Activity Review

North Carolina State

Board of Certified Public

Accountant Examiners

1101 Oberlin Road, Suite 104, Post Office Box 12827, Raleigh, NC 27605- 2827 ( 919) 733- 4222 No. 4 2001

Inside this issue...

Board Meetings ............................... 7

Certificates Issued .......................... 5

Cheating on the Exam .................... 6

Commissions & Referral Fees ....... 5

CPEMARKET. COM ....................... 7

Disciplinary Actions....................... 2

May 2001 Exam Schedule.............. 6

Notice of Address Change ............ 8

Policy on Cheating ......................... 6

Reclassifications .............................. 4

Top November Exam Grades ....... 7

www. state. nc. us/ cpabd

Baldwin Nominated as NASBA Vice Chair

On March 6, 2001, David A. Costello,

CPA, President and CEO of the Na-tional

Association of State Boards of

Accountancy ( NASBA), announced

that Barton W. Baldwin, CPA, a mem-ber

of the North Carolina State Board of

CPA Examiners, has been selected by

NASBA’s Nominating Committee as

its nominee for NASBA Vice Chair 2001-

2002.

If elected, Baldwin will serve as

Vice Chair in 2001- 2002 and will accede

to Chair in 2002- 2003. He is currently

serving on the NASBA Board of Direc-tors

as a Director- at- Large.

Baldwin’s service to NASBA in-cludes

serving on the Board of Direc-tors,

Middle- Atlantic Regional Direc-tor,

1995- 1997; Relations with Member

Boards Committee, 1995- 1997 ( Chair

1996- 1997); Administration and Finance

Committee, 1995- 1997 ( Chair 1997-

1999); Task Force on Expense Reim-bursement,

1995- 1997 ( Chair 1997); In-vestment

Committee, 1995- 1997 ( Chair

1997- 1999); Joint Committee Proposal-

Strategic Planning Group for Imple-mentation,

1997; Treasurer, 1997- 1999;

Uniform Accountancy Act Committee,

1999- 2001 ( Chair 1999- 2001); Task Force

on Attest Experience, 1999- 2001; and

Task Force on Peer Review Adminis-tration,

2000.

In addition to his service to NASBA,

Baldwin has served the American Insti-tute

of CPAs ( AICPA) as a member of

the Governing Council ( appointed),

1988- 1989; State Legislation Commit-tee

( Area II Sub- Committee), 1988- 1993;

State Legislation Committee, 1991- 1993;

Governing Council ( elected), 1991- 1994;

and Quality Review Executive Com-mittee,

1993- 1996.

Baldwin, who is Managing Partner

of Baldwin and Hodge, LLP, a CPA

firm with offices in Clinton, Mount Ol-ive,

and Raleigh, was appointed to the

NC State Board of CPA Examiners in

1994 by Governor James B. Hunt, Jr.

Governor Hunt reappointed Baldwin

to the Board in 1997 and again in 2000.

Baldwin has served the Board as

Chair of the Professional Standards

Committee, 1994 - present; Vice Presi-dent

of the Board, 1994- 1996; and as a

Member of the Personnel Committee,

1994- 1997.

An active member of the North

Carolina Association of CPAs

( NCACPA) for many years, Baldwin

served as President, 1989- 1990; and was

a member of the Board of Directors,

1985- 1991; and a member of the Execu-tive

Committee, 1987- 1991.

In the period between 1977 and

1995, Baldwin served on numerous

NCACPA committees, including the

Ethics Committee; Budget Committee;

Building Committee; Continuing Pro-fessional

Education Committee; Gov-ernmental

Affairs and Legislation Com-

Baldwin

continued on page 7

2

THIS CAUSE coming before the Board

at its offices at 1101 Oberlin Road, Ra-leigh,

Wake County, North Carolina,

at public hearing, with a quorum

present, the Board finds, based on the

evidence presented at the hearing on

February 19, 2001, that:

FINDINGS OF FACT

1. The hearing notice was served by

certified mail and received by Appli-cant

at least fifteen ( 15) days prior to

the hearing.

2. Respondent was present at the hear-ing

and was not represented by coun-sel.

