ASIC has suspended the registration of Sydney auditor Richard Langley Stewart Hill, following a successful application to the disciplinary body, the Companies Auditors and Liquidators Disciplinary Board (CALDB).

The suspension, which started on 24 July 2015 and is for 12 months, follows an ASIC investigation into Mr Hill’s conduct.

ASIC Commissioner John Price said, ‘ASIC will 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 Hill, a director of Sydney-based DFK-Richard Hill Pty Limited: 

• was not a fit and proper person to remain registered as an auditor
• failed to comply with conditions attached to his registration, and
• failed to correctly fill out his annual statement on three occasions.

ASIC’s application to the CALDB followed an investigation that found Mr Hill failed to complete professional development courses, a condition attached to his registration. The CALDB found that compliance with the conditions was still outstanding.

The CALDB also found that Mr Hill failed to exercise proper care in completing his annual statements for three consecutive years. In each statement, Mr Hill falsely and misleadingly stated that his registration was not subject to conditions.

Download the CALDB’s media release and final orders

 In addition to his suspension, Mr Hill has undertaken to:

• complete professional development training in independence and ethics
• submit for ASIC approval a detailed compliance plan to fulfil the educational requirements to continue as a member of Chartered Accountants Australia and New Zealand, complete and lodge his auditor’s annual statements, and fulfil his of auditor rotation requirements, and
• engage an ASIC approved consultant to provide training to staff of DFK-Richard Hill’s staff and conduct reviews of Mr Hill’s observance of the compliance plan.

Mr Hill applied to the Administrative Appeals Tribunal for review of the CALDB decision. The AAT affirmed the Board’s decision in full.

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 actions against auditors who have failed to discharge their obligations include: 

• 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)