Regulation of Accountants – Tennessee

The purpose of the  Tennessee Accountancy Act of 1998, Tenn. Code Ann. § 62-1-102, is to promote the reliability of information that is used for guidance in financial transactions or for accounting for or assessing the financial status or performance of commercial, noncommercial and governmental enterprises.

Pursuant to Tenn. Code Ann. § 62-1-106, the certificate of certified public accountant shall be granted to persons of good moral character who meet the education, experience and examination requirements and who make application for the certificate.

Pursuant to Tenn. Code Ann. § 62-1-111, after notice and hearing, the board may revoke any license, may suspend the license or refuse to renew the license for a period of no more than five years, may reprimand, censure or limit the scope of practice of any licensee, may impose a civil penalty or may place any licensee on probation, for any one or more of the following reasons:

1)Fraud or deceit in obtaining a license;

2)Cancellation, revocation, suspension or refusal to renew a license or practice rights for disciplinary reasons in any other state for any cause;

3)Failure on the part of a licensee to maintain compliance with the requirements for issuance or renewal of the license or to report changes to the board;

4)Revocation or suspension of the right to practice before any state or federal agency;

5)Dishonesty, fraud or gross negligence in the performance of services as a licensee or in the filing or failure to file the licensee’s own income tax returns;

6)Violation of any provision of this chapter or rule promulgated by the board under this chapter or violation of professional standards;

7)Violation of any rule of professional conduct promulgated by the board;

8 ) Conviction of a felony or of any crime an element of which is dishonesty or fraud;

9) Performance of any fraudulent act while holding a certificate or permit issued under this chapter or prior law;

10) Any conduct reflecting adversely upon the licensee’s fitness to perform services while a licensee;

11) Making any false or misleading statement or verification in support of an application for a license filed by another; and

12) Violation of the terms of any lawful order entered by the board.

In addition, the board may require of a licensee a peer review conducted in the fashion that the board may specify; and/or satisfactory completion of continuing professional education programs that the board may specify.

Pursuant to Tenn. Code Ann. § 62-1-112 if, in the judgment of the board, any person has engaged in any acts or practices that constitute a violation of this chapter, the board may make application to the appropriate court in Davidson County or in the county in which the acts occurred, or are alleged to have occurred, for an order enjoining those acts or practices.  Upon a showing by the board that the person has engaged in any such acts or practices, an injunction, restraining order or other such order as may be appropriate may be granted by the court without bond.

Tenn. Code Ann. § 62-1-113 deals with prohibited activities.  Only licensees may issue a report on financial statements of any other person, firm, organization or governmental unit or otherwise offer to render or render any attest service.
A person not holding a valid certificate shall not use or assume the title “certified public accountant” or the abbreviation “CPA” or “public accountant” or the abbreviation “PA,” or any other title, designation, words, letters, abbreviation, sign, card or device tending to indicate that the person is a certified public accountant or a public accountant.

Pursuant to Tenn. Code Ann. § 62-1-118, if the board has suspended or revoked a license or refused to renew a license, the board may, upon application in writing by the person or firm affected and for good cause shown, modify the suspension or reissue the license.  Before reissuing or terminating the suspension of a license under this section, and as a condition to the reissuing or termination of suspension, the board may require the applicant to show successful completion of specified continuing professional education; and the board may make the reinstatement of a license conditional and subject to satisfactory completion of a peer review conducted in the fashion that the board may specify.


Inside Regulation of Accountants – Tennessee