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April 2017Volume 04 - 2017LEGISLATIVE UPDATEPEER REVIEW AND ATTEST BILLS PASS DURING THE 91ST GENERAL ASSEMBLYSenate bill 260 passed during this year’s legislativesession and is now Act 278. This law change will requireall CPAs and CPA firms who issue attest reports to enrollin peer review by January 1, 2019. With this changeArkansas joins the other 49 states in requiring peer reviewfor those licensees who issue attest reports.Senate bill 259 also passed which is now Act 277. Thisbill updated the definition of attest so that non CPAs arenow prohibited from using AICPA reporting language whenissuing certain non-financial reports. Those reports canstill be issued without referring to AICPA standards. Thisbill also updated the definition of Compilation and createda definition of Preparation of Financial statements, inaccordance with SSARS 21.The Board would like to thank Senator Dave Wallace andRepresentative Les Warren for sponsoring the bills and theArkansas Society of CPAs for all of its efforts in helpingto get the bills passed. Rulemaking to implement thesechanges will begin this summer.Contractors Licensing Board bill modifies FinancialStatement requirementHouse bill 2109 (Act 805) changed the financial statementrequirement for contractors performing individual projectsof less than 750,000. Contractors who fall in thiscategory will now be able to submit a compiled financialstatement prepared by a CPA or PA instead of a Review.The expected effective date of this change is August3, 2017. If you have any questions please contact theContractors Licensing board at 501-372-4661.IN THIS ISSUELegislative Update.1Swearing In Ceremony June 3rd.2New Individual CPA Licenses.2New Firms.2CPA Exam Performance.3New Employee - Melissa Hamric.3Successful Candidates.3January Board Disciplinary Cases.4Upgrades.5Lapsed Licenses.6Surrenders.6Next Version of the CPA Exam.7Inactive Status.7Retired Status.7
SWEARING IN CEREMONY JUNE 3RDOn Saturday, June 3rd we will hold our annual swearing in ceremony for new CPAs at theCapitol Rotunda. The ceremony will begin at 10 am.Invitations will go out soon to those individuals who have passed the CPA exam and becamelicensed sine our 2016 ceremony. Please let us know how many guests you plan to bring sothat we can have enough seating for everyone.NEW INDIVIDUAL CPA LICENSES2017 BOARD MEETING SCHEDULEJune 2August 18September 29November 17Meetings of the Board are open to thepublic, except some portions which maybe closed under state law.ASBPA OFFICE CLOSEDIn accordance with the schedule adoptedby the State of Arkansas, the Boardoffice will be closed on the followingdates:May 29thMemorial DayJuly 4thIndependence DaySeptember 4th Labor DayA MEMBER OFThe following new individual CPA licenses were approved December 1, 2016 throughMarch 31, 2017:Kimberly BartlettBentonville, ARMatthew Grant MillerdLittle Rock, ARJennifer Lorraine Smay Mountain Home, ARAdam ConleyMaumelle, ARRandall Blake LyleRogers, ARAmanda Jo TeerBentonville, ARCynthia Rae SunthimerCamden , ARKaren Kimberly KweteyLittle Rock, ARKaren Marie MasseyJonesboro, ARChester Nathan SnodgrassLincoln, ARMadelyn KurzFort Smith, ARMadison Alexandra LaytonFayetteville, ARPatrick deWitt SanfordVan Buren, ARMelissa Nelwyn WirgesSherwood, ARStacey BookoutNew Roads, LAJared CarlinLittle Rock, ARBertrand MaimoPlano, TXJarrod Dean WheelerLittle Rock, ARCasey Thomas BallMaumelle, ARBrian K. LairdJonesboro, ARDaniel MayfieldJonesboro, ARShannon Fitzgerald VegaMaumelle, ARTerry L. Nichols, Jr.Benton , ARStacey L. GrayMabelvale, ARCandias Maiden GrihamClarksdale, MSJamie Claude BassPoplar Grove, ARAshleigh Lauren AlecusanRogers, ARDenver L. Dennis, IIIFayetteville, ARMargaret West CaseyFayetteville, ARMichael