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Activity Review North Carolina State Board of Certified Public Accountant Examiners 1101 Oberlin Road, Suite 104 • PO Box 12827 • Raleigh, NC 27605 • ( 919) 733- 4222 • No. 2- 2003 Inside this issue... Certificates Issued ............................. 5 Commissions & Referral Fees .......... 7 Disciplinary Actions ......................... 2 Exam Committees .............................. 5 Inactive Status ................................... 6 IRS Form W- 9 ..................................... 6 Taxpayer Assistance Numbers ........ 5 Notice of Address Change ............... 8 Reclassifications ................................ 6 www. state. nc. us/ cpabd NOTE: Not all requirements for the com-puter- based Uniform CPA Examination have been finalized. The following answers are believed to be accurate, but are subject to change as the implementation of the CBT draws closer and will be updated as more information becomes available. These an-swers were last updated January 8, 2003. Frequently Asked Questions about the Computer- Based Exam When is the final administration of the pencil- and- paper Uniform CPA Exami-nation? November 2003 is scheduled to be the final administration of the pencil-and- paper exam. When will the computer- based Uni-form CPA Examination ( CBT) be intro-duced? The CBT is scheduled for introduc-tion by May 2004. Will the content of the CBT be different from the content of the pencil- and- pa-per exam? Yes, the content of the CBT will be different from the content of the pencil-and- paper exam. ( For a comparison of the two exams, please see chart on page 4.) What are the content changes? Information on the proposed struc-ture and content of the CBT is discussed in “ Proposed Structure & Content Speci-fications for the Uniform CPA Examina-tion,” which is available for download from www. cpa- exam. org, the AICPA’s exam web site. What is the length of the CBT? The CBT will be 14 hours long whereas the pencil- and- paper exam is 15.5 hours long. ( For a comparison of the two exams, please see chart on page 4.) Will the CBT include essay questions? Yes, essays ( constructed responses) will be incorporated into the exam simu-lations. Are the education requirements for tak-ing the exam also changing? The education requirements for the CBT are the same as the education re-quirements for the pencil- and- paper exam. Will I still have 120 days after taking the exam to meet the educational require-ments? Yes, you will still have 120 days after taking the exam to meet the educational requirements. Will the fee for taking the exam in-crease? Yes, there will be an increase in the fee to take the exam. The estimated total cost for all four sections of the CBT is between $ 500.00 - $ 700.00. Will my current conditioning change under the CBT? A candidate will retain credit for the sections of the exam already passed. However, if a candidate does not pass the remaining sections of the exam prior to October 31, 2005, the credits earned on the pencil- and- paper exam will expire. How will my current credits transfer to the CBT? Credits earned on the pencil- and-paper exam will transfer to the CBT as shown in the chart on page 4. How much time do I have to pass all sections of the CBT? Once you receive credit for a section of the exam, you will be allowed a maxi-mum of 18 months to pass all remaining sections of the exam in order to retain credit for the passed section. What is a “ testing window”? The CBT will be available approxi-mately 60 days out of each calendar quarter. This 60 day period is called a testing window and there will be four testing windows each calendar year. A candidate may take any of the four exam sections during any testing win-dow. However, a candidate may take each section of the exam only one time during a testing window. CBT continued on page 4 Disciplinary Actions 2 Name Not Published 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 a certifi-cate as a Certified Public Accountant in North Carolina. 2. In a complaint filed with the Board, Complainant stated that she and her ex-husband were members of a Limited Liability Company ( LLC). She stated further that Respondent prepared the LLC’s tax returns including a K- 1 that the LLC had sent her. Complainant fur-ther alleged that upon receiving a K- 1, she had contacted Respondent in his capacity as certified public accountant for the LLC that she co- owned and re-quested documentation supporting the income and withdrawals for the Complainant’s capital account. The K- 1 indicated that Complainant had owned ninety- five ( 95) per cent of the LLC during the period covered by the K- 1. Complainant asserted that Respon-dent refused to provide these requested records to Complainant. Respondent contends that he was not obligated un-der the accountancy rules to return LLC records to the Complainant since she was not, at the time of the request, the designated Manager of the LLC. 3. According to the Complainant, some-time after the request referenced in # 2 above, Complainant also requested cop-ies of the joint tax returns prepared by Respondent over the last five ( 5) years for Complainant and her ex- husband. Complainant alleges that Respondent also refused to provide her with the requested copies of the joint tax returns. Respondent contends that he never re-ceived complainant’s request for the joint tax returns. 4. Despite at least two written demands, Respondent failed to respond to the Board’s requests for an explanation as to how his actions would comply with Board rules regarding the return of cli-ent records. Respondent contends that he did not intentionally fail to respond to the Board and that he relied upon his attorney to respond. Said attorney was legal counsel for the complainant’s ex-husband and had actually retained Respondent as an expert “ in anticipa-tion of the litigation” between the com-plainant and her ex- husband. Respon-dent did not agree to compensate said attorney and the attorney never repre-sented to the Board that he was also serving as Respondent’s attorney. 5. Respondent contends that he did not intentionally violate the accountancy statutes and rules. Nevertheless, Re-spondent wishes to resolve this matter by consent and agrees that the Board staff and counsel may discuss this Or-der with the Board ex parte, whether or not the Board accepts this Order as writ-ten. 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 Carolina Administrative Code ( NCAC), includ-ing the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board. 2. Respondent’s failures to return client records upon demand represent viola-tions of NCGS 93- 12( 9) e, and 21 NCAC 8N .0305. 3. Respondent’s failures to cooperate with Board inquiries represents viola-tions of NCGS 93- 12( 9) e and 21 NCAC 8N .0206. 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 shall receive an unpub-lished reprimand. 2. Respondent shall reimburse the Board for administrative costs incurred in the cost of this investigation. David B. Watkins # 26877 Cumming, GA 01/ 21/ 03 THIS CAUSE, coming before the Board at its offices at 1101 Oberlin Road, Raleigh, 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 was the holder of North Carolina certificate number 26877 as a Certified Public Accountant. 2. In July of 1999, Respondent was notified in a letter from Robert N. Brooks that his application for an original CPA certificate had been granted by the North Carolina State Board of CPA Examiners ( Board). 3. In June of 2000, Respondent signed and submitted to the North Carolina Secretary of State’s office an Applica-tion for Certificate of Authority on be-half of Winn Caribe Communications, Inc., ( Winn Caribe) a Georgia corpora-tion and a wholly owned subsidiary of CoreNet Services Inc. In said applica-tion, Respondent was identified as the Assistant Secretary. 