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North Carolina State Board of CertifiedPublic Accountant 104 POPOBoxBox1282712827 Raleigh,Raleigh,NCNC2760527605 919-733-4222919-733-4222 nccpaboard.govnccpaboard.gov No.No.02-20159-2017Protecting Your IRS e-Services Account and EFIN from CybercriminalsThe con artists also know how tofile fraudulent powers of attorneydocuments to access clients’ accounts.The following information was originally published by the Internal Revenue Service (IRS) as “Don’t Takethe Bait, Step 7: Protect e-ServicesAccounts, EFINs” as part of the “Protect Yourself, Protect Your Clients”awareness campaign.In late August, the IRS, state taxagencies, and the tax industry reminded tax professionals that theyare responsible for protecting accessto their IRS e-Services account andsafeguarding their Electronic FilingIdentification Number (EFIN) fromthieves.National and international criminalsyndicates routinely attempt to stealtax professionals’ user names andpasswords so they may access IRSe-Services to obtain the EFIN, whichallows a criminal to steal clients’ sensitive information.Cybercriminalsroutinelyusespear phishing emails to impersonate IRS e-Services, trying to trickpractitioners into disclosing theiruser name and password. Once thethieves have these credentials, theyaccess e-Services accounts andsteal EFINs to file fraudulent tax returns.Cybercriminals also are savvyenough to know to steal CentralizedAuthorization File (CAF) numbers,which are unique, nine-digit ID numbers assigned to those who represent others before the IRS.Administrative Fees 230.00 75.00Initial Exam ApplicationRe-Exam ApplicationsSection FeesAuditing (AUD) 208.40Financial Accounting& Reporting (FAR)Secure Access requires not only auser name and password but also asecurity code that is sent to a mobilephone previously registered with theIRS.The IRS is moving toward multi-factor protections for e-Services as well,and hopes to have this system in thenear future.In addition, the IRS is workingwith Security Summit partners in thestates and the private-sector tax industry to help protect taxpayers andtheir tax filings against these threats.Maintain EFINsExam Fees Effective October 21, 2017Effective October 21, 2017, theUniform CPA Exam fees chargedby Prometric, NASBA, and theAICPA will increase. The Board’sadministrative fees are not increasing.Applications postmarked on orbefore October 20, 2017, will beprocessed using the current feeschedule. Applications postmarkedon or after October 21, 2017, willbe processed using the fee schedule shown here.Password thefts are one reason theIRS has moved to Secure Access, atwo-factor authentication process, tooffer more protection for online tools.Once the EFIN application processis complete and an EFIN has beenissued, it is important to keep accounts up-to-date. This includes:IRS e-Servicescontinued on page 6In This Issue 208.40Disciplinary Actions. 2Regulation (REG) 208.40Board Meetings. 3Business Environment& Concepts (BEC) 208.40By the Numbers: CPAs in NC 4Certificates Issued. 7Reclassifications. 7North Carolina State Board of Certified Public Accountant Examiners1

Disciplinary ActionsPursuant to NCGS 93-12(9), civil penalties are remitted to the North Carolina Civil Penalty and Forfeiture Fund (“Fund”)in accordance with NCGS 115C-457.2. NCGS 115C-457.1(b) states, “The Fund shall be administered by the Office ofState Budget and Management. The Fund and all interest accruing to the Fund shall be faithfully used exclusively formaintaining free public schools.”JAMMIE L. EUBANKS, #26925 JAMMIE L. EUBANKS, CPA, P.A. MONROE, NCto review and approval by the Board and is not effective until approved by the Board at a duly constitutedBoard Meeting.THIS CAUSE, coming before the North Carolina StateBoard of CPA Examiners (“Board”) at its offices at1101 Oberlin Road, Raleigh, Wake County, North Carolina, with a quorum present. Pursuant to N.C. Gen. Stat.§150B-41, the Board and Respondent stipulate to thefollowing:BASED UPON THE FOREGOING, the Board makesthe following Conclusions of Law:1. The Respondent Firm is subject to the provisions ofChapter 93 of the North Carolina General Statutesand Title 21, Chapter 08 of the North Carolina Administrative Code, including the Rules of ProfessionalEthics and Conduct promulgated and adopted therein by the Board.1. Jammie L. Eubanks, CPA (hereinafter “Respondent”), is the holder of North Carolina certificatenumber 26925 as a Certified Public Accountant.2. Jammie L. Eubanks, CPA, P.A. (hereinafter “Respondent Firm”), is a registered certified public accounting corporation in North Carolina.2. The Respondent Firm’s failure to perform attest andassurance services in accordance with standardsconstitutes a violation of the Statements on AuditingStandards in violation of 21 NCAC 08N .0403 and.0212.3. The Respondent Firm received a “fail” on its mostrecent system peer review, for the year endedSeptember 30, 2014. In addition, the RespondentFirm failed its 2009 peer review, and received a“pass with deficiencies” on its 2012 peer review.3. Per N.C. Gen. Stat. §93-12(9), 93-10(b) and also byvirtue of the Respondent Firm’s consent to this order,the Respondent Firm is subject to the discipline setforth below.4. The Respondent Firm was terminated from the peerreview program per the AICPA’s determination thatthe Respondent Firm was non-cooperative due tothree (3) consecutive peer reviews without a “pass.”BASED ON THE FOREGOING and in lieu of furtherproceedings, the Board and Respondent Firm agree tothe following Order:5. The Respondent Firm self-disclosed to the Board, onits 2017 firm registration, that