ASIC cracks down on auditors
ASIC has accepted enforceable undertakings from two partners of accounting firm Moore Stephens Sydney after an investigation found that audits they had conducted were inadequate.
The enforceable undertakings provide that Christopher Chandran and Scott Whiddett must not practice as registered auditors for 12 months.
They must both participate in an additional 15 hours of continuing professional audit-related education during that 12 month period and have their next five audits following the 12 month period reviewed by an ASIC approved registered auditor.
An ASIC investigation found that an audit of Estate Property Group for the financial year ended 30 June 2006 conducted by Chandran was inadequate, and that as lead auditor he failed to ensure the audit complied with Australian Auditing Standards as required by the Corporations Act 2001.
ASIC found that Whiddett was the lead auditor and signed unqualified audit opinions in the financial reports of Australian Capital Reserve for the financial year ended 30 June 2006; Estate on Miller for the financial year ended 30 June 2005; and Estate Property Group for the financial year ended 30 June 2005.
It was found that the audits conducted by Whiddett were also inadequate and that he failed to ensure the audits complied with Australian Auditing Standards.
Moore Stephens Sydney is an independent member of the Moore Stephens Australia Network.
AUTHOR
Chris Kennedy
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