Academic journal article Journal of Accountancy

Official Releases: Revisions to Bylaws and Council Resolutions ... SSTS Interpretation

Academic journal article Journal of Accountancy

Official Releases: Revisions to Bylaws and Council Resolutions ... SSTS Interpretation

Article excerpt

Revisions to Bylaws and Council Resolutions

At its spring 2003 meeting, the Council of the American Institute of Certified Public Accountants authorized a member referendum with respect to changes to the bylaws to enhance the AICPA's ethics enforcement process. Council also approved revisions to the implementing resolutions that would be required as a result of the proposed bylaw changes. A two-thirds affirmative vote of all those voting was required to pass any proposal. The proposals in the referendum passed by overwhelming margins and, having been approved by the membership, became effective October 18, 2003.

The first proposal approved by the members broadens and extends the AICPA's current authority to sanction "automatically" members without an investigation. It allows the AICPA to sanction a member automatically if a regulatory authority that has been approved by the Professional Ethics Executive Committee (PEEC) and the Board of Directors has taken disciplinary action against the member. To ensure due process, both the member and the PEEC can appeal the automatic sanction to the Joint Trial Board.

The second proposal approved by the members enhances the transparency of the AICPA's disciplinary findings, The change allows the PEEC to provide for more relevant disclosures about the matters it has investigated, including disclosure of the results of an investigation to a complainant. (1)

|New language is underlined; deletions are struck through.]

BYLAWS

BYLAW 7.3: Disciplinary Action Suspension and Termination of Membership Without a Hearing [BL Section 730]

.01 Membership in the Institute shall be suspended or terminated without a hearing for disciplinary purposes, or a member may be subjected to other disciplinary actions, as provided in sections 7.3.1 and 7.3.2, under such conditions and by such procedure as shall be prescribed by the Council

7.3.2 Suspension or Revocation of Certificate Other Disciplinary Action

7.3.2.1 Membership in the Institute shall be suspended without a heating should a member's certificate as a certified public accountant or license or permit to practice as such or to practice public accounting be suspended as a disciplinary measure by any governmental authority; but, ; however, such suspension of membership shall terminate upon reinstatement of the certificate, license or permit, or such m Membership in the Institute shall be terminated without a hearing should such certificate, license, or permit be revoked, withdrawn, surrendered, indefinitely suspended, or cancelled as a disciplinary measure or in connection therewith by any governmental authority.

7.3.2.2 The professional ethics executive committee and the Board of Directors may jointly approve certain governmental agencies and other organizations whose disciplinary actions against a member will permit the Institute to take disciplinary action against that member without a hearing. To be eligible for approval. the governmental agency must be one which has the authority to prohibit a member from either practicing before it or serving as a director officer or trustee of an entity. To be eligible for approval, an organization other than a governmental agency must be one which has been granted the authority by statute or regulation to regulate accountants. If such approved governmental agency or organization temporarily suspends, prohibits or restricts a member from practicing before it or another governmental agency, or from serving as a director officer or trustee of any entity, the member's membership in the Institute shall be suspended; however. …

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