The Member was retained by a client to perform specified audit procedures and complete a Law Society Reporting Form Trust Report for their client on two engagements. The Reports were completed and submitted to the Law Society of British Columbia. The Law Society subsequently conducted a review of the client’s trust accounts, and noted numerous breaches of trust accounting rules that the Member should have reported to the Law Society.
In addition, the Member was not independent of the client, as they also performed bookkeeping services for them. The Member did not respond to Law Society queries during its review of the client’s transactions, and in this matter, provided information and responses to CPABC’s investigator which upon further enquiry, were incorrect or misleading.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows
104.1 - Requirement to co-operate
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
204.1 - Independence – Assurance and specified auditing procedures engagements
205(a) - False or misleading documents
206.1 - Compliance with professional standards
The Committee recommended the Member:
- Accept a reprimand;
- Pay a fine of $2,500; and
- Pay expenses of $4,358.