At its meeting on 26 October 2007, the Professional Conduct Committee considered the following matters:
- An Associate General Accountant (AGA(SA)) had been charged with holding himself out as a Registered Auditor when not so registered. The associate did not respond to the charge sheet and the matter has been referred to the Disciplinary Committee, with an additional charge of not responding to correspondence.
- Following a referral by the GAAP Monitoring Panel, three members had been charged with numerous contraventions of Statements of Generally Accepted Accounting Practice. The Committee imposed a reprimand, and fines of R50 000 (of which R10 000 was suspended) and R50 000 (of which R25 000 was suspended) respectively.
At its meeting on 26 October 2007, the Professional Conduct Committee (TRECO) considered the following matters:
- A complaint was lodged against Mr JV Nkosi, a trainee, who had resigned, citing full-time study as his reason for resigning. He had undertaken to return to the firm at the end of the year once his studies were completed. On making enquiries at the start of the new year, the firm discovered that a week after resigning, Mr Nkosi had started a new training contract at another firm. During the investigation, it came to the Committee’s attention that Mr Nkosi had subsequently absconded from the second firm, without repaying his study loan and was seeking to enter into a new contract with one of the big 4 firms. These charges were put to Mr Nkosi, but despite his undertakings to respond to the charges, he failed to do so. The Committee therefore agreed that Mr Nkosi was guilty of improper conduct and permission to register a new training contact was refused for a period of 3 years, at which time Mr Nkosi would have to demonstrate to the Committee an understanding and application of the ethical values of the Chartered Accountancy profession before being allowed to enter into a new contract. In addition, Mr Nkosi would not be granted any Recognition for Prior Learning, and he would have to serve the six-month penalty due to the cancellation of his (second) training contract.
- A trainee had resigned after giving the requisite notice in terms of the Basic Conditions of Employment Act. As the employment contract had been terminated, the training contract automatically came to an end in terms of the Training Regulations. A complaint was lodged for breach of contract. The matter was discharged as the trainee’s conduct in resigning was held not to be improper. However, the trainee would have to serve the six-month penalty due to the cancellation of the contract.