The Australian Securities and Investments Commission has launched Federal Court proceedings against Auditeo Australia and auditors Ajm Didarul Islam Khan and Brian Robert Taylor over alleged serious failures in audits of the First Guardian Master Fund and its compliance plan for the 2020 to 2024 financial years. ASIC alleges they issued or authorized unqualified audit reports that were materially false or misleading because the opinions lacked a reasonable basis and required audit work was not performed. The regulator alleges the defendants failed to obtain sufficient and appropriate evidence, comply with auditing and assurance standards, and exercise due care and skill. Auditeo’s files allegedly do not show that a financial audit was conducted for 2021, while approximately AUD 137 million of reported assets in 2022 and AUD 170 million in 2023 went untested. Auditeo and Taylor also allegedly assessed the wrong compliance plan for part of 2022 and all of 2023. ASIC is seeking declarations, civil penalties, injunctions restraining certain audit activities and other court orders. More than 6,000 Australians were exposed to First Guardian’s collapse, with liquidators warning that losses could reach AUD 446 million.
Australian Securities & Investments Commission2026-07-31
Australian Securities and Investments Commission sues Auditeo and two auditors over alleged First Guardian audit failures
The Australian Securities and Investments Commission has sued Auditeo Australia and two auditors over allegedly false or misleading unqualified audit reports for the First Guardian Master Fund. Alleged failures include missing audit work, up to AUD 170 million in untested assets and use of the wrong compliance plan. ASIC is seeking civil penalties, injunctions and other orders.