Professional Conduct Committee Findings

The Professional Conduct Committee of the Chartered Accountants Australia New Zealand (CA ANZ) has published its findings in relation to Richard Owen Dey and Michael Derek Wood.

The FMA referred the conduct of the audit firm involved, Ingham Mora, to CA ANZ in December 2017.

The referral followed an audit quality review that identified a compliance breach in relation to the mandatory rotation of the key audit engagement partner after 7 years.

The FMA considers that continuing engagements after 7 years is unacceptable, considering those auditors who do comply with the mandatory rotation requirements set out in the Professional and Ethical Standards. The FMA therefore referred this matter to CA ANZ’s Professional Conduct Committee.

CA ANZ’s Professional Conduct Committee agreed with our findings. A copy of the decisions from the PCC can be found here.

The final determination of the PCC provides further clarification to the Professional and Ethical Standards when it comes to mandatory auditor rotation. The FMA recommends auditors take note of the PCC findings.

Notes

NZICA, (now CAANZ) as an accredited body, is responsible for taking appropriate action against misconduct by licensed auditors.

As part of the FMA’s ongoing monitoring of audit quality detailed in our annual report the FMA may refer matters to the Professional Conduct Committee (PCC) that assess each matter.

After assessing the matter, the PCC may refer these matters to the Disciplinary Tribunal. In certain cases it can also reach its own conclusions.

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