Disciplinary proceedings were brought by the Public Company Accounting Oversight Board (PCAOB) in the United States against the Member and their firm as a result of failing to comply with PCAOB rules. The PCAOB found the Member altered firm working papers and that employees of the firm that were supervised by the Member improperly backdated working papers. The Member also failed to co-operate with the PCAOB’s inspection of the firm.
PCAOB issued an order that:
- Censured the Member and the firm;
- Revoked the firm’s registration;
- Barred the Member from being associated with a public accounting firm registered with the PCAOB; and
- Imposed a penalty of US$50,000.
The Member also failed to self-report the PCAOB’s Order to CPABC as the Rules of the CPABC Code of Professional Conduct (the Code) and Bylaws require.
The Investigation Committee determined the Member contravened the following:
Rules of the Code:
102.3 - 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 - Policies and procedures for the conduct of a practice
Bylaw:
511(1) - Obligation to Report
The Committee took into account the PCAOB sanctions. The Committee recommended the Member:
- Accept a reprimand;
- Pay a fine of $1,000 for a breach of Rule 102.3 and Bylaw 511(1); and
- Pay expenses of $2,836.