1-312. Grounds for denial, revocation or suspension of firm's registration; other administrative remedies.
1-312
1-312. Grounds for denial, revocation or suspension
of firm's registration; other administrative remedies.
(a) Except as provided in subsection
(b), the board may deny an application to register a firm, revoke or suspend a
firm's registration, censure a firm, limit the scope of practice of a firm or
impose such remedial action as it deems necessary to protect the public
interest, or both, and impose an administrative fine not exceeding
$5,000 for any one of the
following causes:
(1) Failure to meet the requirements of K.S.A. 1-308 and amendments thereto;
(2) fraud, dishonesty or deceit in obtaining a registration;
(3) revocation or suspension of a firm's right to practice
by the PCAOB or any state or federal agency;
(4) dishonesty, fraud or gross negligence in the practice of certified public
accountancy;
(5) violation of any provision of chapter 1 of the Kansas Statutes Annotated
and rules and regulations promulgated by the board except for a violation of a
rule of professional conduct;
(6) willful violation of a rule of professional conduct;
(7) violation of any order of the board;
(8) cancellation, revocation, suspension or refusal to renew the authority of
a firm to practice certified public accountancy in any other state;
(9) conviction of any felony, or of any crime an element of
which is dishonesty, deceit or fraud, under the laws of the United
States, of Kansas or of any other state, if the acts involved would have
constituted a crime under the laws of Kansas; or
(10) failure to establish timely compliance with peer review pursuant to
K.S.A. 1-501 and amendments thereto;
(b) In actions arising under peer review
for reports modified for matters relating to attest services, the board may
take such remedial action as it deems necessary to protect the public interest.
However, the board may not limit the scope of
practice of attest services of a firm or limit the scope of practice of attest
services of any permit holder under
K.S.A. 1-311, and amendments thereto,
for failure to comply
with generally accepted accounting principles, generally accepted auditing
standards and other similarly recognized authoritative technical standards
unless:
(1) The firm has received at least two modified peer review reports during 12
consecutive years relating to attest services and
the board finds that the firm has exhibited a course of conduct that
reflects a pattern of noncompliance with applicable professional standards and
practices; or
(2) the firm has failed to abide by remedial measures required by a peer
review committee or the board.
(c) Nothing in subsection (b) shall be construed to preclude the board from:
Limiting the scope of
practice of attest services of a firm or limiting the scope of practice of
attest services of a permit holder under
K.S.A. 1-311, and amendments thereto; or taking such remedial action as the
board deems necessary to protect the public interest, after
the board's review of an
adverse peer review report based on matters relating to attest services if the
board determines that the firm failed to comply with generally accepted
accounting principles, generally accepted auditing standards and other
similarly recognized authoritative technical standards.
(d) After considering AICPA standards on peer review, the board may
define, by rules and regulations, the terms "modified" and "adverse."
(e) At the time of suspension or revocation of a firm's registration, the
board may suspend or revoke the permit to practice of a member, shareholder or
partner of a firm if the permit holder is the only Kansas member, shareholder
or partner of the firm. The permit shall be reinstated upon reinstatement of
the firm's registration.
(f) All administrative proceedings pursuant to this section
shall be
conducted in accordance with the provisions of the Kansas administrative
procedure act and the act for judicial review and civil enforcement of agency
actions.
(g) The board shall not have the power to assess fines
under this section if
a fine has been assessed for the same or similar violation under the provisions
of subsection (a) of K.S.A. 1-311 and amendments thereto.
History: L. 1951, ch. 1, § 16;
L. 1981, ch. 3, § 2;
L. 1984, ch. 313, § 43;
L. 1995, ch. 152, § 6;
L. 2001, ch. 120, § 4;
L. 2007, ch. 97, § 6;
L. 2009, ch. 38, § 9; Apr. 2.