After completing your education and passing the licensing examination, the California Board of Accountancy will issue you a license. This allows you to practice as a certified public accountant in the state. Professional misconduct, such as fraud, unethical practices, and criminal convictions, will be reported to the CBA, which investigates the situation. After the investigation, an administrative hearing is scheduled to determine appropriate disciplinary action.

Whether you have been wrongfully accused of misconduct or have made an uncharacteristic mistake, the outcome of an administrative hearing can have devastating effects on your career. Therefore, seeking legal insight is critical in ensuring a favorable outcome for your case.

We have extensive experience handling the California Board of Accountancy at Kern County License Attorney. Our skilled attorneys will work closely with you to close your investigation without disciplinary action or minimize the impact on your licenses and livelihood.

The Role of Certified Public Accountants

A certified public accountant has the necessary education and demonstrated accounting proficiency. You become a certified public accountant after obtaining a bachelor’s degree in accounting or auditing. Additionally, you must pass the licensing examination before you receive the CPA license to practice in California.

The California Board of Accounting is a state agency that regulates the licensing and practice of accountants. The CBA has a code of conduct that all license holders must follow, failure to which you can be reported to the board. The responsibilities of a certified public accountant include:

  • Financial analysis. CPAs are the masters of financial analysis. This is by providing insight for businesses to make better financial decisions.

  • Tax planning and preparation. CPAs are experts in navigating tax laws. This ensures that their clients pay their fair share of taxes and stay on the right side of the law.

  • Auditing. CPAs conduct audits to verify the credibility and accuracy of financial information, which assures creditors, stakeholders, and investors that their money is safe.

Common Violations by Certified Public Accountants in California

The CPA credential signifies expertise and credibility. With your CPA license, you must undergo extensive training and licensing to handle different accounting tasks. A CPA license gives you the right to offer your services to clients. Unfortunately, you could lose your livelihood and stall your career when you are reported for the following violations:

  • Practicing without a license. You must obtain a valid CPA license to practice as a certified accountant in California. Practicing without a license or continuing to offer services with a suspended or revoked license is a violation that can land you in severe trouble with the board.

  • Practicing beyond the scope of your license. There are limits to the services you can offer with a CPA license. If you practice beyond the limits or scope of your license, you can face disciplinary action.

  • Negligence. Engaging in acts of ordinary or gross negligence in your practice as an accountant can prompt the board to investigate and potentially take disciplinary action.

  • Breach of fiduciary duty. Under California law, your fiduciary duty is your responsibility and legal obligation to act in your clients' best interests. Failure to do this could be reported to the board as a violation.

  • Criminal conviction. As a holder of a CPA license, your criminal conviction will be reported to the board. Even if your underlying crimes do not affect your ability to perform your duties as an accountant, a conviction can cause a loss of your professional license.

Disciplinary Process by the California Board of Accounting

The disciplinary process by the California Board of Accountancy can be lengthy and demanding. That is why it is critical to have expert legal guidance from the moment you learn of the reports made against you.

The following are the steps involved in the CBA disciplinary process:

Complaints

Your CBA disciplinary case will begin when a complaint is reported to the board. In this case, consumers, law enforcement, or professional societies could make claims.

Additionally, the CBA authorities are mandated to carry out internal investigations where they could discover misconduct. If your misconduct violates the California Business and Professions Code or another statute, it can be forwarded to the law enforcement division for formal charges.

Investigations

The California Board of Accountancy does not act on all complaints reported to it. Further action will be taken if a complaint is proven credible. The board may not take issues like simple fee disputes seriously.

If the CBA is investigating you, you will receive a notice indicating the alleged misconduct violations and the list of due processes you must undergo before disciplinary action is taken against you.

In addition to the notice, the board may request that you provide additional information and materials to aid further investigations. The CBA will also subpoena any witnesses in your case, including the alleged victims of your acts, your colleagues, and your supervisors.

Although the CBA investigation is less formal compared to criminal trials, it is imperative to have legal guidance. Your defense attorney will:

  • Accompany you to investigation meetings

  • Protect your rights from the moment you receive the notice to the hearing

  • Work with you to build a defense strategy against

  • Guide you on the right way to respond to the board

  • Gather and submit evidence at your administrative hearing

  • Negotiate with the board and involved parties for less severe disciplinary measures

After the board conducts a thorough investigation, you will be given a date to attend the administrative hearing. At this hearing, you can defend your license by denying the allegations and presenting mitigating factors for your disciplinary case.

Outcome of an Administrative Hearing

The timeline for investigations and administrative hearings for certified public accountants could vary depending on the misconduct reported. There are three typical outcomes of the disciplinary hearing:

Closure

If the board finds insufficient evidence to substantiate the allegations brought against you, the complaint will be dismissed without further action.

