No one wants to have their professional judgment or credentials called into question, but sometimes it happens. In spite of your best efforts as a certified public accountant in Maine, someone may accuse you of wrongdoing. It could be a client, a business associate, or a member of the public. An accusation can derail years of study and hard work by placing your CPA license in jeopardy. No matter how insignificant you think an allegation is, you must take it seriously. Your license and ability to work as a CPA may be at risk. The state of Maine may investigate and start disciplinary action, which can lead to a loss of licensure. When it comes to your CPA license, it's an important asset and the key to your livelihood, so you need to defend yourself. The best way to do that is to have an experienced law firm go to bat for you.
The Lento Law Firm and its Professional License Defense Team are ready to help you navigate Maine's disciplinary process for CPAs. The process can be difficult and stressful, so it's always a good idea to have competent legal representation. The team has a wide range of experience helping CPAs and other service professionals who face accusations of misconduct. An attorney from the Professional License Defense Team is ready to meet with you and hear your side of the story. The team can answer your questions, explain how the disciplinary process works, discuss your options, and work to achieve the most advantageous outcome. Knowledge and skills are crucial, and the Lento Law Firm has the tools you need to fight for your license. The Lento Law Firm and its Professional License Defense Team can help if you are in Augusta, Bangor, Brewer, Ellsworth, anywhere else in the state, or anywhere else in the country. Contact us by calling 888-535-3686 or get in touch by using this online form.
CPA Licensing in Maine
Anyone who wishes to obtain a CPA license must go through the Maine Board of Accountancy. Candidates for licensure must first pass the Uniform CPA Exam, which tests an applicant's knowledge of accounting and auditing. The exam has four parts, which must be completed within an 18-month period. To take the exam, an individual has to apply and meet certain eligibility requirements since Maine regulates the practice of accounting in order to protect the public. A candidate must meet certain educational requirements and be of good character and reputation. Exam applicants must submit three letters of reference from individuals to whom they are not related, and only one reference can be from an employer or school instructor.
Once an individual has passed the exam, they can apply to the board for a CPA license. An applicant must meet Maine's education and experience requirements and have good character. In Maine, an applicant has good character if they do not have a history of dishonest or felonious acts. If an applicant does not meet this requirement, the board may refuse to issue a license. The board can only refuse when clear and convincing evidence points to a lack of good character, and there is a substantial connection between the lack of good character and a licensee's professional responsibilities. If the board determines that an applicant does not have good character, it will provide the individual with a statement of its findings. The board will also give the applicant the complete evidentiary record that was used to make the decision. An applicant who disagrees with the board's decision can appeal.
The applicant must also undergo a criminal background check. The board may take an applicant's criminal history concerning a conviction into consideration when deciding whether to issue a CPA license since the history is not an automatic bar to licensure. The board can consider criminal history information regarding:
- Convictions for an offense involving dishonesty or a false statement for which a term of incarceration for less than one year may be imposed;
- Convictions that directly relate to the profession of accountancy and for which a term of incarceration for less than one year may be imposed;
- Convictions that directly relate to the profession of accountancy and for which a term of incarceration cannot be imposed; or
- Convictions for which a term of incarceration for one year or more may be imposed.
The board can refuse to issue a CPA license on the basis of an applicant's criminal history relating to the conviction varieties listed above. This is the case only when the board determines that the applicant has not been sufficiently rehabilitated in matters of public trust. The applicant has the burden to show that they are sufficiently rehabilitated with regard to matters of public trust.
The board's ability to consider an applicant's prior criminal conviction as an element of fitness for licensure exists for three years from the individual's final discharge, if any, from the correctional system. After the three-year period, the board must view an ex-offender applicant in the same manner as a license applicant who has no prior criminal record. However, the board does not have a time limit when it comes to considering the conduct that gave rise to the applicant's criminal conviction if that conduct is grounds for disciplinary action against a licensee.
The board can deny a license to an applicant, or refuse to renew a license, for these reasons:
- Loss of the authority to engage in the practice of accountancy in another state for any reason;
- Failure to maintain compliance with the requirements for license issuance or renewal;
- Revocation or suspension of the right to practice before any state or federal agency;
- Dishonesty, fraud, or gross negligence in the practice of public accountancy, or in the filing of, or failure to file, one's own income tax returns;
- Performance of any fraudulent act while licensed; or
- Engaging in any conduct reflecting negatively on the licensee's fitness to practice accountancy.
Once licensed, a CPA must renew their license every year. A CPA must also take continuing professional education classes each year. As part of this requirement, all licensees must take at least four hours of professional ethics classes every three years.
