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. 7- 2003

Inside this issue...

2003 Yellow Book Released ............. 6

Computing CPE Credit ..................... 4

Board Meetings .................................. 5

Declaratory Ruling ............................ 5

Derivatives Disclosures .................... 3

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

EINs Available On- Line ................... 6

Exam Application Deadlines ........... 5

Inactive Status .................................... 7

Interpretive Statement ....................... 5

Non- GAAP FAQs .............................. 3

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

Peer Review Exposure Draft ............ 6

Reclassification - Retired .................. 4

Sales Tax Holiday ............................. 3

www. cpaboard. state. nc. us

CPAs are expected to maintain high

standards of professional competence

and to that end, participation in quality

Continuing Professional Education

( CPE) programs is required.

Every CPA licensed by the Board,

except for those individuals approved

for retired or inactive status, must com-plete

a specific number of CPE hours,

calculated in accordance with the

Board’s rule on the computation of CPE

credits ( 21 NCAC 8G .0401), prior to

December 31 of each year.

Although licensees are given wide

latitude in selecting CPE programs

which are appropriate to their profes-sional

activities, the underlying prin-ciple

is that all programs should con-tribute

to a licensee’s professional com-petence.

To meet the stipulation that a course

increases the professional competence

of a CPA, the course must be taught at a

level that challenges the CPA and the

course must be in the area of accounting

in which the CPA practices, or is plan-ning

to practice.

Qualifying courses should include

information that states the course objec-tives,

the material to be covered, and the

level of knowledge that should be at-tained

by the end of the course.

Pursuant to 21 NCAC 8G .0404( a),

credit for a CPE course will not be al-lowed

by the Board unless the course is

in one of the six fields of study recog-nized

by the Board ( the same fields as set

forth in the AICPA National CPE Cur-riculum);

is actually developed by an

individual who has education and work

experience in the course subject matter;

and uses instructional techniques and

materials that are current and accurate.

Programs such as communications,

ethics, qualitative methods, statistics,

and management, which contribute to

the development and maintenance of

other professional skills, are also recog-nized

as acceptable CPE programs.

CPE credit may also be granted for

teaching a CPE course or authoring a

publication as long as the preparation to

teach or write increases the CPA’s pro-fessional

competency and is in one of the

six fields of study approved by the Board.

Investment advice, financial plan-ning,

asset management, business valu-ation,

real estate, retirement plans, in-surance,

and information technology are

areas that are included in the fields of

study recognized by the Board.

For a CPA to receive CPE credit for a

professional designation, license, or cer-tificate

preparation course ( such as reg-istered

investment advisor, insurance

agent, real estate broker), the course must

meet the CPE requirements set forth in

21 NCAC 8G.

Although the Board does not ap-prove

specific CPE courses, it does regis-ter

sponsors of CPE courses. Registered

sponsors are those that have signed an

agreement with the Board stipulating

they will conduct programs in accor-dance

with the Board’s rules.

Sponsors of CPE programs that are

listed in good standing on the National

Registry of CPE Sponsors maintained by

the National Association of State Boards

of Accountancy ( NASBA) are also con-sidered

approved sponsors although

they are not required to sign an agree-ment

with the Board.

In addition to courses provided by

registered sponsors, courses taken at

regionally accredited colleges and uni-versities;

formal correspondence courses;

formal education programs conducted

within an association of accounting

firms; technical sessions at meetings of

national and state accounting organiza-tions;

and professional development

programs of national and state account-ing

organizations may qualify as ac-ceptable

continuing education.

The Facts About CPE Compliance

CPE Compliance

continued on Page 4

Disciplinary Actions

2

E. Gerard Overman # 13242

Charlotte, NC 06/ 23/ 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 is the holder of

North Carolina certificate number 13242

as a Certified Public Accountant.

2. During the period 1999 through 2001,

Respondent failed to pay employee fed-eral

withholdings and/ or penalties and

interest for six ( 6) quarterly tax periods

totaling $ 23,500.58.

3. 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 conduct as set out above

constitute violations of NCGS 93- 12( 9) e

and 21 NCAC 8N .0201, .0202( a),

.0203( b)( 1), .0204( c), and .0207.

BASED ON THE FOREGOING and in

lieu of further proceedings under

21 NCAC Chapter 8C, the Board and

Respondent agree to the following Or-der:

1. Respondent is censured.

2. Respondent’s certificate is suspended

for one ( 1) year; however, said suspen-sion

is stayed.

