State Board Report

August 2011

Three Massachusetts CPAs have been disciplined by the Public Company Accounting Oversight Board (PCAOB) for violating Rule 4006, “Duty to Cooperate with Inspectors,” and Auditing Standard No. 3,” Auditing Documentation,” the PCAOB announced on August 1. The Board took action based on a November 2009 Ernst & Young audit for which the documentation completion date was January 8, 2010. The Massachusetts Board of Public Accountancy voted to initiate complaints against all three on August 4, 2011. The New York State Office of Professional Discipline is taking action pursuant to the PCAOB’s referral of the one CPA who holds a New York license and a Massachusetts license.

Peter C. O’Toole, former E&Y partner, was barred from associating with a PCAOB-registered accounting firm with the right to petition to remove the bar after three years. This is the longest bar the PCAOB has imposed against a Big Four accounting firm partner to date. He was also assessed a $50,000 civil penalty. Darrin G. Estella, a former E&Y senior manager in the Boston office, was also barred but may file a petition after two years to have the bar removed. Jacqueline A. Higgins, a manager who is licensed in both Massachusetts and New York, was censured.

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