The Member operates a firm that provides online, digital and cloud-based accounting services. The Member entered into an accounting engagement with a client who was not adept at paperless services. As a result, a difficult client relationship developed when the Member did not adequately address the documentation needs of the client. The engagement letter with the client did not accord with the requirements of Canadian Standard on Related Services 4200 as it did not refer to or describe the objective, use and scope of the compilation engagement which the Member performed for the client. In addition, when the terms of the engagement changed, the engagement letter was not amended.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct following Rules:
201.1 - Maintenance of the good reputation of the profession
202.1 - Due care
206.1 - Compliance with professional standards
The Investigation Committee recommended the Member:
- Accept a reprimand; and
- Pay partial expenses of $5,000.