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Professional
Standards Conduct and Ethics | Consent
Orders | Third-Party
Complaints/Complaint Procedure | Unauthorized Use
of CPA Title | Public Record/Disciplinary Action
Information General InformationThe Professional Standards section of the
Board is responsible for all matters pertaining to the professional ethics
and conduct of CPAs. The Professional Standards staff works closely with the
Board’s Executive Staff and Legal Counsel, to enforce the Rules of Professional Ethics and Conduct adopted
by the Board pursuant to NCGS 93-12(9).
Mailing Address: NC State Board of CPA Examiners, Attn.:
Professional Standards, Fax Number: (919) 733-4209, Attn.: Professional Standards The reliance of the public and the business community on sound financial reporting and advice on business affairs imposes on the accounting profession an obligation to maintain a high standard of technical competence, morality, and integrity. To this end, a CPA should at all times maintain independence of thought and action, hold the affairs of clients in strict confidence, strive continuously to improve professional skills, observe generally accepted principles and standards, promote sound and informative financial reporting, uphold the dignity and honor of the accounting profession, and maintain high standards of personal conduct. The Rules of Professional Ethics and Conduct adopted and enforced by the Board cover a broad range of behaviors but do not enumerate every possible unethical act. These rules are applicable to all certificate holders. When interpreting or enforcing these rules, the Board may give consideration, but not necessarily dispositive weight, to relevant interpretations, rulings, and opinions issued by other boards of accountancy and by appropriately authorized ethics committees of professional organizations such as the North Carolina Association of CPAs (NCACPA) and the American Institute of CPAs (AICPA). A CPA is responsible for ensuring not only his or her compliance with these rules, but also the compliance with these rules by anyone who is the CPA's partner, fellow shareholder, or who the CPA supervises. A CPA or CPA firm should not permit others (including affiliated entities) to carry out on the CPA's behalf, with or without compensation, acts which if carried out by a CPA would be a violation of the Rules of Professional Ethics and Conduct. A CPA firm is responsible for assuring compliance with these rules by any of its officers, directors, shareholders, partners, proprietors, employees, or agents. Unauthorized Use of CPA TitleNorth Carolina accountancy law is unique in
that anyone can practice public accountancy by paying a privilege license fee
to the NC Department of Revenue.
However, anyone residing in this State who is not licensed by the NC State
Board of CPA Examiners as a CPA is restricted to
using the term "accountant," and only the term accountant in
connection with his or her name on all reports, letters of transmittal, or
advice, and on all stationery and documents used in connection with his or
her services as an accountant, and must refrain from the use in any manner of
any other title or designation in such practice while in this State. It
is unlawful for any person who has not received a certificate of
qualification or not been granted a practice privilege under NCGS 93-10 admitting the person
to practice as a certified public accountant to assume or use such a title,
or to use any words, letters, abbreviations, symbols or other means of
identification to indicate that the person using same has been admitted to
practice as a certified public accountant [NCGS 93-3]. It
is unlawful for any firm, copartnership, or
association to assume or use the title of certified public accountant, or to
use any words, letters, abbreviations, symbols or other means of
identification to indicate that the members of such firm, copartnership
or association have been admitted to practice as certified public
accountants, unless each of the members of such firm, copartnership
or association first shall have received a certificate of qualification from
the State Board of Certified Public Accountant Examiners or been granted a
practice privilege admitting each member of the firm, copartnership,
or association to practice as a certified public accountant; provided,
however, that the Board may exempt those persons who do not actually practice in or reside in the State
of North Carolina from registering and receiving a certificate of
qualification under this section [NCGS 93-4]. It
is unlawful for any corporation to assume or use the title of certified
public accountant, or to use any words, letters, abbreviations, symbols or
other means of identification to indicate that such corporation has received
a certificate of qualification from the State Board of Certified Public
Accountant Examiners admitting it to practice as a certified public
accountant [NCGS
93-5]. A person licensed as a CPA in another
jurisdiction who moves to Non-resident CPAs who wish to practice in Third-Party
Complaints and Complaint
Procedure If
you have reason to believe that a licensee has violated NCGS 93-12(9),
which includes, but is not limited to, conviction of a felony; conviction of
a crime in which deceit, dishonesty, or fraud is an essential element; fraud
or deceit in obtaining a certificate as a CPA; or dishonesty, fraud, or gross
