21 ncac 08n .0202          DECEPTIVE CONDUCT PROHIBITED

(a)  Deception Defined. A CPA shall not engage in deceptive conduct. Deception includes fraud or misrepresentation and representations or omissions which a CPA either knows or should know have a capacity or tendency to deceive. Deceptive conduct is prohibited whether or not anyone has been actually deceived.

(b)  Prohibited Deception. Prohibited conduct under this Section includes but is not limited to deception in:

(1)           obtaining or maintaining employment;

(2)           obtaining or keeping clients;

(3)           obtaining or maintaining certification, retired 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 laws or rules;

(10)         permitting anyone not certified in this state (including one licensed in another state) 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; 57C-2-01; 93‑12(9);

Eff. April 1, 1994;

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