UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT of 1934
Release No. 49836 / June 9, 2004
ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 2030 / June 9, 2004
File No. 3-11516
IN THE MATTER OF JAMES H. PEACH, CHARTERED ACCOUNTANT
The Commission announced the issuance of an Order Instituting Administrative Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice against James H. Peach, a chartered accountant in British Columbia, Canada. The Division of Enforcement alleges that Peach engaged in improper professional conduct in connection with his audit of the fiscal 2000 financial statements of LASV Enterprises, Inc. (LASV), a Canadian-based company. The Division alleges that LASV's audited financial statements did not comply with generally accepted accounting principles because LASV recorded a Dominican Republic real estate property as its sole asset on its balance sheet when, in fact, the company did not own the property. The Division further alleges that Peach failed to comply with generally accepted auditing standards by, among other things, failing to obtain sufficient competent evidential matter upon which to base an audit opinion, including any evidence from third parties relating to LASV's purported ownership of the property.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true and whether Peach should be censured by the Commission or temporarily or permanently denied the privilege of practicing before the Commission.
Pursuant to the Commission's Rules of Practice, an initial decision shall be issued by the administrative law judge within 300 days from the service of the Order upon the Respondent.
See also the Order in this matter