Appeal by Michael Bernard Shulman,Appeal by James Vincent Dickson
What happened
Michael Shulman and James Dickson, employees of Stannards Accountants and Advisors Pty Limited, appealed decisions made by a Fair Work Commission delegate. Shulman’s registration as an auditor was cancelled, and Dickson’s was suspended for three years. These decisions stemmed from findings that both failed to carry out their duties as auditors for the Health Services Union Victoria No 1 Branch (HSU Branch). They sought to stay these decisions pending their appeals. Both argued the decisions would cause reputational and financial damage.
What was decided
The Fair Work Commission refused to grant stay orders to Michael Shulman and James Dickson. The Commission found that while their appeals had an arguable case and reasonable prospects of success, the balance of convenience did not favour a stay. The Commission considered the public interest in maintaining confidence in registered organisation audits and the potential risk of undetected governance failings if the stays were granted. The Commission also noted the appellants did not disclose the extent of auditing work they would undertake if stays were granted.
What it means for employers
Employers should ensure their auditors are competent and adhere to professional standards. The Commission’s decision highlights the importance of maintaining public confidence in auditing processes and the potential consequences of failing to do so. Employers relying on audit services should review the qualifications and performance of their auditors.
What it means for employees
Employees acting as auditors should be aware of their duties and responsibilities under the Fair Work (Registered Organisations) Act. Failure to fulfil these duties can result in serious consequences, including cancellation or suspension of registration. Employees should understand the potential impact of adverse findings on their professional reputation and career.
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