02.01 Licensing and Disciplinary Systems Flashcards
Who provides oversight of professional licensing?
State Boards of Accountancy
What do State Boards of Accountancy have explicit authority to do?
State Boards of Accountancy have explicit authority regarding the granting, maintaining, and revoking of a CPA’s license.
What is the purpose of the AICPA?
Provides auditing standards, accounting education, and CPA exam.
What is the purpose of state societies of CPAs?
Provide accounting education at the state level.
What is the purpose of state boards of accountancy?
License CPAs, enforce rules of conduct, set continuing education requirements.
What is the purpose of the PCAOB?
Oversees CPAs who audit publicly traded companies.
What is the purpose of NASBA?
Serves as a forum for the state boards of accounting.
What is the purpose of the IRS?
Oversees CPAs who practice before the IRS.
What is the purpose of FASB?
Provides accounting standards and principles.
What are the three requirements that State Boards have to qualify to be licensed as a CPA?
Education; passing the CPA exam; work experience.
True or False: State boards monitor to ensure that only a licensed CPA performs attest-related functions.
True.
What are examples of attest-related functions?
Any audit or other engagement to be performed in accordance with SAS.
Any review of a FS to be performed in accordance with SSARS.
Any examination of prospective financial information to be performed in accordance with SSAE.
Any engagement to be performed in accordance with the standards of the PCAOB.
What acts would cause revocation of a CPA license and other penalties?
Fraud or deceit in obtaining a CPA certificate.
Cancellation of a certificate in any other state for disciplinary reasons.
Failure to comply with requirements for renewal.
Revocation of the right to practice before any state or federal agency.
Dishonesty, fraud, or gross negligence in performance of services or failure to file one’s own income tax returns.
Violation of professional standards or code of ethics.
Conviction of a felony or any crime involving fraud of dishonesty.
What does reciprocity mean?
Reciprocity between states allow a licensed CPA or CPA firm to get a reciprocal license in another state if they move there.
What does mobility mean?
Mobility between states allows a CPA who is licensed in one state to offer services in another state.
