Certified Public Accountancy
The Board of Public Accountancy polices the accounting services provided by certified public accountants for ethical and professional violations. Under § 901.502 of the Public Accountancy Act, a public accountant may be disciplined for:
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Fraud, dishonesty, or gross negligence in the performance of accounting services;
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Violating Subchapter J;
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Violating the Rules of Professional Conduct;
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Conviction of a felony, or a misdemeanor involving fraud or dishonesty; or
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Conduct indicating lack of fitness to serve as a Certified Public Accountant.
 Pursuant to § 901.501 of the Public Accountancy Act,the Board has the authority to reprimand, probate, suspend or revoke a license holder for any of the above violations. The Texas State Board of Public Accountancy employs two principle methods of detecting grounds for discipline: (a) the Compliant and Investigation Process (Public Accountancy Act Subchapter E, 22 Texas Administrative Code §§ 519.20 – 519.20), and (b) Peer Review.
§ 901.159 of the Public Accountancy Act provides for a Peer Review program to review the work product of certified public accountants and accounting firms for compliance with accounting standards. Under 22 Texas Administrative Code § 527.4(a), participation in the program is required of each certified accounting firm that performs audits, reviews, compilations, forecasts, projections, or special reports. If the accounting firm receives an adverse report or review from the peer review committee, the Board of Public Accountancy may refer the firm or the contributing accountant to the Disciplinary Process, 22 Texas Administrative Code § 527.5(d).
Because the complaint and peer review process can cause a certified public accountant to be subject to discipline, it is imperative that a certified public accountant obtain representation throughout either process. Bear in mind, the evidence obtained by the peer review committee can be requested and subpoenaed by the Board to further supplement and substantiate the Board’s investigation of a complaint.
If after a Complaint and Investigation or Peer Review, the Board of Public Accountancy determines that grounds for discipline exist, formal charges may be filed in accordance with § 901.509 of the Public Accountancy Act. The accountant may then request an Informal Settlement Conference to resolve the matter without the necessity of a formal hearing, 22 Texas Administrative Code § 519.23. If the case cannot be resolved informally, the certified public accountant is entitled to and administrative hearing at SOAH, a forum procedurally similar to a civil trial, pursuant to § 901.508 of the Public Accountancy Act. At both the settlement conference and administrative hearing, the accountant has the right to representation and the opportunity to present a defense to the allegations. |
