As a licensed CPA in New Jersey, you have worked incredibly hard to earn your CPA license and respect from your clients, colleagues, and community members. Despite your many sacrifices over the years, mistakes and misunderstandings can trigger disciplinary threats instantly. New Jersey state accountancy board misconduct investigations can bring your entire life to a halt, leaving you scrambling to make new financial and professional plans.
In addition to imposing probationary penalties and fines, the New Jersey Board of Accountancy has the authority to deny, restrict, suspend, or deny your CPA license. While disciplinary investigations can feel isolating, you are not alone. The Lento Law Firm's Professional License Defense Team represents accountants facing misconduct allegations nationwide, especially in New Jersey.
Make the strategic choice to safeguard your New Jersey CPA license. Contact us today by calling 888-535-3686 or by using our online contact form.
New Jersey CPA Landscape
In the vibrant heart of the East Coast, New Jersey's CPA practice thrives as a pivotal element in the region's financial sector. The state's proximity to New York allows CPAS to serve as a strategic base for accountancy professionals who cater to diverse clients, from local businesses to international corporations. New Jersey CPAs contribute significantly to the state's economy, which plays an integral role in the East Coast's success and beyond.
Obtaining a New Jersey CPA License
As one of the select few who earned a CPA license in New Jersey, you understand the sacrifices and challenges you have made. New Jersey accountants must meet the following set of stringent requirements in order to obtain their CPA license:
- Education Requirements: Bachelor's Degree that includes at least 120 semester hours of education, with concentration courses in accounting or related professional courses.
- Examination Requirements: Candidates must pass all sections of the Uniform Certified Public Accountant Examination with a grade of 75 or higher in each section. Candidates who do not pass all sections in one sitting may retake failed sections.
- Moral Character Requirements: Applicants must complete a moral character application consisting of a background check. In instances of past criminal conduct or other professional licensing violations, applicants may be required to submit supplemental documentation.
- Experience Requirements: Applicants must have proof of completing one year of practical experience verified by a licensed CPA. Experience must include accounting, management advisory, financial advisory, tax, or consulting skills but can be earned in various employment settings such as government, industry, academia, or public practice.
Triennial Licensing Requirements
To maintain their license, New Jersey CPAs must continue to meet the state's triennial licensing requirements. Throughout this timeframe, CPAs must complete 120 credits of continuing professional education (“CPE”) units every three years of licensure. In some rare cases, the Board of Accountancy may waive a CPA's requirements to earn their CPEs where health issues, military service, or other significant life events have disrupted their ability to complete their units.
The New Jersey State Board of Accountancy
The New Jersey State Board of Accountancy is the state agency tasked with regulating and overseeing the accounting profession within the state. The 12 members appointed by the Governor consist of CPAs who are actively engaged in the practice and have demonstrated superior professional and ethical commitment to accounting.
The Board carries out several critical functions, such as administering and enforcing provisions of the New Jersey Accountancy Act, adopting necessary rules and regulations, establishing professional conduct standards for licenses, evaluating candidates for licensure, administering the examination, establishing standards for continuing education, and conducting hearings for disciplinary actions.
Disciplinary Authority and Grounds for Revocation
In addition to the Board's many other functions, the Board is tasked with the disciplinary authority to deny, limit, suspend, or revoke licenses in instances of professional or ethical misconduct.
Navigating the complex landscape of professional standards and legal obligations is crucial for New Jersey CPAs. Because misconduct violations undermine the trust placed in individual CPAs and the accounting profession at large, the Board of Accountancy takes misconduct allegations very seriously.
As cited in the New Jersey State Board of Accountancy Cumulative Statutes, some of the various grounds for disciplinary conduct are discussed below.
Fraud or Deceit
In accounting, fraud, and deceit refer to intentionally misleading others to gain a financial advantage or distorting financial statements. Some examples of fraud specific to the accounting world include fabricating financial statements, forging signatures on audit documents, and knowingly representing financial information to tax authorities. Fraudulent or deceitful activity can also include engaging in insider trading based on privileged information obtained during an audit or creating fictitious books to conceal embezzlement activities.
Failure to Maintain Required Qualifications
New Jersey CPAs fail to maintain their required state qualifications when they fail to keep up with the necessary education and professional standards to practice. Some examples include failing to complete requisite continuing professional education units, letting professional certifications lapse, and failing to pay annual fees. Other examples include presenting false information on professional experience to meet licensing requirements or failing to report disciplinary actions taken by other professional organizations.
Dishonesty
Dishonesty in New Jersey CPAs refers to untruthfulness or misleading conduct that can undermine the integrity of financial reporting and damage trust in the accounting profession—both of which the State Board of Accountancy takes extremely seriously. Some examples of dishonesty in the profession include the deliberate omission of significant financial information in reports, misleading clients about investment risks, billing clients for services not rendered, or significantly overestimating hours worked on a client's account.
Gross Negligence
Gross negligence extends beyond mere negligence. Gross negligence among New Jersey CPAs signifies a severe lack of care or oversight in their work, leading to significant errors or omissions that can have drastic consequences for clients. Some examples of gross negligence can include significant errors in auditing or other work that indicate a severe lack of due diligence. Other examples of gross negligence can include failing to follow international financial reporting standards (IFRS) or making significant misstatements in financial reports.
