Ala. Admin. Code r. 30-X-7-.16 - Reporting Convictions, Judgements, And Administrative Proceeding

(1) Licensee shall notify the Board, on a form and in the manner prescribed by the Board, within thirty (30) days of:

(a) Receipt of a peer review report or a Public Company Accounting Oversight Board (PCAOB) firm inspection report containing criticisms of or identifying potential defects in the quality control systems.

(b) Receipt of a second consecutive peer review report that is deficient or

(c) Imposition upon the licensee of discipline, including, but not limited to, censure, reprimand, sanction, probation, civil penalty, fine, consent decree or order, suspension, revocation, or modification of a license, certificate, permit or practice rights by:

1. the Securities and Exchange Commission (SEC), PCAOB, Internal Revenue Service (IRS) (actions by the Director of Practice); or

2. another state board of accountancy for any cause other than failure to pay a professional license fee by the due date or failure to meet the continuing professional education requirements of another state board of accountancy; or

3. any other federal or state agency regarding the licensee's conduct while rendering professional services; or

4. any foreign authority or credentialing body that regulates the practice of accountancy.

(d) Occurrence of any matter reportable that must be reported by the licensee to the PCAOB pursuant to Sarbanes-Oxley Section 102(b)(2)(f) and PCAOB Rules and forms adopted pursuant thereto;

(e) Notice of disciplinary charges filed by the SEC, PCAOB, IRS, or another state board of accountancy, or a federal or state taxing, insurance or securities regulatory authority, or foreign authority or credentialing body that regulates the practice of accountancy;

(f) Any judgement, award or settlement of a civil action or arbitration proceeding of $150,000 or more in which the licensee was a party if the matter included allegations of gross negligence, violation of specific standards of practice, fraud, or misappropriation of funds in the practice of accounting; provided, however, licensed firms shall only notify the Board regarding civil judgments, settlements or arbitration awards directly involving the firm's practice of public accounting in this state; or

(g) Criminal charges, deferred prosecution or conviction or plea of no contest to which the licensee is a defendant if the crime is:

1. any felony under the laws of the United States or of any state of the United States or any foreign jurisdiction; or

2. a misdemeanor if an essential element of the offense is dishonesty, deceit, or fraud.

(2) The resident manager shall report any matter reportable under this rule to which a non-licensee owner with a principal place of business in this state is a party.

(3) Reports of pending matters or reports of private litigation resolved by settlement or arbitration shall be deemed confidential records not subject to public disclosure (to the extent permitted by this State's law on Public Records) unless and until the pending matters are concluded or the Board commences a contested case proceeding based upon the subject matter of such reports.

(4) During the pendency of a reported matter, the reporting licensee may submit a written explanatory statement to be included in the licensee's record. If reported charges or allegations are subsequently concluded in the licensee's favor or otherwise closed without disciplinary action by this Board, upon the reporting licensee's request, documents received pursuant to said report shall be expunged from the Board's records.

Notes

Ala. Admin. Code r. 30-X-7-.16

Adopted by Alabama Administrative Monthly Volume XXXV, Issue No. 02, November 30, 2016, eff. 1/1/2017.

Author: Alabama Board of Public Accountancy

Statutory Authority: Code of Ala. 1975, § 34-1 -12.