Choice "C" is correct. The three broad categories of misconduct are misconduct while performing accounting services, misconduct outside the scope of performing accounting services, and a criminal conviction. Choice "d" is incorrect. The state boards of accountancy have considerable disciplinary power other than the power to reprimand licensees. The Attorney General of the various states will not be interested in civil prosecution.Choice "b" is incorrect. Negligence, fraud, and dishonesty are types of misconduct while performing accounting services, not types of misconduct outside the scope of performing accounting services.Choice "a" is incorrect. The failure to file a tax return is an example of a criminal conviction (assuming that a conviction actually occurred), not misconduct outside the scope of performing accounting services.
