The Member, as a CFO of a company, failed to detect a financial fraud that was perpetrated on the company. The member acted on instructions sent via email that were fraudulent, and were from unknown sources.
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 – Due care
The Committee took into consideration that the Member’s employment was terminated and is a respondent in a civil case related to this matter. The Committee recommended the Member:
- Accept a reprimand; and
- Personally attend a course on fraud prevention, operational skills for CFOs or cybersecurity.