If you hold a North Carolina certified public accountant's license you know this credential, which is also called a certificate, is the result of talent, intelligence, rigorous study, and hard work. Not everyone can earn a CPA license. So, if you hold this prestigious license and are facing an allegation of misconduct, you need to take it seriously. Your license and your ability to work as a CPA may be at risk. A complaint from a client, coworker, or member of the public has the potential to destroy your career. That may sound unbelievable, but it's true. The state of North Carolina may start an investigation when it receives a complaint about a licensee, and it may end up instituting disciplinary action. This action can lead to a loss of licensure, so you should not ignore an accusation of wrongdoing, no matter how trivial it seems. When it comes to your CPA license, you need to be proactive. You need to defend yourself, and the best way to fight for your license and your career is by having an experienced law firm at your side.
The Lento Law Firm and its Professional License Defense Team are ready to help you through North Carolina's disciplinary process, which can be confusing and stressful. The team has a wide range of experience helping CPAs and other service professionals who face claims of wrongdoing. When you sit down with an attorney from the Professional License Defense Team, you can explain your side of the story and have your questions answered. The attorney will discuss how the case will proceed, go over your options, and strive to achieve the best possible outcome. Skill and knowledge matter and the Lento Law Firm is ready to help, no matter where you are in North Carolina. The Lento Law Firm and its Professional License Defense Team can help if you are in Charlotte, Fayetteville, Winston-Salem, anywhere else in the state, or anywhere else in the country. Reach out to us at 888-535-3686 or contact us online to tell us about your case.
CPA Licensing in North Carolina
The North Carolina Board of Certified Public Accountant Examiners handles the licensing process for CPAs in the state. Anyone who wishes to obtain a license must first pass the Uniform CPA Exam. Since North Carolina aims to protect the public, anyone who wants to take the exam has to apply and meet certain eligibility requirements, including being of good moral character. This means the applicant must have a personal history of fairness, honesty, respect for the rights of others, and respect for both U.S. and North Carolina laws. Three people who are not related to the applicant must sign the application and attest to the individual's good character.
The board will also conduct a background check on each exam applicant. To assist with the check, an applicant must provide information on any current or prior criminal charges, including traffic infractions. The applicant has to explain what happened and attach relevant documents if they were arrested, charged, convicted, or pled guilty or no contest to any criminal offense.
An applicant must also indicate on the application whether any state or federal agency has denied them any type of license, and whether they have ever been disciplined by a licensing agency.
The board will not consider an application from someone who is currently serving a criminal sentence. In addition, an individual will be ineligible for the exam if the board determines that they have engaged in any conduct that would be a violation of North Carolina's statutory law governing CPAs or the state's Rules of Professional Ethics and Conduct for CPAs.
Applying for a CPA License in North Carolina
After an individual passes the exam, they can apply to the board for a license as long as they meet the eligibility requirements. These requirements concern education and work experience, as well as good moral character. A license applicant must complete an application that includes questions concerning moral character. An applicant must reveal whether they have been charged, arrested, convicted, found guilty of, or pleaded no contest to, any criminal offense, including traffic infractions, and must attach relevant court documents. Applicants must also disclose whether they have ever had an application for a certificate or license denied or been subject to a license suspension, revocation, or cancellation by any licensing board or state or federal agency. The board also wants to know if an applicant is being, or has been, investigated, charged, or disciplined by any licensing board or state or federal agency. In addition, an applicant must state whether they have been a party to a civil lawsuit, bankruptcy action, or administrative proceeding based on an allegation of dishonesty, fraud, incompetence, negligence, or misrepresentation. Anyone who answers one of these questions in the affirmative must add an explanation and submit relevant documents.
Further, a license applicant must supply the board with a reference concerning their good moral character. A CPA who is not related to the applicant must attest to the applicant's character. North Carolina requires this reference because clients place a great deal of trust and confidence in a CPA, who, in turn, is expected to act with a sense of duty. Lastly, after receiving the application, the board will perform a background check on the license applicant and review criminal records.
Renewal of CPA License in North Carolina
Once licensed, a CPA must renew their license every year. To make a renewal, an individual has to indicate whether they have taken the appropriate number of continuing education classes, which must include professional ethics sessions. If a CPA does not comply with the education requirements, the board may pursue disciplinary action. This action can consist of a one-year license forfeiture and a $1,000 civil penalty.
If a CPA fails to renew their license and does not seek inactive or retired status, the board will notify the individual by mail. The individual has 30 days from the notice's mailing date to complete the renewal process. A failure to renew within that time frame results in an automatic forfeiture of the license and the inability to practice as a CPA. The board will then send another notice demanding the return of the individual's physical license document within 15 days.
