Activity review

              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 Issue No. 10- 2002
Inside this issue...
Board Meetings ............................... 2
Certificates Issued ........................... 4
Correction: Tax ID Number ............ 3
Disciplinary Actions .................. 2, 6
IRS Circular 230 .............................. 4
IRS VITA Program........................... 5
Exam Schedule ................................ 3
Notice of Address Change ............. 8
Office Closed .................................... 3
Reclassifications ............................. 7
www. state. nc. us/ cpabd
SSARS No. 8: New Guidance for Compilation Engagements
Although the Accounting and Review
Services Committee ( ARSC) of the Ameri-can
Institute of CPAs ( AICPA) put an
end to plain- paper financial statement
engagements with the issuance of State-ment
on Standards for Accounting and
Review Services ( SSARS) No. 1, Compila-tion
and Review of Financial Statements, the
accounting profession has continued to
debate the issue.
Rapid advances in information tech-nology
and low- cost software have en-abled
even the smallest of reporting en-tities
to record its own transactions and
prepare its own financial statements.
Nevertheless, many non- public en-tities
rely on their CPAs for varied ac-counting
and business advisory services
that often include the preparation of
financial statements, even if only for
management use.
When the ARSC issued
SSARS No. 7, Omnibus Statement on Stan-dards
for Accounting and Review Services,
practitioners supposedly had complete
clarification of when a compilation re-port
needed to be attached to the finan-cial
statements. In many cases, however,
the guidance in SSARS No. 7 has not
been followed.
In October 2000, the ARSC issued
SSARS No. 8, Amendment to Statement on
Standards for Accounting and Review Ser-vices
No. 1, Compilation and Review of
Financial Statements.
SSARS No. 8 provides communica-tion
and performance requirements for
unaudited financial statements where
there is no expectation that the financial
statements will be utilized by third par-ties.
Many reporting entities that need
timely financial information for
management’s use may not need that
information in the form of financial state-ments
that comply, in all material re-spects,
either with generally accepted
accounting principles ( GAAP) or an
other comprehensive basis of account-ing
( OCBOA).
ARSC has concluded that a compi-lation
report may not be necessary for
these types of reporting entities and has
developed new compilation engagement
guidance that allows “ restricted use”
financial statements to be compiled with-out
following the reporting guidance in
the SSARSs.
Nonetheless, the performance stan-dards
in the SSARSs must still be fol-lowed.
If the financial statements are not
expected to be used by a third party, the
new guidelines in SSARS No. 8 provide
the following communication options:
• A compilation report may be
issued in accordance with the reporting
requirements of SSARS No. 1 ( essen-tially,
the status quo).
• An understanding of the en-gagement
with the client may be docu-mented
through an engagement letter,
preferably signed by management, re-garding
the services to be performed and
the limitations on the use of financial
statements.
If the engagement letter approach is
used, documentation of the understand-ing
of the engagement in the engagement
letter should include the following state-ments:
• The nature and limitations of
the services to be performed are described
in the letter.
• A compilation is limited to pre-senting,
in the form of financial state-ments,
information that is the represen-tation
of management.
• The financial statements will
not be reviewed or audited.
SSARS No. 8
continued on page 5
Disciplinary Actions
2
Bruce S. Atkins # 11796
Weaverville, NC 09/ 23/ 02
THIS CAUSE coming before the Board
on September 23, 2002, 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. Bruce S. Atkins is the holder of a
certificate as a Certified Public Accoun-tant
in North Carolina and is therefore
subject to the provisions of Chapter 93 of
the North Carolina General Statutes
( NCGS) and Title 21, Chapter 8 of the
North Carolina Administrative Code
( NCAC), including the Rules of Profes-sional
Ethics and Conduct promulgated
and adopted therein by the Board.
2. Bruce S. Atkins 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. Bruce S. Atkins 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. Bruce S. Atkins’ failure to timely
obtain an 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. Bruce S. Atkins’ 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 Bruce S. Atkins fails to return his
suspended certificate within fifteen ( 15)
days of the receipt of this Order, the
thirty ( 30) day suspension will be ex-tended
by the number of days that his
certificate is late in being returned to the
Board office.
3. If Bruce S. Atkins returns his sus-pended
certificate within fifteen ( 15)
days of the receipt of this Order, Bruce S.