3. Respondent was the holder of a

certificate as a Certified Public Accoun-tant

in North Carolina and is therefore

subject to the provisions of Chapter 93

of the North Carolina General Statutes

( NCGS) and

Title 21, Chapter 8 of the North Caro-lina

Administrative Code ( NCAC), in-cluding

the Rules of Professional Eth-ics

and Conduct promulgated and

adopted therein by the Board.

4. The matter is before the Board upon

application by Applicant for modifica-tion

of discipline pursuant to

21 NCAC 8I .0104.

5. In a letter dated September 8, 1995,

which was received by the Board office

on September 21, 1995, Applicant ad-vised

the Board that she had advanced

herself $ 4,486.67 from the bank account

of the CPA firm in which she was a

partner. Further, she informed the

Board that she was unable to repay the

funds and surrendered her certificate.

6. Applicant’s misappropriation of

funds from the CPA firm was a viola-tion

of NCGS 93- 12( 9) and

21 NCAC 8N .0203.

7. Pursuant to a Consent Order, the

Certified Public Accountant certificate

issued to Applicant was permanently

revoked effective

October 23, 1995.

8. In support of her request for modifi-cation

of discipline, Applicant charac-terized

her misappropriations as the

acts of an individual who was de-pressed

and financially desperate.

Applicant does not appear to express a

genuine sense of remorse in regard to

her wrongdoing.

9. Despite Applicant’s claim that she

has remorse for her wrongdoing, she

has never apologized to her former

partners. Instead, as recently as No-vember

of 2000, Applicant has contin-ued

to place blame on her partners’

“ lack of support.”

10. Despite Applicant’s claim that she

has been completely rehabilitated, as

recently as November 2000, she has

been less than candid in her descrip-tion

of events. For example, Applicant

wrote in her request for modification

of discipline that she got her “ life back

on track” in 1996 because she took “ over

$ 50,000.00 worth of [ her] former cli-ents”

to the firm of her new employer.

However, Applicant failed to disclose

in her letter to the Board:

( a) that her partners agreed to pay her

$ 26,616.49 over a term of five ( 5) years.

That amount was premised upon a

buy- sell agreement that would have

been reduced by a factor of the “ over

$ 50,000.00 worth of [ her] former cli-ents;”

( b) that in April of 1995 she assigned

the note from her former partners to

her new employer; and

( c) that about one month later she filed

for bankruptcy.

11. In light of her recent lack of candor,

Applicant has not presented persua-sive

evidence that she has been “ com-pletely

rehabilitated.”

CONCLUSIONS OF LAW

1. The Hearing was duly noticed pur-suant

to NCGS 150B- 38( b)( c) and

21 NCAC 8C. 0103 and conducted with

a quorum of Board members and all

necessary parties present.

2. Since the discipline in this case was

determined by consent to be perma-nent

revocation, pursuant to

21 NCAC 8I .0104, the burden of estab-lishing

a justification for modifying the

earlier discipline is upon the applicant.

3. Pursuant to 21 NCAC 8I .0104( d),

the Board may consider not only

Applicant’s post discipline conduct, but

also “ the offense for which the appli-cant

was disciplined” as well as “ the

applicant’s activities during the time

the applicant was in good standing.”

4. Misappropriation of funds belong-ing

to a client or to ones own CPA firm

strikes at the heart of the “ good moral

character” that is required of all Certi-fied

Public Accountants by

NCGS 93- 12( 5).

5. Additionally, in light of Applicant’s

apparent lack of remorse, Applicant

did not carry her burden of showing

that she is “ completely rehabilitated”

as required by 21 NCAC 8I .0104( c).

BASED ON THE FOREGOING, the

Board orders in a vote of five ( 5) to zero

( 0) that:

1. Lee Marshburn Dineen’s applica-tion

for modification of discipline is

denied.

Lee Marshburn Dineen

Wilmington, NC 2/ 19/ 01

Disciplinary Actions

THIS CAUSE, coming before the Board

at its offices at 1101 Oberlin Road, Ra-leigh,

Wake County, North Carolina,

with a quorum present. Pursuant to

NCGS 150B- 41 and 150B- 22, the Board

and Respondent stipulate the follow-ing

Findings:

1. Respondent is the holder of North

Carolina certificate number 23131 as a

Certified Public Accountant.

