Investigation Results/Statistics

Other Board Orders During 2007

Williams & Webster, P.S., Spokane. December 26, 2007.
Violation: On June 12, 2007, the Public Company Accounting Oversight Board (PCAOB) issued an Order Instituting Disciplinary Proceedings, Making Findings, and Imposing Sanctions censuring the CPA firm.
Sanctions: CPA firm censured.

Williams, Kevin, CPA, Spokane. December 26, 2007.
Violation: On June 12, 2007, the Public Company Accounting Oversight Board (PCAOB) issued an Order Instituting Disciplinary Proceedings, Making Findings, and Imposing Sanctions barring Williams from being an associated person of a PCAOB registered public accounting firm for two years.
Sanctions: Stayed suspension of CPA certificate and individual license until June 12, 2009; CPA agrees to refrain from providing any attest services for entities required to report to the Securities and Exchange Commission (SEC) until the PCAOB consents to CPA's association with a PCAOB registered public accounting firm; submit to a field review of CPA's practice; pay $4,000 fine, and reimburse Board $250 for legal and investigative costs.

Webster, John G., CPA, Spokane. December 26, 2007.
Violation: On June 12, 2007, the Public Company Accounting Oversight Board (PCAOB) issued an Order Instituting Disciplinary Proceedings, Making Findings, and Imposing Sanctions barring Webster from being an associated person of a PCAOB registered public accounting firm for one year.
Sanctions: Stayed suspension of CPA certificate and individual license until June 12, 2008; CPA agrees to refrain from providing attest services including issuing audited, reviewed or compiled reports to financial statements; pay $2,500 fine, and reimburse Board $250 for legal and investigative costs.

Beckman, Louis, CPA, Kennewick. December 13, 2007.
Violation: Quality Assurance Review referral - technical deficiencies.
Sanctions: CPA and CPA firm agree to refrain from providing attest services including issuing audited, reviewed or compiled reports to financial statements with the exception of management-use only compilations meeting the standards established under SSARS #8, annual reports in a prescribed form meeting the standards established under SSARS #3 for use by the Grand Elks Lodge, and management - use only interim compilation reports to financial statements meeting the standards established under SSARS #8 for individual Washington State Elks lodges; must obtain written permission from the Board before restriction may be lifted.

Owen, Thomas, CPA, Kennewick. December 4, 2007.
Violation: Issuance of reports to financial statements without benefit of a CPA firm license.
Sanctions: Issuance of CPA firm license on condition that CPA pays $1,500 fine; reimburses Board $500 for investigative and legal costs; provides the Board with a listing of all clients CPA provided attest services; and notifies each client in writing for whom the CPA provided attest services that CPA performed the work without benefit of a valid Washington state CPA firm license; participates in Board's 2008 QAR.

Bedinger, James, CPA, Piedmont, CA. December 3, 2007.
Violation: Issuance of audit reports for Washington client and publication on web site as licensed firm in Washington State without benefit of a valid Washington State CPA firm license.
Sanctions: Agreement to immediately cease holding out firm as a firm of CPAs licensed in Washington; pay $750 fine, reimburse Board $375 for investigative and legal costs; complete four hours in ethics and regulation applicable to the practice of public accounting in Washington State.

Enger, Otto, CPA, Seattle. December 3, 2007.
Violation: Quality Assurance Review referral - technical deficiencies.
Sanctions: CPA and CPA firm agree to refrain from providing attest services including issuing audited, reviewed or compiled reports to financial statements; before offering or issuing reports on financial statements CPA must obtain CPA firm license and submit first audit, review, and compilation reports, accompanying financial statements and working papers for Board review prior to issuance.

Passeck, Michael A., Tacoma. November 2, 2007.
Violation: Use of CPA title and holding out for the practice of public accounting with a lapsed license and without benefit of a valid Washington State CPA firm license.
Sanctions: Agreement to immediately cease restricted practices; $1,500 fine and reimburse Board $250 for investigative and legal costs.

Leston, Daniel M., Kent. September 28, 2007.
Violation: Unlicensed Illinois CPA use of CPA title without benefit of a valid Washington state individual CPA practice license.
Sanctions: Agreement to immediately cease restricted practices; $750 fine and reimburse Board $250 for investigative and legal costs.

