Massachusetts CPA License Defense

Certified public accountants (CPAs) in Massachusetts operate under a stringent set of professional standards and ethical guidelines in a highly regulated field. Among the challenges of obtaining the education, experience, and credentials needed to serve the public financial interest, each is under the watchful eye of the Massachusetts Board of Public Accountancy.

Despite the meticulous preparation and adherence to professional norms, CPAs can find themselves at the center of license investigations and facing potential sanctions. These investigations, often triggered by allegations of misconduct or breaches of the governing standards, can stem from various sources, including client complaints, employer reports, or regulatory audits. The implications of such investigations are immense, not only for the individual professional's career and reputation but also for the public's trust and reliance placed on the accounting profession.

Understanding the dynamics of how CPAs in Massachusetts can navigate through license investigations and the potential sanctions that could be levied is crucial. More important, however, is knowing where to turn for help. The nationwide Lento Law Firm understands how misconduct allegations and complaints can derail a CPA's confidence when mixed with daily workplace challenges. Our Professional License Defense Team understands that licensing boards have strict disciplinary standards and sometimes fail to recognize the nuances of a situation and may move to impose sanctions quickly, like the following:

• Public censure and mandatory remediation.
• Probationary period with restriction of practice.
• License suspension or revocation.

Severe consequences are likely if licensees fail to mount a quick and effective defense. But you have valuable resources with the Lento Law Firm's Professional License Defense Team. Our team will lead negotiations with Massachusetts licensing and regulatory authorities and work towards the most favorable resolution possible to safeguard your professional standing within the accounting field. Call us today at 888-535-3686 or submit your details online, and we will contact you.

Common Reasons for CPA License Investigations

Investigations into Massachusetts CPA licenses typically arise from allegations of misconduct or non-compliance with professional standards. Some of the most common reasons include the following:

• Ethical Breaches: Violations of ethical standards, such as confidentiality breaches or conflicts of interest, can trigger investigations.
• Professional Misconduct: This encompasses a range of actions, from negligence in financial reporting to fraudulent activities.
• Non-Compliance with Continuing Education Requirements: Massachusetts CPAs—like those in other states—are required to complete continuing education credits to maintain their license. Failure to comply can lead to potential adverse action on an individual's license.
• Complaints from Clients or Employers: Allegations of misconduct by clients or employers often initiate investigations.

Each of these issues undermines trust not only in individual CPAs but also in the accounting profession as a whole. Nevertheless, there are far more stipulations a licensed professional must follow to remain in good standing.

Massachusetts Board of Public Accountancy Code of Ethics

All Massachusetts CPAs are beholden to the Board's Code of Ethics and Rules of Professional Conduct that relay essential tenets of a CPA's practice. Moreover, it outlines various ways a licensee could violate state regulations. The Code of Ethics addresses five main areas of responsibilities and standards expected of CPAs, which include the following:

Independence, Integrity, and Objectivity

• Independence Violations: A CPA is prohibited from expressing an opinion on the financial statements of an entity if they, or their firm or employer, have a direct or indirect financial interest in the entity, have a joint closely held investment, or have certain types of loans with the entity or its principals.
• Integrity and Objectivity Breaches: A CPA must not knowingly misrepresent facts or subordinate their judgment to others. They must maintain integrity and objectivity in all professional services, including tax and advisory services.

Competence and Technical Standards

• Lack of Competence: A CPA should not accept an engagement they are not competent to perform.
• Failure to Follow Auditing and Accounting Standards: A CPA must adhere to generally accepted auditing standards and not associate their name with financial statements that imply they acted as an independent auditor unless they complied with these standards. They also must not express an opinion that financial statements conform to generally accepted accounting principles if there are material departures from these principles unless they are clearly explained and justified.

Responsibilities to Clients

• Breach of Confidentiality: A CPA must not disclose confidential client information without consent, except as required by law or regulatory bodies.
• Contingent Fees: A CPA is prohibited from charging contingent fees for certain services, such as audits, reviews, and certain compilations and examinations.
• Improper Record Handling: A CPA must provide, upon request, copies of tax returns, reports, documents, and specific working papers to clients or former clients.

Responsibilities to Colleagues

• Improper Actions in Collaborative Engagements: When working on consolidated financial statements or when referred by another CPA, there are specific protocols to follow, such as auditing components deemed necessary and informing the referring accountant before extending services beyond the initial engagement.

Other Responsibilities and Practices

• Discreditable Conduct: Any act that is discreditable to the CPA profession is prohibited.
• Misleading Advertising and Solicitation: A CPA's advertising and solicitation must not be false, misleading, or create unjustified expectations. They must not imply improper influence or fail to disclose all relevant factors for their services rendered.
• Commissions and Referral Fees: CPAs cannot accept commissions or referral fees for certain services to clients for whom they perform audits, reviews, compilations, or examinations of financial statements.
• Incompatible Occupations: A CPA should not engage in any business or occupation that impairs their independence or objectivity.
• Form of Practice and Name Restrictions: The practice must be conducted in a legally recognized form, and the firm name must not be misleading concerning the firm's structure, ownership, or capabilities.

