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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- 2005 Ethics CPE: Question and Answer Have the rules regarding CPE changed? Yes. Effective January 1, 2005, 21 NCAC 8G .0410 requires that all ac-tive licensees must complete either a two- hour group study professional eth-ics and conduct course or a four- hour self- study professional ethics and con-duct course as part of the annual 40- hour CPE requirement. Does it matter which ethics course I take to fulfill the requirement in 21 NCAC 8G .0410? Yes. Only courses that have been approved by the Board and which are offered by Board- registered CPE spon-sors ( which includes NASBA CPE spon-sors) can be used to fulfill the two- hour group study professional ethics and conduct course or the four- hour self-study professional ethics and conduct course in 21 NCAC 8G .0410. Has the Board approved any ethics courses to meet the ethics CPE require-ment? Yes. As of the December 20, 2004, Board meeting, the Board had approved two courses which will satisfy the ethics CPE requirement--“ North Carolina Ac-countancy Law Course – Ethics, Prin-ciples, and Professional Responsibili-ties,” and “ Professional Ethics and Con-duct.” “ North Carolina Accountancy Law Course – Ethics, Principles, and Profes-sional Responsibilities,” is an eight- hour group study course offered by the North Carolina Association of CPAs ( NCACPA). The NCACPA’s other course, “ Pro-fessional Ethics and Conduct,” is a two-hour group study course. Information about these courses is available from the NCACPA’s web site, www. ncacpa. org. Has the Board approved any self- study ethics CPE courses which will satisfy the requirement in 21 NCAC 8G .0410? No. The Board has not yet approved a self- study ethics course that will sat-isfy the requirement in 21 NCAC 8G .0410. However, the NCACPA is de-veloping a four- hour self- study course which, if approved by the Board, will satisfy the requirement. If I take the NCACPA’s eight- hour course, “ North Carolina Accountancy Law Course – Ethics, Principles, and Professional Responsibilities,” can I use two hours of the course to meet the ethics CPE requirement for this year and then carry- forward the other six hours to meet the requirement for next year? No. Although you may carry the extra hours forward, they will not count towards the ethics CPE requirement in 21 NCAC 8G .0410. The ethics CPE requirement is an annual requirement, so you must take an ethics CPE course every year to remain in compliance with the rule. I took the NCACPA’s eight- hour ac-countancy law course as part of my application for licensure. Do I have to take another ethics CPE course? If you were licensed for the first time in 2005 and you took the NCACPA’s eight- hour accountancy law course in 2005, you may use the course to meet the requirement in 21 NCAC 8G .0410. Does the ethics CPE course count as part of the annual 40- hour CPE require-ment or is it an extra requirement? Whether you take a two- hour group study course, an eight- hour group study course, or a four- hour self- study course, the course will count as part of the an-nual 40- hour CPE requirement. If you have questions about the Board’s CPE rules, please contact Buck Winslow by tele-phone at ( 919) 733- 1421 or by e- mail at buckwins@ bellsouth. net. You may also contact Jodi Nelson by telephone at ( 919) 733- 1423 or by e- mail at jodisnelson @ bellsouth. net. Inside this issue... 2005 Board Meetings ........................ 3 Audit Documentation ....................... 6 Certificates Issued ............................. 3 Disciplinary Actions ..................... 2, 4 Exam Issues, Part VI .......................... 5 Inactive Status .................................... 7 Notice of Address Change ............... 8 Reclassifications ................................ 7 Reporting Net Assets ........................ 6 www. cpaboard. state. nc. us 2 Disciplinary Actions Lloyd Council Folks, # 7761 Kinston, NC 10/ 25/ 2004 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, the Board and Respon-dent stipulate the following Findings: 1. Respondent was the holder of North Carolina certificate number 7761 as a Certified Public Accountant. 2. In September of 2003, four ( 4) Arrest Warrants were issued alleging that Re-spondent had failed “ to pay North Caro-lina Withholding Tax withheld for his employees” for calendar years 1999, 2000, 2001, and 2002. Four ( 4) Arrest Warrants were also issued alleging that Respondent had failed “ to file a tax return” for each of the calendar years 1998, 1999, 2000, and 2001. 3. On January 22, 2004, pursuant to a plea bargain, Respondent entered guilty pleas to four ( 4) counts of failure to file North Carolina individual income tax returns for calendar years 1998, 1999, 2000, and 2001, but the four ( 4) counts of failure to pay withholding taxes were dismissed. 4. The District Court consolidated the four counts for purposes of sentencing, entered an order of conviction, and sen-tenced Respondent to forty- five ( 45) days in Wake County Jail. The sentence was suspended and Respondent was placed on unsupervised probation for twenty-four ( 24) months and ordered to perform one hundred ( 100) hours of community service in the first twelve ( 12) months of probation, pay a one thousand dollar ($ 1,000.00) criminal fine and court costs. 5. Despite at least three requests from Board staff to Respondent for informa-tion regarding Respondent’s failures to pay Employee Withholding Taxes and failures to file North Carolina tax re-turns, Respondent has failed to provide the requested information. 6. Respondent contends that the above described acts and omissions can be attributed to and were a result of serious personal health issues that contributed to extraordinary stress and physical as well as emotional hardships, which, Respondent contends, rendered Re-spondent unable to comply with dead-lines placed upon him by the Board as well as by tax authorities, but that such stress and hardships only affected his own affairs and not the interests of his clients. 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 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) b and e and 21 NCAC 8N .0201, .0202( a), .0203( b)( 1), .0204( c), .0206, .0207, and .0208( b). 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. The Certified Public Accountant cer-tificate issued to Respondent Lloyd Council Folks is hereby perma-nently revoked. David N. Hemphill, # 11778 Asheville, NC 12/ 20/ 2004 THIS CAUSE coming before the Board on December 20, 2004, 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 pre-sented, that: FINDINGS OF FACT 1. David N. Hemphill ( hereinafter “ Mr. Hemphill”) is the holder of a cer-tificate as a Certified Public Accountant in North Carolina and is therefore sub-ject to the provisions of Chapter 93 of the North Carolina General Statutes ( NCGS) and Title 21, Chapter 8 of the North Carolina Administrative Code ( NCAC), including the Rules of Professional Eth-ics and Conduct promulgated and adopted therein by the Board. 2. Mr. Hemphill failed to timely obtain a State Quality Review ( SQR) in accor-dance with provisions as required by NCGS 93- 12( 8c) and 21 NCAC 8M. 0102. 3. Mr. Hemphill has subsequently failed to provide documentation to the Board that his SQR has been completed and is in excess of 120 days from the required completion date. CONCLUSIONS OF LAW 1. Mr. Hemphill’s failure to timely ob-tain a SQR prior to the prescribed completion date is a violation of NCGS 93- 12( 8c) and 21 NCAC 8M .0102. BASED ON THE FOREGOING, the Board orders that: 1. Mr. Hemphill’s certificate is sus-pended for at least thirty ( 30) days from the date this Order is approved and until the required SQR compliance in-formation is received by the Board. 