|
             |
| Source | Percent | |
| Agency oversight programs | 52 | 66% |
| Clients | 6 | 8% |
| Other CPAs | 3 | 4% |
| Miscellaneous | 16 | 20% |
| Anonymous | 2 | 2% |
The 79 cases closed during 2005 resulted from the following allegations:
Use of title or holding out in public practice by a nonCPA or non WA CPA 8 11% Records retention 2 2% Noncompliance with technical standards including Quality Assurance Review 33 43% Noncompliance with code of conduct including conflict of interest 3 4% Failure to respond to Board oversight/inquiries 5 6% Failure to meet/substantiate CPE 8 11% Use of title or holding out in public practice with a lapsed license/certificate 8 11% Good character determination for initial licensure 2 2% Felony conviction/disbarment 2 1% Embezzlement, fraud, dishonesty, or negligence 1 1% Fiduciary malfeasance or breach of fiduciary duties/disbarment 2 2% Failure to timely complete engagement 1 1% Failure to pay individual federal income taxes 1 1% Reinstatement of suspended license request 3 4% Total: 79 100%
The Board resolved the 79 cases during 2005 as follows:
Closed via Board Order 52 66% Lack of evidence of violation 24 30% Death of licensee 3 4% Closed via an informal agreement (other than a Board Order)
Non-Disciplinary Sanctions during 2005:
Chun Hyong Lee, CPA, Tacoma. April 22, 2005. CPA surrenders individual and firm licenses - Temporary suspension on an interim basis (not as disciplinary sanction) pending disciplinary proceedings.
Disciplinary Actions during 2005:
The Board completed the following disciplinary actions during 2005:
License and certificate suspensions (including stayed suspension) and revocations
Other Board Orders - Information on Board orders and other sanctioning agreements not summarized here are available under the Public Disclosure Act by contacting the Board's office at webmaster@cpaboard.wa.gov or (360) 664-9194.
License and certificate suspensions (including stayed suspension) and revocations:
George Betts, CPA-Inactive, Donnelly, Idaho. December 30, 2005. Violation: Guilty plea to one count of transporting hazardous waste to an unpermitted facility; sentenced to five years probation with home detention, imprisonment for two weeks and ordered to pay $163,177.34 in restitution. Sanctions: Revocation of CPA-Inactive certificate and eligibility to renew/reinstate individual and/or firm practice licenses for ten years; must requalify for reissuance of license including then existing education, examination, experience and ethical requirements; as a condition to reinstatement Betts must pay $1000 fine and reimburse Board $500 for legal and administrative costs.
Richard A. Swan, Lakewood. November 8, 2005. Violation: Fiscal dishonesty with respect to client funds; failure to honor commitments to prepare clients' income tax returns and to return original client records so that his clients could timely file tax returns with the IRS and avoid interest and penalties; unavailability to clients by telephone, personal contact, or mail; and failure to cooperate with the Board by not responding to Board inquiry and subpoena duces tecum. Mr. Swan abandoned his clients and his office, placing his clients' records at grave risk of loss or destruction from theft, fire or other casualty. Sanction: CPA certificate and individual and CPA firm practice licenses suspended. Mr. Swan may not use the title CPA or practice as a CPA while under suspension. Resolution of client concerns is continuing.
Sonya Mara Vazquez, CPA, Port Orchard. November 8, 2005. Violation: Failure to respond to Board inquiries concerning a tax lien filed by the IRS against the licensee's CPA firm. Sanctions: CPA certificate, individual license to practice public accounting as a CPA, and eligibility to apply for a CPA firm license suspended for one year; as conditions for reinstatement Vazquez must serve at least 90 days of the suspension; file a complete reinstatement application, fully respond to the Board's inquiries regarding the tax lien filed by the IRS, pay $1,000 fine, reimburse Board $500 for costs, complete four hours of CPE in ethics and regulations applicable to the practice of public accounting in Washington State; and complete the AICPA's course: "Professional Ethics: The AICPA's Comprehensive Course."
Gattis Cowan & Kramlich, PS, Seattle.
October 27, 2005.
Stephen K. Gattis, CPA
Paul F. Kramlich, CPA.
Violation: Failure to respond in
writing to communications from the Board concerning the CPA firm's inclusion
in the Board's 2005 Quality Assurance Review (QAR). Sanctions:
Stayed suspension of CPA firm license and the individual CPA certificates
and licenses to practice public accounting of each CPA firm owner for one
year; CPA firm agrees to fully respond to the Board's inquiries regarding
the firm's inclusion in the Board's 2005 QAR. Each CPA firm owner
agrees to: (1) fully respond to the Board's inquiries regarding the firm's
inclusion in the Board's 2005 QAR; (2) pay a $500 fine; (3) reimburse
Board $250 for costs; and (4) complete four CPE hours in professional
ethics and regulations directly applicable to the practice of public
accountancy in the state of Washington.
