The 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 certified that the law firm was in compliance with all LSBC rules for trust accounting without exception. The LSBC subsequently conducted an audit of the law firm which revealed numerous breaches of LSBC requirements, including failure to maintain books and records, a trust shortage and that trust reconciliations had not been prepared monthly or at all.
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 $2,337; 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.