NaveMarion, ARJaye Lyn WaynickLittle Rock, ARBobby Philip MeekFort Smith, ARMatthew Edmond FlowersBentonville, ARBilly S. BellomyHot Springs, ARJennifer Luelleman KapitanTulsa, OKKevin Ward CrowderBenton, ARMichael Robert HufnagelMonroe, LASujinan WangwiwadthCenterton, ARSamuel Montgomery Deason Springdale, ARJessica Katherine PaullAlbuquerque, NMKimberly M. BurnettRussellville, ARChristopher James MitchellSearcy, ARBenjamin Leslie CoronaEl Dorado, ARErin HearnsbergerLittle Rock, ARMarco Antonio LuqueFort Smith, ARDaylea DuVallCabot, ARJoshua Dean GarrettWestminster, COTennille Barksdale AyersLittle Rock, ARNEW FIRMSThe following firm licenses were approved December 1, 2016 - March 31, 2017Hart Marketing Group, IncR.K. Hudson, PLLCLawson Accounting Group, PLLCTed Duncan CPA PAHMM, CPAs LLPBarons’, Inc.Cynthia R Sunthimer, PCWilliam Fulton, CPAD. L. Purvine, CPA, PLLCBarfield, Murphy, Shank & Smith, LLCKeiter, Stephens, Hurst, Gary & Shreaves, P.C.Berry, Dunn, McNeil & Parker, LLCKMA Bodilly CPAs & Consultants, SCTamara Hooks Lee CPA PLLC2Little Rock, ARFairfax, VAFort Smith, ARLittle Rock, ARHauppauge, NYPelsor, ARCamden, ARCordova, TNVanceboro, NCBirmingham, ALGlen Allen, VAPortland, MEMadison, WIJonesboro, AR
CPA EXAM PERFORMANCECPA Exam Performance Summary: 2016 Q4FIRST TIMERE-EXAMAUDBECFARREGSECTIONSSCORE% .237.2%46.5%29.8%34.5%CPA Exam Performance Summary: 2017 Q1FIRST TIMERE-EXAMAUDBECFARREGSECTIONSSCORE% 9.738.4%43.8%39.0%40.0%CPA Exam Performance Summary: 2016 TotalFIRST TIMERE-EXAMAUDBECFARREGSECTIONSSCORE% .569.340.4%48.2%37.1%46.2%3New Employee - Melissa HamricMelissa Hamric is our new Exam specialist.Melissa has worked for the past 2 years at theArkansas Public Service Commission. Priorto that she worked at UAMS and Children’shospital.Melissa lives in Lonoke and has fosterparented along with her husband Wayne forseveral years. Her hobbies include spendingtime with her children and judging beautypageants. Welcome Melissa!SUCCESSFUL CANDIDATESThe following candidates successfullycompleted their last section of the CPAexam in Q4 2016.Jamie BassCody BeasleyBilly BellomyRebecca BoltonStacey BookoutEmily CarterAdam ConleyDenver DennisMatthew FlowersBrittany GibsonStacey GrayCandias GrihamFrank HellmerThomas HerrellHank HouseMadelyn KurzSarah LindBertrand MaimoDaniel McCarthyMatthew MillerdTerry NicholsJessica PaullJoshua ReaperPatrick SanfordJennifer SmayKatelynn TaylorMargaret WarrenJarrod WheelerPoplar Grove, ARFayetteville, ARHot Springs, ARGreenwood, ARNew Roads, LAKansas City, MOMaumelle, ARFayetteville, ARBentonville, ARBentonville, ARMabelvale, ARClarksdale, MSRussellville, ARLittle Rock, ARNorth Little Rock, ARFort Smith, ARFort Wayne, INPlano, TXBentonville, ARLittle Rock, ARBenton, ARAlbuquerque, NMSearcy, ARVan Buren, ARMountain Home, ARClarksville, ARFort Smith, ARLittle Rock, AR
JANUARY BOARD DISCIPLINARY CASESThe following cases were closed at the January 13, 2017 Board Meeting:1.C15-018 – A void licensee was discovered holding out onwebsite as a CPA. The individual has removed the CPA titlefrom the website and the case was closed with no further actiontaken.2.C15-088 – A lapsed licensee was convicted of a felony. Theindividual has surrendered his license in lieu of further Boardaction and the case was closed.3.C15-115 – A licensee failed to respond to a 2015 CPE auditrequest. Original responses were lost in interoffice mail and thelicensee has responded to follow up communications with therequested documentation. The case was closed with no actiontaken.4.11. C16-121 - An external complaint was received involving abilling dispute whereby Licensee failed to achieve client’sdesired outcome in regard to resolving an IRS matter. Boardinvestigation found no probable cause to proceed withdisciplinary proceedings and the case