New rules will allow the New York State Board of Regents stronger local oversight of CPAs who are disciplined by the Securities and Exchange Commission.
For the first time, accountants who lose the right to practice before the SEC because of substandard practice will be subject to disciplinary action from the state as well. The new rules went into effect on July 13.
In June, the board revised its definition of "unprofessional conduct" for CPAs to include disciplinary actions from both the commission and the Public Company Accounting
Oversight Board. The Regents can now pile on their own penalties for professionals, ranging from censure and reprimand, to the revocation of a CPA's professional license. The expanded definition will also encompass situations where an accountant settles with the regulatory agencies without admitting wrongdoing.
The Regents also enacted rules that require CPAs to notify the New York State Education Department within 45 days of being convicted of a crime, reaching settlements in certain civil proceedings, or being disciplined by any state or federal regulatory agency. The requirement had been to report those actions when re-registering with the state, which occurs every three years.
In New York State, CPAs, as well as 46 other professions, are licensed by the New York State Board of Regents.
Previously on WebCPA:
N.Y. CPAs, One on the Run, Indicted for $7.5M Tax Fraud (Jan. 26, 2006)
School Audit Scandal Balloons to $11.2M (March 4, 2005)
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