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21 January 2025

Allan Facey

Background

The Financial Markets Authority issued a public warning to Mr. Allan Facey, a Sydney-based auditor, regarding his conduct as the Engagement Quality Control Reviewer (EQR) for the audit of Alliant Perpetual.

The decision stems from the audit of former FMC reporting entity Alliant Perpetual’s financial statements for the year ended 31 January 2022. Mr. Sam Danieli, a Sydney based auditor, conducted the audit and Mr. Facey was the EQR.

The FMA is satisfied there was insufficient evidence to demonstrate that, at the time the auditor’s report was dated, Mr. Facey had performed an objective evaluation of the significant judgements made by the engagement team and the conclusions reached in formulating the auditor’s report. Audit work recorded by Mr. Facey five months after the auditor’s report was dated did not assist in establishing compliance with auditing and assurance standards.

Timeline

21 January 2025

FMA Head of Auditing, Financial Reporting, and Climate Related Disclosures, Jacco Moison, said: “The EQR role is important because it should ensure that an objective evaluation of the significant judgements made by the engagement team has been performed and the conclusions on these judgements are supported by sufficient audit evidence. Licensed auditors must promptly notify the FMA after they become aware that an audit engagement they have worked on or reviewed has not been carried out according to the auditing and assurance standards. Remaining silent harms the transparency of the market and the integrity of the auditing profession.”