The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from auditor Graham Bruce Abbott after he breached auditor rotation requirements.
ASIC’s surveillance found Abbott breached the rotation requirements of the Corporations Act by playing a significant role in audits of listed companies Central West Gold NL and Morning Star Gold NL for a number of successive years.
Under rotation requirements, an auditor is not allowed to audit a listed company for five successive years without a two-year break under the Corporations Act.
Auditor rotation requirements are designed to maintain auditor independence and enhance the reliability and credibility of financial reports.
ASIC found Abbott lacked understanding of the importance of his auditor obligations by breaching rotation requirements.
Under the EU, Sydney-based Abbott has agreed not to practice as an auditor for a company or registered scheme under the Corporations Act.