3. As a condition of the stay of his

suspension, Respondent shall be on

probation, shall comply with the terms

of this Order, and shall violate no ac-countancy

statutes or rules for one ( 1)

year from the date this Order is ap-proved

by the Board.

4. Within one hundred eighty ( 180)

days of the date this Order is approved

by the Board, Respondent must com-plete

and provide verification of his

completion of the Ethics Principles and

Professional Responsibilities course as

offered by the North Carolina Associa-tion

of Certified Public Accountants.

Said course may not be used to meet

Respondent’s forty ( 40) hour reinstate-ment

requirement.

5. If Respondent fails to timely comply

with any of the requirements as speci-fied

in Paragraphs 3 and 4, Respondent’s

certificate shall be automatically sus-pended

until such time as said require-ments

have been satisfied.

6. Respondent agrees to cooperate at all

times with the Board in the supervision

and investigation of compliance with

this settlement agreement and agrees to

make all files, records, and other docu-ments

available immediately upon the

demand of the Board.

Sammy E. Estridge, III # 22291

Fuquay- Varina, NC 06/ 23/ 03

THIS CAUSE coming before the Board

on June 23, 2003, 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. Sammy E. Estridge, III, is the holder of

a certificate as a Certified Public Ac-countant

in North Carolina and is there-fore

subject to the provisions of

Chapter 93 of the North Carolina Gen-eral

Statutes ( NCGS) and Title 21, Chap-ter

8 of the North Carolina Administra-tive

Code ( NCAC), including the Rules

of Professional Ethics and Conduct pro-mulgated

and adopted therein by the

Board.

2. Sammy E. Estridge, III, failed to timely

file the annual firm registration in ac-cordance

with provisions as required

by NCGS 93- 12( 7b) and 21 NCAC

8J .0108( b).

3. In April of 2003 in excess of 60 days

but not more than 120 days from the

annual firm registration date, Sammy E.

Estridge, III, informed the Board that his

firm would not be renewing its firm

registration for 2003.

CONCLUSIONS OF LAW

1. Sammy E. Estridge, III’s, failure to

timely file the annual firm registration

or inform the Board as to the status of his

firm’s registration prior to the prescribed

filing date is a violation of

NCGS 93- 12( 7b) and 21 NCAC

8J .0108( b).

BASED ON THE FOREGOING, the Board

orders that:

1. Sammy E. Estridge, III’s, certificate

shall be placed on conditional status for

one year from the date this Order is

approved.

James D. Petersen, Jr. # 26550

Brevard, NC 06/ 23/ 03

THIS CAUSE coming before the Board

on June 23, 2003, 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. James D. Petersen, Jr., is the holder of

a certificate as a Certified Public Ac-countant

in North Carolina and is there-fore

subject to the provisions of Chapter

93 of the North Carolina General Stat-utes

( NCGS) and Title 21, Chapter 8 of

the North Carolina Administrative

Code ( NCAC), including the Rules of

Professional Ethics and Conduct pro-mulgated

and adopted therein by the

Board.

2. James D. Petersen, Jr., failed to timely

file the annual firm registration in ac-cordance

with provisions as required

by NCGS 93- 12( 7b) and 21 NCAC

8J .0108( b).

3

3. James D. Petersen, Jr., subsequently

filed his annual firm registration with

the Board on April 30, 2003, in excess of

60 days but not more than 120 days from

the annual firm registration.

CONCLUSIONS OF LAW

1. James D. Petersen, Jr.’ s, failure to

timely file the annual firm registration

prior to the prescribed filing date is a

violation of NCGS 93- 12( 7b) and

21 NCAC 8J .0108( b).

BASED ON THE FOREGOING, the Board

orders that:

1. James D. Petersen, Jr., shall pay a one

hundred dollar ($ 100.00) civil penalty.

2. James D. Petersen, Jr.’ s, certificate

shall be placed on conditional status for

one year from the date this Order is

approved.

In an effort to improve disclosures asso-ciated

with derivative contracts, the

Governmental Accounting Standards

Board ( GASB) has issued critical ac-counting

guidance that will provide

more comprehensive reporting by state

and local governments.

Under the new guidance, users of

financial statements will be better in-formed

about the risks assumed in de-rivative

contracts.

