iscoverThe Companies Auditors Disciplinary Board has cancelled an auditor’s registration for “extensive and serious” failures in his company audits.
Company auditor’s registration cancelled after ‘extensive and serious’ failures
28 October 2025
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7 minute read
Last Friday (24 October), the Companies Auditors Disciplinary Board (CADB) cancelled the registration of company auditor Ryan O’Shea after finding he had demonstrated “extensive and serious” failures during audits of property development companies United Global Capital (UGC), Global Capital Property Fund (GCPF) Global Alpha Fund (Alpha Fund).
Over a number of years, O’Shea signed audit reports continuing no qualification and expressing opinions that the companies’ financial reports were in accordance with the Corporations Act.
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However, the CADB found the companies’ property developments and investments included “significant” related party investments, its developments were underperforming and had impairment indicators that were not reflected in valuations, and further lending was being provided to impaired developments.
The board determined that O’Shea had continuously failed to investigate the companies’ related party investments, including GCPF’s investments in 15 property developments which totalled $93 million in the 2023 financial year, five of which were related to GCPF’s directors.
ASIC added that UGC used a client onboarding and advice process that lured people to invest their retirement savings into UGC-related products, including speculative investments in GCPF.
“This case strikes at the heart of two of ASIC’s enforcement priorities for 2025 – exploiting superannuation savings and auditor misconduct,” ASIC deputy chair Sarah Court said.
“Auditors are critical gatekeepers, and when they fail in their duties, the consequences for investors can be severe.”
ASIC added that O’Shea had failed to properly audit unit trust investments held by Alpha Fund of approximately $6.5 million, and the recoverability of loans from UGC to director Joel Hewish, for which there were no loan agreements or representations from UGC’s management provided.
Furthermore, the CADB found that O’Shea failed to undertake any work to ensure these investments were made on commercial terms, that there was evidence to support the values of the investments, or that the investments were recoverable and adequately disclosed.
Company documents had also made it clear that there were potential impairment indicators, which O’Shea failed to investigate. The CADB noted O’Shea did not corroborate evidence provided by directors who had a direct financial interest in the investments, despite ‘significant’ risks of management bias.
The board found that O’Shea’s ‘extensive and serious’ audit failings supported a finding that he was not a fit and proper person to remain registered as an auditor.
Liquidators were subsequently appointed for GCPF and UGC, in 2023 and 2024 respectively.
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