Use these case studies to help you understand whether ICAEW may be able to investigate your complaint, the types of cases that may fall outside ICAEW’s remit and, where relevant, examples of alternative organisations that may be able to help you.
1. Concerns about your accountant’s bill
Scenario
An accountant has provided you with accountancy services. You complained about the bill as it was more than you were expecting. You also don’t think the accountant provided all the services you requested.
The firm offered you a discount but you remain unhappy. You complain to ICAEW on the basis that the higher bill raises concerns about the integrity of the accountant. You believe they have not behaved professionally in issuing it.
Outcome
ICAEW will not investigate this matter
Why
This is a fee dispute. Disagreement over the amount that has been charged or whether the firm provided the agreed services is a contractual dispute which should be considered by the courts.
2. Concerns about a mistake in your tax return
Scenario
Your accountant has completed your tax return and it has been submitted to HMRC.
HMRC issues a calculation showing that you owe more than you expect. Your accountant reviews the calculation and agrees that HMRC is correct. When entering your tax paid into their system your accountant mistakenly inputted that you had paid £5,492 in tax, instead of £4,592.
You complain to the accountant as it means you need to find an additional £900. You consider that the accountant should pay the additional tax as it is due because of their mistake. The accountant explains that the tax was always due, apologises for the transposition error and offers to arrange a ‘time to pay’ agreement with HMRC for you.
The accountant does not change their position, despite expressing your unhappiness with the outcome of your complaint and you submit a complaint to ICAEW. You consider the accountant’s behaviour is not professional and lacks integrity as they’re not paying for the mistake they made.
Outcome
ICAEW will not investigate this matter, beyond reviewing the correspondence between the parties.
Why
A single typing error is not conduct that would result in a disciplinary case. Additionally, the fact that the accountant has not agreed to the outcome you want is not a disciplinary matter, nor does it indicate integrity concerns about the accountant.
If the accountant has been polite but firm within their correspondence, then it will not be a disciplinary matter.
3. Concerns about the accountant for a family company
Scenario
You and your husband are getting divorced. He is a director of a company and you have received dividends from the company as you are a shareholder. You disagree over the financial position of the family assets and what level of financial support should be provided.
You’re unhappy with some of the payments that have been made through the company as they have reduced the profits available to pay dividends. You consider your husband has done that intentionally. You contacted the external accountant to request information about the company finances but they have not provided it. You think they are trying to protect your husband, you also think the accountant has been rude to you and you complain to ICAEW.
Outcome
ICAEW will not investigate this matter beyond asking you to supply a copy of any correspondence you found rude to check that the language and tone is not overly threatening or improper.
Why
As you are not a director of the company, the accountant can’t provide you with any response or financial information from the company without the approval of the director.
It is not for the external accountant to monitor what payments the director makes from the company. Their remit does not extend that far.
What to do instead
If as a shareholder you’re unhappy with the payments made through the company, your recourse is to raise this with the director.
4. Concerns about an expert witness engaged as part of a civil dispute
Scenario
You are in dispute with your business partner. You are in a deadlock position and it is agreed that you will buy your partner out of the company. You have a partnership agreement which sets out the process that must be followed in this situation. The matter is proceeding through the civil courts. As part of the civil court hearing it is determined that a Single Joint Expert (SJE) will be appointed to value the interest in the company which is being sold.
An initial draft report is prepared by the expert which you disagree with. You consider that adjustments are required to reflect the ongoing trading position. You raise these with the expert but they submit the formalised report to the court without the adjustments you requested.
Outcome
ICAEW will not investigate this matter.
Why
ICAEW does not have jurisdiction.
What to do instead
The SJE’s obligation is to the court. If you object to the outcome of their review, your recourse is through the court proceedings where your objections will be considered.
5. Concerns about your dismissal as an employee from an accountancy firm
Scenario
You have recently been subject to your employer’s disciplinary process. This was led by the senior tax partner of the firm and supported by HR. You consider that your employer has not correctly followed the process. You also think that the tax partner has believed other team members’ words over yours and made comments that you think are unfair. As a result, you believe they have reached the incorrect conclusion.
Outcome
ICAEW will not investigate the outcome of the employment tribunal.
ICAEW will only investigate this matter if there is documented criticism from the employment tribunal about an ICAEW member’s behaviour or integrity, the evidence of this can be considered by ICAEW.
Why
This is an employment dispute. The correct recourse is for it to be considered by an employment tribunal. Investigating if there were errors in the employment disciplinary process does not fall within ICAEW’s remit.
