A Member held a public practice licence and invested in an investment opportunity along with clients, friends and business associates (the “Investors”). The Member:
- accepted funds from Investors for this investment through the Firm’s trust account before forwarding the funds to the promoters of the investment.
- discussed the investment with the Investors, and circulated confusing financial information about the investment to the Investors.
- performed assurance engagements for one Investor and as such, did not possess the necessary objectivity and independence to perform the engagement.
Unbeknownst at the time to the Member, the investment was a fraudulent scheme perpetrated by others. The financial information which the Member forwarded to the Investors was also fraudulent. The Member and the other Investors sustained substantial losses and no funds have yet been recovered.
During the investigation, the Member voluntarily sold their public practice and cancelled their practice license.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
202.2 - Objectivity
204.1 - Independence – Assurance and specified auditing procedures engagements
205 - False or misleading documents and oral representations
207 - Unauthorized benefits
210.1&.2 - Conflicts of interest
212 - Handling property of others
217.3 - Endorsements
The Committee recommended the Member:
- Agree to not reapply for a public practice licence; and
- Agree to the publication of a notice on the CPABC website that they are no longer a public practitioner.
In making this recommendation, the Committee took into account information concerning the Member’s personal circumstances.
The Member self-reported to CPABC that, while an assurance partner with a firm, they did not adhere to the Canadian CPA Assurance Handbook, firm policy and other professional requirements with respect to file documentation and signoff. The Member personally completed various assurance working papers, and the financial statements and related assurance reports were issued before their work was reviewed. Additionally, the Member did not close out the assurance files within 60 days as per the Canadian Assurance Standard and firm policy.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
206.1 - Compliance with professional standards
The Committee recommended the Member:
- Accept a reprimand; and
- Pay expenses of $1,175
The Member agreed to assist a client by performing an ancillary service for a third-party (a client of their client.) After the relationship between the client and the third party deteriorated, the Member discontinued assisting the third party without adequately communicating with the third party.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
The Committee recommended the Member receive a warning that this determination will be taken into account if any other matters are referred to the Committee in the future.
The Member was retained by a client to perform specified audit procedures and complete a Law Society Reporting Form Trust Report for a client on two engagements. The Reports were completed and submitted to the Law Society of British Columbia. The Law Society subsequently conducted a review of the client’s trust accounts, and noted numerous breaches of trust accounting rules that should have been reported to the Law Society.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
204.1 - Assurance and specified auditing procedures engagements
205(a) - False or misleading documents and oral representations
206.1 - Compliance with professional standards
The Committee recommended the Member:
- accept a reprimand; and
- pay expenses of $3220.
Disciplinary proceedings were brought by the Public Company Accounting Oversight Board (PCAOB) in the United States against the Firm in two instances when the Firm:
- did not conduct an audit of a US-registered public company in accordance with audit standards acceptable to the PCAOB; and
- issued an audit report indicating the audit had been planned and performed in accordance with standards acceptable to the PCAOB, when in fact the audit had been planned and performed in accordance with different Canadian standards.
The PCAOB issued an order censuring the Firm, imposing a US$50,000 penalty and requiring policy and procedure updates by the Firm.
The Investigation Committee determined the Firm contravened the CPABC Code of Professional Conduct as follows:
201.1&.2 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
205 - False or misleading documents and oral representation
206.1 - Compliance with professional standards
218 - Retention of documentation and working papers
501 - Policies and procedures for compliance with professional standards
502 - Policies and procedures for the conduct of a practice
The Committee noted the significant penalty the Firm had incurred. The Committee recommended the Firm:
- accept a reprimand;
- pay expenses of $2,785; and
- provide evidence to the Director, Professional Conduct, that the Firm’s relevant partners have been trained in generally accepted audit standards of the United States.
Disciplinary proceedings were brought by the Public Company Accounting Oversight Board (PCAOB) in the United States against a Firm and Member when they did not comply with numerous PCAOB rules and standards when conducting the audit of a public company by failing to:
- use an audit methodology designed to comply with PCAOB standards and rules;
- provide technical training to staff;
- perform internal monitoring procedures to properly evaluate the accounting for a significant transaction;
- obtain pre-approval for non-audit services; and
- communicate matters related to the client’s audit committee properly.
