If the Nevada State Board of Accountancy (“NSBA”) has informed you that your CPA license is on the line due to negligence, misconduct, or criminal activity – you must take this warning very seriously. The NSBA wields the authority to suspend or revoke your CPA license, effectively putting your career and livelihood on the line. Instead of dismissing or downplaying the investigation, you must take proactive steps to protect your reputation and license.
The Lento Law Firm's Professional License Defense Team has unparalleled experience defending accounting professionals across the country, especially in Nevada. Make the strategic choice to safeguard your Nevada CPA license today by calling 888-535-3686 or utilizing our online contact form.
Obtaining a Nevada CPA License
Becoming a CPA in Nevada is no small task, and candidates must adhere to the state's very thorough application requirements. Nevada CPA candidates must have completed a bachelor's degree with specific coursework in accounting and business as well as semester hours in Financial Accounting, Auditing, Cost Accounting, Federal Income Tax, Accounting Electives, Business Law, and additional Business courses such as Economics, Marketing, and Management.
After completing an education, candidates must ensure that they gain relevant experience by working in an appropriate public accounting role that can be certified by a licensed CPA or at least four years of experience in industrial or government accounting. Before passing all four sections of the Uniform CPA Examination within a following period of 18 months, Nevada also requires Nevada CPA applicants to complete an ethics course offered by the American Institute of Certified Public Accountants with passing scores.
Finally, Nevada applicants must formally apply to the Nevada State Board of Accountancy, which will conduct a thorough background check. After earning their license, Nevada CPAs must continue to meet continuing professional education requirements over a rolling two-year period of 80 CPU hours.
The Nevada State Board of Accountancy
The Nevada State Board of Accountancy is the regulatory body trusted to oversee the state's accounting profession. The Board is granted authority within Nevada Revised Statutes § 628.035, which addresses the creation of the Board and the number and appointment of members. The Board plays a crucial role in protecting the public by ensuring that public accountants practice the necessary standards of competence, ethics, and professionalism. In addition to issuing licenses, the Board also sets standards for academic coursework, practical experience, and professional ethics.
Nevada Revised Statutes, Chapter 62A, § 628A.070, further grants the Board the misconduct allegations against any person holding a certificate or permit. With this power, the Board can initiate misconduct investigations and act upon its discretion to impose disciplinary actions.
The Disciplinary Process
After receiving a complaint or allegations of misconduct from a member of the public, colleague, or supervisor, the Board initiates an investigation to determine the validity of the misconduct allegations. Throughout this process, the Board can use a variety of investigative methods that can feel very intrusive. Some of these methods include gathering evidence, conducting interviews with colleagues or supervisors, speaking to clients, and reviewing relevant documentation.
If the investigation reveals evidence of misconduct, the Board can impose disciplinary actions. However, before making this decision, an administrative hearing must be held before a neutral third party that affords the accused professional “due process,” or the right to be notified about the allegations one is facing and present their side of the story before a neutral third party. Alternatively, the Board may reach a settlement (sometimes called a consent agreement) with the professional instead of a formal hearing.
Possible Disciplinary Actions
The various types of disciplinary actions that the Board can order include the following.
Revocation of License
If the Board determines that the accused professional has engaged in severe conduct that warrants revocation, it has the authority to revoke a Nevada CPA license. Revocation orders are typically reserved for egregious violations such as fraud, embezzlement, or serious breaches of ethical conduct. It's important to note that the Board may not revoke a license without ensuring that you have received Due Process.
Suspension of License
In less severe instances of misconduct, the Board can choose to suspend a CPA license for a specified period of time. During suspension, the accused professional may not practice any form of public accountancy in Nevada. Suspensions are often limited to specified timeframes that allow a licensee to rectify the issues that led to the investigation.
Fines/Penalties
Instead of or in addition to license suspension or revocation, the Board may impose monetary fines or penalties. Fines may be ordered as a deterrent or as a means for any harm caused by the licensee's actions.
Probationary Measures
In some instances, the Board may also impose probationary conditions for a designated period. Probationary measures may be reserved where the accused professional could benefit from programs like anger management or substance abuse, and they may include additional training or supervision requirements depending on the severity of the allegations involved.
Conduct That Can Place Your Nevada CPA License at Risk
CPAs in Nevada are entrusted with safeguarding the accuracy and reliability of financial information. Any errors, whether intentional or not, can lead to detrimental consequences for clients that derail their entire future. Any deviation from Nevada's stringent ethical and professional standards can lead to misconduct allegations that place your Nevada CPA license at risk. The various grounds for disciplinary action in Nevada Revised Statutes § 628.390 are discussed below.
Fraudulent Activities
Fraudulent activities undermine the integrity of the accounting profession and are taken very, very seriously by the Board. Fraudulent activities can include things like misrepresenting financial information, forging documents, or falsifying records—all of which constitute a severe breach of ethical conduct.
Unlawful Use of Designation, “Certified Public Accountant”
Unlawful use of the “CPA” designation typically refers to individuals who falsely hold themselves out as having a valid license issued by the Board. Unlawful designation can be used in various contexts, including advertising, marketing materials, networking, business cards, or other professional communications. Although licenses may not be revoked or suspended in these instances because the accused professional does not hold a valid Nevada CPA license, this can significantly impact an applicant's future ability to be approved for a Nevada CPA license.
