This episode of the FM podcast is the continuation of an occasional series on the show called Beyond the Code.
That means taking a detailed look at part of the CIMA Code of Ethics.
Xose Lumor, manager–Advocacy and Professional Ethics, discusses details with Monique Samuel, associate manager–Professional Conduct, on how members can properly handle official complaints and what they should know about the process if a complaint moves forward.
Resources mentioned in this episode include:
- A downloadable ethics checklist.
- CIMA Member in Practice Rules.
- A summary page on CIMA’s approach to potential sanctions.
What you’ll learn from this episode:
- An introduction of the topic and a refresher on the Beyond the Code series.
- Why members in practice should maintain communication with a client that has raised an official complaint.
- An explanation of resources, including an ethics checklist that can help members deal with ethical dilemmas.
- Samuel’s summary of the process after an ethics complaint is referred to the Disciplinary Committee.
- A reminder that such complaints are rare.
Play the episode below or read the edited transcript:
— To comment on this episode or to suggest an idea for another episode, contact Neil Amato at Neil.Amato@aicpa-cima.com.
Transcript
Neil Amato: Welcome back to another episode of the FM podcast. This is Neil Amato. Today’s episode is a conversation that continues an occasional series on the show. The series is called Beyond the Code, and its focus is the CIMA Code of Ethics.
The discussion in this episode is hosted by Xose Lumor, manager–Advocacy and Professional Ethics at the Association of International Certified Professional Accountants. He’s speaking with Monique Samuel, associate manager–Professional Conduct. On the FM page for this episode, we’ll include resources with more information. Thanks again for listening. Here’s Xose Lumor to start the conversation.
Xose Lumor: Hi there. My name is Xose Lumor, and I’m here to talk to you about an ongoing series entitled Beyond the Code. It’s a series that will look to explore issues of ethics and professional conduct in relation to the accounting profession. The goal here is to explore some of the nuances surrounding important discussions, such as, what is misconduct, or what is the impact of trust on the perception of the profession?
We’ll be exploring a range of issues with the aim of helping CIMA members unpack complex ethical issues to help them better navigate the day-to-day challenges of the profession. In this episode, I’ll be speaking with Monique Samuel, who is our associate manager–Professional Conduct.
She’s part of the team who manages professional conduct cases in the relatively rare instances where CIMA members and registered students are alleged to have breached the laws of the Institute, including the CIMA Code of Ethics. Her years of experience put her in a unique position to be able to provide insights into the ethical considerations of complaints handling.
Now I will say that what is said in this episode is not meant to be taken as advice, and the insights provided are here for illustrative purposes only. While CIMA’s Professional Conduct team [is] available to provide information about CIMA’s conduct process should you need it, if you or someone you know should need advice on a conduct issue, then it may be prudent to seek independent legal advice. With that being said, let’s take a listen and head Beyond the Code.
Welcome, Monique.
Monique Samuel: Hi, Xose. Thanks for having me.
Lumor: Monique, can you tell us a little bit about your role here at CIMA as part of the conduct team?
Samuel: I work in the Professional Conduct team, and I investigate complaints against CIMA students and CIMA members. Where a client or organisation has a concern about a CIMA student or member, they will often contact the Professional Conduct team to proceed with a formal complaint. If the complaint is within our scope to investigate, that complaint will then be allocated to me.
I see a wide variety of complaints that come in, some of them against senior members in practice. These are members who provide accounting services directly to members of the public. Due to my experience of these types of complaints, I therefore see a lot of things that members do and what they don’t do.
Lumor: As a starting point, in terms of complaints against members in practice, how do most complaints originate?
Samuel: From my experience, when it comes to complaints made against members in practice, I would say that most clients will initially raise their complaint directly with the member first, but if a client does not feel that the member has addressed their concern adequately or is perhaps taking too long to respond to them, the client may then decide to refer the matter to CIMA.
Occasionally, we find an individual will make a complaint without first engaging with the member about their concerns. We sometimes find that once the member has been notified of the complaint, the issue raised can be resolved. We found that this can lead to the complainant withdrawing the complaint depending on the seriousness of the issues raised. CIMA can, however, still investigate the matter. Even if the complainant has decided they no longer wish to pursue the complaint, CIMA will continue to investigate where there is a public interest in doing so.
Lumor: That’s good to know. What would you say are some of the most common complaints members in practice receive?
Samuel: I would say that the most common issue is related to the submission of accounts. Complaints can arise from the late submission of accounts by a member, and this is understandable, as late submissions of accounts often result in late filing fees. Naturally, clients expect a member who they have engaged to work on their accounts to ensure that they are submitted on time.
When this doesn’t happen, it can cause problems, because nobody wants a fine that could have been avoided. Another common concern is the accuracy of accounts submitted by a member. The client should be sent draft accounts prior to submission by the member. The client can then highlight any inaccuracies that they notice. The failure to send draft accounts can therefore lead to a submission of inaccurate accounts, as can the failure to highlight relevant queries within the draft accounts. This can lead to clients approving inaccurate accounts.
Lumor: With that being said, are there any other issues or common issues that you find?
Samuel: I would say another common issue is incorrect advice given by a member. A new accountant may draw their client’s attention to the inaccurate advice given by the member and any potential negative effects this may have.
Members in practice may also receive complaints about professional clearance. This is where the client feels that the member is not responding to their request for all the relevant documents following the end of an engagement or providing them with all the relevant documentation.
Both clients and members in practice alike may find it useful to familiarise themselves with CIMA’s withheld documents guidance. This provides information on the ownership of documents and detailed guidance on when documents can be retained by a member and when they should be returned.
