107672 IRBA NEWSLETTER

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duly approved in the manner required by the agreement between
the shareholders and the financier, and assessing whether the
requirements of the Companies Act pertaining to mergers had
been complied with.
The respondent was sentenced to a fine of R100 000, of which
R50 000 has been suspended for five years on condition that the
respondent is not found guilty of unprofessional conduct relating
to work done during the period of suspension, no cost order and
publication by the IRBA in general terms. In addition, the respondent
must arrange and ensure that external training on the performance
of independent reviews is attended by him and his staff within 60
days of the imposition of the sentence, and must provide evidence
of compliance to this to the IRBA.
Matter 16
The respondent failed to detect trust account shortages shortages
in the bank account over a number of reporting periods that the
respondent was engaged to audit and issued unmodified assurance
reports in relation to these periods, which were not appropriate in
the circumstances.
The respondent was sentenced to a fine of R100 000, of which
R50 000 has been suspended for five years on condition that the
respondent is not found guilty of unprofessional conduct relating
to work done during the period of suspension, no cost order and
publication by the IRBA in general terms.
Matter 17
The respondent failed to resign from a professional appointment
when requested to do so by the client. The respondent also failed
to timeously transfer documentation and the SARS e-filing profile of
the client to the new accountant.
The respondent was sentenced to a fine of R30 000, of which
R15 000 has been suspended for five years on condition that the
respondent is not found guilty of unprofessional conduct relating
to work done during the period of suspension, no cost order and
publication by the IRBA in general terms.
Matter 18
Mr Deon Jacques van Schalkwyk, the respondent, failed to carry
out his mandate in terms of tax work required by his client, despite
numerous requests by the client to do so. He further failed to
respond to requests for information from the new accountant and
to numerous requests from the IRBA in relation to this complaint.
The respondent was sentenced to a fine of R80 000, of which
R40 000 has been suspended for five years on condition that the
respondent is not found guilty of unprofessional conduct relating
to work done during the period of suspension, the imposition
of a previously suspended fine of R30 000, no cost order and
publication by the IRBA of the respondent’s name, the findings of
the investigation and the sanction imposed.
Matter 19
The respondent failed to comply with a Promotion of Access to
Information request.
The respondent was sentenced to a fine of R20 000, of which
R10 000 has been suspended for three years on condition that
the respondent is not found guilty of unprofessional conduct
relating to work done during the period of suspension, a cost
order of R5 000 and publication by the IRBA in general terms.
Matter 20
This matter was a referral from the Inspections Committee. The
respondent provided a client with both audit and accounting
services thereby contravening Section 90(2) of the Companies Act.
The respondent was sentenced to a fine of R80 000, of which
R40 000 has been suspended for three years on condition that
the respondent is not found guilty of unprofessional conduct
relating to work done during the period of suspension, no cost
order and publication by the IRBA in general terms.
Matter 21
This matter was a referral from the Inspections Committee. The
respondent’s audit client did not prepare consolidated annual
financial statements even though they did not meet the IFRS 10,
paragraph 4, exemption criteria. The respondent did not modify
the audit report based on the non-compliance with IFRS 10 and
therefore an inappropriate audit opinion was expressed.
The respondent was sentenced to a fine of R150 000, of which
R100 000 has been suspended for three years on condition that
the respondent is not found guilty of unprofessional conduct relating
to work done during the period of suspension, no cost order and
publication by the IRBA in general terms.
Decision to charge and matters referred for a
disciplinary hearing
One matter was referred to the Legal Department for a disciplinary
hearing.
INVESTIGATIONS cont.
Jillian Bailey
Director Investigations
Telephone: (087) 940-8800
E-mail:
Issue 42 | April - June 2018 10