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January 2015Volume 01 - 20152015 Legislative SessionLegislation will be proposed during the 2015 session thatwill impact the practice of accountancy in Arkansas. Thebiggest change will be eliminating the Board’s Quality Reviewprogram and moving to peer review. Arkansas is one ofonly 3 states that do not have a peer review program inplace (Delaware, Arkansas, and Nebraska). Arkansas andNebraska are proposing changes in 2015 to implement peerreview. As you can see we as a state are behind the restof the country in the area of quality of financial reportingoversight and this issue could affect the mobility of Arkansaslicensees when practicing outside of the state of Arkansas.Recent communications from the Department of Laborregarding substandard benefit plan audits is another reasonwhy the change is necessary.Listed below are a few important facts to consider about thechange: The quality review program will continue through 2016 Peer review requirements will begin in 2017, thoughthere will be an opportunity during rule making to phasein the impacted licensees so that the peer review processis not flooded with new entrants Licensees that issue compilations will not be required to obtain a peer reviewLicensees that issue reviews or agreed upon procedurereports but not audits will only be required to obtainengagement level peer reviewsLicensees that issue audits will be required to obtainsystem peer reviews (compilations may be excluded fromthe system review process)Due consideration will be given to firms going throughpeer review for the first time – remedial rather thanpunitive action will be taken for failed first time peerreviews.If you have questions about the 2015 proposed changesplease contact the Board’s Executive director (Jimmy Corley)at 501.682.5533. You may also contact Stan Kozij with theArkansas Society of CPAs (501.920.1208) or Donna Gowan(501.305-9110) with the Arkansas Society of Accountants.IN THIS ISSUEBoard Update.2CPA Exam Performance.32014 Quality Review Results.32013 License Renewal CPE Audit.3New Firms.6Board Disciplinary Actions.72014 Active to Inactive Conversions.11CPA Exam - Successful Candidates.12Retired CPAs.132014 Revocations.13State Board of Accountancy Members.14
BOARD UPDATEGovernor Beebe AppointsMike Watts to serveon State Board ofAccountancy2015 Board Meeting ScheduleJanuary 9April 24June 5August 14September 18November 20Mike Watts, JD, CPA of Little Rock, AR has been appointedby the Governor for a 5 year term on the Arkansas StateBoard of Public Accountancy. He replaces Dr. Mike Moore,of Conway whose term recently expired.MIKE WATTS, JD, CPAMr. Watts earned a BBA and MBA from the University of Michigan and a lawdegree from the UALR School of Law. He recently retired as an accountingprofessor at UALR, where he taught for 33 years as a full time faculty member.Meetings of the Board are open to thepublic, except under state law someportions may be closed to the public.Mike is a member of the Board of Directors of the Arkansas Society of CPAs StudentEducation Fund and a former board member of the Arkansas Society of CPAs.The Board members and staff congratulate Mike on his appointment and lookforward to working with him in the coming years.Mike Moore Completes 5 year TermASBPA Office ClosedIn accordance with the schedule adoptedby the State of Arkansas, the Boardoffice will be closed on the followingdates:January 19February 16Martin Luther King DayPresident’s DayA MEMBER OFThe Arkansas State Board of Public Accountancy thanksDr. Mike Moore for his five years of service on the Board.During his tenure Dr. Moore served as board presidentand CPE Committee chairman. As our educator Boardmember, Mike was invaluable in guiding the Boardand Board staff through issues surrounding accountingeducation and related requirements. Mike will be missedand we wish him all the best in his future endeavors.DR. MIKE MOORE, CPAThe Board Welcomes Two New EmployeesTrista Saylors and MeaganMontgomery recently joined theteam at the Arkansas State Boardof Public Accountancy. Tristais our new Fiscal Officer/CPEcoordinator and Meagan is ournew Licensing specialist.MEAGAN MONTGOMERY2TRISTA SAYLORS