Atkins 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 ( 3) moral character affidavits,
and
d. Forty ( 40) hours of CPE in the twelve
( 12) months preceding the application
including an eight ( 8) hour accountancy
law course pursuant to 21 NCAC
8F .0504.
4. If Bruce S. Atkins returns his sus-pended
certificate in excess of fifteen
( 15) days of the receipt of this Order,
Bruce S. Atkins can, after at least
thirty ( 30) days, and the completion of
his firm’s SQR, apply to return his cer-tificate
to active status by submission
and approval of a reissuance applica-tion
which includes:
a. Application form ( which includes
statements regarding use of title during
forfeiture),
b. Payment of the application fee,
c. Three ( 3) moral character affidavits
( on forms provided by Board),
d. Forty ( 40) hours of CPE in the twelve
( 12) months preceding the application
including an eight ( 8) hour accountancy
law course pursuant to 21 NCAC
8F .0504, and
e. Consent Order requiring payment of
at least $ 100.00 in administrative costs.
Christopher P. Buck # 26406
Huntersville, NC 09/ 23/ 02
THIS CAUSE coming before the Board
on September 23, 2002, at its offices at
1101 Oberlin Road, Raleigh, Wake
County, North Carolina, with a quo-rum
present, the Board finds, based on
the clear and convincing evidence pre-sented,
that:
FINDINGS OF FACT
1. Christopher P. Buck was 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. Christopher P. Buck 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. Christopher P. Buck 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.
4. On August 7, 2002, Board staff sent,
via Certified/ Return Receipt Mail,
Christopher P. Buck a Notice of Forfei-ture
and Demand for the return of his
certificate. Christopher P. Buck received
and signed for said Notice on
August 13, 2002.
5. On August 28, 2002, Board staff re-ceived
Christopher P. Buck’s forfeited
CPA certificate.
CONCLUSIONS OF LAW
1. Christopher P. Buck’s failure to timely
obtain an 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. The status of Christopher P. Buck’s
forfeited certificate is changed to sus-pended
for at least thirty ( 30) days from
the date this Order is approved and
Board Meetings
Monday, November 18
Tuesday, December 17
Meetings of the Board are open to the
public except when, under State law,
some portions of the meetings are
closed to the public. Unless other-wise
noted, meetings are held at the
Board’s office in Raleigh.
3
Lloyd C. Folks # 7761
Kinston, NC 09/ 23/ 02
THIS CAUSE coming before the Board
on September 23, 2002, 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. Lloyd C. Folks is the holder of a
certificate as a Certified Public Accoun-tant
in North Carolina and is therefore
subject to the provisions of Chapter 93 of
the North Carolina General Statutes
( NCGS) and Title 21, Chapter 8 of the
North Carolina Administrative Code
( NCAC), including the Rules of Profes-sional
Ethics and Conduct promulgated
and adopted therein by the Board.
2. Lloyd C. Folks 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. Lloyd C. Folks 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. Lloyd C. Folks’ failure to timely obtain
a SQR prior to the prescribed comple-tion
date is a violation of
NCGS 93- 12 ( 8c) and 21 NCAC 8M .0102.
BASED ON THE FOREGOING, the Board
orders that:
1. Lloyd C. Folks’ 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 Lloyd C. Folks fails to return his
suspended certificate within fifteen ( 15)
days of the receipt of this Order, the
thirty ( 30) day suspension will be ex-tended
by the number of days that his
certificate is late in being returned to the
Board office.
3. If Lloyd C. Folks returns his sus-pended
certificate within fifteen ( 15)
days of the receipt of this Order, Lloyd C.
Folks 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 ( 3) moral character affidavits,
and
d. Forty ( 40) hours of CPE in the twelve
( 12) months preceding the application
including an eight ( 8) hour accoun-tancy
law course pursuant to 21 NCAC
8F .0504.
4. If Lloyd C. Folks returns his sus-pended
certificate in excess of fifteen
( 15) days of the receipt of this Order,
Lloyd C. Folks can, after at least thirty
( 30) days, and the completion of his
firm’s SQR, apply to return his certifi-cate
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 ( 3) moral character affidavits
( on forms provided by Board),
d. Forty ( 40) hours of CPE in the twelve
( 12) months preceding the application
including an eight ( 8) hour accountancy
law course pursuant to 21 NCAC
8F .0504, and
e. Consent Order requiring payment of
at least $ 100.00 in administrative costs.
until the required SQR compliance in-formation
is received by the Board.
