Firms fined for audit independence breaches
Two accountancy firms have fallen foul of the ICAEW audit independence and ethics rules, according to this month's disciplinary report.
BDO and KJ Pittalis & Co were both reprimanded and fined under rules for breaching two different sets of rules for having a financial interest in the company their firms were auditing.
In BDO's case, tax partner John Wilmott held over 45,000 shares in an unnamed company his firm was auditing, contrary to ICAEW’s Ethical Standard 2.
The firm was reprimanded by the disciplinary and fined £5,470 and ordered to pay £4,462 in costs.
The north London firm KJ Pittalis & Co, was reprimanded and fined £7,000 with £3,937 costs for the similar offence of issuing an audit report for a company in which a member of staff had a direct financial interest.