An Examination of AICPA Disciplinary Actions: 1980–2014

Abstract

SUMMARY This study examines trends in the disciplinary sanctions imposed by the American Institute of Certified Public Accountants (AICPA) over the 35-year period 1980–2014. It reveals that the sizable increase in the number of sanctions that followed the 1988 revision to the Institute's Code of Professional Conduct has mostly stabilized. However, there is still growth in the number of sanctions being imposed for substandard professional service. The sanctions imposed for substandard professional service have also become more stringent. In combination these actions confer assurance that continuing members of the Institute provide superior professional service. A 2003 bylaw change that imposes automatic sanctions for members disciplined by approved bodies has resulted in a substantial decrease in the number of investigations undertaken by the AICPA. However, there is a high incidence of noncooperation with the remaining investigations, the reasons for which are not established by the current study.