Legal Proceedings Against a CPA

Grounds for proceedings against a Certified Public Accountant. Any of the following shall be sufficient ground for proceeding against a Certified Public Accountant:

  • Conviction by a court of competent jurisdiction of any criminal offense involving moral turpitude;
  • Immoral or dishonorable conduct;
  • Insanity;
  • Fraud in the acquisition of the certificate of registration;
  • Gross negligence or incompetence in the practice of his profession;
  • Addiction to alcoholic beverages or to any habit-forming drugs rendering him incompetent to practice his profession;
  • False or extravagant or unethical advertisement wherein other things than his name, profession, limitation of practice, office and home address are mentioned;
  • Issuing an accountant’s certificate covering the examination of the client’s accounts without observing the necessary auditing standards;
  • Aiding or acting as a dummy of an unqualified or unregistered person to practice accountancy;
  • Violation of any provision of this Decree and the rules and regulations promulgated thereunder;
  • Conduct discreditable to the accounting profession.
Administrative Investigation. Within five days after the filing of written charges under oaths, respondent Certified Public Accountant shall be furnished a copy thereof requiring him to answer the same. The administrative investigation shall be conducted by the Board of Accountancy or any of its members as may be designated by the Chairman, or may be conducted by a legal or hearing officer of the Professional Regulation Commission: Provided, however, That the decision shall be promulgated by a majority of the members of the Board.

The rules and regulations promulgated by the Professional Regulation Commission pursuant to its rule-making power shall govern the procedure and conduct of administrative investigation before the Board.

Criminal Offenses. Any person who shall by himself or in cooperation with another defeat, deceive, or obstruct any person in the matter of his right of examination by the Board of Accountancy, or who shall falsely rate, grade, estimate, or report upon the examination or standing of any person examined by the Board of Accountancy, or shall aid in so doing, or shall make any false representation relative thereto or concerning the person or persons examined or who shall use or furnish any special or secret information for the purpose of improving or injuring the prospects or chances of any person so examined or to be examined or receiving a certificate, shall for each offense be punished with a fine not exceeding five thousand pesos, or by imprisonment for a period not exceeding two years or both.

Any person who shall knowingly make any material false statement in his application for examination, or who shall connive at any false statement made in any certificate which may accompany his application, or who shall make any material false statement in any certificate to accompany the application for examination of any person, or who shall impersonate any other person or permit or aid in any manner other persons to impersonate him in connection with any examination or application for examination, or who shall falsely make or forge any certificate in connection with his application, or who shall commit or attempt to commit any fraud, or violate in any manner the provisions of this Decree or any regulations promulgated under the provisions hereof, or aid in so doing, shall be subject to the same penalty as in the preceding paragraph provided. Any person who represents himself to the public as having received a certificate as provided in this Decree, or shall assume to practice as title Certified Public Accountant or use the abbreviated “C.P.A.” or any similar words or letters to indicate that the person using the same is a Certified Public Accountant, without having received such certified public accountant certificate or having received such certificate, has been thereafter deprived of the use of the same by temporary suspension or revocation shall be punished with a fine in a sum not exceeding five thousand pesos or by imprisonment for a period not exceeding two years, or both, at the discretion of the Court, for each such offense, and each day that such person shall so practice or hold himself out as a certified public accountant shall be deemed a separate offense.


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