New York (Sept. 26, 2003) -- There is more bite to the ethics process in New York State as its CPA society now requires its Professional Ethics Committee to share violations with state and federal authorities.
In some cases, the PEC will inform regulatory authorities about its investigations before a final determination is rendered on the alleged ethics violations. The new bylaw also requires the PEC to turn over all requested statements, copies and other materials relating to the investigation.
The NYSSCPA is the first state society to put this process into effect.
"Our goal is to help assure the public that CPAs in New York have high ethical standards, and those who don't will be referred to regulatory bodies that have the power to revoke their license to practice, if circumstances warrant that," said NYSSCPA president Jeff Hoops.
PEC disclosure is automatic if: a member fails to cooperate with the PEC; if a member is granted a deferral of an investigation by the PEC; if a complaint is referred to the joint trial board; if an investigation results in suspension or termination of membership; if a letter of required corrective action has been accepted by a member; and if an investigation results in automatic suspension or termination of membership.
-- WebCPA staff