Jack Person, CPA. Snohomish. July 11, 2007.
Violation: Transfer of client information without the consent of the CPA's employers.
Sanctions: Board reprimand; CPA must pay $1,000 fine and reimburse Board $250 investigative and legal costs.

Joy D. King. Seattle. June 25, 2007.
Violation: Unlicensed District of Columbia CPA use of CPA title and holding out for public practice without benefit of a valid Washington state individual CPA practice license.
Sanctions: Agreement to immediately cease restricted practices; King must pay $1,000 fine and reimburse Board $400 investigation and legal costs as a condition of licensure.

Unnamed CPA.* Ephrata. June 15, 2007.
Violation: Issuance of audit report that was not in compliance with applicable professional standards - Statement on Auditing Standards; subsequent reissued compilation report was not in compliance with the applicable professional standards.
Sanctions: CPA agrees to pay $2,500 fine; reimburse Board $825 investigation and legal costs; submit to a field review at CPA's expense; preissue review of next three compilation reports, next three review reports, and next three audit reports; 40 hours CPE; ensure professional staff complete 16 hours CPE in financial statement disclosures and compilation and accounting updates.

Steven Davis, CPA, Olympia. June 4, 2007.
Violation: Advised client that a review of financial statements was appropriate instead of audit as required by RCW; Review report, audit reports, and financial statements did not conform with technical standards.
Sanctions: CPA agrees to if authorized by client perform audits for 2002 and 2003 or advise client's governing body to notify members financial statements can no longer be relied upon; restate and reissue audit reports and financial statements to conform to Board's recommendations; reimburse Board $1,200 for investigative and legal costs; pay $1,000 fine; complete 8 hours of Continuing Professional Education in common interest realty associations and professional ethics that is directly applicable to the practice of public accountancy in the state of Washington; submit the next audit report, accompanying financial statements, and working papers for preissue review by one of the Board's technical consultants.

Donna Kay Seal. Rockford. June 4, 2007.
Violation: Non-CPA use of CPA title without benefit of a valid Washington state individual CPA practice license.
Sanctions: Agreement to immediately cease restricted practices; $500 fine.

Deanna Gildea. Burton. April 5, 2007.
Violation: Unlicensed California CPA use of CPA title and holding out for public practice without benefit of a valid Washington state individual CPA practice license.
Sanctions: Agreement to immediately cease restricted practices; $1,000 fine.

Jiebo Xu, CPA. Renton. April 5, 2007.
Violation: Failure to license CPA firm; use of CPA title with a name other than name registered with the Board.
Sanctions: Agreement to refrain from using CPA in association with a name that is not registered with the Board and to refrain from assuming the designation CPA as part of a firm name until firm is properly licensed, pay $750 fine, reimburse Board $500 for costs, and complete Washington State ethics and regulations continuing education.

Kimberly A. Strunk. Vancouver. March 29, 2007.
Violation: Non-CPA issuance of "compilation" report without benefit of a valid Washington state individual CPA practice license.
Sanctions: Agreement to immediately cease restricted practices.

Jeffrey L. Phelps. Pullman. February 23, 2007.
Violation: Inappropriately used the restricted title, CPA, on a political campaign billboard after such status was no longer valid.
Sanctions: Agreement to immediately cease restricted practice; As a condition for renewal individual must pay $500 fine, reimburse the Board $300 for administrative and legal costs, complete four hours of ethics CPE applicable to the practice of public accounting in Washington State, and complete AICPA's course "Professional Ethics for CPAs" with a score of at least 90%.

Sandra Thorpe. Seattle. February 21, 2007.
Violation: Non-CPA use of CPA title without benefit of a valid Washington state individual CPA practice license.
Sanctions: Agreement to immediately cease restricted practices.

Scott E. Adams of Adams Accounting Service. Otis Orchards March 21, 2007.
Violation: Non-CPA issued compilation report to financial statements without benefit of a valid Washington state individual CPA practice license.
Sanctions: Agreement to immediately cease restricted practices and pay $500 fine.

*The Board agreed not to publish the name of the CPA.

2007 Results of Investigations

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