Disciplinary outcome: Michelle Scott

1. Acted, or permitted the Firm to act, as Independent Examiner to an incorporated charity client over a number of years, including in relation to the year ended 31 March 2020, when the work undertaken did not comply with the relevant Charity Commission Directions for independent examination.

2. Failed to ensure that the work performed as part of the independent examination was sufficient and appropriate, in that the scope of work was limited to:

   - Checking the arithmetic of the client’s transaction analysis spreadsheet; and,

   - sample checking to bank statements

3. Failed to identify that the charity client’s records and accounts were being prepared on a receipts and payments basis rather than the required accruals basis, and/or failed to take appropriate action when this was or ought to have been apparent.
4. Signed, approved, authorised and/or permitted the issue of independent examination reports which were unqualified when, in light of the accounting deficiencies and deficiencies in the underlying records, the reports should have been qualified and the matter reported to the Charity Commission.
5. Failed to take appropriate action after being made aware, or after information had been provided indicating, that the client had been preparing accounts incorrectly for a prolonged period, including failing to consider whether prior reports were incorrect and/or whether corrective action should be taken.
6. Failed to exercise appropriate oversight and control over work undertaken by the Firm’s AAT-qualified subcontractor, whose work was completed under a subcontracting arrangement for which the Firm retained responsibility, including where independent examination reports were signed between 2021 and 2024 in connection with the Firm.
7. Failed to disclose this independent examination engagement to AAT during the September 2016 telephone review and/or the March 2021 remote review, despite it being the Firm’s only independent examination engagement at those times.
8. Signed the independent examination report for the charity client for the year ended 31 March 2020 when that report ought not to have been issued in that form.

By reason of the conduct set out in the Allegations above, Michelle Scott is guilty of misconduct pursuant to Article 21 of AAT’s Articles of Association.

1. Reprimanded for a period of three years.
2. Fined £5,000.00.

The decision of the Investigations Team shall stand as an Order of the Association pursuant to Regulations 5.2 and 5.3 of the Disciplinary Regulations.