to Respond)
At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held on the 10th day of May 2001, the Tribunal noted that a 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, that the member had:
- Been guilty of conduct unbecoming an accountant.
- Breached the code of ethics of the Institute.
IN THAT when the member acted for certain clients and when another accountant had been requested to take over the said clients' affairs, the member failed:
(a) Within a reasonable and proper time to respond to a letter from the superseding accountant dated the 1st day of August 2000 as to the transfer of the said clients' records.
(b) To hand the said records and/or failed to respond to messages from a third party who at all times was acting as agent for the said clients.
(c) To properly answer the issues raised by the professional conduct committee.
The Tribunal noted that the member admitted the particulars and pleaded guilty to the charges as laid.
In considering the matter of penalty, the Tribunal was concerned that the member did not pay sufficient attention to his responsibilities as a member of his profession.
The Tribunal noted that the member demonstrated a keen wish to discharge his duties as a trustee in a very difficult appointment. The Tribunal was of the view that the member should have sought legal advice and perhaps resigned the appointment. It was also of concern that the member had allowed the issue to come between him and his partners. It certainly appeared to members of the Tribunal that the member had allowed his judgment to become clouded.
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 $2000.00 be imposed.
(b) Pursuant to Rule 21.31 (k) of the Rules of the Institute of Chartered Accountants of New Zealand, the member is censured.
(a) 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 $1893.16 (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.
The Tribunal also required the member within 14 days to provide to his partners, with a copy to the Institute, a written statement setting out the fact that charges had been laid against him and orders made by the Tribunal and the details thereof.
In accordance with Rule 21.35 of the Rules of the Institute of Chartered Accountants of New Zealand, the Disciplinary Tribunal directed that this 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 and locality.
Dated this 25th day of May 2001.
A. N. FRANKHAM, Tribunal Chairman.