ASIC cancels debenture auditor's registration

The Australian Securities and Investments Commission has cancelled the registration of the auditor of Wickham Securities Limited, following the collapse of the $30 million property lender.

ASIC said that, under an enforceable undertaking, Brian Kingston, of Bapaume, Queensland, has agreed to never re-apply for registration or to perform any of the duties or functions of an auditor.

Kingston issued an unqualified audit opinion on the financial report of Wickham for the year ended 30 June 2012. ASIC said that "an adequate level of professional scepticism was not exercised in auditing the recoverability of loan assets and assessing 'going concern', and reliance was placed on representations from Wickham management and directors without having performed appropriate audit procedures to corroborate or confirm those representations."

The debenture issuer failed in late 2012. The liquidators, PPB, estimated that more than two thirds of the value of A$33 million in loans cannot be recovered.