4. On his 2001- 2002 individual certifi-cate renewal as filed with the Board in June of 2001, Respondent denoted that his employer and employment address had changed to “ CoreNet Services, Inc., 3500 Parkway Lane, Norcross, Georgia 30092.” 5. Sometime in the spring of 2001, while an employee of CoreNet Services, Inc., Respondent prepared, as an individual practitioner located in Cumming, Geor-gia, a reviewed financial statement on behalf of Winn Caribe. During this time period, Respondent was not registered with the Board as offering services through an individual practitioner firm and was not registered as participating in a Board- sanctioned peer review pro-gram. 6. In said reviewed financial statement, Respondent did not disclose any lack of independence. In an e- mail dated May 31, 2001, Respondent informed an official with Winn Caribe that his prepa-ration of the reviewed financial state-ment was a violation of the American Institute of Certified Public Accoun- 3 tants’ ( AICPA) ethics rules and “ possi-bly a violation of North Carolina law.” 7. Sometime in 2001, Winn Caribe, with Respondent’s knowledge, submitted the reviewed financial statements to the Ar-kansas Contractors Licensing Board ( Arkansas Licensing Board) in support of Winn Caribe’s renewal application for a contractors license in Arkansas. 8. In April of 2002, Respondent re-quested that his North Carolina certifi-cate be placed on “ inactive” status. Under 21 NCAC 8J .0106, Respondent could have subsequently applied to change the status of his North Carolina certificate to “ active” status. 9. In May of 2002, the attorney for the Arkansas Licensing Board filed a com-plaint with the Board alleging that Re-spondent had failed to comply with North Carolina’s statutes and rules. 10. As an employee of Winn Caribe’s parent company and as an officer in Winn Caribe, Respondent was not in-dependent with respect to Winn Caribe and therefore could not, in accordance with applicable accounting and audit-ing standards, provide Winn Caribe with reviewed financial statements. 11. 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 Carolina Administrative Code ( NCAC), includ-ing the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board. 2. Respondent’s actions as set out above constitute violations of NCGS 93- 12( 7b), 93- 12( 8c), 93- 12( 9) d, and 93- 12( 9) e and 21 NCAC 8J .0108, 8M .0102, 8N .0201, 8N .0202( a), 8N .0202( b)( 3), 8N .0203( a), 8N .0203( b)( 1), 8N .0204( a), 8N .0209, 8N .0301 ( a), 8N .0303( a), 8N .0402( a), 8N .0403, 8N .0404, and 8N .0406. 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’s CPA certificate status is hereby changed from inactive to per-manently revoked. John Thomas Margeson # 9521 Raleigh, NC 01/ 21/ 03 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 9521 as a Certified Public Accountant. 2. In May of 2001, Respondent was charged with the misdemeanor of im-personating a duly authorized em-ployee of the North Carolina Depart-ment of Health [ a violation of NCGS 14- 277] and with “ unlawfully, willfully and feloniously” violation NCGS 14- 277.3 [ stalking]. 3. Also, in May of 2001, Respondent was cited for possession of less than ½ ounce of marijuana, a controlled sub-stance. 4. Sometime later in 2001, Respondent was found “ not guilty” on the charge of impersonating an authorized employee of the North Carolina Department of Health. 5. In early 2002, Respondent was con-victed of stalking a sixteen- year- old girl and of possessing less than ½ ounce of marijuana. Respondent appealed both convictions. 6. In August of 2002, Respondent noti-fied the Board that he has dropped both appeals and had requested that the cases be remanded to District Court for sen-tencing. 7. In an Order issued by Judge Anne Salisbury on July 29, 2002, Respondent was sentenced to 45 days of imprison-ment. The sentence was suspended sub-ject to the following conditions: that Respondent’s pay $ 190.00 in fines and costs; that Respondent participate in a mental health and substance abuse as-sessment; that Respondent not have any contact with the sixteen year old girl; and that Respondent stay away from any public school grounds unless Respondent’s child is involved in a school function. Respondent was placed on eighteen ( 18) months of un-supervised probation. 8. Respondent did not report the charges described above on his individual 2001- 2002 certificate renewal. 9. Respondent did not provide the Board with any information regarding the charges until Board staff sent a letter to his last known home address in Decem-ber of 2001. 10. Despite a request by Board staff that Respondent keep the Board apprised of the charges, Respondent did not pro-vide subsequent information regarding the charges except in response to direct requests from Board staff. 11. 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 Carolina Administrative Code ( NCAC), includ-ing the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board. 2. Respondent’s actions as set out above constitute violations of NCGS 93- 12( 9) e and 21 NCAC 8N .0201, .0203, .0204, .0206, and .0208. 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’s certificate is revoked for a period of at least eighteen ( 18) months. 2. Respondent may apply for the rein-statement of his certificate after at least eighteen ( 18) months and as long as he has completed his sentence of proba-tion as ordered by the Court and as long as he has not been convicted of any other criminal offense during the revocation period. 4 ferent tests, the specifications will en-sure that the results are comparable. The specifications will also include “ exposure controls” to limit the extent to which examinees are administered the same sets of questions. With candidates taking different tests, how do you ensure that each candidate is being correctly assessed? The test delivery system will ensure that all tests meet content and psycho-metric specifications. The testing package delivered to test centers will contain not only test items, but also the rules for the adminis-tration of tests drawn from that collec-tion of items. All items will be classified accord-ing to their content and statistical prop-erties before they are administered in an operational test. The testing software will then ad-minister items according to the specifi-cations to ensure that each candidate is administered a test of appropriate con-tent coverage and difficulty. Who will be responsible for certifying someone as an ADA candidate? State boards will continue to deter-mine if a candidate qualifies as an ADA candidate. Will the scoring/ grading change to pass/ fail with the CBT? It has not been determined if candi-dates will continue to receive numerical grades or if grades will be reported only as pass/ fail. Can I immediately find out my score/ grade after taking a section of the exam? No, the CBT will contain structured responses that must be transmitted to the AICPA for scoring. When will I receive my scores/ grades? There will no longer be a Uniform Grade Mailing Date. The CBT will con-tain structured responses that must be transmitted to the AICPA for scoring, so it is anticipated that it will be several weeks before scores/ grades are avail-able for mailing. Can I request a review of my grades or an appeal of my grades under the CBT? Yes, you can still request a review or an appeal of your grades, but the process will be slightly different than with the pencil- and- paper exam. How often can I take the CBT? A candidate will be allowed to take each section of the exam up to four times a year with a limit of one time per section in each testing window. What will be the deadlines for apply-ing to take the CBT? Application deadlines will