Accountant gets three year ban over audit failures 

A tribunal has excluded an ICAEW member from membership of the profession for three years following a Financial Reporting Council (FRC) investigation over audit failures.

The accountant, Paul Newsham was a former partner, Sixthreeone Limited (formerly known as HWCA), which has also been fined £225,000 plus £225,000 in costs over failures in the audit of heating, ventilation and air conditioning group Worthington Nicholls Group (NRG).

The outcome of a tribunal made 35 findings of misconduct against Newsham and found his conduct fell short of the standards reasonably to be expected of a member of the ICAEW in his failure to act with professional competence and due care.

Paul George, FRC executive director of conduct commented that it was essential that investors in smaller listed and AIM companies are able to rely upon the audited accounts of such companies in informing their investment decisions.

“In this case breaches of auditing standards of fundamental importance, in particular in relation to the audit of the accounting for revenue and costs on long term contracts, had a real impact on the reliability of the financial statements at a critical stage of the company’s history, and on investors’ decisions.

“As the UK’s lead audit regulator, these outcomes demonstrate the FRC’s commitment to upholding the rigorous application of auditing standards and ensuring public and market confidence in the standards of professional practice,” he said.

 

Source: accountingweb- Accountant gets three year ban over audit failures

---