2. If Mr. Hemphill 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. 3. If Mr. Hemphill returns his suspended certificate within fifteen ( 15) days of the receipt of this Order, Mr. Hemphill can, after at least thirty ( 30) days, and the completion of his firm’s SQR, 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, 3 Certificates Issued Emily Williams Arledge Margaret Olivia Ashburn Pamela Gwen Atkinson Kimberly S. Avery Bradley W. Barbour Ray Hugh Baynard, Jr. Brad Mitchell Bernstein Ilissa Bernstein Julia Elizabeth Black Brett Phillip Blattner Terrie Jean Blevins Mark Richard Bourg Jennifer Helen Boykin Elizabeth Leigh Bradburn Jeffrey Michael Brinn Carrie Leigh Rodman Brondyke Paul Christian Brown Brian Gregory Bruchs Jennifer Renee Burris William Christian Carter Glenn D. Clausing Julie Ann Clem- Toschlog Jacqueline Knotts Crotts Faith Hawkins Crump Jodi Renae Dodgen Lacy M. Drummond Michael Lee Edwards Jameson Michael Ellis Chris S. Elrod Luke J. Estola Bruce Alexander Farley Jack Edward Finley Jennifer Marie Fisher Haoyu Gan Julia Eaker Gardner Patricia Diane Gaunt Garit Anthony Gemeinhardt Susan Glendenning Alison Fromme Gomez Banisha Lena Gott Luke Anthony Governale Bradley McDonald Greer Katherine L. Griffin Elizabeth Karen Hagerty Maria Paulina Haro- Camm Jamie Elizabeth Harper Lauren G. Harrison Richard Warren Hartzell Bobby Wendell Herring, Jr. Jill Cornelius Hobbs Jacquelyn Michelle Kastner Allan Clayton Kitchen Ryan Alan Kompanik Stephen Joseph Krol James Adam Landis Barry Tyrone Leonard Melissa Jane Linn Kevin Mark Loiselle James Henry Lombardi Laurie Ann Lovelady W. Scott Luper Nancy Marc- Thrasybule Kamala M. Massey Linda Carol Maxwell Brian Joseph McMerty Michael E. Metz Sarah Lawrence Nold Scott Alexander Oliver Toshio Osaka Bethany A. Osborne Douglas Alan Paddock John Burwell Parker, Jr. Elizabeth Sosa Perez Edward Neil Renner Jeffrey Neil Rhodes Kristen Norris Rogers Misty Jenkins Saldi David Eric Sites Christopher C. Smith Mark Paul Soticheck, II Karen Spear Julie LeAnn Spivey Lauren Jocelyn Stoner Jason Jeremiah Strange Wendy Elizabeth Sutton Tara French Tatum Dale Hunter Taylor James Will Vannoy Regina Wahab Tanya T. Ward- Gupton Kerry Lee Watson Mary Martin White At its January 24, 2005, meeting, the Board approved the following applications for licensure: c. Three moral character affidavits, and d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504. 4. If Mr. Hemphill returns his suspended certificate in excess of fifteen ( 15) days of the receipt of this Order, Mr. Hemphill can, after thirty ( 30) days plus the num-ber of days that his certificate was late in being returned to the Board, and the completion of his firm’s SQR, apply to return his certificate to active status by submission and approval of a reissuance application which includes: a. Application form ( which includes statements regarding use of title during forfeiture), b. Payment of the application fee, c. Three moral character affidavits ( on forms provided by Board), d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504, and e. Consent Order requiring payment of at least $ 100.00 in administrative costs. 2005 Board Meetings March 17* April 20 May 16 June 21 July 14** August 22 September 19 October 24 November 21 December 19 Meetings of the Board are open to the public except when, under State law, some portions may be closed to the public. Unless otherwise noted, meet-ings are held at the Board office and begin at 10: 00 a. m. * 2: 00 p. m. ** Greensboro 4 Thomas R. Sawyer, # 27005 Glenville, NC 12/ 20/ 2004 THIS CAUSE coming before the Board on December 20, 2004, 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 presented, that: FINDINGS OF FACT 1. Thomas R. Sawyer ( hereinafter “ Mr. Sawyer”) is the holder of a certificate as a Certified Public Accountant 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 Carolina Administrative Code ( NCAC), including the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board. 2. Mr. Sawyer failed to timely obtain a State Quality Review ( SQR) in accordance with provisions as required by NCGS 93- 12( 8c) and 21 NCAC 8M. 0102. 3. Mr. Sawyer has subsequently failed to provide documentation to the Board that his SQR has been completed and is in excess of 120 days from the required completion date. CONCLUSIONS OF LAW 1. Mr. Sawyer’s failure to timely obtain a SQR prior to the prescribed completion date is a violation of NCGS 93- 12( 8c) and 21 NCAC 8M .0102. BASED ON THE FOREGOING, the Board orders that: 1. Mr. Sawyer’s certificate is suspended for at least thirty ( 30) days from the date this Order is approved and until the required SQR compliance information is received by the Board. 2. If Mr. Sawyer fails to return his suspended certificate within fifteen ( 15) days of the receipt of this Order, the thirty ( 30) day suspension will be extended by the number of days that his certificate is late in being returned to the Board. Disciplinary Actions Finger continued on page 5 3. If Mr. Sawyer returns his suspended certificate within fifteen ( 15) days of the receipt of this Order, Mr. Sawyer can, after at least thirty ( 30) days, and the completion of his firm’s SQR, 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 moral character affidavits, and d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504. 4. If Mr. Sawyer returns his suspended certificate in excess of fifteen ( 15) days of the receipt of this Order, Mr. Sawyer can, after thirty ( 30) days plus the number of days that his certificate was late in being returned to the Board, and the completion of his firm’s SQR, apply to return his certificate to active status by submission and approval of a reissuance application which includes: a. Application form ( which includes statements regarding use of title during forfeiture), b. Payment of the application fee, c. Three moral character affidavits ( on forms provided by Board), d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504, and e. Consent Order requiring payment of at least $ 100.00 in administrative costs. Ronald F. Finger, # 9231 Maiden, NC 12/ 20/ 2004 THIS CAUSE coming before the Board on December 20, 2004, 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 pre-sented, that: FINDINGS OF FACT 1. Ronald F. Finger ( hereinafter “ Mr. Finger”) is the holder of a certifi-cate as a Certified Public Accountant 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 Carolina Administrative Code ( NCAC), including the Rules of Professional Eth-ics and Conduct promulgated and adopted therein by the Board. 2. Mr. Finger failed to timely obtain a State Quality Review ( SQR) in accor-dance with provisions as required by NCGS 93- 12( 8c) and 21 NCAC 8M. 0102. 3. Mr. Finger has subsequently failed to provide documentation to the Board that his SQR has been completed and is in excess of 120 days from the required completion date. CONCLUSIONS OF LAW 1. Mr. Finger’s failure to timely obtain a SQR prior to the prescribed completion date is a violation of NCGS 93- 12( 8c) and 21 NCAC 8M .0102. BASED ON THE FOREGOING, the Board orders that: 1. Mr. Finger’s certificate is suspended for at least thirty ( 30) days from the date this Order is approved and until the required SQR compliance information is received by the Board. 2. If Mr. Finger fails to return his sus-pended 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. 