be elimi-nated, allowing candidates to apply at any time of year. Where will the CBT be administered? The NC State Board of CPA Exam-iners has not yet determined if it will operate its own testing center or use a Prometric testing center. Will the CBT inhibit state boards’ abil-ity to monitor candidates? No. State boards’ responsibilities will not be diminished or negatively affected by the CBT. State boards will continue to determine candidates’ eligi-bility and notify candidates of their grades. State boards have the responsi-bility to administer or oversee the ad-ministration of the exam in their juris-diction. What assistance will be provided to candidates to help them prepare for the CBT? Familiarization materials will be available on the AICPA’s exam web site ( www. cpa- exam. org) and on CD- ROM. The AICPA will develop the mate-rials and will make them available to state boards, state societies, schools, and candidates, prior to the launch of the CBT. Will I be required to take all four sec-tions in a two- day period? No, you may take each section sepa-rately and you will schedule when you want to take each section. Will I be required to take the sections in a specific order? No, you can choose to take the sec-tions in any order. Will I be required to pass one section of the exam before applying to take an-other section? No, you will not be required to pass one section before applying to take an-other section of the exam. Once I apply for the exam, how long will it be before I actually take the exam? The Board will need to verify a first-time ( initial) candidate’s educational eligibility before issuing a “ Notice to Schedule,” so the process will take a few weeks. A re- exam candidate should receive a Notice to Schedule within a few days of applying to the Board. The Notice to Schedule is valid for 6 months from the date of issue, so you will have a set period of time to schedule and take the exam section( s). How will I schedule an appointment to take the exam? After applying to the Board and receiving a Notice to Schedule, you will contact the testing center to schedule a testing appointment. The Notice to Schedule is valid for 6 months from the date of issue, so you will have a set period of time to schedule and take the exam section( s). Will all candidates take the same ex-amination, or will each candidate take a different test? Candidates will take different, equivalent exams. In the computerized testing environment, each candidate’s examination will consist of items drawn from a pool of test questions according to defined specifications. Although candidates will take dif- CBT continued from front COMPUTER- BASED EXAM Auditing & Attestation ( 4.0 hours) Financial Accounting & Reporting ( 4.0 hours) Regulation ( 3.0 hours) Business Environment & Concepts ( 2.5 hours) PAPER- AND- PENCIL EXAM Auditing ( 4.5 hours) Financial Accounting & Reporting ( 4.5 hours) Accounting & Reporting ( 3.5 hours) Business Law & Professional Responsibilities ( 3.0 hours) 5 The following applications for certification were approved by the Board at its December 17, 2002, and January 21, 2003, meetings: Certificates Issued Brian Kirk Arney Sheila Jones Bacelli Sue Styles Bailey Carl Franklin Beal, III Sarah E. Blanchard James A. Blevins Rhonda Vashti Brickner Claire Melissa Burrell Mary Elizabeth Cannady Jamie Michael Coffey Tara Jacqueline Corcoran Melanie Ann DeGroft Jennifer Renee Detelich Kenni Elaine Doyle Owen William Drugan Laura W. DuBose Glenn E. Emery Joy Michelle Eure Shandra Leah Faw Diana Moore Fishburne Amy Malpass Fowler Angela Eubanks Fowler Michael Eric Friedlander Mitchell Clare Grondalski Gregory Merle Hathorne Donna L. Hawkins Sonia R. Hines Brandie P. Hodge Kellie Dawn Honeycutt Timothy Caine Hooks Terry Lynn Howell Amy Shea Howie Jonathan Bradley Hoy Ryan Dale Hunsucker Elizabeth Lee Integlia Angela Dawn Jarvis Cathleen Barbara Johnson Stacie Lynn Kimes Jones Diane Lynn Jost Jennifer Leigh Karriker Karen Lee Kelley Amy Rebecca King Tracy Elizabeth Lebos John C. Lenker, II Jonathan Michael McCarty Eileen N. McGinn Tamara Danielle McMahan Megan Joy Hart Michaels Aaron Douglas Milheim Jaylene Moss Jason Scott Murphy Susan Joy Murphy Joseph Gerald Nawrocki Leah S. Nazworth Nghi Phuong Ngo Jin Su Park Kirsten Lynn Parriott John Robert Peirson Joanna Marie Phillips Hope Shammara Piggee Matthew Weber Pohlman Patrick Vincent Powers John Christopher Purdy Katherine Lentz Rendleman Jennifer Lynn Shafer Johnathan Brook Smith Kristy Lynn Smith Paula Elisabeth Smith Rachel Elaine Smith Sun Cho Song Melissa A. Stewart Alicia Jones Stone Melinda Reynolds Storey John William Struble Stacie Denise Suggs Anita Davis Surphlis Kathy Lewis Tillman Barry Cornell Webb, Jr. Kathleen Lorraine White Carolina Wibmer James Anthony Wittmer Alan Richard Wood IRS Taxpayer Assistance Numbers The Internal Revenue Service ( IRS) has established the following taxpayer as-sistance telephone numbers: • 1- 800- TAX- 1040 - for individuals • 1- 800- TAX 4933 - for small businesses related to business returns, 940, 941, 1041, 1065, 1120, 1120S, excise returns, estate and gift returns, and EINs • 1- 800- TAX 1954 - refund hotline for 1040s only • 1- 800- TAX- FORM - forms and publi-cations • 1- 877- 777- 4778 - National Taxpayer Advocate • 1- 800- 555- 4477 or 1- 800- 945- 8400 - EFTPS hotline • 1- 877- TAX- 5500 - tax- exempt and government helpline, including retire-ment plans • 1- 866- 860- 4259 - Practitioner Priority Service Volunteers Needed for Exam Committees The National Association of State Boards of Accountancy ( NASBA) has asked the NC State Board of CPA Exam-iners to recommend qualified individu-als to participate in all aspects of the Uniform CPA Examination program. For 2003- 2004, recommendations are needed for the AICPA Board of Ex-aminers; the Content Committee and its subcommittees; the International Uni-form Certified Public Accountant Quali-fication Examination ( IQEX); and vari-ous task forces. For detailed information, such as objectives, major initiatives, qualifica-tions, and annual time commitments, on the Board of Examiners and the com-mittees, please visit the Board’s web site ( www. state. nc. us/ cpabd). If you are interested in serving on a committee or task force, please contact Robert N. Brooks, the Board’s Executive Director, by telephone at ( 919) 733- 1425 or via e- mail at rnbrooks@ bellsouth. net. 6 Inactive Status “ 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” nor 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)]. 11/ 22/ 02 Angela D. DeBoeser Raleigh, NC 11/ 22/ 02 Andrea Lavery Maas Greensboro, NC 11/ 25/ 02 Robert Dayle Voigt Mount Pleasant , SC 11/ 25/ 02 Amy Blackard Weir Raleigh, NC 11/ 26/ 02 Gary M. Kramer Matthews, NC 12/ 03/ 02 Sarah Zinner Folsom, CA 12/ 09/ 02 Carla L. Peterson Chapel Hill, NC 12/ 09/ 02 James Davidson Rizzo Denver, NC 12/ 09/ 02 Carla Carbonara Rizzo Huntersville, NC 12/ 09/ 02 Grant Joel Johnson Bountiful, UT 12/ 10/ 02 Paula Marie Toole Matthews, NC 12/ 10/ 02 Andrea Babbitt Snyder Charlotte, NC 12/ 12/ 02 Amy Swing Heese Pelham, NY 12/ 12/ 02 Mona Vijay Doshi New York, NY 12/ 16/ 02 Ginger Lynn Lanier Huntersville, NC 12/ 17/ 02 William MacMinn Fort Mill, SC 12/ 19/ 02 Wallace Reid Kearns Asheboro, NC 12/ 19/ 02 John Richard Goodwin Cary, NC 12/ 19/ 02 Scott Donald Schauer Raleigh, NC 12/ 23/ 02 Elizabeth Sue Rinehardt Concord, NC 12/ 23/ 02 Terry Wells Baker Raleigh, NC 12/ 27/ 02 Julia Pruett Dameron Knoxville, TN 12/ 30/ 03 George William Clapp Westfield, NC 12/ 30/ 02 Marcus Alan Dedmond Ellenboro, NC 12/ 30/ 02 William Homer Saunders, Jr. Walterboro, NC 12/ 30/ 02 Carolyn Stevenson Offill Hickory, NC 12/ 30/ 02 William Arthur Prosser, III Richmond, VA 12/ 30/ 02 Philip Roe Warren Durham, NC 12/ 30/ 02 Eric V. Schmid Cleveland, OH 