On Wednesday, ASIC confirmed that Robert Evett and EC Audit, who audited Halifax Investment Services between 2016-2018, were sentenced to pay fines of $10,000 and $40,000 respectively for failing to conduct audits in accordance with auditing standards.
EC Audit was found to have failed to understand Halifax’s business and failed to design appropriate tests to identify material misstatements in the accounts and Mr Evett failed “to take responsibility for the overall conduct of the audits and failed to ensure that staff with appropriate skills were conducting the audits”.
“Auditors are important gatekeepers to the market and play a key role in ensuring financial reports are free from misstatements,” ASIC commissioner Cathie Armour said.
“In taking this action against EC Audit, ASIC is sending a message to auditors to maintain a strong culture focused on audit quality and that any serious failure to comply with auditing standards will be prosecuted.”
The news follows the cancellation of Halifax’s licence in January, after the firm was placed into liquidation in 2019.
