6 DECEMBER 2007

NEW ZEALAND GAZETTE, No. 136

3551

(c) Pursuant to Rule 21.33 of the Rules of the Institute of
Chartered Accountants of New Zealand, the disciplinary
tribunal ordered that Tracey Joy Arnerich pay to the
institute the sum of $17,000.00 (inclusive of GST) in
respect of the costs and expenses of the hearing before
the disciplinary tribunal and the investigation by the
professional conduct committee and the cost of the
publicity.

In accordance with Rule 21.35 of the Rules of the Institute
of Chartered Accountants of New Zealand, the decision of
the disciplinary tribunal will automatically be published
in the Chartered Accountants Journal and on the institute’s
website and the tribunal directed that the decision be
published in the Western Leader, the New Zealand Gazette
and the New Zealand Herald with mention of the member’s
name and locality.

The publicity in the Chartered Accountants Journal, the
New Zealand Gazette and on the website will be the full
version of the notice of decision, and the version in the
Western Leader and the New Zealand Herald will be
the abbreviated version of the notice of decision with
reference to the full decision on the institute’s website.

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 28th day of November 2007.

R. J. O. HOARE, Chairman, Disciplinary Tribunal.

gn8361

Institute of Chartered Accountants of New Zealand
—Notice of decision of the Disciplinary Tribunal
(Member Guilty of Incompetence in a Professional
Capacity and Breaching the Institute’s Rules
and/or Code of Ethics)

At a hearing of the disciplinary tribunal of the Institute of
Chartered Accountants of New Zealand held in public
on 26 November 2007, at which the member was in
attendance and represented by counsel, Kwok-Chi (Paul)
Tsui, a chartered accountant of Auckland, admitted
particulars (a), (b), (c) and (d) and pleaded guilty to charges
(2) and (3). Charge (1) was withdrawn.

The charges and particulars were as follows:

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) (withdrawn);

(2) incompetence in a professional capacity that has
been of such a degree and/or so frequent as to reflect
on his fitness to practise as an accountant and/or
tends to bring the profession into disrepute; and/or

(3) breaching the Rules and/or the Code of Ethics,
specifically Rule 20.6(d) and/or the fundamental
principle of Integrity (Rule 2) and/or the
fundamental principle of Competence (Rule 7 and/or
8) and/or the fundamental principle of Quality
Performance (Rule 9 and/or Rule 11).

Particulars

IN THAT

In his role as a chartered accountant in public practice, the
member:

(a) In relation to Institute A:

(i) undertook assurance work in the form of an
attestation to the New Zealand Qualifications
Authority (NZQA) dated 18 August 2006 and in
doing so failed to comply with the practice review
board’s directive in accordance with Rule 20.6(d)
not to do so, pursuant to their letter to him dated
8 March 2005; and/or

(ii) failed to prepare sufficient documentation to carry
out an assurance engagement, being a professional
attestation for NZQA dated 18 August 2006, in
breach of Review Engagement Standard, RS-1;
and/or

(iii) made a false or misleading statement, in that he
signed an attestation to NZQA dated 18 August
2006 that included a statement that his work was
conducted in accordance with the Professional
Engagement Standards issued by the Institute of
Chartered Accountants of New Zealand, when this
was not the case, in breach of the fundamental
principle of integrity; and/or

(iv) made a false or misleading statement, in that he
signed an attestation to NZQA dated 18 August
2006 that included a statement that he had no
relationship with the entity other than in his role
as an independent chartered accountant, when
this was not the case as his firm also undertook
compilation engagements for this client, in breach
of the fundamental principle of integrity; and/or

(b) In relation to Company B:

(i) failed to make proper enquiry and/or prepare
appropriate documentation to support numerous
transactions in the compilation of the 2005
financial statements in breach of Compilation
Standards’ 6 (Documentation) and/or 7 (Perusal)
and/or the fundamental principle of quality
performance; and/or

(ii) prepared an income tax return based on the
financial statements that contained the entries
referred to in Particular (b)(i), in breach of TG-1
and/or EG-2; and/or

(iii) incorrectly filed the 2005 income tax return IR4,
including the annual imputation return, and in
doing so demonstrating a breach of TG-1 and/or
EG-2 and/or the fundamental principle of quality
performance; and/or

(iv) failed to produce in a timely manner the supporting
documentation and source documents required by
the professional conduct committee pursuant to
letters dated 29 January 2007 and/or 15 February
2007 and/or 20 March 2007; and/or

(c) In relation to the compilation engagement for Company C:

(i) failed to maintain sufficient documentation to
substantiate the inventory balance of $358,616.00
as at 31 March 2003, in breach of Compilation
Standards’ 6 (Documentation) and/or 7 (Perusal)
and/or the fundamental principle of quality
performance; and/or