The Financial Reporting Council’s (FRC) Executive Counsel has delivered a disciplinary Formal Complaint in connection with the conduct of Timothy Whiston and John Whelan, members of the ICAEW, in relation to the preparation, approval and audit of the financial statements of iSoft for the years ended 30 April 2004 and 2005.
The Complaint alleges that the conduct of Timothy Whiston (former Finance Director/ CEO of iSoft Group Plc) and John Whelan (former European Financial Director/ Group Finance Director of iSoft Group Plc) breached the fundamental principle of integrity and therefore fell significantly short of the standards reasonably to be expected of members of the ICAEW.
The breaches occurred in relation to iSoft’s recognition of revenue and cash from a contract with the Irish South Eastern Health Board during 2003 – 2004.
Notes to editors:
- The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
- In relation to disciplinary matters, 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. In brief, the stages of the disciplinary process are:
- Decision to investigate
- Decision whether to bring disciplinary proceedings against Member Firm or Member and, if so decided, referral to Disciplinary Tribunal
- Tribunal hearing
- Determination and imposition of sanction and/or costs orders
- The FRC can start a disciplinary investigation in one of two ways: (i) the professional bodies can refer cases to the FRC; and (ii) the FRC may decide of its own accord to investigate a matter. The Conduct Committee will consider each case identified or referred to it and decide whether or not the criteria for an investigation are met.
- Investigations are conducted by Executive Counsel and the Professional Discipline team within the Conduct Division. If disciplinary proceedings are commenced, Executive Counsel delivers a complaint to the Conduct Committee. The Conduct Committee then instructs the Convener to appoint a Disciplinary Tribunal.