01/ 07/ 03 Ann Astin Hardin Matthews, NC 01/ 07/ 03 James Wesley Carland, Jr. Cullowhee 01/ 07/ 03 Jeffrey Warren Battle Wilmington, NC 01/ 07/ 03 Jane Harris Pate Durham, NC 01/ 07/ 03 Marc Cullen Apex, NC 01/ 07/ 03 Emily Dearman Cullen Apex, NC 01/ 07/ 03 Angela Rosemarie Smith Charlotte, NC 01/ 07/ 03 Suzanne H. Macy Charlotte, NC 01/ 07/ 03 Cynthia Burgess Fischer Longboat Key, FL 01/ 07/ 03 Bridgett Mathis Pratt Charlotte, NC 01/ 09/ 03 Barbara Gail Hein Raleigh, NC 01/ 09/ 03 Judith Ann Johnson- Cohen Waxhaw, NC 01/ 14/ 03 Janice Toothaker Gore High Point, NC 01/ 14/ 03 Allison Jane Leonard Kentwood, MI Reclassifications Reinstatements 12/ 17/ 02 Claire Crepeau Hinspeter, # 19237 Janet Willard Holbrook, # 14399 Shawn Francis Kowalewski, # 25583 Beth G. Monaghan, # 19255 Gary Lee Ward, # 16814 01/ 21/ 03 Karen Hutchison Curran, # 13599 James Michael Farless, # 21964 Gina Parrott Glick, # 22872 Richard R. Hodge, # 23123 Richard Sterling Ingram, Jr., # 16111 Ross William McCanless, # 19768 Joseph C. Osborn, # 27697 Terry Fletcher Pope, # 8195 Susan McBride Richardson, # 19686 William Kenneth Wease, # 12286 Retired “ Retired,” when used to refer to the status of a person, describes one possessing 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)]. 12/ 17/ 02 Carl Wilkins Lumberton, NC 01/ 21/ 03 Christine Carol Hildebrand Apex, NC Kelly Howard Young Waxhaw, NC IRS Form W- 9 If you need a copy of the Board’s IRS Form W- 9, please visit the Board’s web site ( www. state. nc. us/ cpabd) and click on the “ Forms” link. 7 Commissions and Referral Fees What is the difference between a commission and a referral fee? A commission is compensation for recommending a product for sale or service to be provided by the CPA or a third party. The commission is always based on whether the product is purchased or the service is provided. A referral fee is compensation paid by a third party to a CPA for referring a client to the third party for the sale of a product or service to be provided by the third party. The referral fee is usually not based on whether the product is pur-chased or the service is provided to the client. May I accept a commission or referral fee from a client for whom I provide audit or review services? 21 NCAC 8N .0303( c) prohibits a CPA from accepting a commission or contingent fee from clients for whom you provide audit or review services. 21 NCAC 8N .0303( c) allows, in limited circumstances, the accep-tance or a commission or contingent fee from a client for whom you pro-vide the compilation of financial statements. I have a friend who is a licensed real estate broker. May I receive a refer-ral fee for referring a client to him? May I receive a commission if my friend sells a house to my client? In North Carolina, only indi-viduals licensed by the NC Real Es-tate Commission ( NCREC) may re-ceive a referral fee for the referral of a client or receive a commission for the sale of real estate, so you may not receive a referral fee or commission from your friend. My friend is a licensed insurance agent. May I receive a referral fee for referring a client to her? May I receive a commission if the client purchases a policy from my friend? A CPA may receive a referral fee from a licensed agent, agency, or insurance company as long as the fee is not contingent upon the sale of an insurance product or service. The NC Department of Insurance ( NCDOI) pro-hibits referral fees based on a sale. A CPA who is licensed by the NCDOI may be paid a commission by, or split a commission with, a licensed agent, agency, or insurance company for the sale of products or services to a client that is referred to the agent, agency, or insurance company by the CPA. May I receive a referral fee for refer-ring my clients to the company that prints my checks? If you comply with 21 NCAC 8N .0303( c) and ( e), you may accept a referral fee for referring your clients to the company that prints your checks. I have a friend who is a stockbroker. May I receive a referral fee for refer-ring a client to him? May I receive a commission if my friend sells stocks or mutual funds to the client? A stockbroker may not pay a refer-ral fee to any person other than a li-censed employee of the broker/ dealer firm. Likewise, a stockbroker may not pay to, or split a commission with, any person other than a licensed employee of the broker/ dealer firm. May a CPA receive a referral fee or commission from a registered invest-ment advisory firm? A CPA may receive a referral fee for referring a client to a registered invest-ment advisory ( RIA) firm only if the CPA is properly registered as an invest-ment advisory representative ( IA) with the RIA firm. In some cases, there may be an ex-ception to registering as an IA. The Se-curities Division of the Office of the NC Secretary of State can provide informa-tion on registering as an IA or an RIA firm. A CPA may receive a commission from the RIA firm for placement of a client’s funds for asset management by the RIA firm. A CPA may be registered with more than one investment adviser only in the following two situations: all of the investment advisers with whom the investment adviser representative wishes to be associated are under com-mon ownership or control; or the in-vestment adviser representative is act-ing as a “ solicitor” for more than one investment adviser firm. A “ solicitor” is a person who receives compensa-tion for referring business to an invest-ment adviser firm. What, if anything, am I required to disclose to a client if I receive a refer-ral fee or commission? A disclosure to a client regarding a referral fee or commission must meet the following requirements: • The disclosure must be in writing; • The disclosure must be dated; • The disclosure must state the service or product to be rendered or referred as well as the amount of the referral fee or commis-sion to be charged; • The disclosure must be made by the CPA and signed by the client prior to the referral, sale, or performance of services; • The disclosure must be made on every referral, sale, or service to be pro-vided to the client; and • A copy of the disclosure must be provided to the client. Which Board rules that I should read and understand before I accept a re-ferral fee or commission? Before accepting a referral fee or commission, you should be familiar with the following: 8N .0202( b)( 6)( 7)( 8) - Deceptive Conduct Prohibited; 8N .0204( a) - Discipline by Federal and State Authorities; 8N .0205( a) - Confidentiality; 8N .0212 - Competence; 8N .0301( a) - Professional Judgment; 8N .0303 - Objectivity and Conflicts of Interest; 8N .0304 - Management Consulting Service Standards; 8N .0305 - Retention of Client Records; and 8N .0402 - Independence If you have any questions regard-ing commissions or referral fees, please contact Robert N. Brooks, Executive Director of the Board, by telephone at ( 919) 733- 1425 or via e- mail ( rnbrooks@ bellsouth. net). 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 $ 2,994.28 ( approximately 14¢ per copy) in February 2003. 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 PO Box 12827 Raleigh, NC 27605- 2827 State Board of CPA Examiners Board Members O. Charlie Chewning, Jr., CPA President, Raleigh Michael H. Wray Vice- President, Gaston Walter C. Davenport, CPA Secretary- Treasurer, Raleigh Barton W. Baldwin, CPA Member, Mount Olive Scott L. Cox, CPCU, CIC Member, Charlotte Leonard W. Jones, CPA Member, Morehead City R. Stanley Vaughan, CPA Member, Charlotte 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 Martha Traina Professional Standards Ann J. Hinkle, Manager Jo Gaskill Marie Moss Receptionist Libby Carson
Object Description
Description
Title | Activity review |
Date | 2003-02 |
Description | No.2, 2003 (February) |
