The New Zealand Financial Markets Authority (FMA) issued a public warning to Sydney-based auditor Allan Facey for failing to comply with two standard conditions of his New Zealand auditor’s licence while acting as Engagement Quality Control Reviewer for the audit of Alliant Perpetual, a former FMC reporting entity. The licence had been issued under the Auditor Regulation Act 2011 pursuant to the Trans-Tasman Mutual Recognition Act 1997 and was cancelled at Facey’s request before the warning was issued. The FMA found there was insufficient evidence that, when the auditor’s report was dated, Facey had performed an objective evaluation of significant judgements made by the engagement team and the conclusions reached, and that audit work he recorded five months later did not demonstrate compliance with auditing and assurance standards. It also concluded Facey failed to promptly notify the FMA after becoming aware an FMC audit engagement he worked on or reviewed had not been carried out in accordance with auditing and assurance standards, including that the engagement quality control review had not been completed and ISA (NZ) 220 requirements had not been met.
New Zealand Financial Markets Authority 2025-01-21
New Zealand Financial Markets Authority issues public warning to former FMC auditor Allan Facey over engagement quality control review failures
The New Zealand Financial Markets Authority issued a public warning to Sydney-based auditor Allan Facey for non-compliance with standard conditions of his New Zealand auditor’s licence during his role as Engagement Quality Control Reviewer for Alliant Perpetual. The FMA cited insufficient evidence of objective evaluation and delayed audit work recording, along with a failure to promptly notify the FMA of non-compliance with auditing standards.