Figure: 22 TAC §519.17(a)

No. Violation Citation Administrative Penalty
Range
1 Failure to follow Generally
Accepted Auditing Standards;
Yellow Book Auditing
Standards; AICPA Auditing
Standards; and other auditing
standards.		 22 TEX. ADMIN.
CODE §§501.60 &
501.74;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
2 Failure to follow Generally
Accepted Accounting
Principles		 22 TEX. ADMIN.
CODE §§501.53,
501.61 & 501.74;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000
per violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
3 Failure to follow other
Professional Standards

(e.g. Compilation Standards)

 22 TEX. ADMIN.
CODE §§501.62 &
501.74;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
4 Lack of independence 22 TEX. ADMIN. CODE
§§501.70 &
501.73

TEX. OCC. CODE
§§901.458, 901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
5 Violation of rules regarding
receipt of commissions and
other compensation		 22 TEX. ADMIN. CODE
§501.71;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
6 Violation of rules regarding
contingency fees		 22 TEX. ADMIN.
CODE §501.72;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000 per
violation.

Major: $75,000 to $100,000
per violation.
7 Lack of integrity and
objectivity		 22 TEX. ADMIN.
CODE §501.73;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
8 Incompetence 22 TEX. ADMIN.
CODE §501.74;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
9 Breach of confidential
communications		 22 TEX. ADMIN.
CODE §501.75;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
10 Failure to return client records
or client’s portion of work
papers		 22 TEX. ADMIN.
CODE §501.76;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 $0 to $25,000 per violation.
11 Acting through others 22 TEX. ADMIN.
CODE §501.77 (and
the rule violated by
the actor);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
12 Practicing without a license 22 TEX. ADMIN.
CODE §501.80;

TEX. OCC. CODE
§§901.401,
901.453, 901.456,
901.502(6) &
901.502(11)

 $0 to $25,000 per violation.
13 Practicing through an
unregistered entity		 22 TEX. ADMIN.
CODE §501.81;

TEX. OCC. CODE
§§901.401,
901.502(6) &
901.502(11)

 $0 to $25,000 per violation.
14 False, fraudulent, misleading,
or deceptive advertising		 22 TEX. ADMIN.
CODE §501.82;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $1,000 per
violation.

Moderate: $1,000 to $50,000
per violation.

Major: $50,000 to $100,000
per violation.
15 Improper firm name 22 TEX. ADMIN.
CODE §501.83;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 $0 to $10,000 per violation.
16 Improper form of practice 22 TEX. ADMIN.
CODE §501.84;

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 $0 to $10,000 per violation.
17 Performing discreditable acts

(1) fraud or deceit in obtaining
a certificate as a certified
public accountant or in
obtaining registration under the
Act or in obtaining a license to
practice public accounting

 22 TEX. ADMIN.
CODE §501.90(1);

TEX. OCC. CODE
§§901.502(1),
901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
18 Performing discreditable acts

(2) dishonesty, fraud or gross
negligence in the practice of
public accountancy

 22 TEX. ADMIN.
CODE §501.90(2);

TEX. OCC. CODE
§§901.502(2),
901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
19 Performing discreditable acts

(3) violation of any of the
provisions of Subchapter J or
§901.458 of the Act applicable
to a person certified or
registered by the board

 22 TEX. ADMIN.
CODE §501.90(3);

TEX. OCC. CODE
§§901.502(5),
901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
20 Performing discreditable acts

(4) final conviction of a felony
or imposition of deferred
adjudication or community
supervision in connection with
a criminal prosecution of a
felony under the laws of any
state or the United States

 22 TEX. ADMIN.
CODE §501.90(4);

TEX. OCC. CODE
§§901.502(6),
901.502(10), &
901.502(11)

TEX. OCC. CODE
CHAP. 53

 $0 to $100,000 per violation.
21 Performing discreditable acts

(5) final conviction of any
crime or imposition of deferred
adjudication or community
supervision in connection with
a criminal prosecution, an
element of which is dishonesty
or fraud under the laws of any
state or the United States

 22 TEX. ADMIN.
CODE §501.90(5);

TEX. OCC. CODE
§§901.502(6),
901.502(10), &
901.502(11)

 $0 to $100,000 per violation.
22 Performing discreditable acts

(6) cancellation, revocation,
suspension or refusal to renew
authority to practice as a
certified public accountant or a
public accountant by any other
state for any cause other than
failure to pay the appropriate
registration fee in such other
state

 22 TEX. ADMIN.
CODE §501.90(6);

TEX. OCC. CODE
§§901.502(6),
901.502(8),
901.502(9), &
901.502(11)

 $0 to $100,000 per violation.
23 Performing discreditable acts

(7) suspension or revocation of
or a voluntary consent decree
concerning the right to practice
before any state or federal
agency for a cause which in
the opinion of the board
warrants its action

