Investigation Committee Determinations and Recommendations

The Member's Firm was contracted to provide Chief Financial Officer (CFO) services for a junior venture company (the "Company").  The Member was the designated person in the contract to provide those services. 

Unaudited interim financial statements of the Company were filed with securities regulators.  Under securities laws,  the Member, as CFO, was required to make certain statutory certifications of the filings.

The staff of the British Columbia Securities Commission (BCSC) questioned the accounting method used for a significant transaction of the Company. The staff of the BCSC subsequently issued a Cease Trade Order against the Company because, in the opinion of BCSC staff, the Company had not made satisfactory statutory securities filings.  The Member’s efforts to support the accounting treatment were insufficient to resolve the Cease Trade Order.  The Company restated the financial statements, and the Cease Trade Order was lifted by the BCSC after the Member resigned from the Company.

During the time the Member’s Firm was contracted to provide CFO services, the Member held a share position that was not disclosed in the Company's financial statements as the CPABC Code of Professional Conduct requires. The Committee noted that the Member properly disclosed their share transactions in other public securities filings (the SEDI system).

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
202.2 - Objectivity

The Committee recommended the Member:

1. Accept a reprimand; and
2. Pay expenses of $5,500.

While applying for membership in CPABC after completing the requirements for the CPA Professional Education Program, the Candidate failed to disclose a previous academic infraction issued by the Chartered Professional Accountants Western School of Business. The Candidate represents that the omission was due to an oversight.

The Investigation Committee determined the Candidate contravened Rule 103 of the CPABC Code of Professional Conduct (False or misleading applications).

The Committee recommended the Candidate accept a warning to be more careful in the future.

The Member performed specified audit procedures and completed a Law Society Reporting Form Trust Report for a law firm. The Report was completed and submitted to the Law Society of British Columbia.  The Law Society subsequently conducted a review of the Report.  The Member:

1. was not independent of the law firm as they were employed by the firm as Chief Financial Officer;
2. was unqualified to perform specified audit procedures;
3. provided inaccurate or misleading responses to the Law Society’s queries; and
4. did not have appropriate licensure from CPABC to conduct this work.

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

Rules:

101.1 - Compliance with governing legislation, bylaws, regulations and the Code
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
204.1 - Independence – Assurance and specified auditing procedures engagements
205 - False or misleading documents and oral representations
206.1 - Compliance with professional standards

Bylaw

700(1)&(2) - Licensure for Public Practice

The Committee recommended the Member:

1. Accept a reprimand;
2. Pay fine of $1,000;
3. Pay expenses of $3,188;
4. Successfully complete the CPABC professional development course Ethics in Professional Practice – What Canadian CPAs Need to Know; and
5. Provide confirmation to the Director, Professional Conduct that the Member contacted the Law Society and the law firm about the Committee’s determination.

The Member was retained by a client to perform specified audit procedures and complete a Law Society Reporting Form Trust Report for their client on two engagements. The Reports were completed and submitted to the Law Society of British Columbia. The Law Society subsequently conducted a review of the client’s trust accounts, and noted numerous breaches of trust accounting rules that the Member should have reported to the Law Society.

In addition, the Member was not independent of the client, as they also performed bookkeeping services for them.  The Member did not respond to Law Society queries during its review of the client’s transactions, and in this matter, provided information and responses to CPABC’s investigator which upon further enquiry, were incorrect or misleading.

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

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
204.1 - Independence – Assurance and specified auditing procedures engagements
205(a) - False or misleading documents
206.1 - Compliance with professional standards

The Committee recommended the Member:

1. Accept a reprimand;
2. Pay a fine of $2,500; and
3. Pay expenses of $4,358.

The Member self-reported to CPABC that, while an assurance partner with a firm, they did not adhere to the Canadian CPA Assurance Handbook, firm policy and other professional requirements with respect to file documentation and signoff. The Member personally completed various assurance working papers, and the financial statements and related assurance reports were issued before their work was reviewed. Additionally, the Member did not close out the assurance files within 60 days as per the Canadian Assurance Standard and firm policy.

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
206.1 - Compliance with professional standards

The Committee recommended the Member:

1. Accept a reprimand; and
2. Pay expenses of $1,175.

While applying for membership in CPABC, the Member failed to disclose a previous academic infraction issued by the Certified General Accountants Association of British Columbia. The Member represents the omission was due to an oversight.

The Investigation Committee determined the Member contravened Rule 103 of the CPABC Code of Professional Conduct (False or misleading applications).

The Committee recommended the Member accept a warning to be more careful in the future.

Mr. Suelzle incorrectly prepared a client’s personal tax return, making several material errors. When the Canada Revenue Agency made a time-sensitive request for additional information, Mr. Suelzle failed to respond and failed to advise his client. Mr. Suelzle did not adequately respond to repeated enquiries from the client as to the status of the client’s return.

During the investigation, Mr. Suelzle provided inadequate or incomplete responses to requests from the investigator.

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 - Due care
203 - Professional competence
205(a) - False or misleading documents and oral representations

The Committee recommended Mr. Suelzle:

1. accept a reprimand;
2. pay a fine of $25,000;
3. pay expenses of $5,145;
4. successfully complete a professional development course in effective communications;
5. enter into an arrangement with a senior member of the profession with expertise in practice management (the “Advisor”), the terms of which include:
   1. the Advisor will conduct an overall review of Mr. Suelzle’s practice management. The Advisor must periodically review and have periodic mentoring discussions with Mr. Suelzle to promote better understanding by Mr. Suelzle of applicable professional, practice management and ethical standards. The Advisor must meet with Mr. Suelzle at least once every three months; 
   2. The Advisor must be given access by Mr. Suelzle to sufficient documentation to allow the Advisor to understand the nature, extent and issues related to Mr. Suelzle’s practice relevant to this matter;
   3. This arrangement will last one year; and
   4.  By no later than April 30, 2024, Mr. Suelzle must provide written notification to the Director, Professional Conduct, that Mr. Suelzle has completed at least four meetings with the Advisor.