Disciplinary

PUBLICITY NOTICE

John Cumberlidge CA

In terms of ICAS Rule 13.21, notice is hereby given that the ICAS Investigation Committee has found John Cumberlidge CA, a former principal in Moose Accounting Limited and Moose Accounting (London) Limited (“the firms”), guilty of professional incompetence and professional misconduct on the following grounds:

1. Between around October 2020 and March 2022, while engaged to provide accountancy services to a client, he failed to pay adequate attention to the client’s affairs and/or failed to ensure that those working under his authority paid adequate attention to the client’s affairs, in respect that he/they:

a. failed to respond to correspondence from the client dated 9, 14, 16 June, 6 July, 2 and 6 August, 3, 8 and 14 December 2021, 6, 11, 17 and 27 January, 1, 4, 8, 10, 15, 21 and 23 February, and 7, 9 and 17 March 2022;

b. failed to prepare the client’s self-assessment and company accounts by the end of October 2021 as agreed;

c. failed to respond timeously to requests for professional clearance dated 12 January 2022 and dated 17 March 2022 from the client’s new accountants; and

d.  when preparing and submitting the client’s personal tax return for the financial year ended 31 April 2021, failed to ensure that the client received and approved the personal tax return prior to submission to HMRC

contrary to the fundamental principles of professional competence and due care, and professional behaviour, contained in sections R113 and R115 of the Code of Ethics.

 2. Between March 2022 and March 2023, he failed to cooperate fully and promptly with the investigation of a complaint made to ICAS against him, in breach of his obligations under Investigation Regulations 3.4 and 3.8 and contrary to the fundamental principle of professional behaviour contained in Section R115 of the Code of Ethics.

3. He has been disqualified from acting as a company director on the basis that, while a director of Company A, he caused or allowed it to trade to the detriment of HMRC. He failed to report his disqualification as a director, and resignation as director of Moose Accounting Limited and Moose Accounting London Limited, to ICAS, in breach of Regulation 3.1.1 of the Investigation Regulations and Regulation 4.6 of the Public Practice Regulations.  

 

Sanction

Under operation of Investigation Regulation 2.15, Mr Cumberlidge has accepted an order of severe reprimand, payment of a fine of £9,000 and a requirement to pay £4,395 in respect of ICAS’ costs of the investigation.

Commentary

• In March 2022, ICAS received a complaint which raised concerns about the work of Mr Cumberlidge and his firms. The complaint was referred to ICAS’ Investigation Committee who made enquiries into the matter. After due consideration, the Committee determined that there were various aspects of the work which fell significantly short of the standards that would be reasonably expected of a Chartered Accountant. In particular, the Committee concluded that there had been a failure to respond to correspondence, a failure to complete work for the client within the agreed timescales and a failure to obtain the client’s approval before submitting their self-assessment to HMRC.

• Although not all of those failures were caused by Mr Cumberlidge, as the sole Chartered Accountant within the firms he was responsible for ensuring that those working under his authority were adequately supervised and paid adequate attention to the client’s affairs.

• Furthermore, during the investigation Mr Cumberlidge failed to respond fully and promptly to the Committee’s enquiries. All members of ICAS have a duty to cooperate with the investigation of a complaint: a failure to cooperate makes it difficult for ICAS to fully investigate the allegations and can itself be grounds for disciplinary action.

• Separately, it came to ICAS’ attention that Mr Cumberlidge had been disqualified as a company director by the Insolvency Service, with a director disqualification undertaking commencing on 1 March 2023. Members have a duty to self-report to ICAS anything which may render them liable to disciplinary action. In terms of the ICAS Rules, there is a presumption that a member is guilty of professional misconduct if an order of disqualification has been made against him or a disqualification undertaking accepted. Mr Cumberlidge ought therefore to have informed ICAS of the disqualification undertaking but had failed to do so. Members also have a duty to inform ICAS of any change in the principals of a registered firm, but Mr Cumberlidge had failed to inform ICAS that he had resigned as director of the firms.

• The Committee was satisfied that the conduct in charge 1 amounted to professional incompetence and the conduct in charges 2 and 3 amounted to professional misconduct. In reaching its decision on sanction, the Committee had regard to ICAS’ Sanctions Guidance. The level of sanction reflects the fact that there were various aggravating factors including (i) that the concerns related to a repeated course of conduct, with repeated failures over a lengthy period of time, (ii) a lack of understanding or insight into the issues concerned, (iii) a reckless disregard for legal and regulatory responsibilities, and (iv) a failure or refusal to take remedial action. On the other hand, there had been (i) partial cooperation with ICAS’ investigation, and (ii) no evidence that the client had suffered financial loss as a result of the conduct, or that Mr Cumberlidge or his firms had gained financially or otherwise.