Current through Register Vol. 47, No. 13, December 25, 2024
(1)
Type of
sanctions. The board has the authority to impose the following
disciplinary sanctions:
a. Revoke a license
issued by the board. In the event of a revocation, the licensee is not allowed to
remain a member, partner or shareholder of a business entity if the law dictates
that all members, partners or shareholders of such an entity be actively
involved.
b. Suspend a license issued
by the board. A CPA or LPA who is under suspension will refrain, during the
period of the suspension, from all facets of the ordinary practice of public
accounting.
c. Revoke or suspend the
privilege to engage in one or more areas of the practice of public
accounting.
d. Impose a period of
probation. As a condition to a period of probation, the board may impose terms
and conditions deemed appropriate by the board, which may include, but are not
limited to, the following:
(1) The board may
order the licensee to undergo a quality review or desk review under the board's
supervision. The licensee will select, subject to approval by the board, a CPA,
an LPA, or a firm of CPAs or LPAs. The review cost will be paid by the licensee.
The board will be furnished a copy of the report issued by the reviewing party
and may order remedial actions or education as a result of the report
findings.
(2) The board may order the
licensee to enter into an agreement with a CPA, an LPA, or a firm of CPAs or LPAs
to obtain a preissuance review of any audits, compilations, or reviews issued by
the licensee or other public accounting services performed during the
probationary period. The agreement will be preapproved by the board. The board
may order the licensee to report regularly concerning the preissuance reviews
conducted pursuant to the agreement. Any cost incurred in obtaining preissuance
review will be paid by the licensee.
(3) The board may order the licensee to undergo
a substance abuse evaluation and such care and treatment appropriate under the
circumstances.
e. Specify
that a designated amount of continuing education be taken in specific subjects
and may specify the time period for completing these courses. The board may also
specify whether that continuing education be in addition to the continuing
education routinely necessary for license renewal. The board may also specify
that additional continuing education be a condition for the termination of any
suspension or reinstatement of a certificate, permit, license, or registration.
The board may also specify that current reference materials be obtained and
maintained.
f. Obligate the licensee
to undergo reexamination, using one or more parts of the CPA or LPA examination
given to candidates for the CPA certificate or the LPA license.
g. Impose civil penalties pursuant to Iowa Code
section 542.14(2).
i. Order the licensee to
alter a professional practice or refrain from engaging in a particular act or
practice in the future, notify clients of unlicensed or unprofessional conduct,
or take such other remedial measures that are appropriate under the public
interest and circumstances of the infraction.
j. Order such alternative discipline as is
allowed by law.
(2)
Imposing discipline. Discipline may be imposed against a
licensee only by the affirmative vote of a majority of the members of the board
who are not disqualified.
(3)
Voluntary surrender. The board may accept the voluntary
surrender of a license to resolve a pending disciplinary contested case or
pending disciplinary investigation. The board will not accept a voluntary
surrender of a license to resolve a pending disciplinary investigation unless a
statement of charges is filed along with the order accepting the voluntary
surrender. Such a voluntary surrender is considered disciplinary action and will
be published in the same manner as is applicable to any other form of
disciplinary order.
(4)
Client notification. Whenever a license is revoked, suspended,
under probation, or voluntarily surrendered under this chapter, the licensee
will:
a. Within 30 days of receipt of the
board's final order, notify in writing all clients of the fact that the license
has been revoked, suspended or voluntarily surrendered or that the licensee is
under probation and the subject of compliance terms imposed by the board; for
example, the licensee may agree to discontinue governmental audits while the
licensee's license is under probation. Such notice will advise the client to
obtain alternative professional services, unless probationary compliance terms at
issue would not impact the public accounting services provided for that
client;
b. Within 30 days of receipt
of the board's final order, file with the board copies of the notices sent
pursuant to paragraph 16.3(4)
"a." Compliance with this paragraph
is a condition precedent for an application for
reinstatement.