3. If Mr. Finger returns his suspended certificate within fifteen ( 15) days of the receipt of this Order, Mr. Finger can, after at least thirty ( 30) days, and the completion of his firm’s SQR, 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 moral character affidavits, and 5 The last testing window of the first year of the computer- based Uniform CPA Examination will close at the end of February and the Exam will be in refresh mode during March. While the Exam is in refresh mode, you may apply to take the Exam and if you have received a Notice to Schedule, you may schedule an appointment with a Prometic test center. To reduce the problems you may encounter with the Exam, please review the following questions and answers: Is “ session time” the same thing as “ Exam time”? Exam time is the time designated for a candidate to complete the Exam ses-sion on the computer. Session time is the Exam time plus 30 minutes. The extra 30 minutes gives you time to complete the sign- in process and the survey without affecting the Exam time. When does the clock start on the Exam time? The Exam clock begins to count down as soon as you open the first testlet. The Exam clock continues to run even when you are on a break between testlets and simulations or when you are speaking with the test center staff. The Exam clock stops only when there is a power failure. Once the Exam has started, the Exam clock cannot be reset, adjusted, or extended by anyone. How I can make the best use of my time when taking the Exam? Most candidates have found that they need 30 – 50 minutes per simula-tion. When planning for an Exam sec-tion, allocate the time for the simula-tions and then divide the remaining time in three equal parts for the mul-tiple- choice testlets. Immediately report equipment and computer malfunctions to the test center staff. Do not attempt to correct such problems yourself— you will lose valu-able Exam time and still won’t be able to resolve the problem. Wait until you have completed the Exam to report any content problems. The test center staff is not responsible for Exam content issues, so it is a waste of your Exam time to attempt to report such problems to the test center staff. Don’t spend time writing down any content issues or Exam answers on the scratch paper provided by the test cen-ter staff. All scratch paper is collected after the Exam and shredded. Write down any content issues on the “ Con-firmation of Attendance” you receive after you exit the Exam room. Follow directions carefully. If a simu-lation requires a written response, don’t try to create a response by using the copy/ cut/ paste functions. Likewise, if a simulation requires a copy/ cut/ paste response, don’t waste time trying to cre-ate a lengthy written response. How do I prevent early Exam termina-tion? Test sessions are designed to auto-matically terminate if the allotted time ( approximately 5 – 10 minutes) for the introductory screens is exceeded. To pre-vent early Exam termination, don’t take time to make notes, do relaxation exer-cises, or make unnecessary conversa-tion with the test center staff before open-ing the first testlet. Promptly move through the sign- in and preliminary screens at the beginning of each Exam. Are my Exam answers lost if I run out of Exam time and don’t have time to click on “ done” to indicate that I have completed my last testlet or simula-tion? Candidate responses are automati-cally saved every 30 seconds, regard-less if you have signaled the completion of the final testlet or simulation. If you have a problem, question, or con-cern about the administration of the Exam, the Prometic Testing Center, your score notice, etc., please send an e- mail to Phyllis Elliott at pwelliot @ bellsouth. net. Include your name, candidate id number, daytime telephone number, and the specifics of your problem, question, or concern in your e- mail message. NOTE: The National Candidate Data-base ( NCD) operated by NASBA has a new toll- free number, 1- 866- MY-NASBA ( 1- 866- 696- 2722) for questions about the Notice to Schedule ( NTS) which cannot be answered by the Board. The toll- free number can also be used to report any Exam- related problems or concerns. Need More Information? Previous articles on Exam- related is-sues were published in the 5- 2004, 6- 2004, 9- 2004, 11- 2004, and 12- 2004 issues of the Activity Review which are available on the Board’s web site under the “ newsletter” link. Additional information about the Exam is available from the following web sites: AICPA: www. cpa- exam. org Board: www. cpaboard. state. nc. us NASBA: www. nasba. org Prometric: www. prometric. com Exam Issues, Part VI Finger continued from page 4 d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504. 4. If Mr. Finger returns his suspended certificate in excess of fifteen ( 15) days of the receipt of this Order, Mr. Finger can, after thirty ( 30) days plus the number of days that his certificate was late in being returned to the Board, and the comple-tion of his firm’s SQR, apply to return his certificate to active status by submis-sion and approval of a reissuance ap-plication which includes: a. Application form ( which includes statements regarding use of title during forfeiture), b. Payment of the application fee, c. Three moral character affidavits ( on forms provided by Board), d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504, and e. Consent Order requiring payment of at least $ 100.00 in administrative costs. 6 In December 2004, the Governmental Accounting Standards Board ( GASB) issued Statement No. 46, Net Assets Re-stricted by Enabling Legislation, an amend-ment of GASB Statement No. 34. The purpose of Statement 46 is to help governments determine when net assets have been restricted to a particu-lar use by the passage of enabling legis-lation and to specify how those net as-sets should be reported in financial state-ments when there are changes in the circumstances surrounding such legis-lation. A government’s net assets should be reported as restricted when the pur-pose for or manner in which they can be used is limited by an external party, a constitutional provision, or enabling legislation. Enabling legislation is a specific type of legislation that both authorizes the raising of new resources and im-poses legally enforceable limits on how they may be used. Statement 46 is intended to allevi-ate difficulties in identifying enabling legislation restrictions by clarifying that “ legally enforceable” means that an ex-ternal party— such as citizens, public interest groups, or the judiciary— can compel a government to use resources only for the purposes stipulated by the enabling legislation. Statement 46 confirms that the de-termination of legal enforceability is a matter of professional judgment, which may entail reviewing the legislation and determinations made for similar legis-lation, as well as obtaining the advice of legal counsel. GASB Clarifies Reporting of Net Assets The AICPA’s Auditing Standards Board ( ASB) has issued an Exposure Draft of a proposed Statement on Auditing Stan-dards ( SAS) entitled Audit Documenta-tion. If approved, the proposed Statement will supersede SAS No. 96 of the same name ( AICPA, Professional Standards, vol. 1, AU sec. 319). Copies of the Exposure Draft are available for download from the AICPA web site, www. aicpa. org. The proposed SAS establishes stan-dards and provides guidance to an au-ditor of a non- issuer on audit documen-tation for audits of financial statements or other financial information being re-ported on. Although audit documentation alone does not guarantee audit quality, the process of preparing sufficient and appropriate audit documentation con-tributes to the quality of an audit. The ASB believes this Exposure Draft will improve audit practice and is responsive to the issues that have been