Nevada Administrative Code Chapter 670B
Overview: NAC Chapter 670B – Nevada Board of Accountancy
NAC 670B covers regulations for CPAs and public accountants in Nevada, including:
Licensing requirements
Continuing professional education (CPE)
Professional conduct and ethics
Disciplinary actions
Requirements for firm registration
The goal is to ensure the competence, integrity, and ethical conduct of accountants to protect the public.
Case 1: Insufficient Continuing Professional Education (CPE)
Situation
A Nevada CPA is renewing their license but has completed 90 CPE hours instead of the required 120 hours over three years and missed the ethics requirement.
Relevant NAC Rules
CPAs must complete minimum CPE hours, including ethics
Documentation of CPE must be maintained for audit
Board Analysis
Missing CPE is a regulatory violation
Ignorance or workload does not excuse non-compliance
Outcome
License renewal may be denied or delayed
CPA may be required to complete additional CPE
Possible fines or probation
Purpose
Ensures CPAs maintain current knowledge and professional competence.
Case 2: Practicing Without an Active License
Situation
A CPA in Nevada allows their license to expire but continues to:
Provide attest services
Sign financial statements using the CPA title
Relevant NAC Rules
Only active, licensed CPAs may practice public accounting
Unauthorized use of the CPA title is prohibited
Board Analysis
This is unauthorized practice
It misleads the public into believing the individual is licensed
Outcome
Cease-and-desist order
Monetary penalties
Reapplication required under oversight
Purpose
Protects the public from unlicensed and unregulated practice.
Case 3: Conflict of Interest in Auditing
Situation
A CPA audits a company where they hold a financial interest:
Owns stock in the client company
Provides non-audit services such as bookkeeping
Relevant NAC Rules
CPAs must maintain independence in fact and appearance
Certain financial interests and business relationships are prohibited
Board Analysis
Independence is compromised, regardless of intent
Audit credibility and objectivity are undermined
Outcome
CPA must withdraw from engagement
Disciplinary action may include fines or probation
Ethics retraining may be required
Purpose
Ensures audits are reliable and unbiased.
Case 4: Breach of Client Confidentiality
Situation
A CPA discloses a client’s tax problems and financial difficulties to friends and associates.
Relevant NAC Rules
CPAs must maintain client confidentiality
Disclosure without consent or legal requirement is prohibited
Board Analysis
Confidentiality violations erode trust even without financial harm
Professional judgment requires discretion
Outcome
Formal reprimand or disciplinary action
Ethics education mandated
Possible fines or license suspension
Purpose
Protects sensitive client information and public trust.
Case 5: Falsifying Financial Records
Situation
A CPA knowingly signs off on inflated financial statements for a company to secure a loan.
Relevant NAC Rules
CPAs must act with integrity, objectivity, and honesty
Fraud or misrepresentation is grounds for severe discipline
Board Analysis
Intentional misstatements harm the public and violate ethical standards
Professional integrity is central to the CPA designation
Outcome
License revocation or long-term suspension
Monetary fines
Referral for criminal or civil prosecution
Purpose
Protects investors, creditors, and the public from fraudulent practices.
Case 6: Failure to Cooperate with Board Investigation
Situation
A CPA ignores Board requests for records and misses scheduled hearings regarding a complaint about professional misconduct.
Relevant NAC Rules
Licensees must cooperate fully with Board investigations
Failure to cooperate is itself a violation
Board Analysis
Regulatory oversight depends on licensee cooperation
Board can discipline even without proving the underlying complaint
Outcome
Immediate license suspension
Escalated fines
Default disciplinary action
Purpose
Ensures effective oversight and accountability of licensed professionals.
Case 7: Firm Registration Violation
Situation
A CPA firm operates in Nevada without registering with the Board and advertises auditing services.
Relevant NAC Rules
Firms must register with the Nevada Board before offering services
Unregistered practice is prohibited
Board Analysis
Unregistered firms mislead the public
Lack of oversight increases risk to clients
Outcome
Cease-and-desist order for the firm
Monetary fines
Registration required before continuing operations
Purpose
Maintains public protection through oversight of accounting firms.
Key Takeaways from NAC 670B Cases
CPE compliance is mandatory—ethics counts.
License status matters—practice without it is illegal.
Independence and objectivity are critical in auditing.
Confidentiality and honesty underpin trust in the profession.
Cooperation with the Board is non-negotiable.
Firm registration ensures regulatory oversight.
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