The Firm audited the financial statements of a client and provided an unqualified audit opinion. The Member was the engagement partner. There was audit evidence that suggested an asset’s value was materially impaired. The Firm did not perform sufficient audit procedures to determine if the asset’s value was fairly presented. The financial statements also contained an error in the calculation of cash balances.
The Investigation Committee determined the Firm 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
206.1 – Professional Competence
The Committee recommended that the Firm:
- Accept a reprimand
- Pay expenses of $2800; and
- Attend two full days of professional development courses related to audit and assurance.