Non-Approved Corporate Practice)
At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants held on the 10th day of May 2001 at which the member was present, the Tribunal noted that the member pleaded guilty to the following charges:
THAT in terms of the Institute of Chartered Accountants of New Zealand Act 1996 and the Rules made thereunder, and in particular Rule 21.30, the member had:
- Breached the rules of the Institute.
- Breached the code of ethics of the Institute.
IN THAT
- Without the consent of the Council, the member had allowed a corporation to practice in his name (Rule 19).
- Without the consent of the Council and in respect of
a company which offers accounting services to the public, the member was a director and/or a shareholder and/or directly or indirectly obtained financial benefit from the company, other than by earnings as an employee (Rule 19).
In considering the matter of penalty, the Tribunal expressed its appreciation that the member had attended the hearing and at his expressions of regret with regard to the charges and particulars.
The Tribunal expressed the view that the member should take steps to ensure that he was conversant with the Rules of the Institute of Chartered Accountants of New Zealand and matters of professional development within the Institute.
In that regard, the Tribunal urged the member to:
- Subscribe to the Chartered Accountants Journal of
New Zealand.
- Look to participate in the small practitioners group in Auckland.
Orders of the Tribunal:
(a) Pursuant to Rule 21.31 (c) of the Rules of the Institute of Chartered Accountants of New Zealand, the Tribunal ordered that a monetary penalty of $1000.00 be imposed.
(b) Pursuant to Rule 21.31 (k) of the Rules of the Institute of Chartered Accountants of New Zealand, the member be censured.
(c) The member formalise an arrangement with a mentor, advising the Professional Conduct Committee within 6 weeks of the date of this order of such an arrangement ensuring that the mentor's name and written acceptance are also provided. The costs of the mentor relationship will be the member's responsibility.
(d) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the Disciplinary Tribunal ordered that the member
pay to the Institute the sum of $1977.54 (inclusive of G.S.T.) in respect of the costs and expenses of
the hearing before the Disciplinary Tribunal and
the investigation by the Professional Conduct Committee.
In accordance with Rule 21.35 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal directed that the decision be published in
the Chartered Accountants Journal of New Zealand, the
New Zealand Gazette, and the newspaper circulating in the area without mention of the member's name or locality.
Dated this 25th day of May 2001.
A. N. FRANKHAM, Tribunal Chairman.