2. Christopher P. Buck can, after at least
thirty ( 30) days, and the completion of
his firm’s SQR, apply to return his cer-tificate
to active status by submission
and approval of a reissuance applica-tion
which includes:
a. Application form,
b. Payment of the application fee,
c. Three ( 3) moral character affidavits,
and
d. Forty ( 40) hours of CPE in the twelve
( 12) months preceding the application
including an eight ( 8) hour accountancy
law course pursuant to 21 NCAC
8F .0504.
Correction: Board’s
Tax ID Number
The August 2002 issue of the Activity
Review, contained a completed IRS
Form W- 9 for the Board.
However, two numbers were in-advertently
transposed when the
form was completed.
The correct tax ID number for the
NC State Board of CPA Examiners is:
56- 6017386.
The Board regrets any inconve-nience
this error may have caused.
Board Office Closed
The Board office will be closed Mon-day,
November 11, 2002, in obser-vance
of Veterans’ Day.
In addition, the Board office will
be closed Thursday, November 28,
2002, and Friday, November 29, 2002,
in observance of Thanksgiving.
November 2002 Uniform
CPA Exam Schedule
The November 2002 Uniform CPA
Examination will be administered
November 6- 7 at the Raleigh Con-vention
and Conference Center in
Raleigh and the Benton Convention
Center in Winston- Salem. The sched-ule
is as follows:
Business Law & Professional
Responsibilities ( LPR)
Wednesday, November 6, 2002
9: 00 a. m. - 12: 00 noon
Auditing ( AUD)
Wednesday, November 6, 2002
1: 30 p. m. - 6: 00 p. m.
Accounting & Reporting ( ARE)
Thursday, November 7, 2002
8: 30 a. m. - 12: 00 noon
Financial Accounting &
Reporting ( FARE)
Thursday, November 7, 2002
1: 30 p. m. - 6: 00 p. m.
For additional information about the
Uniform CPA Examination, please
visit the Board’s web site
( www. state. nc. us/ cpabd).
4
Elizabeth J. Aurilio
William Mullen Aycock
Christine Victoria Barcay
Cerene Oceana Beauregard
Adrian James Beasley
Daniel Joseph Berry
Peyton Randolph Black
Thomas Robert Boothby
Brian Dale Bradford
Janette Louise Brown
Jason Nicholas Brown
Kathleen Donovan Bucher
Lisa Langdon Burgess
Cynthia Debra Carter
Kellice Renee Chance
Andrew David Cheplick
Shelly Renee Coe
Richard Timothy Conner
Michael Wayne Cook
Brenda K. Currie
Kristine Lynn Cutler
Jessica Adeline Danninger
Richard Earle deButts, III
Vincent Michael DiSandro, Jr.
William Robert Dresback, Jr.
Robert Michael Fitzula, Jr.
Deborah Fleischman
Susan Carol Fox- Kirk
Amanda Kinch Green
Tammy Lynn Gregory
Taylor Elizabeth Griffin
John Frederick Hamilton
Certificates Issued
The following certificate applications were approved by the Board at its August 16, 2002, and September 23, 2002, meetings:
Brian Scott Hendrickson
Thomas Michael Herbert
W. Kelly Hill
Christina Renee Hodge
Dan Overby Holder, Jr.
William Forrest Holder
Michael G. Holmes
Amanda Elizabeth Hubbard
Angela Susan Jenkins
Jamie Lynne Jones
Jason Lee Kelley
Emmitt Clark Kernoodle
Anna Burgess Lau
Martin Alan Lee
Karen Fang Liu
Michael Alan Mankowski
Carol E. Martin
Julia Lynn Martin
John Alan Maser
Adrienne Scherer McKinney
Matthew James Molbert
John Berchmans Montoro
Timothy Randolph Morris
Preeta Nayak
Joseph Edward Oprosko, Jr.
John Boone Paden
Brian J. Petrequin
Sidney Roy Pickett, Jr.
