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Kansas Board of Accountancy accepts multiple discipline orders, advances CPA exam rule change
Summary
At its June 7 meeting the Kansas Board of Accountancy accepted several stipulations and summary revocations that impose fines, censures and a revocation; it also moved to pursue a regulatory amendment to allow continuous CPA exam testing and approved a pay increase and bonus for its executive director.
The Kansas Board of Accountancy on June 7 accepted multiple stipulations and summary orders that impose fines, censures and at least one certificate revocation, voted to pursue an amendment to CPA exam rules to allow continuous testing, and approved a salary increase and bonus for the agency’s executive director.
Board Chair Kathryn J. Mitchell, CPA, opened the meeting at the Landon State Office Building in Topeka. The Board approved its Consent Calendar, including minutes, reciprocity certificates, firm registrations and May 31 financial statements.
On disciplinary matters the Board accepted Stipulations and Consent Orders and summary orders affecting several firms and licensees. Terms of accepted settlements included fines and costs under K.S.A. 1-206, orders to appear before the Board, acceptance or reinstatement of firm registrations and formal censure. Notable actions included:
- Angela Marie Anderson, CPA, and AMA Tax, LLC: The Board accepted a Stipulation and Consent Order finding the firm practiced without a valid firm registration and Ms. Anderson practiced without a valid permit and engaged in conduct reflecting adversely on fitness to practice. The order directed appearances before the Board, approval of the firm’s registration and Ms. Anderson’s initial permit, censure, and fines of $1,500 to the firm and $1,500 to Ms. Anderson plus costs under K.S.A. 1-206.
- Erickson Demel & Co., PLLC: The Board accepted a Stipulation and Consent Order for failure to timely comply with Peer Review; terms included a $500 fine, costs under K.S.A. 1-206, approval of the firm’s registration and censure.
- Daniel W. Forgy, CPA, and Forgy Financial, LLC: The Board accepted a Stipulation and Consent Order finding willful use of a fictitious name without registering it with the Board and conduct reflecting adversely on fitness to practice; the order required appearance, approval of in-state firm registration, censure and a $1,000 fine plus costs under K.S.A. 1-206.
- Tate & Tryon, P.C.: The Board approved a Stipulation and Consent Order finding practice without a valid firm registration; terms included a $500 fine, costs under K.S.A. 1-206, approval of the firm’s registration and censure.
- Boyce William Soward: Following consolidated hearings on two Summary Orders of Revocation — one for failure to comply with a Board Order (Case No. 2019-42) and one for failure to timely comply with Peer Review (Case No. 2019-59) — the Board censured Mr. Soward and ordered fines of $500 and $1,000 respectively, each payable within 45 days, plus costs under K.S.A. 1-206.
- Summary orders reviewed by the Board included revocation of Jeffery Allen Thorne’s Kansas CPA certificate, permit and firm registration for failure to cooperate with a Board investigation and willful violation of professional conduct; Mr. Thorne was ordered to surrender his certificate and permit and pay a $5,000 administrative fine plus costs. The Board also reviewed an amendment to a prior order for LSCV CPAs releasing pre-issuance review requirements and a summary order revoking James M. Higgins’ CPA certificate following disciplinary action in Missouri, which included revocation, a $500 fine and costs.
Procedural and program matters included peer-review administration. The Board discussed the Kansas Society of CPAs’ decision to discontinue administering the Peer Review program for Kansas firms; representatives said Oklahoma had expressed interest in administering reviews for Kansas and KSCPA staff planned further follow-up. Separately, the Board approved Arnone & Co., P.A. to issue attest reports under the terms of an existing Consent Agreement contingent on completion of a pre-issuance review to be performed by Marshal Hull of Regier, Carr & Monroe and submission of written peer-review approval to the Board.
The Board voted to issue a protective order under K.S.A. 1-501(h) to close portions of agency records concerning the results and content of peer reviews.
On regulatory matters the Board reviewed a proposed amendment to K.A.R. 74-1-3 to permit continuous testing through the CPA Exam and authorized Executive Director Susan L. Somers and General Counsel Darin M. Conklin to take steps necessary to promulgate the regulation change.
In executive session for personnel evaluations, the Board approved a 2.5% salary increase plus a $1,500 bonus for Executive Director Susan L. Somers, in addition to a legislative pay increase earlier in 2019. The meeting was adjourned on a motion by Sean P. Weaver and seconded by John R. Helms.
Documents and statutes referenced at the meeting included K.S.A. 1-206 (costs), K.S.A. 1-501(h) (protective orders) and K.A.R. 74-1-3 (CPA exam regulation). The Board signed the minutes on June 7, 2019.
