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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.