While applying for membership in CPABC after completing the requirements for the CPA Professional Education Program, the Candidate failed to disclose a previous academic infraction issued by the Chartered Professional Accountants Western School of Business. The Candidate also failed to disclose this academic infraction during their annual re-enrollment character declaration while a student in the CPA Professional Education Program. The Candidate represented that the omission was due to an oversight.
The Investigation Committee determined that the Candidate contravened the following Rules of the CPABC Code of Professional Conduct:
103 - False or misleading applications
201.1 - Maintenance of the good reputation of the profession
205 - False or misleading documents and oral representations
The Committee recommended the Candidate:
- accept a reprimand; and
- pay investigation expenses of $750.
While applying for membership in CPABC after completing the requirements for the CPA Professional Education Program, the Candidate failed to disclose a previous academic infraction issued by the Chartered Professional Accountants Western School of Business. The Candidate represented that the omission was due to an oversight.
The Investigation Committee determined that the Candidate contravened the following Rules of the CPABC Code of Professional Conduct:
103 - False or misleading applications
201.1 - Maintenance of the good reputation of the profession
The Committee recommended the Candidate accept a warning to exercise greater care when reviewing and signing documents.
The Member did not complete the tax returns for a client and the client’s partner. The Member did not respond to the client’s communications appropriately, and delayed returning the client’s source documents when the client requested them. The Member returned the client’s documents after the client complained to CPABC.
The Investigation Committee determined that the Member contravened the following Rules of the CPABC Code of Professional Conduct:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
303.2 - Provision of client information
The Committee recommended the Member:
- accept a reprimand: and
- pay investigation expenses of $3,890.
The Member became involved in a monetary dispute with a vendor of information technology (IT) services. When the vendor disconnected the Member’s access to the IT system, the Member sent the vendor an invoice which purported to be for accounting services. The accounting services had not been performed by the Member and the vendor had not engaged their services. The invoice was inappropriate in the circumstances.
The Investigation Committee determined that the Member contravened the following Rules of the CPABC Code of Professional Conduct:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
205(a) - False or misleading documents
The Committee recommended the Member:
- accept a reprimand; and
- pay partial investigation expenses of $2,030.
The Member was engaged as the accountant for Company A, including preparing its annual Notice to Reader financial statements and tax returns. Company B loaned money to the individual who was an owner of Company A. The Member controlled Company B. When the individual was unable to repay the loan from Company B, the Member instructed a bailiff to seize the shares of Company A from the individual and sold them to a third party whose companies were also clients of the Member.
The Member was not independent of Company A and failed to disclose their financial interest in Company B in the financial statements of Company A. They had a conflict of interest when they acted to seize the shares of Company A from the individual, and inappropriately discussed the financial affairs of the individual with the third party to whom they sold the shares of Company A.
The Investigation Committee determined the Member contravened the following:
Rules of the CPABC Code of Professional Conduct
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
202.2 - Objectivity
204.10 - Disclosure of impaired independence
207 - Unauthorized benefits
208 - Confidentiality of information
210.1,210.2(a), 210.3, 210.4 - Conflicts of Interest
CGA-BC Code of Ethical Principles and Rules of Conduct
Rule R101 - Discredit
Rule R107.2 - Constraints on a Professional Practice other than Public Accounting
Rule R202 - Compilation Engagements
Rule R204 - Resolution of Other Conflicts of Interest
The Investigation Committee recommended the Member:
- accept a reprimand;
- pay investigation expenses of $12,973; and
- attend and successfully complete a professional development course in ethics and conflicts of interest which is satisfactory to the Director, Professional Conduct.
The Member was issued a Juricert identification certificate by the Law Society of British Columbia (LSBC). Contrary to the Terms and Conditions that the Member agreed to when he obtained the Juricert, the Member permitted another person, a family member, to have access to their Juricert identification. That person filed a false and misleading Trust Report to the LSBC.
The Investigation Committee determined that the Member contravened the following Rules of the CPABC Code of Professional Conduct:
201.1 - Maintenance of the good reputation of the profession
205(a) - False or misleading documents
The Committee recommended the Member:
- accept a reprimand;
- pay a fine of $2,000; and
- pay investigation expenses of $1,473.
Mr. Desai was retained by a law firm to complete the accountant’s portion of the annual Trust Report which the law firm was required to submit to the Law Society of British Columbia (LSBC). Mr. Desai completed the relevant portions of the Trust Report and attested that the law firm was in compliance with all LSBC rules for trust accounting. The LSBC subsequently conducted an audit of the law firm which revealed numerous breaches of LSBC requirements, including failure to maintain books and records, a trust shortage and deficient trust reconciliations.
Mr. Desai:
- Did not have the professional competence or expertise to carry out the engagement with the law firm diligently or with due care
- Falsely attested that the law firm was in compliance with all LSBC rules when he knew the law firm was in breach of numerous rules
- Used the Juricert identification of another person to sign and file the trust report
- Was not independent of the law firm in this engagement, as he prepared some of the bookkeeping upon which he was required to attest.
The Investigation Committee determined Mr. Desai contravened the CPABC Code of Professional Conduct as follows:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
204.1 - Assurance and specified auditing procedures engagements
205(a) - False or misleading documents
206.1 - Compliance with professional standards
The Committee recommended Mr. Desai:
- accept a reprimand;
- pay a fine of $10,000; and
- pay investigation expenses of $2,759.