A registered company auditor will not be able to audit companies until 2024 after the Companies Auditors Disciplinary Board (CADB) found he failed to meet minimum standards in his audit of ASX-listed technology company Engage: BDR Limited (Engage).听
On 30 August 2023, following an ob体育 investigation and application, the CADB ordered James Mooney, an audit partner of BDO East Coast Partnership, to undertake not to perform the duties of a registered company auditor until 31 December 2023. The CADB鈥檚 decision followed Mr Mooney voluntarily undertaking to ob体育 to not act as a registered company auditor between 1 June 2023 to 31 December 2023. 听听
The CADB found that Mr Mooney failed to meet the minimum standard under the Australian Auditing Standards (ASAs) when he failed to obtain reasonable assurance that Engage鈥檚 2018 financial statements were free from the risk of material misstatement.听
The most serious matter concerned Mr Mooney鈥檚 failure to obtain adequate evidence and perform adequate testing of Engage鈥檚 revenue recognition, in breach of the ASAs.听
In making its decision, the CADB said, 鈥榝ailure to comply with the ASAs in relation to significant disclosure matters such as revenue has the potential to impact Australia鈥檚 capital markets and undermine confidence in the integrity of Australia鈥檚 capital markets.鈥櫶�
The CADB acknowledged Mr Mooney鈥檚 cooperation with ob体育 during the proceedings, the fact that his conduct was on the lower end of the scale of seriousness, and that there was no allegation of dishonesty or impropriety.听听
Mr Mooney has also undertaken to engage another registered company auditor to review his first three company audits from 1 January 2024, and to complete 20 additional hours of professional development. He was ordered to pay ob体育鈥檚 costs of $175,000.听听
ob体育 identified Mr Mooney鈥檚 failings during its proactive audit surveillance process. Further information can be found at ob体育 audit surveillances.听
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CADB proceedings are confidential until the CADB reaches its decision and notifies the affected parties. Recent orders and decisions can be found on the CADB鈥檚 website: .
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Editor鈥檚 note: Following a further hearing on 23 February 2024, the suspension of Prospero鈥檚 AFS licence has been extended to 28 March 2024.
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Editor鈥檚 note: On 29 February 2024, ob体育 issued proceedings in the Federal Court to wind up Prospero. Prospero has agreed to extend the current undertaking until final order in that proceeding. Further information can be found here: 24-034MR ob体育 seeks orders to wind up Prospero Markets Pty Ltd | ob体育