In State of Victoria v Goulburn Administration Services (In Liquidation) & Ors  VSC 654, the Victoria Supreme Court appointed two partners of Ernst & Young (EY) as special purpose liquidators (SPLs) of two companies, despite EY's involvement in carrying out contractual compliance audits before those companies went into liquidation.
The Court held that the proposed SPLs were not disqualified from appointment as 'auditors' under s 532(2)(c)(iii) of the Corporations Act 2001. They had not been personally involved in the contractual compliance audits carried out by EY. In any event, the disqualification for auditors related to financial auditors appointed by the company. There were good reasons why the partners should be appointed, and the Court retained overall supervisory control should any conflict arise.
'Auditors' are also disqualified in New Zealand under s 280(1)(c) of Companies Act 1993.
See Court decision here.