Violating any of these rules can lead to disciplinary actions from the board, impacting a CPA's license and ability to practice. Even though rule violations are wide-ranging, misconduct allegations can come from any source through complaints. It isn't just clients, colleagues, or supervisors who can submit complaints to the board—any anonymous member of the public can.

Massachusetts CPA Complaint Procedure and Adjudication

Complaints are made through the Massachusetts Division of Occupational Licensure (DOL). Grounds for complaints may include everything from fraudulent procurement of a license, misuse of client funds, negligent recordkeeping, practicing while intoxicated, or discreditable conduct. Once the DOL determines an individual has violated a state regulation, the complaint is sent to the Board of Public Accounting, or the DOL may launch an investigation in coordination with the board.

Upon receipt of a complaint, the three-member board undertakes a preliminary review to decide whether to proceed with a formal investigation. If the complaint is outside the board's purview, lacks substance, or responsibility remains indeterminate, it may be dismissed at their discretion. If the complaint is substantiated or worthy of further investigation, board representatives will appoint an investigator to gather additional documentation, interviews with witnesses, and a response from the CPA.

Following the investigation, a detailed report is prepared recommending a course of action for the board, which may lead to the complaint or allegation being dropped. Yet, the board may choose to impose informal or formal sanctions. Informal punishments may include the following:

• Public censure
• Fines
• Additional education requirements
• Other means of redress that do not involve a change in license status

If the recommended sanctions include a change in license status—like probation, suspension, or revocation—the process will advance to the formal hearing stage. Before the board, a CPA has the opportunity to defend themselves, present evidence, and question witnesses, often with the assistance of a legal professional. Following the hearing, the board deliberates on the case and arrives at a final decision on the matter.

Massachusetts CPA Administrative Hearing Process

CPAs retain the right to appeal to the state's higher judicial authorities to challenge the board's determinations or the sanctions imposed. A CPA must file a notice of appeal within 30 days after the board's decision. Failing to file within this period can result in losing the right to appeal.

The appeal process involves preparing a detailed brief that outlines the errors in the board's decision or the procedural flaws in the adjudication process. This may include arguing that the decision was not supported by substantial evidence, that there were due process violations, or that the sanctions imposed were disproportionate to the alleged misconduct.

In most circumstances, CPAs have the opportunity to present oral arguments in front of an administrative law judge (ALJ) in support of their appeal, emphasizing key points of the submitted brief and responding to any questions. After reviewing the written briefs and hearing oral arguments, the ALJ will issue a decision. This will involve affirming, modifying, or reversing the board's original decision.

How the Lento Law Firm Professional License Defense Team Can Help Massachusetts CPAs?

While sanctions for a CPA will vary depending on the complaint or alleged misconduct, any form of adverse action must be taken with the utmost seriousness. There is no way to forecast how adverse action will affect you, even with minor violations. However, you can be assured that your license remains vulnerable if you fail to rise with a strong defense.

CPAs facing administrative sanctions from Massachusetts state authorities may believe an attorney is too aggressive an option to exercise with their professional board. However, the Lento Law Firm will be a valuable resource for the following reasons:

• Obtain all relevant evidence and testimony: The proper evidence or witness testimony can determine the outcome of your case.
• Seek pre-hearing settlements: We will explore options state regulations provide to settle before the DOL conducts proceedings.
• Accompany or represent you in all proceedings: If your case must go through the traditional channels, we'll be prepared to defend you every step of the way.
• Take further steps, if necessary: Following the ALJ's decision, the licensee or the Board of Public Accountancy may seek review by appealing to the superior court.

The Lento Law Firm Professional License Defense Team protects against the complexities and challenges of facing allegations that threaten their professional licenses. We bring a wealth of experience and a deep understanding of state laws and the specific regulatory frameworks governing the accounting profession. Our knowledge is pivotal in defending against complaints filed with the Massachusetts Board of Public Accountancy and other allegations of wrongdoing.

We provide a critical line of defense for CPAs in bustling metropolitan areas like Boston or Worcester, where the professional stakes are high. Our team is adept at crafting tailored defense strategies that consider the local business environment and the specific circumstances of each case. Attorneys with the Professional License Defense Team understand the nuances of state regulations and are skilled at arguing cases in various judicial and administrative forums, ensuring that CPAs receive a robust defense regardless of the complexity of their case.

In more rural areas of Massachusetts, from the Berkshires to Cape Cod, CPAs may face different challenges, including limited access to legal services and a close-knit professional community where reputations are paramount. The Lento Law Firm extends its services to these regions, offering remote consultations and leveraging all of our resources to ensure that every CPA can access top-notch legal defense. We work diligently to mitigate the impact of any proceedings on the CPA's professional standing and personal life, emphasizing discretion and effective resolution.

Call the Lento Law Firm at 888-535-3686 today for a consultation about how we will defend your license to practice as a CPA in Massachusetts. You can also contact us online with your case details, and a member of our Professional License Defense Team will reach out as soon as possible.