Citation

The board can issue a citation for professionals who have committed minor violations. While citations are not considered formal discipline, they could include fines and a formal warning letter. Failure to follow through with the conditions of your citation will result in formal disciplinary measures like license probation and suspension.

Formal Discipline

The CBA regulates public accountancy practices in California. Therefore, if you are found to have committed the alleged professional violations, the board can impose the following formal disciplinary measures:

  • Public reprimand. For minor violations, the CBA can issue a public reprimand. This serves as a warning and will not directly impact your license. However, a public reprimand remains on your record and is accessible to the public.

  • Administrative fines. Sometimes, the board will order you to pay administrative fines for your violation.

  • CPA license probation. The California Board of Accountancy could put your CPA license on probation for more severe violations. Although you can continue to work during the probationary period, the board will monitor your practice.

  • Suspension of your license. A CPA license suspension prohibits you from practicing as an accountant throughout the suspension period. The length of your license suspension will depend on the severity of your violation and your criminal history. 

  • License revocation. A CPA license revocation is the most severe form of discipline that the CBA could issue. The board will impose such action when you are found to have committed a severe violation, or you committed a violation while on license probation.

Frequently Asked Questions on Certified Public Accountant License Defense

As a certified public accountant in California, your license is your livelihood. If you are under investigation for committing a professional violation, you need to act fast to protect your rights and increase your chances of keeping your license. The following are frequently asked questions on CPA license defense:

Does a criminal charge trigger accountant discipline?

No. The California Board of Accountancy will not initiate a disciplinary action or investigation against you when you are arrested and charged with a criminal offense. Instead, the board will investigate you after a conviction. A conviction for a felony or misdemeanor includes a guilty verdict, guilty or no contest pleas. The CBA will act on your conviction if the time for your appeal has elapsed or the conviction was affirmed on appeal.

Can I receive a CPA license with a criminal record?

A criminal conviction on your record will not automatically disqualify you from receiving a license as a certified public accountant. The board will look into your background when you apply for the license. The nature and severity of your criminal convictions will impact your ability to receive the license.

Your chances of obtaining a public accountant license increase if you prove that you have served and completed your sentence and have been rehabilitated. However, you may be disqualified for the license if your conviction was a serious financial felony or you are a registered sex offender.

What should I do if the CBA contacts me?

The CBA will contact you when you are reported for a violation by customers, or they are notified of your criminal conviction. After receiving the notice, you must respond to the board, informing them of your intentions to defend your license. Any information you provide to the board can be used against you in your administrative hearing. Therefore, you must be careful with your response.

Hiring a skilled license defense attorney as soon as you are notified of the investigation is critical in ensuring that you receive expert guidance throughout the discipline process. Your attorney can step into your case and clear up the misunderstandings. Additionally, your lawyer will help you navigate the board hearing for a favorable outcome.

What mitigating factors can I present to lessen the CBA disciplinary action against my license?

A mitigating factor is a circumstance that could lessen the weight of your violations and reduce the gravity of the disciplinary action you stand to face. With the guidance of a skilled attorney, you can present the following mitigating factors at your administrative hearing:

  • No actual harm to a client or consumer. You may have a chance at a lighter disciplinary action if you can prove to the board that you did not cause actual harm to a consumer, client, or the public.

  • The harm that occurred was minimal. Misconduct by a certified public accountant will likely cause financial losses or harm to the victims. If you caused minimal loss, the board may be lenient in their punishment.

  • The violations were unintentional. You could face allegations with the CBA for intentional acts or mistakes you may have made in your practice as a Certified Public Accountant. Your punishment will be more lenient if your violation results from an unavoidable error.

  • You did not receive financial gain from the violation. Certified public accountants offer services surrounding financial issues. Therefore, common forms of misconduct include fraud or other mistakes that can cause financial losses. You can negotiate with the board for lenient action by proving that you did not receive any financial benefits.
  • Evidence of rehabilitation. If you face an investigation and potential discipline by the CBA for a criminal conviction, you can present evidence of rehabilitation as a mitigating factor.
  • You cooperated with the board. Proving cooperation with the California Board of Accountancy throughout the investigation process can lessen the weight of your violations.

Find a Reliable License Defense Lawyer Near Me

As a certified public accountant, your license is your livelihood. Your license allows you to seek employment and assures your clients of your training and authority to provide accounting services. However, your license could be at stake if you engage in professional misconduct or face a criminal conviction.

If you are a certified public accountant facing a complaint and investigation by the CBA for misconduct, you must act factually and aggressively to protect your license and career. The first step in fighting the allegations against you and prevailing in the administrative hearing is hiring and retaining a competent license-defense lawyer.

At Kern County License Attorney, we will help you understand the potential implications of your violation for your career and license. Additionally, we can build a solid defense to present at your administrative hearing and negotiate for a lesser disciplinary action with the California Board of Accountancy. Contact us at 805-702-8560 from any location in Kern County, CA, to discuss your case.