Adjudicative Tribunal Decisions – Spring 2024

Regulatory Standard Edition: May 2024 | Published: April 23, 2024

The adjudicative committees of CPA Ontario are an independent tribunal that hears and decides disciplinary and regulatory matters referred to it by CPA Ontario and appeals from those matters. The most recent discipline decisions, settlement agreements, good character decisions, and appeal decisions can be found below.

Discipline Committee

Name: Carlo Viola, CPA, CA (1997, Woodbridge)

Rule:

Rule 206.1 – Compliance with professional standards

Conduct:

The Member, while engaged to perform an audit of “MCC” from February 8, 2021 to February 27, 2021, review engagement of “PEI”, from May 30, 2021 to June 24, 2021, and an audit engagement of “PFI”, failed to perform his professional services in accordance with generally accepted standards of practice of the profession.

Finding:

On November 28, 2023, the Member was found to have committed professional misconduct by breaching Rule 206.1 of the CPA Ontario Code of Professional Conduct.

Sanction:

  • Reprimand
  • $25,000 fine
  • Practice restriction permanently prohibiting the Member from accepting engagements of reporting issuers
  • Order to enter into a Supervision Agreement with a qualified independent Supervisor approved by the Vice President of Standards Enforcement for a period of 18 months
  • Reinvestigation of the Member’s practice following the 18-month supervisory period
  • Notice to all members of CPA Ontario, all provincial bodies, and the public
  • Newspaper publication

Costs: $32,000

File: Discipline File

Name: Gary A. Rozon, CPA, CMA (2014, Nepean)

Rules:

Rule 101 – Compliance with governing legislation, bylaws, regulations, and the CPA Code

Rule 203 – Professional competence

Rule 206.1 – Compliance with professional standards

Rule 218 – Retention of documentation and working papers

Rule 409 – Practice of public accounting in corporate form

Conduct:

The Member engaged in the practice of public accounting or provided accounting services to the public without registering a firm with CPA Ontario, practiced public accounting through an improperly registered corporation, failed to sustain professional competence while conducting Elections Canada audits, did not consistently retain files related to Elections Canada audits for at least five years from the date of the auditor’s report, and failed to perform his professional services in accordance with generally accepted standards of practice of the profession while engaged to perform two audits.

Finding:

On November 6, 2023, the Member was found to have committed professional misconduct by breaching Rules 101, 203, 206.1, 218 and 409 of the CPA Ontario Code of Professional Conduct.

Sanction:

  • Reprimand
  • $20,000 fine
  • Practice restriction prohibiting the Member from undertaking and performing any assurance work as lead engagement partner, specifically any federal (Elections Canada) or provincial elections audits
  • Notice to all members of CPA Ontario, all provincial bodies, Elections Canada and the public
  • Newspaper publication

Costs: $44,137

File:Discipline File

Name: Joseph E. Wattie (1984, Nepean)

[revoked CPA, CA]

Rules:

Rule 201.1 – Maintenance of the good reputation of the profession

Rule 206.1 – Compliance with professional standards

Conduct:

The Member, a partner, from May 1, 2018 to December 31, 2021, while engaged to perform 52 audits and three review engagements on behalf of 21 clients, failed to conduct himself in a manner which will maintain the good reputation of the profession and serve the public interest; and from May 1, 2018, to February 1, 2022, failed to perform his professional services in accordance with generally accepted standards of practice of the profession.

Finding:

On November 14, 2023, the Member was found to have committed professional misconduct by breaching Rules 201.1 and 206.1 of the CPA Ontario Code of Professional Conduct.

Sanction:

  • Reprimand
  • $50,000 fine
  • Revocation
  • Notice to all members of CPA Ontario, all provincial bodies, and the public
  • Newspaper publication

Costs: $30,000

File: Discipline File

Name: Sunny S. Khosla (2012, Ottawa)

[revoked CPA, CA]

Rules:

Rule 201.1 – Maintenance of the good reputation of the profession

Rule 205 – False or misleading documents and oral representations

Conduct:

The Member, from January 1, 2018 to August 13, 2020, while Chief Financial Officer, failed to act in a manner which will maintain the good reputation of the profession and serve the public interest and associated himself with statements which he knew or should have known were false or misleading.

Finding:

On November 20, 2023, the Member was found to have committed professional misconduct by breaching Rules 201.1 and 205 of the CPA Ontario Code of Professional Conduct.

