Australia’s regulator alleges unqualified audit opinions were issued despite insufficient work, linked to a $446m investor loss.
The Australian Securities and Investments Commission has launched Federal Court action against Auditeo Australia and two auditors, alleging false or misleading audit reports for the First Guardian Master Fund between 2020 and 2024. ASIC claims the firm and auditors Ajm Didarul Islam Khan and Brian Robert Taylor issued unqualified opinions without reasonable basis or required audit work under standards.
The First Guardian Master Fund collapsed six months after Auditeo’s unqualified reports, exposing over 6,000 investors to losses estimated at A$446m ($312m). ASIC chair Sarah Court stated the alleged failures occurred before the fund’s liquidation, which had a devastating impact on investors.
The case aligns with ASIC’s 2026 enforcement priority to hold accountable those linked to First Guardian’s collapse. Khan, Auditeo’s sole director, was the lead auditor for the fund.