Sec. 734.
(1) A holder of a certificate, registration, or license as a certified public accountant or an individual exercising the practice privilege granted under section 727a and the firm employing that individual is subject to the penalties of section 602 for 1 or more of the following:
(a) Fraud or deceit in obtaining a certificate or registration as a certified public accountant, a license to practice public accounting, or a practice privilege under this article.
(b) Dishonesty, fraud, or negligence in the practice of public accounting.
(c) Violation of a rule of professional conduct promulgated under this article.
(d) Departure from standards of professional practice applicable to the engagement, at the time of engagement.
(e) Conviction of a felony under the laws of this or another state or the United States or conviction of a crime, an element of which is dishonesty, fraud, or negligence, under the laws of this or another state or of the United States, including, but not limited to, the failure to file a personal federal, state, or local income tax return.
(f) Cancellation, revocation, suspension, or refusal to renew authority to practice as a certified public accountant by another state or any jurisdiction of the United States for a cause other than failure to pay a licensure or other required fee in that state.
(g) Suspension or revocation of the right to engage in the practice of public accounting before a state or federal agency or a public accounting oversight board.
(h) Conduct discreditable to the public accounting profession.
(i) Determination of mental incompetency by a court of law.
(j) A violation of this article or a rule promulgated under this article.
(k) A violation of the provisions of section 604.
(l) A violation of professional standards regarding the issuance of reports on financial statements; 1 or more kinds of management advisory, financial advisory, or consulting services; the preparation of tax returns; or the furnishing of advice on tax matters.
(2) Notwithstanding section 602(e), a person that violates this article or a rule or order promulgated or issued under or related to this article is liable for an administrative fine payable to the department of not more than $25,000.00 per violation.
(3) Within 30 days after a final determination rendered by a federal or state administrative agency or a judgment or conviction issued by a federal court, a state court, or any other court of record, a licensee or registrant shall report to the department in writing or electronically a determination, order, judgment, or conviction regarding a violation in which dishonesty, fraud, or negligence is an element of that determination, order, judgment, or conviction.
History: Add. 1997, Act 10, Imd. Eff. May 16, 1997 ;-- Am. 2005, Act 278, Imd. Eff. Dec. 19, 2005 ;-- Am. 2008, Act 161, Imd. Eff. June 11, 2008 ;-- Am. 2010, Act 215, Imd. Eff. Nov. 23, 2010 Popular Name: Act 299
Structure Michigan Compiled Laws
Chapter 339 - Occupational Code
Act 299 of 1980 - Occupational Code (339.101 - 339.2919)
Article 7 - (339.701...339.736)
Section 339.701-339.716 - Repealed. 1997, Act 10, Imd. Eff. May 16, 1997.
Section 339.720 - Definitions; Practice of Public Accounting.
Section 339.722 - Licenses, Registrations, and Certificates as Certified Public Accountant.
Section 339.724 - Conduct Not Prohibited by Article.
Section 339.727 - Use of Authorized Title; Requirements.
Section 339.729 - License Renewal; Continuing Education Requirements.
Section 339.730 - Contingent Fee.
Section 339.731 - Commission or Referral Fee.
Section 339.732 - Confidentiality; Disclosure of Information.
Section 339.734 - Prohibited Conduct; Penalties; Report to Department.
Section 339.735 - Violation as Felony; Penalty; Enforcement.