K.S.A. 1-312
1-312. Grounds for
revocation or suspension of partnerships, professional corporations. (a)
Except as provided in subsection (b), the board may deny an application to
register a firm, revoke or suspend a firm’s registration, censure a firm, limit
the scope of practice of a firm or impose such remedial action as it deems
necessary to protect the public interest, or both, and impose an administrative
fine not exceeding $2,000 for any one or any combination of the following
causes:
(1)Failure to meet the
requirements of K.S.A. 1-308 and amendments thereto;
(2) fraud,
dishonesty or deceit in obtaining a registration;
(3) revocation
or suspension of a firm’s right to practice by the PCAOB or any state or
federal agency;
(4) dishonesty,
fraud or gross negligence in the practice of certified public accountancy;
(5) violation
of any provision of chapter 1 of the Kansas Statutes Annotated and rules and
regulations promulgated by the board except for a violation of a rule of
professional conduct;
(6) willful
violation of a rule of professional conduct;
(7) violation
of any order of the board;
(8) cancellation,
revocation, suspension or refusal to renew the authority of a firm to practice
certified public accountancy in any other state;
(9) conviction of any felony, or
of any crime an element of which is dishonesty, deceit or fraud, under the laws
of the United States, of Kansas or of any other state, if the acts involved
would have constituted a crime under the laws of Kansas; or
(10) failure
to establish timely compliance with peer review pursuant to K.S.A. 1-501 and
amendments thereto;
(b) In actions arising under
peer review for reports modified for matters relating to attest services, the
board may take such remedial action as it deems necessary to protect the public
interest. However, the board may not
limit the scope of practice of attest services of a firm or limit the scope of
practice of attest services of any permit holder under K.S.A. 1-311, and
amendments thereto, for failure to timely comply with generally accepted
accounting principles, generally accepted auditing standards and other
similarly recognized authoritative technical standards unless:
(1) The firm has received at
least two modified peer review reports during 12 consecutive years relating to
attest services and the board finds that the firm has exhibited a course of
conduct that reflects a pattern of noncompliance with applicable professional
standards and practices; or
(2) the
firm has failed to abide by remedial measures required by a peer review
committee or the board.
(c) Nothing in subsection (b)
shall be construed to preclude the board from: Limiting the scope of practice
of attest services of a firm or limiting the scope of practice of attest
services of a permit holder under K.S.A. 1-311, and amendments thereto; or
taking such remedial action as the board deems necessary to protect the public
interest, after a review of an adverse peer review report based on matters
relating to attest services if the board determines that the firm failed to
comply with generally accepted accounting principles, generally accepted
auditing standards and other similarly recognized authoritative technical
standards.
(d) After considering AICPA standards on peer
review, the board may define, by rules and regulations, the terms “modified”
and “adverse.”
(e) At the time of suspension or revocation of a
firm’s registration, the board may suspend or revoke the permit to practice of
a member, shareholder or partner of a firm if the permit holder is the only
(f) All administrative
proceedings pursuant to this section shall be conducted in accordance with the
provisions of the
(g) The board shall not have the
power to assess fines under this section if a fine has been assessed for the
same or similar violation under the provisions of subsection (a) of K.S.A.
1-311 and amendments thereto.