Following a disciplinary investigation, the Financial Reporting Council (FRC) imposed a £35,625 fine and a ten-year ban on Philip James, the former finance director of technology distributor Computer 2000.
As the FD responsible for the financial statements of Tech Data Ltd (formerly Computer 2000) in the years ending 31 January 2012 and 2013, James admitted 12 allegations that his conduct fell significantly short of the standards reasonably to be expected of a member of the Association of Chartered Certified Accountants (ACCA).
The disciplinary investigation was launched in February 2014 after Computer 2000’s US parent company Tech Data restated its profits for the previous three years by $27m. An internal investigation identified control deficiencies, but the UK regulator wanted to dig deeper into the actions of qualified accountants in the local subsidiary, and EY as the auditor of its parent company.
Having admitted the complaints put to him, James agreed a settlement with the FRC that included:
- Exclusion from the ACCA for a recommended period of 10 years; and
- A £100,000 fine reduced to £35,625 to reflect mitigating factors, James’s financial resources, and a discount for settling the complaints without a full hearing.
The FRC statement included no further details about the Tech Data investigation, which continues in relation to the audit work of EY.
About John Stokdyk
John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.