The general grounds for action against a licensed accountant are contained in ¤40-2-290. The code of Professional Ethics is contained in Article 3.
This guide should be used in filing a complaint against a licensee or requesting Board review and assistance involving a licensee.
RETENTION OF CLIENT RECORDS
The Accountancy Law at ¤40-2-360 provides that "All statements, records, schedules, working papers, and memoranda made by a certified public accountant or public accountant incident to or in the course of professional service to clients, except reports submitted to a client, are the property of the accountant, in the absence of an express agreement between the accountant and the client to the contrary". Retention of client records after a demand was made for them is considered to be an act discreditable to the profession and a violation of rule 1-21(A). Guidance in determining which material is the property of the accountant and which is the property of the client may be found in AICPA Professional Standards, ET section 501 (ET 501.01, June 1, 1998 edition is attached for your reference).
Please provide as much of the following information as possible.
1. The complaint or request should be in writing, in the form of a letter. If there is a serious reason why the request cannot be placed in writing, a call should be made to the Board's Administrator or Investigator.
2. Provide your name, complete mailing address and daytime telephone number with area code.
3. Provide the names, addresses and daytime telephone numbers of any other persons (or business entities) that have been harmed.
4. Provide the name of the licensed accountant along with the name of the firm, the complete mailing address, daytime telephone number and certificate number, if known.
5. Provide a description of the way the licensed accountant has harmed you, or violated the Accountancy Law.
a) Indicate the specific things that were done improperly. (In the case of record retention, provide a detailed list of records involved.)
b) Indicate the dollar cost to you, if known.
c) Describe the evidence that is available and provide copies of accountant's reports, correspondence, invoices or other written items to document the complaint.
d) Provide the name, address, and daytime telephone number of any witness that can provide testimony.
6. If you have a signed engagement agreement with the accountant, a copy should be provided.
7. If you are represented by legal counsel, please provide the name, firm, address and telephone number of the attorney.
8. If a formal hearing is deemed necessary, indicate whether you are willing to testify under oath to the allegations made in the complaint? Are the witnesses also willing to testify, if necessary?
Please Note: If the complaint is about the amount of fees charged for services, this Board will not be able to help you. Contractual matters between the accountant and client are covered under civil law and are not under the jurisdiction of the Board of Accountancy.
SUMMARY OF PROCEDURES FOR PUBLIC TO FILE A COMPLAINT AGAINST UNLICENSED INDIVIDUALS, FIRMS AND BUSINESSES
The Board has jurisdiction over persons licensed by the Board and may bring action under the Administrative Procedures Act against such persons for violation of the Accountancy Law and its rules and regulations.
The Board does not have jurisdiction over UNLICENSED persons, firms and businesses but may bring legal action in its own name under the state's criminal statutes against any such person guilty of holding out to the public in violation of the law. UNLICENSED persons may be charged with a misdemeanor and prosecuted in criminal court or an injunction may be obtained, restraining him/her from violating the law in the future. The Board will accept evidence from anonymous sources. However, evidence from someone who has been harmed and is willing to testify under oath is much stronger evidence in a court of law.
If possible, a complaint should be in writing in the form of a letter. In any case, provide as much physical evidence as possible. This could include copies of letterheads, cards, advertisements, directory listings, pictures of signs, etc. If available, copies of financial statements with the name associated, opinions on financial statements, transmittal letters accompanying financial statements, invoices for services, engagement letters, etc., should be provided. You should indicate whether or not you are willing to testify under oath and you should indicate the names and addresses of other witnesses who might so testify.