5060.  (a) No person or firm may practice public accountancy under
any name which is false or misleading.
   (b) No person or firm may practice public accountancy under any
name other than the name under which the person or firm holds a valid
permit to practice issued by the board.
   (c) Notwithstanding subdivision (b), a sole proprietor may
practice under a name other than the name set forth on his or her
permit to practice, provided the name is registered by the board, is
in good standing, and complies with the requirements of subdivision
(a).
   (d) The board may adopt regulations to implement, interpret, and
make specific the provisions of this section including, but not
limited to, regulations designating particular forms of names as
being false or misleading.


5061.  (a) Except as expressly permitted by this section, a person
engaged in the practice of public accountancy shall not:  (1) pay a
fee or commission to obtain a client or (2) accept a fee or
commission for referring a client to the products or services of a
third party.
   (b) A person engaged in the practice of public accountancy who is
not performing any of the services set forth in subdivision (c) and
who complies with the disclosure requirements of subdivision (d) may
accept a fee or commission for providing a client with the products
or services of a third party where the products or services of a
third party are provided in conjunction with professional services
provided to the client by the person engaged in the practice of
public accountancy.  Nothing in this subdivision shall be construed
to permit the solicitation or acceptance of any fee or commission
solely for the referral of a client to a third party.
   (c) A person engaged in the practice of public accountancy is
prohibited from performing services for a client for a commission or
from receiving a commission from a client during the period in which
the person also performs for that client any of the services listed
below and during the period covered by any historical financial
statements involved in those listed services:
   (1) An audit or review of a financial statement.
   (2) A compilation of a financial statement when that person
expects, or reasonably might expect, that a third party will use the
financial statement and the compilation report does not disclose a
lack of independence.
   (3) An examination of prospective financial information.
   (d) A person engaged in the practice of public accountancy who is
not prohibited from performing services for a commission, or from
receiving a commission, and who is paid or expects to be paid a
commission, shall disclose that fact to any client or entity to whom
the person engaged in the practice of public accountancy recommends
or refers a product or service to which the commission relates.
   (e) The board shall adopt regulations to implement, interpret, and
make specific the provisions of this section including, but not
limited to, regulations specifying the terms of any disclosure
required by subdivision (d), the manner in which the disclosure shall
be made, and other matters regarding the disclosure that the board
deems appropriate.  These regulations shall require, at a minimum,
that a disclosure shall comply with all of the following:
   (1) Be in writing and be clear and conspicuous.
   (2) Be signed by the recipient of the product or service.
   (3) State the amount of the commission or the basis on which it
will be computed.
   (4) Identify the source of the payment and the relationship
between the source of the payment and the person receiving the
payment.
   (5) Be presented to the client at or prior to the time the
recommendation of the product or service is made.
   (f) For purposes of this section, "fee" includes, but is not
limited to, a commission, rebate, preference, discount, or other
consideration, whether in the form of money or otherwise.
   (g) This section shall not prohibit payments for the purchase of
any accounting practice or retirement payments to individuals
presently or formerly engaged in the practice of public accountancy
or payments to their heirs or estates.



5062.  A licensee shall issue a report which conforms to
professional standards upon completion of a compilation, review or
audit of financial statements.


5063.  (a) A licensee shall report to the board in writing of the
occurrence of any of the following events occurring on or after
January 1, 1997, within 30 days of the date the licensee has
knowledge of these events:
   (1) The conviction of the licensee of any of the following:
   (A) A felony.
   (B) Any crime related to the qualifications, functions, or duties
of a public accountant or certified public accountant, or to acts or
activities in the course and scope of the practice of public
accountancy.
   (C) Any crime involving theft, embezzlement, misappropriation of
funds or property, breach of a fiduciary responsibility, or the
preparation, publication, or dissemination of false, fraudulent, or
materially misleading financial statements, reports, or information.

   As used in this section, a conviction includes the initial plea,
verdict, or finding of guilt, pleas of no contest, or pronouncement
of sentence by a trial court even though that conviction may not be
final or sentence actually imposed until appeals are exhausted.
   (2) The cancellation, revocation, or suspension of a certificate,
other authority to practice or refusal to renew a certificate or
other authority to practice as a certified public accountant or a
public accountant, by any other state or foreign country.
   (3) The cancellation, revocation, or suspension of the right to
practice as a certified public accountant or a public accountant
before any governmental body or agency.
   (b) The report required by subdivision (a) shall be signed by the
licensee and set forth the facts which constitute the reportable
event.  If the reportable event involves the action of an
administrative agency or court, then the report shall set forth the
title of the matter, court or agency name, docket number, and dates
of occurrence of the reportable event.
   (c) A licensee shall promptly respond to oral or written inquiries
from the board concerning the reportable events, including inquiries
made by the board in conjunction with license renewal.
   (d) Nothing in this section shall impose a duty upon any licensee
to report to the board the occurrence of any of the events set forth
in subdivision (a) either by or against any other licensee.