Charles Jones on Responding to Board of Accountancy Investigations

Responding to a Notice of Investigation from the Minnesota Board of Accountancy

Charles E. Jones | Minnesota Society of Certified Public Accountants | January 28, 2026

Imagine that you’ve gotten to the office early to get a jump on the day. When the day’s mail arrives, you see an envelope with a return address identifying the sender as the Minnesota Board of Accountancy (BOA), stamped “Personal and Confidential.” Your tension level rises as you open it and you see a letter containing a Notice of Investigation. What do you do?

Don’t panic! The fact the BOA is investigating a complaint does not necessarily mean that you will be subject to discipline. Many such notices do not result in discipline. But your response to that investigation is something that you should take with the utmost seriousness, as your license and reputation may be at risk.

The complaint process

The BOA’s mission is to “protect the public through the regulation of the practice of accounting.” Anyone — including disgruntled clients and disaffected ex-employees — can file a Complaint using forms available on the Board’s website. The BOA’s Complaint Committee will review the complaint. If it believes that the matter warrants further investigation, it will send the complaint to the licensee with a Notice of Investigation.

The committee will review the licensee’s response. If it decides that discipline is appropriate, the committee typically will propose a stipulated discipline, which may include a censure and a monetary penalty. The licensee can either accept that proposed discipline or engage in further discussions. If the licensee refuses to accept the discipline, the matter goes to an administrative hearing. The BOA publishes all final disciplinary actions.

Responding to a Notice of Investigation

Even if you think the complaint is unfounded, you must file a timely and comprehensive response. A response to a Notice of Investigation allows the licensee an opportunity to “set the record straight” by providing requested documents and correcting any inaccuracies in the complaint. Bear in mind that the members of the Complaint Committee are experienced and knowledgeable. The BOA is entitled to review all licensees’ records regarding services to clients and CPE compliance, so it is critical to timely provide all requested information.

Often, licensees attempt to respond on their own. This is just as bad an idea as lawyers thinking they can prepare financial statements. You must retain counsel who is knowledgeable regarding the unique issues affecting the accounting profession and has experience in dealing with the BOA. Moreover, a complaint filed by a former client can be a precursor to a civil lawsuit, meaning that the response should be carefully drafted to present your position without needlessly making damaging statements.

Also, notify your errors and omissions (E&O) insurer immediately. Many E&O insurers provide supplemental coverage for the fees incurred by counsel in preparing the response. If the insurer assigns counsel from its preselected panel, verify the assigned attorney’s experience. In addition, a failure to report a BOA matter may result in a loss of coverage for any follow-on civil lawsuit.

Preventing complaints

Of course, an ounce of prevention is worth a pound of cure. Take the following proactive steps to reduce the chance of BOA investigations (as well as other legal actions).

Late renewals and failure to complete and report CPE are a large percentage of the Board’s enforcement actions. The BOA diligently monitors license renewals and CPE compliance. Therefore, begin the license renewal process in ample time to complete it before the deadline. There is no grace period. If you identify yourself as a CPA in any way (such as your website, LinkedIn, Facebook, etc.) during any period of non-licensure, the Board will view that as improper “holding out” as a licensee. Also, ensure your firm permit (if applicable) is valid and that your firm name complies with applicable regulations.

Similarly, timely complete and report all required CPE and maintain records of compliance. If you don’t have attendance records, then for practical purposes you might as well not have attended. Also, if you plan to report carryback hours, familiarize yourself with the detailed procedures required well in advance of the reporting deadline.

Finally, follow other sound risk management practices, such as:

• Have written engagement letters with all clients that accurately identify all services to be provided.
• Ensure you or your firm has the appropriate expertise to complete all engaged work.
• Complete all engaged work in timely and competent manner.
• Timely communication with clients regarding all material issues and maintain written records of such communications.
• Ensure you create and maintain documentation regarding services provided in accordance with applicable standards.

Receiving a Notice of Investigation from the BOA can be a heart-stopping event. But a timely, complete, and appropriately-drafted response can lessen your chances of receiving discipline.