Which of the following statements accurately describes the disciplinary authority of a State Board of Accountancy compared to the AICPA?

Answer options:

Both the State Board and the AICPA can revoke a CPA's license to practice.

The AICPA can suspend a CPA's license, but only the State Board can revoke it.

The State Board can revoke a CPA's license, while the AICPA can only suspend or terminate membership.

State Boards can only impose monetary fines, while the AICPA handles license revocation.

How to approach this question

Distinguish between the licensing body (State Board) and the professional membership organization (AICPA).

Full Answer

C.The State Board can revoke a CPA's license, while the AICPA can only suspend or terminate membership.✓ Correct

State Boards of Accountancy are government agencies with the statutory authority to issue, suspend, and revoke CPA licenses. The AICPA is a professional organization that can discipline members by suspending or terminating membership, but it cannot affect the legal license to practice.

Common mistakes

Assuming the AICPA has regulatory power over the license itself.

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