2014 Quality Review ResultsDeceasedDuplicate QRExempt due to Peer ReviewNo reports issuedPendingLicensees submitting reportsTotal Licensees surveyed31962,754201533,027Pass3116.1%Pass with Comment10755.4%Pass with Defficencies3920.2%Fail168.3%Total Reports Reviewed19388146247265ArkansasCPA Exam Performance Summary: 2014 Q-4FIRST TIMERE-EXAMSECTIONSSCORE% .037.8%39.0%40.6%44.4%100.0%2013 License RenewalCPE AuditAcceptableAcceptable with changesFailedFailed - passed upon appealTotal Audits CompletedCPA EXAM PERFORMANCE33.2%55.1%9.1%2.6%100.0%AUDBECFARREGCPA Exam Performance Summary: 2014 Q-3FIRST TIMERE-EXAMAUDBECFARREGSECTIONSSCORE% 8.740.0%50.6%43.6%37.2%CPA Exam Performance Summary: 2013 TotalFIRST TIMERE-EXAMAUDBECFARREG3SECTIONSSCORE% .868.945.1%46.7%43.8%39.9%
CPA Exam Performance Summary: 2013CPA EXAM PERFORMANCE SUMMARY: 2013ArkansasARKANSASOverall PerformanceUnique CandidatesNew CandidatesTotal SectionsPassing 4th Section4061821,12195Sections/CandidatePass RateAverage Score2.7643.9%70.3.CandidatesJurisdiction Rankings (1 to 53)CandidatesSections40394443Pass RateAvg Score1751702012 Q-12012 27871.971.868.868.945.1%46.7%43.8%39.9%Exam Type by PercentFirst-Time49%Re-Exam51%1881722012 Q-32012 Q-42013 Q-12013 Q-22302272012 Q-12012 Q-22012 Q-32012 Q-436%38%43%43%2012 Q-12012 Q-22012 Q-32012 Q-4% Pass2232282013 Q-32013 Q-43673142212192013 Q-12013 Q-22013 Q-32013 Q-450%47%45%2013 Q-22013 Q-32013 Q-433%4% nsSection Performance2013 Q-1
CPA EXAM PERFORMANCE SUMMARY: 2013CPA Exam PerformanceSummary: 2013ARKANSASDemographics.MaleFemaleNot Reported2051992Male CandidatesFemale CandidatesNot Reported50.5%49.0%0.5%29.833Average AgeAge Rank.ResidencyCandidate CountIn-State AddressOut-of-State AddressForeign Address384220% of CandidatesIn-State AddressOut-of-State AddressForeign Address94.6%5.4%0.0%Degree TypeCandidate CountBachelor's DegreeAdvanced DegreeEnrolled/Other2668951% of CandidatesBachelor's DegreeAdvanced DegreeEnrolled/Other65.5%21.9%12.6%472012 Q-42013 Q-12013 Q-2New Candidates292012 Q-3292026172012 Q-228272012 Q-12026394757646884New Candidates vs Candidates Passing 4th Section2013 Q-32013 Q-4Pass 4thNotes about the Data1.The data used to develop this report was pulled from NASBA's Gateway System, which houses the Uniform CPA Examination'sApplication and Performance information for all 55 Jurisdictions.2.The demographic data related to Age, Gender and Degree Type is provided by the individual candidates and may not be 100% accurate.Arkansas5
New Firms - The following firms were licensed in 2014David Cleveland, CPA, PALittle Rock, ARPetra Bailey CPA, PLLCCabot, ARFountain Financial & Tax Services, Inc.Harrison, ARComplete ConsultingLittle Rock, ARMatthews, Cutrer & Lindsay, P.A.Ridgeland, MSBaker Firm, P.A.Jonesboro, ARTravis & Bennett, Certified Public Accountants West Helena, ARLanigan & Associates PCThomasville, GAPur Accounting Inc.Benton, ARBailey, Kaufman & Scheibelhut, PLLCCordova, TNRobertson CPA Firm, Inc.Little Rock, ARSarah Berry, CPA, PLLCTexarkana, ARCambridge Accounting Services, LLCFort Smith, ARThe Rieke Firm PLLCHazen, ARSean M. Bruno Certified Public Accountants, LLC New Orleans, LAThomas S Lovett CPA PLLCLittle Rock, ARChester Financial, PLLCLittle Rock, ARGuardian Accounting & Financial Solutions LLC Lowell, ARCox & Creswell PLLCConway, ARJ.Downs.CPA, LLCLittle Rock, ARDenman, Hamilton, & Associates CPA PLLC Little Rock, ARThe Marston Group, PLCMemphis, TNJack Chami CPA PLLCWhite Hall, ARCoulter & Justus, PCKnoxville, TNLudington & Lawson, PLLCFt. Smith, ARMelnyk & Melnyk, CPAFranklin, TNRyan Creswell, CPA, PLLCConway, ARHancock, Askew & Co., LLPSavanah, GACurtis L. CutlerRussellville, ARPickett, Chaney & McMullen, LLPOverland Park, KSTammy L. HookerBeebe,ARReinsel Kuntz Lesher LLPLancaster, PADiana Hays NixNolensville, TNTurlington and Company LLPLexington, KYBarbara Money CPA PAConway, ARCharles K. Atkinson, CPA, PLLCArkadelphia, ARBolton-Jayroe, Inc.Forrest City, ARElliot Davis, LLCGreenville, SCDonald W. Causey & Associates, P.C.Gadsden, ALMoss Adams LLPSeattle, WAKen Mullinax CPA PAFort Smith, ARBober, Markey, Federovich & Co.Akron, OHNPO Builders, LLCBatesville, ARBurr, Pilger, Mayer IncSan Francisco, CABattelle Rippe Kingston LLPDayton, OHC. Renee Wakefield, CPA PAFort Smith, ARHoskins & Company, P.C.Nashville, TNKaren Chandler CPASearcy, ARJiyeon Han CPA LLCLittle Rock, ARRWG, Accounting Services, Inc.Fayetteville, ARKevin D. White CPA LLCStar City, ARThe Fleet FirmCordova, TNSmith Accounting Service, LLCLittle Rock, ARWilcox McCorkle & Co., Ltd.Mount Carmel, IL6