Digital Characteristics-A | 53.1 KB; 8 p. |
Digital Format |
application/pdf |
Pres Local File Path-M | \Preservation_content\StatePubs\pubs_borndigital\images_master\ |
Full Text | Activity Review North Carolina State Board of Certified Public Accountant Examiners 1101 Oberlin Road, Suite 104 • PO Box 12827 • Raleigh, NC 27605 • ( 919) 733- 4222 • No. 2- 2003 Inside this issue... Certificates Issued ............................. 5 Commissions & Referral Fees .......... 7 Disciplinary Actions ......................... 2 Exam Committees .............................. 5 Inactive Status ................................... 6 IRS Form W- 9 ..................................... 6 Taxpayer Assistance Numbers ........ 5 Notice of Address Change ............... 8 Reclassifications ................................ 6 www. state. nc. us/ cpabd NOTE: Not all requirements for the com-puter- based Uniform CPA Examination have been finalized. The following answers are believed to be accurate, but are subject to change as the implementation of the CBT draws closer and will be updated as more information becomes available. These an-swers were last updated January 8, 2003. Frequently Asked Questions about the Computer- Based Exam When is the final administration of the pencil- and- paper Uniform CPA Exami-nation? November 2003 is scheduled to be the final administration of the pencil-and- paper exam. When will the computer- based Uni-form CPA Examination ( CBT) be intro-duced? The CBT is scheduled for introduc-tion by May 2004. Will the content of the CBT be different from the content of the pencil- and- pa-per exam? Yes, the content of the CBT will be different from the content of the pencil-and- paper exam. ( For a comparison of the two exams, please see chart on page 4.) What are the content changes? Information on the proposed struc-ture and content of the CBT is discussed in “ Proposed Structure & Content Speci-fications for the Uniform CPA Examina-tion,” which is available for download from www. cpa- exam. org, the AICPA’s exam web site. What is the length of the CBT? The CBT will be 14 hours long whereas the pencil- and- paper exam is 15.5 hours long. ( For a comparison of the two exams, please see chart on page 4.) Will the CBT include essay questions? Yes, essays ( constructed responses) will be incorporated into the exam simu-lations. Are the education requirements for tak-ing the exam also changing? The education requirements for the CBT are the same as the education re-quirements for the pencil- and- paper exam. Will I still have 120 days after taking the exam to meet the educational require-ments? Yes, you will still have 120 days after taking the exam to meet the educational requirements. Will the fee for taking the exam in-crease? Yes, there will be an increase in the fee to take the exam. The estimated total cost for all four sections of the CBT is between $ 500.00 - $ 700.00. Will my current conditioning change under the CBT? A candidate will retain credit for the sections of the exam already passed. However, if a candidate does not pass the remaining sections of the exam prior to October 31, 2005, the credits earned on the pencil- and- paper exam will expire. How will my current credits transfer to the CBT? Credits earned on the pencil- and-paper exam will transfer to the CBT as shown in the chart on page 4. How much time do I have to pass all sections of the CBT? Once you receive credit for a section of the exam, you will be allowed a maxi-mum of 18 months to pass all remaining sections of the exam in order to retain credit for the passed section. What is a “ testing window”? The CBT will be available approxi-mately 60 days out of each calendar quarter. This 60 day period is called a testing window and there will be four testing windows each calendar year. A candidate may take any of the four exam sections during any testing win-dow. However, a candidate may take each section of the exam only one time during a testing window. CBT continued on page 4 Disciplinary Actions 2 Name Not Published 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 a certifi-cate as a Certified Public Accountant in North Carolina. 2. In a complaint filed with the Board, Complainant stated that she and her ex-husband were members of a Limited Liability Company ( LLC). She stated further that Respondent prepared the LLC’s tax returns including a K- 1 that the LLC had sent her. Complainant fur-ther alleged that upon receiving a K- 1, she had contacted Respondent in his capacity as certified public accountant for the LLC that she co- owned and re-quested documentation supporting the income and withdrawals for the Complainant’s capital account. The K- 1 indicated that Complainant had owned ninety- five ( 95) per cent of the LLC during the period covered by the K- 1. Complainant asserted that Respon-dent refused to provide these requested records to Complainant. Respondent contends that he was not obligated un-der the accountancy rules to return LLC records to the Complainant since she was not, at the time of the request, the designated Manager of the LLC. 3. According to the Complainant, some-time after the request referenced in # 2 above, Complainant also requested cop-ies of the joint tax returns prepared by Respondent over the last five ( 5) years for Complainant and her ex- husband. Complainant alleges that Respondent also refused to provide her with the requested copies of the joint tax returns. Respondent contends that he never re-ceived complainant’s request for the joint tax returns. 4. Despite at least two written demands, Respondent failed to respond to the Board’s requests for an explanation as to how his actions would comply with Board rules regarding the return of cli-ent records. Respondent contends that he did not intentionally fail to respond to the Board and that he relied upon his attorney to respond. Said attorney was legal counsel for the complainant’s ex-husband and had actually retained Respondent as an expert “ in anticipa-tion of the litigation” between the com-plainant and her ex- husband. Respon-dent did not agree to compensate said attorney and the attorney never repre-sented to the Board that he was also serving as Respondent’s attorney. 5. Respondent contends that he did not intentionally violate the accountancy statutes and rules. Nevertheless, Re-spondent wishes to resolve this matter by consent and agrees that the Board staff and counsel may discuss this Or-der with the Board ex parte, whether or not the Board accepts this Order as writ-ten. 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 Carolina Administrative Code ( NCAC), includ-ing the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board. 2. Respondent’s failures to return client records upon demand represent viola-tions of NCGS 93- 12( 9) e, and 21 NCAC 8N .0305. 3. Respondent’s failures to cooperate with Board inquiries represents viola-tions of NCGS 93- 12( 9) e and 21 NCAC 8N .0206. 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 shall receive an unpub-lished reprimand. 2. Respondent shall reimburse the Board for administrative costs incurred in the cost of this investigation. David B. Watkins # 26877 Cumming, GA 01/ 21/ 03 THIS CAUSE, coming before the Board at its offices at 1101 Oberlin Road, Raleigh, 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 was the holder of North Carolina certificate number 26877 as a Certified Public Accountant. 2. In July of 1999, Respondent was notified in a letter from Robert N. Brooks that his application for an original CPA certificate had been granted by the North Carolina State Board of CPA Examiners ( Board). 