Ms. Sharon Cheng - August 25, 2014

Ms. Sharon Cheng - August 25, 2014

Disciplinary Summary 

August 25, 2014 

Complaint 

CGA-BC received a complaint from the former employer of CGA Student, Ms. Sharon Cheng.  The complainant alleged that Ms. Cheng, in her role as Assistant Controller, issued unauthorized cheques, made payable to herself. 

Decision 

The Discipline Committee Panel found Ms. Cheng was in breach of CGA-BC’s Code of Ethical Principles and Rules of Conduct, in effect from September 21, 2013, as follows: 

2nd Ethical Principle – Trust and Duties because Ms. Cheng:

  • was in a position of trust with her employer and she failed to act in the interest of her employer by misappropriating funds for her personal use; and 
  • prepared (and issued) unauthorized cheques payable to herself to be used for her personal use without the knowledge or consent of her employer. 

Rule R101 – Discredit because as a student in the CGA Program of Professional Studies, and by virtue of committing the alleged misappropriation of funds from her employer, Ms. Cheng brought discredit to the Association and the accounting profession.  Further, the Notice of Civil Claim brought against Ms. Cheng is now part of the public record and brings discredit to the Association and the accounting profession.

Rules R102 – Unlawful Activity; R108 – Conduct Unbecoming; R401 – Association with Financial and Other Information; and R606(a) Detrimental Actions because,

  • Ms. Cheng misappropriated funds from her employer and this act is considered a fraudulent activity; 
  • Ms. Cheng perpetrated the fraud by using forged signatures on cheque authorization forms, forged signatures of signing authorities and making oral misrepresentations; and 
  • Ms. Cheng created false documentation in an attempt to cover up her activities in the misappropriations; 
  • Ms. Cheng misappropriated funds from her employer, which is considered a fraudulent activity.  As a student in the CGA Program of Professional Studies and by virtue of committing the alleged misappropriation of funds from her employer, Ms. Cheng brought discredit to the Association and the accounting profession. 

The Discipline Committee Panel found Ms. Cheng was not in breach of Rule R606(b) of CGA-BC’s Code of Ethical Principles and Rules of Conduct, in effect from September 21,2013, due to insufficient evidence. 

Discipline Order 

  • Removed from enrolment as a CGA student for 60 years from the date of this decision; 
  • Fined the maximum amount (for a student) of $2000; 
  • Ordered to pay full costs in the amount of $5069.03