Derivatives are often used by gov-ernments

as a means to potentially re-duce

borrowing costs. While derivatives

may support financing needs, the lower

costs come with additional risks.

The objectives and terms of deriva-tive

contracts, their risks and the fair

value of the contracts are generally not

specified in financial reports today.

The GASB’s Technical Bulletin,

Disclosure Requirements for Derivatives

Not Reported at Fair Value on the Statement

of Net Assets, is designed to increase the

public’s understanding of the signifi-cance

of derivatives to a government’s

financial position and would provide

key information about their potential

effects on future cash flows.

Randal J. Finden, GASB Project

Manager, stated, “ Our research indi-cates

that it often has been difficult to

understand how governments have

been accounting for derivatives.“

“ The new disclosures are designed

to remove the mystery that surrounds

these transactions. We will be able to see

what a government has done, why it

was done, the fair value of the deriva-tive,

and the risks they have assumed.”

Said Finden, ” Governments will be

required to disclose in their financial

statements information about risks that

relate to credit, interest rates, basis, ter-mination

dates, rollovers, and market

access.”

The Technical Bulletin, which was

released June 25, 2003, will be effective

for periods ending after June 15, 2003.

The Bulletin may be obtained

through the GASB Order Department at

800- 748- 0659 or by placing an order at

the GASB’s web site, www. gasb. org.

For a limited time, the Bulletin will

be posted on the Board’s web site,

www. cpaboard. state. nc. us, under the

heading, “ Guidelines for Licensees and

CPA Firms.”

GASB Improves Derivative

Disclosure Requirements

Sales Tax Holiday

North Carolina will observe a “ sales

tax holiday” August 1- 3, 2003.

Clothing, footwear, and school

supplies of $ 100 or less per item;

sports and recreation equipment of

$ 50 or less per item; and computers,

printers, printer supplies, and edu-cational

software of $ 3,500 or less

per item will be exempt.

Clothing accessories, jewelry,

cosmetics, protective equipment,

wallets, furniture, layaway transac-tions,

items used in a trade or busi-ness,

and rentals are not covered by

the exemption and will be subject to

the applicable tax.

Computers, printers, printer

supplies, and educational software

sold during the holiday period with

a sales price of $ 1,000 or more per

item must be documented by means

of Form E- 599H, North Carolina Sales

Tax Holiday Exemption Certificate, or

other evidence to establish the ex-emption.

The vendor must maintain

the documentation.

Additional information about

the sales tax holiday is available from

the NC Department of Revenue web

site, www. dor. state. nc. us/ taxes/

sales/ salestax_ holiday. html.

The Securities and Exchange

Commission’s Division of Corporation

Finance has released responses to 33

frequently asked questions regarding

the use of non- GAAP financial mea-sures.

On Jan. 22, 2003, the SEC adopted

new regulations ( Release No. 33- 1876)

which set out conditions under which

non- GAAP financial measures could

be used by public companies.

The staff’s responses, intended to

assist market participants in the under-standing

of and compliance with the

new regulations, cover transition issues,

business combination transactions, Item

10( e) of Regulation S- K, EBIT and

EBITDA, segment information, Item 12

of Form 8- K, foreign private issuers, and

“ voluntary filers.”

The FAQ page can be found at

www. sec. gov/ divisions/ corpfin/ faqs/

nongaapfaq. htm.

SEC Posts FAQs on Non- GAAP Financial Measures

Comments

If you have questions or comments

regarding the Activity Review, please

contact the Board’s Executive Direc-tor,

Robert N. Brooks, by telephone at

( 919) 733- 4222 or via e- mail at

rnbrooks@ bellsouth. net.

www. cpaboard. state. nc. us

4

Pursuant to 21 NCAC 8G .0401( f),

licensees bear the responsibility of main-taining

records that substantiate the

CPE credits claimed for the current year

and for each of the four calendar years

prior to the current year.

Because the Board no longer asks

for proof of attendance or completion of

the CPE courses claimed on the certifi-cate

renewal form, the Board cannot

provide licensees with information

about the courses they attended or pre-viously

claimed for credit.

For audit purposes, the CPA must

obtain a sponsor- issued certificate of

completion which includes the CPA’s

name, course name, course date ( or date

of completion for self- study courses),

sponsor’s name and address, and the

CPE hours for attendance or amount of

recommended credit for a self- study

course.

In regard to professional designa-tion,

license, or certificate preparation

courses, the receipt of the professional

designation, license or certificate, does

not qualify as a certificate of course

completion.

