A review auditor involved in the audit of iSignthis’ 2018 financial statements has been admonished by the Companies Auditors Disciplinary Board (CADB) for failing to adequately perform their duties. The auditor, a partner at Grant Thornton, has been ordered to pay the Australian Securities and Investments Commission (ASIC) costs of $490,000.
The action follows a Federal Court finding last year that iSignthis misled investors regarding its 2018 revenue and failed to disclose the termination of a significant deal with Visa. ASIC had alleged that iSignthis also failed to reveal that $3 million of $5 million in revenues earned in the first half of 2018 related to outsourced projects costing $2.85 million.
The CADB’s deputy chair, Sarah Court, emphasised the importance of the decision, noting that it is the first time the board has determined the role of review auditors and engagement quality control reviewers in the conduct of an audit. She stated that these individuals play a crucial role in reviewing auditor conduct and significant judgements made by audit engagement teams during company audits.
iSignthis, once valued at nearly $1.2 billion, is a payments group that provides authentication and payment processing services. The company has faced increased scrutiny over its financial reporting practices, leading to significant regulatory and legal challenges.
