Licensing and disciplinary systems

Question 1

AICPA

Answer 1

Provides auditing standards, accounting education, and CPA exam

Question 2

State societies of CPAs

Answer 2

Provides accounting education at the state level

Question 3

State BOARDS of public accountancy

Answer 3

License CPAs, enforces rules of conduct, set CPE requirements

Question 4

PCAOB (Public Company Accounting Oversight Board)

Answer 4

Oversees CPAs who audit publicly traded companies

Question 5

NASBA

Answer 5

Oversees state boards of accounting

Question 6

IRS

Answer 6

Oversees CPAs who practice before the IRS

Question 7

FASB (Financial Accounting Standards Board)

Answer 7

Provides accounting standards and principles

Question 8

CPA firms that audit 100+ public company audits must

Answer 8

Have an annual inspection by the PCAOB

Question 9

Can the PCAOB revoke a CPA’s right to practice as a CPA?

Answer 9

NO

Question 10

What can the PCAOB do to punish a CPA?

Answer 10

It can only prevent the CPA from performing audits for issuer companies (public companies)

Question 11

What are possible results of an AICPA investigation of a member for an ethics violation?

Answer 11

• Admonishment (firm warning)
• Corrective action
• Expulsion

Question 12

Would conviction for a felony or misdemeanor result in automatic expulsion from the AICPA?

Answer 12

NO!