Arizona State Board of Accountancy

The report addresses how the Board handles complaints filed against Certified Public Accountants (CPAs), Public Accountants (PAs), and registered public accounting firms. Many of the complaints filed with the Board take a considerable amount of time to resolve. While 180 days for complaint resolution is a reasonable standard for occupational regulatory boards, only about half of the complaints received in fiscal year 1998 were resolved within that time. These lengthy processing times are caused by many factors, including registrants’ legal tactics, investigative hurdles, and administrative practices in referring complaints to the Board for final resolution. Because the causes are so varied, more study is needed to determine what might be done to speed up the process.

Additionally, because of statutory limitations and certain Board staff practices, the public lacks access to information about registrants that it needs to make informed decisions. Statutes currently limit information that can be disclosed about complaints regarding registrants that resulted in informal disciplinary action. Further, the public cannot find out whether complaints were filed but dismissed, or whether the Board took less formal action, such as issuing a letter of concern. Consumers’ ready access to information is also limited by problems in navigating the Board’s automated telephone system and obtaining access to registrants’ files.

Finally, the Board’s Quality Review Program (Program) needs to be reexamined. As currently implemented, the Program has limited effect in that it mostly identifies minor technical deficiencies and encompasses only a limited number of registrants. Additionally, it is duplicative for some registrants who already face a similar requirement for peer review. Therefore, the Board should consider either reorienting the Program toward a peer review approach or, given its current limitations, eliminating it altogether.