PCAOB issued an order that:
- revoked the registration of the Firm for at least five years;
- barred the Member from being associated with a public accounting firm registered with PCAOB for at least five years; and
- imposed a penalty of US$10,000.
The Investigation Committee determined the Firm and Member contravened the CPABC Code of Professional Conduct as follows:
102.3 - Other professional regulatory bodies [Matters to be reported to CPABC]
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
205(a) - False or misleading documents and oral representations
501 - Policies and procedures for compliance with professional standards
502(a),(b),(e),(g) - Policies and procedures for the conduct of a practice
Bylaw
511(1)(c) - Obligation to report
The Committee noted the significant penalty the Member and Firm had incurred. The Committee recommended the Firm and Member:
- accept a reprimand;
- pay a fine of $1,500 and
- pay expenses of $2,400.
Disciplinary proceedings were brought by the Public Company Accounting Oversight Board (PCAOB) in the United States against the Firm for failing to file Form AP for three audits by the deadline required by PCAOB regulations. PCAOB issued an order censuring the Firm, imposing a US$10,000 penalty and requiring policy and procedure updates by the Firm.
The Investigation Committee determined the Firm contravened the CPABC Code of Professional Conduct as follows:
501 - Policies and procedures for compliance with professional standards
502(a)&(b) - Policies and procedures for the conduct of a practice
The Committee noted the significant penalty the Firm had incurred. The Committee recommended the Firm:
- accept a reprimand; and
- pay expenses of $1000.
While applying for membership in CPABC after completing the requirements for the CPA Professional Education Program, the Candidate failed to disclose a previous academic infraction issued by the Chartered Professional Accountants Western School of Business. The Candidate represents that the omission was due to an oversight.
The Investigation Committee determined the Candidate contravened the CPABC Code of Professional Conduct as follows:
103 - False or misleading applications
201.1 - Maintenance of the good reputation of the profession
The Committee recommended the Candidate:
- accept a reprimand; and
- pay expenses of $600.
The Member provided bookkeeping and tax preparation services for the spouse of a family member. When the family member and spouse became estranged from each other, the Member failed to recuse themselves from providing services to the estranged spouse.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 – Maintenance of the good reputation of the profession
202.1 – Integrity and due care
202.2 – Objectivity
210.1, 210.2 and 210.3 – Conflict of interest
The Committee recommended the Member:
- accept a reprimand;
- pay a fine of $500;
- pay expenses of $4,605; and
- Successfully complete the CPABC professional development course Shades of grey – ethics in the workplace.
A client engaged the services of the Member to prepare Canadian and US personal tax returns. The Member provided the client with incorrect information concerning aspects of tax law. When the client discontinued the Member’s services and refused to pay their invoice, the Member was abusive and unprofessional in their written communications.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
The Committee recommended the Member:
- accept a reprimand;
- pay partial expenses of $900; and
- Successfully complete:
- the CPABC professional development course Income Tax - Everyday Issues for General Practitioners; and
- course in ethics or conflict resolution.
While applying for membership in CPABC after completing the requirements for the CPA Professional Education Program, the Candidate failed to disclose a previous academic infraction issued by the Chartered Professional Accountants Western School of Business. The Candidate represents that the omission was due to an oversight.
The Investigation Committee determined the Candidate contravened the CPABC Code of Professional Conduct as follows:
103 - False or misleading applications
201.1 - Maintenance of the good reputation of the profession
The Committee recommended the Candidate:
- accept a reprimand; and
- pay partial expenses of $600.
The Firm was retained to prepare the T1 personal tax return and related tax filings of a non-resident client (the Filings). The Canada Revenue Agency did not receive the Filings on a timely basis. The Firm failed to respond to several communications from the client with regard to the Filings, and did not maintain records to properly document the timing of the Filings.
