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Shoddy audits contributed to mortgage firm's collapse

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Australian Broker | 16 Jun 2014, 08:00 AM Agree 0
The chief auditor at a collapsed mortgage financing firm has been banned for not applying 'professional scepticism' to loans received
  • SIDBROKER | 16 Jun 2014, 09:22 AM Agree 0
    Here we go again. ASIC flexing its muscles over a small fry. We don`t need ASIC. They don`t take on the big end of town just the small people. Sure this fellow was at fault but seriously is this the best ASIC can do.
  • Tony Ramage | 16 Jun 2014, 10:22 AM Agree 0
    Rephrase the heading - Shoddey Audits contributed to LENDERS collapse or maybe Shoddey Audits contribute to BANKS collapse; either would be more appropiate
  • Denise Brailey BFCSA (Inc) | 16 Jun 2014, 01:38 PM Agree 0
    ASIC Commissioner told me face to face in Feb 2013: "Banksia Mortgages safe - nothing wrong with that one." In answer to my question "what about Banksia Mortgages being a Ponzi?" Broker News also reports sold off to European company. Now ASIC blame the auditor. Its about time ASIC blames itself for regulatory incompetence. Audits were checked according to the commish in 2012. The public have been mistreated with poor information from the regulator for too long and ASIC then tarnishes the industry as a whole. Meanwhile, consumers pay the highest price for this folly.
  • Extreme Punishment | 17 Jun 2014, 01:58 PM Agree 0
    WOW, did I read that right? Sinnott has agreed to do 10 hours of Professional Development for each year that he is suspended. How much was he doing before? If that's punishment or acceptable retraining for an auditor, then I think I have found the problem with the Auditing accreditation system / ASIC. Mortgage Brokers have to do much more than that each year just to keep accreditations, let alone retrain after a $663 million stuff-up ruining thousands of clients retirements. No wonder there has been major failures of audited companies over the years. Auditors look to be a protected species, unlike mortgage brokers.
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