2. Respondent, on his 1998- 99 indi-vidual

license renewal, indicated that

he was employed by Padgett Business

Services, a non- CPA firm.

3. Respondent prepared, as an indi-vidual

practitioner, an audited finan-cial

statement for a client to submit

with the client’s general contractors

Terry Mason Smith # 23131

Wilmington, NC 3/ 16/ 01

3

license application to the North Caro-lina

General Contractors Board.

4. Respondent failed to comply with

generally accepted accounting prin-ciples

and generally accepted auditing

standards in preparing said audit.

5. Prior to Board staff corresponding

with Respondent regarding said audit,

Respondent had not filed either firm or

state quality review ( SQR) registrations

with the Board.

6. On January 2, 2001, the Board office

received initial firm and SQR registra-tions

in the firm name of

Terry M. Smith, Certified Public Ac-countant.

7. Respondent wishes to resolve this

matter by consent and agrees that the

Board staff and counsel may discuss

this Order with the Board ex parte,

whether or not the Board accepts this

Order as written.

BASED UPON THE FOREGOING, the

Board makes the following Conclusions

of Law:

1. Respondent is subject to the provi-sions

of Chapter 93 of the North Caro-lina

General Statutes ( NCGS) and

Title 21, Chapter 8 of the North Caro-lina

Administrative Code ( NCAC), in-cluding

the Rules of Professional Eth-ics

and Conduct promulgated and

adopted therein by the Board.

2. Respondent’s actions as set out above

constitute violations of

NCGS 93- 12( 7b), NCGS 93- 12( 8c), and

NCGS 93- 12( 9) e and 21 NCAC

8J .0108, 21 NCAC 8M .0102, 8N .0209,

8N .0302( a), and 8N .0403.

BASED ON THE FOREGOING and in

lieu of further proceedings under

21 NCAC Chapter 8C, the Board and

Respondent agree to the following Or-der:

1. Respondent is censured.

2. Respondent’s license shall be sus-pended

for thirty ( 30) days from the

date this Order is approved by the

Board; however, said suspension is

stayed.

3. As a condition of the stay of his

suspension, Respondent shall be on

probation, shall comply with the terms

of this Order, and shall violate no ac-countancy

statutes or rules for two ( 2)

years from the date this Order is ap-proved

by the Board.

4. Respondent shall pay a one thou-sand

dollar ($ 1,000.00) civil penalty to

be remitted with this signed Order.

5. Respondent must obtain a peer re-view

regarding the time period No-vember

1997 through November 1999

to be completed by September 30, 2002.

6. Respondent’s second peer review

regarding the time period November

1999 through November 2002, which

should have been completed by De-cember

31, 2002, shall be completed by

March 31, 2003, and Respondent must

obtain an unqualified opinion for this

peer review.

7. Respondent must complete, prior to

December 31, 2001, and provide verifi-cation

of his completion of sixteen ( 16)

hours of continuing professional edu-cation

( CPE) in the areas of accounting

and auditing. Said CPE may not be

used to meet Respondent’s annual forty

( 40) hour requirement.

8. Respondent agrees that failure to

timely comply with any terms of this

Order or with all accountancy statutes

and rules during the two ( 2) year pro-bationary

period shall be deemed suf-ficient

grounds for active imposition of

the thirty ( 30) day suspension of

Respondent’s license in addition to any

other discipline as assessed for the fu-ture

violation.

9. Respondent agrees to cooperate at

all times with the Board in the supervi-sion

and investigation of compliance

with this settlement agreement and

agrees to make all files, records, or

other documents available immediately

upon the demand of the Board.

www. state. nc. us/ cpabd

Chet Milton Williams # 16908

Zebulon, NC 3/ 16/ 01

THIS CAUSE coming before the Board

on March 16, 2001, at its offices at 1101

Oberlin Road, Raleigh, Wake County,

North Carolina, with a quorum present,

the Board finds, based on the clear and

convincing evidence, that:

FINDINGS OF FACT

1. Respondent is the holder of a certifi-cate

as a Certified Public Accountant in

North Carolina and the subject of a

prior Consent Order.

2. On December 20, 1999, the Board

entered into a Consent Order with Re-spondent

( Exhibit 1).

3. The Consent Order provided that

Respondent obtain “ a peer review to

be completed before December 31,

2000.”

