2011 Other Board Orders

Nelson, John R. Jr., Newman Lake. December 15, 2011.
Violation: 
Failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA license.
Sanctions: Nelson agreed to the retirement of his CPA license, pay a $1,000 fine, and reimburse the Board $500 for investigative and legal costs. Prior to renewal/reactivation of Nelson’s license, Nelson must make a complete application and comply with all conditions for renewal including satisfactorily documenting the completion of CPE. Nelson may not use the CPA title in any way while the CPA license is retired.
Board Order

Hillis, Jolene, Gig Harbor. November 15, 2011.
Violation: Two cases of failure to return client records after clients’ reasonable notice.
Sanctions: Board reprimand in each case; CPA must pay a $2,000 fine ($1,000 for each complaint) and reimburse the Board $800 investigation and legal costs ($400 for each complaint). Board Orders, ACB-1323 and ACB-1324.

Hyde, Scott, Bellevue. October 22, 2011.
Violation: Misrepresentation in filing an application for renewal of CPA license; failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA license.
Sanctions:Hyde must pay a $1,115 fine and reimburse the Board $250 investigation and legal; complete 52 hours of CPE by December 31, 2011, for application to the 2007/2009 CPE reporting period; complete 30 hours of CPE during each calendar quarter beginning January 1, 2012 through December 31, and complete four hours of CPE in a Board approved course in ethics and regulation during the period October 1, 2012, through December 31, 2012. Board Order.

Han, Shaun T. and Shaun T. Han, CPA, P.S., Seattle. October 13, 2011.
Violation: Failure to respond to inclusion of the firm in the Board’s 2009 Quality Assurance Review (QAR) program. Failure to complete the Continuing Professional Education required for renewal. Han’s individual and firm licenses lapsed June 30, 2010.
Sanctions: Prior to and as a condition for reinstatement of his individual CPA license Han must (1) submit a complete reinstatement application with the required fee and continuing professional education (CPE); (2) pay a $750 fine; and (3) reimburse the Board $750 for investigative and legal costs.  If Han applies for and the Board issues a CPA firm license, Han must submit the first audit report, financial statements, and working papers he prepares for a client to the Board for preissue evaluation at his expense.  Han may not use the CPA title or hold out for the practice of public accounting as a CPA or CPA firm without benefit of valid Washington State CPA licenses.  Han may not perform or offer to perform compilation or attest services without a valid CPA firm license. Board Order.

Caughell, John M., Vancouver. October 13, 2011.
Violation: Registration with three Washington State government entities under the name “John M. Caughell CPA PC” and reference to Constant Profit Advisors as a “CPA” firm without benefit of a valid CPA firm license; Failure to furnish in writing a full and complete response to Board inquiries. Caughell’s individual license lapsed June 30, 2010.
Sanctions: Caughell must pay a $1,500 fine and reimburse the Board $1,000 investigation and legal costs within 60 days of the Board’s order; Document correction of the entity name registered with the Department of Revenue, Department of Licensing, and the Secretary of State and steps taken to remove any reference to CPA in connection with his name from marketing documents, advertising websites, telephone directories within 45 days of the Board’s order; Complete four hours of Continuing Professional Education (CPE) in a Board approved course in ethics and regulation within the six-month period preceding any application for reinstatement of his individual CPA license. Caughell may not use the CPA title or hold out for the practice of public accounting as a CPA or CPA firm without benefit of valid Washington State CPA licenses. Board Order.

Harris, Thomas J., Seattle. September 27, 2011.
Violation: Quality Assurance Review (QAR) referral; Technical deficiencies and failure to respond to Board requests for documents.
Sanctions:  CPA and CPA firm agree pay $1,500 fine, reimburse the Board $250 for investigative and legal costs, provide the Board with evidence of a PCAOB inspection, and provide the Board with evidence of an AICPA peer review. Board Order.

Wechter (Hill Willbanks), Regina, Straight Line Accounting Services, Hillsboro, Oregon. September 27, 2011.
Violation: Willbanks Wechter represented herself and her firm as a certified public accountant to the Internal Revenue Service and to a Washington client without benefit of Washington State CPA licenses. Willbanks Wechter has not successfully passed the Uniform CPA Examination as a candidate of Washington State and nor has she made application for a Washington CPA license. In June 2010, the Oregon State Board of Accountancy entered a Final Order by Default against Willbanks Wechter for using the title certified public accountant and the designation CPA without holding an active permit.
Sanctions:  Willbanks Wechter agreed to refrain from restricted practices, pay a $5,000 fine, and reimburse the Board $250 for investigative and legal costs. Board Order.  Board Order.

Vazquez, Sonya, Port Orchard. September 25, 2011.
Violation: Vazquez failed to properly complete tax services and return client records after reasonable notice; Vazquez continued to use “CPA” after the Board on May 14, 2007, suspended her CPA certificate and eligibility to renew or reinstate her individual and firm license.
Sanctions: The Board extended the suspension of Vazquez’ CPA certificate set out in ACB-960 to October 1, 2011; the Board agreed to reinstate Vazquez’ individual CPA license and eligibility to obtain a firm license effective October 1, 2011, provided Vazquez pays a $1,500 fine and reimburses the Board $500 for investigative and legal costs. Vazquez agreed to complete four hours of continuing professional education in Board approved ethics and regulation with specific application to the practice of public accounting in Washington State and, for a period of year, respond to any Board inquiries regarding any client complaints within five business days. Board Order.  Board Order.

