Kansas Statutes 1-312. Grounds for denial, revocation or suspension of firm’s registration; other administrative remedies
Terms Used In Kansas Statutes 1-312
- AICPA: means the American institute of certified public accountants. See Kansas Statutes 1-321
- Attest: means providing the following services:
(1) Any audit or other engagement to be performed in accordance with the statements on auditing standards (SAS);
(2) any audit to be performed in accordance with the Kansas municipal audit guide;
(3) any review of a financial statement to be performed in accordance with the statements on standards for accounting and review services (SSARS);
(4) any engagement, except a compilation, to be performed in accordance with the statements on standards for attestation engagements (SSAE); and
(5) any engagement to be performed in accordance with the standards of the PCAOB. See Kansas Statutes 1-321
- Board: means the Kansas board of accountancy established under Kan. See Kansas Statutes 1-321
- Conviction: A judgement of guilt against a criminal defendant.
- Firm: means :
(1) An individual who operates as a sole practitioner and who issues reports subject to peer review; or
(2) any business organization including, but not limited to, a general partnership, limited liability partnership, general corporation, professional corporation or limited liability company. See Kansas Statutes 1-321
- Fraud: Intentional deception resulting in injury to another.
- Member: means a member of a limited liability company. See Kansas Statutes 1-321
- PCAOB: means the public company accounting oversight board created by the Sarbanes-Oxley act of 2002. See Kansas Statutes 1-321
- Practice of certified public accountancy: means performing or offering to perform attest or nonattest services for the public while using the designation "certified public accountant" or CPA in conjunction with such services. See Kansas Statutes 1-321
- Professional: means arising out of or related to the specialized knowledge or skills associated with CPAs. See Kansas Statutes 1-321
- Report: when used with reference to any attest or compilation service, means an opinion, report or other form of language that states or implies assurance as to the reliability of the attested information or compiled financial statements and that also includes or is accompanied by any statement or implication that the person or firm issuing it has special knowledge or competence in accounting or auditing. See Kansas Statutes 1-321
- Rule: means any rule or regulation adopted by the board. See Kansas Statutes 1-321
- State: means any state of the United States, the District of Columbia, Puerto Rico, the U. See Kansas Statutes 1-321
(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 Kan. Stat. Ann. § 1-308, and amendments thereto;
(2) fraud, dishonesty or deceit in obtaining a registration;
(3) sanction, censure, disciplinary action or 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 ofchapter 1 of the Kansas Statutes Annotated, and amendments thereto, 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 Kan. Stat. Ann. § 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 Kan. Stat. Ann. § 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 Kan. Stat. Ann. § 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 Kansas judicial review act.
(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 Kan. Stat. Ann. § 1-311(a), and amendments thereto.