 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC ADMINISTRATIVE PROCEEDING
|
EXTRACTED KEY WORDS
COMMISSION SECURITIES ACCOUNTING ADMINISTRATIVE PROCEEDINGS EXCHANGE AUDIT PANWORLD CHARGING FINANCIAL STATEMENTS ASSETS ORCO AUDITING ENFORCEMENT KEVIN CPA PUBLIC ADMINISTRATIVE PROCEEDINGS UTAH CONNECTION CIVIL REPORTING STANDARDS HESTERMAN VIOLATIONS ANTIFRAUD PROVISIONS FEDERAL SECURITIES LAWS INDICTMENTS PRIOR AUDITORS TERRENCE |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 41283 \ April 14, 1999
ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 1124 \ April 14, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9872
PROCEEDINGS INSTITUTED AGAINST KEVIN E. ORTON, CPA, AND ORTON &
COMPANY
The Securities and Exchange Commission today instituted
public
administrative proceedings charging that Kevin E. Orton, CPA
("Orton"), an accountant in Midvale, Utah, and Orton & Company
("ORCO"), his accounting firm, engaged in improper professional
conduct in connection with their audit of the consolidated
financial statements of PanWorld Minerals International, Inc.
("PanWorld") at and for the year ended December 31, 1994. The
Commission previously filed a civil action against PanWorld,
headquartered in Salt Lake City, Utah, charging it and others with
overstating its assets.
The Division of Enforcement alleges that PanWorld’s 1994
financial statements were not prepared in conformity with
generally
accepted accounting principles ("GAAP") because, among other
things, PanWorld’s consolidated balance sheet reported mining
assets at substantially inflated book values derived from
arbitrary
par values assigned to unregistered and unmarketable preferred
stock issued by PanWorld in exchange for those assets. Further,
according to the Division, Orton and ORCO also recklessly
disregarded applicable professional standards under generally
accepted auditing standards ("GAAS") in their audit in that they
failed to obtain sufficient, competent evidential matter, exercise
due professional care and appropriate professional skepticism, and
adequately plan the audit.
A hearing will be scheduled to determine whether the
allegations made by the Division and Chief Accountant against
Orton
and ORCO are true and, if so, to determine whether Orton and ORCO
should be censured, or temporarily or permanently disqualified
from
or denied the privilege of appearing or practicing before the
SNIPPETS:
|
|
|
| | | |
|
|
