ASIC - Compensation actions against auditors

Question

Senator McKIM: Firstly to you, Ms O'Rourke, I'm now aware the advance notice you were given about my interest in the reporting of offshore decommissioning was in general terms only and not specific to the complaint you've received from Twitter. I just want to acknowledge that and withdraw any implied or explicit criticism I made of your preparations there. Ms Court, you said earlier this morning you would have more to say about the role of auditors in relation to the First Guardian and Shield collapses. I'm not going to ask you to pre-empt whatever you are going to say. But can I ask you in general terms: if ASIC forms a view that the auditors to First Guardian and Shield were culpable in any way for the collapses, is it open to ASIC to take legal action against the auditors with a view to requiring them to contribute compensation for victims? Ms Court: It's certainly open to ASIC, in our view, to take legal action. The question of compensation is something I'd have to take on notice.

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000479 ASIC - Compensation actions against auditors.pdf (opens in a new tab)