To receive CPE credit for such a

course, the CPA must obtain a certifi-cate

of completion from the course spon-sor

and the sponsor must recommend

credit in accordance with 21 NCAC

8G .0409.

The examination provided by the

sponsor of the course material, not the

license or certificate examination, must

be completed by the CPA to qualify for

CPE credit.

In regard to all courses, indepen-dently

reading a book or other materials

to study for an exam does not meet the

requirements for a course for CPE credit.

It is the Board’s position that such an

activity is not a structured learning ac-tivity.

If a course is presented in a group

study format, the CPA may claim one

hour of credit for each 50 minutes in

attendance for instruction and any ex-amination.

Licensees taking self- study courses

to meet the requirement should note

that a self- study course is not deemed

complete until the CPE sponsor issues a

certificate of completion.

The Board accepts the date on the

certificate of completion, not the date the

licensee completed the course or the

date the completed course was mailed

to or received by the sponsor.

Computer- based interactive self-study

courses that offer hour- for- hour

credit will be accepted to fulfill the CPE

requirements. However, all other self-study

courses are counted as one hour

of credit for every two hours of study.

In addition, licensees cannot claim

CPE credit for reading accounting jour-nals,

periodicals, reference guides, or

related materials and taking a test de-signed

to assess reading comprehen-sion.

For additional information regard-ing

CPE, please contact Martha Traina

by phone at ( 919) 733- 1423 or by e- mail

at mtraina@ bellsouth. net.

You are attending an eight- hour Con-tinuing

Professional Education ( CPE)

seminar and during the afternoon

break, you call your office to check

your messages.

You learn that your son has been

injured at school and you need to go to

the hospital immediately.

You leave the seminar, which

means you will have attended the class

for six hours, not the full eight hours.

What, if anything, should you or

the sponsor do regarding your CPE

credit for the seminar?

Pursuant 21 NCAC 8G .0403( d)( 9),

the CPE sponsor is required to accu-rately

assign the number of CPE cred-its

for each CPA participating in a

course.

CPE sponsors must adjust certifi-cates

of completion not only for CPAs

who enter a session late or leave early,

but also for programs that do not meet

the time requirements advertised.

However, it is the responsibility of

the CPA to claim credit only for the

actual time he or she attends a CPE

course.

To calculate the proper amount of

CPE credit you can claim for non-college

seminars, use this easy for-mula:

Determine how many minutes of

instruction time you were actually in

class, then divide that number by 50.

Round that number down to the near-est

whole number. The result is your

CPE credit hours.

A CPA who inaccurately reports

CPE credit on his or her certificate

renewal is in violation of 21 NCAC

8N .0202 and may be subject to disci-plinary

action by the Board.

Although a CPE sponsor must

monitor course attendance and ad-just

certificates of completion accord-ingly,

the final responsibility for re-porting

the correct CPE credit rests

with you— the CPA.

If you have questions about com-puting

CPE credits, please contact

Martha Traina by telephone at ( 919)

733- 1423 or by e- mail at

mtraina@ bellsouth. net.

Computing and Claiming the Correct

Number of CPE Credits

CPE Compliance continued from front Reclassification

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)].

06/ 23/ 03

David F. Allemong

Winchester, VA

Robert Love Carter

Linden, NC

Lonnie Parker

Fayetteville, NC

Mark Avett Swaringen

Winston- Salem, NC

5

RE: 21 NCAC 8N .0305( f), “ Retention

of Client Records”

BACKGROUND INFORMATION

Petitioner is an individual practitioner.

An engagement letter exists involving

three parties: Petitioner, an Attorney

( hereinafter “ Attorney”), and Attorney’s

client ( hereinafter “ Principal”).

The “ client relationship” is defined

in the engagement letter as the relation-ship

that exists between Petitioner and

Attorney.

The engagement letter states that

Petitioner is to provide consulting ser-vices

to Attorney, that all documents are

to be provided by Attorney to Petitioner,

and that all documents provided to Pe-titioner

will be copies, not originals.

In accordance with the terms of the

engagement letter, Petitioner is to pro-duce

a report that will be provided to

Attorney.

Declaratory Ruling

Declaratory Rulings set no precedents and are limited to the facts of the request and may be relied upon only by the requesting party.

The only function of Principal, pur-suant

to the engagement letter, is to pay

for Petitioner’s services.