Repeated Negligence in Practice
Repeated negligence in practice refers to a repeated pattern of carelessness or mistakes in work product, demonstrating a persistent failure to meet the professional standards expected in the accounting field. Some examples of repeated negligence that can place your license at risk include consistently making errors in tax filings and repeatedly failing to detect fraud in audits over multiple engagements. Other examples of repeated negligence include the consistent failure to recognize and report related party transactions in financial statements across several audits.
Any Violation of the Accountancy Act
Some additional misconduct violations under the Accountancy Act include:
- Operating without a valid license.
- Misrepresenting qualifications.
- Violating client confidentiality agreements.
- The Unauthorized use of the CPA title.
Criminal Conduct
Some New Jersey CPAs may be surprised to learn that criminal conduct can threaten their license. This is especially true if the criminal conduct is related to dishonesty or fraud, which signifies that the CPA is engaging in illegal activities that breach ethical standards and laws.
Some examples of criminal convictions that significantly jeopardize the professional standing of New Jersey CPAs include:
- Embezzlement.
- Tax evasion or securities fraud.
- Money Laundering Crimes.
- Ponzi Schemes.
Conduct that Affects a CPA's “Fitness” to Engage in Public Accountancy
Any other conduct that affects a licensee's fitness to engage in public accountancy refers to behaviors or actions by New Jersey CPAs that question their ability to perform their duties ethically and competently, potentially putting clients and the public at risk. Some other types of misconduct in this category can include:
- Substance abuse impairs professional judgment-whether the substances are prescribed or illicit.
- Severe professional misconduct in another jurisdiction. This can occur in instances where a CPA has multi-state licenses.
- Exhibiting discriminatory practices within a professional setting or harassment of clients or colleagues could undermine the public's trust in the individual's professional capabilities.
- Being declared mentally incompetent by a Court of Law.
- Failure to make Child Support Payments as ordered by a Court of Law or other government entity.
The Disciplinary Process
Although the disciplinary process in New Jersey accountancy investigations may feel very challenging to understand, the process exists in a structured procedure framework that ensures the professional involved receives “due process.” Due process is simply a legal term that affords an accused party the right to be notified about the allegations against them and present their side of the story before a neutral decision-maker, often a civil, criminal, or administrative law judge or hearing officer.
Complaints and Investigations
Within the context of New Jersey State Board of Accountancy Disciplinary Proceedings, the process begins once the Board receives a complaint regarding potential misconduct. After conducting an initial investigation into the alleged misconduct, the Board will notify the professional about the allegations, the investigatory process, and how the adjudicatory or hearing process will proceed.
Board investigations can vary from case to case. Still, Board investigators typically engage in various fact-finding inquiries, such as reviewing documentation, interviewing witnesses, and asking the accused professional to participate by providing written or oral statements. Failure to comply with investigation requests can lead to even more disciplinary marks.
Settlement or Adjudication
After the investigation, the accused professional can settle claims through a settlement or consent order or proceed to an administrative hearing. While administrative hearings are not jury trials, they require a great deal of skill. These hearings operate within the context of state accountancy, administrative, and evidentiary laws. In addition to arguments of law and fact, hearings also include the submission of evidence, witness testimony, and cross-examination.
Hearing Decision
Following the hearing, a hearing officer may dismiss the matter, close the case, or impose sanctions. Possible sanctions include license suspension, refusal to renew licenses, license revocation, license restrictions, fines, or other forms of probationary programs such as anger management, continuing education courses, substance abuse treatment, etc.
It's important to note that orders from these hearings may be appealed. If you have already received an unfavorable result from a hearing before the New Jersey State Board of Accounting, contact our Professional License Defense Teamtoday for more information on requesting an appeal.
Consequences of Losing Your New Jersey CPA License
The revocation of your New Jersey CPA license can have profound impacts, tarnishing your professional reputation and credibility. Due to the New Jersey Inspection of Public Records Act, which mandates unrestricted public access to records, the state openly publishes a list of professionals disciplined by the Board. This means your disciplinary history becomes easily accessible to potential employers and clients.
Furthermore, the loss of your CPA license can impose significant financial strains beyond the immediate loss of income, as it affects retirement benefits and other employment perks. Although finding employment as an uncertified accountant might be possible, these positions typically come with lower salaries and are more restrictive than positions available to CPAs.
On a personal level, losing your license can cause considerable emotional and psychological distress, leading to feelings of embarrassment, guilt, and stress. These emotions can have a broader impact than you might anticipate, affecting not just you but also your relationships with partners, family members, and friends.
New Jersey CPA License Defense
Our dedicated Professional License Defense Team stands ready to support you in the crucial effort to protect your New Jersey CPA license. Do not let the dedication and hard work it took to achieve your CPA credential go to waste. Whether you are located in the bustling New York-Newark Jersey City Metropolitan Area, Edison, Vineland, or Ocean City area, our Team can help you navigate a path through investigations launched by the New Jersey State Board of Accountancy.
Your future is on the line. Contact our Professional License Defense Team today for more information on navigating any allegations threatening your New Jersey CPA license. Contact us today by calling 888-535-3686 or using our convenient online form.