James Lester Pierce
Lisa Dianne Pierce
Francis Xavier Pirozzi
Eric C. Pompi
Andrew David Proctor
Matthew D. Rice
Kendra Dee Rich
John Kim Richardson
Randy Wayne Richartz
Deanna Lynn Rios
Patricia Ann Sabrinsky
Lisa Hall Satterfield
Kimberly Ann Savva
Asit Sharma
Maureen Virginia Sheehy
Marion Holloway Simmons
Laura Knight Smith
Patricia Elizabeth Smith
Ajamu H. Stoner
Diane Leigh Taylor
Jacqueline S. Taylor
Samuel C. Thomas, III
Kelly Ann Thornton
Robert Marion Tilton
Etim Jeremiah Udoh
Jamen Earl Voss
Kristin Lee Votta
Alexander George Vuchnich
Eric P. Wallace
Kim M. Ward
William Kent Weaver
Lori Langley Webb
Candice Sexton Whitehurst
Clayton Anderson Whitesell
Krista Lea Woodside
James Bertram Zellmer
Sarah Zinzer
The Internal Revenue Service ( IRS) has
published final regulations regarding
amendments to Circular 230 involving
non- tax shelter related practice before
the IRS.
Circular 230 governs the right of
CPAs, attorneys, enrolled agents, and
enrolled actuaries to practice before the
IRS,
Over the next few months, the IRS is
expected to re- propose amendments to
Circular 230, involving tax shelter re-lated
practice matters.
A brief summary of some of the major
provisions of the final regulations fol-lows:
IRS Releases Amendments to Circular 230
• Section 10.20 requires ( under
certain limited conditions) that a prac-titioner
provide information to the IRS
regarding the identity of persons who
may have possession or control of re-quested
documents.
• In addition to a requirement to
notify a client about any noncompli-ance,
error, or omission on a client’s
part, Section 10.21 generally provides
that a practitioner must advise the cli-ent
of the consequences of such non-compliance,
error, or omission.
• Section 10.27 clarifies the rules
governing the prohibition on practitio-ners
receiving a contingent fee for posi-tions
taken or to be taken on an original
tax return.
• The new regulations also ad-dress
such issues as ( a) the return of a
client’s records, ( b) matters involving
practitioner advertising and solicita-tions,
( c) the disreputable conduct of a
tax practitioner, and ( d) IRS disciplin-ary
proceedings.
These final regulations ( TD 9011)
are published in the Internal Revenue
Bulletin ( IRB 2002- 33, 356) dated Au-gust
19, 2002, and are available on- line
at www. irs. gov/ bus_ info/ bullet. html.
5
• No opinion ( or any other form
of assurance) on the financial statements
will be provided.
• Management has knowledge
about the nature of the procedures ap-plied,
and the basis of the accounting
and assumptions used in the prepara-tion
of the financial statements.
• The financial statements reflect
management’s representation and it is
agreed that they are not to be used by
third parties.
• The financial statements can-not
be relied upon to disclose errors,
fraud, and illegal acts.
If applicable, the required documen-tation
should also note the following
statements:
• Material departures from
GAAP or OCBOA may exist and the
effects of those departures on the finan-cial
statements may not be disclosed.
• Substantially all disclosures
and the statement of cash flows may be
omitted.
• The CPA may lack indepen-dence
with respect to the client.
• A reference to supplementary
information is included in the financial
statement package.
In those cases where a compilation
report is not issued, CPAs must include
a reference on each page of the financial
statements indicating that they are “ Re-stricted
for Management’s Use Only.”
Other phraseology that may be utilized
in this financial statement legend could
be “ Solely for the Information of and Use
by Management of Ann Wholesale, Inc.,
and Not Intended to Be and Should Not
Be Used by Any Other Party.”
When a CPA is engaged to report on
compiled financial statements and the
statements are, or reasonably might be
expected to be, used by a third party, a
compilation report still must be attached
to the financial statements. In all cir-cumstances,
CPAs will be required to
comply with the SSARS performance
guidelines when they are compiling fi-nancial
statements.
The performance standards for
compilation engagements, whether or
not a report is issued as a result of the
engagement, are as follows:
• The CPA should possess a level
of knowledge of accounting principles
and practices used in the industry in
which the entity operates that will en-able
the compilation of financial state-ments
appropriate in form for that in-dustry.