Sanction:

  • Reprimand
  • $40,000 fine
  • Revocation
  • Notice to all members of CPA Ontario, all provincial bodies, and the public
  • Newspaper publication

Costs: $17,000

File: Discipline File

Name: Hedra L. Saparno (2014, Stittsville)

[revoked CPA, CMA]

Rule(s):

Rule 101.1(b) – Compliance with governing legislation, bylaws, regulations and the CPA Code

Rule 201.1 – Maintenance of the good reputation of the profession

Rule 206.1 - Compliance with professional standards

Conduct:

The Member, a senior manager, prepared and issued financial statements in 52 audits and three reviews on behalf of 21 clients without a valid Public Accounting Licence. While engaged to perform assurance services on the Finalized Statements, the Member failed to conduct himself in a manner which will maintain the good reputation of the profession and serve the public interest and failed to perform his professional services in accordance with generally accepted standards of practice of the profession.

Finding:

On November 24, 2023, the Member was found to have committed professional misconduct by breaching Rules 101.1(b), 201.1 and 206.1 of the CPA Ontario Code of Professional Conduct.

Sanction:

  • Reprimand
  • $30,000 fine
  • Revocation
  • Notice to all members of CPA Ontario, all provincial bodies, and the public
  • Newspaper publication

Costs: $30,000

File: Discipline File

Name: Kha Dinh Dang, CPA, CA (2005, Mississauga)

[Settlement Agreement]

Conduct:

The Member failed to perform his professional services in accordance with the generally accepted standards of practice of the profession while engaged to perform reviews and audits of financial statements of multiple clients.

Terms:

On December 11, 2023, the following settlement terms were approved:

  • $7,500 fine
  • Surrender of Public Accounting Licence
  • Practice Restriction
  • Notice to all members of CPA Ontario, Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Newspaper publication
  • Costs of $16,000

File: Settlement File

Name: Joe Yalkezian (2014, Cobourg)

[Suspended CPA, CGA]

[Settlement Agreement]

Conduct:

The Member failed to act in a manner which will maintain the good reputation of the profession and serve the public interest; the Member also failed to promptly notify CPA Ontario that he was subject to a disciplinary process and had entered into a settlement agreement with another professional regulatory body, contrary to the CPA Ontario Code of Professional Conduct.

Terms:

On January 10, 2024, the following settlement terms were approved:

  • Written Reprimand
  • $15,000 fine
  • Suspension of membership for 12 months
  • Notice to all members of CPA Ontario, Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Newspaper publicity
  • Costs of $10,000

File: Settlement File

Name: Scott D. Bates (2014, Newmarket)

[revoked CPA, CA]

Rule:

Rule 104.2 – Requirement to co-operate

Conduct:

The Member, between July 1, 2023 and August 31, 2023, failed to cooperate with the regulatory process of CPA Ontario in that they failed to promptly reply in writing to communications from the Standards Enforcement department of CPA Ontario to which a written reply was specifically required.

Finding:

On January 25, 2024, the Member was found to have committed professional misconduct by breaching Rule 104.2 of the CPA Ontario Code of Professional Conduct.

Sanction:

  • $5,000 fine
  • The Member was ordered to cooperate with the regulatory process of CPA Ontario by February 25, 2024
  • Notice to all members of CPA Ontario, all provincial bodies, and the public

Costs: $4,100

File: Discipline File

Scott D. Bates’ membership was revoked on April 9, 2024 for failing to comply with the Order of the Discipline Committee.

Name: David A. Young, CPA, CA (1985, Waterloo)

Rule:

Rule 104.2 – Requirement to co-operate

Conduct:

The Member, between June 12, 2023 and September 13, 2023, failed to cooperate with the regulatory process of CPA Ontario in that they failed to promptly reply in writing to communications from the Standards Enforcement department of CPA Ontario to which a written reply was specifically required.

Finding:

On January 24, 2024, the Member was found to have committed professional misconduct by breaching Rule 104.2 of the CPA Ontario Code of Professional Conduct.

Sanction:

  • $5,000 fine
  • The Member was ordered to cooperate with the regulatory process of CPA Ontario by February 24, 2024
  • Notice to all members of CPA Ontario, all provincial bodies, and the public

Costs: $4,000

File: Discipline File

Name: Michael Paul Cooper, CPA, CA (1994, Toronto)

Rule:

Sections 24 to 37 of Regulation 6-2.

Conduct:

The Applicant brought a motion for the reconsideration of a Decision and Order of the Discipline Committee dated February 19, 2015 revoking his membership.

Finding:

On January 11, 2024, a hearing panel of the Discipline Committee ordered that Michael Paul Cooper be readmitted to membership.

Sanction: N/A

Costs: N/A

File: Reconsideration File

Name: William L. Hilson (1999, Toronto)

[suspended CPA, CA]

Rule:

Rule 201.1 – Maintenance of the good reputation of the profession

Conduct:

While acting as the Chief Commercial Officer of a company, the Member failed to maintain the good reputation of the profession and its ability to serve the public interest by failing to take appropriate steps to address the recognition of revenue in the interim financial statements for the third quarter in 2019.

Finding:

On January 18, 2024, the Member was found to have committed professional misconduct by breaching Rule 201.1 of the CPA Ontario Code of Professional Conduct.

