An ASIC statement issued on Friday revealed former Banksia auditor Warren Sinnott has entered into an EU as part of the ongoing investigation into the collapsed financial services group and its sub-entities, under the terms of which the former auditor will be suspended until 2019.
An investigation by the regulator had found Mr Sinnott – who was previously lead auditor of entities including Securities Holdco Limited, Banksia Securities Limited and Cherry Fund Limited – had failed to comply with auditor’s duties and adequately perform his stated role.
Under the terms of the agreement, Mr Sinnott will now participate in a further 10 hours of CPD on audit methodology – having been found to have failed in managing sufficient audit procedures – and will undergo regular monitoring by ASIC-approved auditors.
“Auditors are important gatekeepers who are relied upon to provide assurance and market confidence in the quality of financial reports. Auditors who fail to adequately perform their duties will be held to account,” said ASIC commissioner John Price.
