In re JohnsonAnnotate this Case
The North Carolina State Board of Certified Public Accountant Examiners lawfully took disciplinary action against a certified professional and her corporation (collectively, Petitioners) for failure to follow a rule requiring compliance with the terms of a peer review contract, and the Board’s decision was based on substantial evidence.
The Board found that Petitioners, a certified public accountant (CPA) and her firm, failed to comply with required auditing standards and failed to fulfill the terms of a peer review contract. The Board determined that this conduct violated rules and standards promulgated by the Board. The Board suspended the firm’s registration, imposed monetary penalties on the CPA, and revoked the CPA’s certificate. The Supreme Court affirmed, holding (1) the Board’s action was not an unconstitutional exercise of judicial power; and (2) the Board’s decision was supported by substantial evidence, notwithstanding a procedural error alleged by Petitioners.