of the Institute of Chartered Accountants of
New Zealand (Member Guilty of Misconduct in
a Professional Capacity, Conduct Unbecoming
an Accountant and Breaching the Rules of
the Institute)
At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held on the 30th day of June 2005, which the member did not attend and was not represented by counsel, the tribunal found James Woodson, a provisional member of Brisbane, Queensland, Australia (formerly of Auckland), guilty of the following charges and 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:
(1) misconduct in a professional capacity; and/or
(2) conduct unbecoming of an accountant; and/or
(3) breaching the rules of the institute (Rule 23.1); and/or
(4) failing to comply with an order made by the professional conduct committee.
Particulars
IN THAT being a member of the Institute of Chartered Accountants of New Zealand and in relation to a complaint by the practice review board, the member:
(a) was a party to an agreement to enable ABACI Chartered Accountants Limited to practise as a chartered accounting practice when it was not in substance controlled by a chartered accountant;
(b) entered into an agreement with a chartered accountant which he knew or ought to have known was intended to defeat the requirements relating
to the granting of certificates of public practice;
(c) entered into an agreement to remunerate a member for the provision of the member obtaining and/or maintaining approved company status for ABACI Chartered Accountants Limited, with the institute;
(d) (withdrawn);
(e) failed to appear before the professional conduct committee at his final determination despite a requirement to attend;
(f) entered into an arrangement for the purpose of circumventing the rules of the institute, in relation to offering accounting services to the public and holding a certificate of public practice in circumstances where he was not entitled to offer and/or provide accounting services to the public and/or did not hold a certificate of public practice;
(g) failed to notify the institute as soon as practicable of his change of address and/or change of business
or employment.
The tribunal found the member had been party to explicitly and deliberately entering into an arrangement to circumvent the public practice rules of the institute which exist for the protection of the public and therefore found the member guilty of both misconduct in a professional capacity
and conduct unbecoming an accountant. When a person becomes a member of the institute, they agree to abide by
the rules of the institute and comply with professional and ethical standards, and breaches of those rules is unacceptable behaviour.
Orders of the Tribunal
(a) Pursuant to Rule 21.31 (b) of the Rules of the
Institute of Chartered Accountants of New Zealand,
the disciplinary tribunal ordered that James Woodson
be suspended from membership of the institute for
two years.
(b) Pursuant to Rule 21.31 (c) of the Rules of the
Institute of Chartered Accountants of New Zealand,
the disciplinary tribunal ordered that James Woodson pay to the institute a monetary penalty of $3,000.00.
(c) Pursuant to Rule 21.33 of the Rules of the
Institute of Chartered Accountants of New Zealand,
the disciplinary tribunal ordered that James Woodson pay to the institute the sum of $4,912.00 (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 of the tribunal be published in the Chartered Accountants Journal, the
New Zealand Gazette and the Brisbane Courier Mail
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 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 11th day of July 2005.
R. J. O. HOARE, Tribunal Chairman.