Being a certified public accountant (CPA) is a career you should be proud of. After numerous years and tens of thousands of dollars paid for your education, it may be scary to learn that there is a threat to your Delaware CPA license. When you work hard every day for your clients, you might even need clarification as to why a complaint has been filed against you at all.
Even if you believe you have done nothing wrong, you cannot take any allegations against your license lightly. You cannot afford to lose your license, livelihood, or reputation. Don't gamble on your license by going into defending your license alone. The Lento Law Firm Professional License Defense Team is here to help you through this difficult time. Our Team will walk you through all the steps of the disciplinary process in Delaware and potential outcomes. We will then skillfully prepare the best defense possible for your case, keeping you involved every step of the way. Call the Lento Law Firm at 888-535-3686 or contact us online to get started today.
Delaware Certified Public Accounting Regulatory Body
The Delaware Board of Accountancy is the regulatory body for CPAs and certified public accounting firms. The Board states its primary mission is "to protect the general public from incompetent accounting services and practices which tend to reduce competition or fix prices for accounting services." The Board maintains the standards of professional competence and service delivery through developing and implementing regulations and policies and adjudicating complaints against public accountants, certified public accountants, and accounting firms.
There are eight members of the Board, three of whom serve in a leadership capacity: President, Secretary, and Educator. Five Board members are CPAs, two are public members, and one member is a public accountant.
You should also be aware of the Delaware Division of Professional Regulation. The Division maintains a list of disciplinary actions for all professional licensees in the state of Delaware, including CPAs. When the Board of Accountancy issues an order of disciplinary action against a CPA, that information will be sent to the Division. It will then update the list of disciplinary actions, accessible to the public at no cost through Delaware's Open Data Portal. You may also look up a CPA's license status and disciplinary actions on an alternative Division website.
Delaware Certified Public Accounting Laws and Regulations
There are a few main laws and regulations relating to the practice of accountancy; these laws and regulations detail the requirements and standards for practicing public accounting, licensure requirements, and procedures for disciplinary action. These laws and regulations are:
- The Delaware Code Chapter on the Board of Accountancy details the objectives and authority of the Board of Accountancy.
- The Delaware Code Section on the Division of Professional Regulation explains the disciplinary process.
- The Delaware Code Section on Unprofessional Conduct details the grounds for disciplinary action (discussed in the sections below.
Delaware Certified Public Accountant Allegations and Disciplinary Actions
Every case can be handled differently, and your Lento Law Firm attorney can negotiate with the Division and Board throughout the disciplinary process, but typically, the disciplinary process will look like this:
Initial Complaint
The Board of Accountancy and the Division of Professional Regulation only have the authority to investigate complaints regarding practicing public accounting as an individual or business without a license, and public accounting licensees, individuals, and firms are violating public accountancy laws, regulations, and practice standards. The Division stresses that all billing and insurance-related issues must be filed with either the Delaware Department of Justice Consumer Protection Division or the Delaware Department of Insurance.
Complaints are filed with the Divisional of Professional Regulation. There are no restrictions on who can file a complaint against an individual public accountant, certified public accountant, or public accounting firm, so long as the person filing is the aggrieved party. The Board must investigate not only complaints filed with the Division but any complaint made by the Board of Accountancy of any other state.
Complaints must include the licensee's name and sufficient facts to support the allegation of a violation of CPA laws and regulations. If either of these are missing, the Division may dismiss the complaint.
Once the complaint is filed, it will be sent to the Director of the Division within 15 days; the Director will draft a receipt, fill out a complaint card, assign a complaint number, and log the complaint within their system. A copy of the complaint will be sent to the licensee. It is up to the discretion of the Division whether or not to release the name of the complainant to the licensee. All complaints are kept on file for at least five years. At this time, the Director will assign an investigator to the complaint.
The licensee will have 20 days from receipt of the complaint to file a response to the Division. You should retain a professional license defense attorney with the Lento Law Firm as soon as you receive the complaint. Responding to the complaint clearly and effectively can make all the difference in your case. The Lento Law Firm Professional License Defense Team has drafted countless answers to complaints and can ensure they present you in the best possible light.
Investigation
The Division will likely assign a Board member to assist in investigating the complaint. This Board member must keep the facts and findings of the investigation confidential, even from other Board members. The investigators will collect relevant documentation and interview witnesses. When the investigation is complete, the investigators will issue a final report containing all the evidence reviewed and how it supports or does not support the specific violations of the law or regulation as alleged. The written report will recommend whether to move forward with a prosecution against the CPA or dismiss the complaint. The Director of the Division must approve the report's recommendation.
