New Hampshire Code of Administrative Rules Ac - Board of Accountancy
Overview: What “Ac” Rules Are
The Ac rules are administrative regulations adopted by the New Hampshire Board of Accountancy.
They govern:
Licensing and renewal of CPAs and public accountants
Professional conduct and ethics
Continuing professional education (CPE)
Discipline and enforcement
The goal is to protect the public by ensuring accountants are competent, ethical, and accountable.
Case 1: CPA License Renewal Without Required CPE
Situation
A CPA applies to renew their New Hampshire license but has only completed 80 CPE hours instead of the required 120 hours over three years, and is missing ethics training.
Relevant Ac Rules
CPAs must complete a minimum number of CPE hours
Ethics education is mandatory
Records must be maintained and provided upon request
Board Analysis
Failure to meet CPE requirements is a regulatory violation
Claiming ignorance or workload pressure is not an acceptable defense
The public relies on CPAs to remain professionally current
Outcome
The Board may:
Deny or delay license renewal
Require additional CPE
Impose a fine or disciplinary letter
Place the CPA on probation
Purpose of the Rule
Ensures CPAs remain technically competent and ethically aware.
Case 2: Practicing Public Accounting Without an Active License
Situation
An individual whose CPA license expired continues to:
Prepare audited financial statements
Use the “CPA” title on letterhead and email
Relevant Ac Rules
Only actively licensed individuals may practice public accounting
Use of the CPA title without authorization is prohibited
Board Analysis
This is considered unauthorized practice
The public may be misled into believing the individual is properly regulated
Harm may occur even if the work is technically correct
Outcome
The Board may:
Issue a cease-and-desist order
Impose significant monetary penalties
Require reapplication and additional oversight
Refer the matter for further legal action
Purpose of the Rule
Protects public trust and prevents misrepresentation.
Case 3: Lack of Independence in an Audit Engagement
Situation
A CPA audits a company in which:
Their spouse owns shares
They also provide bookkeeping services to the same client
Relevant Ac Rules
CPAs must maintain independence in fact and appearance
Certain financial and business relationships are prohibited
Board Analysis
Independence is compromised regardless of intent
Disclosure alone does not cure the violation
Audit credibility is undermined
Outcome
The Board may:
Require withdrawal from the engagement
Issue disciplinary sanctions
Mandate ethics retraining
Publicly reprimand the CPA
Purpose of the Rule
Ensures audits are objective and reliable.
Case 4: Breach of Client Confidentiality
Situation
A CPA discusses a client’s financial difficulties at a social event, revealing:
Revenue problems
Pending tax issues
Identifiable business details
Relevant Ac Rules
CPAs must maintain client confidentiality
Information may only be disclosed with consent or legal obligation
Board Analysis
Confidentiality applies even in casual conversations
Harm can occur without financial loss
Professional trust is central to the accountant-client relationship
Outcome
The Board may:
Issue formal discipline
Require ethics education
Impose fines
Suspend the license for repeated violations
Purpose of the Rule
Protects sensitive information and client trust.
Case 5: Fraudulent or Misleading Financial Statements
Situation
A CPA knowingly:
Overstates assets
Ignores clear evidence of misstatements
Signs off on misleading financial reports
Relevant Ac Rules
CPAs must act with integrity and objectivity
Fraud or dishonesty is grounds for severe discipline
Board Analysis
Intentional misconduct is among the most serious violations
Public and third parties rely on CPA assurance
Professional judgment must not be compromised
Outcome
The Board may:
Revoke the CPA license
Impose permanent or long-term suspension
Refer the matter for civil or criminal action
Purpose of the Rule
Protects the public and financial system from deception.
Case 6: Failure to Cooperate With a Board Investigation
Situation
A CPA:
Ignores Board correspondence
Fails to provide requested documents
Misses scheduled hearings
Relevant Ac Rules
Licensees must cooperate fully with Board investigations
Non-cooperation is itself a violation
Board Analysis
Regulatory oversight depends on cooperation
Silence or delay obstructs enforcement
The Board does not need to prove the underlying complaint to discipline for non-cooperation
Outcome
The Board may:
Suspend the license immediately
Escalate penalties
Proceed with default disciplinary action
Purpose of the Rule
Ensures effective regulation and accountability.
Key Takeaways
Ac rules are preventive and protective, not just punitive
Violations can occur through negligence, ignorance, or intent
Professional responsibility extends beyond technical accounting skills
The Board prioritizes public confidence, transparency, and ethics
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