6. Concerns about how your accountant has handled your data
Scenario
You provided your books and records to your accountant to complete your annual accounts. You don’t think the records were complete when they were handed back.
You raise this with the accountant who confirms they’ve returned everything that they received. They explain they can provide a back-up of your accounts system for you to check. However, when emailing the back-up to you, they selected an incorrect email address so your accounts system data was sent to an unrelated party.
Outcome
An allegation that some of your records have gone missing or a one-off administrative failing would not result in a disciplinary matter.
Why
It is unlikely that we can prove what information was received by the accountant and therefore what should have been returned. While it is unfortunate if any records haven’t been returned, a one-off administrative issue would not be considered to be a significant breach of standards.
What to do instead
Allegations of data breaches, such as providing your accounts system back-up to a third party, should be considered by the Information Commissioners Office (ICO). Should the ICO sanction an ICAEW member, then evidence of the sanction should be provided to ICAEW so that we can consider it.
7. Concerns about a mistake an accountant has made in your tax calculation on your tax return
Scenario
Your accountant made a mistake on your tax return by using the wrong exchange rate to calculate a gain on the sale of a foreign asset. It wasn’t identified until after the tax return was submitted. HMRC issued an amended calculation which resulted in an increase in your tax bill. You’re unhappy about the increase. You want your accountant to pay the additional amount as you haven’t budgeted for it and you also want compensation for the upset that it has caused.
Outcome
This is not something ICAEW would investigate as a disciplinary case.
Why
A single arithmetical error in a calculation is not conduct which would fall significantly short of the standards expected of a Chartered Accountant. Not every mistake made by a Chartered Accountant will bring them liable to disciplinary action.
What to do instead
If you wish to seek compensation or for the member to pay the additional tax due, then you should consider civil legal action. ICAEW does not issue compensation through the disciplinary process.
Accountants are required to have professional indemnity insurance (PII) in place so clients are financially protected if mistakes happen. If you wish to make a claim on an ICAEW member’s PII then you should write to the firm. It is not necessary for you to have the firm’s PII details to make a claim.
8. Concern that your accountant missed HMRC’s deadline to file your tax return
Scenario
Your accountant makes a mistake and does not submit your tax return to HMRC by the submission deadline. This means you receive a late submission penalty.
Outcome
ICAEW may investigate depending on a number of factors.
We will weigh up all factors for and against investigating to enable us to make a decision.
Factors that make us more likely to investigate
- The accountant has covered up the mistake and not been honest about it.
- The accountant had all the information to complete the tax return for a number of months but failed to meet the deadline.
Factors that make us less likely to investigate
- The accountant was not provided with the information in good time to comply with the submission deadline.
- The accountant has been open and honest about what has happened and has paid the late filing penalty.
9. Concern that service charge accounts certified by an ICAEW member should have been audited
Scenario
An ICAEW Chartered Accountant prepared and certified the service charge accounts for your residence. You believe that the accounts required an audit under the lease but that the accountant did not identify this.
Outcome
ICAEW may not investigate this matter.
Why
Many leases contain requirements for service charge accounts to be prepared for each year and audited. The work effort required by current generally accepted auditing standards is unlikely to be what was anticipated when some older leases were drawn up.
The term ‘audit’ in a lease made before 1980 would not have involved any particular procedures beyond those needed to assist in the preparation of the accounts. Whereas for an auditing professional or other qualified, practising accountant to state now that an audit has been undertaken requires the professional to follow generally accepted auditing standards.
What to do instead
If your lease was written prior to 1980 and makes reference to audit, you should contact your landlord or managing agent in the first instance to determine how the term ‘audit’ has been construed in your lease.
10. Concern that you have been overcharged for your service charge
Scenario
You believe the service charge for your residence is too high and an ICAEW Chartered Accountant has certified the service charge accounts.
Although your accountant may have certified the accounts, it is important to note that your accountant is not asked to, nor required to, certify any reasonableness and/or necessity in relation to the amounts charged. The accountant is in fact required to check the figures are extracted correctly from the accounting records and that a test sample is supported by appropriate documentation or evidence.
Outcome
ICAEW will not investigate this matter.
Why
The accountant is not responsible for determining the level of the service charge or certifying the reasonableness of it.
What to do instead
If you have concerns regarding your service charges, free information and advice is available from the Leasehold Advisory Service.
Making a complaint
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