raised by regulators and others who use and rely on audited financial statements of non- issuers. The Standard would not apply to audits of public companies since audit-ing standards for those entities are pro-mulgated by the Public Company Ac-counting Oversight Board ( PCAOB). Among other things, the proposed SAS: • Requires the auditor to consider, when preparing audit documentation, the needs of an “ experienced auditor,” having no previous connection with the audit, to understand the procedures performed, the evidence obtained and specific conclusions reached. • Provides enhanced guidance on matters that should be documented, in-cluding guidance on documentation that should be retained. • Requires the auditor to document audit evidence that is identified as be-ing contradictory or inconsistent with the final conclusions, and how the au-ditor addressed the contradiction or in-consistency. • Requires that the auditor assemble the audit documentation to form the final audit engagement file within 60 days following the delivery of the auditor’s report to the entity. After this date, the proposed SAS requires the auditor not to delete or discard existing audit documentation, and to appropri-ately document any subsequent editions or changes. • Specifies a minimum file retention period that is ordinarily not expected to be shorter than five years from the date of the auditor’s report. In addition to the proposed SAS, the Exposure Draft includes proposed amendments to SAS No. 1, Codification of Auditing Standards and Procedures ( AICPA, Professional Standards, vol. 1, AU sec. 530.01 and .05, “ Dating of the Independent Auditor’s Report”). The proposed amendment requires that the auditor’s report not be dated earlier than the date on which the audi-tor has obtained sufficient competent audit evidence to support the opinion on the financial statements. It also proposes an amendment to SAS No. 95, Generally Accepted Auditing Standards ( AICPA, Professional Stan-dards, vol. 1, AU sec. 150.05); the amend-ment adds a requirement for the auditor to document his or her justification for a departure from the SASs in the working papers. Please e- mail your comments on the Exposure Draft to sboothe@ aicpa. org no later than May 15, 2005. ASB Issues Audit Documentation Exposure Draft The Statement indicates that gov-ernments should review the legal en-forceability of enabling legislation re-strictions when new enabling legisla-tion has been enacted to replace exist-ing legislation and when resources are used for purposes not specified by the enabling legislation. The Statement also requires gov-ernments to disclose in the notes to the financial statements the amount of net assets restricted by enabling leg-islation as of the end of the reporting period. Statement 46 is effective for peri-ods beginning after June 15, 2005. GASB Statement No. 46 ( Product Code GS46) can be ordered through the GASB order department at 1- 800- 748- 0659 or via its web site, www. gasb. org. 7 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/ 23/ 04 Thomas Roy Styers, III Irving, TX 11/ 23/ 04 Virginia Newton Long Charlotte, NC 11/ 23/ 04 Antia Dawne Troxler- Tawasha Burlington, NC 11/ 23/ 04 Peggy LeAnn Newsome Virgie, KY 11/ 23/ 04 John Patrick McGee Durham, NC 12/ 01/ 04 Kelly Ann Mitchell Asheville, NC 12/ 01/ 04 Aletta M. Lane Winston- Salem, NC 12/ 06/ 04 Charles Marion Drum, Jr. Wilkesboro, NC 12/ 06/ 04 James Alan Giles Greensboro, NC 12/ 06/ 04 Kenneth Scott Jones Clemmons, NC 12/ 08/ 04 Judith Schwarz Patzke Millis, MA 12/ 08/ 04 Margaret Cary Lutz Durham, NC 12/ 08/ 04 Deborah Fadeley Thompson Charlotte, NC 12/ 08/ 04 Christopher Scott Gribbins Stanley, NC 12/ 08/ 04 Elizabeth Haney Funderburk Palmyra, PA 12/ 09/ 04 Daniel Tate Ervin Morganton, NC 12/ 15/ 04 Samuel Keith Newman Sunset Beach, NC 12/ 15/ 04 Talton Jerry Harrison Trinity, NC 12/ 15/ 04 Kay L. Walker Durham, NC 12/ 15/ 04 Kristina Torbett Johnsen Denver, NC 12/ 15/ 04 Sherry Marie Tonner Sophia, NC 12/ 15/ 04 Karen I. Gorman Huntersville, NC 12/ 16/ 04 Martha L. Lee Burke, VA 12/ 17/ 04 Lee Merida Ritter Charlotte, NC 12/ 20/ 04 Christopher Mangin, Jr. Richmond, VA 12/ 20/ 04 Andrew David Cheplick Stuart, FL 12/ 21/ 04 Brian Scott Suarez Statesville, NC 12/ 21/ 04 Todd Richard Crouse Cary, NC 12/ 22/ 04 Douglas James Yacenda Weddington, NC 12/ 28/ 04 Nathan Taylor Garrett Durham, NC 12/ 28/ 04 Olivia O. Anderson Hayesville, NC 12/ 28/ 04 Tabitha Nicole Townsend Jacksonville, FL 12/ 28/ 04 Troy Harding Hutchins Durham, NC 12/ 29/ 04 Cheryl L. Witt Birmingham, AL 12/ 30/ 04 Ruth Ann Huffman Dumas Gulfport, MS 12/ 30/ 04 Susan Thompson Rose Charlotte, NC 12/ 30/ 04 Donna L. Kirk Orlando, FL 01/ 04/ 05 Timothy William Jackson RTP, NC 01/ 04/ 05 Charles Douglas Phillips Orlando, FL 01/ 04/ 05 Jeffrey Alan Brovet Raleigh, NC 01/ 04/ 05 Emily Riche Massey Cary, NC 01/ 04/ 05 Jamie Hill Connotillo Matthews, NC 01/ 04/ 05 Beau Alex Miller Eslanaba, MI 01/ 18/ 05 Joe Lane McKinney Asheville, NC 01/ 18/ 05 Eugene R. Marion, Jr. Palm Springs, CA 01/ 18/ 05 Brenda Mae Stenerson ( in armed forces) 01/ 18/ 05 Heyward Dubose Armstrong Rutherford, NJ 01/ 18/ 05 Sandra Gale Newton Simpsonville, SC 01/ 18/ 05 W. Keith Davis Charlotte, NC 01/ 21/ 05 Joanna Byrum Page Kernersville, NC 01/ 25/ 05 Wilfred Bailey Leverton, II Winston- Salem, NC 01/ 28/ 05 Catherine Lynn Palermo Jacksonville, NC 01/ 28/ 05 Nicole Kaylor Wicker Raleigh, NC 01/ 31/ 05 Cassandra Audrey Cunningham Charlottesville, VA Reissuance 01/ 24/ 05 Lawrence Walter Marley, # 14320 Reinstatement 12/ 20/ 04 Robert Kevin White, # 19548 01/ 24/ 05 Gerald Wayne Bass, # 6802 Tracie W. Cox, # 25561 Eric Andrew Erikson, # 22709 Lori Wingate Gorman, # 16248 Kathryn L. Kisiel, # 29091 John Merle Montague, # 17882 Donald Clyde Yount, Jr., # 15821 Retired “ Retired,” when used to refer to the status of a person, describes one pos-sessing 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)]. 01/ 24/ 05 Drexel G. Durham Rocky Mount, NC Reclassifications Pursuant to 21 NCAC 8J .0107, all North Carolina CPAs and CPA firms must notify the Board, in writing, within 30 days of any change of ad-dress or business location. For your convenience, a “ Notice of Address Change” form is printed on the back cover of the Activity Re-view and is available on the Board’s web site, www. cpaboard. state. nc. us. Address changes may be mailed, faxed, or e- mailed to the Board. Please fax your address changes to the Board at ( 919) 733- 4209. Please e- mail your address changes to cpareceptionist @ bellsouth. net. Moved? Changed Jobs? 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 or 14¢ per copy in February 2005. 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. Notice of Address Change 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 Norwood G. Clark, Jr., CPA President, Raleigh Leonard W. Jones, CPA Vice President, Morehead City Arthur M. Winstead, Jr., CPA Secretary- Treasurer, Greensboro O. Charlie Chewning, Jr., CPA Member, Raleigh Thurman L. Gause Member, Sunset Beach Jordan C. Harris, Jr. Member, Statesville Michael C. Jordan, CPA Member, Goldsboro Staff Executive Director Robert N. Brooks Deputy Director J. Michael Barham, CPA Legal Counsel Noel L. Allen, Esq. Administrative Services Felecia F. Ashe Communications Lisa R. Hearne, Manager Examinations Phyllis W. Elliott Licensing Buck Winslow, Manager Jodi S. Nelson Alice G. Steckenrider Professional Standards Ann J. Hinkle, Manager Lorraine Kelley Jo Richardson Receptionist Vanessia L. Willett
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Title | Activity review |
Date | 2005-02 |
Description | No.2, 2005 (February) |
Digital Characteristics-A | 56 KB; 8 p. |
