The Independent Regulatory Board for Auditors (IRBA) has taken decisive action against a former registered auditor, Gareth Phillipe Ducler des Rauches, for serious breaches of professional conduct.
Ducler des Rauches, formerly registered as an auditor with the IRBA, has been found guilty of improper conduct and permanently disqualified from practising as a registered auditor.
Ducler des Rauches, a former partner at Finance Spec, was entrusted with assisting an executor in the administration of a deceased estate. However, an investigation by the IRBA revealed that he unlawfully misappropriated a total of R17.8m from the estate's bank account. Evidence presented during a disciplinary hearing showed that these funds were transferred to Ducler des Rauches' personal and other linked accounts.
The disciplinary hearing panel found Ducler des Rauches' conduct to have egregiously fallen short of the high ethical standards expected of registered auditors. Consequently, he has been found guilty of improper conduct and permanently disqualified from registering as an auditor with the IRBA.
Additionally, the maximum allowable fine of R200,000 was imposed on him for the misappropriation charge and an additional R100,000 fine imposed for his failure to engage with the IRBA during the investigation process. Ducler des Rauches has also been ordered to pay R688,937 towards the IRBA’s legal costs.
In accordance with the disciplinary hearing panel’s ruling, the IRBA has referred Ducler des Rauches to the professional conduct committee of the SA Institute of Chartered Accountants (Saica) for an assessment of his fitness to continue practising as a chartered accountant, given the finding against him in his capacity as a registered auditor.
The IRBA views the outcome of the disciplinary process as a positive step towards vindicating the ethical standards which are a tenet of the auditing profession, deterring similar improper conduct and restoring public trust in the auditing profession.
This article was sponsored by the IRBA.
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