32-742. Revocation or suspension of firm's registration; failure to renew or reinstate; reinstatement; relinquishment
A. After notice and an opportunity for a hearing, the board shall revoke a firm's registration to practice public accounting if at any time it does not have all the qualifications prescribed by this chapter.
B. After notice and an opportunity for a hearing, the board may revoke or suspend a firm's registration to practice public accounting or may take disciplinary action concerning the registrant for any of the causes enumerated in section 32-741, subsection A or for any of the following additional causes:
1. The revocation or suspension of any certificate issued by the board of any partner, shareholder, member, manager, officer, director, agent or employee of the firm.
2. The cancellation, revocation, suspension or refusal to renew the authority of the firm or any Arizona partner, shareholder, member, manager, officer, director, agent or employee to practice public accounting in any jurisdiction for any cause other than failure to pay a registration fee in the jurisdiction.
3. The failure to comply with section 32-731, subsection E.
C. A firm may relinquish its registration pending or in lieu of an investigation or a disciplinary proceeding or while under a disciplinary order. The board shall consider a relinquishment tendered by the firm pursuant to this section and may determine whether to accept the relinquishment. The board shall issue an order documenting its decision.
D. A firm whose registration has been relinquished shall not assume or use the title or designation "certified public accountant" or "public accountant" or the abbreviation "C.P.A.", "CPA", "P.A." or "PA".
E. A firm whose registration has been relinquished pursuant to this section may apply for reinstatement, and the board may issue a new registration if the firm does all of the following:
1. Files an application for reinstatement on the form prescribed by the board and pays the registration fee pursuant to section 32-729, paragraph 4.
2. Demonstrates through substantial evidence presented to the board that the firm is completely rehabilitated with respect to the conduct that was pending at the time of relinquishment. Demonstration of rehabilitation includes evidence of the following:
(a) The firm or any partner of the firm has not engaged in any conduct during the relinquishment period that, if the firm or partner of the firm had been registered during that period, would have constituted a basis for revocation or suspension pursuant to section 32-741.
(b) The firm has addressed or remedied any complaints, investigations or board-ordered requirements that are pending or outstanding at the time of relinquishment.
(c) Other evidence of rehabilitation that the board deems appropriate.
3. Meets all of the requirements for registration pursuant to this chapter.
F. If the board accepts the relinquishment of a registration of a firm, before the relinquishment may take effect, the firm shall submit a document that is signed and dated and that is in substantially the following form:
I, (insert name of registrant acting on behalf of the firm), acknowledge that disciplinary proceedings have been initiated against (insert name of firm) pursuant to title 32, chapter 6, article 3, Arizona Revised Statutes, and the firm relinquishes its right to practice accounting as a certified public accounting firm in the state of Arizona. I understand that if the firm applies for a new registration, it must meet all requirements for registration pursuant to section 32-742, Arizona Revised Statutes. I further understand that, in deciding whether to issue a new registration to the firm, the board will consider all disciplinary actions currently pending against the firm and any other matters it determines to be appropriate.
Dated this ____ day of _____, 20___.
By: (insert name of firm, name of individual signing on behalf of firm, and that individual's position in firm)