1. (a) For the purposes of denial, suspension, or revocation of a certificate or permit pursuant to Division 1.5 (commencing with Section 475) of the Business and Professions Code, a crime, professional misconduct, or act shall be considered to be substantially related to the qualifications, functions or duties of a certified public accountant or public accountant if to a substantial degree it evidences present or potential unfitness of a certified public accountant or public accountant to perform the functions authorized by his or her certificate or permit in a manner consistent with the public health, safety, or welfare.

2. (b) In making the substantial relationship determination required under subdivision (a) for a crime, the board shall consider the following criteria:

   1. (1) The nature and gravity of the offense;
   2. (2) The number of years elapsed since the date of the offense; and
   3. (3) The nature and duties of the accounting profession.

3. (c) For purposes of subdivision (a), a substantially related crime, professional misconduct, or act shall include, but are not limited to, the following:

   1. (1) A crime, professional misconduct, or act that involves dishonesty, fraud, or breach of fiduciary responsibility of any kind;
   2. (2) Fraud or deceit in obtaining a certified public accountant's certificate or public accountant's permit under Chapter 1, Division Ill of the Business and Professions Code;
   3. (3) Gross negligence in the practice of public accountancy or in the performance of bookkeeping operation described in Section 5052 of the Business and Professions Code;
   4. (4) A crime or act of professional misconduct that reflects a lack of sound professional or personal judgment relevant to the practice of public accountancy, regardless of whether financial harm occurred to a consumer.
   5. (5) Violation of any of the provisions of Chapter 1, Division Ill of the Business and Professions Code or willful violation of any rule or regulation of the board.

Note: Authority cited: Sections 481, 5010 and 5018, Business and Professions Code. Reference: Sections 480, 481, 490, 493, 5100 and 5100.2, Business and Professions Code.

History

1. New section filed 2-14-75; effective thirtieth day thereafter (Register 75, No. 7).

2. Amendment filed 4-12-83; effective thirtieth day thereafter (Register 83, No. 16).

3. Amendment of first paragraph and subsections (a) and (c) filed 7-11-2007; operative 8-1-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 28).

4. Amendment of section and Note filed 6-4-2021; operative 6-4-2021 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 23). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.