 22 TEX. ADMIN.
CODE §501.90(7);

TEX. OCC. CODE
§§901.502(6),
901.502(8),
901.502(9), &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
24 Performing discreditable acts

(8) knowingly participating in
the preparation of a false or
misleading financial statement
or tax return

 22 TEX. ADMIN.
CODE §501.90(8);

TEX. OCC. CODE
§§901.502(2),
901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
25 Performing discreditable acts

(9) fiscal dishonesty or breach
of fiduciary responsibility
of any type

 22 TEX. ADMIN.
CODE §501.90(9);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
26 Performing discreditable acts

(10) failure to comply with a
final order of any state or
federal court

 22 TEX. ADMIN.
CODE §501.90(10);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
27 Performing discreditable acts

(11) repeated failure to
respond to a client’s inquiry
within a reasonable time
without good cause

 22 TEX. ADMIN.
CODE §501.90(11);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
28 Performing discreditable acts

(12) misrepresenting facts or
making a misleading or
deceitful statement to a client

 22 TEX. ADMIN.
CODE §501.90(12);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
29 Performing discreditable acts

(13) false swearing or perjury
in any communication to the
board or any other federal or
state regulatory or licensing
authority

 22 TEX. ADMIN.
CODE §501.90(13);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
30 Performing discreditable acts

(14) threats of bodily harm or
retribution to a client

 22 TEX. ADMIN.
CODE §501.90(14);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
31 Performing discreditable acts

(15) public allegations of a
lack of mental capacity of a
client which cannot be
supported in fact

 22 TEX. ADMIN.
CODE §501.90(15);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
32 Performing discreditable acts

(16) causing a breach in the
security of the CPA
examination

 22 TEX. ADMIN.
CODE §501.90(16);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000
per violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
33 Performing discreditable acts

(17) voluntarily disclosing
information communicated to
the certificate holder by an
employer, past or present, or
through the certificate holder’s
employment in connection
with accounting services
rendered to the employer,
except:
(A) by permission of the employer;
(B) pursuant to the
Government Code, Chapter
554 (commonly referred to as
the "Whistle Blowers Act");
(C) pursuant to a subpoena or
other compulsory process in a
court proceeding;
(D) in an investigation or
proceeding by the board under
the Public Accountancy Act;
or
(E) in an ethical investigation
conducted by a professional
organization of certified public
accountants

 22 TEX. ADMIN.
CODE §501.90(17);

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
34 Performing discreditable acts

(18) breaching the terms of an
agreed consent order entered
by the Board or violating any
Board Order

 22 TEX. ADMIN.
CODE §501.90(18);

TEX. OCC. CODE
§§901.502(6),
901.502(11) &
901.502(12)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
35 Failure to report reportable
events		 22 TEX. ADMIN.
CODE §501.91

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
36 Filing a frivolous complaint 22 TEX. ADMIN.
CODE §501.92

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 $0 to $10,000 per violation.
37 Failure to respond to Board
communications		 22 TEX. ADMIN.
CODE §501.93

TEX. OCC. CODE
§§901.502(6) &
901.502(11)

 Minor: $0 to $1,000 per
violation.

Moderate: $1,000 to $50,000
per violation.

Major: $50,000 to $100,000
per violation.
38 Failure to comply with
mandatory CPE		 22 TEX. ADMIN.
CODE §§501.94 &
523.62

TEX. OCC. CODE
§§901.502(6),
901.502(11) &
901.502(12)

 $0 to $10,000 per violation.
39 Three year
no-pay individual		 TEX. OCC. CODE
§§901.502(4) &
901.502(11)		 $0 to $10,000 per violation.
40 CPA exam irregularities 22 TEX. ADMIN.
CODE §511.70

TEX. OCC. CODE
§§901.502(11) &
901.502(12)

 Minor: $0 to $25,000 per
violation.

Moderate: $25,000 to 75,000
per violation.

Major: $75,000 to $100,000
per violation.
41 Ineligible applicant
certification hearings		 22 TEX. ADMIN.
CODE §511.161 &
511.176

TEX. OCC. CODE
§§901.502(11) &
901.502(12)

 $0 to $10,000 per violation.
42 Moral character 22 TEX. ADMIN.
CODE §511.27 &
525.1

TEX. OCC. CODE
§§901.502(11) &
901.502(12)

 Moderate: $1,000 to $50,000
per violation.

Major: $50,000 to $100,000
per violation.
43 Failure to satisfy peer review
requirements		 22 TEX. ADMIN.
CODE §527.4

TEX. OCC. CODE
§§901.502(11) &
901.502(12)

 Minor: $0 to $1,000 per
violation.

Moderate: $1,000 to $50,000
per violation.

Major: $50,000 to $100,000
per violation.