IRBA Newsletter Issue 49

Issue 49 | January - March 2020 8 LEGAL DISCIPLINARY COMMITTEE Overview of Matters Referred for Disciplinary Hearings Following the finalisation of one matter, there are 15 open cases that have been referred to the Legal Department for disciplinary hearings. The graphics below outline the nature and status of all matters referred for a hearing. Closed Matters During the period under review, one matter referred to the Legal Department for a disciplinary hearing was closed. This followed the respondent’s acceptance of a consent order originally recommended by the Investigating Committee in August 2016, and the Disciplinary Advisory Committee’s (DAC) agreement to rescind its decision taken in November 2016 to refer the matter for a disciplinary hearing. Matter 1 The respondent was engaged to prepare annual financial statements for a client. There were certain material liabilities that were disputed by the client. Despite being aware of the disputed amounts, the respondent failed to disclose these amounts, as required by IFRS for SMEs. The respondent was sentenced to a fine of R50 000, of which R25 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. The payment of the fine has been suspended until such time that the respondent re- registers with the IRBA. Matters Heard by the Committee Sharemax The Disciplinary Committee convened on the 16 March 2020 to consider charges of improper conduct brought against the then partners of ACT Audit Solutions in relation to professional services rendered to Sharemax. The hearing was subsequently adjourned to enable the IRBA to bring an application for the postponement of the proceedings. The application was necessitated by the state of national disaster declared by the President of the Republic, pursuant to the COVID-19 pandemic. In its application, the IRBA cited the need to comply with the IRBA’s own COVID-19 Safety Protocol and government directive relating to social distancing and self-isolation to minimise community transmissions of the virus. The application was duly filed by the 20 March 2020 and was not opposed by the respondents. On 23 March 2020, the Disciplinary Committee considered the application and issued a ruling postponing the proceedings to 5 October 2020, up to and including 23 October 2020. In line with the committee directive, the parties must file pre-hearing minutes, witness lists, a witness timetable, witness statements and experts’ joint minutes, at least six weeks before the hearing date . The hearing will accordingly reconvene on 5 October 2020. REPORTABLE IRREGULARITIES (RIs) The IRBA processed 487 first reports on RIs during both the third and fourth quarters that ended on 31 March 2020. During this reporting period, 510 second reports were received and their nature is highlighted in the graphic below. Note: The difference of 23 reports between the first and second reports received is due to timing differences in reporting between the first and second reports. The nature of the 378 continuing RIs has been categorised and reflected in the chart below.