The Member performed specified audit procedures and completed a Law Society Reporting Form Trust Report for a law firm. The Report was completed and submitted to the Law Society of British Columbia. The Law Society subsequently conducted a review of the Report. The Member:
- was not independent of the law firm as they were employed by the firm as Chief Financial Officer;
- was unqualified to perform specified audit procedures;
- provided inaccurate or misleading responses to the Law Society’s queries; and
- did not have appropriate licensure from CPABC to conduct this work.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows:
Rules:
101.1 - Compliance with governing legislation, bylaws, regulations and the Code
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 - False or misleading documents and oral representations
206.1 - Compliance with professional standards
Bylaw
700(1)&(2) - Licensure for Public Practice
The Committee recommended the Member:
- Accept a reprimand;
- Pay fine of $1,000;
- Pay expenses of $3,188;
- Successfully complete the CPABC professional development course Ethics in Professional Practice – What Canadian CPAs Need to Know; and
- Provide confirmation to the Director, Professional Conduct that the Member contacted the Law Society and the law firm about the Committee’s determination.