ASIC has accepted John Gordon Owenell's application for the cancellation of his registration as a company auditor following ASIC raising concerns with Mr Owenell's alleged failure to comply with auditor independence and conflicts of interest requirements under the Corporations Act 2001 and the APES110 Code of Ethics for Professional Accountants (including Independence Standards).
ASIC's concerns arose from Mr Owenell's involvement in the audit of a large proprietary company (including as lead auditor and engagement partner) in circumstances where:
- Mr Owenell previously held the position of company secretary for the client (between 1988 and 2003)
- Mr Owenell conducted internal audits for the company (between 2005 and 2007), and
- Mr Owenell then audited the client for a consecutive period of 19 years (between 2007 and 2025).
ASIC was concerned that these matters, particularly Mr Owenell's long association with the client, created significant self-interest and familiarity threats to auditor independence that were not appropriately addressed.
ASIC identified the alleged independence failures through its proactive surveillance of auditor independence and conflicts of interest, which focused on auditors' compliance with independence obligations and used data-driven analysis to detect a range of possible independence issues: Report 817 Building trust: Auditors' compliance with independence and conflict of interest obligations (REP 817).
ASIC Commissioner Kate O'Rourke said, 'Auditor independence is fundamental to trust in Australia's financial reporting system. Auditors must avoid situations where their objectivity is compromised or could reasonably be seen to be compromised.'
No admissions have been made by Mr Owenell with respect to ASIC's concerns. ASIC acknowledges that Mr Owenell is experiencing significant health issues and was intending to retire in 2026.
