Auditor Reginald Lance Williams has had his licence cancelled after ASIC successfully contended before CADB that he had failed to carry out or perform adequately and properly the duties of an auditor in relation to his audit of the financial report of LM Managed Performance Fund for the year ended 30 June 2012.
Mr Williams was a registered auditor since 1996 and his firm, Williams Partners Independent Audit Specialists, was engaged to perform an audit of the financial report of the LM Managed Performance Fund for the 2012 financial year.
The corporate regulator was successful in contending the following:
- Sub-contentions (a)-(c) and (e)-(k) in respect of the carrying value, impairment and recoverability of loans and receivables (sub-contention (d) was found in part);
- Issues regarding consideration of going concern;
- Issues regarding the accuracy and disclosure of related party loans;
- Sub-contentions (b) – (i) regarding the completeness and accuracy of, and the manager's rights and obligations to, management fees;
- Sub-contentions (a), (c) – (e) regarding the calculation of materiality; and
- Issues when forming his opinion on the 2012 LM Financial statements.
On 5 December 2018, Mr Williams applied to the AAT for a review of the CADB’s decision. Mr Williams also sought a stay of the operation and implementation of the CADB’s decision, confidentiality orders not to disclose Mr William’s name during the AAT review process and to suppress the publication of any evidence.
The AAT subsequently refused Mr Williams’ applications for a stay, confidentiality and suppression of evidence on 19 March 2019. His application for a review of the CADB’s decision is proceeding.
Mr Williams has the right to appeal to the Federal Court of Australia for a review of the AAT’s decision.
“Auditors play a key role in supporting confidence in the quality of financial reports. ASIC will continue to take action to ensure auditors properly perform this important role,” ASIC commissioner John Price said.
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.