Second accounting firm in the gun

Another accounting firm faces disciplinary proceedings as the Institute of Chartered Accountants goes on the warpath following the failure of several finance companies.

A notice on the institute’s website says its Disciplinary Tribunal will be hearing charges against a member commencing on 28 July 2008.

“The charges relate to misconduct in a professional capacity, conduct unbecoming an accountant, negligence or incompetence in a professional capacity, breaches of the Institute’s Rules and/or Code of Ethics and failing to respond to the Institute.”

The hearing will be held in public and open to the news media unless the Disciplinary Tribunal orders otherwise.

The hearing follows last month’s censure and fine of the auditors of National Finance 2000, the first of many finance companies forced into receivership.

Chartered accountants Michael Wood and Bruce Mincham, of O'Halloran & Co, pleaded guilty to breaching the institute's code of ethics in their audit of National Finance's 2005-year financial statements.

The breach included failing to corroborate information from the company's management about its registered securities, making inaccurate statements in their auditors' report, and not reporting breaches of the trust deed.

The disciplinary tribunal ordered Mr Mincham and Mr Wood to each pay half of the $133,374 costs sought by the professional conduct committee, and officially censured the pair.

http://www.nbr.co.nz/article/second-accounting-firm-gun-32895

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Second accounting firm in the gun