As a Certified Public Accountant practicing in Nebraska, you know better than anyone how important your license is to your practice, your career, and your reputation. Without a license from the Nebraska Board of Public Accountancy (BPA), you're not permitted to hold yourself out as a CPA to clients in the state, and your ability to provide certain key services to clients may be much more limited. That's why if you learn that you're being investigated by the BPA because of a complaint that has been filed against you, you should immediately seek professional help. The Lento Law Firm Professional License Defense Team includes attorneys with years of experience helping CPAs and other professional license holders defend themselves in disciplinary matters, in Nebraska and across the country. Call us at 888.535.3686 or use our contact form to set up a confidential consultation to learn more about how the Lento Law Firm Professional License Defense Team can help you.
What Standards Does Nebraska Expect CPAs to Uphold?
The Nebraska BPA's rules and regulations include a chapter devoted to the Rules of Professional Conduct that apply to CPAs who are licensed by the BPA in the state. Among other things, these rules require CPAs to follow certain standards in the course of providing services to clients or others. These include:
- Independence. The CPA should be “independent with respect to the client in fact and appearance.” This means that the CPA should not have an existing or potential financial interest in the client or have other close connections with the client that could potentially benefit the CPA.
- Integrity and Objectivity. The CPA should not “knowingly misrepresent facts” or allow others to improperly influence the CPA's judgment.
- Competence. The CPA should only work on matters that are within the CPA's field of expertise and should follow the generally accepted accounting standards and principles that apply to the work the CPA has been asked to provide.
- Confidentiality. The CPA is expected to keep client information confidential, only disclosing it under certain specific circumstances.
- Record-keeping. The CPA should keep accurate records of the work performed for the client, and should provide the client with certain types of records upon request – even if there are fees outstanding.
- Avoidance of contingent fees. CPAs are prohibited from charging contingent fees for certain types of work, such as audits, tax returns, and certain types of financial statements.
- Honest advertising. CPAs shouldn't make “false, fraudulent, misleading, deceptive, or unfair” statements when advertising their services.
If a CPA fails to meet any of these standards, they may be subject to discipline by the BPA. Complaints can be filed by anybody, including clients, the BPA itself, and governmental organizations that the CPA may appear before such as the IRS, SEC, PCAOB, and others.
Grounds for CPA Discipline in Nebraska
A CPA can be disciplined for failing to meet any of the standards that are set forth in the BPA's Rules of Professional Conduct for CPAs. In addition, a CPA can be disciplined for any of the following:
- “Fraud or deceit” in obtaining their CPA certificate
- “Dishonesty, fraud, or gross negligence” in their work as a CPA
- Calling themselves a CPA when they are not certified as one, or misrepresenting that they are certified in Nebraska when they are not
- Being convicted of a felony in any state
- Being convicted of any crime involving “dishonesty or fraud” in any state
- Having their CPA certificate canceled, revoked, suspended, or having their certificate renewal refused in any other state
- Having their right to practice before any state or federal agency suspended or revoked
CPAs in Nebraska can also be disciplined by the Nebraska BPA for misconduct that occurs in another state where the accountant also holds a CPA certificate. If that out-of-state conduct is the type for which Nebraska would discipline the CPA,
The Lento Law Firm Professional License Defense Team regularly represents CPAs and other professional license holders in disciplinary matters in Nebraska and across the US. Our experienced attorneys understand the standards that apply to CPAs, the disciplinary policies and procedures followed by the Nebraska BPA, and, most importantly, how to protect our CPA clients' rights throughout the misconduct investigation and disciplinary process.
Don't Assume the Truth Will Protect You from CPA License Sanctions in Nebraska
It's very common for anyone accused of wrongdoing to try to resolve things as quickly as possible, especially when we believe that the accusation is mistaken. In the context of a CPA misconduct complaint that's based on a mistaken understanding of the facts of a situation, your immediate impulse might be to reach out to the BPA to “set the record straight” or to tell them “the rest of the story.”
This can be a mistake for several reasons. First, even if you do reach out, once the BPA begins to investigate a complaint, it will very likely see that investigation through, even if you contact the investigator and offer an explanation that you think will put the matter to rest. Second, your explanation may be misunderstood and could even result in a more intensive investigation than what the BPA had planned.
There is a time when you will be able to provide information to the investigator in your own defense. When you work with an experienced professional license defense attorney from the Lento Law Firm Professional License Defense Team, we will help you pick the proper time and manner to deliver that information to the BPA in a way that is clear, that reduces the possibility that your information will be misunderstood by the investigator, and that ultimately benefits you.
The Disciplinary Process After a Complaint is Filed
Once a complaint is filed with the BPA, the BPA will review it to make sure that it covers one of the disciplinary areas where the BPA has authority to regulate and discipline. The BPA specifically notes on its website that it “does not involve itself in fee disputes,” and that its authority is limited to “disciplining or recommending discipline.”
