Question

The AICPA Code of Professional Conduct (the Code) is generally recognized as a model for the accounting profession. Other professional accounting organizations have their own Standards. Some use parts of the AICPA Code; but others are very different from the AICPA Code.

1. Which organizations can take away a CPAs license to practice as a CPA? What standards do these organizations use?

Answer 1

Following organizations can take away a CPAs license to practice as CPA-

1. The Public Company Accounting Oversight Board or PCAOB investigates into complaints against CPA. Depending on the offense the board has the authority to take appropriate action, this includes striking off the CPAs name.

2. The Securities Exchange Commission (SEC) can blacklist CPAs and can charge them on criminal grounds. During the due course of the investigation, SEC can place temporary sanction till the result of the outcome.

3. Every CPA is governed by the licensing requirements of the jurisdiction of the Board of Accountancy of the state where a CPA practices. In case a complaint is lodged against the CPA, the state board can take action by placing sanction, blacklisting the accountant and revoking the license.