Current through Register Vol. 46, No. 19, March 20, 2024
(1)
Type of sanctions. The board has authority to impose the
following disciplinary sanctions:
a. Revoke a
license issued by the board. In the event of a revocation, the licensee shall
not be allowed to remain a member, partner or shareholder of a business entity
if the law requires 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
shall 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 require the
licensee to undergo a quality review or desk review under the board's
supervision. The licensee shall select, subject to approval by the board, a
CPA, LPA, or a firm of CPAs or LPAs. The costs of the review shall be paid by
the licensee. The board shall be furnished a copy of the report issued by the
reviewing party and may require remedial actions or education as a result of
the report findings.
(2) The board
may require 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 period of probation. The agreement shall be
preapproved by the board. The board may require the licensee to report
regularly concerning the preissuance reviews conducted pursuant to the
agreement. Any cost incurred in obtaining preissuance review shall be paid by
the licensee.
(3) A substance abuse
evaluation and such care and treatment as are recommended in the evaluation or
otherwise appropriate under the circumstances.
e. Impose requirements regarding continuing
education. The board may 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 required 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. Require 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, the amount of which shall be at the discretion of the board, but
which shall not exceed $1,000 per violation, or after June 30, 2009, $10,000
per violation for a firm. Civil penalties may be imposed for any of the
disciplinary violations specified in rule
193A-14.2
(17A,272C,542).
h. Issue a
reprimand.
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 shall not accept a voluntary
surrender of a license to resolve a pending disciplinary investigation unless a
statement of charges will be filed along with the order accepting the voluntary
surrender Such a voluntary surrender is considered disciplinary action and
shall be published in the same manner as is applicable to any other form of
disciplinary order
(4)
Notification requirements. Whenever a license is revoked,
suspended, restricted, or voluntarily surrendered under this chapter, the
licensee shall:
a. Within 15 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
practice of the licensee has been restricted; for example, the licensee may
agree to discontinue governmental audits. Such notice shall advise the client
to obtain alternative professional services, unless the restriction 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, the licensee shall file with the board
copies of the notices sent pursuant to paragraph 16.3(4) "a. " Compliance with
this requirement shall be a condition for an application for
reinstatement.
(5)
Civil penalties. Factors the board may consider when
determining whether to assess and the amount of civil penalties include:
a. Whether other forms of discipline are
being imposed for the same violation.
b. Whether the amount imposed will be a
substantial deterrent to the violation.
c. The circumstances leading to the
violation.
d. The severity of the
violation and the risk of harm to the public.
e. The economic benefits gained by the
licensee as a result of the violation.
f. The interest of the public.
g. Evidence of reform or remedial
action.
h. Time lapsed since the
violation occurred.
i. Whether the
violation is a repeat offense following a prior cautionary letter, disciplinary
order, or other notice of the nature of the infraction.
j. The clarity of the issues
involved.
k. Whether the violation
was willful and intentional.
l.
Whether the licensee acted in bad faith.
m. The extent to which the licensee
cooperated with the board.
n.
Whether the licensee improperly used a title restricted by Iowa law or rules,
performed attest services or issued a compilation report when not properly
licensed to do so, or with a lapsed, inactive, suspended, restricted or revoked
license engaged in practices which require licensure.