(3) A firm applying for licensure meets the ownership requirement under
sub. (2) in the following circumstances:
Accy 1.408(3)(a)
(a) If the applicant is a sole proprietorship and the owner holds a certificate and license to practice as a certified public accountant issued under the laws of this state.
Accy 1.408(3)(b)
(b) If the applicant is organized as a service corporation and more than 50% of the voting rights are held by individuals who are certified public accountants.
Accy 1.408(3)(c)
(c) If the applicant is organized as a business corporation and more than 50% of the voting rights are held by individuals who are certified public accountants.
Accy 1.408(3)(d)
(d) If the applicant is organized as a partnership or limited liability partnership and more than 50% of the voting rights are held by individuals who are certified public accountants.
Accy 1.408(3)(e)
(e) If the applicant is organized as a limited liability company and more than 50% of the voting rights are held by individuals who are certified public accountants.
Accy 1.408(4)
(4) An applicant firm with ownership characteristics other than those identified in
sub. (3) may submit information about the ownership interests of all members of the firm to the board. The board may determine that more than 50% of the ownership interest of the firm is held by individuals who hold certificates or licenses to practice as a certified public accountant. In making this determination the board shall consider whether ownership interest of all members of the firm results in control and management of the firm by individuals who hold certificates or licenses to practice as a certified public accountant.
Accy 1.408 History
History: CR 02-052: cr.
Register December 2002 No. 564, eff. 1-1-03.
