The Disciplinary Committee (‘the DC’) is the other statutory arm of the Institute established under Section 19(b) of the Accountant’s Act 1967. It is empowered under the Act to consider all complaints referred to it by the Investigation Committee (‘the IC’) and cases coming directly to it under Rule 18(2) of the MIA (Disciplinary) Rules 2002 (‘the 18(2) Rule’).

As at 31 December 2017, Table A shows that the DC dealt with a total of 35 cases out of which 34 cases were referred by the IC and one case came directly under the 18(2) Rule. The most number of complaints heard and disposed by the DC involves auditors for matters pertaining to Practice Review and audit issues. The DC had disposed these cases leaving a balance of 18 cases.

Table B shows the type of punishments meted out by the DC. The DC is more inclined to impose costs and/or a fine against members for minor audit or accounting offences and membership issues whereas the DC is seen to take a more drastic stand of suspending a member under Rule 18(2) route where a court judgment was obtained against the member or even for cases referred by the IC. A new move of amending the Act which is currently under progress, will see a change in the types of punishment which includes an increase in the amount of fine that is to be imposed by the DC.

Where the DC makes a decision on a case and metes out its punishment, these decisions, including the members’ names, are published in the Institute’s magazine, Accountants Today and local newspapers. Relevant government licensing authorities and to the association of accountants to which the member is associated with are also informed. Decisions are also uploaded to the Institute’s website for transparency and to serve as a warning to potential wrongdoers.

TABLE A: Cases before the Disciplinary Committee from 1 July 2017 to 31 December 2017

Cases from previous financial years No. of cases referred to the DC during current financial year Cases heard including cases from previous financial years Pending Cases Complainant Cases involving:
No. of cases resulting in disciplinary punishment No. of cases dismissed by the Disciplinary Committee Individual/ Internal/ Council complaints Regulators Auditors
  • Directors
  • Liquidators
  • Company Secretary
  • Others
9 26
[1 case came directly to the Disciplinary Committee under Rule 18 (2) of the MIA (Disciplinary) Rules, 2002]
16 1 18* 31 4 22 13

* Pending hearing before the Disciplinary Committee

TABLE B: Punishments meted out by the Disciplinary Committee

Punishments meted by the Disciplinary Committee 1 July 2017 – 31 December 2017
Removal (includes Costs and/or Fine) 1
Suspension (includes Costs, Fine and/or Attend Course) 2
Reprimand/Attend Course/Costs and/or Fine 13
Fine and/or Costs 0
Admonish/Censure/Reprimand Only 0