339.734 Prohibited conduct; penalties; report to department.

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Sec. 734.

(1)A holder of a certificate, registration, or license as a certified public accountant or an individual exercising the practice privilege granted under section 727a and the firm employing that individual is subject to the penalties of section 602 for 1 or more of the following:

(a)Fraud or deceit in obtaining a certificate or registration as a certified public accountant, a license to practice public accounting, or a practice privilege under this article.

(b)Dishonesty, fraud, or negligence in the practice of public accounting.

(c)Violation of a rule of professional conduct promulgated under this article.

(d)Departure from standards of professional practice applicable to the engagement, at the time of engagement.

(e)Conviction of a felony under the laws of this or another state or the United States or conviction of a crime, an element of which is dishonesty, fraud, or negligence, under the laws of this or another state or of the United States, including, but not limited to, the failure to file a personal federal, state, or local income tax return.

(f)Cancellation, revocation, suspension, or refusal to renew authority to practice as a certified public accountant by another state or any jurisdiction of the United States for a cause other than failure to pay a licensure or other required fee in that state.

(g)Suspension or revocation of the right to engage in the practice of public accounting before a state or federal agency or a public accounting oversight board.

(h)Conduct discreditable to the public accounting profession.

(i)Determination of mental incompetency by a court of law.

(j)A violation of this article or a rule promulgated under this article.

(k)A violation of the provisions of section 604.

(l)A violation of professional standards regarding the issuance of reports on financial statements; 1 or more kinds of management advisory, financial advisory, or consulting services; the preparation of tax returns; or the furnishing of advice on tax matters.

(2)Notwithstanding section 602(e), a person that violates this article or a rule or order promulgated or issued under or related to this article is liable for an administrative fine payable to the department of not more than $25,000.00 per violation.

(3)Within 30 days after a final determination rendered by a federal or state administrative agency or a judgment or conviction issued by a federal court, a state court, or any other court of record, a licensee or registrant shall report to the department in writing or electronically a determination, order, judgment, or conviction regarding a violation in which dishonesty, fraud, or negligence is an element of that determination, order, judgment, or conviction.

History: Add. 1997, Act 10 , Imd. Eff. May 16, 1997 ;-- Am. 2005, Act 278 , Imd. Eff. Dec. 19, 2005 ;-- Am. 2008, Act 161 , Imd. Eff. June 11, 2008 ;-- Am. 2010, Act 215 , Imd. Eff. Nov. 23, 2010

Popular Name: Act 299