Peter A. Slowiaczek, Lakewood. September 26, 2005. Violation: Disbarment of license to practice law by Washington State Bar Association due to mishandling of client funds. Sanctions: Effective September 26, 2005 may not practice public accountancy nor hold out as a "CPA" or "Certified Public Accountant" nor use the title except for title use with regard to teaching CPE courses for Surgent-McCoy through January 15, 2006. Effective January 16, 2006 CPA certificate, individual license to practice public accounting and eligibility to renew/reinstate firm license suspended; Must reimburse Board $2,000 for administrative and legal costs; May apply for reinstatement effective July 1, 2015 or upon reinstatement of license to practice law in the State of Washington; as condition for reinstatement must reimburse Board an additional $3,000 for costs.
Abdulkhaliq A. A. Kodarzi, CPA-Inactive. United Arab Emirates. July 29, 2005. Violation: Failure to respond to Board inquiries concerning documentation required to comply with the Board's audit of the January 1, 2001 to December 2003 Continuing Professional Education (CPE) reporting period. Sanctions: Suspension of CPA certificate and eligibility to apply for an individual and/or CPA firm license for one year. As conditions for reinstatement, Kodarzi must serve 90 days of suspension; submit a complete reinstatement application including original documentation supporting the satisfactory completion of qualifying Continuing Professional Education (CPE) required for reinstatement and the course(s) completed during the period January 1, 2001 through December 31, 2003; reimburse Board $1,100 for costs; pay $500 fine; and complete the AICPA's course "Professional Ethics for CPAs."
Susan Helen Tillery, CPA. January 28, 2005. Violation: Guilty plea to ten counts of first degree theft; sentenced to 43 months confinement and ordered to pay $370,679.86 in restitution. Sanctions: Revocation of CPA certificate and eligibility to renew/reinstate individual and/or firm practice licenses for ten years; must requalify for reissuance of license including then existing education, examination, experience and ethical requirements; must serve at least nine years and six months of the revocation before the Board will consider an application for the CPA examination; as a condition to reinstatement Tillery must pay $1000 fine and reimburse Board $1,300 for legal and administrative costs, and document payment of restitution as ordered by Court.
*Unnamed, CPA-Inactive, Bothell. January 5, 2005. Violation: Acts and omissions in filing an application for renewal of CPA certificate constitute fraud or deceit; failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA-Inactive certificate. Sanctions: Inactive CPA certificate and eligibility to obtain an individual license revoked for 20 years; individual must reimburse Board $500 for costs; individual must serve entire 20 years of the revocation before the Board will consider an application for reinstatement; in order to reinstate, individual must requalify for reissuance of license including then existing education, examination, experience and ethical requirements. Individual is restricted from using the title CPA or CPA-Inactive while inactive CPA certificate is revoked.
Chi Sum Ho, CPA-Inactive, Hong Kong. January 25, 2005. Violation: Acts and omissions in filing an application for renewal of CPA license constitute fraud or deceit; failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA license. Sanctions: CPA-Inactive certificate suspended for one year; as conditions for reinstatement must serve at least four months of the suspension; pay $1,000 fine, reimburse Board $500 for costs, complete four hour of CPE in professional ethics applicable to the practice of public accounting in Washington State; and complete the AICPA's course: "Professional Ethics for CPAs."
Steven R. Utt, CPA, Kirkland. January 12, 2005. Violation: Acts and omissions in filing an application for renewal of CPA license constitute fraud or deceit; failure to maintain compliance with the Continuing Professional Education (CPE) requirements for renewal of the CPA license. Sanctions: CPA certificate and practice license suspended for one year; as conditions for reinstatement must serve at least four months of the suspension; pay $1,000 fine, reimburse Board $500 for costs, complete four hour of CPE in professional ethics applicable to the practice of public accounting in Washington State; and complete the AICPA's course: "Professional Ethics for CPAs." Update: October 24, 2006 CPA license reinstated
Arthur Bird, CPA, Kirkland. December 3, 2005. 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.
Don Rose, CPA, Spokane. July 14, 2005. Violation: Requests exemption from participation in Board's 2005 Quality Assurance Review program. Sanctions: CPA agrees to refrain from issuing audit, review, or compilation reports on financial statements.
