2009 California Business and Professions Code - Section 5050-5058.2 :: Article 3. Application Of Chapter

5050.  (a) Except as provided in subdivisions (b) and (c) of this
section, in subdivision (a) of Section 5054, and in Section 5096.12,
no person shall engage in the practice of public accountancy in this
state unless the person is the holder of a valid permit to practice
public accountancy issued by the board or a holder of a practice
privilege pursuant to Article 5.1 (commencing with Section 5096).
   (b) Nothing in this chapter shall prohibit a certified public
accountant, a public accountant, or a public accounting firm lawfully
practicing in another state from temporarily practicing in this
state incident to practice in another state, provided that an
individual providing services under this subdivision may not solicit
California clients, may not assert or imply that the individual is
licensed to practice public accountancy in California, and may not
engage in the development, implementation, or marketing to California
consumers of any abusive tax avoidance transaction, as defined in
subdivision (c) of Section 19753 of the Revenue and Taxation Code. A
firm providing services under this subdivision that is not registered
to practice public accountancy in California may not solicit
California clients, may not assert or imply that the firm is licensed
to practice public accountancy in California, and may not engage in
the development, implementation, or marketing to California consumers
of any abusive tax avoidance transaction, as defined in subdivision
(c) of Section 19753 of the Revenue and Taxation Code. This
subdivision shall become inoperative on January 1, 2011.
   (c) Nothing in this chapter shall prohibit a person who holds a
valid and current license, registration, certificate, permit, or
other authority to practice public accountancy from a foreign
country, and lawfully practicing therein, from temporarily engaging
in the practice of public accountancy in this state incident to an
engagement in that country, provided that:
   (1) The temporary practice is regulated by the foreign country and
is performed under accounting or auditing standards of that country.
   (2) The person does not hold himself or herself out as being the
holder of a valid California permit to practice public accountancy or
the holder of a practice privilege pursuant to Article 5.1
(commencing with Section 5096).

5050.1.  (a) Any person that engages in any act that is the practice
of public accountancy in this state consents to the personal,
subject matter, and disciplinary jurisdiction of the board. This
subdivision is declarative of existing law.
   (b) Any person engaged in the practice of public accountancy under
subdivision (a) is deemed to have appointed the regulatory authority
of the state or foreign jurisdiction that issued the person's
permit, certificate, license or other authorization to practice as
the person's agent on whom notice, subpoenas, or other process may be
served in any action or proceeding by or before the board against or
involving that person.

5050.2.  (a) The board may revoke, suspend, issue a fine pursuant to
Article 6.5 (commencing with Section 5116), or otherwise restrict or
discipline the holder of an authorization to practice under
subdivision (b) or (c) of Section 5050, subdivision (a) of Section
5054, or Section 5096.12 for any act that would be a violation of
this code or grounds for discipline against a licensee or holder of a
practice privilege, or grounds for denial of a license or practice
privilege under this code. The provisions of the Administrative
Procedure Act, including, but not limited to, the commencement of a
disciplinary proceeding by the filing of an accusation by the board
shall apply to this section. Any person whose authorization to
practice under subdivision (b) or (c) of Section 5050, subdivision
(a) of Section 5054, or Section 5096.12 has been revoked may apply
for reinstatement of the authorization to practice under subdivision
(b) or (c) of Section 5050, subdivision (b) of Section 5054, or
Section 5096.12 not less than one year after the effective date of
the board's decision revoking the authorization to practice unless a
longer time, not to exceed three years, is specified in the board's
decision revoking the authorization to practice.
   (b) The board may administratively suspend the authorization of
any person to practice under subdivision (b) or (c) of Section 5050,
subdivision (a) of Section 5054, or Section 5096.12 for any act that
would be grounds for administrative suspension under Section 5096.4
utilizing the procedures set forth in that section.

5051.  Except as provided in Sections 5052 and 5053, a person shall
be deemed to be engaged in the practice of public accountancy within
the meaning and intent of this chapter if he or she does any of the
following:
   (a) Holds himself or herself out to the public in any manner as
one skilled in the knowledge, science, and practice of accounting,
and as qualified and ready to render professional service therein as
a public accountant for compensation.
   (b) Maintains an office for the transaction of business as a
public accountant.
   (c) Offers to prospective clients to perform for compensation, or
who does perform on behalf of clients for compensation, professional
services that involve or require an audit, examination, verification,
investigation, certification, presentation, or review of financial
transactions and accounting records.
   (d) Prepares or certifies for clients reports on audits or
examinations of books or records of account, balance sheets, and
other financial, accounting and related schedules, exhibits,
statements, or reports that are to be used for publication, for the
purpose of obtaining credit, for filing with a court of law or with
any governmental agency, or for any other purpose.
   (e) In general or as an incident to that work, renders
professional services to clients for compensation in any or all
matters relating to accounting procedure and to the recording,
presentation, or certification of financial information or data.
   (f) Keeps books, makes trial balances, or prepares statements,
makes audits, or prepares reports, all as a part of bookkeeping
operations for clients.
   (g) Prepares or signs, as the tax preparer, tax returns for
clients.
   (h) Prepares personal financial or investment plans or provides to
clients products or services of others in implementation of personal
financial or investment plans.
   (i) Provides management consulting services to clients.
   The activities set forth in subdivisions (f) to (i), inclusive,
are "public accountancy" only when performed by a certified public
accountant or public accountant, as defined in this chapter.
   A person is not engaged in the practice of public accountancy if
the only services he or she engages in are those defined by
subdivisions (f) to (i), inclusive, and he or she does not hold
himself or herself out, solicit, or advertise for clients using the
certified public accountant or public accountant designation. A
person is not holding himself or herself out, soliciting, or
advertising for clients within the meaning of this section solely by
reason of displaying a CPA or PA certificate in his or her office or
identifying himself or herself as a CPA or PA on other than signs,
advertisements, letterhead, business cards, publications directed to
clients or potential clients, or financial or tax documents of a
client.

