Summary of Decision Re: Merrill Carmichael, CPA, CA, carrying on business as Ledgers Cape Breton.


Summary of Complaint

The Member was retained by a client to prepare financial statements and corporate tax filings, which the client complained the Member failed to do accurately or in a timely manner.

Following an investigation, the Investigation Panel laid charges against the Member related to contravention of the following sections of the CPA Nova Scotia Code of Professional Conduct:

201.1 Maintenance of the Good Reputation of the Profession

202.1 Integrity, Due Care and Objectivity

205 False or Misleading Documents and Oral Representations

206.1 Compliance with Professional Standards


The Member accepts the allegations made against him and acknowledges he failed to prepare financial statements and corporate tax filings in an accurate or timely manner; that he failed to perform professional services in accordance with generally accepted standards of the profession and with due care; and that he prepared documents he either knew or ought to have known were false or misleading. The Member was dealing with personal circumstances which negatively impacted his behaviour at the time of the offences.

The Member and CPA Nova Scotia entered into a settlement agreement on September 4, 2019. 


A settlement agreement between CPA Nova Scotia and the Member imposes the following sanctions:

a)   The Member accepts a finding of guilt and reprimand;

b)   The Member undertakes specified professional education;

c)   The Member submits to monitoring of his practice by another CPA firm for a period of 12 months, at his expense;

d)   The Member provides notification of such monitoring to clients and prospective clients;

e)   The Member is subject to increased practice inspection by CPA Nova Scotia, in both frequency and scope; and

f)    The Member reimburses CPA Nova Scotia the amount of $5000 toward the costs of investigation.