The Companies Auditors Disciplinary Board (CADB) has decided to cancel the registration of Queensland based registered auditor Mr Reginald Lance Williams.
ASIC successfully contended before CADB that Mr Williams had failed to carry out or perform adequately and properly the duties of an auditor in relation to his audit of the financial report of LM Managed Performance Fund for the year ended 30 June 2012 as follows:
- Sub-contentions (a)-(c) and (e)-(k) in respect of the carrying value, impairment and recoverability of loans and receivables; (sub-contention (d) was found in part).
- Issues regarding consideration of going concern;
- Issues regarding the accuracy and disclosure of related party loans;
- Sub-contentions (b) – (i) regarding the completeness and accuracy of, and the Manager’s rights and obligations to, management fees;
- Sub-contentions (a), (c) – (e) regarding the calculation of materiality; and
- Issues when forming his opinion on the 2012 LM Financial statements.
‘Auditors play a key role in supporting confidence in the quality of financial reports. ASIC will continue to take action to ensure auditors properly perform this important role,’ ASIC Commissioner John Price said.
Administrative Appeals Tribunal (AAT)
On 5 December 2018, Mr Williams applied to the AAT for a review of the CADB’s decision. Mr Williams also sought a stay of the operation and implementation of the CADB’s decision, confidentiality orders not to disclose Mr William’s name during the AAT review process and to suppress the publication of any evidence.
On 19 March 2019, the AAT refused Mr Williams’ applications for a stay, confidentiality and suppression of evidence. His application for a review of the CADB’s decision is proceeding.
Mr Williams has the right to appeal to the Federal Court of Australia for a review of the AAT’s decision
The CADB is an independent statutory body given functions and powers under the Corporations Act (the Act). The Board’s disciplinary responsibilities pursuant to the Act are intended to provide an incentive to registered auditors to maintain high professional standards. The Board also has a public protective and educative role by virtue of its jurisdiction to cancel or suspend the registration of an auditor.