Nexia Perth draw ASIC's ire

Nexia Perth Audit Services has paid an infringement penalty for providing both audit and tax services to the same company.

The firm paid a $78,250 penalty to comply with an infringement notice issued by ASIC.

That notice came from an ASIC investigation which found there were reasonable grounds to suggest Nexia Perth Audit failed to conduct an audit of a listed company in accordance with the APES 110 Code of Ethics.

ASIC alleged the firm provided audit services despite a network firm of Nexia Perth having provided tax calculation services to the same company.

ASIC commissioner Kate O'Rouke said said the conduct was prohibited because it can create a self-review threat to auditor independence.

"Auditor independence is fundamental to maintaining trust in and integrity of audits," she said.

"The potential threat to auditor independence where an audit firm also provides non-audit services to an audit client have been the subject of much public debate in recent years.

"Some non-audit services are prohibited because of the inherent threat they pose. Where ASIC identifies such conduct, we will take action."

Payment of an infringement notice is not an admission of guilty or liability.