was closed.12. C16-124 – A licensee was required to respond to 2016 QRsurvey for both their individual and firm licenses. The licenseeresponded timely to firm QR survey but failed to respond timelyregarding individual QR survey. After follow up the licenseeresponded to the individual QR survey and the case was closedwith no further action taken.C15-117 – A licensee failed to respond to the 2015 QR survey,failed to license a firm, and misstated his 2009 and 2012 QRyear responses. The individual has surrendered his license inlieu of further Board action and the case was closed with nofurther action taken.5.C16-022 – A firm name with CPA title registered with theSecretary of State’s office was discovered. The licensee is notholding the company out to the public and has removed CPAfrom company name. The case was closed with no furtheraction taken.6.C16-026 – A firm name with CPA title registered with theSecretary of State’s office was discovered. The licensee is notholding the company out to the public and has removed CPAfrom company name. The case was closed with no furtheraction taken.7.desired outcome in regard to resolving an IRS matter. Boardinvestigation found no probable cause to proceed withdisciplinary proceedings and the case was closed.13. C16-125 – A licensee failed to timely respond to a certifiedletter regarding their individual 2016 QR survey. The licenseehas signed a compliance statement and paid a 500 penalty.14. C16-131 – A licensee failed to timely acknowledge a criminalconviction. During the upgrade process, the board becameaware of a 2002 criminal conviction. After further review, it wasdetermined licensee should have notified Board of conviction onhis 2008 renewal. Due to extenuating circumstances the casewas closed with no action taken.15. C16-132 – An out of State Firm self-reported that it failed toacknowledge a partner being sanctioned by another state boardon its prior year renewal. After review the case was closed withno action taken.16. C16-135 – An inactive licensee was discovered providingfinancial advisory and consulting services. The licensee signeda compliance statement and paid a 500 penalty.C16-034 – A licensee failed to obtain 4 CPE hours in ethicsduring the thirty-six (36) months immediately precedingexpiration of license. Hearing H16-058 was held November 18,2016. Licensee was assessed a penalty of 1,175, requiredto complete 4 CPE hours in ethics, and suspended until thepenalty is paid and the additional CPE hours are completed.8.C16-101 – A licensee’s QR survey response was questionedas to accuracy. After additional review, it was determined thelicensee’s QR response was correct. The case was closed withno action taken.9.C16-113 – A licensee provided accounting services while onRetired status. The licensee paid a 1,000 penalty and signeda compliance statement.17. C16-136 – A licensee failed to timely respond to a 2016 CPEAudit request. The licensee signed a compliance statement andpaid a 100 penalty.18. C16-142 – A licensee failed to timely acknowledge a criminalconviction. The licensee was convicted on September 7, 2016for disorderly conduct, and notification was received on Nov. 29,2016. The case was closed with no action taken.19. C16-144 – A firm licensee was sanctioned by another Boardand failed to make timely notification. The case was closed withno action taken.10. C16-120 – An external complaint was received involving abilling dispute whereby Licensee failed to achieve client’sContinued on the Following Page4
