20 Apr 2012

Accountants barred over audit breaches

9:00 am on 20 April 2012

Two chartered accountants have been barred from practising for breaches during audits at major finance companies, two of which collapsed soon after.

Robert Innes-Jones and Peter McNoe were found to have breached the Institute of Chartered Accountants' code of ethics over audits they did between 2006 and 2008.

Mr Innes-Jones was fined $320,000 on two charges relating to an audit at the failed finance company Blue Chip for the 2006 year.

The company collapsed in 2008, owing more than 2000 investors more than $84 million.

Mr McNoe was ordered to pay $285,000 on four charges relating to an audit at the failed finance company Capital and Merchant for the year ending March 2007.

Capital and Merchant went under later that year, owing investors about $165 million.

Both men were also charged in relation to two audits of Beneficial Finance, which is still operating.

They have been censured and barred from practising for two years, and also barred from some audits for five years.