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Certified Public Accountants in California facing professional misconduct allegations, license suspensions, or enforcement proceedings need experienced legal counsel who understands both the California Accountancy Act and the procedural complexities of administrative proceedings before the California Board of Accountancy (CBA). These proceedings can threaten a CPA's ability to practice their profession and earn a living, making effective legal defense essential to protecting professional licenses and reputations. Law Offices of Alan Abergel, P.C. ("LOAA") provides comprehensive administrative enforcement defense services to CBA licensees and unlicensed individuals and companies facing allegations of unauthorized practice or other violations.
The firm represents California licensed CPAs defending against professional misconduct allegations and unlicensed persons or entities investigated for practicing public accountancy without required licensure. This dual focus allows LOAA to provide sophisticated defense across the full spectrum of CBA enforcement matters while also advising businesses on whether their operations require CPA licensure under California law.
The mission of the California Board of Accountancy is to protect consumers by ensuring only qualified licensees practice public accountancy in accordance with established professional standards. The CBA derives its authority from Business and Professions Code, Division 3, Chapter 1, Article 1 through Article 10 (Accountancy Act) and Title 16 California Code of Regulations, Division 1, Article 1 through Article 13 (CBA Regulations). Understanding the Board's mission, statutory authority, and regulatory framework is essential to developing effective defense strategies.
From its inception in 1901, the CBA has, by statute, been charged with regulating the practice of accountancy. The original law prohibited anyone from falsely claiming to be a certified public accountant, a mandate which exists today. By authority of the California Accountancy Act, the CBA ensures that only candidates who meet certain qualifications are allowed to take the national Uniform Certified Public Accountant Examination, certifies, licenses, and renews licenses of individual CPAs and Public Accountants (PA), registers accountancy partnerships and accountancy corporations, takes disciplinary action against licensees for violation of the Accountancy Act and CBA Regulations, monitors compliance with continuing education and peer review requirements, and reviews work products of CPAs, PAs, and accountancy firms to ensure adherence to professional standards.
The CBA regulates the practice of public accountancy in the State of California and may revoke, suspend, or refuse to renew any permit or certificate for violation of applicable statutes or regulations. The CBA, through its Enforcement Division, assisted by its statutorily established Enforcement Advisory Committee (EAC), receives and investigates complaints; initiates and conducts investigations or hearings, with or without the filing of a complaint; and obtains information and evidence relating to any matter involving the conduct of CPAs, PAs, and accountancy firms.
The California Accountancy Act and the CBA Regulations provide the basis for CBA enforcement action. The expiration, cancellation, forfeiture, or suspension of a license, practice privilege, or other authority to practice public accountancy in California, or the voluntary surrender of a license by a licensee does not deprive the CBA of the authority to proceed with an investigation, action, or disciplinary proceeding against the licensee or to render a decision suspending or revoking the license. This continuing authority means licensees cannot escape enforcement by surrendering licenses after violations occur.
The CBA receives complaints from consumers, professional societies, law enforcement agencies, and other governmental agencies. The CBA generates a large volume of internal referrals from the Licensing Division, CBA Committees, and within the Enforcement Division itself. Enforcement Division staff also regularly monitor news and social media for information regarding licensees or unlicensed practice that may suggest violations of the California Accountancy Act or CBA Regulations.
Common complaints and referrals received and reviewed by the CBA include negligence and incompetence in performing accounting services, fraud, deceit, and misrepresentation in the practice of public accountancy, failing to perform services in accordance with professional standards including auditing standards and GAAP, criminal convictions involving fraud, dishonesty, or other crimes bearing on fitness to practice, administrative actions by other governmental agencies including the Securities and Exchange Commission (SEC), Public Company Accounting Oversight Board (PCAOB), Internal Revenue Service (IRS), and California Franchise Tax Board (FTB), and administrative violations for failing to comply with license renewal requirements and unlicensed practice.
LOAA provides representation in defense of California licensed CPAs and unlicensed entities in administrative hearings and proceedings, including investigations, Accusations, denials, and Citations. The firm defends CPAs against all types of enforcement allegations, presenting evidence of compliance with professional standards, challenging factual bases for violations, demonstrating good faith professional judgment, and negotiating reasonable resolutions when violations did occur.