QUESTION

Is Petitioner required to provide to Prin-cipal,

upon request by Principal, a copy

of Petitioner’s report as presented to the

Attorney and the copied documents as

supplied by the Attorney to Petitioner?

CONCLUSION

No. Under the applicable accountancy

rules, the client relationship exists be-tween

Petitioner and Attorney.

The better practice from the per-spective

of accountancy laws and rules

would be for the CPA to be paid by the

client ( in this instance, the attorney).

Petitioner is not required to furnish

to Principal copies of the documents

provided by Attorney or a copy of the

report prepared by Petitioner for Attor-ney.

However, in response to a request

by Attorney, Petitioner shall furnish

Attorney with copies of the documents

provided by Attorney and a copy of the

report prepared by Petitioner for Attor-ney

if Attorney asserts that such

records have been lost or are other-wise

no longer in Attorney’s posses-sion.

Petitioner shall furnish the records

within a reasonable time and for a rea-sonable

fee.

Date of Request: 03/ 08/ 03

Date of Board Approval: 06/ 23/ 03

If you have questions regarding this

Declaratory Ruling, please contact the

Board’s Executive Director, Robert N.

Brooks, by telephone at ( 919) 733- 4222 or

by e- mail at rnbrooks@ bellsouth. net.

RE: 21 NCAC 8N .0305( f), “ Retention

of Client Records”

ISSUE

This non- binding interpretive statement

is issued by the North Carolina State

Board of CPA Examiners pursuant to

NCGS 150B- 2( 8a)( c) to address the is-sue

of whether a CPA is required to

furnish a client with copies of the client’s

records already in the client’s posses-sion.

INTERPRETATION

Pursuant to 21 NCAC 8N .0305( f), a

CPA is not required to furnish a client

with copies of the client’s records al-ready

in the client’s possession.

However, if the client asserts that

such records have been lost, or are oth-erwise

no longer in the client’s posses-sion,

the CPA shall furnish copies of the

records for a fee.

Records considered to be misplaced

by the client are to be considered lost for

the purpose of this rule.

QUESTION

If the client records being requested were

copies of original documents or copies

of copies of original documents, would

this change the interpretation?

CONCLUSION

No. The CPA should treat both type

of records as client records.

QUESTION

If a client indicates that client records

provided are done so without any right

of return, is the CPA still required to

return the client records upon request?

CONCLUSION

Yes. The CPA must follow the rule

regardless of the client’s intent as to the

records.

If you have questions regarding this non-binding

interpretive statement, please con-tact

Robert N. Brooks, the Board’s Executive

Director, by telephone at ( 919) 733- 4222 or

via e- mail at rnbrooks@ bellsouth. net.

Non- Binding Interpretive Statement

Please note the following application

deadlines for the November 2003

Uniform CPA Examination:

Initial exam applications

July 31, 2003

Re- exam applications

September 2, 2003

Your complete application must

be postmarked or received in the

Board office before the appropriate

deadline.

To obtain an exam application

by mail, please call the Board’s toll-free

application line, 1- 800- 211- 7930.

Applications may be printed

from the Board’s web site,

www. cpaboard. state. nc. us.

Exam Application Deadlines

Board Meetings

Monday, August 25

Monday, September 22

Monday, October 20

Monday, November 24

Friday, December 19

6

AICPA Issues Peer

Review Exposure Draft

The AICPA Peer Review Board has is-sued

an exposure draft which proposes

several revisions to the AICPA Stan-dards

for Performing and Reporting on

Peer Reviews.

The revised Standards will be effec-tive

for peer reviews commencing on or

after January 1, 2005. Early implemen-tation

will not be allowed.

The Exposure Draft includes revi-sions

to the objectives of system reviews,

transparency of reporting, type of peer

review required and the timing of en-gagement

selection.

The Exposure Draft consists of three

sections: the first section is a summary

of the proposed revisions; the second

section is an explanation of the pro-posed

revisions; and the third section is

the Standards and Interpretations reflect-ing

the proposed revisions.

A copy of the Exposure Draft and

the current Standards ( effective for peer

reviews commencing on or after Janu-ary

1, 2001) are available on the AICPA

Peer Review web site, www. aicpa. org/

members/ div/ practmon/ index. htm.

Written comments or suggestions

on any aspect of the Exposure Draft will

be appreciated. Comments or sugges-tions

should refer to the specific

paragraph( s) of the Exposure Draft and

include supporting reasons for each

comment or suggestion.