negligence in the public practice of accountancy; you are encouraged to file
a complaint with the Board using the
"Record of Complaint" form. All complaints submitted to the
Board must be made on this form and the form must be notarized. The Record of
Complaint should provide a specific and detailed summary of the complaint and
must include any supporting documentation that supports the allegation of
wrongdoing. If you are
considering filing a complaint with the Board, please keep in mind that
licensees or CPA firms who are found to be in violation of the statutes or
rules are subject to disciplinary action; the Board cannot intervene in a
dispute regarding the fees charged by a CPA or a CPA firm. Once a complaint
is filed with the Board and the Board initiates an investigation, the Board
does not cease its investigation until the Board resolves any disciplinary
interest it may have in the matter. You should not attempt to discuss your
case with any member of the Board, either directly or in hypothetical terms,
since to do so may disqualify that Board member from hearing your case. The
Board discourages contact between a complaining third party and a licensee
once a complaint has been filed. If contact occurs and a settlement is
reached, be aware that the Board’s investigation will continue until the
Board determines that its disciplinary interests have been resolved regarding
the alleged violations of the Board’s statutes and rules. Upon
receipt, the complaint and evidence are reviewed by staff and legal counsel
in light of case precedents and informal guidelines established by the
Board's Professional Standards Committee. If the complaint does not appear to
center on a violation that is within the Board's jurisdiction, the Board may
close the case “with prejudice.” "With prejudice" means that the
matter is being formally and finally closed. If the complaint does center on
a violation that is within the Board's jurisdiction, an initial letter
requesting a response to the allegations is sent to the licensee or CPA firm
against whom the complaint is filed. Once a reply from the licensee or
CPA firm is received by the Board, a copy of the response may be sent to the
complainant for his or her response. This portion of the investigative
process may be quite lengthy and may require additional information or
evidence from the complainant, licensee, CPA firm, or related parties. After
staff and legal counsel have gathered pertinent information or evidence, the
matter is referred to the Board's Professional Standards Committee. The
Committee--three members of the Board--may recommend more information be
obtained, the case be closed with or without prejudice (“without prejudice”
means that the case may be reopened if additional evidence is obtained at a
later time which substantiates the original allegations), or that the case
continue forward. The Committee does not determine guilt or innocence; it
simply reviews the complaint to determine whether the allegations, supported
by competent evidence, would warrant a contested case proceeding. After
guidance from the Committee, staff, and legal counsel may approach the
licensee or CPA firm to negotiate a Consent Order for settlement prior to a
hearing. The majority of cases are resolved through a Consent Order because
this allows more options in achieving a balanced resolution. If a settlement
cannot be reached, a public hearing will be held. All involved parties may be
requested to appear and testify at the hearing. After the hearing, the Board
may issue an order which the licensee or CPA firm may appeal to Superior
Court. Publication of Consent Orders and Other Disciplinary Actions Under
21 NCAC 08I .0101(d), the Board, at its
discretion, may publish in the Activity
Review all actions resulting in an Order, a Board Order or a Consent
Order. All Orders, Board Orders, and Consent Orders will be made part of the
Board’s monthly minutes. Orders, Board
Orders, Consent Orders, and Notices of Hearing may be placed in the licensee’s
file or firm’s file in the database. Public
Record/Disciplinary Action In accordance with North Carolina General Statute (NCGS)
93-12.2 and NCGS 132-1 (the North Carolina Public Records Act, the Board has made its public record files available through
this website. To determine if an individual is, or has been, licensed by the
Board as a CPA, or if a firm is, or has been registered with the Board, you
may search the Board’s database. In
addition, if an individual or firm has any public disciplinary action on file
with the Board, a link, “Public Documents” will display on the Details page
of the individual’s record or the firm’s record. Please not that any complaint, investigation, inquiry, or
interview not leading to formal Board action is not considered public
record information under NCGS 132-1 and is therefore not public record. You may view and print the document(s). NOTE:
You must turn off all pop-up blockers in order to see the full record. The
public record/disciplinary actions are either PDF documents; which require
Adobe Acrobat Reader to view and print the documents, or TIFFs (images) which
require Microsoft Office Document Imaging to view and print the documents. In order to print all pages of some TIFF documents, you may
need to use the “select all pages” option before selecting the “print”
function. |