A client of the Firm owed the Firm a substantial debt when the client changed auditors. The Firm did not co-operate with the successor auditor until the client’s debt was paid.
The Investigation Committee determined that the Firm 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
302.2 - Communication with predecessor
303.1 - Provision of client information
501 - Policies and procedures for compliance with professional standards
502 - Policies and procedures for the conduct of a practice
The Committee recommended that the Firm:
- accept a reprimand;
- pay a fine of $5,000; and
- pay investigation expenses of $5,156.