ob体育 has imposed conditions on the registration of company auditor Allan Facey of MNSA Pty Ltd.
ob体育 reviewed Mr Facey鈥檚 audit of an ASX-listed company鈥檚 financial report for the year ended 30 June 2023 and was concerned that he had not adequately and properly carried out his duties as an auditor in compliance with Australian Auditing Standards. Predominantly, ob体育 held concerns Mr Facey failed to gather and document sufficient appropriate audit evidence to support his audit opinion.
Responding to ob体育鈥檚 concerns, Mr Facey proposed conditions be imposed on his company auditor registration that ob体育 accepts will address the conduct. The conditions include that Mr Facey will, at his own expense:
- complete by 31 July 2025 an additional eight hours of continuing professional education about obtaining sufficient appropriate audit evidence and the preparation and assembly of audit documentation, and
- engage an independent registered company auditor to review and report to ob体育 on
- a root cause analysis and remedial actions implemented as a result of ob体育鈥檚 audit file review, and
- three financial report audits by Mr Facey of public interest entities for the year ended 30 June 2025.
Company auditors are trusted gatekeepers who are crucial to providing confidence in the quality of financial reports. ob体育 will consider audit quality concerns and take regulatory action when auditors fall short of the required standards.
Background
ob体育 registers and monitors the conduct of company auditors, which may be done on a proactive or reactive basis. On 30 October 2024, ob体育 released a Report 799 (ob体育鈥檚 oversight of financial reporting and audit 2023鈥�24) which summarised our findings from our financial reporting and audit surveillances and other complementary work during 1 July 2023 to 30 June 2024.
ob体育鈥檚 inquiries in relation to Mr Facey commenced as a result of information received from New Zealand鈥檚 Financial Markets Authority (FMA). Registered company auditors of Australia and New Zealand are mutually recognised to audit in both countries through the Trans-Tasman Mutual Recognition Act 1997 (Cth) and (NZ). ob体育 and the FMA are parties to a Memorandum of Understanding to co-operate and exchange information related to their regulatory and supervisory functions. A was issued by the FMA on 21 January 2025 about Mr Facey鈥檚 conduct in New Zealand.
ob体育 may impose, on application by a registered company auditor, conditions specified in the Regulations. If Mr Facey fails to comply with the conditions, ob体育 may apply to the Companies Auditors Disciplinary Board to cancel or suspend his company auditor registration.
Conditions imposed on company auditors may be viewed on