the Firm had been terminated from the peer review program.1. The Respondent Firm is censured.6. Per 21 NCAC 08N .0212, and .0403, the RespondentFirm was required to perform audit services in accordance with generally accepted auditing standards.2. The Respondent shall obtain four (4) hours of SSARSCPE as part of his 40-hour annual CPE requirementfor the next three (3) years.7. The peer review report revealed that the system ofquality control for the Respondent Firm, in effectfor the year ended September 30, 2014, was notsuitably designed and complied with to provide theRespondent Firm with reasonable assurance of reporting and performing in conformity with applicableprofessional standards in all material aspects.3. The Respondent and the Respondent Firm shall provide a written statement to the Board that they willno longer be participating in, performing, or reviewing any engagements subject to peer review. In thefuture, if the Respondent or the Respondent Firmshould choose to engage in those activities, the Respondent must first obtain a pre-issuance review ofthat engagement and provide the pre-issuance review report to the Board. Pre-issuance review shallcontinue until the Board determines that it is not necessary. The pre-issuance review shall be conductedby a mutually agreed-upon reviewer.8. The Respondent Firm wishes to resolve this matterby consent and agrees that the Board staff and counsel may discuss this Consent Order with the Boardex parte, whether or not the Board accepts this Consent Order as written. The Respondent Firm understands and agrees that this Consent Order is subjectApproved by the Board August 21, 2017North Carolina State Board of Certified Public Accountant Examiners2

STEVE WESLEY SHELTON, #34836 WESLEY SHELTON, PLLC CHARLOTTE, NCBASED UPON THE FOREGOING, the Board makesthe following Conclusions of Law:THIS CAUSE, coming before the North Carolina StateBoard of CPA Examiners (“Board”) at its offices at 1101Oberlin Road, Raleigh, Wake County, North Carolina,with a quorum present. Pursuant to N.C. Gen. Stat.§150B-41, the Board and the Respondent stipulate tothe following:1. The Respondents are subject to the provisions ofChapter 93 of the North Carolina General Statutesand Title 21, Chapter 08 of the North Carolina Administrative Code, including the Rules of ProfessionalEthics and Conduct promulgated and adopted therein by the Board.1. Steve Wesley Shelton, CPA (hereinafter “Respondent”), is the holder of North Carolina certificatenumber 34836 as a Certified Public Accountant.2. The Respondent should have known that by performing an audit, his Firm was required to participate ina peer review program. The subsequent failure toparticipate in a peer review program constitutes aviolation of 21 NCAC 08N .0213.2. Wesley Shelton, PLLC (hereinafter “Firm”), is a registered certified public accounting firm in North Carolina.3. At all relevant times, the Respondent was the supervising CPA of the Firm and, as such, was the CPAresponsible for ensuring that the Board’s peer reviewrequirements were satisfied.3. Per N.C. Gen. Stat. §93-12(9) and also by virtue ofthe Respondent’s consent to this order, the Respondents are subject to the discipline set forth below.BASED ON THE FOREGOING and in lieu of furtherproceedings, the Board and the Respondents agree tothe following Order:4. Per 21 NCAC 08M .0105(a):A CPA or CPA firm providing any of the following services to the public shall participate in a peer reviewprogram:(1) audits;(2) reviews of financial statements;(3) compilations of financial statements; or(4) any engagement to be performed in accordancewith the Statements on Standards for AttestationEngagements.1. The Respondent is censured.2. The Respondent shall pay a five hundred dollar( 500) administrative cost to be remitted with thissigned Consent Order.3. Prior to the Respondent or the Firm participating in,performing, or reviewing any future engagementssubject to peer review, the engagement shall besubject to a pre-issuance review. The pre -issuancereview(s) shall be performed by a pre-issuance reviewer submitted by the Respondent and approvedby the Board. The pre-issuance reviewer shall submit a report directly to the Board until such time thatthe Board determines that reviews are no longernecessary. If the Respondent is employed by another firm, and he does not participate in engagementsthat are subject to peer review, then that firm will notbe subject to the pre- issuance review requirementsset forth herein.Approved by the Board August 21, 20175. The Respondent disclosed on the Firm’s annual firmrenewal that the Firm had performed one audit in2011. The Respondent subsequently informed theBoard that the engagement involved the audit of aclient’s balance sheet.6. By performing an audit, the Firm was required to undergo a peer review.7. The Respondent has not engaged in any other engagements subject to peer review and has indicatedto the Board that he does not presently desire to engage in those services.8. The Respondents wish to resolve this matter byconsent and agree that the Board staff and counsel may discuss this Consent Order with the Boardex parte, whether or not the Board accepts this Consent Order as written. The Respondents understandand agree that this Consent Order is subject to review and approval by the Board and is not effectiveuntil approved by the Board at a duly constitutedBoard Meeting.Board MeetingsOctoberNovemberDecember262018Unless otherwise noted, meetings are held at the Board officeat 1101 Oberlin Road, Raleigh, and begin at 10:00 a.m.North Carolina State Board of Certified Public Accountant Examiners3