What Ethics Complaints Look Like for CPAs

Complaints against cpas arrive through formal channels — a written complaint to the state board of accountancy, a peer report, an employer report, or a referral from another agency. Most complainants do not fully understand the rules they are accusing you of violating. That asymmetry is both a vulnerability and an opportunity, depending on how it is handled.

Which Board Investigates CPAs

CPAs are regulated at the state level by the state board of accountancy. The exact name of the board varies by state — for example:

• New York: New York State Board for Public Accountancy
• New Jersey: New Jersey State Board of Accountancy
• Rhode Island: Rhode Island Board of Accountancy
• Maine: Maine Board of Accountancy
• Massachusetts: Massachusetts Board of Public Accountancy
• North Dakota: North Dakota State Board of Accountancy

Common Violations

The most frequent allegations against cpas fall into a recognizable set of categories:

• Audit failures and GAAS violations
• Independence violations under AICPA rules
• Failure to file or fraudulently filing client tax returns
• Misappropriation of client funds
• Lack of due professional care
• Disciplinary action by the SEC, PCAOB, or IRS Office of Professional Responsibility
• Confidentiality breaches
• Failing peer review

Consequences of an Upheld Complaint

State boards can impose fines, mandatory CPE, practice restrictions, suspension, and revocation of the CPA license and firm permit. Federal action by the SEC or PCAOB triggers parallel state board proceedings in nearly every case.

How We Help

We represent cpas from the first notice through final order — drafting the response, managing document production, negotiating with board counsel, preparing witnesses, conducting hearings, and where necessary, appealing to state court. We also coordinate parallel malpractice defense and criminal exposure when those issues are in play.

States Where We Defend CPAs