Two chartered accountants won't be allowed to issue audits for five years after their involvement in auditing errors involving two companies which later collapsed.

The liquidator of failed finance company Capital + Merchant says it expects to determine whether any civil recovery action is possible by the third or fourth quarter of this year.

Capital + Merchant directors – arrested by the Serious Fraud Office last week -- made a brief appearance in court this morning, but their case has been adjourned to February.

Neal Medhurst Nicholls (55), and Wayne Leslie Douglas (57) face six charges under the Crimes Act, involving nearly $14.5 million of related party lending dating back to 2002.

The pair appeared in the Auckland District Court this morning and were remanded on bail to return to court on February 25.

Mr Nicholls and Mr Douglas were arrested by the SFO last Thursday.