Standards of Practice for CPAs in North Carolina
Since North Carolina wants to protect consumers, the state requires CPAs to meet certain standards. A CPA must follow state and federal laws, of course, and must also abide by the board's Rules of Professional Ethics and Conduct. A CPA who violates the rules risks disciplinary action. When the board undertakes disciplinary action, it only acts against a CPA's license. The board does not award money or bring criminal charges. The board's interest is administrative, meaning it does not act within the civil or criminal court system.
The rules do not list every action that the board may find to be improper. The rules do, however, provide that a CPA must maintain high standards of technical competence, morality, and integrity, keep client affairs confidential, follow generally accepted accounting principles, and promote sound financial reporting. The rules also prohibit a CPA from participating in deceptive conduct, regardless of whether anyone was deceived. Deceptive conduct means any fraud, misrepresentation, or omission that the CPA knew or should have known had the capacity to be misleading. For example, deception in the following conduct is prohibited:
- gaining or maintaining employment;
- gaining or keeping clients;
- obtaining or maintaining licensure;
- reporting continuing education credits;
- implying abilities not supported by education, professional skills, or licensure;
- claiming that services sold in connection with the CPA title are of a particular quality when they are not; and
- creating false or unjustified expectations of favorable outcomes.
The rules also prohibit a CPA from participating in conduct that discredits the accounting profession. This conduct includes, for example:
- Actions that reflect poorly on the CPA's honesty, integrity, trustworthiness, good moral character, or fitness to practice;
- Making it appear as though one has the ability to improperly influence a governmental official or agency;
- failing to comply with any board order; and
- Making a settlement or other dispute resolution that is, or will be, kept confidential from the board.
Further, the rules mandate that a CPA:
- Shall not knowingly violate any state or federal tax laws;
- Must notify the board of any conviction, finding of guilt, or plea of no contest to any criminal offense;
- Must notify the board of any judgment or settlement in a civil suit, bankruptcy case, or administrative proceeding involving professional negligence, gross negligence, dishonesty, fraud, misrepresentation, incompetence, or a violation of any federal or state tax law;
- Must notify the board of any settlement where a client releases the CPA from liability based on professional negligence, gross negligence, dishonesty, fraud, misrepresentation, incompetence, or a violation of any federal, state, or local law.
- Must perform professional services competently and only take on projects that can be completed with professional competence; and
- Must exercise care in the performance of a project.
Complaints Against CPAs in North Carolina
North Carolina allows anyone to file a complaint against a CPA. A client, a business associate, and a member of the public can file. The complaining party must identify themselves and explain why they believe the CPA has committed wrongdoing. The complaining party must attach documents that support their case, such as contracts, correspondence, financial statements, invoices, and tax returns. The complaint must also list the names and contact information of any witnesses who may be able to support the allegations. In addition, the complaining party must state whether they are represented by an attorney and whether a lawsuit has been filed over the matter that is the subject of the complaint.
If you are the subject of a complaint or believe you will be, do not attempt to handle the matter on your own. There is far too much at stake. The complaining party might have a lawyer, and you should, too. You should be represented by a competent attorney who knows what to do every step of the way. The Lento Law Firm and its Professional License Defense Team have the experience you need to raise a defense and work to save your career and reputation.
Once the board receives a complaint, it will notify the individual accused of misconduct. The board will investigate the allegations if they assert there has been a violation of a state law governing CPAs or the Rules of Professional Ethics and Conduct. During the investigation, the board obtains as much information as it can regarding the matter. If the allegations do not concern a violation that is within the board's jurisdiction, the complaint may be closed. If there is a civil suit or a criminal case concerning the same accusations, the board may decide to hold off on the complaint until the other case is resolved. If the board decides the complaint raises a valid claim, the matter will proceed.
When the board believes a complaint is valid, it may seek to issue a consent order, which is a negotiated settlement with the CPA. In other situations, the board may ask the courts for an injunction, which is an order directing someone to stop participating in a certain activity. The board may also decide that the case needs to go to a hearing where both sides can present their positions. After the hearing, the board may issue a disciplinary order against the CPA.
The board can permanently revoke a CPA's license or order a revocation of the license for a specified time period. The board can also censure the licensee and may choose to assess a monetary penalty of up to $1,000 in some situations. The board publishes all disciplinary action in its monthly newsletters, monthly minutes, and CPA database, all of which are available to the public. A CPA can, however, appeal the board's disciplinary action decision to the North Carolina court system.
Retain The Lento Law Firm for Professional License Defense in North Carolina
Obviously, no CPA wants to be the subject of a complaint filed with the board, but sometimes it happens. And when it does, you should not take any chances. You need to immediately defend yourself to the best of your ability because your career, reputation, and livelihood are at stake. The Lento Law Firm and its Professional License Defense Team are your best choice for legal assistance, no matter where you are in North Carolina or in any other state. We can help if you are in Asheville, Benson, Four Oaks, Raleigh, or any other municipality. Call us today at 888-535-3686 or use this online form to contact us.
