Investigation Results/Statistics
Other Board Orders During 2008
Nickerson, Merri, CPA, Spokane. December 16, 2008.
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; must obtain written permission from the Board before restriction may be lifted.
Messenger Finance Corp., Seattle. December 11, 2008.
Violation: Quality Assurance Review referral--adverse peer review report.
Sanctions:CPA firm agrees to continue to comply with the terms of firm's January 2007 agreement with the AICPA and WSCPA; pay $500 fine; reimburse Board $250 investigative and legal costs; and reimburse the Board $1,115 for costs of a field review of the firms' practice by a Board technical consultant.
Grover, Nathan, Bellingham. November 21, 2008.
Violation:Non-CPA use of "public accountant" title without benefit of a valid Washington state individual CPA practice license.
Sanctions:Agreement to immediately cease restricted practices; $1,000 fine; reimburse Board $150 for costs; and document completion of ethics course.
Frey, Penelope, CPA, Kirkland. October 31, 2008.
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; must obtain written permission from the Board before restriction may be lifted.
Carper, Barbara, CPA, Seattle. October 10, 2008.
Violation: Continued use of the "CPA" title in firm name after the expiration of CPA firm license.
Sanctions: CPA agrees to remove CPA from the firm's legal name and take proactive steps to remove CPA from the firm name on all signage and known web site; pay $750 fine, reimburse Board $150 for legal and investigation costs; and complete four hours continuing education in ethics and regulation applicable to the practice of public accounting in Washington State.
Loyd, Kenneth, Bellingham. August 14, 2008.
Violation: Failure to return client records, holding out as a CPA and CPA firm without valid practice licenses, failure to report revocation of escrow agent license by the Department of Financial Institutions, failure to pay business and occupation taxes to the Washington State Department of Revenue, and failure to pay taxes to the IRS that resulted in a tax lien.
Sanctions: CPA voluntarily surrendered his CPA certificate and eligibility to renew or reinstate his practice licenses for ten years. As a condition for reinstatement, individual must requalify for the license, pay $2,500 fine and reimburse the Board $1,000 for costs.
Frind, Gary, CPA, Tacoma. July 21, 2008.
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; must obtain written permission from the Board before restriction may be lifted; reimburse Board $200 for investigative and legal costs.
Anderson, Gary, CPA, Bainbridge Island. July 7, 2008.
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; must obtain written permission from the Board before restriction may be lifted; reimburse Board $150 for investigative and legal costs.
Unnamed Non-Licensee Firm Owner,* Lacey. June 16, 2008.
Violation: Non-licensee firm owner failed to secure timely delivery of tax returns to clients for filing with the IRS. Client incurred penalties for the late filing of the tax returns and late payment of taxes owed.
Sanctions: Non-licensee firm owner agreed to pay $1,500 in restitution to complainant and reimburse Board $500 for investigative and legal costs.
KPMG, LLP, Seattle. March 26, 2008.
Violation: CPA firm entered into a Deferred Prosecution Agreement with the United States Department of Justice. The CPA firm admitted that it prepared false and fraudulent tax returns for certain tax shelter clients, including Washington State residents. The CPA firm agreed to pay the federal government a fine and implement and maintain a compliance and ethics program.
Sanctions: CPA firm agreed to pay a $10,000 fine and reimburse the Board $1,500 for investigative and legal costs.
DiaEze, Sol, CPA, Tacoma. March 25, 2008.
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; must obtain written permission from the Board before restriction may be lifted.
Roth, Mary, Kennewick. March 20, 2008.
Violation: Use of CPA title and holding out for the practice of public accounting with a lapsed license.
Sanctions: Agreement to immediately cease restricted practices; pay $1,000 fine; and reimburse Board $200 for investigative and legal costs.
Hanson, Linda, CPA. Seattle. February 29, 2008.
Violation: Alleged unauthorized withdrawals from an employer's/client's business and operating account and charges to the business' credit card for personal use totaling at least $150,000.
Sanction: Voluntary surrender of CPA certificate and individual license to practice public accounting on or before April 15, 2008; Not eligible for reinstatement for 10 years and until Hanson makes complete application, pays $10,000 fine, reimburses Board $250 investigative and legal costs; and any other requirements imposed by the Board.
Leyde, Brian, CPA. Edmonds. February 4, 2008.
Violation: Transfer of client information without the consent of the CPA's employers.
Sanction: Board reprimand; CPA must pay $1,000 fine and reimburse Board $250 investigative and legal costs; complete four hours continuing education in ethics and regulation applicable to the practice of public accounting in Washington State.
Heitkemper, Peter McClory, CPA, Spokane. January 14, 2008.
Violation: (1) Quality Assurance Review referral - technical deficiencies; (2) Consent Agreement and Order with Oregon State Board of Accountancy permanently prohibiting CPA from performing audit, attest, or compilation work in Oregon.
Sanctions: Board reprimand; 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; to obtain written permission from the Board to list restriction; pay $2,000 fine; and reimburse Board $500 for legal and investigative costs.
*The Board agreed not to publish the name of the CPA.
See Also:
2008 License and certificate suspensions (including stayed suspension) and revocations