ASIC has accepted a court enforceable undertaking (CEU) from Perth-based registered company auditor, David Makowa of DM Advisory Services.
Following significant audit quality findings identified by ASIC, Mr Makowa has undertaken to surrender his registration as a company auditor and to never re-apply.
Mr Makowa audited the profit and loss statements and balance sheets of Brite Advisors Pty Ltd (Receivers and Managers appointed) (in liquidation) (Brite Advisors), an Australian Financial Services Licensee, and provided required opinions for the financial years ended 30 June 2019 to 2022 (the FY19, FY20, FY21 and FY22 Audits).
Mr Makowa admits he failed to carry out or perform the FY19, FY20, FY21 and FY22 Audits adequately and in accordance with the Australian Auditing Standards and Standards on Assurance Engagements.
ASIC Deputy Chair Sarah Court said, 'Confidence and trust underpin the role of company auditors and the independent assurance they provide. This trust is critical to maintaining the integrity of our capital markets and enabling investors to make informed decisions. Auditor misconduct is an enforcement priority for ASIC and we will continue to investigate where we identify potential misconduct or non-compliance.'
Background
ASIC registers, supervises and reviews the conduct of company auditors. Company auditors are trusted gatekeepers using their professional competence, skills and capabilities to provide assurance and confidence.
ASIC's action in relation to Mr Makowa arose from ASIC's investigation into Brite Advisors Pty Ltd.
- CEUs are publicly available on the register Court enforceable undertakings register.
- Information Sheet 28 About the court enforceable undertakings register (INFO 28) provides more information about ASIC's CEU register.
- ASIC's policy on CEUs is outlined in Regulatory Guide Court enforceable undertakings (RG 100).
- Further information about ASIC's investigation into Brite Advisors Pty Ltd can be found at Brite Advisors. This investigation is ongoing.
