Registered company auditor Rocco (Roy) Luciano Spagnolo has been suspended from practice for 12 months by the Companies Auditors Disciplinary Board (CADB) after it found two of his audits failed to comply with auditing standards.
Mr Spagnolo, a director of Corporate Audit & Advisory Services Pty Ltd, was responsible for auditing the 30 June 2019 and 30 June 2020 financial reports of Alliance Insurance Broking Services Pty Ltd, now known as Alliance Management Group Pty Ltd. Alliance Insurance Broking Services held an Australian financial services (AFS) licence during the time of the audits.
Following an ASIC investigation and application, the CADB found that Mr Spagnolo failed to adequately perform the duties of an auditor by failing to:
obtain sufficient audit evidence of client monies held in trust,
plan and perform the audits with an appropriate level of professional scepticism,
identify and evaluate circumstances and relationships that could threaten his independence as an auditor, and
fulfil his reporting obligations to ASIC.
The CADB acknowledged Mr Spagnolo’s cooperation with ASIC and remorse for his conduct, which it factored into its decision.
Mr Spagnolo has also undertaken to:
not audit listed entities or AFS-licensed entities for three years,
have his first three audits following his suspension and his first two audits of AFS licenced entities after the three year period reviewed by another registered company auditor, and
meet certain continuing professional development requirements.
He was also ordered to pay ASIC’s costs of $20,000.
ASIC identified Mr Spagnolo’s failings while investigating Alliance Insurance Broking Services and its director Renato De Maria over the alleged misuse of client funds (23-079MR).