ExpertHard1 markMultiple Choice
CPA · Question 05 · Area I: Ethics & Tax Procedures
Regarding the disciplinary authority of State Boards of Accountancy, which of the following statements is correct?
Regarding the disciplinary authority of State Boards of Accountancy, which of the following statements is correct?
Answer options:
A.
State Boards can impose criminal penalties, including jail time, for fraud.
B.
State Boards can suspend or revoke a CPA's license for professional misconduct, even if the misconduct was not criminal.
C.
State Boards must follow the disciplinary rulings of the AICPA Joint Trial Board.
D.
State Boards only have jurisdiction over CPAs who are members of the state society of CPAs.
How to approach this question
Differentiate between administrative authority (State Boards) and criminal authority (Courts). State Boards control the license.
Full Answer
B.State Boards can suspend or revoke a CPA's license for professional misconduct, even if the misconduct was not criminal.✓ Correct
B
State Boards of Accountancy have the sole authority to grant, suspend, or revoke a CPA license. They can discipline licensees for misconduct, negligence, or violations of professional standards, independent of criminal courts or private associations like the AICPA.
Common mistakes
Confusing the AICPA (voluntary membership org) with the State Board (licensing authority).
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