Lumor: Now I suppose this would be a good time to point out that CIMA receives a very small number of complaints about its members, and even fewer result in a referral to an Investigation Committee or warrant a full Disciplinary Committee hearing, but, of those very small numbers that do go on to be considered by the Disciplinary Committee, what would you say are some of the common mistakes those members make or the themes of those complaints?
Samuel: The Indicative Sanctions Guidance and the annex are two useful documents for members who are the subject of complaints. These are public documents and are available on our website. The documents outline the different categories of complaints, the range of sanctions which can be imposed, as well as the outcomes and sanctions that have been given in previous cases.
Lumor: Can you tell us a bit more about that?
Samuel: Of course. The Indicative Sanctions Guidance is helpful to members who are subject to a CIMA investigation and who want to know CIMA’s approach to sanctions and the types of sanctions that committees can issue.
The annex to the Indicative Sanctions Guidance is especially useful because members can see the different complaints that have been considered, as well as the sanctions issued at the Investigation Committee and the Disciplinary Committee stage of previous years. It’s also updated on a regular basis.
In the annex, we can find complaints that fall under failure to act professionally as a member in practice. Examples are the submission of incomplete or inaccurate accounts, the failure to submit accounts at all for a client, or repeatedly missing deadlines to submit accounts, as well as making misleading statements when preparing accounts.
There are also general themes around a member’s failure to exercise professional competence and due care. The sanctions given in these cases range from a reprimand to expulsion as well as any fines and costs ordered by the committee.
Lumor: Let’s say a member gets a complaint from a client. What are some of the things for the member to consider?
Samuel: First of all, it’s important that members in practice have a complaint handling policy. This is something they should already have in place. The Member in Practice Rules state that members need to ensure they make provision for complaints handling procedures.
Assuming there is a policy in place, members should promptly acknowledge the complaint and ensure that the client is aware of the timeframes and process that will be followed. It may seem obvious, but it’s important to address all the concerns raised by the client when responding to their complaints, even if the client has misunderstood something, or the issue cannot be resolved in the way the client likes.
Lumor: What could result in complaints going further, in your experience?
Samuel: Sometimes members can be dismissive of the complaint before it has gone through the complaints process. This can lead to frustration for the client. Members should not tell clients to [raise] further complaint to CIMA if they have not first attempted to address the issues raised. It’s also important that members remain professional in their correspondence at all times.
Lumor: Are there any useful resources members can use to help them when considering how to deal with a dilemma or a complaint from a client?
Samuel: Yes. CIMA has an ethics checklist, which is published online. It’s a multifunction document that can be used as a tool for ethical dilemmas that members may face and may also be helpful when dealing with client complaints.
Lumor: What would you say to those members about the importance of having such a framework?
Samuel: The ethics checklist can help to ensure a member has taken all the necessary steps required when dealing with a complaint. This includes necessary considerations, such as following the Code of Ethics, thinking about reputational risk, adherence to company policies, and just ensuring that they are comfortable proceeding at each stage. It’s a useful tool to help members stop, think, and act at each stage.
Lumor: Now, obviously, complaints and disputes can be incredibly stressful. We certainly appreciate that. What would you say are some of the things for members to consider if they are having a difficult time dealing with a complaint or a dispute?
Samuel: I would say try to stay calm, talk to your colleagues, and see if they’re able to help you. You should also review the Code of Ethics and the Member in Practice Rules, if relevant, and if you are in a position to do so, seek legal advice, either directly or through your professional indemnity insurance.
Lumor: Now it must be said that, occasionally, CIMA does get more serious complaints. And when that happens, as infrequent as it is, those cases can be referred to a CIMA Disciplinary Committee. Can you tell us a little bit about that process?
Samuel: Sure. When the case is referred to the Investigation Committee, they decide whether the case is a prima facie case. In other words, whether based on the evidence before them, misconduct could be proved. This is a first-stage committee, and all cases are considered on the papers alone.
For the more serious offences, the panel may choose to refer the matter to a Disciplinary Committee for a disciplinary hearing or meeting. The committee consists of three individuals, one chair, one lay, and one CIMA member. The hearings are usually public, but sometimes the decision is taken to hear the case in private on the papers. The test at the Disciplinary Committee stage is on the balance of probabilities, and the burden of proof is on CIMA.
The panel is supported by a legal assessor throughout the process who provides legal advice during the proceedings. The committee considers the case and makes a final decision on a sanction and any costs. Details of previous cases considered by the Disciplinary Committee can be found in the Indicative Sanctions Guidance and annex, which we talked about earlier.
If people are interested, they can also see what a Disciplinary Committee looks like by going to the CIMA virtual tour of a mock hearing on our website. This gives a helpful and accurate visual representation of what Disciplinary Committee hearings look like, the individuals that could be present, and their respective roles.
More information can also be found in the Disciplinary Committee rules and the additional guidance notes, which are both online on our website.
Lumor: Thank you very much. We’ll see if we can add a link to the virtual tour and the other resources mentioned in this episode in the show notes. I think that’s it for us. Thank you so much for your time. I really do appreciate you coming in to talk to us. Can you let us know where members can go to find any more useful information or resources that can help in relation to the things we discussed today?
Samuel: On [aicpa-cima.com], if you search for “professional conduct and ethics”, you can find lots of information about the disciplinary process. Members can also download a copy of the Indicative Sanctions Guidance and annex, the Code of Ethics, and they can also refer to the Member in Practice Rules. We also have a separate dedicated page where we publish the decisions of recent cases that have been considered by CIMA’s various committees.
It’s definitely worth having a look.
Lumor: Thank you again, Monique. We really appreciate your time.
Samuel: Thank you.