JANUARY BOARD DISCIPLINARY CASESContinuedaccounting / consultant firm. Originally, firm was listed in YellowPages under Accountants-Public, now listed under AccountingServices. The case was closed with no further action taken.20. C16-145 – A licensee has acknowledged a pending criminalaction. The trial will be monitored by Board staff.21. C16-146 – A firm licensee has acknowledged having one ormore partners who have been sanctioned by a regulatoryagency. After reviewing the details of the sanctions the case wasclosed with no action taken.28. C16-140 – An applicant for licensure failed to acknowledge aJanuary 2014 criminal conviction on the applicant’s CPA examapplication and CPA license application. The applicant pled nocontest to domestic battery 3rd degree. Applicant was advisedby attorney that plea would dismiss charges and should reportas if it never occurred. The charge was dismissed Sept. 2014.The case was closed with no action taken.22. C16-147 – A firm licensee has acknowledged having a partnerwho has been sanctioned by a regulatory authority. Afterreviewing the details of the sanction the case was closed with noaction taken.23. C16-148 – A firm licensee was sanctioned by the SEC. Firm hasmade timely notification to the Board and no Arkansas clients orindividual licensees were involved. The sanction was related tothe audit of a Florida corporation. The case was closed with noaction taken.29. C16-141 – An applicant for reciprocal licensure failed toacknowledge a 1984 charge of possession of marijuana withintent to distribute. The applicant was advised by legal counselat the time to answer ‘No” on any kind of application (e.g.employment). Charge was later dismissed. The case wasclosed with no action taken.24. C16-149 – A firm licensee Firm has acknowledged having apartner who has been sanctioned by a regulatory authority (SEC).After reviewing details of the sanction the case was closed withno action taken.30. C16-108 – An applicant surrendered an inactive licenseDecember 31, 2015 and requested to upgrade to active status.The applicant signed a consent order, took required CPE hours,and paid 110 licensing fee.25. C16-150 – A licensee Firm was sanctioned by another stateBoard. The Firm made timely notification to our Board. Afterreviewing details of the sanction the case was closed with noaction taken.31. C16-117 – A firm licensee received a fail QR rating for an auditand a compilation report. The licensee has signed a consentorder and agreed to no longer perform audits and to complete16 additional hours of CPE on compilation reports.26. C16-153 – A licensee acknowledged a pending criminal actionon their license renewal. Investigation revealed no violation ofBoard laws / rules and the case was closed with no action taken.32. C16-122 – An applicant was revoked in 2004 and requested toreinstate to inactive status. An internet search found applicantholding out as an inactive CPA. The applicant has signed aconsent order and has paid penalties / fees totaling 675.27. C14-028 – A non-licensee was discovered holding out as anREVOCATIONH17-002 Terry Morrison – Respondent did not appear at hearing. Board found that Respondent failed to completeand return 2016 Quality Review Survey and failed to respond to a certified mailing from the Board. Respondent’s CPAcertificate was revoked by Board order.UPGRADESThe following individuals upgraded from inactive to active status from December 1, 2017 to March 31, 2017:Frederick HoytAndrea HallSharon McCauleyCherie Bardwell SmithApril Roberts ElliottGreenwood, ARBentonville, ARPelsor, ARAlexandria, VACentennial, CORobert C. Downie, Jr.Robert G. YoungStephanie L. PollardC. Duane WormingtonCathy Elaine Armstrong5Little Rock, ARLittle Rock, ARSherwood, ARAlpena, ARFort Smith, AR