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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- 2005 Ethics CPE: Question and Answer Have the rules regarding CPE changed? Yes. Effective January 1, 2005, 21 NCAC 8G .0410 requires that all ac-tive licensees must complete either a two- hour group study professional eth-ics and conduct course or a four- hour self- study professional ethics and con-duct course as part of the annual 40- hour CPE requirement. Does it matter which ethics course I take to fulfill the requirement in 21 NCAC 8G .0410? Yes. Only courses that have been approved by the Board and which are offered by Board- registered CPE spon-sors ( which includes NASBA CPE spon-sors) can be used to fulfill the two- hour group study professional ethics and conduct course or the four- hour self-study professional ethics and conduct course in 21 NCAC 8G .0410. Has the Board approved any ethics courses to meet the ethics CPE require-ment? Yes. As of the December 20, 2004, Board meeting, the Board had approved two courses which will satisfy the ethics CPE requirement--“ North Carolina Ac-countancy Law Course – Ethics, Prin-ciples, and Professional Responsibili-ties,” and “ Professional Ethics and Con-duct.” “ North Carolina Accountancy Law Course – Ethics, Principles, and Profes-sional Responsibilities,” is an eight- hour group study course offered by the North Carolina Association of CPAs ( NCACPA). The NCACPA’s other course, “ Pro-fessional Ethics and Conduct,” is a two-hour group study course. Information about these courses is available from the NCACPA’s web site, www. ncacpa. org. Has the Board approved any self- study ethics CPE courses which will satisfy the requirement in 21 NCAC 8G .0410? No. The Board has not yet approved a self- study ethics course that will sat-isfy the requirement in 21 NCAC 8G .0410. However, the NCACPA is de-veloping a four- hour self- study course which, if approved by the Board, will satisfy the requirement. If I take the NCACPA’s eight- hour course, “ North Carolina Accountancy Law Course – Ethics, Principles, and Professional Responsibilities,” can I use two hours of the course to meet the ethics CPE requirement for this year and then carry- forward the other six hours to meet the requirement for next year? No. Although you may carry the extra hours forward, they will not count towards the ethics CPE requirement in 21 NCAC 8G .0410. The ethics CPE requirement is an annual requirement, so you must take an ethics CPE course every year to remain in compliance with the rule. I took the NCACPA’s eight- hour ac-countancy law course as part of my application for licensure. Do I have to take another ethics CPE course? If you were licensed for the first time in 2005 and you took the NCACPA’s eight- hour accountancy law course in 2005, you may use the course to meet the requirement in 21 NCAC 8G .0410. Does the ethics CPE course count as part of the annual 40- hour CPE require-ment or is it an extra requirement? Whether you take a two- hour group study course, an eight- hour group study course, or a four- hour self- study course, the course will count as part of the an-nual 40- hour CPE requirement. If you have questions about the Board’s CPE rules, please contact Buck Winslow by tele-phone at ( 919) 733- 1421 or by e- mail at buckwins@ bellsouth. net. You may also contact Jodi Nelson by telephone at ( 919) 733- 1423 or by e- mail at jodisnelson @ bellsouth. net. Inside this issue... 2005 Board Meetings ........................ 3 Audit Documentation ....................... 6 Certificates Issued ............................. 3 Disciplinary Actions ..................... 2, 4 Exam Issues, Part VI .......................... 5 Inactive Status .................................... 7 Notice of Address Change ............... 8 Reclassifications ................................ 7 Reporting Net Assets ........................ 6 www. cpaboard. state. nc. us 2 Disciplinary Actions Lloyd Council Folks, # 7761 Kinston, NC 10/ 25/ 2004 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, the Board and Respon-dent stipulate the following Findings: 1. Respondent was the holder of North Carolina certificate number 7761 as a Certified Public Accountant. 2. In September of 2003, four ( 4) Arrest Warrants were issued alleging that Re-spondent had failed “ to pay North Caro-lina Withholding Tax withheld for his employees” for calendar years 1999, 2000, 2001, and 2002. Four ( 4) Arrest Warrants were also issued alleging that Respondent had failed “ to file a tax return” for each of the calendar years 1998, 1999, 2000, and 2001. 3. On January 22, 2004, pursuant to a plea bargain, Respondent entered guilty pleas to four ( 4) counts of failure to file North Carolina individual income tax returns for calendar years 1998, 1999, 2000, and 2001, but the four ( 4) counts of failure to pay withholding taxes were dismissed. 4. The District Court consolidated the four counts for purposes of sentencing, entered an order of conviction, and sen-tenced Respondent to forty- five ( 45) days in Wake County Jail. The sentence was suspended and Respondent was placed on unsupervised probation for twenty-four ( 24) months and ordered to perform one hundred ( 100) hours of community service in the first twelve ( 12) months of probation, pay a one thousand dollar ($ 1,000.00) criminal fine and court costs. 5. Despite at least three requests from Board staff to Respondent for informa-tion regarding Respondent’s failures to pay Employee Withholding Taxes and failures to file North Carolina tax re-turns, Respondent has failed to provide the requested information. 6. Respondent contends that the above described acts and omissions can be attributed to and were a result of serious personal health issues that contributed to extraordinary stress and physical as well as emotional hardships, which, Respondent contends, rendered Re-spondent unable to comply with dead-lines placed upon him by the Board as well as by tax authorities, but that such stress and hardships only affected his own affairs and not the interests of his clients. 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 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) b and e and 21 NCAC 8N .0201, .0202( a), .0203( b)( 1), .0204( c), .0206, .0207, and .0208( b). 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. The Certified Public Accountant cer-tificate issued to Respondent Lloyd Council Folks is hereby perma-nently revoked. David N. Hemphill, # 11778 Asheville, NC 12/ 20/ 2004 THIS CAUSE coming before the Board on December 20, 2004, 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 pre-sented, that: FINDINGS OF FACT 1. David N. Hemphill ( hereinafter “ Mr. Hemphill”) is the holder of a cer-tificate as a Certified Public Accountant in North Carolina and is therefore sub-ject to the provisions of Chapter 93 of the North Carolina General Statutes ( NCGS) and Title 21, Chapter 8 of the North Carolina Administrative Code ( NCAC), including the Rules of Professional Eth-ics and Conduct promulgated and adopted therein by the Board. 2. Mr. Hemphill failed to timely obtain a State Quality Review ( SQR) in accor-dance with provisions as required by NCGS 93- 12( 8c) and 21 NCAC 8M. 0102. 3. Mr. Hemphill has subsequently failed to provide documentation to the Board that his SQR has been completed and is in excess of 120 days from the required completion date. CONCLUSIONS OF LAW 1. Mr. Hemphill’s failure to timely ob-tain a SQR prior to the prescribed completion date is a violation of NCGS 93- 12( 8c) and 21 NCAC 8M .0102. BASED ON THE FOREGOING, the Board orders that: 1. Mr. Hemphill’s certificate is sus-pended for at least thirty ( 30) days from the date this Order is approved and until the required SQR compliance in-formation is received by the Board. 