The Member was the treasurer and shareholder of a private company. The Member’s firm issued Notice to Reader financial statements for the company and the Member was the engagement partner. A dispute among the company’s shareholders arose and at an Annual General Meeting of the shareholders, a motion to waive the appointment of an auditor failed to receive the required unanimous consent of the shareholders. Accordingly, under the Business Corporations Act, the company was required to have an auditor. The company’s Board of Directors failed to cause the company to appoint an auditor, but the Member remained treasurer of the company and the engagement partner for the firm’s services to the company.
The Investigation Committee determined the Member contravened the CPABC Rules of Professional Conduct as follows:
213 - Unlawful Activity
The Committee recommended that a Statement of Complaint not be issued, on condition that the Member promptly resign as the treasurer of the company or as engagement partner.