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INVESTIGATIONS cont.
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 practical
application of International Standards of Auditing is attended by him
and his audit staff within 60 days of the imposition of the sentence,
and must provide evidence of compliance to this to the IRBA.
Matter 8
The respondent breached Section 93(3)(b) of the Companies Act
as the respondent performed non-audit work on an audit client
without obtaining the permission of the audit committee to do so,
as required by the audit committee charter.
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 9
The respondent failed to submit a second Reportable Irregularity
report to the IRBA despite numerous reminders sent to him by the
IRBA.
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, no cost
order and publication by the IRBA in general terms.
Matter 10
This matter was a referral from the Inspections Committee. The
respondent was the auditor of an attorneys trust account and failed
to obtain sufficient appropriate evidence to support the opinion
expressed.
The respondent was sentenced to a fine of R100 000, of which
R50 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. In addition, the
respondent must arrange and ensure that external training on the
audit of attorneys trust accounts is attended by him and his audit
staff within 60 days of the imposition of the sentence, and must
provide evidence of compliance to this to the IRBA.
Matter 11
The matter was a referral from the Inspections Committee. The
respondent failed to appropriately address material differences
calculated in the audit working papers.
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 12
The matter was a referral from the Inspections Committee. Mr
Alphabet Malusi Phaka, the respondent, was the auditor of an
attorneys trust account and failed to modify the assurance report
issued in relation to both the late submission of the audit report to
the Law Society and the non-payment by the client of all relevant
interest to the Fidelity Fund.
The respondent was sentenced to a fine of R100 000, of which
R50 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, the imposition
of a previously suspended fine of R50 000, no cost order and
publication by the IRBA of the respondent’s name, the findings
of the investigation and the sanction imposed. In addition, the
respondent must arrange and ensure that external training on the
audit of attorneys trust accounts is attended by him and his audit
staff within 60 days of the imposition of the sentence, and must
provide evidence of compliance to this to the IRBA.
Matter 13
This matter was a referral from the Inspections Committee.
Mr Roger Brian Reece, the respondent, was the auditor of an
attorneys trust account and failed to obtain sufficient appropriate
evidence to support the opinion expressed in accordance with
ISAE 3000, specifically paragraphs 20, 27, 28, 31-36, 40-47 and
54 as well as the requirements of the Guide for Registered Auditors:
Engagements on Attorneys Trust Accounts (November 2013),
specifically paragraphs 22, 46 and 67.
The respondent was sentenced to a fine of R150 000, of which
R75 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 R20 000, no cost order and
publication by the IRBA of the respondent’s name, the findings of
the investigation and the sanction imposed.
Matter 14
Mr Hayden du Preez, the respondent, failed to report a reportable
irregularity to the IRBA that he became aware of in October 2015,
in relation to his audit client’s failure to prepare annual financial
statements over a number of years.
The respondent was sentenced to a fine of R50 000, of which
R25 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 R100 000, no cost order and
publication by the IRBA of the respondent’s name, the findings of
the investigation and the sanction imposed.
Matter 15
The respondent breached regulation 29(5) of the Companies
Act in that he prepared the financial statements of the clients
that he subsequently carried out an independent review on. The
respondent merged the financial statements of two companies at
the request of a director without ensuring that the merger had been
Issue 42 | April - June 2018
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