Standards of Practice for CPAs in Maine
Licensed CPAs in Maine must follow state and federal laws, of course. They also have to follow the board's Code of Professional Conduct since licensees have a duty to conduct themselves in a way that creates trust and confidence for the public. The code has seven fundamental principles which provide that a licensee:
- Must perform services in a manner that protects the public interest and should avoid conduct that might conflict with the public interest or diminish public confidence in the profession;
- Should act with integrity when performing professional activities. Integrity is shown by acting honestly, candidly, and by not knowingly misrepresenting facts, allowing deceit, or diminishing ethical principles;
- Should stay objective when performing professional activities. Objectivity refers to the obligation to be impartial and free of the bias that might arise from conflicts of interest or an inappropriate lapse of judgment;
- Should act with due care when performing professional activities. Due care places an obligation on a licensee to act in the best interests of those for whom professional activities are performed, and in a manner that is consistent with the profession's responsibility to the public;
- Should exercise competency in professional activities and comply with applicable professional standards;
- Must maintain the confidentiality of information obtained in the performance of professional activities; and
- Should be independent and maintain objectivity when hired to provide services where independence is required by professional standards.
In addition to the code, Maine statutory law states that a CPA cannot voluntarily disclose information communicated to them by a client concerning services rendered. Maine statutory law also says the board can deny or refuse to renew a license, suspend or revoke a license, and impose other disciplinary action if a CPA engages in certain activities. These activities include:
- Participating in fraud, deceit, or misrepresentation when obtaining a license, or in connection with services rendered in the accounting profession;
- Any gross negligence, incompetence, misconduct, or violation of an applicable code of ethics or standard of practice while working in the accounting profession;
- Being convicted of certain crimes;
- Violating any of the board's laws or rules;
- Participating in any activity that is beyond the scope of acts authorized under license;
- Continuing to act in a capacity requiring a license after expiration, suspension, or revocation of that license;
- Aiding or abetting unlicensed practice by another person;
- Failing to comply with a board order or consent agreement;
- Failing to produce any requested documents in the licensee's possession regarding a complaint, proceeding, or matter under investigation;
- Failing to notify the board of a change of name or address, a conviction, or revocation, suspension, or other disciplinary action taken by any jurisdiction against any professional license; and
- Failing to notify the board of any material change in the conditions or qualifications set forth in the original application for licensure.
Complaints Against CPAs in Maine
Anyone who wants to file a complaint about a CPA can do so. Complaining parties cannot remain anonymous and must give their names and contact information to Maine's Office of Professional and Occupational Regulation (OPOR). The complaining party must also explain the incident giving rise to the allegations. If you are the subject of a complaint or think you will be, now is the time to act. Do not wait to see what happens. You should obtain legal advice immediately, and the Lento Law Firm and its Professional License Defense Team are all set to advise you. There are strict time limits for the board's disciplinary process, so you do not want to miss your chance to defend against accusations that can harm your career. Be proactive, and do not hesitate to fight for your license.
When the OPOR receives a complaint, it sends a copy to the CPA, who should respond to the allegations. The complaining party then has a chance to respond to the CPA, but they do not have to make a response. The OPOR will give the CPA any response that is received and then send the complaint to the board. The board may decide to investigate the allegations and may contact the complaining party, the CPA, and anyone else who may have relevant information. Complaints and investigative records are generally kept confidential while an investigation is ongoing. The complaint and the records usually become public when the investigation is finished.
After the investigation, the board can take several courses of action. It may dismiss the complaint on the grounds that there was not enough evidence to show a violation of the board's laws or rules. The board may also dismiss the complaint if it finds that a violation did not occur. If the board dismisses a complaint, the person who filed it cannot appeal. If the board does not dismiss a complaint, it may decide to issue a consent agreement, which is a voluntary resolution of the matter that is negotiated with the CPA. In a consent agreement, the CPA admits that a violation took place and agrees to a penalty.
The board also has the option of sending the matter to a hearing. If a hearing is going to be held, the board is going to have its own lawyer and the CPA is entitled to have a lawyer as well. At the hearing, the board presents its case against the CPA. This involves presenting documentary evidence and having witnesses testify. The CPA can testify, call witnesses, and present documentary evidence, too. The board and the CPA can also cross-examine each other's witnesses. At the end of the hearing, the board will decide whether a violation of its laws or rules occurred. If the board determines that a violation occurred, it will decide on the type of disciplinary action it will take.
The board can choose between the following types of discipline:
- Deny or refuse to renew a license along with imposing another form of discipline;
- Issue a warning, censure, or reprimand;
- Suspend a license for up to 90 days for each violation or instance of actionable conduct;
- Revoke a license;
- Impose civil monetary penalties for each violation or each instance of actionable conduct; or
- Impose a term of probation.
A CPA who disagrees with the board's decision after the hearing can appeal to the civil court system. There are timelines that have to be followed, so if you need to appeal, you must do so immediately and with the help of legal counsel such as the Lento Law Firm. Note that the OPOR posts all disciplinary action involving consent agreements or hearing decisions on its website, so the matter will become public knowledge.
Retain The Lento Law Firm for Professional License Defense in Maine
If you, or a family member, are a CPA in Maine and are facing accusations of wrongdoing, the state's disciplinary process can seem like a maze that's impossible to get through. It's always prudent to ask for help from a wise and resourceful attorney, and the Lento Law Firm has that attorney. The Lento Law Firm and its Professional License Defense Team know what to do in these situations. From Bar Harbor to Farmington to Lewiston, or anywhere else in Maine, the Lento Law Firm is ready to help. Tell us about your case by calling 888-535-3686 or reach out to us by completing this online form.
