Discussion Board

Running Head: MEMORANDUM 7

Title: Memorandum

Student’s Name:

Professor’s Name:

Date:

Memorandum

TO: Jerry Schenaus

FROM: John White

RE: Disciplinary actions/License Restrictions of Richard Blecker

DATE: 20-8-2020

Good morning Sir,

Our firm is one of the best firms in the country with a distinguished rating form our clients. We cannot, therefore, afford to ruin the good name of our firm by acting unethically. Some of the CPAs in the firm have been engaging in various activities that negatively affect our firm. Serious and speedy disciplinary actions are therefore necessary for such persons. As you requested, concerning coming up with a memo discussing some corrective measures and license restrictions of some particular Certified Public Accountants, I, at this moment, present you this memo, which carries all the requested answers. Richard Blecker has been involved in various accusations by the CBAs, leading to his CPA Certificate revocation.

Facts

Severe disciplinary actions are necessary for such CPA professionals. Richard Blecker was involved in various efforts such as lack of compliance with the CBA regulations, operating under an expired certificate, and failing to discharge his duties as required by the law ethically. This fact is one cause of discipline for this accountant. Another reason for the punishment was his lack of corporation with the CBA, primarily unethical conduct for a CPA professional.

An investigation in the matter concerning the violation of the CPA rules was conducted. The team promulgating the discipline first locked into details the conduct of the accused. This move was the first step to ascertain if the accused professional had a history of any other unethical cases. This action is a good gesture that decisions about any form of acquisitions are not made in a hurry. In-depth investigations give room for more discoveries and the right cause of the decision.

The disciplinary team also took the action of suspending the CPA license issued to the CPA profession. This action was to stop him from performing any duties related to the CPA profession. This disciplinary action was to act as a warning to other CPA professionals who might have the intention of perfuming CPA violations in the firm.

As part of disciplinary actions, the professional was barred from acting in a CPA's capacity for any client. He would remain under watch for some time before he could be allowed to work again as a CPA in the firm. He could not transact of the act on behalf of the firm or use the firm’s name to claim that he is an accountant. This move discourages any form of unethical actions among the CPAs in our firm (Duska, Duska & Kury, 2018).

CBA Actions

The California Board of Accountancy has a role in ensuring that only certified CPAs are operational. The board does this to protect the clients and consumers against illegal accountants who operate against California's established professional standards. In the case of Richard Blecker, the first case taken by the CBA was to file a lawsuit against Richard. The board was seeking to revoke the CPA license issued to Richard Blecker for failing to adhere to the rigid CPA rules and guidelines. The board revoked the license, and the action was bound to be recorded in the history of the CPA with the CBA.

The CPA was also fined an amount of $7,000, which would count for the investigation cost. This action by the CBA would ensure that the CPA covers the expenses taken by the CBA and the issuance of a reinstated license. This action also acted as a warning to other CPAs who might not be operating under the rigid CBA guidelines.

The CBA also ordered the CPA to present his pocket license is issued. The CPA was to also present his wall certificate to the board. These actions would ensure that the professional would not, in any circumstance, operate as a certified public accountant. He had nothing to prove that he was an accountant in California (Morris & Mintz, 2013).

The CBA also stated that it would treat all the future applications for a new license as a petition. This action by the CBA was also another form of ensuring that the CPA proves to the board that he can execute his duties effectually without violating any of the board guidelines. The CPA should act according to California laws and demonstrate that he would not exploit the consumers in this State.

Violations

The CPA made the following violations:

· Section 5050 of the code states that:

No person will engage in the practice of Public accountancy without a valid permit issued by CBA.

However, the CPA violated this section for his license had expired.

· Section 5060 of the code states that:

No one or any firm is authorized to operate in the public accountancy under any false or unregistered name.

The CPA was inviolate of this law by using the name of a false company.

· Section 5100 of the code states that”

The CPA was due to disciplinary actions for failing to comply with a CBA citation under the circumstances stated under the section.

However, the CPA violated the issued citation, for he failed to respond to the CBA’s letters requiring him to comply with the code of regulations. Under this section, he also was unable to comply with the CBA directives requiring knowing details of his actions, and he also never submitted a peer review reporting as required by the board (Miller, 2016).

Under this section also, the CPA committed various repeated negligent acts. The audit reports he prepared and issued did not comply with the auditor's CBA requirement and management responsibility concerning financial statements. The CPA failed to also abide by the set professional standards. Concerning code 5062 also, the CPA was unable to provide a report conforming to his professional standards. He fails to meet the expected professional standards as per the guidelines of the CBA.

Ethical reasoning

The laws that were violated by Richard are in place to ensure that they regulate the CPAs' ethical conduct. The rules act as a guideline on how one should behave and how one could avoid any unethical practice. The laws ensure that the CPA does not exploit members of the society and that such corrupt vices are cleared from society. The community becomes a better place to live with minimal cases of fraud and theft by pretense.

Opinion

I was the CPA I would ensure that I follow all the required rules by the CBA. I would deal ethically with my clients to avoid ruining my name as a CPA. I would also ensure that I set an example to the other entire CPA professional by dealing transparently and lawfully toward my clients. I would ensure that I make a change to my society by avoidi9ng actions that would lead to my prosecution and suspension as a CPA Professional.

References

Duska, R. F., Duska, B. S., & Kury, K. W. (2018). Accounting ethics. Wiley-Blackwell.

Miller, R. L. (2016). Business Law: Text & cases - Commercial law for accountants. Cengage Learning.

Morris, R., & Mintz, S. (2013). Ethical obligations and decision-making in accounting: Text and cases. McGraw-Hill Education.