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
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.