Who do I report to if anyone?

Who do I report to if anyone?

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I have recently been asked to review some Sage accounting records prepared by a Clubs treasurer who is also the 'accountant'. I use that word loosely as this person has no accounting qualifications. It has come to light that the said person has had, in his words, an 'unauthorised' loan amount of around £60,000. This money was disclosed in his accounting records as money used to pay PAYE and VAT. With regards to the treasurer, he is soon to be interviewed by the police under caution once they are happy they have sufficient evidence. Therefore I believe he will get treated the correct way. My concern is with regards to the Chartered Accountant firm that have signed the accountants report of accounts which contain this error in addition the balance sheet showed a cash in hand figure of £23,000, which is overstated by £22,000. The said member who is registered with ICAEW, is not available to speak with me until the 15th October. Do I hang on and wait for him to tell me the evidence/records he used in signing the report, or do I have a duty to report the matter to SOCA immediately? Any help/thoughts would be gratefully received from the wise ones!

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By Chris Smail
20th Sep 2012 17:23

I think you have to report to SOCA immediatley.

Unless this knowledge came to your attention in a private capacity

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David Winch
By David Winch
20th Sep 2012 18:05

Whoa

Samantha

Are you yourself in business in the 'regulated sector' and therefore subject to the Money Laundering Regulations 2007 (for example are you in an accountants' firm)?

If not then you have no obligation to report your suspicions to SOCA or anyone else (if you are in England & Wales and are not yourself engaged in money laundering).

In any event since the police are already aware of the situation I would advise that you wait until you have communicated with the accountant in question before making a report (as a delay in your submitting a report will not prejudice any investigations).

It seems to me that your reportable suspicion of criminal conduct would relate to the treasurer (not the accountant with whom you wish to speak).

You may also have a concern that the accountant has been incompetent or negligent which is a matter you might (in due course) wish to report to ICAEW - but their first question to you is likely to be, "Have you discussed this with, or corresponded with, the accountant and what explanation did he give?".

Also there may be an issue as to whether the organisation can sue the accountant in connection with any loss they ultimately suffer.  But that would depend on a number of issues.

David

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By Oldmanwetmix
25th Oct 2012 14:23

SOCA Report

My experience of SOCA has recently been that it was a waste of time. I was asked to visit a business whose manager had resigned suddenly. The client could not access the accounting records, or even their own bank account. Having got them out of a hole, I discovered that the person had paid themselves additional payments of £50k in the previous year, having posted them as repairs, other peoples salary and pension contributions, etc. Initially the client was too embarrassed to go to the authorities, so I contacted SOCA as I knew how much had been stolen, and who had stolen it.

SOCA were not interested and told me not to file a report and would not even give me a reference so I could prove I had contacted them.

I'd like to know what they would be interested in, and why we are wasting our time worrying about disclosure.

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David Winch
By David Winch
25th Oct 2012 16:21

File a report online

I would suggest you file a report online (the system will automatically email an acknowledgement with a reference number).

You have a statutory obligation to file a report (and the acknowledgement will prove you have done so).

Do make it clear in the report that you suspect dishonesty (not mere administrative error) which has resulted in a financial benefit being obtained by the suspected person.

If you want to be technical you suspect theft (s1 Theft Act 1968) and false accounting (s17 Theft Act 1968) and use of 'criminal property' (the stolen money) by the suspected individual (s329 Proceeds of Crime Act 2002).

David

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