€10,000 fine and ‘severe reprimand’ for auditor of collapsed med-tech company Hibergene
June 14, 2025
Accountants Whiteside Cullinan were ‘in breach of a fundamental principle of Chartered Accountants Ireland's code of practice’
Chartered Accountants Ireland (CAI) has issued a “severe reprimand” to Dublin-based accountancy practice Whiteside Cullinan in relation to its auditing of collapsed medical diagnostics firm Hibergene.
The CAI conduct committee found that the auditor was in breach of a fundamental principle of the organisation’s code of practice and fined the firm €10,000, as well as costs of €11,000.
Billed as an up-and-coming star of the Irish medtech scene, Hibergene, whose directors are listed as former CEO David Corr, Peter Kidney, Seamus Gorman and James Murray, went into liquidation in September 2022. It had raised an estimated €12m from investors, including Enterprise Ireland.
The company had last filed abridged financial accounts with the Companies Registration Office for the year to the end of 2020 and shareholders had raised a range of concerns before its insolvency.
Without naming Hibergene, CAI noted in its register of findings and orders that its conduct committee considered there was “a case to answer” for Whiteside Cullinan and that it “did not adequately plan, execute and conclude audits of a Company and its Subsidiary, in compliance with International Standards on Auditing”.
The Conduct Committee considered that the auditor had acted in breach of a “fundamental principle” of CAI’s code of ethics for members with regard to “professional competence and due care".
It found that Whiteside Cullinan was in breach of international standards on auditing “in carrying out audits of a company and its subsidiary for the financial years 2019 and 2020 where there were shortcomings in the audit planning, audit fieldwork, audit completion and financial statement disclosures”.
The register noted that the accountancy practice was “accordingly liable to disciplinary action under the Institute’s disciplinary bye-laws”.
Asked to comment on the reprimand from its professional body, Whiteside Cullinan managing partner Alan McClean said that his firm has provided a full range of audit, accounting and related services to our clients for over 90 years.
“For the first time since our establishment, the firm was subject to a Chartered Accountants Ireland Conduct Committee’s investigation. The investigation related to one isolated case. The firm co-operated fully with the investigation and all findings have been accepted,” he said.
McClean said that following the investigation and its findings, Whiteside Cullinan had “conducted a full review of our internal processes to ensure that all work undertaken by the firm meets, and indeed exceeds, industry standards. Relevant changes and enhancements have been made to ensure that no further issues can arise in the future,” he said.
“Our entire team remains committed to delivering the highest standard of professional service to our valued clients,” he said.
A spokesman for CAI said that it had no comment to make and that the entry on the register was “in accordance with our publication policy”.
[Irish Independent]
