An accountant has been severely reprimanded and given a hefty fine after breaching auditing ethical standards.
As detailed in the ICAEW’s May disciplinary report, Mr William Wormald accepted reappointment as auditor, carried out the audit and issued an unqualified audit report.
The committee noted that he was in breach of a number of ethical standards relating to paragraph 24 of APB ES 4, and accordingly in breach of regulation 3.02 of the Audit Regulations and Guidance 2008.
Wormald also failed to identify and assess whether safeguards could be applied to reduce the threat to the firm’s independence arising from the provision of non-audit services and “failed to have any or sufficient regard to APB Ethical Standard 5 paragraph 11 and accordingly was in breach of regulation 3.02 of the Audit Regulations and Guidance 2008.”
Wormald ended up being fined £10,000 and ordered to pay costs of £2,605, as a caution to others.
The Investigation Committee consent order was made on 16 May and is one of six audit-related disciplinary cases featured in the institute’s most recent Disciplinary Orders and Regulatory Decisions.