Complaint Procedures and Actions

Members of the Illinois CPA Society (ICPAS) are expected to uphold standards of ethics as set by the  American Institute of Certified Public Accountants' Code of Professional Conduct and Bylaws. When a violation occurs, they are subject to disciplinary action by ICPAS under the Joint Ethics Enforcement Program  (JEEP) Manual of Procedures.

Anyone who believes that a member of the Illinois CPA Society has committed an unethical act may file a complaint.

PLEASE NOTE: ICPAS has no jurisdiction over any CPAs other than its members. If a CPA is not a member of the Society, complainants are directed to check with the Illinois Department of Financial and Professional Regulation and the AICPA for possible action.

 

How to File an Ethics Complaint

If you believe you have a complaint that warrants an investigation, first read this page carefully.  It's important that you know what we do and don't have the authority to investigate.

The Illinois CPA Society has the authority to investigate complaints against its members only.

The Illinois CPA Society does not have the authority to:  resolve fee disputes, award damages, prosecute in a criminal action, settle claims between parties, or decide on matters involving litigation that have not been adjudicated by a court of law.

When you are ready to file a complaint, please complete the online ethics complaint form: Ethics Complaint Form

If you prefer to mail in a paper copy, please print out and send to:

Illinois CPA Society
Ethics Committee - C/O Oralia Guajardo
225 W. Randolph St., Suite 450
Chicago, IL  60606

The purpose of the ethics investigation process is to:

  1. protect the public
  2. maintain confidence in the profession, and
  3. declare and uphold ethical standards in the profession

A check is made to determine whether the person being investigated is a member of the Illinois CPA Society (ICPAS) and/or the American Institute of Certified Public Accountants (AICPA). If they are not a member of either ICPAS or AICPA, the committee cannot take action. If they are not a member of the ICPAS but are a member of the AICPA, the complaint is forwarded to the AICPA.

If the person is a member of the Society, the complaint is reviewed to see if the alleged unethical acts would, if found to be true, be a potential violation of the Ethics Code. If there could be a potential violation of the ethics code, a committee member is assigned as an investigator.

At this stage, the complainant is notified that:

  • The person complained about is not a member of either the Society or the AICPA, but that they may wish to contact the Director, Illinois Department of Financial and Professional Regulation, about the matter.
  • The person complained about is not a member of the Society but is a member of the AICPA, and the complaint has been forwarded to them.
  • The acts complained about, if true, would not be a violation of the Ethics Code.
  • The matter is being investigated and the complainant will be notified when the investigation is completed.

The investigator makes his/her investigation. The name of the complainant is not given to the person being investigated. In some cases, the very nature of the complaint may reveal who the complainant is. As an example, in the case of an alleged unethical newspaper advertisement, there is no need to reveal the name of the complainant. In the case of unethically withholding a client's records, it is usually obvious who the complainant must be.

The investigator files a written report on his/her findings with the Ethics Committee. The committee discusses the report, questions the investigator and then votes to either:

  • Close the case with a finding that there was no violation of the Ethics Code.
  • Find that there was a violation of the Ethics Code and:
    • Issue a letter of required corrective action to the member. Usually the corrective action requires the member to take certain CPE courses.
    • Refer the matter to the trial board for a hearing. A settlement agreement may be entered into in lieu of a trial board proceeding.

If the person is a member of both the Society and the AICPA, any action taken is applicable to both organizations. In these cases, the Ethics Committees of the Society and the AICPA must agree on the content of a letter of required corrective action, forwarding the matter to the trial board or the offer of a settlement agreement.

Findings of no violations or letters of required corrective action are not publicized. A conviction by a trial board or a settlement agreement affecting membership, such as a suspension or expulsion, is reported online at: ICPAS - Resolutions of Ethics Cases and/or the AICPA's online publication.

For questions regarding ICPAS or AICPA members, contact:

Oralia Guajardo, Manager, Professional Standards
312-517-7608 or 800-993-0407 (within Illinois)

For complaints regarding Illinois licensees or registrants, contact:

Illinois Department of Financial and Professional Regulation
Ethics Department
100 West Randolph, Suite 9-300
Chicago, IL 60601
312-814-4500

The Department's Chicago office handles ethics complaints and investigations only.  |  File a Complaint

The Illinois Department of Financial and Professional Regulation licenses and registers persons who have received an Illinois CPA certificate. The CPA certificate does not grant the holder the right to provide the attest function (I.e. audits and reviews) or to present oneself to the public as a provider of audits and reviews. In order to perform these functions, the CPA must obtain a license from the Illinois Department of Financial and Professional Regulations. An individual license and a firm license are required.