4. Respondent failed to obtain and

complete a peer review prior to De-cember

31, 2000.

5. In a January 24, 2001, response to a

request for information, Respondent

stated since he has not provided ser-vices

to the client since early 2000 he

saw “ no reason to remain registered as

a firm as well as undergo peer review.”

CONCLUSIONS OF LAW

1. Respondent is subject to the provi-sions

of Chapter 93 of the North Caro-lina

General Statutes ( NCGS) and Title

21, Chapter 8 of the North Carolina

Administrative Code ( NCAC), includ-ing

the Rules of Professional Ethics and

Conduct promulgated and adopted

therein by the Board.

2. Respondent failed to timely comply

with the December 20, 1999, Consent

Order.

3. Respondent’s failure to comply with

the terms of the Consent Order is a

violation of NCGS 93- 12( 9) e and

21 NCAC 8N .0203( b)( 3).

BASED ON THE FOREGOING, the

Williams

continued on page 4

4

Board orders in a vote of seven ( 7) to

zero ( 0) that:

1. Respondent’s certificate is sus-pended

for thirty ( 30) days.

2. If Respondent fails to return his

suspended certificate within fifteen ( 15)

days of the receipt of this Order, the

thirty ( 30) day suspension will be ex-tended

by the number of days that his

certificate is late in being returned to

the Board office.

3. If Respondent returns his suspended

certificate within fifteen ( 15) days of

the receipt of this Order, Respondent

can apply to return his certificate to

active status by submission and ap-proval

of a reissuance application

which includes:

a. Application form,

b. Payment of the application fee,

c. Three ( 3) moral character affidavits,

and

d. Forty ( 40) hours of CPE in the twelve

( 12) months preceding the application

including an eight ( 8) hour accoun-tancy

law course pursuant to

21 NCAC 8F .0504.

4. If Respondent returns his suspended

certificate in excess of fifteen ( 15) days

of the receipt of this Order, Respon-dent

can, after at least thirty ( 30) days,

apply to return his certificate to active

status by submission and approval of a

reissuance application which includes:

a. Application form,

b. Payment of the application fee,

c. Three ( 3) moral character affidavits

( on forms provided by Board),

d. Forty ( 40) hours of CPE in the twelve

( 12) months preceding the application

including an eight ( 8) hour accoun-tancy

law course pursuant to

21 NCAC 8F .0504, and

e. Consent Order requiring payment

of at least $ 100.00 in administrative

costs.

Williams from page 3

Inactive

“ Inactive,” when used to refer to the status of a person, describes one who has

requested inactive status and been approved by the Board and who does not

use the title “ certified public accountant” or does he or she allow anyone to

refer to him or her as a “ certified public accountant” and neither he or she nor