2. If Mr. Hemphill 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. 3. If Mr. Hemphill returns his suspended certificate within fifteen ( 15) days of the receipt of this Order, Mr. Hemphill can, after at least thirty ( 30) days, and the completion of his firm’s SQR, 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, 3 Certificates Issued Emily Williams Arledge Margaret Olivia Ashburn Pamela Gwen Atkinson Kimberly S. Avery Bradley W. Barbour Ray Hugh Baynard, Jr. Brad Mitchell Bernstein Ilissa Bernstein Julia Elizabeth Black Brett Phillip Blattner Terrie Jean Blevins Mark Richard Bourg Jennifer Helen Boykin Elizabeth Leigh Bradburn Jeffrey Michael Brinn Carrie Leigh Rodman Brondyke Paul Christian Brown Brian Gregory Bruchs Jennifer Renee Burris William Christian Carter Glenn D. Clausing Julie Ann Clem- Toschlog Jacqueline Knotts Crotts Faith Hawkins Crump Jodi Renae Dodgen Lacy M. Drummond Michael Lee Edwards Jameson Michael Ellis Chris S. Elrod Luke J. Estola Bruce Alexander Farley Jack Edward Finley Jennifer Marie Fisher Haoyu Gan Julia Eaker Gardner Patricia Diane Gaunt Garit Anthony Gemeinhardt Susan Glendenning Alison Fromme Gomez Banisha Lena Gott Luke Anthony Governale Bradley McDonald Greer Katherine L. Griffin Elizabeth Karen Hagerty Maria Paulina Haro- Camm Jamie Elizabeth Harper Lauren G. Harrison Richard Warren Hartzell Bobby Wendell Herring, Jr. Jill Cornelius Hobbs Jacquelyn Michelle Kastner Allan Clayton Kitchen Ryan Alan Kompanik Stephen Joseph Krol James Adam Landis Barry Tyrone Leonard Melissa Jane Linn Kevin Mark Loiselle James Henry Lombardi Laurie Ann Lovelady W. Scott Luper Nancy Marc- Thrasybule Kamala M. Massey Linda Carol Maxwell Brian Joseph McMerty Michael E. Metz Sarah Lawrence Nold Scott Alexander Oliver Toshio Osaka Bethany A. Osborne Douglas Alan Paddock John Burwell Parker, Jr. Elizabeth Sosa Perez Edward Neil Renner Jeffrey Neil Rhodes Kristen Norris Rogers Misty Jenkins Saldi David Eric Sites Christopher C. Smith Mark Paul Soticheck, II Karen Spear Julie LeAnn Spivey Lauren Jocelyn Stoner Jason Jeremiah Strange Wendy Elizabeth Sutton Tara French Tatum Dale Hunter Taylor James Will Vannoy Regina Wahab Tanya T. Ward- Gupton Kerry Lee Watson Mary Martin White At its January 24, 2005, meeting, the Board approved the following applications for licensure: c. Three moral character affidavits, and d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504. 4. If Mr. Hemphill returns his suspended certificate in excess of fifteen ( 15) days of the receipt of this Order, Mr. Hemphill can, after thirty ( 30) days plus the num-ber of days that his certificate was late in being returned to the Board, and the completion of his firm’s SQR, apply to return his certificate to active status by submission and approval of a reissuance application which includes: a. Application form ( which includes statements regarding use of title during forfeiture), b. Payment of the application fee, c. Three moral character affidavits ( on forms provided by Board), d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504, and e. Consent Order requiring payment of at least $ 100.00 in administrative costs. 2005 Board Meetings March 17* April 20 May 16 June 21 July 14** August 22 September 19 October 24 November 21 December 19 Meetings of the Board are open to the public except when, under State law, some portions may be closed to the public. Unless otherwise noted, meet-ings are held at the Board office and begin at 10: 00 a. m. * 2: 00 p. m. ** Greensboro 4 Thomas R. Sawyer, # 27005 Glenville, NC 12/ 20/ 2004 THIS CAUSE coming before the Board on December 20, 2004, 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 presented, that: FINDINGS OF FACT 1. Thomas R. Sawyer ( hereinafter “ Mr. Sawyer”) is the holder of a certificate as a Certified Public Accountant 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 Carolina Administrative Code ( NCAC), including the Rules of Professional Ethics and Conduct promulgated and adopted therein by the Board. 2. Mr. Sawyer failed to timely obtain a State Quality Review ( SQR) in accordance with provisions as required by NCGS 93- 12( 8c) and 21 NCAC 8M. 0102. 3. Mr. Sawyer has subsequently failed to provide documentation to the Board that his SQR has been completed and is in excess of 120 days from the required completion date. CONCLUSIONS OF LAW 1. Mr. Sawyer’s failure to timely obtain a SQR prior to the prescribed completion date is a violation of NCGS 93- 12( 8c) and 21 NCAC 8M .0102. BASED ON THE FOREGOING, the Board orders that: 1. Mr. Sawyer’s certificate is suspended for at least thirty ( 30) days from the date this Order is approved and until the required SQR compliance information is received by the Board. 2. If Mr. Sawyer fails to return his suspended certificate within fifteen ( 15) days of the receipt of this Order, the thirty ( 30) day suspension will be extended by the number of days that his certificate is late in being returned to the Board. Disciplinary Actions Finger continued on page 5 3. If Mr. Sawyer returns his suspended certificate within fifteen ( 15) days of the receipt of this Order, Mr. Sawyer can, after at least thirty ( 30) days, and the completion of his firm’s SQR, 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 moral character affidavits, and d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504. 4. If Mr. Sawyer returns his suspended certificate in excess of fifteen ( 15) days of the receipt of this Order, Mr. Sawyer can, after thirty ( 30) days plus the number of days that his certificate was late in being returned to the Board, and the completion of his firm’s SQR, apply to return his certificate to active status by submission and approval of a reissuance application which includes: a. Application form ( which includes statements regarding use of title during forfeiture), b. Payment of the application fee, c. Three moral character affidavits ( on forms provided by Board), d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504, and e. Consent Order requiring payment of at least $ 100.00 in administrative costs. Ronald F. Finger, # 9231 Maiden, NC 12/ 20/ 2004 THIS CAUSE coming before the Board on December 20, 2004, 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 pre-sented, that: FINDINGS OF FACT 1. Ronald F. Finger ( hereinafter “ Mr. Finger”) is the holder of a certifi-cate as a Certified Public Accountant 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 Carolina Administrative Code ( NCAC), including the Rules of Professional Eth-ics and Conduct promulgated and adopted therein by the Board. 2. Mr. Finger failed to timely obtain a State Quality Review ( SQR) in accor-dance with provisions as required by NCGS 93- 12( 8c) and 21 NCAC 8M. 0102. 3. Mr. Finger has subsequently failed to provide documentation to the Board that his SQR has been completed and is in excess of 120 days from the required completion date. CONCLUSIONS OF LAW 1. Mr. Finger’s failure to timely obtain a SQR prior to the prescribed completion date is a violation of NCGS 93- 12( 8c) and 21 NCAC 8M .0102. BASED ON THE FOREGOING, the Board orders that: 1. Mr. Finger’s certificate is suspended for at least thirty ( 30) days from the date this Order is approved and until the required SQR compliance information is received by the Board. 2. If Mr. Finger fails to return his sus-pended 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. 