Discipline Notice (CPA Saskatchewan website)

By Glenn Hicks

bad practice

Prince Albert accountant fined $15,000 ending long process involving local firm

Jul 5, 2021 | 4:43 PM

A Prince Albert accountant has been fined $15,000 and ordered to undergo 30 hours of professional development, otherwise she could be expelled from the profession.

The move brings an end to an ordeal for a local accountancy firm that had to deal with the aftermath of two former employees whose conduct threatened their reputation.

The disciplinary committee of the Chartered Professional Accountants (CPA) investigated a number of complaints against Lana D. Reilly that covered a period of seven years while she worked for the Kemp Thompson McLeod accounting firm between late-2011 and 2017 and then at her own firm in 2018.

The CPA found she did not provide services with integrity, competence and due care and, regarding her professional misconduct, ‘there is significant risk of future harm as a result of a recurring lack of competence…’

Some of the issues included unreported revenue to the Canada Revenue Agency, a lack of bookkeeping records and significant errors in financial statements.

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The full decision by the CPA can be found on the discipline section of their website here.

The CPA’s disciplinary penalties come two months after those imposed against a former partner at the firm and Reilly’s father, Reid McLeod, who has since retired.

Bill Thompson, who is the partner in charge of Kemp Thompson Brown, is happy the whole matter is behind them.

“It’s good, because it’s done,” Thompson told paNOW. “This [disciplinary] process took almost three years,” he said, noting the company had ‘cleaned up’ all the problem files they had for clients who had decided to remain with them. He also figured the discipline process had been slowed by the COVID pandemic.

Thompson added the past issues could still cause more financial difficulties for some clients.

“We don’t know if those have been cleaned up on the other side [with the Canada Revenue Agency], I don’t have that information,” he said.

Thompson said the issues with McLeod and Reilly came to light when McLeod was going to retire and Reilly was going to become a partner. Others who were also set to become partners and buy McLeod out did their due diligence.

“They started looking at the files. All of the stuff came to light and they said ‘I’m not paying money for that, that’s a headache.’”

Thompson explained it then got to the point where McLeod and Reilly were told they couldn’t remain at the company and had to leave. He previously told paNOW the misconduct had created a lot of problems and clients were mad, but they cleaned things up.

Shelley Thiel, the CEO of CPA Saskatchewan echoed what she told paNOW following McLeod’s disciplinary action in April, that the investigative process is very important to them.

“The Accounting Profession Act prescribes that we, as a self-regulatory body, must investigate all written complaints received that allege professional misconduct or incompetence by CPAs,” she said.

Thiel said any member of the public or the profession can initiate the process for such investigations.

In terms of the CPA disciplinary decision and order, Reilly has 60 days from May 25, 2021 to comply with all aspects otherwise she will face suspension. Failure to comply with all aspects within 120 days will result in expulsion.

paNOW has reached out to Reilly for comment.

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glenn.hicks@pattisonmedia.com

Twitter: @princealbertnow