3. In June of 2000, Respondent signed and submitted to the North Carolina Secretary of State’s office an Applica-tion for Certificate of Authority on be-half of Winn Caribe Communications, Inc., ( Winn Caribe) a Georgia corpora-tion and a wholly owned subsidiary of CoreNet Services Inc. In said applica-tion, Respondent was identified as the Assistant Secretary. 4. On his 2001- 2002 individual certifi-cate renewal as filed with the Board in June of 2001, Respondent denoted that his employer and employment address had changed to “ CoreNet Services, Inc., 3500 Parkway Lane, Norcross, Georgia 30092.” 5. Sometime in the spring of 2001, while an employee of CoreNet Services, Inc., Respondent prepared, as an individual practitioner located in Cumming, Geor-gia, a reviewed financial statement on behalf of Winn Caribe. During this time period, Respondent was not registered with the Board as offering services through an individual practitioner firm and was not registered as participating in a Board- sanctioned peer review pro-gram. 6. In said reviewed financial statement, Respondent did not disclose any lack of independence. In an e- mail dated May 31, 2001, Respondent informed an official with Winn Caribe that his prepa-ration of the reviewed financial state-ment was a violation of the American Institute of Certified Public Accoun- 3 tants’ ( AICPA) ethics rules and “ possi-bly a violation of North Carolina law.” 7. Sometime in 2001, Winn Caribe, with Respondent’s knowledge, submitted the reviewed financial statements to the Ar-kansas Contractors Licensing Board ( Arkansas Licensing Board) in support of Winn Caribe’s renewal application for a contractors license in Arkansas. 8. In April of 2002, Respondent re-quested that his North Carolina certifi-cate be placed on “ inactive” status. Under 21 NCAC 8J .0106, Respondent could have subsequently applied to change the status of his North Carolina certificate to “ active” status. 9. In May of 2002, the attorney for the Arkansas Licensing Board filed a com-plaint with the Board alleging that Re-spondent had failed to comply with North Carolina’s statutes and rules. 10. As an employee of Winn Caribe’s parent company and as an officer in Winn Caribe, Respondent was not in-dependent with respect to Winn Caribe and therefore could not, in accordance with applicable accounting and audit-ing standards, provide Winn Caribe with reviewed financial statements. 11. 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 Carolina Administrative Code ( NCAC), includ-ing the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board. 2. Respondent’s actions as set out above constitute violations of NCGS 93- 12( 7b), 93- 12( 8c), 93- 12( 9) d, and 93- 12( 9) e and 21 NCAC 8J .0108, 8M .0102, 8N .0201, 8N .0202( a), 8N .0202( b)( 3), 8N .0203( a), 8N .0203( b)( 1), 8N .0204( a), 8N .0209, 8N .0301 ( a), 8N .0303( a), 8N .0402( a), 8N .0403, 8N .0404, and 8N .0406. 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’s CPA certificate status is hereby changed from inactive to per-manently revoked. John Thomas Margeson # 9521 Raleigh, NC 01/ 21/ 03 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 9521 as a Certified Public Accountant. 2. In May of 2001, Respondent was charged with the misdemeanor of im-personating a duly authorized em-ployee of the North Carolina Depart-ment of Health [ a violation of NCGS 14- 277] and with “ unlawfully, willfully and feloniously” violation NCGS 14- 277.3 [ stalking]. 3. Also, in May of 2001, Respondent was cited for possession of less than ½ ounce of marijuana, a controlled sub-stance. 4. Sometime later in 2001, Respondent was found “ not guilty” on the charge of impersonating an authorized employee of the North Carolina Department of Health. 5. In early 2002, Respondent was con-victed of stalking a sixteen- year- old girl and of possessing less than ½ ounce of marijuana. Respondent appealed both convictions. 6. In August of 2002, Respondent noti-fied the Board that he has dropped both appeals and had requested that the cases be remanded to District Court for sen-tencing. 7. In an Order issued by Judge Anne Salisbury on July 29, 2002, Respondent was sentenced to 45 days of imprison-ment. The sentence was suspended sub-ject to the following conditions: that Respondent’s pay $ 190.00 in fines and costs; that Respondent participate in a mental health and substance abuse as-sessment; that Respondent not have any contact with the sixteen year old girl; and that Respondent stay away from any public school grounds unless Respondent’s child is involved in a school function. Respondent was placed on eighteen ( 18) months of un-supervised probation. 8. Respondent did not report the charges described above on his individual 2001- 2002 certificate renewal. 9. Respondent did not provide the Board with any information regarding the charges until Board staff sent a letter to his last known home address in Decem-ber of 2001. 10. Despite a request by Board staff that Respondent keep the Board apprised of the charges, Respondent did not pro-vide subsequent information regarding the charges except in response to direct requests from Board staff. 11. 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 Carolina Administrative Code ( NCAC), includ-ing the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board. 2. Respondent’s actions as set out above constitute violations of NCGS 93- 12( 9) e and 21 NCAC 8N .0201, .0203, .0204, .0206, and .0208. 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’s certificate is revoked for a period of at least eighteen ( 18) months. 2. Respondent may apply for the rein-statement of his certificate after at least eighteen ( 18) months and as long as he has completed his sentence of proba-tion as ordered by the Court and as long as he has not been convicted of any other criminal offense during the revocation period. 4 ferent tests, the specifications will en-sure that the results are comparable. The specifications will also include “ exposure controls” to limit the extent to which examinees are administered the same sets of questions. With candidates taking different tests, how do you ensure that each candidate is being correctly assessed? The test delivery system will ensure that all tests meet content and psycho-metric specifications. The testing package delivered to test centers will contain not only test items, but also the rules for the adminis-tration of tests drawn from that collec-tion of items. All items will be classified accord-ing to their content and statistical prop-erties before they are administered in an operational test. The testing software will then ad-minister items according to the specifi-cations to ensure that each candidate is administered a test of appropriate con-tent coverage and difficulty. Who will be responsible for certifying someone as an ADA candidate? State boards will continue to deter-mine if a candidate qualifies as an ADA candidate. Will the scoring/ grading change to pass/ fail with the CBT? It has not been determined if candi-dates will continue to receive numerical grades or if grades will be reported only as pass/ fail. Can I immediately find out my score/ grade after taking a section of the exam? No, the CBT will contain structured responses that must be transmitted to the AICPA for scoring. When will I receive my scores/ grades? There will no longer be a Uniform Grade Mailing Date. The CBT will con-tain structured responses that must be transmitted to the AICPA for scoring, so it is anticipated that it will be several weeks before scores/ grades are avail-able for mailing. Can I request a review of my grades or an appeal of my grades under the CBT? Yes, you can still request a review or an appeal of your grades, but the process will be slightly different than with the pencil- and- paper exam. How often can I take the CBT? A candidate will be allowed to take each section of the exam up to four times a year with a limit of one time per section