anyone else refers to him or her in any representation as described in

21 NCAC 8A .0308( b) [ 21 NCAC 8A .0301( b)( 23)].

02/ 22/ 01 Courtney Sharp Jones Durham, NC

02/ 23/ 01 Lester V. Hankes, Jr. Marietta, GA

02/ 23/ 01 Leslie Tart Roth Sanford, NC

02/ 26/ 01 Bertrand Charles Welch Cornelius, NC

02/ 26/ 01 Hugh Douglas Helms Cedar Point, NC

02/ 26/ 01 David Charles Sutton Greenville, SC

02/ 26/ 01 Donna Millsaps Lee Greensboro, NC

02/ 26/ 01 Lisa Lambert Brown Fishers, IN

02/ 26/ 01 Kendra Beveridge BoyleRaleigh, NC

02/ 26/ 01 Richard K. Wood, Jr. Midlothian, VA

02/ 26/ 01 Steven Randall Harrell Bethel, NC

02/ 27/ 01 Alka K. Singh New York, NY

02/ 27/ 01 Stacy Saladin Wooten Thomasville, NC

02/ 27/ 01 Sheri Ellen Bitterman Bismarch, ND

03/ 01/ 01 Marcella Wallace Schumacher Reston, VA

03/ 05/ 01 Lisa Havran McKissick Cary, NC

03/ 05/ 01 Kristine Knighton Wahr New York, NY

03/ 06/ 01 Barry Louis Gutfeld Washington, NC

03/ 08/ 01 Pamela Sue Smith Hemphill Greensboro, NC

03/ 08/ 01 June P. Decker Raleigh, NC

03/ 08/ 01 Jonathan David Ingram Atlanta, GA

03/ 09/ 01 Thomas Allison Carter Winston- Salem, NC

03/ 13/ 01 Joseph Earl Jenkins Greensboro, NC

03/ 16/ 01 Sally Walsh Manion Geneva, NY

03/ 20/ 01 Ginger Grubb Powell High Point, NC

03/ 20/ 01 Angela Denys Briggs Winter Springs, FL

03/ 21/ 01 Barbara J. Rosengrant Mooresville, NC

03/ 23/ 01 Angela Coates Brown Greer, SC

03/ 23/ 01 Laura Lynn Bibighaus Houston, TX

Reclassifications

Retired

“ Retired,” when used to refer to the status of a person, describes one possess-ing

a North Carolina certificate of qualification who verifies to the Board that

the applicant does not receive or intend to receive in the future any earned

compensation for current personal services in any job whatsoever and will not

return to active status [ 21 NCAC 8A .0301( b)( 23)].

03/ 16/ 01 Virgil D. Allen Bullock, NC

03/ 16/ 01 James Harston Creech, Jr. Randleman, NC

03/ 16/ 01 Angelo B. Santolla Land O’ Lakes, FL

03/ 16/ 01 Charles G. Stricklen Greensboro, NC

Reinstatements

03/ 16/ 01 Michael Scott Traflet Wilmington, NC

03/ 16/ 01 Richard Eugene Woolen Charlotte, NC

5

Q. Can I accept a commission or

referral fee from an audit or review

client?

A. Pursuant to 21 NCAC 8N .0303( c),

a CPA shall not for a commission

recommend or refer to a client any

product or service, or for a commis-sion

recommend or refer any prod-uct

or service to be supplied by a

client, or receive a commission when

the CPA also performs for that client

an audit or review of a financial

statement.

In addition, a CPA or firm can-not

receive a commission or referral

fee from an audit or review client

indirectly through another firm, al-ternative

business structure, or af-filiated

company. This includes as-set

management fees, which for the

purposes of this rule, the Board con-siders

commissions.

A CPA may receive a commis-sion

or referral fee from a client to

whom the CPA provides a compila-tion

of a financial statement only

when the CPA expects, or reason-ably

might expect, that a third party

will not use the financial statement

or if the compilation report prepared

by the CPA discloses a lack of inde-pendence.

The prohibition of commissions

and referral fees applies during the

period in which the CPA or firm is

engaged to perform the services, as

well as the period covered by the

historical financial statements in-volved

in the services.

Pursuant to 21 NCAC 8N .0303( e),

a CPA, when accepting a commis-sion,

referral fee, or contingent fee,

shall provide the client with a writ-ten

disclosure regarding the service

or product to be rendered or re-ferred

with the commission, referral

fee, or contingent fee, to be charged

or received.

If you have questions regarding

commissions or referral fees, please

contact Robert N. Brooks, the Board’s

Executive Director, by telephone at

( 919) 733- 4222.

Commissions and

Referral Fees

Certificates Issued

The following certificate applications were approved at the March 16, 2001,

Board meeting:

Hosam Mahmoud Abdulkareem

Jill Aikens

Tracey Hill Allen

Amy Louise Almond

Sonal T. Amin

Deborah Lynn Anthony

Stanley Matthew Babicz

David Everett Bainbridge

Patrick A. Beach

Jamie Helen Begor

Diane Marie Bognich

Ronald Eugene Bonds

Esther Judith Bredell

Christopher John Bundros

Christine M. Callihan

Jay Sprott Carter

Jeffrey Glenn Causey

Jacintha Civiello

Nathan Phillip Clark

Ann Nickell Comer

Randy V. Cook

Keith Darin Covington

Amanda Michelle Croston

Addie Deloris Cuthbertson

Michael Francis DeFalco

Penny L. Dierickx

Pamela Pearson Dodge

David Burgess Downing

Marcel Lamont Drayton

Edward Travis Elrod, Jr.

