he Member was retained by a law firm to complete the accountant’s portion of the annual Trust Report which the law firm was required to submit to the Law Society of British Columbia (LSBC). The Member completed the relevant portions of the Trust Report and reported that the law firm was not in compliance with all LSBC rules for trust accounting. The Member reported several exceptions. The LSBC subsequently conducted a compliance audit of the law firm which revealed exceptions that the LSBC considered significant, and that had not been reported by the Member. These included the law firm’s failure to maintain books and records, failure to prepare monthly trust reconciliations, and trust shortages.
The Investigation Committee determined that the Member contravened the following Rules of the CPABC Code of Professional Conduct:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
205(a) - False or misleading documents
206.1 - Compliance with professional standards
The Committee recommended that the Member:
- accept a reprimand;
- pay a fine of $2,000;
- pay investigation expenses of $2,527; and
- ensure that before commencing any further engagements involving LSBC Trust Reports, they acquaint themselves with the relevant professional standards and undertake appropriate professional development to ensure that they adhere to professional standards.