in each testing window. What will be the deadlines for apply-ing to take the CBT? Application deadlines will be elimi-nated, allowing candidates to apply at any time of year. Where will the CBT be administered? The NC State Board of CPA Exam-iners has not yet determined if it will operate its own testing center or use a Prometric testing center. Will the CBT inhibit state boards’ abil-ity to monitor candidates? No. State boards’ responsibilities will not be diminished or negatively affected by the CBT. State boards will continue to determine candidates’ eligi-bility and notify candidates of their grades. State boards have the responsi-bility to administer or oversee the ad-ministration of the exam in their juris-diction. What assistance will be provided to candidates to help them prepare for the CBT? Familiarization materials will be available on the AICPA’s exam web site ( www. cpa- exam. org) and on CD- ROM. The AICPA will develop the mate-rials and will make them available to state boards, state societies, schools, and candidates, prior to the launch of the CBT. Will I be required to take all four sec-tions in a two- day period? No, you may take each section sepa-rately and you will schedule when you want to take each section. Will I be required to take the sections in a specific order? No, you can choose to take the sec-tions in any order. Will I be required to pass one section of the exam before applying to take an-other section? No, you will not be required to pass one section before applying to take an-other section of the exam. Once I apply for the exam, how long will it be before I actually take the exam? The Board will need to verify a first-time ( initial) candidate’s educational eligibility before issuing a “ Notice to Schedule,” so the process will take a few weeks. A re- exam candidate should receive a Notice to Schedule within a few days of applying to the Board. The Notice to Schedule is valid for 6 months from the date of issue, so you will have a set period of time to schedule and take the exam section( s). How will I schedule an appointment to take the exam? After applying to the Board and receiving a Notice to Schedule, you will contact the testing center to schedule a testing appointment. The Notice to Schedule is valid for 6 months from the date of issue, so you will have a set period of time to schedule and take the exam section( s). Will all candidates take the same ex-amination, or will each candidate take a different test? Candidates will take different, equivalent exams. In the computerized testing environment, each candidate’s examination will consist of items drawn from a pool of test questions according to defined specifications. Although candidates will take dif- CBT continued from front COMPUTER- BASED EXAM Auditing & Attestation ( 4.0 hours) Financial Accounting & Reporting ( 4.0 hours) Regulation ( 3.0 hours) Business Environment & Concepts ( 2.5 hours) PAPER- AND- PENCIL EXAM Auditing ( 4.5 hours) Financial Accounting & Reporting ( 4.5 hours) Accounting & Reporting ( 3.5 hours) Business Law & Professional Responsibilities ( 3.0 hours) 5 The following applications for certification were approved by the Board at its December 17, 2002, and January 21, 2003, meetings: Certificates Issued Brian Kirk Arney Sheila Jones Bacelli Sue Styles Bailey Carl Franklin Beal, III Sarah E. Blanchard James A. Blevins Rhonda Vashti Brickner Claire Melissa Burrell Mary Elizabeth Cannady Jamie Michael Coffey Tara Jacqueline Corcoran Melanie Ann DeGroft Jennifer Renee Detelich Kenni Elaine Doyle Owen William Drugan Laura W. DuBose Glenn E. Emery Joy Michelle Eure Shandra Leah Faw Diana Moore Fishburne Amy Malpass Fowler Angela Eubanks Fowler Michael Eric Friedlander Mitchell Clare Grondalski Gregory Merle Hathorne Donna L. Hawkins Sonia R. Hines Brandie P. Hodge Kellie Dawn Honeycutt Timothy Caine Hooks Terry Lynn Howell Amy Shea Howie Jonathan Bradley Hoy Ryan Dale Hunsucker Elizabeth Lee Integlia Angela Dawn Jarvis Cathleen Barbara Johnson Stacie Lynn Kimes Jones Diane Lynn Jost Jennifer Leigh Karriker Karen Lee Kelley Amy Rebecca King Tracy Elizabeth Lebos John C. Lenker, II Jonathan Michael McCarty Eileen N. McGinn Tamara Danielle McMahan Megan Joy Hart Michaels Aaron Douglas Milheim Jaylene Moss Jason Scott Murphy Susan Joy Murphy Joseph Gerald Nawrocki Leah S. Nazworth Nghi Phuong Ngo Jin Su Park Kirsten Lynn Parriott John Robert Peirson Joanna Marie Phillips Hope Shammara Piggee Matthew Weber Pohlman Patrick Vincent Powers John Christopher Purdy Katherine Lentz Rendleman Jennifer Lynn Shafer Johnathan Brook Smith Kristy Lynn Smith Paula Elisabeth Smith Rachel Elaine Smith Sun Cho Song Melissa A. Stewart Alicia Jones Stone Melinda Reynolds Storey John William Struble Stacie Denise Suggs Anita Davis Surphlis Kathy Lewis Tillman Barry Cornell Webb, Jr. Kathleen Lorraine White Carolina Wibmer James Anthony Wittmer Alan Richard Wood IRS Taxpayer Assistance Numbers The Internal Revenue Service ( IRS) has established the following taxpayer as-sistance telephone numbers: • 1- 800- TAX- 1040 - for individuals • 1- 800- TAX 4933 - for small businesses related to business returns, 940, 941, 1041, 1065, 1120, 1120S, excise returns, estate and gift returns, and EINs • 1- 800- TAX 1954 - refund hotline for 1040s only • 1- 800- TAX- FORM - forms and publi-cations • 1- 877- 777- 4778 - National Taxpayer Advocate • 1- 800- 555- 4477 or 1- 800- 945- 8400 - EFTPS hotline • 1- 877- TAX- 5500 - tax- exempt and government helpline, including retire-ment plans • 1- 866- 860- 4259 - Practitioner Priority Service Volunteers Needed for Exam Committees The National Association of State Boards of Accountancy ( NASBA) has asked the NC State Board of CPA Exam-iners to recommend qualified individu-als to participate in all aspects of the Uniform CPA Examination program. For 2003- 2004, recommendations are needed for the AICPA Board of Ex-aminers; the Content Committee and its subcommittees; the International Uni-form Certified Public Accountant Quali-fication Examination ( IQEX); and vari-ous task forces. For detailed information, such as objectives, major initiatives, qualifica-tions, and annual time commitments, on the Board of Examiners and the com-mittees, please visit the Board’s web site ( www. state. nc. us/ cpabd). If you are interested in serving on a committee or task force, please contact Robert N. Brooks, the Board’s Executive Director, by telephone at ( 919) 733- 1425 or via e- mail at rnbrooks@ bellsouth. net. 6 Inactive Status “ 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” nor 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)]. 