Securities Exchange Act of 1934
Release No. 51065 / January 21, 2005
Accounting and Auditing Enforcement
Release No. 2171 / January 21, 2005
Admin. Proc. File No. 3-9131
In the Matter of Monte S. Colbert, CPA, Respondent. |
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ORDER GRANTING APPLICATION FOR REINSTATEMENT TO APPEAR AND PRACTICE BEFORE THE COMMISSION AS AN ACCOUNTANT |
On September 30, 1996, Monte S. Colbert ("Colbert") was suspended from appearing or practicing as an accountant before the Commission as a result of settled public administrative proceedings instituted by the Commission against Colbert pursuant to Rule 102(e) of the Commission's Rules of Practice.1 Colbert consented to the entry of the findings, and imposition of the remedial sanctions set forth in the September 30, 1996, order, without admitting or denying the facts, findings or conclusions.
Among other employment, from 1989 until 1994, Colbert audited the financial statements of a registered broker-dealer as a sole practitioner. Colbert's suspension relates to his improper professional conduct in auditing the 1991 through 1993 financial statements of that broker-dealer. During the 1991 through 1993 audits Colbert was also employed by the broker-dealer as a salesperson, and thus lacked the independence required of an auditor. Colbert did not comply with the SEC's and the AICPA's independence requirements in auditing the broker-dealer's 1991, 1992, and 1993 financial statements
This order is issued in response to Colbert's application for reinstatement to practice before the Commission as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission and as an independent accountant.
In his capacity as a preparer or reviewer, or as a person responsible for the preparation or review, of financial statements of a public company to be filed with the Commission, Colbert attests that he will undertake to have his work reviewed by the independent audit committee of any company for which he works, or in some other manner acceptable to the Commission, while practicing before the Commission in this capacity.
In his capacity as an independent accountant Colbert attests that he will comply with all requirements of the Commission and the Public Company Accounting Oversight Board, including, but not limited to, all requirements relating to registration, inspections, concurring partner reviews and quality control standards.
Rule 102(e)(5) of the Commission's Rules of Practice governs applications for reinstatement, and provides that the Commission may reinstate the privilege to appear and practice before the Commission "for good cause shown." This "good cause" determination is necessarily highly fact specific.
On the basis of information supplied, representations made, and undertakings agreed to by Colbert, it appears that he has complied with the terms of the September 30, 1996 order suspending him from practice before the Commission as an accountant, that no information has come to the attention of the Commission relating to his character, integrity, professional conduct or qualifications to practice before the Commission that would be a basis for adverse action against him pursuant to Rule 102(e) of the Commission's Rules of Practice, and that Colbert, by undertaking to have his work reviewed by the independent audit committee of any company for which he works, or in some other manner acceptable to the Commission, in his practice before the Commission as a preparer or reviewer of financial statements required to be filed with the Commission, and that Colbert, by undertaking to comply with all requirements of the Commission and the Public Company Accounting Oversight Board, including, but not limited to, all requirements relating to registration, inspections, concurring partner reviews and quality control standards, in his practice before the Commission as an independent accountant has shown good cause for reinstatement. Therefore, it is accordingly,
ORDERED pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice that Monte S. Colbert, CPA is hereby reinstated to appear and practice before the Commission as an accountant.
By the Commission.
Jonathan G. Katz
Secretary
Endnotes
Rule 102(e)(5)(i) provides:
"An application for reinstatement of a person permanently suspended or disqualified under paragraph (e)(1) or (e)(3) of this section may be made at any time, and the applicant may, in the Commission's discretion, be afforded a hearing; however, the suspension or disqualification shall continue unless and until the applicant has been reinstated by the Commission for good cause shown." 17 C.F.R. § 201.102(e)(5)(i).