Definitions of Ethics Sanctions

Expulsion or Suspension

The CSCPA may expel a member or suspend a member for a period up to two years. During the suspension period, a member must not identify themselves as a CSCPA member on any letterhead or other written material, and may not vote or hold a committee position or an office in the CSCPA. In addition, the CSCPA Professional Ethics Committee or AICPA Joint Trial Board may direct a member to complete specified continuing professional education (CPE) courses or take other actions (e.g. submit subsequent reports and/or workpapers for continued monitoring) during the suspension period.

Under the CSCPA bylaws, the CSCPA can expel or suspend a member without a hearing should there be filed with the Secretary of the Society a judgment of conviction imposed upon any member for

1. a crime punishable by imprisonment for more than one year,
2. the willful failure to file any income tax return which the member, as an individual taxpayer, is required by law to file,
3. the filing of a false or fraudulent income tax return on the member's, or a client's behalf, or
4. the willful aiding in the preparation and presentation of a false and fraudulent income tax return of a client.

Membership in the Society shall also be suspended without a hearing should the member's certificate as a certified public accountant or license or permit to practice public accounting be suspended as a disciplinary measure by any governmental authority.

Disposition: Publication of expulsions and suspensions are mandatory.

Admonishment

The AICPA Joint Trial Board publicly admonishes a member who has violated the Code of Professional Conduct but the gravity of the violation does not warrant suspension from membership.

Disposition: Publication of admonishment is mandatory.

Corrective Action Required

The CSCPA Professional Ethics Committee issues a letter of required corrective action that directs a member to complete one or more of the following:

1. complete up to 80 hours (or more) of specified CPE courses,
2. submit subsequent reports and workpapers for review, and/or
3. submit to a pre-issuance review by an outside party of reports, financial statements, and working papers on selected engagements.

The CSCPA Professional Ethics Committee issues letters of required corrective action when it concludes that remedial action is appropriate and the violation is not of sufficient gravity to warrant suspension or expulsion from members.

Disposition: The terms of the letter of required corrective action are not published.

No Violation/Dismissal

The CSCPA Professional Ethics Committee completes its investigation and finds no prima facie evidence of a violation of the Code of Professional Conduct.

The CSCPA Professional Ethics Committee dismisses a case as no provision of the Code of Professional Conduct applies to the complaint or the allegations in the complaint do not constitute a Code violation.

No Further Action

The CSCPA Professional Ethics Committee closes the investigation because it could not obtain sufficient evidence that a prima facie violation of the Code of Professional Conduct had or had not occurred or because the disciplining of a member by a state board of accountancy was deemed sufficient.

Subsequent Monitoring Completed Satisfactorily

The CSCPA Professional Ethics Committee accepts the work product that members were required to submit based on the prior disciplinary matter.

Other

Mainly comprised of cases referred by the AICPA to state societies for investigation as set forth in the agreement between the AICPA and the CSCPA.