North Carolina State Board of Certified Public Accountant Examiners

Subchapter 08I – Revocation of Certificates and Other Disciplinary Actions

IMPORTANT NOTICE: 21 NCAC 08I has been amended to reflect the changes effective January 1, 2014.

Section .0100 – General Provisions

08I .0101 Disciplinary Action

(a) Any person may petition the Board for appropriate disciplinary action against a CPA.

(b) The petition shall set forth in simple language the facts upon which the petition is based. It shall bear an affidavit of the petitioner stating that he or she believes the facts stated in the petition are true and that he or she is prepared to prove them at a hearing.

(c) The petition shall be filed in the office of the Board. The Board’s professional standards staff shall conduct any appropriate investigation. Based upon its investigation, the professional standards staff may prepare a proposed Hearing Notice. A Professional Standards Committee, appointed by the President of the Board, shall determine whether the allegations in the proposed Hearing Notice, if proven, would warrant a contested case proceeding pursuant to G.S. 150B 38 – 150B 42.

(d) The Board may publish or announce the disciplinary action against a CPA in such manner and for such period as it deems appropriate.

08I .0102 Procedure When Petition against Board Member or Employee

If the person against whom a petition for disciplinary action is filed is a Board member or a Board employee, the Secretary Treasurer or Executive Director shall immediately notify that person and every member of the Board of the petition. The person against whom the petition was filed shall not participate in considering or acting on the petition.

 08I .0104 Modification of Discipline

(a) A person whose certificate or CPA firm whose registration has been permanently revoked by the Board may apply to the Board for modification of the discipline at any time after five years from the date of the original discipline or [sic] more often than three years after the Board’s last decision on any prior application for modification.

(b) The application for modification of discipline shall be in writing and show good cause for the relief sought. The application for an individual shall be accompanied by at least three supporting recommendations, made under oath, from CPAs who have personal knowledge of the facts relating to the revocation and of the activities of the applicant since the discipline was imposed. The application for a CPA firm shall be accompanied by at least three supporting recommendations, made under oath, for each CPA partner, CPA member, or CPA shareholder from CPAs who have personal knowledge of the facts relating to the revocation and of the activities of the CPA partner, CPA member, or CPA shareholder since the discipline was imposed.

(c) “Good cause” as used in Paragraph (b) of this Rule means that the applicant is rehabilitated with respect to the conduct that was the basis of the discipline. Evidence demonstrating such rehabilitation shall include evidence that:

(1) the person has not engaged in any conduct during the discipline period that, if that person had been licensed or registered during such period, would have constituted the basis for discipline pursuant to G.S. 93-12(9);

(2) the person has completed the sentence imposed with respect to any criminal conviction that constituted any part of the previous discipline; and

(3) restitution has been made to any aggrieved party with respect to a court order, civil settlement, lien, or other agreement.

(d) In determining good cause, the Board may consider all the applicant’s activities since the disciplinary penalty was imposed, the offense for which the applicant was disciplined, the applicant’s activities during the time the applicant was in good standing with the Board, the applicant’s rehabilitative efforts, restitution to damaged parties in the matter for which the penalty was imposed, and the applicant’s general reputation for truth and professional probity. For the purpose of this Paragraph, “applicant” shall, in the case of a CPA firm, include CPA partners, CPA members, or CPA shareholders.

(e) Any person who applies for a modification of discipline and for a new certificate after revocation shall, in addition to the other requirements of this Section, comply with all qualifications and requirements for initial certification as identified by the Board which existed at the time of the original application.

(f) No application for a new certificate or for modification of discipline shall be considered while the applicant is serving a sentence for any criminal offense. Serving a sentence includes incarceration, probation (supervised or unsupervised), parole, or conditionally suspended sentence, any of which are imposed as a result of having been convicted or pled to a criminal charge.

(g) An application shall be ruled upon by the Board on the basis of the recommendations and evidence submitted in support thereof. However, the Board may make additional inquiries of any person or persons, or request additional evidence it deems appropriate.

(h) As a condition for a new certificate or modification of discipline, the Board may impose terms and conditions it considers suitable to ensure the licensee’s or CPA firm’s future compliance with the statutory and rule requirements of the Board including the rules of Professional Ethics and Conduct.

 08I .0105 Revocation of Certificates

(a) When a certificate is revoked either for a specific period of time or permanently, the certificate holder shall return the certificate to the Board office within 15 days of receipt of notice of revocation.

(b) Pursuant to the provisions of 21 NCAC 08I .0104, the Board may issue a new certificate under a new number to anyone whose certificate has been revoked.