Elsa Marie Fairbank

Tobi Smith Fess

Keith M. Feuz

Brandy Tenille Fleming

Terri D. Fleming

Elizabeth Lamb Fluharty

Sherry Dean Folkestad

Bridget A. Foster

Martha Boyette Gaines

Christopher Robert Gebbia


Marsha L. Gregory

Diane B. Griffin

Thomas Reid Griffin

Stephen Mark Hannah

Brian Christopher Harhai

Susan Lambert Hart

Wendi Michele- Wise Heglar

Paul Francis Heinrichs

John Stockton Hobart

Amy Underhill Holding

April Christine Horvath

John Benjamin Huggins

Craig Michael Ihle

Yvonne Alane Jacobs

Lonnie Dave Joyce

Jon Eric Kea

Jennifer King

Joseph Markis Kledis

George Matthew Knab

Kelli Ann Koonsman

Nola M. Lawson

Hugh Geoffrey Lemonds

Derek Martin Lewis

Robert Craig Lowder

Tracy Elizabeth Maggi

Charles M. Malone, Jr.

Joy Caroline Mathis

Mirit Michaels

Lori A. Miller

James Clarke Murphy, Jr.

Timothy Scott Nash

Brian Charles Nay

Jeri Spencer Nelson

Danny S. Nethken

Thomas Lafayette Pender, Jr.

Susan Lynne Phares- Aldrich

Daphne Haith Pinchback

James P. Revels

Rene Richard Rice

John Joseph Riedel, Jr.

Andrew Jay Robinson

Michael B. Rowe, Jr.

Maureen M. Schirtzinger

Eileen L. Schneider

Donald Craig Schroder

Karen Leslie Schroth

Laura L. Seery

Robin Linda Shoemaker

Manoma Sirisena

Amie Alley Snell

Derrick Lamarr Steele

Michael Tarter Suthers

Janelle Harris Thomas

Elizabeth Anne Turk

Marjorie F. Vesey

Joseph Michael Von Dauber

Vera Elizabeth Watson

Theresa P. Welch

Daniel P. Zalomek

Liqin Zhu

6

All Uniform CPA Examination can-didates

sitting for the exam in North

Carolina are required to sign the

following statement on cheating:

“ Any individual found to have

engaged in conduct which subverts

or attempts to subvert the accoun-tancy

licensing examination process

may, at the discretion of the Board,

have his or her scores on the licens-ing

examination withheld and/ or

declared invalid, be disqualified

from holding the CPA certification,

and/ or be subject to the imposition

of other appropriate sanctions.

Conduct which subverts or at-tempts

to subvert the accountancy

licensing examination process in-cludes,

but is not limited to:

( 1) Conduct which violates the

standards of test administration,

such as communicating with any

other candidate during the admin-istration

of the licensing examina-tion;

copying answers from another

candidate or permitting one’s an-swers

to be copied by another candi-date

during the administration of

the licensing examination; having

in one’s possession during the ad-ministration

of the licensing exami-nation

any books, notes, written or

printed materials or data of any kind,

other than the examination materi-als

distributed.

( 2) Conduct which violates the

credentialing process, such as falsi-fying

or misrepresenting educa-tional

credentials or other informa-tion

required for admission to the

licensing examination; impersonat-ing

a candidate or having an imper-sonator

take the licensing examina-tion

on another’s behalf.

I have read and do understand

this policy of the Board. I agree to

comply with all written rules and

instructions given during the ad-ministration

of this examination.”

Board Policy on

Cheating

Business Law & Professional

Responsibilities ( LPR)

Wednesday, May 2, 2001

9: 00 a. m. - 12: 00 noon

Auditing ( AUD)

Wednesday, May 2, 2001

1: 30 p. m. - 6: 00 p. m.

Accounting & Reporting ( ARE)

Thursday, May 3, 2001

8: 30 a. m. - 12: 00 noon

Financial Accounting &

Reporting ( FARE)

Thursday, May 3, 2001

1: 30 p. m. - 6: 00 p. m.

Uniform CPA Exam

Schedule

The May 2001 Uniform CPA

Examination will be administered

at the Raleigh Convention and

Conference Center in Raleigh and

the Benton Convention Center in

Winston- Salem. The schedule is as

follows:

The North Carolina State Board of CPA

Examiners and the American Institute

of CPAs Board of Examiners ( AICPA

BOE) regard cheating on the Uniform

CPA Examination as a serious offense.