Professional Negligence
While negligence may seem less nefarious than fraud, Nevada CPAs must ensure that they safeguard the accuracy and reliability of financial information. Whether through errors in auditing or tax preparation, negligent actions can have detrimental consequences.
Conflict of Interest
Nevada CPAs must maintain independence and objectivity. Engaging in activities that create conflicts of interest, such as providing services to clients where personal or financial relationships are compromised, can erode trust and trigger disciplinary action by the Board.
Breach of Confidentiality
Similar to conflict of interest, CPAS must ensure they can be trusted with their client's confidential information. Breach of confidentiality violations can include disclosing sensitive data without proper authorization.
Failure to Comply with Professional Standards
Nevada CPAs are bound to the state's professional code of conduct and must adhere to established standards and regulations governing their practice. Failure to comply with these standards, whether set by the Nevada State Board of Accountancy or the American Institute of Certified Public Accountants, can lead to disciplinary sanctions.
Criminal Conduct/Convictions
Criminal convictions, particularly those related to financial crimes, fraud, or crimes involving moral turpitude, can significantly impact your Nevada CPA License. In addition to being convicted of any crime involving dishonesty, fraud, or moral turpitude, professionals placed on probation or failing to adhere to probation requirements can also be investigated for possible misconduct allegations.
Ethical Misconduct
Ethical violations encompass other severe instances of misconduct, such as fraud. Ethical misconduct can be thought of as any form of dishonest or deceptive practice. Some examples of ethical misconduct include accepting improper inducements or engaging in conduct contrary to professional integrity, such as sexual immorality, discrimination, or bribery.
Can I Appeal a Disciplinary Decision?
Under Nevada Revised Statutes § 628.415, aggrieved parties may appeal disciplinary decisions issued by the Board, such as license suspension, revocation, or other fines/and penalties. Appeals must meet particular timelines and procedural requirements. If your Nevada CPA License has already been suspended or revoked by the Nevada State Board of Accountancy, contact our Professional License Defense Team today to discuss possible appeal options and outcomes.
Consequences of Losing Your Nevada CPA License
Losing your Nevada CPA license can have significant consequences that tarnish your reputation, credibility, and ability to regain future trust from employers and peers. In fact, Nevada Revised Statutes § 628.450 requires the publication of the names of professionals who have been disciplined by the Board—meaning a simple Google search could stand between you and future employment, even if outside the financial sector.
In addition to losing your professional standing, losing your CPA license can have severe financial consequences. In addition to the loss of income, which can further affect things like your retirement or other benefits, you may be required to pay fines or other restitution payments that cut into your checkbook.
Even if you can obtain a position as a non-certified public accountant, your earning potential will likely decrease dramatically. As noted by the Nevada Society of CPAs, CPAs earn an average of 10-15% more when compared to non-certified accountants in the same position. Job availability will also become a problem as professional licensure is a condition for many positions in Nevada.
From a personal perspective, license revocation can have profound personal and emotional consequences, leading to shame, guilt, remorse, and stress. This can strain personal relationships with your spouse, significant other, children, and friends.
Overall, losing your Nevada CPA license carries serious and multifaceted consequences that can alter the course of your life, derail your dreams, and disrupt your well-being. While it may feel like you are David facing Goliath, our Professional License Defense Team has helped multiple professionals stand up to state agency boards and mitigate the effect of damages they face in disciplinary investigations. Don't wait. Contact our Team today by calling us at 888-535-3686 or by using our online contact form.
Areas Our Professional License Defense Team Serves in Nevada
Our Professional License Defense Team is well-known for our credible representation across the nation and, specifically, all across Nevada. Some of the large and small metropolitan areas we serve in the state include:
Las Vegas
As the most well-known city in the state, Las Vegas is not only famous for its casinos, shows, and glamour, but it is also a financial hub for thriving entertainment and hospitality industries that rely on the work of CPAs to keep their companies afloat.
Henderson
In the southern part of the state, Henderson is the second-largest city in Nevada and is known for its outdoor activities and thriving economy. The city is also home to several major employers that require the expertise of CPAs, such as Credit One Bank, Charles Schwab, and Barclays, to name a few.
Reno
Known as the “Biggest Little City in the World,” Reno's diverse economy emphasizes tourism, technology, manufacturing, and finance. Some prominent financial operations in Reno that employ many CPAs in the state include Bank of America, Wells Fargo, and Sierra Nevada Corporation.
North Las Vegas
Perhaps a confusing name for out-of-towners, the city of “North Las Vegas” is the fourth-largest city in Nevada. While the city may not have as prominent of a financial sector as some of its neighboring cities, it is still home to significant employers needing CPAs to help manage their financial affairs. Some prominent employers in the area include the Amazon Fulfillment Center, UPS Distribution Center, Aliante Casino + Hotel, and Boyd Gaming Corporation.
Reputable CPA License Defense in Nevada
Our esteemed Professional License Defense Team is standing by, ready to lead the way in the fight for your Nevada CPA license. Contact our highly skilled attorneys today by calling us at 888-535-3686 or by using our convenient online form.
