Retention of client records

1. Q: I am a CPA and my client owes me for a past due bill. May I withhold the client's records until I am paid?
A: Rule 4701-11-06 states that you must return client records 30 days after the client makes a written request for the records. This time period may be used by you to collect past due fees. However, if the client still does not pay after the 30-day period expires, you must return the client records and enforce collection by other means.

2. Q: AICPA ethics interpretation 501-1 (ET section 501.02) seems to permit me to hold on to records until I get paid by the client. Why is the Board's rule different?
A: The AICPA ethics interpretation has no deadline for return of client records. The Board's opinion is that a rule without a deadline is not enforceable; consequently, the Board's rule balances the interests of the client with those of the CPA.

3. Q: I have records of clients that are no longer with my firm. How long must I keep these records?
A: The retention period for ex-client records falls under "best practices" and the accountancy law is silent on this topic. You may be able to obtain general guidance from the OSCPA, AICPA, IRS, or published sources in this matter.

Firm names

3. Q: I am a 51% owner of a CPA firm and the other shareholder of the firm is not a CPA. May I use the names of the two owners in the firm name with the CPA designation?
A: The use of both names in the firm name with the designation "CPA" is a violation of rule 4701-11-05, because to imply that both owners are CPAs is misleading.