3. If Mr. Finger returns his suspended certificate within fifteen ( 15) days of the receipt of this Order, Mr. Finger can, after at least thirty ( 30) days, and the completion of his firm’s SQR, 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 moral character affidavits, and 5 The last testing window of the first year of the computer- based Uniform CPA Examination will close at the end of February and the Exam will be in refresh mode during March. While the Exam is in refresh mode, you may apply to take the Exam and if you have received a Notice to Schedule, you may schedule an appointment with a Prometic test center. To reduce the problems you may encounter with the Exam, please review the following questions and answers: Is “ session time” the same thing as “ Exam time”? Exam time is the time designated for a candidate to complete the Exam ses-sion on the computer. Session time is the Exam time plus 30 minutes. The extra 30 minutes gives you time to complete the sign- in process and the survey without affecting the Exam time. When does the clock start on the Exam time? The Exam clock begins to count down as soon as you open the first testlet. The Exam clock continues to run even when you are on a break between testlets and simulations or when you are speaking with the test center staff. The Exam clock stops only when there is a power failure. Once the Exam has started, the Exam clock cannot be reset, adjusted, or extended by anyone. How I can make the best use of my time when taking the Exam? Most candidates have found that they need 30 – 50 minutes per simula-tion. When planning for an Exam sec-tion, allocate the time for the simula-tions and then divide the remaining time in three equal parts for the mul-tiple- choice testlets. Immediately report equipment and computer malfunctions to the test center staff. Do not attempt to correct such problems yourself— you will lose valu-able Exam time and still won’t be able to resolve the problem. Wait until you have completed the Exam to report any content problems. The test center staff is not responsible for Exam content issues, so it is a waste of your Exam time to attempt to report such problems to the test center staff. Don’t spend time writing down any content issues or Exam answers on the scratch paper provided by the test cen-ter staff. All scratch paper is collected after the Exam and shredded. Write down any content issues on the “ Con-firmation of Attendance” you receive after you exit the Exam room. Follow directions carefully. If a simu-lation requires a written response, don’t try to create a response by using the copy/ cut/ paste functions. Likewise, if a simulation requires a copy/ cut/ paste response, don’t waste time trying to cre-ate a lengthy written response. How do I prevent early Exam termina-tion? Test sessions are designed to auto-matically terminate if the allotted time ( approximately 5 – 10 minutes) for the introductory screens is exceeded. To pre-vent early Exam termination, don’t take time to make notes, do relaxation exer-cises, or make unnecessary conversa-tion with the test center staff before open-ing the first testlet. Promptly move through the sign- in and preliminary screens at the beginning of each Exam. Are my Exam answers lost if I run out of Exam time and don’t have time to click on “ done” to indicate that I have completed my last testlet or simula-tion? Candidate responses are automati-cally saved every 30 seconds, regard-less if you have signaled the completion of the final testlet or simulation. If you have a problem, question, or con-cern about the administration of the Exam, the Prometic Testing Center, your score notice, etc., please send an e- mail to Phyllis Elliott at pwelliot @ bellsouth. net. Include your name, candidate id number, daytime telephone number, and the specifics of your problem, question, or concern in your e- mail message. NOTE: The National Candidate Data-base ( NCD) operated by NASBA has a new toll- free number, 1- 866- MY-NASBA ( 1- 866- 696- 2722) for questions about the Notice to Schedule ( NTS) which cannot be answered by the Board. The toll- free number can also be used to report any Exam- related problems or concerns. Need More Information? Previous articles on Exam- related is-sues were published in the 5- 2004, 6- 2004, 9- 2004, 11- 2004, and 12- 2004 issues of the Activity Review which are available on the Board’s web site under the “ newsletter” link. Additional information about the Exam is available from the following web sites: AICPA: www. cpa- exam. org Board: www. cpaboard. state. nc. us NASBA: www. nasba. org Prometric: www. prometric. com Exam Issues, Part VI Finger continued from page 4 d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504. 4. If Mr. Finger returns his suspended certificate in excess of fifteen ( 15) days of the receipt of this Order, Mr. Finger can, after thirty ( 30) days plus the number of days that his certificate was late in being returned to the Board, and the comple-tion of his firm’s SQR, apply to return his certificate to active status by submis-sion and approval of a reissuance ap-plication which includes: a. Application form ( which includes statements regarding use of title during forfeiture), b. Payment of the application fee, c. Three moral character affidavits ( on forms provided by Board), d. Forty hours of CPE in the 12 months preceding the application including an eight- hour accountancy law course pursuant to 21 NCAC 8F .0504, and e. Consent Order requiring payment of at least $ 100.00 in administrative costs. 6 In December 2004, the Governmental Accounting Standards Board ( GASB) issued Statement No. 46, Net Assets Re-stricted by Enabling Legislation, an amend-ment of GASB Statement No. 34. The purpose of Statement 46 is to help governments determine when net assets have been restricted to a particu-lar use by the passage of enabling legis-lation and to specify how those net as-sets should be reported in financial state-ments when there are changes in the circumstances surrounding such legis-lation. A government’s net assets should be reported as restricted when the pur-pose for or manner in which they can be used is limited by an external party, a constitutional provision, or enabling legislation. Enabling legislation is a specific type of legislation that both authorizes the raising of new resources and im-poses legally enforceable limits on how they may be used. Statement 46 is intended to allevi-ate difficulties in identifying enabling legislation restrictions by clarifying that “ legally enforceable” means that an ex-ternal party— such as citizens, public interest groups, or the judiciary— can compel a government to use resources only for the purposes stipulated by the enabling legislation. Statement 46 confirms that the de-termination of legal enforceability is a matter of professional judgment, which may entail reviewing the legislation and determinations made for similar legis-lation, as well as obtaining the advice of legal counsel. GASB Clarifies Reporting of Net Assets The AICPA’s Auditing Standards Board ( ASB) has issued an Exposure Draft of a proposed Statement on Auditing Stan-dards ( SAS) entitled Audit Documenta-tion. If approved, the proposed Statement will supersede SAS No. 96 of the same name ( AICPA, Professional Standards, vol. 1, AU sec. 319). Copies of the Exposure Draft are available for download from the AICPA web site, www. aicpa. org. The proposed SAS establishes stan-dards and provides guidance to an au-ditor of a non- issuer on audit documen-tation for audits of financial statements or other financial information being re-ported on. Although audit documentation alone does not guarantee audit quality, the process of preparing sufficient and appropriate audit documentation con-tributes to the