Have you ever wondered what you would do if someone filed a complaint against your CPA license? You may be interested to know that in the period October 1, 2007 through September 30, 2008, the Bureau received 81 complaints against CPAs. In relation to the total number of complaints the Bureau received for the 31 different professions and occupations it regulates, 2.6% were filed against CPAs.

The state’s enforcement staff is responsible for the investigation and prosecution of consumer complaints filed against CPAs. Pursuant to MCL 339.501a(b) of PA 299 of 1980, as amended, the person who files a complaint is referred to as the “Complainant” and the person against whom a complaint has been filed, is referred to as the “Respondent.” The Department begins the complaint process by opening a file and reviewing the allegations. It provides the Complainant with a written acknowledgement of the complaint within 15 days.

If the state’s investigative report does not disclose a violation of PA 299 of 1980, as amended, the administrative rules of the Board of Accountancy, or an Order issued under PA 299 of 1980, the Department will close the complaint. The reasons for closing the complaint will be communicated to the Complainant and the Respondent. This may be the end of the complaint process for many; however, if the state’s investigative report discloses evidence of a violation, the Department or the Attorney General may file a formal complaint.

Upon receiving a formal complaint, the Respondent will be notified of the opportunity to meet with the Department to either demonstrate compliance, negotiate a settlement, or proceed to a contested case hearing. The Respondent has 15 days upon receipt of the formal complaint to choose one of the aforementioned options. Should the Respondent fail to choose one of the listed options within the time period specified, the Department will proceed to a contested case hearing.

At all stages of the complaint process, it is important to understand your options and communicate effectively with the Department’s staff regarding a complaint that is filed against you. As previously indicated, the Respondent may meet with the department and provide evidence of compliance. Enforcement staff will then review the information and communicate whether or not the Respondent has a showing of compliance. If the Respondent is unable to show compliance, he or she may choose to enter into a settlement agreement during a conference. A member of the Board of Accountancy may be present at the conference and any agreement will ultimately be forwarded to the Board of Accountancy for acceptance. If the Board rejects the stipulated agreement, the complaint will proceed to a contested case hearing.

The last stage of the administrative complaint process is a contested case hearing. If a contested case hearing is conducted, an administrative law judge will be appointed to hear the case. The administrative law judge will submit his or her findings of fact and conclusion of law in a “hearing report.” As the Respondent, you will receive a copy of the hearing report. The Board of Accountancy, at its board meeting, will accept the hearing report and review the findings of fact and conclusion of law. It will determine the appropriate sanctions should the report indicate violations of PA 299 of 1980, as amended, and/or the Board’s administrative rules.

It is important to note that if the complaint involves professional standards of practice under Article 7 of PA 299 of 1980, as amended, a majority of the members of the Board of Accountancy who have not participated in the investigation, or have not attended the conference, shall sit to make findings of fact in relation to the complaint.
Lastly, the Department may receive a complaint and decide that immediate action is warranted. It has the authority to issue a notice summary suspension on belief that an imminent threat to the public health, safety or welfare exists. A summary suspension notice is an order immediately suspending a license. In this case, a licensee may petition the Department to dissolve the order and a public hearing would be scheduled to decide whether to grant or deny the requested relief from suspension.

Although the entire complaint process may be drawn out, it is well worth understanding your options during each stage of the process in order to effectively settle the matter. For more information, visit the State Board’s website. Look for the quick link “Articles 1-6” on the right side of the screen and review Article 5.

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