Notice Type
General Notices
Notice Title

Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand-Notice of Decision

of the Disciplinary Tribunal (Member Guilty of Misconduct in a Professional Capacity, Negligence or Incompetence and Breaching the Code of Ethics
of the Institute of Chartered Accountants of
New Zealand)
At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held on the 29th day of September 2004, which the member elected not to attend and was not represented by counsel, the tribunal recorded that James Henry Orchard, of Waihi, pleaded guilty to the following charges and admitted the following particulars:
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 is guilty of:
? misconduct in a professional capacity;
? negligence or incompetence in a professional capacity of such a degree or so frequent as to reflect on his fitness to practise as an accountant or tends to bring the profession into disrepute;
? failing to comply with a requirement of the Professional Conduct Committee pursuant to Rule 21.3 (d); and
? breaching the Institute's Code of Ethics, specifically Fundamental Principles of Competence, Quality Performance and/or Rule 7, Rule 11.
Particulars
IN THAT in relation to a complaint by the Practice Review Board, the member:
(a) failed to issue an adverse opinion in his audit
report of a client company on the basis of a going concern and/or recognition of internally generated goodwill and/or recognition of accounting services;
(b) conducted an audit when he did not have the requisite expertise to provide those audit services;
(c) undertook an audit that did not comply with the requirements of the Institute's Codified Auditing Standards; and
(d) failed to attend his Final Determination hearing despite being required to do so by the Professional Conduct Committee.
The tribunal found that the member had pleaded guilty to the charges and had admitted the particulars.
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 the name of James Henry Orchard be removed from the institute's Register.
(b) Pursuant to Rule 21.31 (d) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that the certificate of public practice held by James Henry Orchard be cancelled.
(c) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that James Henry Orchard pay to the institute the sum of $4,067.40 (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 New Zealand Herald with mention of the member's name and locality.
In reaching its decision, the tribunal considered that the charges to which the member had pleaded guilty were very serious and included negligence and incompetence. The member had shown contempt for the institute and its standards and exhibited a total lack of contrition.
The tribunal regarded the member's failings to be a very serious matter which left no alternative but to remove the member from the institute's Register of members.
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 the member 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 4th day of October 2004.
A. N. FRANKHAM, Tribunal Chairman.