Ms. Emily Hoult, CPA, CA engaged in public practice through her firm Emily Hoult Professional Corporation CPAs (“Hoult CPA”). Hoult CPA performed an audit engagement on a corporation that issued shares to residents of British Columbia through an offering memorandum. Hoult CPA issued an unqualified audit opinion on the financial statements. The financial statements contained multiple instances of non-compliance with International Financial Reporting Standards, including:
- insufficient disclosure of material transactions and preferred shares;
- inappropriate revenue recognition; and
- no provision for income tax.
Ms. Hoult did not hold appropriate public practice licensing and Hoult CPA was not a registered firm at the time of performing the audit engagement. Ms. Hoult subsequently resigned from membership in CPABC.
The Investigation Committee determined that Ms. Hoult and Hoult CPA for having contravened the following:
Rules of the CPABC Code of Professional Conduct:
201.1 Maintenance of the good reputation of the profession
202.1 Integrity and due care
203 Professional competence
206.1 Compliance with professional standards
Bylaws:
700 (1) to (4) Public Practice by CPA Members
The Investigation Committee recommended that Ms. Hoult:
- accept a reprimand;
- pay a fine of $7,500;
- pay expenses of $4,480; and
- accept the publication of a public notice of this Determination and Recommendation which identifies Ms. Hoult.