An Analysis of ASIC Enforcement Against Auditors and Liquidators

Company and Securities Law Journal, Vol. 38, No. 2, 2021, pp. 112-137

28 Pages Posted: 10 Feb 2021

See all articles by Ian Ramsay

Ian Ramsay

Melbourne Law School - University of Melbourne

Miranda Webster

University of Melbourne - Law School

Date Written: October 15, 2020

Abstract

The Australian Securities and Investments Commission (ASIC) has emphasised the importance of its enforcement role in relation to auditors and liquidators. However, there is little detailed analysis of what enforcement action ASIC has undertaken against auditors and liquidators. Using several sources (ASIC enforcement reports, ASIC media releases, ASIC regulation of registered liquidator reports, and reports of the Companies Auditors Disciplinary Board and its predecessor), the authors analyse ASIC enforcement outcomes against auditors and liquidators between July 2011 and December 2019. The findings include (1) a particularly strong emphasis by ASIC on negotiated enforcement outcomes and administrative remedies rather than court based outcomes; (2) within these negotiated outcomes, a strategy to employ undertakings regarding professional education and independent review of the auditor’s or liquidator’s practice with the objective of improving the practice; (3) a particular enforcement focus on self-managed superannuation fund auditors; and (4) very limited use by ASIC of the Companies Auditors Disciplinary Board.

Keywords: enforcement; auditors; liquidators; Australian Securities and Investments Commission

Suggested Citation

Ramsay, Ian and Webster, Miranda, An Analysis of ASIC Enforcement Against Auditors and Liquidators (October 15, 2020). Company and Securities Law Journal, Vol. 38, No. 2, 2021, pp. 112-137, Available at SSRN: https://ssrn.com/abstract=3769734 or http://dx.doi.org/10.2139/ssrn.3769734

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Miranda Webster

University of Melbourne - Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia

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