As a qualified accountant or auditor, you are professionally bound by a Code of Ethics and professional standards that best protect and serve your clients and the public interest. But things can still happen, and it may lead to a client or third party making a professional complaint against you to Chartered Accountants Australia and New Zealand (CA ANZ), specifically NZICA.

So what do you do?

Facing a professional disciplinary complaint can be a stressful situation – but with the right advice and appropriate actions, it doesn’t have to be.

In this article, we pull back the curtain on the claim process and highlight what to expect if you find yourself faced with an unfortunate claim situation.

The process:

When a client or third party makes an official complaint with CA ANZ, the complaint will be reviewed and handled initially by the Professional Conduct Committee (PCC). If the PCC determines that it has jurisdiction to investigate the complaint, you will be provided with the opportunity to respond to the complaint within a specified time frame. Following submissions from you and the complainant the PCC will then determine whether further action is required - this may include appointing an external investigator to investigate, convening a case conference to discuss the complaint, imposing various sanctions or referring the matter to the Disciplinary Tribunal.

In our experience, resolution of the complaint process can take anywhere from 12 - 18 months for a straightforward matter and could take considerably longer for a more complex issue, particularly if the complaint process goes to the Disciplinary Tribunal and Appeals Council.

As a starting point, here’s our top tips for how best to handle a complaint made against you:

Resolve: If the client has contacted you and the circumstances are appropriate, try to resolve the complaint with them through your usual complaint processes in the first instance.
Record: Keep an accurate record or file note of any discussions or correspondence with the client and do not do anything that could prejudice your position if a formal complaint or claim is made.
Inform: Advise your professional indemnity insurer or broker as soon as possible on being notified of a complaint (or if you think a claim may be made). Your insurer will usually appoint a panel solicitor to assist and represent you (subject to any indemnity issues).
Preserve any relevant files, records or documents including any electronic records such as emails, calendar entries, text messages etc.
Prioritise dealing with the complaint. The PCC will usually provide you with a copy of the complaint and any supporting documents provided by the complainant. You will typically be given 14 days to provide a response in writing. This is a short timeframe so you and your solicitor need to quickly determine whether you will require an extension of time to provide a full response to the complaint.
Request further time (in consultation with your solicitor) from the PCC to respond to the complaint if you need it or require further information. You should provide the PCC with clear and compelling reasons why further time is required. This may include the need to collate and review information, the complexity of the complaint, the availability of key personnel involved, and the need to take legal advice.
Prepare: Treat the complaint seriously and prepare a full and substantive response accordingly. Keep in mind that disciplinary complaints are often a precursor to or accompanied by civil proceedings and the complainant may be trying to gather information for that purpose. Things to consider and collate include:
- A detailed chronology or timeline of key events.
- Copies of relevant documents including:
  - Communications or correspondence with the complainant(s);
  - Relevant agreements with the complainant(s) including engagement letters, conflict of interest disclosure and consent to act forms, trust deeds, powers of attorney, transactional documents;
  - Relevant financial information such as financial statements, valuation or audit reports, tax returns.
- A full explanation of why you disagree with the complaint or consider it has no merit.
Reply: You will get a final right of reply once the complainant has provided a response.
Present your case: Professional complaints can be stressful and frustrating, but it’s important to remain positive and cooperative. Resist the urge to become defensive.

In our experience, disciplinary complaints can often be satisfactorily resolved without the imposition of serious sanctions or penalties. However, this will require that a fulsome response to the complaint is provided and the response to the complaint is handled carefully and appropriately. Getting legal advice at an early stage is key and your solicitor can guide you through the process. For further details of the complaints process refer to our NZICA Disciplinary Complaints Roadmap.

Resources

How to navigate a professional disciplinary complaint as an Accountant or Auditor

Fee Langstone