Taylor, Robert, Bothell.  May 8, 2011.
Violation: Public Company Audit Oversight Board (PCAOB) revoked Taylor’s registration and barred Taylor from being an associated person of a registered public accounting firm for violation of PCAOB rules and auditing standards.
Sanctions:  CPA and CPA firm agree pay $1,500 fine, reimburse the Board $250 for investigative and legal costs, complete four hours of continuing professional education in Board approved ethics and regulation with specific application to the practice of public accounting in Washington State and refrain from providing attest services including issuing audit, and review reports on financial statements, and compilation reports on financial statements with the exception of management-use only compilations meeting the standards under SSARS #8 as codified in SSARS #19 issued by the AICPA.  The CPA and CPA firm must obtain written permission from the Board before the Board will lift the restriction.  Board Order.

Perron, Ronald, Bellevue.  May 7, 2011.
Violation: Conflict of interest. CPA filed a declaration in a dissolution action adverse to one party based on knowledge gained through service provided to two clients.
Sanctions:  CPA agrees to pay $1,000 fine, reimburse the Board $250 for investigative and legal costs, and complete four hours of continuing professional education in Board approved ethics and regulation with specific application to the practice of public accounting in Washington State.  Board Order.

Cichocki, Willow, Richland. May 3, 2011.
Violation: Misrepresentation in filing an application for renewal of CPA license; and failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA license.
Sanctions:  Cichocki agreed to pay a $1,505 fine, reimburse the Board $250 for investigative and legal costs, and to the retirement of her CPA license.  Prior to renewal/reactivation of Cichocki’s license, Cichocki must make a complete application and comply with all conditions for renewal including satisfactorily documenting the completion of CPE. Cichocki may not use the CPA title in any way while the CPA license is retired.  Board Order.

Moore, Wendy, Lake Tapps. March 31, 2011.
Violation:  Failure to respond to Board request for documentation to support compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA license.
Sanctions:  Moore agreed to refrain from using the CPA designation or holding out as a CPA until she applies for and the Board reinstates her CPA license.  Prior to reinstatement of Moore’s license, Moore must make a complete reinstatement application, comply with all conditions for reinstatement including satisfactorily documenting the completion of CPE, pay a $750 fine, and reimburse the Board $250 for investigative and legal costs.  Board Order.

Hack Soo Lim, CPA and Samuel H. Lim, CPA, PS; Edmonds.  February 27, 2011.
Violation:  Quality Assurance Review referral; Technical deficiencies
Sanctions:  CPA and CPA firm agree to pay $1,000 fine, reimburse the Board $250 for investigative and legal costs, complete 16 hours of Board approved continuing professional education in compilation and review and financial statement disclosure, document acquisition of library enhancements, and submit to the Board every report on financial statements for one year for preissue evaluation at the CPA’s expense.  Board Order.

Michael C. Wade, CPA, PS; Vancouver.  February 26, 2011.
Violation:  Quality Assurance Review referral – CPA and CPA firm voluntarily sought a practice limitation
Sanctions:  CPA and CPA firm agree refrain from issuing audit, review, other attestation, or compilation reports on financial statements with the exception of management-use only compilations meeting the standards under SSARS #8 as codified in SSARS #19 issued by the AICPA.  The CPA and CPA firm must obtain written permission from the Board before the Board will lift the restriction.  Board Order.

Ro, Chung, Long & Associates, CPA, PS; Seattle. February 18, 2011.
Violation:  Quality Assurance Review referral – technical deficiencies.
Sanctions:  CPA firm agrees to pay a $500 fine, reimburse the Board $250 for investigative and legal costs, and refrain from issuing audit, review, other attestation, or compilation reports on financial statements with the exception of management-use only compilations meeting the standards under SSARS #8 as codified in SSARS #19 issued by the AICPA.  The CPA firm must obtain written permission from the Board before the Board will lift the restriction.  Board Order.

Lee, Andrew Kwok Hung, Hong Kong.  January 22, 2011.
Violation:  Misrepresentation in filing an application for renewal of CPA license; and failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA license.
Sanctions:  Lee agreed to the retirement of Lee’s CPA license.  Prior to renewal/reactivation of Lee’s license, Lee must make a complete application, comply with all conditions for renewal including satisfactorily documenting the completion of CPE, paying a $1,480 fine, and reimbursing the Board $250 for investigative and legal costs.  Lee may not use the CPA title in any way while the CPA license is retired.  Board Order.

Jacob Hanes, Graham. January 22, 2011.
Violation:  Hanes held himself out as a CPA and his firm out as a CPA firm without benefit of Washington State CPA licenses.   Hanes failed to timely return records to clients after reasonable requests.  Hanes successfully completed the CPA examination in July 2007.  The Board has not issued an individual CPA license or a CPA firm license to Hanes.
Sanctions:  Hanes agreed to refrain from restricted practices until he is licensed to do so under Washington State law.  Hanes agreed to pay a $2,500 fine, reimburse the Board $750 for investigation and legal costs, complete four hours of continuing professional education in Board approved ethics and regulation with specific application to the practice of public accounting in Washington State; engage a technical consultant with qualifications satisfactory to the Board to evaluate Hanes’ practice management structure and again six months later; and provide the technical consultants’ reports to the Board. Board Order

Jan Kallshian, Arlington. January 15, 2011.
Violation:  While residing and working in Washington State, Kallshian, who holds an inactive CPA license issued by California Board of Accountancy, held himself out as a CPA without benefit of a Washington State CPA license.
Sanctions:  Kallshian agreed to refrain from restricted practices.  The Board will not consider an application for a license to practice as a CPA in Washington State from Kallshian until Kallshian submits a complete application, pays $1,000 fine; and reimburses the Board $250 for investigation and legal costs. Board Order