Hamrick, Crystal of Forest City, NC

Under the automatic disciplinary provisions of the Institute’s bylaws, Ms. Hamrick’s AICPA membership was suspended for two years, effective October 27, 2016. Ms. Hamrick was also directed to complete the remedial actions listed below. This action is based on the disciplinary action taken by the North Carolina State Board of Certified Public Accountant Examiners. Details regarding the Board’s Order can be found on the state board’s website.

Remedial Actions:

1.   To comply immediately with professional standards applicable to the professional services she performs and to submit evidence of such compliance.

2.   To complete the 9-hour continuing professional education (CPE) course, Upcoming Peer Review: Is Your Firm Ready? within six-months of the date of this letter and provide evidence of such completion (e.g., attendance sheets, course completion certificates, etc.).

3.   To submit, six-months after completion of the CPE, a list of the highest level (audit, review, compilation with note disclosures) of engagements that she performed in the six-month period following the date she completed the CPE course. The following information should be included regarding the engagements listed: total hours spent on each engagement; her role and hours on each engagement; level of professional services rendered; type of report issued; type of organization; and whether it was an initial engagement.

The Subcommittee will select one of these engagements for review. She will be informed of this selection and will be asked to submit information to include a copy of her report, the financial statements, and working papers related to that engagement for review by the Subcommittee. The Subcommittee may extend the period to select an engagement to ensure a suitable selection is available. A peer review undergone by her firm would not exempt her from this requirement.

After an initial review of such report, financial statements, and working papers, the Subcommittee may decide to have her substantially complied with professional standards and close this matter. Or, the Subcommittee may decide that an ethics investigation of the engagement she submitted is warranted. If, at the conclusion of the investigation, the Subcommittee finds that professional standards have in fact been violated, the Subcommittee may refer the matter to the AICPA Joint Trial Board for a hearing or take such other action as it deems appropriate.

4.   Within 60-days of the date of this letter, she must provide copies of her firm’s most recent peer review documents to the Subcommittee, including the report, acceptance letter, corrective action, if any, and any matters for further consideration and findings for further consideration.     

If her firm has not had a peer review in the current three-year cycle, explain how the firm has complied with its state board requirements and the bylaws of the AICPA and the state CPA society’s peer review requirements.