Problem:
In 2014 there were 724 disciplinary cases opened and 113 CPA's expelled from the profession by the AICPA and State boards, compared to 90 in 2013. Besides breaking the CPA ethics rules, a CPA can get lose their license for a certain period of time (suspended) or permanently (expelled) due to many acts including committing a felony or misdemeanor (in some cases) that is totally unrelated to their profession like a weapons charge or felony DUI (felon's are not permitted to hold a CPA). CPA's can also be suspended for not meeting their continuing professional education (CPE) requirements, not paying their bi-annual license fee on time (requires formal reinstatement), In addition, some States have tiered CPA's where they can be certified or licensed, or both and while they may lose their license they can still be certified. However, as we read in the Week 4 Introduction, the most common reason for a CPA to get into ethical or professional trouble is when they forget that even if they are now in private business (working for a company) and not in public business (working for a CPA firm) that they are still held accountable for the ethical and professional standards of the profession - particularly if they sign their name with the CPA designation.
Q1. Find a recent CPA case where the member was expelled (it's public information) and discuss the reasons why the member got in trouble.
Q2. Discuss if a CPA should be held to the same standard when not in public practice.