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Professional Standards
Conduct and Ethics | Consent Orders
| Third-Party Complaints | Unauthorized
Use of CPA Title | Requests for 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 Robert N. Brooks, the Board's Executive Director,
J. Michael Barham, CPA, the Board’s Deputy
Director, and Noel L. Allen, Esq.,
the Board's 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 minimal privilege license fee to
the NC Department of Revenue.
However, anyone not licensed by the NC State Board of CPA Examiners is restricted to
using the title "accountant" while in this State.
Therefore,
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 should obtain a "Record of Complaint" form. All third-party 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. 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. 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 may recommend more information be obtained, the case be closed with or without prejudice, 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. 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. Disciplinary action is considered carefully on a case-by-case basis since the action may drastically affect the licensee's or CPA firm's reputation and ability to make a living. Remember that it takes more than a claim of wrongdoing to file a complaint with the Board; the allegation must be substantiated. Publication of Consent Orders and Other Disciplinary Actions Under 21 NCAC 08I .0101(d), the Board, at its discretion, may publish all disciplinary actions and Consent Orders. Unless otherwise determined, the Board publishes all disciplinary actions and Consent Orders. As a matter of policy, the Board publishes by name and geographic location all of the following:
All
Consent Orders and Board Orders are part of the Board’s monthly minutes. Public
Record/Disciplinary Action As a service to the
public, the Board has made its public record/disciplinary action files
available through this web site. 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. If an individual or firm has any public record/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. You may view
and print the document(s). NOTE: The public record/disciplinary actions are
either PDF documents; which require Adobe Acrobat Reader to view and print
the documents, or TIFFs (an image) which require Microsoft Office Document
Imaging to view and print the documents. If you prefer, you may contact Lisa
R. Hearne by e-mail at lisahearne@nccpaboard.gov
or by fax to 919/733-4209. Your request must include the following: ·
licensee’s name and
certificate number or the CPA firm’s name; and ·
your name; and ·
appropriate contact
information for delivery (fax, e-mail, Please allow at least 10 business days
for a response to your request. |