• The CPA should possess a gen-eral
understanding of the nature of the
entity’s business transactions, the form
of its accounting records, the stated quali-fications
of its accounting personnel,
the accounting basis on which the fi-nancial
statements are to be presented
( e. g., GAAP, OCBOA), and the form and
content of the financial statements.
• The CPA should read the fi-nancial
statements and consider
whether they appear to be appropriate
in form and free from obvious material
errors.
CPAs are not required to make in-quiries
or perform other procedures to
verify, corroborate, or review informa-tion
supplied by the reporting entity. In
cases where a CPA does make inquires
that reveal unsatisfactory information,
the CPA should obtain additional and
revised information. If management re-fuses,
the CPA should withdraw from
the engagement.
Besides the communications op-tions
it makes available, SSARS No. 8
makes a fundamental change in the
definition of “ submission” of financial
statements. By modifying this defini-tion,
the ARSC believes that the majority
of SSARS applicability problems faced
by the profession will be solved. Under
SSARS No. 7, submission of financial
statements was defined as presenting to
a client ( or others) financial statements
that the CPA has 1) generated, either
manually or through computer soft-ware,
or 2) modified, by materially chang-ing
account classifications, amounts, or
disclosures directly on client- prepared
financial statements. Under SSARS No.
8, submission of financial statements is
defined as presenting to a client ( or third
parties) financial statements that the
practitioner has prepared either manu-ally
or through computer software.
Although CPAs must still use their
professional judgment in determining
whether they have prepared or pre-sented
a financial statement,
SSARS No. 8’ s modification to the sub-mission
of financial statements ad-dresses
issues associated with today’s
technological environment while main-taining
a minimum level of service.
Pursuant to 21 NCAC 8N .0302( a),
a CPA providing a SSARS No. 8 compi-lation
to a client can only do so in a
registered CPA firm. For CPA firms en-rolled
in a peer review program, a SSARS
No. 8 compilation would have to be
included in the engagements covered
by SSARS. However, for CPA firms not
enrolled in a peer review program, where
the SSARS compilation with no report is
the highest level of service provided to a
client, would not be required to enroll in
an approved practice monitoring pro-gram.
-- From the article, “ SSARS No. 8:
New Guidance for Compilation En-gagements,”
by Thomas A. Ratcliffe,
Ph. D., CPA, as published in The CPA
Journal, June 2001.
SSARS No. 8
continued from front page
The Internal Revenue Service is seek-ing
North Carolina tax professionals
to serve as instructors for the Volun-teer
Income Tax Assistance ( VITA)
program.
Instructors will train VITA vol-unteers
to prepare basic tax returns
for taxpayers with limited income,
with disabilities, the elderly, and non-
English speaking taxpayers.
If you are interested in partici-pating,
please contact John Lenik by
telephone at ( 336) 378- 2306.
Although enrolled agents can
earn Continuing Professional Edu-cation
( CPE) credits for participating
in this program, North Carolina
CPAs cannot.
Pursuant to 21 NCAC
8G .0409( d), CPAs cannot claim CPE
credit for teaching or presenting a
course unless the course is specifi-cally
designed as a CPE course for
CPAs.
IRS Seeks Volunteers for
VITA Program;
No CPE Credit for CPAs
6
Disciplinary Actions
W. Kenneth Wease # 12286
Cary, NC 09/ 23/ 02
THIS CAUSE coming before the Board
on September 23, 2002, 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. W. Kenneth Wease is the holder of a
certificate as a Certified Public Accoun-tant
in North Carolina and is therefore
subject to the provisions of Chapter 93 of
the North Carolina General Statutes
( NCGS) and Title 21, Chapter 8 of the
North Carolina Administrative Code
( NCAC), including the Rules of Profes-sional
Ethics and Conduct promulgated
and adopted therein by the Board.
2. W. Kenneth Wease 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. W. Kenneth Wease 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. W. Kenneth Wease’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. W. Kenneth Wease’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 W. Kenneth Wease fails to return his
suspended certificate within fifteen ( 15)
days of the receipt of this Order, the
thirty ( 30) day suspension will be ex-tended
by the number of days that his
certificate is late in being returned to the
Board office.
