VET college auditor from PricewaterhouseCoopers loses ticket over Vocation accounts

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This was published 6 years ago

VET college auditor from PricewaterhouseCoopers loses ticket over Vocation accounts

By Sarah Danckert

A senior PricewaterhouseCoopers auditor has handed in his ticket after being accused by the corporate watchdog of botching his audit of collapsed listed vocational education outfit Vocation.

The Australian Securities and Investments Commission said on Monday that Steve Bourke had cancelled his registration as a company auditor after deciding to retire.

Thousands of students at Vocation-owned colleges were affected by the collapse of the company.

Thousands of students at Vocation-owned colleges were affected by the collapse of the company.

His decision to retire comes after Business Day revealed Mr Bourke and PwC had been joined as defendants to a class action claim being brought against Vocation and its advisers over statements it made to the market about its financial wherewithal ahead of its collapse.

Vocation once sported a $400 million-plus market capitalisation until its regulatory issues became apparent.

PwC's Steve Bourke was lead auditor on the audit of Vocation's 2014 financial report.

PwC's Steve Bourke was lead auditor on the audit of Vocation's 2014 financial report.

The company collapsed in late 2015 after its two largest colleges BAWM and Aspin were stripped of their registrations and government funding for breaching teaching quality standards.

Mr Bourke was lead auditor on the audit of Vocation's 2014 financial report.

It is not clear at this stage if ASIC intends to take any action against PwC.

ASIC is also pursuing civil legal action against the company, its former chief executive Mark Hutchinson, former chief financial officer Manvinder Grewal and former chairman John Dawkins – who is also a former federal education minister.

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ASIC alleges the company and its officers and directors engaged in misleading and deceptive conduct over disclosures Vocation made to the market in regards to its dispute with the Victorian Education Department as well as other issues.

In a statement on Monday, ASIC said it believed Mr Bourke did not carry out or adequately or properly perform the duties of an auditor.

"ASIC believes Mr Bourke should have gathered further audit evidence post-balance date and prior to signing the audit opinion concerning Vocation's dispute with the Victorian Department of Education and Early Childhood Development," the statement said.

"In ASIC's view, Mr Bourke should have obtained this further evidence in connection with the recognition and recoverability at year end of a material accrued revenue asset and consideration of any possible impact on goodwill."

Mr Bourke denies the allegations made by the regulator.

Mr Bourke said he had nothing further to say when contacted by Business Day on Monday. PwC is defending the class action claim. The former Vocation directors and officers deny any wrongdoing.

A spokeswoman for PwC said Mr Bourke would remain at the firm.

"Mr Bourke remains a valued member of the firm's audit practice and will continue as a partner, including to provide technical support and consultation to audit teams, and act as CFO for the audit practice," she said.

"He will also look to assist on client engagements and other matters that do not require his sign off as a registered company auditor."

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