CBA enforcement typically begins with investigations following receipt of complaints or identification of potential violations. During investigations, the Board requests documentation, interviews CPAs and clients, reviews work product, and analyzes whether violations occurred. LOAA assists CPAs in responding to CBA investigations, preparing comprehensive written responses, organizing supporting documentation, preparing clients for investigator interviews, and addressing preliminary findings before formal proceedings are initiated.
When investigations substantiate violations, CBA may issue Citations for less serious violations, imposing fines and requiring corrective actions, or file Accusations seeking license suspension or revocation for serious violations. Accusations are formal charging documents alleging specific violations and proposing discipline. These proceedings are adjudicated by administrative law judges at the Office of Administrative Hearings, with final decisions made by the CBA.
Administrative hearings follow formal procedural rules including discovery, pre-hearing motions, evidentiary hearings with witness testimony, and post-hearing briefing. LOAA represents CPAs throughout these proceedings.
CBA enforcement cases often turn on technical accounting and auditing issues requiring expert testimony. When allegations involve failure to follow professional standards, expert witnesses can testify regarding what standards required, whether the CPA's conduct met standards, and whether any departures were reasonable under the circumstances. LOAA works with qualified expert witnesses retained by the CPA who can provide credible testimony supporting CPAs' defenses in technical professional matters.
CPAs may face concurrent enforcement from multiple regulatory agencies. LOAA provides representation in investigations, subpoenas, and administrative hearings and proceedings by CBA, the California Department of Consumer Affairs, the California Office of the Attorney General, PCAOB, FINRA, and the SEC. Coordinating responses across multiple agencies requires strategic planning to ensure consistency, protect against statements in one proceeding being used in others, and manage different procedural timelines and requirements.
PCAOB enforcement involves CPAs and accounting firms that audit public companies. PCAOB investigations examine audit quality, independence, and compliance with auditing standards. SEC enforcement may involve CPAs who prepare financial statements for public companies or participate in securities fraud. FINRA matters arise when CPAs serve securities firms or face allegations related to broker-dealer auditing or compliance. The firm coordinates multi-agency defense strategies, providing unified legal representation across all proceedings.
LOAA provides representation in appeals of administrative proceedings to the Superior Court through writ of mandamus proceedings or in appeals to the California Court of Appeal. When CBA imposes discipline after administrative hearings, CPAs can seek judicial review challenging the Board's decisions. Writ of mandate proceedings in superior court examine whether decisions violated statutory or constitutional rights, exceeded agency authority, employed improper procedures, or lacked substantial evidence support.
The CBA enforces against unlicensed practice of public accountancy. LOAA represents unlicensed persons or entities investigated for practicing public accountancy without required licensure. These cases require careful analysis of what services were provided, how individuals or entities held themselves out, whether services constitute "public accountancy" under California law, and whether any exemptions apply. The firm defends against unauthorized practice allegations.
Legal Opinions: LOAA provides legal opinions to individuals and businesses that need a legal analysis of whether their activities require a California financial regulation license and which one and under which classification. These opinions involve a detailed examination of the services provided, the compensation structure, the relationship between the service provider and the customer, and the specific statutory definitions and exemptions. A well-reasoned legal opinion provides the client with a documented basis for its compliance position and can serve as evidence of good faith in the event of a future California agency regulatory inquiry about whether the client's activities constitute unlicensed practice.
Disclaimer: The information on this page is provided for general informational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content. Every legal matter is unique, and you should consult directly with a qualified attorney regarding your specific circumstances.
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-Petroleum Realty Group Inc.
"I hired Alan to represent me as a mortgage broker before the California Department of Real Estate. I couldn't be more pleased with Alan's services from start to finish. Alan was clear and concise. Alan's communication throughout the process was professional. I received the results I hoped for. Thank you Alan. I'll definitely recommend you to ALL and use your services again in the future shall I need anything!"
-Anonymous
"Very helpful in assisting in obtaining an OCCC Texas Motor Vehicle Sales Finance License. Very knowledgeable in answering all questions the OCCC asked for on their questionnaire. Highly recommended and would re-hire for any future assistance regarding motor vehicle and finance business. God Bless!"
-Raul
