Lesson 3-Licensing and Disciplinary Systems

Question 1

Who can grant and take away CPA licenses?

Answer 1

It is only state boards that can grant CPA licenses and only state boards that can take them away

Question 2

One needs a CPA license to perform attest-related functions like:

Answer 2

1. Any audit or other engagement to be performed in accordance with SAS
2. Any review of a financial statement to be performed in accordance with SSARS
3. Any engagement to be performed in accordance with the standards of the PCAOB

Question 3

One does not need a CPA license to perform such non-attest services as:

Answer 3

1. Preparation of tax returns
2. Management advisory services (consulting)
3. Preparing financial statements without issuing a report thereon

Question 4

Automatic revocation from the AICPA without a hearing can occur do to:

Answer 4

1. Revocation of certificate by a state board of accountancy
2. Committing a felony
3. Willfully failing to file a tax return;
4. Filing a fraudulent tax return on own or client’s behalf
5. Aiding in preparing a fraudulent tax return for a client

Question 5

What is the Joint Ethics Enforcement Program (JEEP)?

Answer 5

The AICPA and most state CPA societies have agreements to split the handling of ethics complaints. The JEEP can handle violations across state lines with a single investigation, hearing, and punishment.

Question 6

What type of ethics complaints does the AICPA handle?

Answer 6

1. Matters of national concern
2. Matters involving more than one state
3. Matters in litigation
   - The individual states handle the rest.