The Institute of Chartered Accountants of Scotland (ICAS) has referred to the Joint Disciplinary Scheme (JDS) issues concerning the results reported in published financial statements of Semple Cochrane plc. Under this JDS, which was set up by ICAS and The Institute of Chartered Accountants of England & Wales, the Institutes are obliged to refer to JDS any case which in their opinion raises issues of public concern. The referral does not imply that the Investigation Committee believes that any ICAS member has become liable to disciplinary action.

The issues raised are complex and access to internal records and other information is essential to an objective assessment. ICAS’ Investigation Committee is of the opinion that these matters and the extent of speculation about Semple Cochrane’s affairs raise issues of public concern and require that a full investigation is carried out.

The case will now be reviewed, and any further action taken, by JDS.

ICAS hopes that the Executive Counsel of JDS, Mr Chris Dickson, will receive the fullest co-operation from those who are able to contribute to JDS’ enquiries, including the company itself and other parties who are not Chartered Accountants.

Since this case is now the subject of investigation by JDS no further comment will be made by ICAS.

Contacts:

Jennifer Stewart Secretary to AS Hunter, Convener, ICAS Investigation Committee, 0141 226 5511
Chris Dickson, The Accountants’ Joint Disciplinary Scheme, 0207 427 1511

Notes to Editors:

1. The Joint Disciplinary Scheme (JDS) provides independent investigation of the work and conduct of chartered accountants (both in public practice and elsewhere) where this has given rise to public concern. Cases are referred to JDS by the participants, The Institute of Chartered Accountants of England and Wales and The Institute of Chartered Accountants of Scotland. Neither participant takes any part in the cases thereafter.

The scheme is administered by an Executive Committee. The Chairman and three non-accountant members are appointed by agreement between the participants, and each participant also employs two of its own members.

Investigations are conducted by the Executive Counsel, a barrister employed by JDS. He is assisted, where necessary, by chartered accountants and other experts and lawyers. Where the Executive Counsel finds work or conduct which has fallen below the standards to be expected of chartered accountants in good standing, he lays complaints before a Joint Disciplinary Tribunal.

A senior lawyer, who is not connected either with the Scheme or with those under inquiry, chairs each Tribunal. He normally sits with two chartered accounts. Appointments to Tribunal are made by the Executive Committee, who act independently of the Executive Counsel.

It is for the Tribunal to decide, on the basis of the evidence presented, whether the Executive Counsel’s complaints have been made out; and if so, what penalty should be imposed. The most serious penalty for an individual is exclusion from the profession and fine; and for a firm, censure and a fine.