The North Carolina Board of CPA Examiners ("Board") plays a pivotal role in ensuring the integrity and professionalism of the accounting field within the state.

As the governing body for Certified Public Accountants ("CPAs"), the Board upholds rigorous standards of practice, oversees the licensing process, and enforces compliance with ethical rules and regulations. For both aspiring CPAs and experienced professionals, understanding the Board’s responsibilities, processes, and expectations is essential for navigating the path to licensure and maintaining professional standing. It can be a daunting task navigating the expectations.  This article highlights some of the requirements and functions for licensees.

Licensing Process

The licensing process for Certified Public Accountants (CPAs) in North Carolina is a structured pathway that involves meeting educational, examination, and experience requirements. The North Carolina Board of CPA Examiners oversees the critical examination component of this process, managing the application, administration, and scoring of the Uniform CPA Exam. This exam is a crucial step in obtaining CPA licensure in all U.S. jurisdictions, and while the education and experience requirements may differ across states, the Uniform CPA Exam remains the same nationwide. 

To sit for the Uniform CPA Exam in North Carolina, candidates must meet several eligibility criteria:

• Be a U.S. citizen or resident alien, or a citizen of a foreign jurisdiction with similar examination privileges.
• Be at least 18 years old.
• Be of good moral character.
• Meet the specific education requirements outlined by the Board.

Applicants may not be eligible to take the exam if the Board determines the applicant has violated the laws and rules of Professional Ethics and Conduct.  An applicant can challenge this determination. Additionally, exam applicants are required to undergo a background check as part of the application process. If an applicant is concerned about a criminal conviction in their past and whether they will be eligible for licensure, they may ask the Board for a predetermination of eligibility as early as prior to entry into an educational program.  Experienced counsel should be considered to assist in navigating these processes.

In addition to successfully passing the Uniform CPA Exam, an applicant must provide evidence of appropriate work experience and proof of successful completion of the North Carolina Association of CPAs course, NC Accountancy Law:  Ethics, Principles, & Professional Responsibilities, an accountancy law course.  The work experience and course must be completed prior to applying for licensure with the Board.

Maintaining the License

Once licensed, it's important to carefully maintain all aspects of the Board's requirements to retain the license.  All CPAs licensed in North Carolina must:

• renew their license annually before July 1 and pay a $60 renewal fee
• complete Continuing Professional Education (CPE) in accordance with 21 NCAC 08G .0401, including at least 50 minutes of regulatory or behavioral professional ethics and conduct by December 31 each year and report those at the time of renewal
• retain CPE completion certificates and provide them to the Board upon notification of an audit
• notify the Board in writing of any change in mailing address, physical address, practice/business address, phone number, employment, email address, or website address within 30 days of a change

Failure to comply with any of the above could result in the licensee being disciplined.

Navigating Practice Complaints

A complaint against a CPA to the Board is taken seriously.  An investigation can be quite daunting and overwhelming to the professional faced with one, and experienced counsel should be considered by the CPA if an investigation is opened. 

The Board's Professional Standards Committee ("Committee") is a three Board member committee tasked with enforcing the Board's law and rules of Professional Ethics and Conduct. Violations of the law or rules may result in discipline to the CPA in the form of revocation (partial or in full) of the license, censure, and/or imposition of a civil penalty. 

The Board has jurisdiction to investigate and take action pursuant to their authority in N.C. Gen. Stat. §93-12(9) which states:

The Board shall have the power to adopt rules of professional ethics and conduct to be observed by certified public accountants in this State and persons exercising the practice privilege authorized by this Chapter. The Board shall have the power to revoke, either permanently or for a specified period, any certificate issued under the provisions of this Chapter to a certified public accountant or any practice privilege authorized by the provisions of this Chapter or to censure the holder of any such certificate or person exercising the practice privilege authorized by this Chapter. The Board also shall have the power to assess a civil penalty not to exceed one thousand dollars ($1,000) for any one or combination of the following causes:

1. Conviction of a felony under the laws of the United States or of any state of the United States.

2. Conviction of any crime, an essential element of which is dishonesty, deceit or fraud.

3. Fraud or deceit in obtaining a certificate as a certified public accountant.

4. Dishonesty, fraud or gross negligence in the public practice of accountancy.

5. Violation of any rule of professional ethics and professional conduct adopted by the Board.

Any disciplinary action taken shall be in accordance with the provisions of Chapter 150B of the General Statutes. The clear proceeds of any civil penalty assessed under this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.

When the Board receives a complaint, staff and legal counsel review the allegations and evidence submitted.  Once a determination has been made that an investigation should be commenced, an inquiry letter is sent to the CPA, allowing for a response to the allegations.

If you receive an inquiry letter, always respond.  All CPAs are required to participate in inquiries from the Board.  In a written response, be mindful of your tone and resist being argumentative or using unprofessional language. Provide the documentation requested, if any, in order to inform the Board and assist in their full and informed decision making.  Experienced counsel at the inquiry stage can be quite helpful in determining the appropriate path of response.  The Board is not obligated to provide counsel; however, every CPA has the right to be represented. 

After their review of your response, the staff and legal counsel may send your reply to the Complainant for further information and response.  The inquiry may end at this point if the determination is made that no violation has occurred.

If staff and legal counsel believe a violation has occurred, the Committee will be asked to review the complaint, any supporting documentation, and response(s).  Their duty is to recommend to the full Board a resolution to the complaint after weighing whether there is competent evidence to proceed.  They may recommend closing the matter, requesting additional information, or recommending that the matter continue forward down the disciplinary path.  You or your counsel will be informed of their decision.

The Committee also has the ability to offer the CPA a resolution to settle the matter.  The CPA (or their counsel) will receive the offer in the form of a consent order.  This is an informal process, and a CPA should evaluate all the facts and violations alleged, as well as the sanction offered.  Again, experienced counsel can assist with determining whether the offer of resolution proposed is reasonable or whether further due process is warranted.  A public hearing, while expensive and time consuming for the CPA, may nonetheless be necessary.