South Carolina Code 40-2-335. Performance according to professional standards; misleading professional or firm names
(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.
Terms Used In South Carolina Code 40-2-335
- AICPA: means the American Institute of Certified Public Accountants or successor organizations. See South Carolina Code 40-2-20
- Board: means the South Carolina Board of Accountancy. See South Carolina Code 40-2-20
- Compilation: means providing a service of any compilation engagement to be performed in accordance with SSARS. See South Carolina Code 40-2-20
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Firm: includes a person or persons practicing public accounting in the form of a proprietorship, partnership, limited liability partnership, limited liability company, or professional corporation or association. See South Carolina Code 40-2-20
- License: means authorization to practice as issued under this chapter. See South Carolina Code 40-2-20
- Licensee: means the holder of a license. See South Carolina Code 40-2-20
- Owner: means any person who owns all or part of a firm. See South Carolina Code 40-2-20
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Professional: means arising out of or related to the specialized knowledge or skills associated with licensees. See South Carolina Code 40-2-20
- Registration: means an authorization, issued under this chapter, to practice as a firm. See South Carolina Code 40-2-20
(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.