The Board and the AICPA BOE

use a variety of tools and procedures to

prevent candidates from cheating on

the examination.

Proctors are trained to watch for

unusual or suspicious behavior and

incidents during the examination and

to document the occurrence of any

unusual activity.

Some actions that may be con-sidered

cheating include:

• falsifying credentials;

• copying answers from an-other

candidate during the exam;

• helping another candidate

during the exam;

• using unauthorized materi-als

during the exam;

• unauthorized communica-tion

with an individual, in or out

of the exam site, during the exam;

• taking written materials,

notes, etc., into or out of the exam

site; and

• divulging exam information

in violation of the nondisclosed

exam policies.

In addition, during the grading pro-cess,

the AICPA Advisory Grading Ser-vice

instructs graders to report all cases

of unusually similar responses.

After grading is complete, the Ad-visory

Grading Service compiles a re-port,

the “ 90% Similarity Report,”

which identifies candidates whose pat-terns

of answers are unusually similar

and forwards the report to the Board.

The Board may use this report to

support an existing investigation into

possible cheating or to initiate such an

investigation.

21 NCAC 8F .0111, Ineligibility due

to Violation of Accountancy Act, states,

“ a person may not be eligible to take

the CPA examination or receive the

North Carolina certificate of qualifica-tion

as a CPA if the Board determines

that the person has engaged in conduct

that would constitute violation of Gen-eral

Statutes Chapter 93 or the Rules of

Professional Ethics and Conduct.”

If the Board determines that a can-didate

has cheated, the candidate will

be subject to a variety of penalties,

including, but not limited to, invalida-tion

of grades and disqualification from

subsequent exam administrations.

In cases where cheating is discov-ered

after a candidate has obtained his

or her CPA certificate, the Board may

permanently revoke the certificate.

Cheating on the Uniform CPA

Examination

77

mittee; Long- Range Planning Commit-tee;

Nominating Committee ( Chair);

Personnel Committee ( Chair); Quality

Review Executive Committee; and the

Taxation Committee.

In 1998, Baldwin received the

NCACPA’s “ Raymond Rains Award

for Outstanding Service to the Profes-sion.”

The award is presented annually

to the NCACPA member who best ex-emplifies

the mission of the NCACPA

through his or her continued outstand-ing

service to the NCACPA.

Baldwin is married to Brenda S.

Baldwin, and has two children— Nicole

McCoy, a graduate student at Wake

Forest University; and Whit Baldwin, a

student at Florida State University.

Baldwin from front

The National Association of State

Boards of Accountancy ( NASBA) re-cently

launched CPEMARKET. COM

( www. cpemarket. com) , an on- line da-tabase

of continuing professional edu-cation

( CPE) course listings that can be

searched according to specific criteria,

such as credit hours, location, subject

area, date, and course format.

Yordanos Burney, Director of Com-pliance

Services for NASBA, says

CPEMARKET. COM grew out of a need

to provide individuals who must ob-tain

continuing education credits to

maintain or renew a professional li-cense

with a managed list of CPE

courses.

“ Although NASBA provides two

continuing education- related ser-vices—

the National Registry of CPE

Sponsors and the Quality Assurance

Service ( QAS)— to state boards of ac-countancy

and their licensees, these

services do not provide the means for

an individual to find a specific CPE

course which meets his or her needs,

and NASBA is not in a position to

recommend a specific provider or a

specific course to an individual,” ex-plains

Burney.

“ With CPEMARKET. COM, an in-dividual

can search a massive data-base

of course offerings to find the

exact course he or she needs to meet the

complex CPE requirements of his or

her licensing board.”

CPEMARKET. COM, which is free

to all individuals seeking CPE course

information, also includes information

on state- mandated CPE requirements.

For additional information regard-ing

CPEMARKET. COM, please con-tact

NASBA by telephone at

( 615) 880- 4200 or by e- mail at

( cpemarket@ nasba. org).

NASBA Launches CPEMARKET. COM

Top Scorers for November 2000 Exam

In 1982, the North Carolina CPA Foun-dation,

Inc., undertook sponsorship of

the “ Katherine Guthrie Memorial

Awards, the semi- annual awards given

to the three North Carolina candidates

with the highest total grades on the

Uniform CPA Examination.

