10/26/2026
The VBOA has seen an increase in transactions involving the sale of CPA firms. Regulatory and ethical issues apply to both buyers and sellers in these transactions. Below are two common issues that have led to enforcement action by the board.
Notification to clients – The AICPA Code of Professional Conduct, Section 1.400.205 and the Internal Revenue Code (§ 7216) have rules regarding transfer of files, client records and tax return information. These rules provide specifics on the type of notification and consent required from the client to transfer such information. They also cover what type of limited information can be shared between the parties in a transaction during contract negotiations or due diligence periods.
Misleading the public – The Code of Virginia requires that CPAs do not engage in false, misleading or deceptive conduct. Additionally, firm names are not permitted to be false, misleading or deceptive.
Read more from the most recent newsletter (p. 13 https://www.canva.com/design/DAHIt0XLctk/z7KkJbuXg1BonpupPoXfww/view?utm_content= #13)