ASIC has suspended the registration of Victorian auditor Philip James Dowsley, following a successful application to the Companies Auditors and Liquidators Disciplinary Board (CALDB).

The six (6) month suspension follows an ASIC investigation into the conduct of Mr Dowsley, a sole practitioner based in Kew.

ASIC Commissioner John Price said, ‘ASIC will continue to take action against auditors who fail to comply with conditions attached to their registration and whose conduct falls short of required professional standards.’

The CALDB found Mr Dowsley:

• failed to comply with a condition attached to his registration;
• failed to correctly complete five separate forms lodged with ASIC; namely three annual auditor statements  his application for registration as an SMSF auditor and his SMSF auditor annual statement and.
• was not a fit and proper person to remain registered as an auditor.

ASIC’s application to the CALDB followed an investigation that found Mr Dowsley failed to comply with conditions that were attached to his registration as a company auditor following a previous ASIC investigation in 2012.  The CALDB found that compliance with the conditions was still outstanding.

The CALDB also found that Mr Dowsley was prepared to attest to the accuracy and completeness of the forms by signing them without fully or properly checking them. In each statement, Mr Dowsley falsely and misleadingly stated that his registration was not subject to any conditions. This course of conduct occurred over a period of three years and was found by the CALDB to be "grossly careless".

After taking into account the medical problems he experienced during the relevant period, the CALDB suspended Mr Dowsley's registration as a company auditor and ordered that he provide undertakings to the CALDB. These included undertakings to:

• comply with the current condition on his registration,
• continue his current medical treatment during the period of suspension and to have his then medical fitness independently verified before the end of that period,
• complete additional professional development activity; and
• following the period of suspensions, subject his company audits to peer review.

Download the CALDB’s media release and final orders

Background

ASIC’s Annual Report details work undertaken to ensure financial reports contain useful and meaningful information for investors and other users. Part of this work is to ensure auditors comply with registration conditions and the Australian Auditing Standards.

ASIC’s recent actions against auditors who have failed to discharge their obligations include:

• A 12 month suspension of Sydney Auditor Richard Hill following non-compliance with registration conditions (refer: 15-202MR)
• The cancellation of former Victorian auditor Joanne Loh’s registration, following a deficient audit of Gippsland Secured Investments (refer: 14-340MR)
• A five year suspension of former Banksia auditor Warren John Sinnott (refer: 14-127MR)
• A three year suspension of Wayne John Wessels, former auditor of whitegoods distributor Kleenmaid (refer: 14-082MR)
• An enforceable undertaking (EU) entered into by Martin George Thompson and Allan Ni Kwan Kwok of Wong & Mayes' Chartered Accountants (refer: 14-028MR)
• ASIC accepting an EU from Wangarrata-based auditor, Anthony Hyndman, which permanently prevents him from practising as an auditor (refer: 13-278MR)
• Cancelling the registration of the auditor of Wickham Securities, Brian Patrick Kingston (refer: 13-156MR)