The California Board of Accountancy Update newsletter, issue #93 dated Summer 2021, has details of disciplinary actions with effective dates in the spring and early summer of 2021.
Interesting thing I noticed this time around is the timing of some of the underlying issues. The attestation failures for which a date is mentioned involve financial statements issued in the 2016 or 2017 timeframe. For one of the more splendiferous failures the firm had audit failures on 2015 and 2016 financial statements which generated a failed peer review with the report dated in early 2018, which led to an investigation by the board with disciplinary action effective in June 2021. That was the firm’s second consecutive peer review fail. Firm earned a $2,500 penalty along with reimbursement of $5,000 investigatory costs.
Every CPA that had an attest failure drew a ban on attestation services until such time as the practitioner requests and receives permission from the board to again perform attest work.
Four of the practitioners who had their license revocation stayed also had a suspension of their license in the range of 60 to 90 days. Imagine the lifetime stain of an official revocation on your public record and then on top of that being prohibited from providing any CPA services for two or three months.
Here is my recap of disciplinary actions reported in this issue:…