quality of an audit. The ASB believes this Exposure Draft will improve audit practice and is responsive to the issues that have been raised by regulators and others who use and rely on audited financial statements of non- issuers. The Standard would not apply to audits of public companies since audit-ing standards for those entities are pro-mulgated by the Public Company Ac-counting Oversight Board ( PCAOB). Among other things, the proposed SAS: • Requires the auditor to consider, when preparing audit documentation, the needs of an “ experienced auditor,” having no previous connection with the audit, to understand the procedures performed, the evidence obtained and specific conclusions reached. • Provides enhanced guidance on matters that should be documented, in-cluding guidance on documentation that should be retained. • Requires the auditor to document audit evidence that is identified as be-ing contradictory or inconsistent with the final conclusions, and how the au-ditor addressed the contradiction or in-consistency. • Requires that the auditor assemble the audit documentation to form the final audit engagement file within 60 days following the delivery of the auditor’s report to the entity. After this date, the proposed SAS requires the auditor not to delete or discard existing audit documentation, and to appropri-ately document any subsequent editions or changes. • Specifies a minimum file retention period that is ordinarily not expected to be shorter than five years from the date of the auditor’s report. In addition to the proposed SAS, the Exposure Draft includes proposed amendments to SAS No. 1, Codification of Auditing Standards and Procedures ( AICPA, Professional Standards, vol. 1, AU sec. 530.01 and .05, “ Dating of the Independent Auditor’s Report”). The proposed amendment requires that the auditor’s report not be dated earlier than the date on which the audi-tor has obtained sufficient competent audit evidence to support the opinion on the financial statements. It also proposes an amendment to SAS No. 95, Generally Accepted Auditing Standards ( AICPA, Professional Stan-dards, vol. 1, AU sec. 150.05); the amend-ment adds a requirement for the auditor to document his or her justification for a departure from the SASs in the working papers. Please e- mail your comments on the Exposure Draft to sboothe@ aicpa. org no later than May 15, 2005. ASB Issues Audit Documentation Exposure Draft The Statement indicates that gov-ernments should review the legal en-forceability of enabling legislation re-strictions when new enabling legisla-tion has been enacted to replace exist-ing legislation and when resources are used for purposes not specified by the enabling legislation. The Statement also requires gov-ernments to disclose in the notes to the financial statements the amount of net assets restricted by enabling leg-islation as of the end of the reporting period. Statement 46 is effective for peri-ods beginning after June 15, 2005. GASB Statement No. 46 ( Product Code GS46) can be ordered through the GASB order department at 1- 800- 748- 0659 or via its web site, www. gasb. org. 7 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/ 23/ 04 Thomas Roy Styers, III Irving, TX 11/ 23/ 04 Virginia Newton Long Charlotte, NC 11/ 23/ 04 Antia Dawne Troxler- Tawasha Burlington, NC 11/ 23/ 04 Peggy LeAnn Newsome Virgie, KY 11/ 23/ 04 John Patrick McGee Durham, NC 12/ 01/ 04 Kelly Ann Mitchell Asheville, NC 12/ 01/ 04 Aletta M. Lane Winston- Salem, NC 12/ 06/ 04 Charles Marion Drum, Jr. Wilkesboro, NC 12/ 06/ 04 James Alan Giles Greensboro, NC 12/ 06/ 04 Kenneth Scott Jones Clemmons, NC 12/ 08/ 04 Judith Schwarz Patzke Millis, MA 12/ 08/ 04 Margaret Cary Lutz Durham, NC 12/ 08/ 04 Deborah Fadeley Thompson Charlotte, NC 12/ 08/ 04 Christopher Scott Gribbins Stanley, NC 12/ 08/ 04 Elizabeth Haney Funderburk Palmyra, PA 12/ 09/ 04 Daniel Tate Ervin Morganton, NC 12/ 15/ 04 Samuel Keith Newman Sunset Beach, NC 12/ 15/ 04 Talton Jerry Harrison Trinity, NC 12/ 15/ 04 Kay L. Walker Durham, NC 12/ 15/ 04 Kristina Torbett Johnsen Denver, NC 12/ 15/ 04 Sherry Marie Tonner Sophia, NC 12/ 15/ 04 Karen I. Gorman Huntersville, NC 12/ 16/ 04 Martha L. Lee Burke, VA 12/ 17/ 04 Lee Merida Ritter Charlotte, NC 12/ 20/ 04 Christopher Mangin, Jr. Richmond, VA 12/ 20/ 04 Andrew David Cheplick Stuart, FL 12/ 21/ 04 Brian Scott Suarez Statesville, NC 12/ 21/ 04 Todd Richard Crouse Cary, NC 12/ 22/ 04 Douglas James Yacenda Weddington, NC 12/ 28/ 04 Nathan Taylor Garrett Durham, NC 12/ 28/ 04 Olivia O. Anderson Hayesville, NC 12/ 28/ 04 Tabitha Nicole Townsend Jacksonville, FL 12/ 28/ 04 Troy Harding Hutchins Durham, NC 12/ 29/ 04 Cheryl L. Witt Birmingham, AL 12/ 30/ 04 Ruth Ann Huffman Dumas Gulfport, MS 12/ 30/ 04 Susan Thompson Rose Charlotte, NC 12/ 30/ 04 Donna L. Kirk Orlando, FL 01/ 04/ 05 Timothy William Jackson RTP, NC 01/ 04/ 05 Charles Douglas Phillips Orlando, FL 01/ 04/ 05 Jeffrey Alan Brovet Raleigh, NC 01/ 04/ 05 Emily Riche Massey Cary, NC 01/ 04/ 05 Jamie Hill Connotillo Matthews, NC 01/ 04/ 05 Beau Alex Miller Eslanaba, MI 01/ 18/ 05 Joe Lane McKinney Asheville, NC 01/ 18/ 05 Eugene R. Marion, Jr. Palm Springs, CA 01/ 18/ 05 Brenda Mae Stenerson ( in armed forces) 01/ 18/ 05 Heyward Dubose Armstrong Rutherford, NJ 01/ 18/ 05 Sandra Gale Newton Simpsonville, SC 01/ 18/ 05 W. Keith Davis Charlotte, NC 01/ 21/ 05 Joanna Byrum Page Kernersville, NC 01/ 25/ 05 Wilfred Bailey Leverton, II Winston- Salem, NC 01/ 28/ 05 Catherine Lynn Palermo Jacksonville, NC 01/ 28/ 05 Nicole Kaylor Wicker Raleigh, NC 01/ 31/ 05 Cassandra Audrey Cunningham Charlottesville, VA Reissuance 01/ 24/ 05 Lawrence Walter Marley, # 14320 Reinstatement 12/ 20/ 04 Robert Kevin White, # 19548 01/ 24/ 05 Gerald Wayne Bass, # 6802 Tracie W. Cox, # 25561 Eric Andrew Erikson, # 22709 Lori Wingate Gorman, # 16248 Kathryn L. Kisiel, # 29091 John Merle Montague, # 17882 Donald Clyde Yount, Jr., # 15821 Retired “ Retired,” when used to refer to the status of a person, describes one pos-sessing 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)]. 01/ 24/ 05 Drexel G. Durham Rocky Mount, NC Reclassifications Pursuant to 21 NCAC 8J .0107, all North Carolina CPAs and CPA firms must notify the Board, in writing, within 30 days of any change of ad-dress or business location. For your convenience, a “ Notice of Address Change” form is printed on the back cover of the Activity Re-view and is available on the Board’s web site, www. cpaboard. state. nc. us. Address changes may be mailed, faxed, or e- mailed to the Board. Please fax your address changes to the Board at ( 919) 733- 4209. Please e- mail your address changes to cpareceptionist @ bellsouth. net. Moved? Changed Jobs? 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 or 14¢ per copy in February 2005. 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. Notice of Address Change 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 Norwood G. Clark, Jr., CPA President, Raleigh Leonard W. Jones, CPA Vice President, Morehead City Arthur M. Winstead, Jr., CPA Secretary- Treasurer, Greensboro O. Charlie Chewning, Jr., CPA Member, Raleigh Thurman L. Gause Member, Sunset Beach Jordan C. Harris, Jr. Member, Statesville Michael C. Jordan, CPA Member, Goldsboro Staff Executive Director Robert N. Brooks Deputy Director J. Michael Barham, CPA Legal Counsel Noel L. Allen, Esq. Administrative Services Felecia F. Ashe Communications Lisa R. Hearne, Manager Examinations Phyllis W. Elliott Licensing Buck Winslow, Manager Jodi S. Nelson Alice G. Steckenrider Professional Standards Ann J. Hinkle, Manager Lorraine Kelley Jo Richardson Receptionist Vanessia L. Willett |
OCLC number | 20740890 |