The Role of United States Boards of Accountancy in Monitoring and Sanctioning CPA Misbehavior

46 Pages Posted: 30 Apr 2024 Last revised: 30 Oct 2024

See all articles by Lindsay M. Andiola

Lindsay M. Andiola

Virginia Commonwealth University (VCU) - Department of Accounting

Bowe Hansen

Virginia Commonwealth University

Karry Kwon

affiliation not provided to SSRN

J. Matthew Sarji

Georgia Southern University

Date Written: October 30, 2024

Abstract

We investigate variation in the attributes of United States (U.S.) Boards of Accountancy across thirty-three states from 2015-2018, and how this variation relates to their monitoring and sanctioning activities. We find that state boards vary substantially along several dimensions including the independence and expertise of board members, the gender and racial diversity of the board, the frequency of board meetings, the board’s licensing and continuing professional education (CPE) requirements, and the board’s budget. In addition, we find that these variations are significantly related to the types of disciplinary cases state boards report and the sanctions they impose. Our results provide insights into factors that affect the ability of the accounting profession to effectively self-regulate and that increase the risk of inconsistent monitoring of Certified Public Accountants (CPAs) across states.

Keywords: State boards of accountancy; Professional licensure; Self-regulation; Misconduct; Disciplinary cases; Sanctions, Professional licensure, Self-regulation, Misconduct, Disciplinary cases, Sanctions

JEL Classification: D71, D73, M42, M48

Suggested Citation

Andiola, Lindsay M. and Hansen, Thomas Bowe and Kwon, Kyungeun (Karry) and Sarji, J. Matthew, The Role of United States Boards of Accountancy in Monitoring and Sanctioning CPA Misbehavior (October 30, 2024). Available at SSRN: https://ssrn.com/abstract=4810875 or http://dx.doi.org/10.2139/ssrn.4810875

Lindsay M. Andiola

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States

Thomas Bowe Hansen

Virginia Commonwealth University ( email )

Richmond, VA 23284
United States

Kyungeun (Karry) Kwon

affiliation not provided to SSRN

J. Matthew Sarji (Contact Author)

Georgia Southern University ( email )

Statesboro, GA
United States

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