At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held on the 11th day of May 2001 at which the member was present, 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:
? Been guilty of misconduct in a professional capacity.
? Been guilty of negligence or incompetence in a professional capacity, and that this had been of such a degree or so frequent as to reflect on his fitness to practise as an accountant or tended to bring the profession into disrepute.
? Breached the code of ethics of the institute.
IN THAT in respect of a complaint against him by a member of his former firm, and more particularly in the course of acting in regard to an estate and a trust the member:
? Failed to exercise the necessary degree of independence and objectivity while acting as trustee.
? Failed to exercise the necessary degree of skill and/or act with reasonable care.
? Improperly charged fees in circumstances where the fees were not properly based on time and/or failed to describe the nature of the engagement and/or the agreed fee
and in circumstances where there was no proper documentation.
? While acting as a trustee and/or advisor to the said estate and the said trust, omitted from G.S.T. returns, fees of approximately $100,000.00 over a 12 month period.
The Tribunal, in determining the matter of penalty, was of the view that the charges represented serious misdemeanours.
The Tribunal was of the view that the matters under consideration were not about any entitlement to fees but were to do with professional compliance with the code of ethics and a lack of honesty.
Responsibility to the profession and to the code overrode any special relationship with a particular client.
It was noted that the member was given an opportunity to address the Tribunal and chose not to.
It was a concern that the member showed no indication of any regret or contrition about his actions.
The Tribunal noted that the member's legal counsel had submitted that it was appropriate for the Tribunal to suspend the member and allow him to resign.
The Tribunal did not accept the submission that such a course of action was appropriate.
Orders of the Tribunal:
(a) Pursuant to Rule 21.31 (a) of the Rules of the Institute of Chartered Accountants of New Zealand, the Disciplinary Tribunal ordered that Kevin John Williams be removed from the Register of Members of the Institute.
(b) As a consequence, pursuant to Rule 21.31 (d) of the Rules of the Institute of Chartered Accountants of New Zealand, the certificate of public practice held by Kevin John Williams be cancelled.
(c) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the member pay to the Institute the sum of $17,897.75 (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 this decision be published in
the Chartered Accountants Journal of New Zealand, the New Zealand Gazette, and the newspaper Hawke's Bay Today with mention of the former member's name and locality.
Dated this 20th day of June 2001.
MARK SHENNAN, Secretary Disciplinary Tribunal.