3. If W. Kenneth Wease returns his
suspended certificate within fifteen ( 15)
days of the receipt of this Order,
W. Kenneth Wease can, after at least
thirty ( 30) days, and the completion of
his firm’s SQR, apply to return his cer-tificate
to active status by submission
and approval of a reissuance applica-tion
which includes:
a. Application form,
b. Payment of the application fee,
c. Three ( 3) moral character affidavits,
and
d. Forty ( 40) hours of CPE in the twelve
( 12) months preceding the application
including an eight ( 8) hour accountancy
law course pursuant to 21 NCAC 8F
.0504.
4. If W. Kenneth Wease returns his
suspended certificate in excess of fifteen
( 15) days of the receipt of this Order, W.
Kenneth Wease can, after at least thirty
( 30) days, and the completion of his
firm’s SQR, apply to return his certifi-cate
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 ( 3) moral character affidavits
( on forms provided by Board),
d. Forty ( 40) hours of CPE in the twelve
( 12) months preceding the application
including an eight ( 8) hour accountancy
law course pursuant to 21 NCAC 8F
.0504, and
e. Consent Order requiring payment of
at least $ 100.00 in administrative costs.
Maurice S. Hamilton # 22354
Germantown, MD 08/ 16/ 02
THIS CAUSE, coming before the Board
at its offices at 1101 Oberlin Road, Ra-leigh,
Wake County, North Carolina,
with a quorum present. Pursuant to
NCGS 150B- 41 and 150B- 22, the Board
and Respondent stipulate the follow-ing
Findings:
1. Respondent is the holder of North
Carolina certificate number 22354 as a
Certified Public Accountant.
2. In June of 1999, the Board approved
a Consent Order with Respondent re-garding,
in part, Respondent’s failure
to return client records upon demand to
at least four ( 4) clients and failure to
respond in a timely manner to Board
inquiries. Under the terms of that Order,
Respondent agreed to a one- year sus-pension
that was stayed upon the con-dition
that he violate no accountancy
law or rules at any time during the pe-riod
of June 1999 through June 2000.
3. Respondent gave notice to the Board
that he was dissolving his practice and
moving out- of- state as of December 31,
1999. Respondent secured client records
in storage areas but was not readily
accessible to clients in order to return
client records upon demand.
4. In November of 2000, the Board re-ceived
a complaint that for a period of at
least fifteen ( 15) months Respondent
had again failed to return client records
upon demand.
5. Despite two subsequent letters re-questing
Respondent’s reply to the com-plaint,
Respondent did not reply to these
Board inquiries until Board staff con-tacted
Respondent by telephone.
6. In May of 2001, the complainant sent
a letter to Board staff informing the Board
that Respondent had returned all client
records and the complainant requested
that his complaint be withdrawn.
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 conduct as set out above
constitutes violations of NCGS 93- 12( 9) e
and 21 NCAC 8N .0206 and 8N .0305 ( a).
7
BASED ON THE FOREGOING and in
lieu of further proceedings under
21 NCAC Chapter 8C, the Board and
Respondent agree to the following Or-der:
1. Respondent’s certificate is suspended
for one ( 1) year; however, said suspen-sion
is stayed.
2. Respondent has voluntarily surren-dered
his North Carolina CPA certifi-cate
to the Board and agrees that he will
not request the reinstatement of his sur-rendered
certificate for at least one ( 1)
year.
3. Respondent shall send a letter by
certified/ return receipt mail to all North
Carolina clients whose records Respon-dent
still has in his possession in an
attempt to return all of those client records.
Reclassifications
Reinstatements
08/ 16/ 02
Debra Spainhour Batts # 13181
Deborah Pugh Jefferson # 17245
09/ 23/ 02
Barbara B. Carter # 13307
Brent Donald Hollingsworth # 24908
Danny B. West # 12287
Susan Elizabeth Youngblood # 24192
Reissuance
09/ 23/ 02
Calvin Lewis Blanton # 16066
Tanya Yvette Mitchell # 14136
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)].
08/ 16/ 02
Martin W. Doherty Chapel Hill, NC
09/ 23/ 02
Charles C. Cline Statesville, NC
Inactive
“ Inactive,” when used to refer to the status of a person, describes one who has
requested inactive status and been approved by the Board and who does not use
the title “ certified public accountant” 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)].
