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The Queensland building industry regulator has indefinitely banned more than a dozen accountants for allegedly providing incorrect financial reporting information.
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Queensland building regulator blacklists 15 accountants
17 February 2020
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9 minute read
The Queensland Building and Construction Commission (QBCC) has blacklisted 15 accountants for providing false, incorrect or misleading information on behalf of their construction company clients in relation to new QBCC Minimum Financial Requirements (MFR) laws.
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The mandatory reporting laws require all building and construction companies to provide annual financial information to the QBCC.
QBCC commissioner Brett Bassett said these accountants have been disallowed indefinitely from providing any financial information to the QBCC in relation to any licensed builder.
“All of these accountants have either provided false and misleading information, or in the alternative, provided information that may be incorrect or incorrectly applies the Minimum Financial Requirements (MFR),” Mr Bassett said.
According to the QBCC MFR Regulatory Guide, “the MFR Regulation sets out the minimum financial requirements a contractor licensee must meet for the allowable turnover, and the annual and other financial reporting requirements for contractor licensees”.
“The action taken by the QBCC against these accountants means they are no longer accepted by the QBCC as accountants who can lodge the reports on behalf of licensed builders,” Mr Bassett said.
The QBCC considers an accountant qualified if “they are [an accountant] independent of the licensee, and is approved by the QBCC”.
Accountants are not independent if they are employed by the licensee; an executive officer, investor or shareholder of the licensee; a partner in partnership of the licensee; or a related entity of the licensee.
“The financial information [accountants] provide to the QBCC helps in making decisions as to whether a person or company should have a licence,” Mr Bassett said.
“If accountants are providing incorrect information, we have forensic accountants and experienced investigators who will uncover any attempt to do so, and the QBCC will be taking action.”
A person found to be actively providing false or misleading information is liable for prosecution.
Penalties can include fines up to $13,345 or two years in jail.
Mage Advisory director Michael Garrone said it was crucial for accountants to remain independent.
“You should ask yourself whether a client who asks you to withhold information is worth having as a client,” Mr Garrone said.
“We know how important providing accurate financial information to the QBCC is, so our clients and the regulator can have peace of mind that they can trust our accounting work.”
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