Former finance director of RSM Tenon Group plc (RSM Tenon), Russell McBurnie, has been excluded from the accountancy profession by the Financial Reporting Council (FRC) for a period of five years.
Mr McBurnie has also been fined £60,000, which was reduced to £57,000 for settlement, and he will pay £825,000 towards the costs of the investigation.
He admitted to extensive misconduct in relation to the preparation and approval of the financial statements of RSM Tenon for the year ended 30 June 2011 and he admitted to nine allegations that his conduct fell significantly short of the standards reasonably to be expected of a member of the Institute of Chartered Accountants in England and Wales (ICAEW).
Mr McBurnie’s conduct was in breach of two of the fundamental principles of the ICAEW Code of Ethics, including the fundamental principle of integrity which required him to be honest in all professional and business relationships because, as he admitted he was reckless as to whether certain information within the financial statements had been fairly and accurately stated.
The FRC published the settlement agreements in relation to Mr McBurnie, Price Waterhouse Coopers LLP (PwC), Nicholas Boden and Andrew Raynor. Sanctions against PwC and Mr Boden, a partner of PwC, in relation to the audit of RSM Tenon were announced in August 2017, and sanctions against Mr Raynor, former chief executive of RSM Tenon, were announced in December 2016.
The terms of the settlement have been approved by the independent disciplinary tribunal appointed to hear the formal complaint.
The FRC is the independent, investigative and disciplinary body for accountants and actuaries in the UK dealing with cases which raise important issues affecting the public interest.
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