Effective October 1, 2006, all CPAs who are not licensed but hold themselves out to the public in Illinois in any way as a CPA must register with the Illinois Department of Financial and Professional Regulation. This would include anyone who uses the CPA designation on resumes, business cards or letterhead, or in any other manner.

If you receive a letter from the Illinois CPA Society or the AICPA Professional Ethics Division informing you that a complaint has been filed against you alleging a possible violation of the Code of Professional Conduct, the following may be helpful.

An ethics investigation is designed to gather facts and information to assist in determining whether or not there is evidence to support the allegations of violations of the Code of Professional Conduct. If there is insufficient evidence to support the allegations, the investigation will be closed.

Responding to an Ethics Investigation

Familiarize your self with the rules that are the subject of the investigation.

The JEEP Manual of Procedures describes the procedures governing an investigation. Print copies are available upon request.  The procedures describe your rights and obligations and those of the Illinois CPA Society's Ethics Committee and  AICPA in an investigation.
Provide a substantive response to each question and include any additional information that you believe is relevant to the subject matter of the investigation. Include any evidence in support of your response.
If you are uncertain of how to respond to a specific question, don't hesitate to call the case investigator for clarification.
If you are unable to respond to the letter by the requested date (generally, within thirty days of the date of the letter), call the case investigator and request an extension. Failure to respond within the required time period may constitute a failure to cooperate with the investigation and hence, a violation of the Illinois CPA Society and AICPA bylaws or Code of Professional Conduct.

Definitions of Ethics Sanctions/Disposition

ICPAS can expel or suspend a member for a period up to two years. During the suspension period, a member must not identify themselves as an ICPAS/AICPA member on any letterhead or other written material, and may not vote, or hold a committee position or an office with ICPAS. In addition, the Ethics Committee or AICPA Joint Trial Board may direct a member to complete specified continuing professional education (CPE) courses or take other actions (e.g. submit subsequent reports and/or workpapers for continued monitoring) during the suspension period.

Under the ICPAS bylaws, ICPAS can suspend a member without a hearing should there be complaint filed with the secretary of the Society and a judgement of conviction imposed upon any member for:

  • The member's certificate as a CPA or license to practice is suspended or revoked or a member is convicted of a crime punishable by imprisonment for more than one year
  • The willful failure to file any income tax return which they are required by law to file
  • The filing of a false or fraudulent income tax return
  • The willful aiding in the preparation and presentation of a false and fraudulent income tax return of a client

Membership in the Society of such a member shall be expelled upon the final judgement of conviction.

Publication of expulsions and suspensions are mandatory

The AICPA Joint Trial Board publicly admonished a member who has violated the Code of Professional Conduct but the gravity of the violation does not warrant suspension from membership.

Publication of admonishments is mandatory.

The Illinois CPA Society's Ethics Committee issued a letter of required corrective action that directed a member to complete one or more of the following: up to 80 hours (or more) of specified CPE courses, submit subsequent reports and workpapers for review, and/or submit to a pre-issuance review by an outside party of reports, financial statements, and working papers on selected engagements. The Illinois CPA Society's Ethics Committee issues letters of required corrective action when it concludes that remedial action is appropriate and the violation is not of sufficient gravity to warrant suspension or expulsion from membership. The ICPAS does not publish the terms of the letter of required corrective action.

The Illinois CPA Society's Ethics Committee completed the investigation and found no prima facie evidence of a violation of the Code of Professional Conduct.

The ethics committee dismissed a case as no provision of the Code of Professional Conduct applies to the complaint or the allegations in the complaint do not constitute a Code violation

The Illinois CPA Society's Ethics Committee closed the investigation because it could not obtain sufficient evidence that a prima facie violation of the Code of Professional Conduct had or had not occurred or because the disciplining of a member by a state board of accountancy was deemed sufficient.
The Illinois CPA Society's Ethics Committee accepted the work product that members were required to submit based on the prior disciplinary matter.
Mainly comprised of cases referred by the AICPA to the Illinois CPA Society for investigation as set forth in the agreement between the AICPA and the Illinois CPA Society.