Key takeaways from the 11th Circuit Court: AICPA guidelines are critical in the accounting profession

BlogLine

Key takeaways from the 11th Circuit Court: AICPA guidelines are critical in the accounting profession

8/14/25

The recent unpublished 11th Circuit Court decision in Simmons v. AICPA, GSCPA, Georgia State Board of Accountancy, and Green, Mosier & Kemp, LLC offers critical insights for accounting professionals navigating the regulatory landscape. The case involved a pro se challenge by Simmons—a longtime Georgia licensed CPA—against the AICPA (American Institute of CPAs®) and the Georgia State Board of Accountancy peer review process and the authority of private accounting organizations such as the Georgia Society of CPA’s and private CPA firms tasked with peer review, with claims of constitutional violations and monopoly practices. Simmons brought his claims after he was denied renewal of his CPA license, which was issued in 1975 and has been continually renewed until now. The court’s ruling, which affirmed the dismissal of the lawsuit, provides practical lessons for practitioners.

Why This Decision Matters to Your Practice

Peer Review Programs Are Here to Stay. The court upheld the legitimacy of peer review requirements, noting that private organizations like the AICPA and state societies, even when involved in regulatory processes, are not considered state actors unless there are plausible allegations supported by materials facts that there is significant state involvement or coercion. This means that participation in peer review programs remains a professional obligation for CPAs in states where it is required, and challenges to their legality are unlikely to succeed unless clear state action is involved.
Private Entities and State Action. The decision clarifies that private accounting organizations (such as the AICPA and the GSCPA) and peer review firms are not liable under federal civil rights statutes (such as § 1983) unless there are plausible claims supported by material facts that the private organizations are acting “under color of state law.” For practitioners, this means that disputes with these private organizations over peer review outcomes or standards are generally not constitutional matters, but rather professional issues.
Sovereign Immunity Protects State Boards. The court reaffirmed the dismissal of the Georgia State Board of Accountancy on the grounds that Simmons abandoned his appeal of the District Court’s determination that state boards of accountancy are protected by sovereign immunity under the 11^th Amendment as an arm of the state, unless it can plausibly be shown that a specific exception applies.
Importance of Professional Standards and Documentation. The case highlights the importance of adhering to professional standards set by recognized bodies like the AICPA. Engagement letters, peer review documentation and compliance with established procedures are not just best practices – they are essential for maintaining licensure and defending your practice in the event of a challenge.

Practical Advice for Accountants

Stay Current on Peer Review Requirements: Ensure your firm is up to date with all peer review obligations and that you understand the standards set by the AICPA and your State Board of Accountancy.
Maintain Thorough Documentation: Keep detailed records of your peer review process, engagement letters and communications with clients and reviewers. This documentation is your best defense in the event of a dispute.
Engage with Professional Organizations: Their standards and programs are recognized by state boards and courts. Active participation can help you stay ahead of regulatory changes and avoid compliance pitfalls.

Conclusion

This decision underscores the importance of compliance, professionalism and engagement with the regulatory framework governing the accounting profession. By understanding the boundaries of legal recourse and focusing on best practices, you can protect your license, your livelihood and your reputation in a complex and evolving environment.

For information on how we may assist you and your accounting firm, please contact Scott Eric Anderson at scott.anderson@fmglaw.com.

 Information conveyed herein should not be construed as legal advice or represent any specific or binding policy or procedure of any organization. Information provided is for educational purposes only. These materials are written in a general format and not intended to be advice applicable to any specific circumstance. Legal opinions may vary when based on subtle factual distinctions. All rights reserved. No part of this presentation may be reproduced, published or posted without the written permission of Freeman Mathis & Gary, LLP.

Save Print