The Investigation Committee determined the Firm contravened the CPABC Code of Professional Conduct as follows:
501 – Policies and procedures for compliance with professional standards
502(a),502(b),502(e),502(g) – Policies and procedures for the conduct of a practice
The Committee recommended the Member:
- accept a reprimand; and
- pay partial expenses of $2,300.
The Member was engaged to perform a trust audit for a brokerage firm licensed under the Real Estate Services Act. The Accountant’s Report which the Member submitted to the British Columbia Financial Services Authority (BCFSA) was not prepared in accordance with BCFSA requirements and contained numerous errors.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
205(a) - False or misleading documents
206.1 - Compliance with professional standards
The Committee recommended the Member:
- accept a reprimand; and
- pay expenses of $2,711.
The Member was the owner and director of a company which performed property management services. The company did not hold the license required by the BC Financial Services Authority to perform such services.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
205 - False or misleading documents and oral representations
213- Unlawful activity
The Committee recommended the Member:
- accept a reprimand; and
- pay expenses of $2,577.
The Member agreed to prepare income tax returns for a family friend (the “client”), despite not having a public practice license from CPABC. The Member misinformed the client about the status of the tax returns, failed to respond to communications from the client and failed to return the client’s documents on a timely basis.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
101.1 - Compliance with governing legislation, bylaws, regulations and the Code
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
205 - False or misleading documents and oral representations
Bylaw
700(2) - Licensure for Public Practice
The Committee recommended the Member:
- accept a reprimand; and
- pay partial expenses of $500.
In making this recommendation, the Committee took into account the Member’s personal circumstances.
The Member’s firm prepared a T4 information return for a client in 2016 and 2017. When the T4s required amendment due to a change in the client’s information, the Member did not assist the client, resulting in the client incurring penalties and interest costs to the Canada Revenue Agency.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
206 - Compliance with professional standards
The Committee recommended the Member:
- Accept a reprimand;
- Pay a fine of $500; and
- Pay expenses of $2,976.
The Member was engaged by a client to prepare personal tax returns for the client and their spouse, and to assist in resolving issues regarding foreign taxation and disability tax credits. The Member did not communicate with the client on a timely basis and misinformed the client about the status of the engagement. After the client terminated the engagement, the Member inappropriately accessed the then-former client’s taxation information with the Canada Revenue Agency.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
205 - False or misleading documents and oral representations
208 - Confidentiality of information
The Committee recommended the Member:
- Accept a reprimand;
- Pay a fine of $2,000; and
- Pay partial expenses of $2,000.
A prospective client met with the Member to discuss a personal tax return engagement. The prospective client left original financial documents with the Member. The Member did not follow-through with communications to the prospective client and did not respond to repeated communications from the client.
The Investigation Committee determined the Member contravened Rule 201.1 of the CPABC Code of Professional Conduct (Maintenance of the good reputation of the profession)
The Committee recommended the Member:
- Accept a reprimand;
- Pay a fine of $1,500;
- Pay expenses of $1,300; and
- Successfully complete the CPABC professional development course Communicating effectively under pressure.
The Member was retained by a client to perform specified audit procedures and complete a Law Society Reporting Form Trust Report for a client. The work in question was performed under by the Member’s staff under the Member’s supervision. The Report was completed and submitted to the Law Society of British Columbia. The Law Society subsequently conducted a review of the client’s trust accounts, and noted numerous breaches of trust accounting rules that should have been reported to the Law Society.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
205 (a) - False or misleading documents
The Committee recommended the Member:
- accept a reprimand; and
- Pay expenses of $2,199.
The Member was retained by a client to perform specified audit procedures and complete a Law Society Reporting Form Trust Report for a client. The work in question was performed by the Member’s staff under the supervision of the Member. The Report was completed and submitted to the Law Society of British Columbia. The Law Society subsequently conducted a review of the client’s trust accounts, and noted numerous breaches of trust accounting rules that should have been reported to the Law Society.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
205 (a) - False or misleading documents
The Committee recommended the Member:
- accept a reprimand; and
- Pay expenses of $2,275.