PwC partner Stephen James Bourke was the lead auditor for the audit of the financial report of Vocation Limited for the year ended 30 June 2014.
The big four firm was named as a defendant in the class action brought against failed education and training company Vocation Limited, being accused of misleading or deceptive conduct over its audits of Vocation’s 2014 financial statements.
ASIC believes that Mr Bourke should have gathered further audit evidence post-balance date and prior to signing the audit opinion concerning Vocation's dispute with the Victorian Department of Education and Early Childhood Development.
In the corporate regulator’s view, Mr Bourke should have obtained this further evidence in connection with the recognition and recoverability at year-end of a material accrued revenue asset and consideration of any possible impact on goodwill.
Accordingly, ASIC believes that Mr Bourke did not carry out, or perform adequately or properly the duties of an auditor in this respect.
Mr Bourke denies this is the case and says he took all appropriate steps.
A spokesperson from PwC told Accountants Daily that it has no further comment, and that the firm, through Mr Bourke, denies the matters raised by ASIC.