16 AUGUST 2007

NEW ZEALAND GAZETTE, No. 91

2391

General Notices

Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand—Notice of Decision of the Disciplinary Tribunal (Member Guilty of Conduct Unbecoming an Accountant)

At a hearing of the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand held in public on 30 and 31 July 2007, at which the member was in attendance and represented by counsel, Sam Ming Chan, a fellow chartered accountant of Auckland, admitted amended particulars (a)(i), (a)(v), (c), (d), (e), (g), (h), (i), (j), (k), (n), (o), (p)(i), (p)(ii), (q), (r) and (s) and pleaded guilty to charge (2).

Particulars (a)(ii), (a)(iii), (a)(iv), (b), (f), (l) and (m) were withdrawn and charges (1), (3), (4) and (5) were withdrawn.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(1) (withdrawn);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) Conduct unbecoming an accountant; and/or

(3) (withdrawn);

(4) (withdrawn);

(5) (withdrawn).

Particulars

IN THAT in his role as a chartered accountant in public practice and in relation to a complaint by Mr X, the member:

(a) failed to action in a timely manner (in breach of Rule 10 of the Code of Ethics) numerous requests made by his client, including that he:

(i) failed to respond to Mr X’s questions regarding Company A Limited, as requested in emails dated 19 September 2005 and/or 7 November 2005 and/or 12 December 2005 and/or 28 March 2006 and/or 3 April 2006; and/or

(ii) (withdrawn);

(iii) (withdrawn);

(iv) (withdrawn);

(v) failed to respond in a timely manner to emails from Mr X on 22 August 2005 and/or 29 August 2005 and/or 28 September 2005 and/or 16 November 2005 and/or 5 December 2005 and/or 3 April 2006, regarding issues arising in the preparation of the 2005 financial statements for a number of entities; and/or

(b) (withdrawn);

(c) failed to prepare in a timely manner a detailed imputation credit account reconciliation for Company B Limited, as requested by Mr T of Inland Revenue Department on 22 December 2005 and/or 7 February 2006 and as agreed at a meeting with Mr T on 8 February 2006; and/or

(d) failed to file the 2005 imputation credit account return for Company B Limited and/or Company A Limited in a timely manner and/or within the timeframes allowed by the Inland Revenue Department; and/or

(e) compiled financial statements for Company A Limited for the year ended 31 March 2005 that failed to contain an explanatory note for the reduction in share capital and the difference in equity at the end of the previous period and the start of the current period; and/or

(f) (withdrawn); and

in his role as a chartered accountant in public practice and in relation to a complaint by the practice review board, the member:

(g) was a director of a company which had offered accounting services to the public, S. M. Chan & Partners CA Limited, which was placed into liquidation on 23 June 2005, owing $139,376.00 or thereabouts to the Inland Revenue Department; and/or

(h) was a director of a company which offered accounting services to the public, S. M. Chan & Partners Limited, which The Commissioner of Inland Revenue applied to put into liquidation on 12 May 2006; and/or

(i) allowed S. M. Chan & Partners CA Limited to cease trading with unpaid creditors and formed a new company with a similar name (S. M. Chan & Partners Limited) and continued to trade with assets purchased from S. M. Chan & Partners CA Limited; and/or

(j) failed to file income tax returns for S. M. Chan & Partners CA Limited for periods between 1 August 2004 and 23 June 2005 within the timeframe required; and/or

(k) failed to pay GST and PAYE owing by S. M. Chan & Partners CA Limited within the timeframe required; and/or

(l) (withdrawn);

(m) (withdrawn);

(n) made an incorrect statement, in that he signed an attestation to the New Zealand Qualifications Authority (NZQA) in respect of School C Limited, 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; and/or

(o) made an incorrect statement, in that he signed an attestation to NZQA in respect of School C Limited, that included a statement that he had no relationship with the establishment 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; and/or

(p) prepared a statement of financial position for School C Limited as at 8 August 2003 that did not correctly present working capital and/or equity; in that:

(i) a bank balance of $88,352.00 in the name of a company director was included as a company asset; and/or

(ii) a shareholders current account balance of $257,104.00 was included as a component of equity; and/or

(q) failed to provide within 14 days information that was required by the professional conduct committee as set out in letters dated 6 November 2006 and 30 November 2006, in breach of Rule 21.4(b); and

in his role as a chartered accountant in public practice and in relation to a complaint, the member:

(r) failed to pay $8,000.00, being the monetary penalty ordered by the disciplinary tribunal on 3 October 2006, to the institute within the specified timeframe; and/or

(s) failed to pay $3,814.00, being costs and expenses ordered by the disciplinary tribunal on 3 October 2006, to the institute within the specified timeframe.