Does Act 160 of 1975, as amended, permit the use of designations such as "Licensed Public Accountant" and "Registered Public Accountant" or abbreviations therefore, i.e., "LPA" and "RPA", by persons registered by the Board under Section 5 of Act 160? ANSWER: No. These may be confused with "CPA" a

STATE OF ARKANSAS OFFICE OF THE ATTORNEY GENERAL 201 EAST MARKHAM STREET HERITAGE WEST BUILDING STEVE CLARK . ATTORNEY GENERAL LITTLE ROCK, ARKANSAS 72201 OPINION NO. 86-235 (501) 371-2007 April 18, 1986 James Ward, Executive Director Arkansas State Board of Public Accountancy 1515 West Seventh, Suite 320 Little Rock, AR 72201 Dear Mr. Ward: This letter is in response to your request for an opinion regarding the following question: Does Act 160 of 1975 as amended permit. the use of “designations such as “Licensed Public Accountant" and ‘Registered Public.Accountant" or abbreviations therefor,. i,e., "LPA™ and "RPA'', by persons registered by the Board under §5 of Act 1607 We. understand that the Board has determined that such “designations .and abbreviations are likely to be confused with "Certified Public Accountant" and "CPA. " - The. Public Accountancy Act of 1975 as amended, Ark. Stat. Ann, §71-611: et seq regulates the practice of public accounting, ‘It. creates two distinct ‘classifications: ‘certified. public accountants and public accountants... The -:former’ "shall be styled and known as a. 'Certified Public. . Accountant'," may use the abbreviation "CPA" and may be- known as a "Public Accountant.'"' “Ark, Stat. Ann. §71-6113. - ‘The latter shall be styled and known as a ("Public Accountant." Ark. Stat... Ann. §71-615. The distinction between the two. classifications is the ‘criteria for recognition by the Board. See. Ark. Stat. Ann, §71-613 and ° 871 - 615. | oo, OO The | Act further: addtesses ‘the use of various tities and abbreviations. . Specifically, Ark. Stat. Ann. 71-626{e) © -prohibits any person or firm from using certain designations. _ James Ward, Executive D April 18, 1986 Page 2 irector or abbreviations as well as any similar term likely to be confused with "Certified Public Accountant" or "CPA." This to any person rather than being limited to persons not registered under the Act. section is applicable Prohibiting designations and—abbreviations from being used ‘by licensees or unlicensed commercial speech. The persons is reguiation of State can exercise such power subject to the First Amendment. Clearly, the State can prohibit the use of commercial speech. Zauderer false, misleading or deceptive v. Office of Disciplinary Counsel, 53 U.S.L.W 4587 (May 28, 1985}. That power extends to prohibiting speech which has a capacity to deceive. Charlies of the Ritz v. FTC, 143 F.2d 676 (1944). That standard appears to be substantially the same as that in Ark. Stat. Ann. §$71-626{e) which is "likely to be confused with." In addition to this prohibition against using terms likely to be confused with CPA, states the licensee particular manner. It the word "shall"' is Arkansas State Highway shall as noted above, the Act explicitly be known and styled in a is not necessary to address whether directive. rather than mandatory. v. Mabry, 229. Ark. 261, 315 S.W.2d 900 (1958). That directive or requirement, coupled with the prohibition against terms which the Board believes are likely to be confused with "CPA", appear to preclude the use agg t hg, fegsignations and abbreviations stated in your inquiry. SPIRS Rage ge erage Dy et FReucrte Aces y . e Bey ly bitsy Sate bent Re OW ages erie Therefore, it is my opinion that Act 160 of 1975 does not permit the use of the terms "Licensed Public Accountant," "Registered Public Accountant," "LPA," or "RPA." The foregoing opinion, which I hereby approve, was prepared - by. Assistant Attorney General Thomas S. Gay. . JSC:TSG:jk Sincefely, Wd STEVE €LARK | Attorney General