Responses should be sent to D. Dean

Beddow, Senior Technical Manager,

AICPA Peer Review Program, AICPA,

Harborside Financial Center,

201 Plaza Three, Jersey City, NJ, 07311-

3811, in time to be received by August 8,

2003. Electronic submissions of com-ments

or suggestions in Microsoft Word

should be sent to dbeddow@ aicpa. org

in time to be received by August 8, 2003.

Written comments on the exposure

draft will become part of the public

record of the AICPA Peer Review Pro-gram

and will be available for public

inspection at the offices of the AICPA

after September 30, 2003 for one year.

The U. S. General Accounting office

( GAO) has released a new edition of

Government Auditing Standards, com-monly

referred to as the Yellow Book.

This is the fourth revision of the overall

standards since the Standards were first

issued in 1972.

This revision of the Standards su-persedes

the 1994 revision-- including

amendments 1 through 3-- and makes

changes to these standards in the fol-lowing

3 areas:

• redefining the types of audits and

services covered by the standards, in-cluding

an expansion of the definition

of performance auditing to incorporate

prospective analyses and other studies

and adding attestation as a separate

type of audit;

• providing consistency in the field

work and reporting requirements among

all types of audits defined under the

standards; and

The Internal Revenue Service ( IRS) now

lets businesses obtain identification

numbers directly from the small busi-ness/

self- employed section of its web

site, www. irs. gov/ businesses/ small/

index. html.

After the taxpayer completes an ap-plication

form on- line, the system is-sues

an employer identification num-ber

( EIN) that may be used immediately.

This on- line process eliminates the

need to send paperwork to the IRS, as

well as the delay in issuing a number

that may result from an incomplete ap-plication

form.

Once a business has its EIN, it can

file tax returns and may enroll in the

Electronic Federal Tax Payment System

to handle its payments most efficiently.

Businesses do not need to pre- regis-ter

before requesting an EIN.

The number issued is the perma-nent

EIN for the business, unless the IRS

finds that it has already issued an EIN

for that business or if the principal

officer’s name and social security num-ber

do not match Social Security records.

IRS Web Site Offers Identification Numbers for Businesses

In such cases, the IRS will void the

number issued through the web site and

notify the business.

An accountant or tax preparer may

use the web site to request EINs on be-half

of clients.

The taxpayer must sign a copy of

the Form SS- 4 and a statement authoriz-ing

the representative to receive the

number on- line. The representative must

keep both documents on file.

The web site describes the elements

required for an authorization statement,

which a preparer may print out for the

client to sign.

The on- line application process is

not available to some EIN requestors,

including federal, state, or local govern-ment

agencies, Indian tribal govern-ments,

real estate mortgage investment

conduits, and taxpayers with foreign

addresses ( including Puerto Rico).

Businesses may still obtain EINs by

telephone at 1- 800- 829- 4933 from

7: 30 a. m. to 5: 30 p. m. ( local time), or by

mailing or faxing Form SS- 4, as pro-vided

in the form’s instructions.

• strengthening the standards and

clarifying the language in areas that, by

themselves, do not warrant a separate

amendment to the standards.

New standards are applicable for

financial audits and attestation engage-ments

of periods ending on or after Janu-ary

1, 2004, and for performance audits

beginning on or after January 1, 2004.

Early application is permissible and is

encouraged.

The GAO will continue to monitor

the actions of the AICPA and the Public

Company Accounting Oversight Board

( PCAOB) and will issue clarifying guid-ance

as appropriate.

Government Auditing Standards is

available on the GAO web site,

www. gao. gov/ govaud/ ybk01. htm;

printed copies can be obtained from the

US Government Printing Office. A list of

major changes from the 1994 edition is

also posted on the GAO web site.