Marie L. Gooch, CPA, Malaga. June 14, 2005. Violation: Requests exemption from participation in Board's 2005 Quality Assurance Review program. Sanctions: CPA agrees to refrain from issuing audit, review, or compilation reports on financial statements.
Carol S. Talley, CPA, Vancouver. June 14, 2005 Violation: Quality Assurance Review referral--technical deficiencies. Sanctions: Board reprimand; CPA agrees to refrain from offering to provide or providing audit, review, or compilation reports on financial statements; CPA must reimburse Board $393.48 for costs of a field review; $300 for investigative and legal costs; pay $300 fine; and complete four hours of Continuing Professional Education in professional ethics and regulations that is directly applicable to the practice of public accountancy in the state of Washington and the AICPA's CPE course "Professional Ethics: The AICPA's Comprehensive Course.
Darrell W. Fry, CPA, Bremerton. May 24, 2005 Violation: Quality Assurance Review referral--technical deficiencies. Sanctions: Board reprimand; CPA agrees to refrain from offering to provide or providing audit or review reports on financial statements; CPA must reimburse Board $473.65 for costs of a field review; $300 for investigative and legal costs; pay $300 fine; and complete 16 hours of Continuing Professional Education in financial statement disclosures, compilation and accounting update, and professional ethics that is directly applicable to the practice of public accountancy in the state of Washington; and complete the AICPA's CPE course "Professional Ethics for CPAs.
Michael John Mathieus, Kirkland. May 18, 2005. Violation: Use of title CPA and holding out as a CPA in Washington state without benefit of a valid Washington state individual CPA practice license. Licensed in Montana. Expired license in Idaho. Sanctions: Idaho/Montana CPA agreed to immediately cease using the CPA designation and/or holding out as a CPA for the practice of public accounting and issuing of audit, review, or compilation reports to financial statements while in the State of Washington. As a condition to the issuance of a license by transfer of credits the Idaho/Montana CPA must pay $500 fine; reimburse the Board $500 for costs; submit a complete and supportable Washington State experience affidavit; submit official college transcripts verifying compliance with the education requirements; complete four hours of Continuing Professional Education (CPE) in ethics and regulations applicable to the practice of public accounting in Washington State; and complete the AICPA's course: "Professional Ethics for CPAs."
Quentin J. Stanko, CPA-Inactive, Richland. March 7, 2005. Violation: Held out to the public and used the title CPA without benefit of valid practice licenses. Sanctions: Board reprimand; Stanko agreed to refrain from using the "CPA" title or holding out to the public until he is licensed to do so and from using the designation CPA-Inactive in association with public accounting services; Stanko must pay $500 fine, reimburse Board $500 for investigative and legal costs, and complete four hours of ethics Continuing Professional Education that is directly applicable to the practice of public accounting in Washington state.
Patrick R. O'Shaughnessy, CPA, Pomeroy. February 16, 2005. Violation: Requests exemption from participation in Board's 2005 Quality Assurance Review program. Sanctions: CPA agrees to refrain from issuing audit, review, or compilation reports on financial statements.
George B. Maitland, CPA, Federal Way. February 2, 2005. Violation: Failure to license as a CPA firm while using "CPA" title in the manner of a CPA firm name; Failure to disclose to client in writing and in advance a commission arrangement, amount of commission, and to obtain the client's consent to the fee arrangement. Sanctions: Board reprimand. CPA agrees to refrain from using CPA title in connection with CPA's firm until firm is properly licensed; CPA must pay $2,200 in restitution to client and $500 fine to Washington State; complete four hours of ethics applicable to the practice of public accounting in Washington State; and complete the AICPA's course "Professional Ethics for CPAs
Akopyan Yuriy Garnikovich, CPA, of Akopyan, Bailiff & Co., CPAs, Seattle. January 31, 2005. 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.
Judith L. Waddell, CPA, Mercer Island. January 19, 2005. Violation: Quality Assurance Review referral--technical deficiencies. 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; must obtain written permission from the Board before restriction may be lifted; CPA must reimburse Board $312.20 for costs of a field review; reimburse Board $300 for administrative and legal costs; pay $300 fine; complete four hours of Continuing Professional Education in professional ethics that is directly applicable to the practice of public accountancy in the state of Washington; complete the AICPA's CPE course "Professional Ethics for CPAs; and submit supporting documentation to demonstrate compliance with the CPE requirements for the January 1, 2003 through December 31, 2005 reporting period.
Lorrie Jean Rarey, CPA, Auburn. January 5, 2005. 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.
Herb A. Nelson, CPA, Spokane. January 5, 2005. 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.
Cary A. Snyder,
CPA, Spokane Valley. January 4, 2005. 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.
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