Do you know someone who hasn ’ t self-reported ? Do you need to self-report ?
Again , rule 211 spells out the duty to report breaches of the CPA Code . If you know someone who has breached the CPA Code but has not self-reported to CPABC , you must report the matter — otherwise , you will be in breach of the CPA Code yourself . You should report or self-report all matters as discussed in this article to CPABC ’ s registrar at ethics @ bccpa . ca .
An example of self-reporting The following fictionalized example is loosely based on an actual situation in which a member self-reported to one of CPABC ’ s legacy bodies . Names and circumstances have been changed to preserve anonymity . Susan is a CPA . Her good friend , Bill , asked her to act as executrix for the estate of his mother , Mary . In her will , Mary left her entire estate to Bill , even though she had several other children . These other children launched a court action to challenge the will , and alleged , in court filings , that Susan had been negligent in carrying out her duties as executrix . In its decision , the court criticized Susan for inaccurate probate filings , incomplete asset calculations , and late filing of the estate tax returns — all of which had incurred unnecessary expenses for Mary ’ s estate . Local media reported the court ’ s ruling . Susan obtained legal counsel and selfreported the court ’ s criticism to CPABC . The investigation committee determined that Susan had breached rule 201 of the CPA Code ( Maintenance of the good reputation of the profession ), because it believed the court ’ s criticism and Susan ’ s actions had brought the profession into disrepute . The committee also determined that Susan had breached rules 202.1 ( Integrity and due care ) and 212.1 ( Handling of trust funds and other property ). It recommended that Susan pay a fine of $ 2,500 and the costs of the investigation , and it recommended that she accept a reprimand . The fact that Susan self-reported was a mitigating factor in the committee ’ s recommendations .
Do you need guidance ?
CPABC has professional standards advisors who are here to help . You can call them for confidential guidance to ensure that you stay compliant with the CPA Code when navigating difficult situations :
• Brigitte Ilk , CPA , CGA , can be reached at 604-629-8363 or bilk @ bccpa . ca .
• Stella Leung , CPA , CA , can be reached at 604-488-2609 or sleung @ bccpa . ca .
Both can also be reached using our toll-free number at 1-800-663-2677 . In complex cases , you may also want to consider obtaining independent legal counsel . The Chartered Professional Accountants Act , Bylaws , Bylaw Regulations , and CPA Code of Professional Conduct can be accessed online at bccpa . ca / regulatory / act , -bylaws-rules .
Comments or questions about this article ?
Contact the ethics department at ethics @ bccpa . ca .
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CPABC in Focus • Mar / Apr 2017 35