The Companies Auditors Disciplinary Board (CADB) has cancelled the registration of Sydney company auditor Sam Danieli, director of A D Danieli Audit Pty Ltd, after an application brought by ASIC following its investigation. The cancellation came into effect at the end of day on 16 December 2025.
Mr Danieli has applied to the Administrative Review Tribunal for a stay and review of the CADB's decision.
For certain types of audits, including for listed companies, the auditing standards require an engagement partner to engage and discuss significant matters and judgements arising during the audit engagement with a second person, now known as an 'engagement quality reviewer' (EQR).
ASIC's investigation uncovered what it alleged in the CADB were multiple and systemic breaches of the auditing standard requirements related to the engagement quality review by Mr Danieli in his capacity as engagement partner. The CADB found that Mr Danieli did not have any discussions with the EQR prior to Mr Danieli signing and dating the audit reports across 5 ASX-listed companies audited in each of FY23 and FY24. The engagement quality reviews across the 10 audits were never completed.
The CADB determined that Mr Danieli repeatedly and without justification breached his duties as an auditor, and that Mr Danieli knew or ought to have known what was required of him, particularly as he was reminded by third parties of his obligations, yet persisted in breaching them. The CADB found that Mr Danieli's conduct was serious and prolonged and he is not a person of the character who can be relied upon to comply with mandatory auditing standards.
The CADB also ordered:
- publication of its decision, and
- Mr Danieli pay ASIC's costs fixed at $73,000.
