Introduction
The Texas State Board of Public Accountancy was formed with an aim of “protecting the public by ensuring that persons issued certificates as certified public accountants possess the necessary education, skills, and capabilities and that they perform completely in the profession of public accountancy” (Texas State Board of Public Accountancy, 2012). The board is mandated to “initiate proceedings to determine the eligibility of a person for examination, certification, and registration or licensing. The board may also initiate disciplinary action against a person” (Texas State Board of Public Accountancy, 2012). The section of the paper summarizes the nature of the cases handled by the Board between 2004 and 2006.
Impression of the cases and actions taken by the Texas State Board of Public Accountancy
The Texas State Board of Public Accountancy has a variety of actions on a variety of offenses. These offenses focus on malpractices in accounting and auditing practice. The Board handles assorted cases of accounting and auditing. An example of a case that was handled in that period is where the accountant failed to file individual income tax returns between the period 1988 and 1999. The act violated the Unites States Code. The Board decided to annul the license of the respondent instead of further action.
In addition, the board also ordered the respondent to pay $5,000 in penalties and $1,075 for administrative costs. In another case, where the respondent received monies for accounting services and failed to execute the services, the board decided to charge the respondent penalty amounting to $1,500 and $612.50 for administrative costs. Further, in another case, the accounting practiced accountancy for one year with an expired individual certificate.
In addition, the certificate for the firm had also expired for two years. The board decided to suspend the license for the individual and the firm for two years. In addition, the individual was also required to pay penalties and administrative costs. In a separate case, the respondent failed to return the clients’ records and to respond to the customer’s queries. In addition, the accountants of the firm practiced with expired licenses. The board decided to revoke the license of the firm. In addition, a heavy penalty amounting to $12,000 was imposed on the respondent in addition to the administrative cost. In a separate case, the respondent conspired to commit securities fraud.
The respondents filed wrong reports with the SEC manipulated the books of account and gave false information to the auditors. The Board decided to revoke the license of the respondent. In addition, he paid the penalty and administration costs. In a case where the respondent pleaded nolo contendere to the case of driving under the influence, third-degree felony, the license of the respondent was revoked. Further, he was charged penalties and placed on community service for several years.
Most of the cases relate to practicing as an accountant with an expired license for the accountant and the firm. The other cases relate to wrong advice given by the accountant to the clients, filling wrong returns on behalf of the clients, failure to attend peer reviews, manipulating books of account, and failure to file tax returns.
Impression on the cases
The accounting profession is a vital function in an economy. Thus, it is important to have a regulation of certified public accountants. Various boards have been set up to formulate standards, regulations and ensure adherence to the standards. Besides, these institutions organize or continuous training of the certified public accountants, and all the accountants are expected to comply with the training requirements. This training ensures that the accountants are up to date with the contemporary issues in the profession. Besides, the accountants are expected to comply with the various codes of ethics when carrying out their duties.
Before a person is issued with a license of a practicing accountant, there are various requirements that they must comply with. Failure to comply with these requirements amounts to a violation that results in punishments. The Board carried out its duties of hearing cases of failure to comply with various requirements of the accounting profession and failure to uphold codes of ethics. The board carried out its duties objectively.
Some of the violations that were handled by the board include filing false information with the IRS, carrying out auditing and accounting work without due certificates, failure to pay taxes, failure to comply with auditing and accounting standards while on duty, failure to pay license fees for a three consecutive license period, noncompliance with the board CPE requirements, failure to return clients’ documents within a reasonable time, and material misstatement of accounting information.
The punishments imposed in these cases were impartial and they help to restore discipline in the profession. Besides, the parties who suffer losses as a result of the negligence of the accountants are compensated. In extreme cases of violation, the board revokes licenses of both individuals and firms. This ensures that the practicing accountants are well qualified and uphold ethical standards. Besides, the accountants are required to pay penalties and administrative fees for all the cases irrespective of their magnitude.
Reference
Texas State Board of Public Accountancy. (2012). General Information. Web.