Summary of Decision re: Donald E. Webster

The decision at issue concerns a complaint filed against Mr. Webster, formerly a CPA, CA, on referral by the Practice Inspection Committee of CPA Nova Scotia.

The complaint alleged that Mr. Webster failed to correct significant deficiencies identified in practice inspections in 2015, 2017 and 2020. The investigation found that he also:

  • failed to include a trust audit client in the Practice Inspection Planning Questionnaire client listing provided to CPA Nova Scotia;
  • failed to provide accurate information with respect to the state or existence of the Quality Assurance Manual in the Planning Questionnaire;
  • failed to have established and documented quality control policies and procedures in accordance with the Canadian Standard of Quality Control;
  • failed to perform his professional services in accordance with generally accepted standards of practice of the profession for several clients over several years; and
  • failed to comply with the terms of an Interim Order issued by the Investigation Panel of CPA Nova Scotia, which required his work product be approved by a supervisor prior to being issued to its intended user.

Following its investigation of the complaint, the Investigation Panel referred charges to the Discipline Committee on the basis that there was sufficient evidence to prove that Mr. Webster’s conduct was in contravention of the following sections of the CPA Nova Scotia Act and Code of Professional Conduct:

  • S. 89 Compliance with an Order
  • 201 Maintenance of the Good Reputation of the Profession
  • 202.1 Integrity and Due Care
  • 203 Professional Competence
  • 205 False or misleading documents
  • 206 Compliance with professional standards

Summary of Disposition

Mr. Webster entered into a Settlement Agreement with CPA Nova Scotia which was then recommended by the Investigation Panel to the Hearing Panel in accordance with the procedures set out in the CPA Nova Scotia by-laws. He admitted the conduct alleged in the charges.

The Hearing Panel of CPA Nova Scotia accepted the admissions of Mr. Webster and approved the Agreement. The Settlement Agreement includes the following disposition:

  1. Mr. Webster accepts a Reprimand;
  2. Mr. Webster agrees to resign his membership in CPA Nova Scotia;
  3. Mr. Webster agrees to de-register his firm, Donald E. Webster Inc.;
  4. Mr. Webster shall pay a fine of $3000;
  5. Mr. Webster will pay $3,475 as a contribution to the costs of the investigation;
  6. Mr. Webster agrees to pay $5,000 for past monitoring costs.

The Hearing Panel approved the Settlement Agreement in an oral decision on October 25, 2022, and issued its written decision and Order approving the Settlement Agreement on November 4, 2022.