Practice Privilege Reporting Requirements
An out-of-state licensed CPA must submit a Pre-Notification Form to the CBA and obtain approval prior to practicing public accountancy in California if any of the following events occurred within the previous seven years:
- The individual was the subject of any final disciplinary action by the licensing or disciplinary authority of another jurisdiction with respect to any professional license or has any charges of professional misconduct pending against them in another jurisdiction.
- The individual had a license in another jurisdiction reinstated after a suspension or revocation.
- The individual was denied issuance or renewal of a professional license or certificate in any other jurisdiction for any reason other than an inadvertent administrative error.
- The individual was convicted of a crime or subjected to pending criminal charges in another jurisdiction other than a minor traffic violation. A minor traffic violation is any traffic infractions under $1000 not involving alcohol, dangerous drugs, or controlled substances.
- The individual's license, permit, registration, certificate, or other authority to practice any profession in this or any other state or foreign country or to practice before any state, federal, or local court or agency, or the Public Company Accounting Oversight Board was revoked, suspended, denied, surrendered, disciplined, or sanctioned.
- The individual acquired any judgment or arbitration award involving professional conduct in the amount of $30,000 or greater.
Notification of Pending Criminal Charges
An out-of-state licensed CPA who is exercising a practice privilege in California must report to the CBA any pending criminal charges, other than for a minor traffic violation, in any jurisdiction within 30 days from the date the individual has knowledge of those charges by completing the Practice Privilege Notification of Pending Criminal Charges Form.
An out-of-state licensed CPA must cease practicing public accountancy in California for any of the following reasons and report it to the CBA on a Cessation of Practice Privilege Form:
- The individual is convicted in any jurisdiction of any crime involving dishonesty, including, but not limited to, embezzlement, theft, misappropriation of funds or property, or obtaining money, property, or other valuable consideration by fraudulent means or false pretenses. All misdemeanors, felonies, infractions or citations must be reported.
- The individual is barred from practicing before the United States Securities and Exchange Commission or the Public Company Accounting Oversight Board. The individual's right to practice before any government body or agency becomes suspended.
- If the individual's certificate, license, or permit has disciplinary action taken against it by the issuing regulatory agency, resulting in its suspension, revocation, a stayed suspension, stayed revocation, or probation; or any other disciplinary action against the individual's certificate, license, or permit that arises from any of the following reasons:
- Gross negligence, recklessness, or intentional wrongdoing relating to the practice of public accountancy
- Fraud or misappropriation of funds
- Preparation, publication, or dissemination of false, fraudulent, or materially incomplete or misleading financial statements, reports, or information
The California Board of Accountancy (CBA) may revoke an out-of-state licensed CPA's privilege to practice in California for any of the following reasons:
- The individual no longer qualifies under, or complies with, the provisions of practice privilege.
- The individual commits any act that if committed by an applicant for California CPA licensure would be grounds for denial of license under Business and Professions Code section 480.
- The individual commits any act that if committed by a California-licensed CPA would be grounds for discipline under Business and Professions Code section 5100.
- The individual commits any act outside of California that would be a violation if committed within this State.
- The individual is convicted of any crime other than a minor traffic violation.
- The individual has a license, permit, registration, certificate, or other authority to practice any profession in California or any other state or foreign country, or to practice before any state, federal, or local court or agency, or the Public Company Accounting Oversight Board revoked, suspended, denied, surrendered, or otherwise disciplined or sanctioned.
- The individual has a judgment or arbitration award against him/her involving the professional conduct of the individual in the amount of $30,000 or greater.