Certified Public Accountants (CPAs) provide critical tax and financial planning services to businesses and individuals in Kansas and nationwide. As the regulatory environment and tax code become increasingly complex, the work of CPAs becomes more challenging. Like all financial professionals, CPAs are vulnerable to discipline for even minor violations of their fiduciary role.
CPAs and CPA Firms may face professional discipline for several reasons, including:
- Violations of professional rules.
- The failure to file a return.
- Conviction of a felony.
- Personal financial misconduct.
If you are a CPA in Kansas facing an action against your license, you need experienced representation and counsel. The Lento Law Firm has experience representing many CPAs and financial professionals in the licensing and disciplinary process. The earlier in the process that the Lento Law Firm Professional License Defense Team is involved, the better for the CPA in question. However, we also handle appeals after an initial adverse finding. Wherever you are in the process, the Lento Law Firm can help. Call the Lento Law Firm today at 888-535-3686 or provide your details online, and we will contact you.
Board Licensing and Discipline Powers
The Kansas Board of Accountancy (“the Board”) is responsible for licensing CPAs and CPA Firms in Kansas. The Board has broad powers to license, regulate, and discipline CPAs and Firms in Kansas.
Disciplinary Actions by the Board
The Board may take the following disciplinary actions against a CPA or a Firm:
- Deny an application for a Kansas certificate.
- Revoke a certificate.
- Suspend a certificate.
- Deny an application for a permit.
- Revoke a permit.
- Suspend a permit.
- Refuse to renew a permit.
- Revoke a practice privilege.
- Suspend a practice privilege.
- Censure the holder of any such permit, certificate or practice privilege.
- Limit the scope of practice of any permit holder.
- Impose a fine not exceeding $5,000 per occurrence.
Grounds for Sanctions Against CPAs in Kansas
In Kansas, the following are possible grounds for sanctions of Certified Public Accountants:
- Fraud or dishonesty to the Board in obtaining a license.
- Revocation/suspension/cancellation of a license in another state.
- Failure to maintain compliance with licensing regulations in Kansas.
- Discipline or sanction by PCAOB or any state or federal agency.
- Fraud or dishonesty in practice.
- Failure to file a return or timely remittance of tax.
- Violation of rules or regulations of the Board.
- Willful violation of professional rules.
- Violating an order of the Board.
- Conviction of a felony or any crime involving dishonesty or fraud.
- Any fraudulent act.
- Falsification in support of the Board application of another person.
- Failure to comply with peer review.
- Any conduct which reflects negatively on fitness to practice.
Conviction of Felony or Crime Involving Dishonesty
The Board may revoke the license of any CPA convicted of a felony or any crime involving dishonesty or fraud. Such a conviction is also likely “conduct that reflects negatively on fitness to practice” under the regulations (i.e., it violates number 14, above).
Any criminal conviction may negatively impact a professional license, but some crimes are more likely to result in a license action. These include:
- A serious felony or offense, such as rape, aggravated assault or domestic violence.
- Any financial crime, especially those related to the profession, such as tax evasion, fraud, or securities fraud.
- Crimes involving dishonesty, including perjury or filing a false document.
- Tax crimes, including tax evasion, failure to file, or filing of a false return.
- Crimes that may show unfitness or serious drug or alcohol issues, such as controlled substance violations or DUI.
If you are charged with a crime and hold a professional license, you should contact a licensed defense attorney immediately. If the charges reflect badly on your character, the Board will likely consider them. If the charge deals with financial misconduct or dishonesty in any way, you will likely face some censure and may face a revocation of your license. Considering the potential cost of losing your license and vocation, investing in an experienced licensed defense attorney is smart money. The Lento Law Firm can advise you and assist you in obtaining the best outcome possible. It's your future—make sure you are protecting it.
Complaint Process
Step One: Complaint
The disciplinary process will often begin with the filing of a complaint by a member of the public or by an agency or other entity. This may be a disciplinary issue from another state or involve law enforcement. Additionally, the Board may become aware of the filing of a criminal charge or other incident, which may lead to the investigation of the incident or charge.
Step Two: Investigation
After the filing of a complaint, the Board must determine if probable cause exists to start an action under 1-311, 1-312, 1-316, or 1-322. The Board will conduct an investigation where one or more members act as investigating officers or officials. Alternatively, the Board may employ or hire an investigating official. This investigating official may testify later at the Hearing concerning the investigation.
The Board has broad powers to conduct this investigation. They may subpoena witnesses (order witnesses to appear and give statements under oath) and may order the production of evidence (order individuals or agencies to produce paper and electronic records). This record will remain confidential at this stage, and the confidentiality of the client's records is protected.
Step Three: Probable Cause Finding
Once the investigation is complete, the Board will consider whether there is probable cause that a violation occurred. If the Board finds probable cause, the Board will refer the matter to the Office of the Attorney General or to an attorney retained by the Board. The matter will be set for a Hearing under the Administrative Practices Act.
