Table 6 Risk in serving the cannabis industry as reported by participating Certified Public Accountants
Risk for Certified Public Accountant serving the industry | Reported by participant type | ||
|---|---|---|---|
Certified Public Accountants that serve industry | Certified Public Accountants that do not serve industry | Total Certified Public Accountants count (%) | |
Nothing different from any other client, we are helping them stay in compliance with federal tax law | 2 (40%) | 0 | 2 (14%) |
Tax Code section 280E/Tax issues/Tax audits | 1 (20%) | 1 (11%) | 2 (14)% |
Relying on improper records to support income tax return | 1 (20%) | 1 (11%) | 2 (14%) |
Client may be doing something outside of regulations | 1 (20%) | 0 | 1 (7%) |
Difficult to recruit staff | 1 (20%) | 0 | 1 (7%) |
Getting sued/litigation | 1 (20%) | 1 (11%) | 2 (14%) |
Reputational risk | 0 | 2 (22%) | 2 (14%) |
Losing Certified Public Accountant license | 0 | 4 (44%) | 4 (29%) |
Federal prosecution | 0 | 4 (44%) | 4 (29%) |
Cash-intensive business/Security of staff/Depositing cash receipts from CRBs | 0 | 2 (22%) | 2 (14%) |
Lack of technical training on industry | 0 | 2 (22%) | 2 (14%) |