Sanction:

  • Reprimand
  • $25,000 fine
  • Suspension of membership for 6 months
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public

Costs: $5,000

File: Discipline File

Name: Gary J. Westfall, CPA, CA (1971, Brampton)

Conduct:

The Member failed to perform their professional services in accordance with the generally accepted standards of practice of profession contrary to Rule 206.1 of the CPA Ontario Code of Professional Conduct.

Terms:

On February 23, 2024 the following settlement terms were approved:

  • $10,000 fine
  • Surrender of Public Accounting License
  • Practice Restriction
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Newspaper Publicity
  • Costs of $16,000

File: Settlement File

Name: Michael G. Holloway, CPA, CA (1988, Brampton)

Conduct:

The Member failed to perform their professional services in accordance with the generally accepted standards of practice of profession contrary to Rule 206.1 of the CPA Ontario Code of Professional Conduct.

Terms:

On February 23, 2024, the following settlement terms were approved:

  • $10,000 fine
  • Surrender of Public Accounting License
  • Practice Restriction
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Newspaper Publicity
  • Costs of $15,000
File: Settlement File

Name: Nancy Ewing, CPA, CA (1997, Oakville)

Conduct:

The Member failed to perform their professional services in accordance with the generally accepted standards of practice of profession and to conduct themself in a manner that will maintain the good reputation of the profession and serve the public interest, contrary to Rules 201.1 and 206.1 of the CPA Ontario Code of Professional Conduct.

Terms:

On March 15, 2024, the following settlement terms were approved:

  • $20,000 fine
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Costs of $20,000

File: Settlement File

Name: Steven Lawrenson, CPA, CA (1994, Kitchener)

Conduct:

The Member failed to perform their professional services in accordance with the generally accepted standards of practice of profession and to conduct themself in a manner that will maintain the good reputation of the profession and serve the public interest, contrary to Rules 201.1 and 206.1 of the CPA Ontario Code of Professional Conduct.

Terms:

On March 15, 2024, the following settlement terms were approved:

  • $20,000 fine
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Costs of $20,000
File: Settlement File

Name: Stacy Levac, CPA, CA (2005, Ottawa)

Conduct:

The Member failed to perform their professional services in accordance with the generally accepted standards of practice of profession and to conduct themself in a manner that will maintain the good reputation of the profession and serve the public interest, contrary to Rules 201.1 and 206.1 of the CPA Ontario Code of Professional Conduct.

Terms:

On March 15, 2024, the following settlement terms were approved:

  • $20,000 fine
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Costs of $20,000

File: Settlement File

Name: Ratan Ralliaram, CPA, CA (1999, Mississauga)

Conduct:

The Member failed to perform their professional services in accordance with the generally accepted standards of practice of profession and to conduct themself in a manner that will maintain the good reputation of the profession and serve the public interest, contrary to Rules 201.1 and 206.1 of the CPA Ontario Code of Professional Conduct.

Terms:

On March 15, 2024, the following settlement terms were approved:

  • $20,000 fine
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Costs of $20,000

File: Settlement File

Name: Mervyn Ramos, CPA, CA (1995, Oakville)

Conduct:

The Member failed to perform their professional services in accordance with the generally accepted standards of practice of profession and to conduct themself in a manner that will maintain the good reputation of the profession and serve the public interest, contrary to Rules 201.1 and 206.1 of the CPA Ontario Code of Professional Conduct.

Terms:

  • $20,000 fine
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Costs of $20,000

File: Settlement File

Name: Frederick L.T. Watkin, CPA, CA (2005, Brampton)

Conduct:

The Member failed to perform their professional services in accordance with the generally accepted standards of practice of profession contrary to Rule 206.1 the CPA Ontario Code of Professional Conduct.

Terms:

On March 27, 2024, the following settlement terms were approved:

  • $7,500 fine
  • Surrender of Public Accounting License
  • Practice Restriction
  • Notice to all members of CPA Ontario, the Public Accounting Standards Committee, all provincial CPA bodies, and the public
  • Newspaper Publicity
  • Costs of $23,000
File: Settlement File

Admission and Registration Committee

Good Character Matters

If the Registrar is not satisfied that an applicant for registration as a student or admission to membership is currently of good character, the matter may be referred to the Admission and Registration Committee for a decision. The Public Accounting Licensing Board may also refer a person seeking a licence for a good character hearing.

Name: S., Z.

Reason for referral:

Convictions under sections 253(1)(b) and 259 of the Criminal Code (driving while under the influence of alcohol and operating a vehicle while disqualified)

Outcome:

On February 2, 2024, the Panel found that the Applicant had demonstrated that they were of good character and directed the Registrar to register the Applicant as a student with CPA Ontario.

File: Good Character File