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.

[www.moneymangement.com.au 11 January, 2010]