At a hearing held on the 13th, 14th, 15th and 18th days of August 2003, and on the 8th day of December 2003, at which the member was present and represented by counsel, the tribunal recorded that Kenneth William Fergus, chartered accountant of Christchurch, pleaded not guilty to charges and did not admit particulars in connection with the audit of the financial statements of PPCS Limited:
The tribunal found five of the eight cited particulars proved in whole or in part.
Having regard to the proven particulars, the tribunal found 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, Kenneth William Fergus was not guilty of charges that he had been guilty of conduct unbecoming an accountant or that he had been guilty of negligence or incompetence that 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. The tribunal found Kenneth William Fergus guilty of the charge relating to breaches of the institute's code of ethics with respect to Fundamental Principle 4 and Ethical Principle 28.
The full determinations of the tribunal are available on the institute's web site at:
Orders of the Tribunal
Following consideration of evidence and submissions, the tribunal made the following orders:
(a) Pursuant to Rule 21.31 (k) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Kenneth William Fergus be censured;
(b) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that Kenneth William Fergus pay to the institute the sum of $42,950.00 (G.S.T. inclusive) in respect of the costs and expenses of the hearing before the disciplinary tribunal and the investigation by the professional conduct committee.
(c) 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 Christchurch Press, the
New Zealand Gazette and the Chartered Accountants Journal of New Zealand with mention of the member's name and locality.
Right of Appeal
Pursuant to Rule 21.41 of the Rules of the Institute of Chartered Accountants of New Zealand, which were in force at the time of the original notice of complaint, the member may, not later than 14 days after the notification of this tribunal to him of the exercise of its powers, appeal in writing to the appeals council of the institute against the decision.
No decision other than the direction as to publicity shall take effect while the member remains entitled to appeal or while any such appeal by the member awaits determination by the appeals council.
Dated this 15th day of December 2003.
A. N. FRANKHAM, Tribunal Chairman.