ASIC continues auditor crackdown

ASIC has imposed conditions on a Melbourne-based auditor’s registration, marking the latest punishment handed down by the regulator following increased scrutiny regarding auditing processes and operations.

ASIC has imposed conditions on the registration of company auditor George Georgiou of Brighton, Victoria, after it identified a number of concerns with audits conducted by Mr Georgiou of two ASX-listed entities for the financial year ended 30 June 2014.

Responding to ASIC’s concerns, Mr Georgiou voluntarily agreed to conditions being imposed on his registration as a company auditor. Those conditions include that Mr Georgiou will, at his own expense:

  • successfully complete, within 12 months of the date of the conditions being imposed on his registration, at least 30 hours of professional training about audit-related matters; and
  • engage a registered company auditor to review three company audits completed for the financial year ended 30 June 2016 and report to ASIC.

Mr Georgiou also provided ASIC with a voluntary undertaking not to accept any audits of ASX-listed company audits for which he is not currently appointed as auditor until 31 December 2016.

“Auditors have a critical role in ensuring that Australian investors can be confident and informed in making their investment decisions,” said ASIC Commissioner John Price.

“High-quality audits support the quality of financial reports that investors rely on. Company auditors must meet the required standards, or ASIC will hold them to account.”

ASIC has recently taken action against a number of registered auditors who failed to meet their obligations, including:

  • Suspending the registration of Victorian auditor Philip Dowsley, following a successful application to the disciplinary body, the Companies Auditors and Liquidators Disciplinary Board (CALDB); 
  • Suspending the registration of Sydney auditor Richard Langley Stewart Hill, following a successful application to the CALDB;
  • The cancellation of the registration of Victorian auditor Neil Raymond Turner following an ASIC investigation.

 

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