This article is from the Australian Property Journal archive
THE former auditor of failed Allco Finance Group has given ASIC an enforceable undertaking, after he failed to notice the misclassification of $1.877 billion of debt.
ASIC has accepted an EU from KPMG Sydney auditor Christopher Neville Whittingham following an investigation into his audit of Allco’s financial report and its controlled entities for the financial year 1 July 2006 to 30 June 2007.
ASIC said it was concerned that Whittingham failed to carry out or adequately and properly perform his duties as an auditor, as well as failing to ensure that the audit was conducted in accordance with Australian Auditing Standards.
ASIC found that Allco’s financial report for the financial year 1 July 2006 to 30 June 2007 contained a misclassification of interest bearing loans as a non-current liability rather than a current liability, in the amount of $1,877,706,000.
ASIC notes that Whittingham acted swiftly once the error in relation to the misclassification of the IBLs came to his attention and he requested Allco to investigate and report to him as to how the misclassification had occurred.
Whittingham has undertaken to not practise as a registered auditor for a period of nine months and undertake an additional ten hours of continuing professional education on audit related matters during the period of suspension.
He will also have the first three audits conducted by him following the period of suspension reviewed by an ASIC approved KPMG registered company auditor; and pay $10,000 towards ASIC’s costs.
Australian Property Journal
