The Chartered Accountants Regulatory Board (CARB) has recently issued guidance in respect of Bye-law 5.5. This new Bye-law was approved at a Special General Meeting in September 2009 although it was not commenced at that time or since, however it is anticipated that it will be commenced later this year on 1 December. The Guidance received approval of the CARB Board on the 28 June 2011.
This new Bye-law requires all members, including those who are members in business, to make a report to CARB where they know or suspect that another member would be liable to have disciplinary action taken against them, where that action would be in the public interest and covers activities or actions by a member or members which would bring discredit to either the Institute or the profession.
Bye-law 5.5 will be applied to members, member firms, affiliates and students. In particular offences which involve dishonesty, fraud or cheating, or an offence under legislation which would result in a custodial sentence must be reported to CARB.
The implication when this Bye-law is effected is that members have a ‘duty’ to report the actions of others to the Head of Professional Conduct.
Bye-law 5.5 Guidance indicates that a member must have more than just a suspicion to make a report, however it will not be the responsibility of the member making the report to either conclude that the member, firm, affiliate or student has behaved in a manner to bring discredit, nor are they required to carry out any type of investigation, rather they must simply report the facts or information that they have first hand. Reports must be made in writing.
Furthermore members should be aware that if it comes to light that they have failed to report information that they are aware of, within the requirements of Bye-law 5.5 they may find themselves facing disciplinary action.
In addition members should also be aware that the reporting member may well be called to provide evidence during the disciplinary proceedings as part of the process.
Michelle Kane
OmniPro,
Block D, Iveagh Court,
Harcourt Road,
Dublin 2.
mkane@omnipro.ie
www.omnipro.ie
www.MichelleonLinkedIn.com
