RegulationAccounting StandardsFirm fined as principal was director of audit client

Firm fined as principal was director of audit client

North London firm SPW enters consent order with ICAEW investigations committee as one of its principals was a director of an audit client

NORTH LONDON FIRM SPW has been fined £5,000 and ordered to pay costs of £1,880 for auditing a firm in which one of its principals was a director.

The firm entered into a consent order with the ICAEW’s investigation committee after it was found that three audit reports, for 2003, 2004 and 2005 year-ends of SPW client ‘A Limited’ were made while a principal of the firm served at the client as a director.

The six-partner firm, based on Regents Park Road, was in the public eye in 2010 as its partners served as joint administrators of collapsed foreign currency handler Crown Currency Exchange. A joint liquidator from SPW now serves alongside partners from Duff & Phelps at Crown Currency.

Also in the latest round of disciplinary procedures announced by the institute, Warwick-based Michael Harwood & Co agreed to a consent order in which it was fined £5,000 and ordered to pay costs of £4,367. The order was made for issuing an unqualified audit report on a business of which risks were identified that cast significant doubt on the client’s ability to continue as a going concern.

Swansea firm Bevan & Buckland was fined £15,000 and ordered to pay costs of £4,155 for failing to modify its audit reports over a five-year period for client ‘X’, to reflect that the financial statements failed to give a true and fair view of ‘X’. It also failed to qualify the audit reports of ‘X’ between 2002 and 2005.

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