07/ 31/ 02 Harper Cole, Jr. Cary, NC
07/ 31/ 02 Robert George Willey, Jr. Charlotte, NC
07/ 31/ 02 William Sherrod Rhodes Brentwood, TN
07/ 31/ 02 Blair Tucker Hatcher Chicago, IL
07/ 31/ 02 David Edwin Allen Raleigh, NC
07/ 31/ 02 Michael Ray Cauble Asheville, NC
07/ 31/ 02 Judith Ann Melton Sanford, NC
07/ 31/ 02 Alita Dionne Balmer Cedar Park, TX
07/ 31/ 02 Melissa Smith Phillips Columbia, TN
07/ 31/ 02 Angela L. Burcham Davidson, NC
07/ 31/ 02 Eric William Gilbert Zetterholm Asheville, NC
07/ 31/ 02 Philip J. Jehle St. Charles, MO
07/ 31/ 02 Kimberly Winn Brooks Research Triangle Park, NC
08/ 01/ 02 Marilyn Michelle Chism Durham, NC
08/ 01/ 02 William Arthur Collins Greensboro, NC
08/ 01/ 02 Robert G. Riley Randolph, NJ
08/ 05/ 02 Kelly Ferrell Price Gray, TN
08/ 19/ 02 Phil Norman Carter Hickory, NC
08/ 19/ 02 Jason Bradley Wells Denver, CO
09/ 05/ 02 Robert Michael Wallace Panama City Beach, FL
09/ 09/ 02 Charles E. Saul Roswell, GA
09/ 09/ 02 Andrea Delk Warhurst Raeford, NC
09/ 19/ 02 Mark Thomas Ott, Jr. Baton Rouge, LA
09/ 23/ 02 George Kelly Moore, Jr. Charlotte, NC
09/ 23/ 02 Amy Phillips Torvinen Rutherfordton, NC
Address Changed?
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 each issue of the
Activity Review.
Licensees should mail or fax the
change( s) to Alice Steckenrider.
Changes may also be e- mailed to
alicegst@ bellsouth. net.
CPA firms should mail or fax the
change( s) to Martha Traina. Changes
may also be e- mailed to
marthatraina@ bellsouth. net.
Exam candidates should mail or
fax the change( s) to Phyllis Elliott or
Judith Macomber. Changes may also
be e- mailed to
pwelliot@ bellsouth. net or
jmacombe@ bellsouth. net.
Comments?
Do you have questions or comments
regarding items published in the
Activity Review?
If so, please e- mail your ques-tions
or comments to Lisa R. Hearne
at ( lhearne@ bellsouth. net).
Certificate No. Send Mail to Home Business
New Home Address
City State Zip
CPA Firm/ Business Name
New Bus. Address
City State Zip
Telephone: Bus. ( ) Home ( )
Bus. fax ( ) E- mail Address
Certificate Holder
Last name Jr./ III First Middle
North Carolina State Board of
Certified Public Accountant Examiners
Post Office Box 12827
Raleigh NC 27605- 2827
PRST STD
US Postage
PAID
Greensboro, NC
Permit No. 393
21,000 copies of this document were printed for this agency at a cost of $ 2,758.29 or 13¢ per copy in October 2002.
Certificate holders not notifying the Board in writing within 30 days of any change in address or business location may be subject to
disciplinary action under 21 NCAC 8J .0107.
Address Change? Let Us Know!
Signature Date
Mail to: NC State Board of Fax to: ( 919) 733- 4209
CPA Examiners
PO Box 12827
Raleigh, NC 27605- 2827
State Board of
CPA Examiners
Board Members
O. Charlie Chewning, Jr., CPA
President, Raleigh
Michael H. Wray
Vice- President, Gaston
Walter C. Davenport, CPA
Secretary- Treasurer, Raleigh
Barton W. Baldwin, CPA
Member, Mount Olive
Scott L. Cox, CPCU, CIC
Member, Charlotte
Leonard W. Jones, CPA
Member, Morehead City
R. Stanley Vaughan, CPA
Member, Charlotte
Staff
Executive Director
Robert N. Brooks
Legal Counsel
Noel L. Allen, Esq.
Administrative Services
Felecia F. Ashe
Communications
Lisa R. Hearne, Manager
Examinations
Judith E. Macomber, Manager
Phyllis W. Elliott
Licensing
Buck Winslow, Manager
Alice G. Steckenrider
Martha Traina
Professional Standards
Ann J. Hinkle, Manager
Jo Gaskill
Marie Moss
Receptionist
Karen Burton