While it's possible to file an anonymous complaint against a CPA, the BPA notes that “in most cases,” it “cannot effectively investigate cases” where the person complaining asks that their name be kept confidential.
Once a complaint is received, and assuming it relates to conduct that the BPA has the power to discipline CPAs for, the BPA will start an investigation. The CPA will receive a copy of the complaint and will assign someone to investigate. This may include follow-up contacts with the person who filed the complaint and, of course, interviews and information requests directed to the CPA named in the complaint.
If the investigation results in a determination by the BPA that the CPA named in the complaint has violated Nebraska's Accountancy Act or regulations, the BPA may then begin disciplinary proceedings against the CPA. If this happens to you, the BPA will notify you in writing about the proceedings. The notice will include a statement of the charge or charges against you and the time and place of a hearing on those charges, which will be at least 30 days from the date the notice is sent.
At the hearing, you have the right to be represented by an attorney. You (or your attorney) will be able to present evidence on your own behalf and can call witnesses to testify in your defense. You also have the right to cross-examine the BPA's witnesses and argue against the introduction of evidence that the BPA proposes to use against you. If you are uncertain about whether a witness you think can help your case will appear at the hearing, you can ask the BPA to issue a subpoena commanding the person to appear and provide testimony at the hearing.
At the close of the hearing – or typically some time afterwards – the BPA will issue a written order either dismissing the misconduct proceeding (ruling in your favor) or imposing some kind of sanction against you.
If the BPA sanctions you, you have the right to appeal. Appeals from disciplinary orders of the BPA are made by filing a petition with the district court in the county where the hearing took place, which will typically be the district court for Lancaster County. The appeal process is described in Nebraska's Administrative Procedures Act. If your appeal to the district court is unsuccessful, you can appeal further to the Nebraska Court of Appeals, which is also in Lincoln.
As a practical matter, however, most disciplinary matters are resolved without a hearing through negotiation with the BPA. This is where the Lento Law Firm Professional License Defense Team can be particularly helpful. Our experienced professional license defense attorneys can present your side of the case to BPA investigators and staff, and can propose outcomes, including dismissal, that are more favorable than those you would be likely to get after a hearing. Having an experienced attorney on your side can make all the difference in these kinds of situations; this is not the kind of situation you should try to resolve on your own.
What Happens if You're Disciplined by the Nebraska Board of Public Accountancy?
Discipline from the BPA can take a variety of forms.
- The BPA may issue a censure or a reprimand against you. Neither of these will affect the status of your CPA certificate but may appear in a press release or other public record issued by the BPA.
- The BPA can issue a judgment against you but suspend it; typically, this is done until you complete one or more required courses, such as an ethics or a practice skills course.
- The BPA can place you on probation for a specific period of time and can condition release of probation on your completion of one or more required courses.
- The work you are allowed to do for clients may be limited; for example, you may not be allowed to issue audit reports without having your work being checked by a qualified CPA.
- Your CPA certificate may be suspended for a defined period of time.
- Your CPA certificate may be revoked.
- You may be fined up to $10,000
- You may be liable for the BPA's court costs and attorneys' fees
These are typically the types of sanctions that can be negotiated in addition to being imposed after a hearing. While in most cases, the Lento Law Firm Professional License Defense Team is able to negotiate an acceptable resolution to CPA disciplinary proceedings, our experienced attorneys are no strangers to disciplinary hearing practice and are just as ready to fight for your rights and defend your CPA license in a hearing as they are in a negotiation.
How the Lento Law Firm Professional License Defense Team Can Help
Our experienced professional license defense attorneys are ready to help you protect your license, your livelihood, and your reputation when a misconduct complaint has been filed against you with the BPA. We understand the laws, regulations, and rules that apply to CPAs in Nebraska, and we are ready to help you resolve your case in as favorable a way as possible. We can help you at any stage of your case, including:
- Meeting with BPA investigators looking into a complaint filed against you
- Responding in an effective and timely way to information requests from the BPA
- Negotiating with the BPA to effectively and quickly resolve the disciplinary proceeding against you
- Representing you at the BPA hearing, and protecting your rights throughout the process
- Crafting and arguing any appeal that follows an adverse hearing order
Wherever you find yourself in the BPA disciplinary process, the Lento Law Firm Professional License Defense Team is ready to help. We understand how important your CPA certification is to your reputation and your livelihood. Let us help you protect your rights and your license.
Call the Lento Law Firm Professional License Defense Team today to learn more about how we can help. Our number is 888.535.3686, or you can use our online contact form to schedule a confidential consultation with one of our experienced professionals. We are here to help you protect your certification, your future, and your reputation.
