ASIC sues BDO Audit for alleged failures amid $26.6m misappropriation

“We consider BDO Audit and Mr Just acted outside of the auditing standards, and we allege misleading reports were submitted to ASIC,” ASIC deputy chair Sarah Court said.

When BDO submitted its audit reports for Dubber Group for the financial years ending 30 June 2020 to 30 June 2022, it concluded that the company’s financial reports had given a true and fair view of its financial position.

It also believed the audit evidence obtained was sufficient and appropriate to provide a basis for that opinion.

However, in early 2024, Dubber Group uncovered that $26.6 million of company funds had gone missing. Following further internal investigations, the company alleged that its former CEO and the third-party trustee, which had held the funds, had misappropriated the money.

BDO Audit’s failure to detect the misappropriation during its performance audit had exacerbated the magnitude of Dubber’s financial losses, the company alleged. In a bid to recover the missing $26.6 million, the company sued BDO in the Federal Court in June 2025 for $26,605,000 plus interest and costs. 

ASIC subsequently alleged that Dubber’s financial reports for the relevant years had been materially misstated and that BDO had failed to take reasonable steps to ensure that its audit reports were not false or misleading.

The regulator also found that the audit had not been conducted in accordance with the Australian Auditing Standards.

Off the back of the civil proceedings, ASIC deputy chair Court reiterated that auditor misconduct would continue to be a high enforcement priority for the regulator.

“Confidence and trust are fundamental to the role of company auditors, and critical to maintaining the integrity of our markets and enabling investors to make informed decisions,” she said.