21 ncac 08n .0202         DECEPTIVE CONDUCT PROHIBITED

(a) A CPA shall not engage in deceptive conduct. "Deception" means any fraud, misrepresentations, representations, or omissions that a CPA either knew or should have known to have a capacity or tendency to be misleading.  Deceptive conduct shall be prohibited whether or not anyone has actually been deceived.

(b)  Prohibited conduct under this Section includes deception in:

(1)           obtaining or maintaining employment;

(2)           obtaining or keeping clients;

(3)           obtaining or maintaining certification, inactive status, or exemption from peer review;

(4)           reporting CPE credits;

(5)           certifying the character or experience of exam or certificate applicants;

(6)           implying abilities not supported by education, professional attainments, or licensing recognition;

(7)           asserting that services or products sold in connection with use of the CPA title are of a particular quality or standard when they are not;

(8)           creating false or unjustified expectations of favorable results;

(9)           using or permitting another to use the CPA title in a form of business not permitted by the accountancy statutes or rules;

(10)         permitting anyone not certified in this State (including one licensed in another jurisdiction) to unlawfully use the CPA title in this State or to unlawfully operate as a CPA firm in this State; or

(11)         falsifying a review, report, or any required program or checklist of any peer review program.


History Note:        Authority G.S. 55B-12; 57D-2-02; 93-12(3); 93‑12(9);

Eff. April 1, 1994;

Amended Eff. January 1, 2014; January 1, 2004; April 1, 1999;

Readopted Eff. February 1, 2016.