PwC and ex RSM Tenon chief face complaints from the FRC 

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The Financial Reporting Council’s (FRC) Executive Counsel has delivered a disciplinary Formal Complaint in connection with the conduct of PricewaterhouseCoopers LLP (PwC), Nicholas Boden (PwC’s Senior Statutory Auditor and Audit Engagement Partner) and Russell McBurnie (RSM Tenon Group plc’s (RSM Tenon) former Finance Director) in relation to the preparation, approval and audit of the financial statements of RSM Tenon for the year ended 30 June 2011.

The Complaint alleges that Mr Boden and PwC failed to act in accordance with the fundamental principle of professional competence and due care contained in the ICAEW Code of Ethics (the Code) in relation to the audit of the financial statements of RSM Tenon, and that their conduct fell significantly short of the standards reasonably to be expected of a member or member firm of the ICAEW.

The Complaint further alleges that Mr McBurnie failed to act in accordance with the fundamental principles of integrity and professional competence and due care contained in the Code in relation to the preparation and approval of the financial statements of RSM Tenon, and that his conduct fell significantly short of the standards reasonably to be expected of a member of the ICAEW.

The respondents are members and a member firm of the ICAEW.

Following an admission of Misconduct by Andrew Raynor (RSM Tenon’s former Chief Executive Officer) the Executive Counsel has also agreed a settlement, which has been approved by a legal member of the independent Tribunal Panel. Mr Raynor has admitted that his conduct fell significantly short of the standards reasonably to be expected of a member of the ICAEW in relation to the approval of the financial statements of RSM Tenon and that he failed to act in accordance with the fundamental principle of professional competence and due care contained in the Code.  Mr Raynor admitted that he failed to obtain the necessary level of assurance required of a Member, in relation to the accounting treatment of bonus accruals and a lease, to sign off on the financial statements of RSM Tenon on the basis that they were in accordance with applicable accounting standards and represented a true and fair view of the state of affairs of the company.

The Executive Counsel and Mr Raynor agreed the following terms of settlement:

  • A fine of £40,000 reduced to £26,500 after mitigation and a settlement discount;
  • A Reprimand;
  • A sum of £50,000 to be paid by Mr Raynor as a contribution to the Executive Counsel’s costs.

Source: FRC

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