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Common Reasons for CPA License Suspension

Posted on December 5, 2023 in

A professional license suspension is an unsettling event that can halt years of dedicated work. CPAs are held to the rigorous standards set by the Arizona State Board of Accountancy. A simple oversight can lead to a disruption in everyday business. More severe allegations can also result in stressful ordeals that demand the navigation of an Arizona CPA license Defense attorney working on your behalf to protect your professional licensing.

A Request for Hearing Should Never be Ignored

There are common reasons a CPA license suspension may occur. The first sign of trouble should prompt an immediate response to protect a career. Regulating boards take disciplinary action seriously.

A Notice of Conviction of Crime

A crime committed related to accounting practices will likely result in a license suspension. These acts can include fraud, embezzlement, or tax violations, to name a few. A chance to defend against the suspension and find remediation to end the suspension should be approached with documentation and a strong understanding of the law.

Violation of Fiduciary Duty, Accountancy Rules, or Trust

Fiduciaries and trust executors must look out for their clients’ best interests. A failure to provide these services occurs when decisions benefit an executor more than a client or fail to act in a way that prevents or minimizes damages to a client. The law requires CPAs to remain independent of influence when taking on these specific client duties.

Simple or Gross Negligence

These forms of negligence occur when a CPA makes errors that typically would not be made by another professional or when a significant deviation from the standards occurs. This negligence may take the form of improper accounting advice, poor financial bookkeeping, or a violation of state and federal securities laws, as a few examples. In addition to license suspensions, CPAs may face lawsuits due to harmful behaviors. 

Failure to Renew Licenses 

License renewals allow CPAs to continue to grow in their ability to serve clients in conjunction with learning about and implementing changing accounting requirements. Professional education is imperative to keep up with the evolution of regulations to provide professional services to clients. While a failure to renew a license in Arizona may seem minor, operating without the required qualifications can lead to repercussions from the Arizona State Board of Accountancy. 

Failure to Respond or Inaccurately Responding to the Licensing Board’s Requests

If a complaint has been filed against you, the licensing board may request certain information pertaining to the inquiry. Responding promptly to all documentation requests is vital to protect from a suspension. Additionally, all responses and documentation should be accurate and without falsification. 

Responding to board requests often seems like an uncomplicated procedure. However, your responses and how an individual responds to a board can be considered in determining a license suspension. A trusted CPA license defense attorney can protect you from simple errors that lead to impactful negative results. 

Work With a Trusted Arizona License Defense Attorney 

Having an attorney on your side that ensures you sidestep the pitfalls that often lead to a license suspension is critical to protect your livelihood. Years of education, hard work, and the stability of the future should never be disregarded or taken lightly when your professional license is at stake. Stewart Law Group remains steadfast in assisting clients by offering free phone or video consultations to ensure their clients succeed as Arizona-licensed CPAs.