GAO Releases New Edition of Yellow Book

7

06/ 02/ 03

Daniel Arthur Binford Waxhaw, NC

Gregory Scott Kirkland Clearwater, FL

06/ 03/ 03

Jerry Hendrix Wells Charlotte, NC

06/ 04/ 03

Hattie Angel Kernersville, NC

James Lee Powers Brevard, NC

Jerry Louis Strickland Independence, VA

Shirley Ann McCall Charlotte, NC

06/ 05/ 03

Kyle Sprinkle Macemore Raleigh, NC

06/ 09/ 03

Mary Guthery Wallace Charlotte, NC

Pamela Heissenbuttel Wilmington, DE

Archie Calhoun Cooper Pigsah Forest, NC

Dorothy Nobles Watkins Wilmington, NC

Judith K. Tolbert Fort Mill, SC

06/ 10/ 03

Stephen P. Mack Matthews, NC

James Arthur King, II Apex, NC

Diana Hadley Foster Greensboro, NC

Phillip Bradley Roberts Sherrills Ford, NC

Larry R. Schwartz Fair Lawn, NJ

Mark Stephen Helms Dallas, GA

06/ 11/ 03

Sandra Condino Amherst, NY

06/ 12/ 03

David Harlow Harman Blowing Rock, NC

Ronald E. Odom Emerald Isle, NC

Teri Lane Alexander Raymore, MO

06/ 13/ 03

Andrea Cilone Leary Charlotte, NC

W. Bryon Burbage Charleston, SC

06/ 16/ 03

Calvin M. Morris, Jr. Greenville, SC

Gary Edward Lewis Winston- Salem, NC

Michael Joseph Condino Amherst, NY

06/ 17/ 03

Agnes Johnson Price Burlington, NC

Dianne Evans Hawkins Stanley, NC

Gary Peter Levine Chapel Hill, NC

Kristen Seifried Stein Atlanta, GA

06/ 18/ 03

Claudia Miller McClean McLean, VA

Tammi Michelle Houston Hickory, NC

Rachel Danner Keller Deep Gap, NC

06/ 19/ 03

Roger Inman Sturtevant Raleigh, NC

H. Bryan Ives, III Charlotte, NC

Holly Rodgers Lopez Charlotte, NC

James David Hiza Charlotte, NC

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)].

06/ 20/ 03

William Martin Richardson Winston- Salem, NC

David Franklin Vaughan Ashland, VA

06/ 23/ 03

Mark Eugene Amato Atlanta, GA

Terry Lynn Schappert Charlotte, NC

Chelsea A. Vines Atlanta, GA

Kellie Cooper Doyle Charlotte, NC

Mark Bowman Russell Wheat Ridge, CO

06/ 24/ 03

Steven Frank Johnson Greenville, NC

Ronnie Elgin Howard Holly Springs, NC

Philip Allan Drummond Charlotte, NC

Sarah Mayer Dundon Milwaukee, WI

Allison Witeck Price St. Petersburg, FL

Georgette Mary Pappas Charlotte, NC

06/ 26/ 03

Allen Lambert Pensacola, FL

Maxie Allen Curlee, Jr. Charlotte, NC

Brenda Dobbins Cornelius, NC

Susan Elizabeth Clayton Marion, SC

Joanne Emmert Wake Forest, NC

Ellen Bakul Modi Cary, NC

Steven Paul Woods Durham, NC

Lisa Worley Beddia Boca Raton, FL

Lara A. Carpenter Winston- Salem, NC

James Cleveland Bruff Lexington, SC

Kimberley Laine King Moneta, VA

Anne F. Torti Vestavia, AL

Stacy Bauer Steere Rancho Palos Verdes, CA

Tony Allan McKinney Bakersville, NC

06/ 27/ 03

Delmiro A. Ghia Perrysburg, OH

Tommy Lee Pope Raleigh, NC

Christopher McRae Crouch Waynesville, NC

Kevin G. Canty Evanston, IL

06/ 30/ 03

Marion Butler Chase, Jr. Cary, NC

William Beasley Eldridge Winston- Salem, NC

Walter Forrest Matthews, III Louisville, KY

Jimmy Wayne Shoffner Greensboro, NC

Melford Ray Baker Raleigh, NC

Charles Dickerson King Apex, NC

Louise Forman Bradford Katy, TX

James Angel Johnson Asheville, NC

John Bryan Tutwiler Charlotte, NC

Jeffrey Leonard Byrd Greensboro, NC

Susan Jean Brown Lake Wylie, SC

Carolyn Mercer Shields Winston- Salem, NC

David G. Pirrung Raleigh, NC

David Peter Gallagher Brick, NJ

Eric Andrew Erikson Vancouver, WA

Donna S. Dudley Charlotte, NC

David Michael Perkins Charlotte, NC

Darren Alan Goode Alexandria, VA

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 July 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

Lorraine Kelley

Receptionist

Elizabeth Floyd