Board Disciplinary ActionsThe following cases were closed at the August 15, 2014 board meeting:1.C13-044 – A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.2.C13-148 – A licensee failed to respond to a 2013 CPE Audit request. A hearing was held and the licensee was assessed a 1,751penalty and suspended immediately until CPA pays penalty, renews for 2014, and provides acceptable CPE documentation for CPE auditrequest.3.C14-033 – A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.4.C14-040 - A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.5.C14-041 – A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.6.C14-045 – A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.7.C14-047 – A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.8.C14-055 – A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.9.C14-059 – A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.10. C14-065 – A licensee and licensee’s firm failed to renew with Board for 2014. The licensee did not attend the Board hearing and theindividual and firm licenses were revoked.11. C14-032 – A licensee failed to renew with Board for 2014. The licensee did not attend the Board hearing and the license was revoked.12. C14-075 –A licensee failed to renew timely for 2014 and was assessed late penalties, which she paid. The CPA then submitted a writtenrequest for refund of penalties citing medical issues. After reviewing documentation provided by licensee’s doctor, the Board granted apartial refund.13. C14-082 – A license failed to renew with the Board for 2014. The licensee surrendered the license and no further action was taken.14. C14-017 - An external complaint was received regarding misuse of funds. The complainant and CPA have resolved the matter and thecase was closed.15. C14-025 – An unlicensed firm has CPA employees listed on website. The firm has added disclaimer language to the website and the casewas closed with no further action taken.16. C14-084 – An unregistered firm performed Employee Benefit Plan audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.17. C14-086 – An unregistered firm appeared to have performed an Employee Benefit Plan audit for an Arkansas company. After furtherreview, it was determined it was a Kentucky plan and the case was closed with no further action taken.18. C14-088 – An unregistered firm appeared to have performed an Employee Benefit Plan audit for an Arkansas company. After furtherreview it was determined it was a onetime audit and the Arkansas firm was in process of being purchased by out of state firm at the timeof the audit. The case was closed with no further action taken.19. C14-092 – An unregistered firm appeared to have performed Employee Benefit Plan audit for an Arkansas Company. After further review itwas determined it was a Pennsylvania plan and the case was closed with no further action taken.20. C14-094 - An unregistered firm performed Employee Benefit Plan audits for an Arkansas company. The firm has registered with the Board,signed a Compliance Statement, and paid a 500 penalty.21. C14-096 - An unregistered firm performed Employee Benefit Plan audits for an Arkansas company. The firm has registered with the Board,signed a Compliance Statement, and paid a 500 penalty.22. C14-097 – An unregistered firm performed Employee Benefit Plan audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.continues on page 87
23. C14-099 - An unregistered firm performed Employee Benefit Plan Audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.24. C14-100 - An unregistered firm performed Employee Benefit Plan audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.25. C14-103- Unregistered firm performed Employee Benefit Plan audit for AR Company. After further review it was determined Firm hadmade timely application for firm license. Requesting closure with no further action.26. C14-104- An unregistered firm appeared to have performed an Employee Benefit Plan audit for an Arkansas Company. After further reviewit was determined Firm had made timely application for firm license and the case was closed with no action taken.27. C14-105 - A firm responded ‘No Reports’ on 2014 QR Survey due to clerical error. Firm has amended response to “exempt – peer review”and has submitted peer review documentation.28. C14-109 - Firm responded No Report on 2014 QR Response. Licensee acknowledges submitting reports with 2014 Individual QR Report.Requesting closure with no further action.29. C14-110 - Firm responded No Report on 2014 QR Response. Licensee confirmed no reports issued. Requesting closure with no furtheraction.30. C14-111 - Firm responded