IRBA Newsletter Issue 51

Issue 51 | July-September 2020 9 LEGAL DISCIPLINARY COMMITTEE Overview of Matters Referred for Disciplinary Hearings Following the finalisation of one matter, there are 18 open cases that have been referred to the Legal Department for disciplinary hearings. The graphics below outline the nature and status of all matters that have been referred for hearings. Matters Heard by the Committee During the period under review, two matters referred to the Disciplinary Committee were heard and finalised. A sanction ruling was issued by the committee in respect of one matter, while the other matter is awaiting the committee’s ruling. Below is a synopsis of the matter in respect of which the committee issued a ruling. IRBA vs MW Dondashe Mr Wakeford Mzolisi Dondashe, the respondent who is also a registered auditor, was charged with nine charges of improper conduct, following an investigation by the IRBA. The charges against the respondent emanated from a complaint received from the Cape Law Society, in relation to audit work performed in respect to six attorney trust accounts. The nature of the charges against the respondent can be summarised as follows: 1. Failure to respond to correspondence from the Cape Law Society; 2. Failure to disclose assurance work clients to the IRBA; 3. Failure to retain working papers in relation to audits performed; 4. Failure to adequately plan for an audit, obtain appropriate audit evidence and qualify audit opinions issued in circumstances where a qualified opinion was warranted due to the following: a. Incorrect trust credit balance; b. Unsubstantiated/incorrect cash on hand; c. Incorrect interest reconciliation; and d. Trust account debit balances. The respondent’s conduct, as outlined above, contravened Rules 2.1, 2.4, 2.5, 2.6, 2.7 and 2.12 of the Rules Regarding Improper Conduct. The respondent pleaded guilty to all charges. In light of a plea of guilt, the matter was referred for a sanction hearing before the Disciplinary Committee, in terms of Section 51 of the Auditing Profession Act (APA), read together with Rule 7 of the Disciplinary Rules. The hearing convened on the 27 th and 28 th of August 2020, wherein the parties were given an opportunity to submit evidence in mitigation and aggravation of the sanction. The respondent raised three preliminary points, alleging that he was not timeously advised of his rights to legal representation; that the charge sheet did not disclose provisions relevant to the sanction; and that the document, on the basis of which the Director Legal found him guilty, did not constitute a plea in law. He then requested the committee to declare the proceedings null and void. After hearing arguments, the committee dismissed all the preliminary points on the basis that: