[NeedsA75]

OK, here it goes…My CFO in CA has let his license go inactive but still uses “CPA” in his email signature, business cards, and company website. In CA you are supposed to use “CPA Inactive” if your license has lapsed.

What obligation do I have to report this and how serious is this? What would you guys do in my situation?

[NeedsA75]

Anyone have thoughts on this? Seems like kind of a big deal to portray yourself as an active CPA when you aren't. Not sure if I'm reading too much into this or not..

[Anonymous]

I don't mean this to be insulting, but just mind your own business. It will catch up to him one day. He's not molesting a child or something of moral turpitude. We all have enough to worry about as individuals..

[Missy]

It's kind of a big deal imho but not like they're going to start asking people working in your company why they didn't report it. Probably no more than a “stop it” for him unless he's signing audits or taxes or marketing to customers with the designation.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[NeedsA75]

No offense taken, but your advice comes off as ignorant, cessna. We are a small start up company and I believe his behavior exposes us to risk, which makes it my business.

We just added the 4th person to our department (who also just passed the exam) and they were shocked to find out that he was doing this. Apparently at her old company when someone went inactive they made the person forfeit their business cards so that they could update them with the appropriate “inactive” designation.

From what mla said, it doesn't sound like I am at risk by staying quiet, even once I'm licensed. I may just take it to our compliance committee to have them address the situation in house.

I'm still trying to find an example of what disciplinary action (if any) the CBA could take and then weigh my options from there…And yes, while the CFO isn't signing audits or tax returns, he is still out obtaining loans and raising capital under the guise of being an active CPA…nothing to sneeze at IMO..

[Anonymous]

I'm not here to bicker with you over an online forum, so do as you wish.

But you just passed the CPA exam, and are already the CPA police. If you have such a problem with him misrepresenting himself as a CPA, then say something to him about it…directly

State Boards have enforcement mechanisms for this same issue.

[Missy]

You should be able to just call the CBA and ask, can't imagine they'd press for detail.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[gigabyte2001]

You can probably find out how your Board will handle it by viewing their disciplinary actions reports.

B - 11/11/16
A - 4/16/16 87!!
R - 2/17/17
F - 7/26/16 - Waiting for 8/23

[NeedsA75]

I'm going to call the CBA tomorrow and see what they say..

Also cessna, just ask yourself this, is this person acting with integrity? Did you even take the ethics exam?

Also, I'd be lying if I said it didn't bother me that I've been busting my ass the last few years to get licensed and come to find out my CFO is using an active designation when he shouldn't be. I'm not gonna slap CPA behind my name just because I've passed the exam and have 150 credit hours and this person shouldn't be portraying themselves as active when they aren't. They didn't bother to take CPE's and maintain their license and I feel it kind of undermines the designation if people do this kind of thing.

But whatever, I guess that makes me the CPA police..

[Bluetoothray]

I agree with @NeedsA75. If you haven't already spoken with the CFO directly yet I would. From the sounds of it your startup is pretty small so hopefully you have a more casual relationship with him. If it appears that he just “forgot,” or appears to be oblivious to the licensing requirements I'd remind him. If it appears that he is blatantly misrepresenting himself to the company and to the world then I would take issue with his conduct. I would speak with other management members. If it appears that they don't care or seem to want to take action then I'd take it up with your board. It hurts the public, you, and the startup.

[Anonymous]

This is the law on impersonating a CPA in PA
https://www.legis.state.pa.us/WU01/LI/LI/US/PDF/2010/0/0012..PDF

[x260bm]

Just report him to the board and let them deal with it. They are not go tell him who turned him in.

[Anonymous]

write an anonymous letter to the state board.

[Knight Rider]

I understand your perspective. However, if there is no duty/requirement to report it, meaning it does not jeopardize my license, I'd leave it alone. Simply because we do not live in a world that is black/white. Secondly, if it is a small company it may not be too difficult to figure out who reported them to the Board. In the event that they are able to figure out it is you, or strongly suspect, you may end up on the chopping block…no good deed goes unpunished. Some Boards require that you cooperate with any investigation when you report a CPA to the Board, so it is quite possible they could find out that it's you. As long as you don't mind assuming the risk of losing a job/career in exchange for the moral high road, go for it. To each their own…but just make sure you evaluate both the positive and negative consequences.

I had an ethical situation with one employer, and I was under no obligation to report it. In the end, I just decided to leave the company, and not be apart of it.

Best of luck with your decision. 😉 Keep us posted.

[Missy]

In CA an inactive license is still a CPA (pays renewal fees etc) but hasn't met the CPE requirement if I understand correctly. So he can say CPA but is supposed to qualify it by saying inactive every time he uses the title?

I'd think he was a complete tool for just not adding (inactive) but would feel more strongly if he had either lost or failed to renew a license but continued using it. It may be misleading or at the very least an error of omisison and if that causes you to question his integrity I'd look to get out of there–the tone of a company comes from the top. It wouldn't be a red flag or a dealbreaker to me, but he is still a licensed CPA in the state of CA, just different wording than what he's using.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[mooseonloose]

What would he have done if he was in your position?

[Author]

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