Defending Accountants and Accountancy Firms

Financial Reporting Council (FRC)

FRC disciplinary proceedings can be daunting and complicated.  Our Frequently Asked Questions on the Accountancy Scheme and the Audit Enforcement Procedure provide some guidance.  Please also contact us for more tailored advice.

We have significant experience in FRC investigations, having historically advised the FRC on cases brought under its Accountancy Scheme.  We now exclusively act on behalf of firms and individuals regulated by the FRC.  We use our acquired knowledge to provide high quality advice on a range of issues surrounding FRC regulation, including:

• how to respond to an adverse FRC Audit Quality Review (AQR) outcome;
• proceedings brought by the FRC under its Audit Enforcement Procedure (AEP);
• proceedings brought by the FRC under its Accountancy Scheme;
• responding to formal requests for information;
• entering into ‘Constructive Engagement’ under the AEP;
• preparing for and representation at an FRC interview;
• responding to an Investigation Report;
• negotiating an FRC settlement;
• responding to a proposed Formal Complaint;
• preparation for and representation at an FRC disciplinary tribunal panel hearing;
• publicity that may arise from FRC proceedings.

Institute of Chartered Accountants in England and Wales (ICAEW), Association of Certified Chartered Accountants (ACCA) or Institute of chartered accountants of Scotland (ICAS)

Our answers to Frequently Asked Questions provide guidance on ICAEW and ACCA processes.  For more detailed and tailored advice, please contact us.

The ICAEW, ACCA and ICAS’s supervision of firms can cause anxiety for accountants and auditors.  For audit firms, an adverse outcome from a Quality Assurance Department (QAD) or Practice Monitoring Directorate (PMD) visit can lead to increased scrutiny of a firm’s practices.  In more complex cases, it can lead to a referral through the regulator’s disciplinary process.  A complaint against a firm from an aggrieved party can lead to an intensive investigation by the ICAEW, ACCA or ICAS investigation, leading to resourcing, financial and emotional pressures.

Our expert lawyers can guide the firm through the complexities of the investigation process.  We can seek to avoid disciplinary action by the regulator through early intervention, or provide targeted advice to the firm to assist it in defending whatever allegations it faces.  We provide advice on the following types of issues:

• dealing with the ICAEW or ACCA during QAD or PMD visits, especially where the firm has some concerns about the potential outcome of the review;
• dealing with an ICAEW disciplinary investigation or ACCA disciplinary investigation, should the ICAEW or ACCA conclude that the work  reviewed during the QAD/ PMD visit is not satisfactory;
• responding to complaint letters brought by clients, to seek to avoid them making an unmerited complaint to the firms regulator; or assisting the firm in determining whether a disclosure to the regulator is necessary in the circumstances;
• responding to all correspondence from the ICAEW, ACCA or ICAS, during the course of a disciplinary investigation under the regulator’s bye-laws, including information requests;
• preparing detailed responses to Investigation Reports to seek to secure a dismissal of a case, or a minor sanction, including a Consent Order, at the Investigation Committee stage;
• preparation for an ACCA, ICAEW or ICAS disciplinary hearing before a Disciplinary Committee, including providing guidance for witnesses, drafting technical legal arguments, analysing and constructing a defence case, carrying out advocacy and providing advice on the merits of success;
• whether you should appeal a case to the Appeal Committee, drafting of legal arguments and advice on procedure;
• the circumstances under which a case should proceed under the Fitness Committee Regulations.

Under the bye-laws of the ICAEW, ACCA, ICAS, CIMA and CIPFA,  regulated accountants have a duty to report other members if they believe that an act/ omission may amount to misconduct.  A failure to do so may amount to misconduct in itself.  You can find some guidance on a member’s duties here.  Please contact us for bespoke advice if you have any further questions. 

Financial Reporting Council (FRC)

FRC proceedings can be daunting and complicated.  Our Frequently Asked Questions on the Accountancy Scheme and Audit Enforcement Procedure may provide some guidance.  Please also contact us for more tailored advice.

We have significant experience in FRC investigations, having historically advised the FRC on cases brought under its Accountancy Scheme.  We now exclusively act on behalf of firms and individuals regulated by the FRC.  We use our acquired knowledge to provide high quality advice on a range of issues surrounding FRC regulation, including:

• how to respond to an adverse Audit Quality Review (AQR) outcome;
• proceedings brought by the FRC under its Audit Enforcement Procedure (AEP);
• proceedings brought by the FRC under its Accountancy Scheme;
• responding to formal requests for information;
• entering into ‘Constructive Engagement’ under the AEP;
• preparing for and representation at an FRC interview;
• responding to an Investigation Report;
• negotiating an FRC settlement;
• responding to a proposed Formal Complaint;
• preparation for and representation at an FRC disciplinary tribunal panel hearing;
• publicity that may arise from FRC proceedings.

Institute of Chartered Accountants in England and Wales (ICAEW); Association of Certified Chartered Accountants (ACCA); institute of chartered accountants of Scotland (ICAS); Chartered Institute of Public Finance and Accountancy (CIPFA); and Chartered Institute of Management Accountants (CIMA)

Our answers to Frequently Asked Questions provide overarching guidance on the regulatory regimes in place, and the process of a disciplinary investigation.  For more detailed and tailored advice, please contact us.

We have significant experience of defending accountants, auditors and insolvency practitioners before all of the UK accountancy regulatory bodies.  We provide advice on all issues from the notification of a complaint to the final Disciplinary Committee hearing.  Examples of the types of issues we advise on include:

• self-reporting obligations, when a member may have committed misconduct, and how best to make any relevant disclosures;
• obligations to report other members where there is a suspicion of misconduct;
• responding to preliminary correspondence from the regulator, with a view to bringing a spurious or vexatious complaint to a close;
• responding to all correspondence from the regulator during the course of a disciplinary investigation under its bye-laws, including information requests;
• preparing detailed responses to Investigation Reports to seek to secure a dismissal of a case, or a minor sanction at the Investigation Committee stage;
• preparation for a disciplinary tribunal, including guidance for witnesses, drafting technical legal arguments, analysing and constructing a defence case, carrying out advocacy and providing advice on the merits of success;
• whether to appeal to an Appeal Committee, advice on the merits of success and the drafting of legal arguments;
• the circumstances under which a case should proceed under the Fitness Committee regulations.

Under the bye-laws of the ICAEW, ACCA, ICAS, CIMA and CIPFA,  regulated accountants have a duty to report other members if they believe that an act/ omission may amount to misconduct.  A failure to do so may amount to misconduct in itself.  You can find some guidance on a member’s duties here.  Please contact us for bespoke advice if you have any further questions.