Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Pollard was admonished, effective April 11, 2017, and directed to complete remedial actions (listed below) in connection with the disciplinary action taken by the North Carolina State Board of Certified Public Accountant Examiners. Specifically, the Board censured Mr. Pollard and directed that he pay a civil monetary penalty for violating 21 NCAC 08N .0403 and .0409 0202(a) by failing to perform audit engagements in accordance with all applicable standards.
- To comply immediately with professional standards applicable to the professional services that he performs and to submit evidence of such compliance.
- To provide an attestation immediately, then every six months for a period of three years that he’s no longer performing audit engagements. If Mr. Pollard returns to performing such work, he is directed:
To complete the 13 hour continuing professional education (CPE) course, Audits of State and Local Governments: What You Need to Know, prior to commencing such work and provide evidence of such completion (e.g., attendance sheets, course completion certificates, etc.)
To comply with directive 1 above, submit six months after completion of the CPE course above, a list of the highest level (audits, reviews, and compilations with note disclosures) of engagements that he performed in the period between the date of completion of the CPE course and the end of the six month period following completion of the CPE course. The following information must be included regarding the engagements listed: total hours spent on each engagement, his role and total hours on each engagement, level of professional services rendered, type of report issued, type of organization, and whether it was an initial engagement. The Technical Standards Subcommittee of the Professional Ethics Division (Subcommittee) will select one of the engagements for review. Mr. Pollard will be informed of this selection and will be asked to submit information to include a copy of his report, the financial statements, and working papers related to that engagement for review. The Subcommittee may extend the period to select an engagement to ensure a suitable selection is available. A peer review undergone by Mr. Pollard’s firm would not exempt him from this requirement.
Mr. Pollard must inform the Subcommittee of any changes in the composition of his practice, changes in his role or if he has not performed any audits, reviews, or compilations with note disclosures until a suitable work product is selected for review. If his practice changes and he’s no longer involved with audits, reviews, or compilations with note disclosures, no longer acts in a supervisory capacity on such engagements or he has not performed such engagements during the above specified period, he must inform the Subcommittee of this change, and the Subcommittee may require that he attest every six months for three years as to the nature of his practice. If, during the three year attestation period, Mr. Pollard returns to performing such engagements, he must inform the Subcommittee of this change, and the Subcommittee will select a suitable work product for review.
After an initial review of such report, financial statements, and working papers, the Subcommittee may decide Mr. Pollard has substantially complied with professional standards and close this matter. Or, the Subcommittee may decide that an ethics investigation of the engagement he 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.