A client of the Firm was purchased by a new owner who was unfamiliar with financial accounting and the Firm’s practices. The Firm did not ensure that the new owner understood the Firm’s engagement with the client on a timely basis and did not communicate sufficiently with the new owner concerning the nature, timing and extent of the services.
The Investigation Committee determined the Firm contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Due care
206.1 - Compliance with professional standards
The Investigation Committee recommended the Firm:
- Accept a reprimand;
- Pay a fine of $2,000; and
- Pay expenses of $3,698.