5052.  Nothing in this chapter shall apply to any person who as an
employee, independent contractor, or otherwise, contracts with one or
more persons, organizations, or entities, for the purpose of keeping
books, making trial balances, statements, making audits or preparing
reports, all as a part of bookkeeping operations, provided that such
trial balances, statements, or reports are not issued over the name
of such person as having been prepared or examined by a certified
public accountant or public accountant.
   Nothing contained in this chapter shall affect, limit or be
construed as affecting or limiting the rights of any public
accountant who met the requirements of prior statutes and who was
registered with the board as a public accountant on or before
December 31, 1955.

5053.  Nothing contained in this chapter precludes a person who is
not a certified public accountant or public accountant from serving
as an employee of, or an assistant to, a certified public accountant
or public accountant or partnership or a corporation composed of
certified public accountants or public accountants holding a permit
to practice pursuant to this chapter if the employee or assistant
works under the control and supervision of a certified public
accountant, or a public accountant authorized to practice public
accountancy pursuant to this chapter and if the employee or assistant
does not issue any statement over his or her name.
   This section does not apply to an attorney at law in connection
with his or her practice of law.

5054.  (a) Notwithstanding any other provision of this chapter, an
individual or firm holding a valid and current license, certificate,
or permit to practice public accountancy from another state may
prepare tax returns for natural persons who are California residents
or estate tax returns for the estates of natural persons who were
clients at the time of death without obtaining a permit to practice
public accountancy issued by the board under this chapter or a
practice privilege pursuant to Article 5.1 (commencing with Section
5096) provided that the individual or firm does not physically enter
California to practice public accountancy pursuant to Section 5051,
does not solicit California clients, and does not assert or imply
that the individual or firm is licensed or registered to practice
public accountancy in California.
   (b) The board may, by regulation, limit the number of tax returns
that may be prepared pursuant to subdivision (a).

5055.  Any person who has received from the board a certificate of
certified public accountant may, subject to Section 5051, be styled
and known as a "certified public accountant" and may also use the
abbreviation "C.P.A." No other person, except a firm registered under
this chapter, shall assume or use that title, designation, or
abbreviation or any other title, designation, sign, card, or device
tending to indicate that the person using it is a certified public
accountant.

5056.  Any person who has received from the board a certificate of
public accountant may, subject to Section 5051, be styled and known
as a "public accountant" and may also use the abbreviation "P.A." No
other person, except a firm registered under this chapter, shall
assume or use that title, designation, or abbreviation or any other
title, designation, sign, card, or device tending to indicate that
the person using it is a public accountant.

5058.  No person or partnership shall assume or use the title or
designation "chartered accountant," "certified accountant," "enrolled
accountant," "registered accountant" or "licensed accountant," or
any other title or designation likely to be confused with "certified
public accountant" or "public accountant," or any of the
abbreviations "C.A.," "E.A.," "R.A.," or "L.A.," or similar
abbreviations likely to be confused with "C.P.A." or "P.A.";
provided, that any person qualified as a certified public accountant
under this chapter who also holds a comparable title granted under
the laws of another country may use such title in conjunction with
the title of "certified public accountant" or "C.P.A." and provided,
that any person enrolled to practice before the Internal Revenue
Service and recognized as an enrolled agent may use the abbreviation
"E.A."

5058.1.  A person or firm may not use any title or designation in
connection with the designation "certified public accountant" or
"public accountant" that is false or misleading.
   The board may adopt regulations covering the use of titles or
designations.

5058.2.  The holder of an inactive license issued by the board
pursuant to Section 462, when lawfully using the title "certified
public accountant," the CPA designation, or any other reference that
would suggest that the person is licensed by the board on materials
such as correspondence, Internet Web sites, business cards,
nameplates, or name plaques, shall place the term "inactive"
immediately after that designation.