ASIC accepts enforceable undertaking from former HIH auditor
A former auditor of HIH Insurance was last week banned from the profession until March 2010 following an enforceable undertaking agreed with ASIC.
Former Arthur Andersen partner John Buttle helped carry out the 2000 audit of HIH Insurance, the year before the firm folded in a colossal $5.3 billion bust.
ASIC found Arthur Andersen failed to properly manage the risk associated with the HIH audit, and that the audit lacked necessary evidence to support its findings.
The ASIC investigation drew similar conclusions to the HIH Royal Commission, which in its own report tabled in 2003 also found deficiencies in the Arthur Andersen audit.
Mr Buttle accepted the enforceable undertaking after the regulator expressed concerns that he “failed to carry out or perform adequately and properly the duties of an auditor in relation to the 2000 audit of HIH”.
In striking the deal ASIC took into account the fact Mr Buttle has not signed any audit reports since 2004. He is not currently practising as an auditor and co-operated with the ASIC investigation.
Former Arthur Andersen partner John Buttle helped carry out the 2000 audit of HIH Insurance, the year before the firm folded in a colossal $5.3 billion bust.
ASIC found Arthur Andersen failed to properly manage the risk associated with the HIH audit, and that the audit lacked necessary evidence to support its findings.
The ASIC investigation drew similar conclusions to the HIH Royal Commission, which in its own report tabled in 2003 also found deficiencies in the Arthur Andersen audit.
Mr Buttle accepted the enforceable undertaking after the regulator expressed concerns that he “failed to carry out or perform adequately and properly the duties of an auditor in relation to the 2000 audit of HIH”.
In striking the deal ASIC took into account the fact Mr Buttle has not signed any audit reports since 2004. He is not currently practising as an auditor and co-operated with the ASIC investigation.