To be eligible for the awards, a

candidate must sit for all four parts of

the exam and must attain a score of at

least 80 on each section of the exam.

Kristin Simeone, an initial candi-date,

is North Carolina’s highest scor-ing

candidate on the November 2000

exam. A Fixed Asset Accountant with

Arthur Andersen in Sarasota, Florida,

Simeone received a Bachelor of Science

in Business Administration from Bryant

College in 1993.

North Carolina’s second highest

scoring candidate is Richard A. Pelak,

who received a Bachelor of Science in

Economics from the State University of

New York at Binghamton, in 1992.

Pelak, who received a Juris Doctor from

the University of North Carolina at

Chapel Hill in 1995, is employed as a

Tax Consultant with Culp, Elliott &

Carpenter, P. L. L. C, in Charlotte.

Ezequiel Ladron de Guevara and

Keir Majarrez, who achieved the same

total score on the November 2000 exam,

share the distinction of being North

Carolina’s third highest scoring candi-date.

Ladron de Guevera, a Staff Assis-tant

with KPMG in Miami, Florida,

graduated cum laude from Florida In-ternational

University with a Bachelor

of Accounting in April 2000. He is cur-rently

pursuing a Masters degree.

Majarrez, also a cum laude gradu-ate,

received a Bachelor of Science in

Accounting from the College of

Charleston in December 1999. He is

employed as an Associate with

PricewaterhouseCoopers, LLP, in Ra-leigh.

If you wish to address the Board

regarding a specific issue, please con-tact

Robert N. Brooks, the Board’s

Executive Director, by telephone at

( 919) 733- 4222 or via e- mail

( rnbrooks@ bellsouth. net) at least

two weeks prior to the meeting date.

May 21

June 25

July 23

August 20

September 18

October 22

November 19

December 18

Board Meetings

Do you have questions or comments

about the Activity Review? If so,

please contact Lisa R. Hearne, Com-munications

Manager, by telephone

at ( 919) 733- 4208 or by e- mail at

( lhearne@ bellsouth. net).

Comments?

Certificate No. Send Mail to Home Business

New Home Address

City State Zip

CPA Firm/ Business Name

New Bus. Address

City State Zip

Telephone: Bus. ( ) Home ( )

Bus. fax ( ) E- mail address

Certificate Holder

Last name Jr./ III First Middle

North Carolina State Board of

Certified Public Accountant Examiners

Post Office Box 12827

Raleigh NC 27605- 2827

PRST STD

US Postage

PAID

Greensboro, NC

Permit No. 393

21,000 copies of this document were printed for this agency at a cost of $ 2,758.29 or 13¢ per copy in April 2001.

Certificate holders not notifying the Board in writing within 30 days of any change in address or business location may be subject to

disciplinary action under 21 NCAC 8J .0107.

Address Change? Let Us Know!

Signature Date

Mail to: NC State Board of Fax to: ( 919) 733- 4209

CPA Examiners Attn: Licensing

PO Box 12827 or

Raleigh, NC 27605- 2827 Examinations

State Board of

CPA Examiners

Board Members

R. Stanley Vaughan, CPA

President, Charlotte

O. Charlie Chewning, Jr., CPA

Vice President, Raleigh

Michael H. Wray

Secretary- Treasurer, Gaston

Barton W. Baldwin, CPA

Member, Mount Olive

Norwood G. Clark, Jr., CPA

Member, Raleigh

Scott L. Cox, CPCU, CIC

Member, Charlotte

Walter C. Davenport, CPA

Member, Raleigh

Staff

Executive Director

Robert N. Brooks

Legal Counsel

Noel L. Allen, Esq.

Administrative Services

Felecia F. Ashe

Communications

Lisa R. Hearne, Manager

Examinations

Judith E. Macomber, Manager

Phyllis W. Elliott

Licensing

Buck Winslow, Manager

Alice G. Steckenrider

Lynn Wyatt

Professional Standards

Ann J. Hinkle, Manager

JoAnne Burch

Jo Gaskill

Receptionist

Karen Carlile

Don’t forget... certificate renewal deadline is June 30