An investigation can be paused if a request for such is made to the Delaware Department of Justice or a federal law enforcement agency due to the potential effects of the Division's investigation on a pending criminal investigation. The suspension will be lifted once the Delaware Department of Justice or the federal agency confirms in writing that the Division may do so.
Formal Complaint
If the Director of the Division approves the investigator's recommendation to move forward with a prosecution, they will send the complaint and written report to the Delaware Department of Justice Office of the Attorney General. The Deputy Attorney General will then review the complaint and report and decide if a formal written complaint is warranted. If so, the Deputy Attorney General will file their own formal written complaint to the Board of Accountancy and request a formal hearing.
If the Deputy Attorney General wishes to dismiss the case, they must notify the Division; this dismissal serves as a final order to dismiss, and the licensee will be notified of the case closure.
The Board has the authority to temporarily suspend a CPA's license following an initial or formal complaint if the allegations suggest an immediate danger to the public health, safety, or welfare. Your attorney must be given written or oral notice at least 24 hours before the temporary suspension is effective. The temporary suspension cannot last longer than 60 days.
Hearing
A hearing before the Board and Division may seem like no big deal, but it is conducted similarly to a court case. Like a court case, specific procedures and timelines exist for filing motions, collecting and sharing evidence with the opposing party, and more. It is imperative to your case that your Lento Law Firm attorney represent you in the hearing process. You cannot afford to lose your case based on technicalities.
The Division and your Lento Law Firm have the authority to interview witnesses, collect relevant documents, and collect any physical evidence pertinent to the complaint; they may issue subpoenas to obtain this information. Aside from your initial answer, your hearing is the only opportunity to share your side of the story. Your Lento Law Firm attorney will relentlessly fight for your license.
Determinations
Following the hearing, the Board and Division will issue a final order with their decision. The Board has the authority to impose on or more of the following actions:
- Issue a letter of reprimand
- Censure the licensee's practice privileges
- Suspend the CPA's license
- Place the CPA on suspension or probation and require them to regularly report to the Board, limit the practice of areas related to the allegation, and continue to review the CPA's professional education until they obtain the degree of skill in the areas which are the basis of the probation
- Revoke the CPA's license
- Impose a fine of up to $10,000 for each offense committed
- Require the CPA to reimburse the Division for the cost of the investigation, including but not limited to legal assistance, public hearings, materials, human resources, contractual assistance, and appropriate salary and overtime pay for all state employees involved in the case
- Refer the CPA to the Voluntary Treatment Option for Chemically Dependent or Impaired Professionals
- Dismiss the complaint
The Board can withdraw or reduce a CPA's license conditions of probation when the deficiencies have been remedied.
Appeal
You may disagree with the determination and feel the decision was unfairly made. Fortunately, you can appeal your case to the relevant court. It is never advisable to enter a court case without an attorney. Whether an attorney has represented you through the above-detailed disciplinary process, it is not too late to retain the Lento Law Firm Professional License Defense Team. Our Team frequently works with CPAs beginning at the appeal process, and we often get our clients a better outcome on appeal.
Grounds for Disciplinary Action Against Your Delaware Certified Public Accounting License
Delaware law dictates the grounds for disciplinary action against a CPA's license. Of course, any violation of relevant laws and regulations can be grounds for discipline; the law also specifically outlines the following actions:
- The CPA has committed or knowingly cooperated in fraud or material deception to obtain their CPA license
- The CPA has engaged in an act of fraud or gross negligence in their practice of public accounting or engaged in dishonorable, unethical, or unprofessional conduct intended to or likely to deceive, defraud, or harm the public
- The CPA has been found guilty or has entered a plea of guilty or nolo contendere to a crime that is substantially related to the practice of public accountancy
- The CPA has been subject to disciplinary sanction, censured, or had their license revoked or suspended in any other state for any cause aside from the failure to pay an annual registration fee
- The CPA has violated a lawful provision of any lawful regulation or rule of professional conduct
Areas We Serve in Delaware
Our Team has successfully represented CPAs throughout Delaware. Most of our clients have been based in Wilmington, Dover, Newark, Middletown, and Bear. We are, of course, able to meet your needs wherever you are located in Delaware.
Retain the Lento Law Firm Professional License Defense Team
Whether you believe the allegations against you and your CPA license can be substantiated or if they are baseless, you should never represent yourself when your license is at stake. The Lento Law Firm will always do everything in our power to protect your Delaware CPA license; we attempt to mitigate and, if possible, eliminate all charges against you. To retain the Lento Law Firm Professional License Defense Team, call us at 888-535-3686 or contact us online.