If the Board finds a lack of probable cause, the Board will dismiss the matter. The dismissal may be with prejudice (i.e., the Board will not hear the matter again) or without prejudice (the matter may be refiled in the future).
Step Four: Complaint and Response
If the Board finds probable cause, the prosecuting official will issue a complaint and serve the complaint upon the CPA. The CPA must then file a response and proceed with a defense. If the CPA does not respond, the Board may enter a final order without it.
Step Five: Informal Resolution/Settlement Discussions
After a finding of probable cause but before any scheduled hearing, the parties will have a prehearing conference and will be in discussions. During this phase, the prosecuting official and the CPA can negotiate an informal agreement on handling the complaint and charges. Many complaints can be handled through informal dispute resolution at this stage. Often, the Board may ask the CPA to sign a consent agreement or order. The licensee should consult with an attorney before signing any consent order or agreement. These agreements involve the loss of appeal and due process rights and should be entered only with counsel's advice.
Step Six: Hearing under the Administrative Procedures Act
If the Board finds Probable Cause, the disciplinary matter will go to a Hearing under the Administrative Procedures Act. At the scheduled Hearing, the licensee may appear, or a partner or owner may represent a firm. The prosecuting official or attorney for the Board will present evidence collected during the investigation. The CPA may present evidence, may examine and cross-examine witnesses, and may be represented by an attorney. After the presentation of evidence, the parties may present an argument.
This Hearing may take place electronically or telephonically if the parties agree. See the following section on the Hearing Procedure.
Step Seven: Initial or Final Order
After the hearing, the presiding officer will issue an Initial or Final Order within 30 days of the close of the Hearing. The Order will set forth specific findings of fact and conclusions of law.
Step Eight: Agency Review/Reconsideration/Appeal
The CPA may Petition the Board for review or reconsideration of the Initial or Final Order of the presiding officer. If this is unsuccessful, a CPA adversely affected may file for a Court review of the Final Order.
Step Nine: Reinstatement
The Board has broad powers to reinstate licenses previously suspended or revoked in Kansas. The Board may also restore or modify privileges and may reissue or modify the suspension of any permit or certificate. If a permit or certificate has been suspended, it is important to review the prior order carefully and fully comply with the conditions. If the CPA has met the conditions for reinstatement, it may be time to seek restoration of the permit or certificate.
Hearing procedure
For many CPAs accused of misconduct, the Hearing is a critical opportunity to present their version of events. The presiding officer will oversee the Hearing and determine the course of proceedings. At the Hearing:
- The Board must disclose all relevant facts and issues.
- The formal rules of evidence are more relaxed at the presiding officer's discretion.
- The Board will present evidence, and the CPA will have the opportunity to cross-examine witnesses offered by the Board.
- The CPA will be able to call witnesses and present evidence.
- There will be an opportunity for the CPA to present rebuttal evidence to any assertion made by the Board at the Hearing.
- The parties will be able to present oral or written arguments or statements.
- All witnesses will give testimony under oath, and the presiding officer may administer the oath to the witnesses.
- The Hearing may be conducted electronically or telephonically, in whole or part.
- The Hearing will be recorded at no expense to the CPA.
- The Hearing is open to public observation, except where it is necessary to close parts because of confidentiality.
Why You Should Hire the Lento Law Firm
The Lento Law Firm Professional License Defense Team are some of the most experienced license defense attorneys in the country. They have represented countless financial professionals, including CPAs and firms.
Whether you work in Wichita, Overland Park, Topeka, or elsewhere in Kansas, the Lento Law Firm can defend your CPA license.
How Does the Lento Law Firm Defend You?
The Lento Law Firm Professional License Defense Team will be with you every step of the way as we defend your license and reputation. The Lento Law Firm will:
- Commence representing you wherever you are in the process, even if it's an appeal.
- Review the allegations in the complaint and advise you as to the risks and challenges of various options.
- Seek early dismissal of the case based on alternative dispute resolution.
- Represent your interests during the investigation of the complaint.
- Review your answer to the complaint or charge.
- Advise you when a settlement or a consent order may be the best course of conduct in your case and when it is not.
- Represent you at the Hearing, including opening and closing statements, examination of witnesses, cross-examining Board witnesses, and all other hearing tasks.
- Represent you on a Petition for Review or Motion for Reconsideration or a formal appeal. Sometimes, the Lento Law Firm will commence representation after the Hearing. We represent CPAs in the appeal process even if we were not your attorneys during the investigation and hearing. The earlier we enter our representation of your case, the better, but we take our clients as they come. Don't fail to call for assistance because you should have called sooner—we can help with an appeal if necessary.
- If applicable, the Lento Law Firm can represent you as you seek reinstatement or expungement of your record.
Even if you have come this far without counsel, the Lento Law Firm can help, but it is imperative to call and begin the process as quickly as possible. The Lento Law Firm Professional License Defense Team will vigorously defend your livelihood and profession. Act now to protect your reputation and your future. Call us today at 888-535-3686 or submit your details online, and we will contact you.
