While finalizing the 2018 audited financial statements of a client, the Member was informed in July 2019 of allegations of financial misconduct in the affairs of the client. The Member properly determined that the 2018 financial statements should not be released without satisfactory explanations being obtained. While the Member’s January 2022 decision to resign as auditor appeared reasonable based on the information available, the Member’s interactions, or lack thereof, with the client between July 2019 and January 2022 did not maintain the good reputation of the profession or reflect due care.
The Investigation Committee determined the Member 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
The Investigation Committee recommended the Member:
- Accept a reprimand; and
- Pay partial expenses of $2,800.