Australia court ruling keeps former auditor ban in place

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Court upholds auditor ban

Highlights

The Full Court of the Federal Court upholds the cancellation of Williams' auditor registration and dismisses his appeal related to the 2012 LM Managed Performance Fund audit.
Williams is ordered to pay $200,000 in costs to ASIC after his registration was cancelled by the Companies Auditors Disciplinary Board in December 2018.
The ruling reinforces the authority of disciplinary bodies such as CADB and ASIC's oversight powers to uphold professional standards in Australian audit practice.

Appeal ruling and disciplinary basis

As reported by ASIC, the Full Court of the Federal Court has upheld an earlier judgment by Justice Perry and dismissed Williams' appeal against a 2018 decision by the Companies Auditors Disciplinary Board, or CADB, to cancel his registration. The court also orders Williams to pay the costs of the appeal.

The disciplinary case stems from Williams' audit of the LM Managed Performance Fund for the year ended 30 June 2012. The Full Court affirms the primary judge's conclusion that no legal or jurisdictional error is established in the CADB's decision-making process, and finds that Williams is responsible for the audit engagement and that the deficiencies identified by the board justify disciplinary action.

Following an application by ASIC, the CADB cancels Williams' registration in December 2018 and orders him to pay ASIC's costs fixed at $200,000. On 18 June 2025, the Federal Court dismisses his application for judicial review of that decision, before the matter proceeds to the Full Court on appeal.

Implications for audit oversight in Australia

ASIC Commissioner Kate O'Rourke says the judgment reinforces the important responsibilities and high standards expected of registered company auditors. She says auditors play a critical role in maintaining confidence in Australia's financial reporting framework and that they remain ultimately responsible for the quality of audits conducted under their supervision.

The ruling also backs the role of specialist disciplinary bodies such as the CADB in assessing professional conduct and compliance with auditing standards. ASIC says the board's powers to cancel or suspend registrations are designed to maintain professional standards, protect the public and support confidence in the country's financial reporting system.

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