A CPA student, while applying for membership in CPABC after completing the requirements for the CPA Professional Education Program, failed to disclose a previous Determination and Recommendation issued by CPABC Investigation Committee. The student represented that the omission was due to an oversight.
The Investigation Committee determined the Student contravened the following Rules of the CPABC Code of Professional Conduct:
103 - False or misleading applications
201.1 - Maintenance of the good reputation of the profession
The Investigation Committee recommended the Student:
- Accept a reprimand;
- Pay a fine of $3,000;
- Pay expenses of $816; and
- Complete an ethics course that is satisfactory to the Director, Professional Conduct.
An executor of the estate of a deceased individual engaged the Member to prepare the individual’s and estate’s tax returns. After receiving a communication from the client which the Member considered insulting, the Member abruptly terminated the engagement which resulted in inconvenience and delays in settling the affairs of the estate.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct following Rules:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
The Investigation Committee recommended the Member:
- Accept a reprimand; and
- Pay expenses of $2,977.
An executor of the estate of a deceased individual engaged the Member to prepare the individual’s and estate’s tax returns. After receiving a communication from the client which the Member considered insulting, the Member abruptly terminated the engagement which resulted in inconvenience and delays in settling the affairs of the estate.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct following Rules:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
The Investigation Committee recommended the Member:
- Accept a reprimand; and
- Pay expenses of $2,977.
The Member was engaged by a client to prepare specialized tax returns for a corporation. The Member did not prepare the returns expeditiously and failed to keep the client informed of the status of the engagements, despite repeated requests from the client. During the investigation, the Member did not respond to requests of CPABC including requests from the investigator to produce documents.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
104.1&.2 - Requirement to co-operate
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
The Investigation Committee recommended the Member:
- Accept a reprimand;
- Pay a fine of $1,000; and
- Pay expenses of $3,425.
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.
The Member provided tax preparation services to eight persons in British Columbia without holding current licensure under Bylaw 700.
The Investigation Committee determined the Member contravened Bylaw 700 of the Organization of Chartered Professional Accountants of British Columbia.
The Investigation Committee recommended the Member:
- Accept a reprimand; and
- Pay partial expenses of $1,000.
The Member is a licensed practitioner. Their Firm provided compilation business services to a client for 2020 and 2021. The client was operating a new business and was unfamiliar with certain taxation requirements. The Member did not ensure that the client understood the engagement on a timely basis and did not communicate sufficiently with the client concerning the client’s taxation requirements and the nature, timing and extent of the services.
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 - Due care
206 - Compliance with professional standards
214(b) - Fee quotations and billings
The Investigation Committee recommended the Member:
- Accept a reprimand;
- Pay expenses of $2,835; and
- By December 31, 2024, attend and successfully complete a professional development course in practice management which is satisfactory to the Director, Professional Conduct.
While finalizing the 2018 audited financial statements of a client, the Member was informed in July 2019 of allegations of financial misconduct in the affairs of the client. The Member properly determined that the 2018 financial statements should not be released without satisfactory explanations being obtained. While the Member’s January 2022 decision to resign as auditor appeared reasonable based on the information available, the Member’s interactions, or lack thereof, with the client between July 2019 and January 2022 did not maintain the good reputation of the profession or reflect due care.
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
The Investigation Committee recommended the Member:
- Accept a reprimand; and
- Pay partial expenses of $2,800.
Married clients retained the Firm to, among other things, prepare and file Canadian personal tax returns which included foreign income. The Firm did not perform the work competently and rendered fee billings which in the circumstances were not fair and reasonable.
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
203 - Professional competence
214(b) - Fee quotations and billings
The Investigation Committee recommended the Firm:
- Accept a reprimand;
- Pay a fine of $5,000;
- Pay expenses of $3,000;
- Designate a partner or senior professional to successfully complete by the next available date a professional development course in international taxation that is satisfactory to the Director, Professional Conduct;
- No later than June 30, 2024, enter into an arrangement at its expense with a senior member of the profession with expertise in practice management (the “Advisor”), who is acceptable to CPABC’s Director, Professional Conduct, with the following terms:
- At the outset of the arrangement, the Firm must provide the Advisor with a copy of this Determination and Recommendation;
- The Advisor will conduct an overall review of the Firm’s practice management as it relates to engagement letters, billing practices and the management of client relationships. The Advisor must periodically meet with the Managing Partner at the outset of the arrangement and once toward the end of the arrangement;
- The Advisor must be given reasonable access by the Firm to sufficient documentation of the Firm to enable the Advisor to undertake the arrangement;
- This arrangement will last one year; and
- By no later than July 30, 2025, the Firm must provide written notification to the Director, Professional Conduct, that the Firm has completed the engagement.
The Member did not communicate clearly to a client at the conclusion of an engagement and did not ensure that communications from the client received a response.
The Investigation Committee determined the Member contravened Rule 201.1 of the CPABC Code of Professional Conduct.
The Investigation Committee recommended the Member:
- Accept a reprimand; and
- Pay partial expenses of $1,500.
The Member had responsibility for certain clients’ records which were destroyed after they became former clients. At least one former client suffered hardship as a result, as they state that they were unable to respond to significant queries of the Canada Revenue Agency.
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
212.2 - Handling property of others
218 - Retention of documentation and working papers.
The Investigation Committee recommended the Member:
- Accept a reprimand; and
- Pay partial expenses of $500.
The Member engaged in public practice without appropriate licencing from CPABC between 2021 and 2023. They promoted their public practice and provided tax advice through a website, social media and podcasts. The Member misrepresented the size of their client base through an online entry on social media.
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
203 - Professional competence
205 - False or misleading documents or oral representations
The Investigation Committee recommended the Member:
- Accept a reprimand;
- Pay a fine of $1,500;
- Pay expenses of $1,420; and
- Complete a Professional Development course on managing a public practice.