The member was retained by a lawyer to perform specified audit procedures and complete a Law Society Reporting Form Trust Report for two years. The Law Society conducted a compliance audit and found numerous exceptions. The successor accountant found numerous exceptions and these were noted in the Trust Report filed for the subsequent year.
It was also determined the member did not have sufficient independence from the client and therefore lacked objectivity.
The Investigation Committee determined the member contravened the CPABC Code of Professional Conduct as follows:
201.1 – Maintenance of the good reputation of the profession
202.1 – Integrity and due care
202.2 – Objectivity
203 – Professional competence
204.1 – Independence: Assurance and Specified Auditing Procedures Engagements
205 – False or misleading documents
206 – Compliance with professional standards
The Committee recommended the member:
- accept a reprimand;
- pay a fine of $2,000;
- pay expenses of $3,125 plus GST of $156.25;
- agree to not perform specified audit procedures and complete a Law Society Reporting Form Trust Report until he passes a future practice inspection; and
- attend in-person and successfully complete the course Audit Engagements – Review of the Standards.