11/ 22/ 02 Angela D. DeBoeser Raleigh, NC 11/ 22/ 02 Andrea Lavery Maas Greensboro, NC 11/ 25/ 02 Robert Dayle Voigt Mount Pleasant , SC 11/ 25/ 02 Amy Blackard Weir Raleigh, NC 11/ 26/ 02 Gary M. Kramer Matthews, NC 12/ 03/ 02 Sarah Zinner Folsom, CA 12/ 09/ 02 Carla L. Peterson Chapel Hill, NC 12/ 09/ 02 James Davidson Rizzo Denver, NC 12/ 09/ 02 Carla Carbonara Rizzo Huntersville, NC 12/ 09/ 02 Grant Joel Johnson Bountiful, UT 12/ 10/ 02 Paula Marie Toole Matthews, NC 12/ 10/ 02 Andrea Babbitt Snyder Charlotte, NC 12/ 12/ 02 Amy Swing Heese Pelham, NY 12/ 12/ 02 Mona Vijay Doshi New York, NY 12/ 16/ 02 Ginger Lynn Lanier Huntersville, NC 12/ 17/ 02 William MacMinn Fort Mill, SC 12/ 19/ 02 Wallace Reid Kearns Asheboro, NC 12/ 19/ 02 John Richard Goodwin Cary, NC 12/ 19/ 02 Scott Donald Schauer Raleigh, NC 12/ 23/ 02 Elizabeth Sue Rinehardt Concord, NC 12/ 23/ 02 Terry Wells Baker Raleigh, NC 12/ 27/ 02 Julia Pruett Dameron Knoxville, TN 12/ 30/ 03 George William Clapp Westfield, NC 12/ 30/ 02 Marcus Alan Dedmond Ellenboro, NC 12/ 30/ 02 William Homer Saunders, Jr. Walterboro, NC 12/ 30/ 02 Carolyn Stevenson Offill Hickory, NC 12/ 30/ 02 William Arthur Prosser, III Richmond, VA 12/ 30/ 02 Philip Roe Warren Durham, NC 12/ 30/ 02 Eric V. Schmid Cleveland, OH 01/ 07/ 03 Ann Astin Hardin Matthews, NC 01/ 07/ 03 James Wesley Carland, Jr. Cullowhee 01/ 07/ 03 Jeffrey Warren Battle Wilmington, NC 01/ 07/ 03 Jane Harris Pate Durham, NC 01/ 07/ 03 Marc Cullen Apex, NC 01/ 07/ 03 Emily Dearman Cullen Apex, NC 01/ 07/ 03 Angela Rosemarie Smith Charlotte, NC 01/ 07/ 03 Suzanne H. Macy Charlotte, NC 01/ 07/ 03 Cynthia Burgess Fischer Longboat Key, FL 01/ 07/ 03 Bridgett Mathis Pratt Charlotte, NC 01/ 09/ 03 Barbara Gail Hein Raleigh, NC 01/ 09/ 03 Judith Ann Johnson- Cohen Waxhaw, NC 01/ 14/ 03 Janice Toothaker Gore High Point, NC 01/ 14/ 03 Allison Jane Leonard Kentwood, MI Reclassifications Reinstatements 12/ 17/ 02 Claire Crepeau Hinspeter, # 19237 Janet Willard Holbrook, # 14399 Shawn Francis Kowalewski, # 25583 Beth G. Monaghan, # 19255 Gary Lee Ward, # 16814 01/ 21/ 03 Karen Hutchison Curran, # 13599 James Michael Farless, # 21964 Gina Parrott Glick, # 22872 Richard R. Hodge, # 23123 Richard Sterling Ingram, Jr., # 16111 Ross William McCanless, # 19768 Joseph C. Osborn, # 27697 Terry Fletcher Pope, # 8195 Susan McBride Richardson, # 19686 William Kenneth Wease, # 12286 Retired “ Retired,” when used to refer to the status of a person, describes one possessing 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)]. 12/ 17/ 02 Carl Wilkins Lumberton, NC 01/ 21/ 03 Christine Carol Hildebrand Apex, NC Kelly Howard Young Waxhaw, NC IRS Form W- 9 If you need a copy of the Board’s IRS Form W- 9, please visit the Board’s web site ( www. state. nc. us/ cpabd) and click on the “ Forms” link. 7 Commissions and Referral Fees What is the difference between a commission and a referral fee? A commission is compensation for recommending a product for sale or service to be provided by the CPA or a third party. The commission is always based on whether the product is purchased or the service is provided. A referral fee is compensation paid by a third party to a CPA for referring a client to the third party for the sale of a product or service to be provided by the third party. The referral fee is usually not based on whether the product is pur-chased or the service is provided to the client. May I accept a commission or referral fee from a client for whom I provide audit or review services? 21 NCAC 8N .0303( c) prohibits a CPA from accepting a commission or contingent fee from clients for whom you provide audit or review services. 21 NCAC 8N .0303( c) allows, in limited circumstances, the accep-tance or a commission or contingent fee from a client for whom you pro-vide the compilation of financial statements. I have a friend who is a licensed real estate broker. May I receive a refer-ral fee for referring a client to him? May I receive a commission if my friend sells a house to my client? In North Carolina, only indi-viduals licensed by the NC Real Es-tate Commission ( NCREC) may re-ceive a referral fee for the referral of a client or receive a commission for the sale of real estate, so you may not receive a referral fee or commission from your friend. My friend is a licensed insurance agent. May I receive a referral fee for referring a client to her? May I receive a commission if the client purchases a policy from my friend? A CPA may receive a referral fee from a licensed agent, agency, or insurance company as long as the fee is not contingent upon the sale of an insurance product or service. The NC Department of Insurance ( NCDOI) pro-hibits referral fees based on a sale. A CPA who is licensed by the NCDOI may be paid a commission by, or split a commission with, a licensed agent, agency, or insurance company for the sale of products or services to a client that is referred to the agent, agency, or insurance company by the CPA. May I receive a referral fee for refer-ring my clients to the company that prints my checks? If you comply with 21 NCAC 8N .0303( c) and ( e), you may accept a referral fee for referring your clients to the company that prints your checks. I have a friend who is a stockbroker. May I receive a referral fee for refer-ring a client to him? May I receive a commission if my friend sells stocks or mutual funds to the client? A stockbroker may not pay a refer-ral fee to any person other than a li-censed employee of the broker/ dealer firm. Likewise, a stockbroker may not pay to, or split a commission with, any person other than a licensed employee of the broker/ dealer firm. May a CPA receive a referral fee or commission from a registered invest-ment advisory firm? A CPA may receive a referral fee for referring a client to a registered invest-ment advisory ( RIA) firm only if the CPA is properly registered as an invest-ment advisory representative ( IA) with the RIA firm. In some cases, there may be an ex-ception to registering as an IA. The Se-curities Division of the Office of the NC Secretary of State can provide informa-tion on registering as an IA or an RIA firm. A CPA may receive a commission from the RIA firm for placement of a client’s funds for asset management by the RIA firm. A CPA may be registered with more than one investment adviser only in the following two situations: all of the investment advisers with whom the investment adviser representative wishes to be associated are under com-mon ownership or control; or the in-vestment adviser representative is act-ing as a “ solicitor” for more than one investment adviser firm. A “ solicitor” is a person who receives compensa-tion for referring business to an invest-ment adviser firm. What, if anything, am I required to disclose to a client if I receive a refer-ral fee or commission? A disclosure to a client regarding a referral fee or commission must meet the following requirements: • The disclosure must be in writing; • The disclosure must be dated; • The disclosure must state the service or product to be rendered or referred as well as the amount of the referral fee or commis-sion to be charged; • The disclosure must be made by the CPA and signed by the client prior to the referral, sale, or performance of services; • The disclosure must be made on every referral, sale, or service to be pro-vided to the client; and • A copy of the disclosure must be provided to the client. Which Board rules that I should read and understand before I accept a re-ferral fee or commission? Before accepting a referral fee or commission, you should be familiar with the following: 8N .0202( b)( 6)( 7)( 8) - Deceptive Conduct Prohibited; 8N .0204( a) - Discipline by Federal and State Authorities; 8N .0205( a) - Confidentiality; 8N .0212 - Competence; 8N .0301( a) - Professional Judgment; 8N .0303 - Objectivity and Conflicts of Interest; 8N .0304 - Management Consulting Service Standards; 8N .0305 - Retention of Client Records; and 8N .0402 - Independence If you have any questions regard-ing commissions or referral fees, please contact Robert N. Brooks, Executive Director of the Board, by telephone at ( 919) 733- 1425 or via e- mail ( rnbrooks@ bellsouth. net). 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 $ 2,994.28 ( approximately 14¢ per copy) in February 2003. 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 PO Box 12827 Raleigh, NC 27605- 2827 State Board of CPA Examiners Board Members O. Charlie Chewning, Jr., CPA President, Raleigh Michael H. Wray Vice- President, Gaston Walter C. Davenport, CPA Secretary- Treasurer, Raleigh Barton W. Baldwin, CPA Member, Mount Olive Scott L. Cox, CPCU, CIC Member, Charlotte Leonard W. Jones, CPA Member, Morehead City R. Stanley Vaughan, CPA Member, Charlotte 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 Martha Traina Professional Standards Ann J. Hinkle, Manager Jo Gaskill Marie Moss Receptionist Libby Carson |
OCLC number | 20740890 |