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The Member was employed by a non-profit organization to be an accountant, and subsequently became Director of Finance; a senior financial role with the organization. The Member misled the employer concerning the status of work and failed to perform critical financial functions, such as reconciling the organization’s bank account, preparing financial statements, and filing tax returns and other information on a timely basis.  This resulted in financial penalties to the organization and caused a significant delay in the preparation of the annual audit.  The Member’s employment was terminated by the organization.

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(b) - False or misleading documents and oral representations
206.1 - Compliance with professional standards

The Committee recommended the Member:

  1. accept a reprimand;
  2. pay a fine of $1,500;
  3. pay costs of $2,592 plus GST; and
  4. attend and successfully complete by the CPABC courses:
    a. Controllership Operational Skills Program; and
    b. PD Nexus – Public Practice Insights.

The Member was the accountant for a businessperson and their elderly father. The Member had access to some of their bank accounts and made transactions in them, without ensuring that such an arrangement was properly documented. When the businessperson made a complaint to CPABC concerning an amount of money the Member had received, the Member initially refused to return the funds unless the complainant withdrew the complaint to CPABC.  Subsequently the Member returned the funds to the complainant.

The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows,

105 - Hindrance, inappropriate influence and intimidation
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
212.1 - Handling of trust funds and other property

The Committee recommended the Member accept a reprimand.  In making this recommendation, the Committee took into account evidence presented concerning the personal health situation of the Member.

During the course of a separate investigation, it was discovered that the Member:

  1. Issued compilation financial statements when not licensed to do so;
  2. Did not use the services of a mentor which was a term of the practice license,
  3. Operated a sole proprietorship using a firm name contrary to written direction from CPABC staff; and
  4. Did not accurately reflect the proprietorship’s status and age on the firm website.

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
104.1 - Requirement to co-operate
202.1 - Integrity and due care
203 - Professional competence
205 - False or misleading documents and oral representations
206 - Compliance with professional standards
217.1 - Advertising
401 - Practice names

Bylaw:

700 - Public Practice by CPA Members             

The Committee recommended the Member:

  1. Accept a reprimand;
  2. Pay expenses of $3,000 plus GST;
  3. Pay a fine of $2,000;
  4. Agree to not perform compilation engagements for one year from the date of this Determination and Recommendation, during which time their public practice licence would be “Other Regulated Services”.  After one year, the Respondent may apply to the Public Practice Committee for a different category of public practice licence; and
  5. Attend and successfully completes by September 30, 2021 the CPABC Professional Development live webinar Compilation Engagements – Application of the New CSRS 4200.

The Member was engaged by an individual to amend their personal tax return with the Canada Revenue Agency.  The Member did not reply to numerous messages from the individual sent over a period of several months.

The Investigation Committee determined the Respondent contravened CPABC Code of Professional Conduct Rule 201.1 (Maintenance of the good reputation of the profession).

The Committee recommended the Member accept a reprimand.  In making this recommendation, the Committee took into account that the Member refunded the individual the professional fees that were charged by the Member.

The Member was engaged to complete a client’s Canadian and US personal tax returns. 

The Member did not:

  • Document important terms of the engagement in an engagement letter with the client; including advising the client that another accountant would be sub-contracted to prepare the US tax returns;
  • Prepare and complete the returns on a timely basis; and
  • Respond to communications from the client promptly.

The Investigation Committee determined the Respondent 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
206.1 - Compliance with professional standards
214 - Fee quotations and billings

The Committee recommended the Member:

  1. Accept a reprimand;
  2. Pay costs of $1,825 plus GST; and
  3. Attend and successfully complete the CPABC course PD Nexus: Public Practice Insights.

The Member completed personal Canadian tax returns for a client. The client made over-contributions to their Registered Retirement Savings Plan and needed to take action and make filings (T1-OVP) with the Canada Revenue Agency (CRA) to correct the over-contributions. The Member:

a) Initially failed to file the T1-OVP, resulting in taxes, penalties and interest being charged to the client;
b) Later filed the T1-OVP which CRA did not receive. The Member did not keep a copy of the T1-OVP which was filed;
c) Failed to advise the client to rectify the over-contributions and the potential tax consequences for not doing so; and
d) Failed to return repeated client communications.

The Investigation Committee determined the Respondent contravened the CPABC Code of Professional Conduct as follows:

201. - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
205 - False or misleading documents and oral representations
218 - Retention of documentation and working papers

The Committee recommended the Member:

  1. Accept a reprimand; and
  2. Pay expenses of $3,051 plus GST.

The Member provided free accounting and business management services to a family member and a close family friend (the “clients”). The Member did not approach the engagement with sufficient formality and did not ensure that the clients agreed to all the transactions which occurred.

The Investigation Committee determined the Respondent 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

The Committee recommended that the Member accept a reprimand.

The Member shared an office space with a non-CPA who provided bookkeeping services (the “bookkeeper”).  The Member also performed management functions for the bookkeeper which caused some of the bookkeeper’s clients to be unaware of the distinction between the Member’s services as a CPA and the bookkeeper’s services.  The bookkeeper was also providing legal services to clients in apparent contravention of the Legal Profession Act.

The Investigation Committee determined the Respondents 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
213 - Unlawful activity
406.1 & 2 - Responsibility for a non-registrant
408.1 - Association with non-registrant in public practice

The Committee recommended the Respondent:

  1. Accept a reprimand;
  2. Pay a fine of $2500; and
  3. Pay expenses of $2659 plus GST.

Ada-Yi Man & Associates Inc. and Ada-Yi Man, CPA, CGA (the “Respondents”) performed assurance services but failed to use the services of a mentor as they were required to do; issued assurance reports which contained material errors; were not truthful and provided inaccurate responses to CPABC during the course of a public practice review and subsequent investigation.

The Investigation Committee determined the Respondents contravened the CPABC Code of Professional Conduct as follows:

101.1 - Compliance with governing legislation, bylaws, regulations and the Code
104.1 - Requirement to co-operate
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
206.1 - Compliance with professional standards

The Committee recommended that the Respondents:

  1. Accept a reprimand;
  2. Pay expenses of $7,438 plus GST; and
  3. Attend and successfully complete by the CPABC Professional Development courses:
    1. Compilation Engagements – Application of the New CSRS 4200; and
    2. Ethics at Our Core.

Charlton & Company issued audit reports on the financial statements of a private mutual fund.  A material investment of the fund was impaired, but the carrying value of investment was not written-down in the financial statements to the fair value as required by generally accepted accounting principles.  Charlton & Company’s audit work to assess the fair value of the investment was insufficient and was not in accordance with generally accepted auditing standards. The firm’s working papers were inadequate and improperly dated.

The Investigation Committee determined that Charlton & Company 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
206.1 - Compliance with professional standards
218 - Retention of documentation and working papers

The Committee recommended that:

  1. Charlton & Company accept a reprimand;
  2. Robert Charlton, CPA, CA agrees that his practice licence be permanently cancelled;
  3. Robert Charlton, CPA, CA agrees to not re-apply for a practice licence; and
  4. Charlton & Company pay costs of $2,025.