No Report on 2014 QR Response. Licensee confirmed no reports issued. Requesting closure with no furtheraction.31. C14-112 - A firm responded ‘No Reports’ on 2014 QR Survey due to clerical error. Firm has amended response to “exempt – peerreview” and has submitted peer review documentation32. C14-113 - A firm responded ‘No Reports’ on 2014 QR Survey due to clerical error. Firm has amended response to “exempt – peer review”and has submitted peer review documentation33. C14-114 - A firm responded ‘No Reports’ on 2014 QR Survey due to clerical error. Firm has amended response to “exempt – peer review”and has submitted peer review documentation34. C14-123 - A firm responded ‘No Reports’ on 2014 QR Survey due to clerical error. Firm has amended response to “exempt – peer review”and has submitted peer review documentation35. C14-108 – A reinstatement applicant’s license became void in 2006 for failure to renew. The applicant requested re-licensure to inactivestatus pursuant to A.C.A. § 17-12-301. The applicant has signed a consent order, completed a background check and paid prior year feesand late fees for 2002-2006 and 2014 inactive registration fee totaling 620.The following cases were closed at the September 26, 2014 board meeting:1.C12-020 – A Void licensee requested reinstatement but failed to provide the requested information. The case was closed with no furtheraction taken.2.C12-070 – The name of a void firm was found in a Yellow page listing. The firm has provided documentation confirming the listing hasbeen corrected and the case was closed with no further action taken.3.C13-094 – An unregistered firm was discovered, the firm has since licensed. After further review no violations of Board rules and lawswere found.4.C13-119– A revoked CPA requested reinstatement of license and a hearing was held. The applicant was reinstated contingent of thefulfillment of conditions placed by the Board.5.C13-127 - A CPA falsified CPE on 2011 and 2012 renewals. A hearing was held and the CPA’s license was revoked.6.C13-149 – A CPA failed to respond timely to 2013 CPE Audit. A hearing was held and a 2,800 penalty assessed.7.C13-152 – A CPA failed to respond timely to 2013 CPE Audit. A hearing was held. The licensee did not attend the hearing and the CPA’slicense was revoked.8.C13-153 – A CPA failed to respond timely to 2013 CPE Audit. The licensee has signed a Compliance Statement and paid a 250 penalty.Continues on page 98
9.C14-054 – A PA failed to renew timely for 2014. A hearing was held. The individual did not attend the hearing and the PA’s license wasrevoked.10. C14-085 – An unregistered firm performed an Employee Benefit Plan audit while not licensed in Arkansas. The audited firm was in apurchase transition and no longer an Arkansas firm. The case was closed with no further action taken.11. C14-089 – An unregistered firm performed Employee Benefit Plan Audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.12. C14-090 – An unregistered firm performed Employee Benefit Plan Audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.13. C14-091 – An unregistered firm performed an Employee Benefit Plan Audit for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.14. C14-093 – An unregistered firm performed Employee Benefit Plan Audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.15. C14-098 – An unregistered firm performed Employee Benefit Plan Audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.16. C14-102– An unregistered firm performed Employee Benefit Plan Audits for an Arkansas company. The firm has registered with theBoard, signed a Compliance Statement, and paid a 500 penalty.17. C14-117– A firm responded ‘No Reports’ on 2014 QR Survey due to clerical error. Firm has amended response to “exempt – peer review”and has submitted peer review documentation.18. C14-122- A firm responded ‘No Reports’ on 2014 QR Survey due to clerical error. The licensee has revised the response and submittedthe applicable reports for review.19. C14-126– An external complaint was received, alleging an act discreditable by the licensee. The complainant has ceasedcommunications with the Board and the case was closed.20. C14-129 – An inactive CPA failed to note inactive on website. The website has been corrected and the case was closed with no furtheraction.
CPA Exam Performance Summary: 2014 Q-3 CPA Exam Performance Summary: 2013 Total SECTIONS SCORE % PASS FIRST TIME 549 70.0 44.6% RE-EXAM 572 70.7 43.2% AUD 293 7