LAPSED LICENSESIndividuals or firms that did not renew their CPA / PA license for 2017 are now lapsed and are prohibited frompracticing public accounting or holding out as an Arkansas CPA or PA. See below for list of firms and individualswhose licensed lapsed as of April 1, 2017:John McColloughDavid GriesseBilly PearcyTommy PriceXi AiMichael JohnsonAng ShenRachel KremerLisa WilderDayton LierleyMary SmithLisa Marie WalkerBarranco & Associates, P.A.Leslie SweeneyRobert HillDarryl SpencerAndrew SandersDuvvuru CPA, PLLCDonald WoodCory KirkChadrick DickinsonDean VohsXianbin GaoDonald PetersWard, ARPrairie Grove, ARTexarkana, TXSearcy, ARSpringdale, ARLittle Rock, ARPlano, TXLittle Rock, ARLittle Rock, ARAustin, TXKennesaw, GAIndian Land, SCConway, ARMemphis, TNPerryville, ARFayetteville, ARDenver, COLittle Rock, ARPrairie Grove, ARFrisco, TXFayetteville, ARSiloam Springs, ARCoppell, TXJacksonville, ARLaura TaylorJohn MccalebCandice JohnsonGregory AlperinThokozile ZuluGary PrinceG. FreemanEric SummerhillWilliam PoseyMarion LedfordShawn SchaumburgR. TedderFred ColemanFang YangLinda SnodgrassStephen ThibaultSharon ThomasWilcox McCorkle & Company LTDSandra RalphAnthony A. Bryant CPA PCNT Tuttle, CPAScott AbramsonRyan SawyerNeal GravesLittle Rock, ARLittle Rock, ARLittle Rock, ARLondon, UKBurlington, KYJacksonville, ARCumming, GAAlexander, ARGermantown, TNAlamogordo, NMFort Smith, ARFairview, TXBowling Green, OHFreemont, CABismarck, ARCenter Barnstead, NHNorth Little Rock, ARMount Carmel, ILRichmond, VAFayetteville, ARSugar Land, TXChicago, ILDallas, TXHot Springs, ARSURRENDERSThe folllowing individuals / firms surrendered their licensefrom December 1, 2016 - March 31, 2017:Earline WhybourneDavid SmithDiane DunhamMKFrench, Certified Public Accountant, Ltd.CF & Co., L.L.P.Scott A Welch & Co. CPA PLCJohn M. HudsonMargaret ClimerAllison ChaumontVern BensonLudington & Lawson, PLLCDavid L. Cypert, CPA, PLLCCaron BlannBurr Pilger Mayer, Inc.Henry & Peters, P.C.Smith, Jackson, Boyer & Bovard, PLLCHomer A. Brown IIIJames ShortRay ThomasRalph FritzchDennis R. JamesJohn Jeakle, Jr.Carolyn KeeJohn FrostEdward WrightKenneth WellsTurlington and Copmany, L.L.P.Stephen RoeSally GreeneDe La Hoz, Perez & Barbeito, PARichard Mobley IIJohn RogersZhirong ChenBrice PriestlyRichardson, TXKennett, MOLittle Rock, ARSpringdale, ARDallas, TXLittle Rock, AROverland Park, KSRuston, LAEdmond, OKGeorgetown, TXFt. Smith, ARConway, ARHampton, ARPalo Alto, CALongview, TXDallas, TXDallas, TXMemphis, TNTulsa, OKWichita Falls, TXLittle Rock, ARFleming Island, FLSearcy, ARClarksville, ARLittle Rock, ARMonticello, ARLexington, NCNorth Little Rock, ARWest Memphis, ARCoral Gables, FLColorado Springs, CONorth Little Rock, ARThe Dalles, ORDallas, TXETHICS IN THE NEWSRecently, several national news organizations have reported thata Big 4 accounting firm had fired five audit partners for “unethicalbehavior” involving the dissemination of confidential informationfrom the Public Company Accounting Oversight Board (PCAOB)concerning inspection of the firm’s audit practice. Additionally,at least one professional staff member of the PCAOB has beenreleased as a result of the incident. It is presumed that each of theaudit partners and professional staff is licensed by one or moreState Boards of Accountancy, which have the ultimate responsiblefor the licensure and regulation of CPAs in the United States.The PCAOB was established by Congress in 2002 to “overseethe audits of public companies in order to protect the interestsof investors and further the public interest in the preparation ofinformative, accurate and independent audit reports.” While thePCAOB is authorized to determine those individuals and firmsthat may perform audits of publicly traded companies, only StateBoards of Accountancy are authorized to investigate, prosecute andpotenti
5. C16-022 – A firm name with CPA title registered with the Secretary of State’s office was discovered. The licensee is not holding the company out to the public and has removed CPA from company name. The case was closed with no further action ta
