Westpoint collapse: ASIC imposes ban on three auditors
Sydney Morning Herald
Tuesday August 18, 2009
THE corporate watchdog has banned three KPMG audit partners from practising as auditors for up to two years after their involvement in the Westpoint collapse in 2006.The Australian Securities and Investments Commission said three partners in KPMG's Perth office, Brett Fullarton, Robert Kelly and Jonathan Robinson, had breached auditing standards. It announced the trio would not practise as auditors for two years, 18 months and nine months respectively.It said the partners had agreed to enforceable undertakings, which include the bans on working as auditors, the need for 10 hours of additional professional training and a bill for all ASIC investigation and legal costs.It said Mr Fullarton's and Mr Kelly's audits of Westpoint entities were inadequate. It also criticised their treatment of the effects of Westpoint's fund-raising through promissory notes.Westpoint collapsed after investors had placed more than $393 million in risky mezzanine investment products, used to fund the group's development projects.KPMG's national managing partner of audit, Peter Nash, said yesterday KPMG and the three partners acknowledged ASIC's concerns but did not agree with them.
© 2009 Sydney Morning Herald