Liaison with auditing profession
ASIC liaises regularly with participants in the accounting and auditing industry, as well as other bodies and agencies with oversight of the profession. We welcome open and timely communication with industry participants.
ASIC engages with key stakeholders through a range of forums to discuss financial reporting and auditing issues and to keep the market updated on regulatory initiatives.
ASIC contributes to relevant policy issues both locally and internationally – our aim is to assist and promote compliance and to influence the direction of financial reporting and auditing.
Key liaison activities:
- Financial reporting, and
Consultation papers - ASIC seeks your feedback on topical issues currently under consideration.
ASIC reviews the annual and interim financial reports of a selection of listed companies and other significant entities, to monitor compliance with the Corporations Act and Australian Accounting Standards.
ASIC alerts the market prior to each reporting season about current topics or issues that will be the focus of the reviews.
You can view a copy of recent media releases by clicking on the links below:
- ASIC provides interim relief on key management personnel equity instrument disclosures, 14-146MR, 1 July 2014
- ASIC's findings from 31 December 2013 financial reports, 14-141MR, 27 June 2014
- Presentation of financial statements by stapled entities, 14-004MR, 8 January 2014
- ASIC's findings from 30 June 2013 financial reports, 13-341MR, 16 Decembewr 2013
- ASIC's focuses for 31 December 2013 financial reports, 13-297MR, 30 October 2013
- Financial reports of stapled entities, 13-272MR, 11 October 2013
- ASIC's focuses for 30 June 2013 financial reports, 13-160MR, 2 July 2013
- ASIC releases guidance for operating and financial reviews, 13-064MR, 27 March 2013
- ASIC's areas of focus for 31 December 2012 financial reports, 12-292MR, 27 November 2012
- ASIC’S areas of focus for 30 June 2012 financial reports, 12-140MR, 26 June 2012
- ASIC review of 30 June 2011 financial reports 11-312MR, 21 December 2011
- ASIC focuses attention on 30 June 2011 financial reports 11-139MR, 7 July 2011
- ASIC review of 30 June 2010 financial reports 10-282AD, 22 December 2010
- ASIC focuses attention on 2010 financial reports 10-147MR, 5 July 2010
- ASIC review of 30 June 2009 accounts and ares of focus for 31 December 2009 accounts 10-04MR, 11 January 2010
- ASIC review of 30 June 2009 financial reports 09-115MR, 29 June 2009
- ASIC review of 30 June 2008 financial reports and areas of focus for upcoming reporting period 08-218MR, 3 December 2008
ASIC’s audit inspection program commenced after the passing of the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 (CLERP 9). Following this, ASIC has been publishing public reports on its audit inspection program results to better inform interested stakeholders of the key observations and findings.
You can view and download a copy of the audit inspection public reports and accompanying media releases issued to date as PDF files by clicking on the links below:
- REP 397 Audit inspection program report for 2012-2013 (Released 27 June 2014)
- REP 317 Audit inspection program report for 2011-2012 (Released 4 December 2012)
- REP 242 Audit inspection program public report for 2009–10 (Released 29 June 2011)
- REP 192 Audit inspection program public report for 2008-2009 (Released 11 March 2010)
- REP 130 Audit inspection program public report for 2006-07 (Released 12 June 2008)
- REP 78 Audit inspection program (Released August 2006)
- REP 58 Report on the auditor inspection program (Released November 2005)
View speeches and presentations made to the financial and audit community.
Regional Accounting Liaison Meetings – These meetings are generally held bi-annually in ASIC offices nationally. Some of the topics discussed include: financial reporting surveillance program, audit inspection program, domestic regulatory and policy developments, international regulatory developments, ASIC Regional Commissioner update and other topical matters.
The agencies and bodies we liaise with in the domestic market environment include:
Australian Financial Reporting Council (FRC)
The FRC functions include oversight of the processes for setting accounting and auditing standards, and monitoring the effectiveness of auditor independence requirements in Australia. Under ASIC’s Memorandum of Understanding with the FRC, we report periodically, particularly noting any systemic audit independence issues identified.
The FRC broadly oversees the accounting standard setting process for the private and public sectors. It comprises key stakeholders from the business community, the professional accounting bodies, governments and regulatory agencies. Members of the FRC are appointed by the Treasurer. See the FRC website for more information about the FRC.
Companies Auditors and Liquidators Disciplinary Board (CALDB)
The CALDB was established in 1990 for the purposes of hearing administrative or conduct applications made by ASIC or Australian Prudential Regulation Authority (APRA) against Auditors and Liquidators. See the CALDB's website for further information about its composition and functions.
ASIC refers cases involving alleged financial improprieties or breaches of the auditor conduct requirements to the CALDB.
The CALDB is responsible for determining whether a registered auditor or liquidator should be dealt with under the Act in circumstances where he/she:
- fails to carry out his/her duties and functions adequately and properly;
- is not a fit and proper person to remain registered;
- is subject to disqualification; or
- is otherwise ineligible to remain registered.
The CALDB, if it is satisfied that some or all of the relevant contentions in an application made by ASIC have been established under the Act, may make the following orders:
- cancel or suspend the Respondent's registration; and/or
- admonish or reprimand the Respondent; and/or
- require the Respondent to give an undertaking.
ASIC generally publishes the outcomes of any decisions made by the CALDB on its website. You may search through ASIC's media releases for these adhoc articles.
Australian Accounting Standards Board (AASB)
The AASB sets standards for the private and public sectors and has its own research and administrative staff. It is overseen by the Financial Reporting Council (FRC). Australia has adopted International Financial Reporting Standards since 1 January 2005, in line with strategic direction from the FRC. A technical issue may be identified by the International Accounting Standards Board (IASB) or the International Financial Reporting Interpretations Committee (IFRIC).Therefore issues on the IASB and/or IFRIC work programs are also included on the AASB work program. The AASB website has information about its technical program, newsletter and publications. It also lists members of the AASB.
Auditing and Assurance Standards Board (AUASB)
The AUASB is an independent, statutory agency responsible for developing standards and guidance for auditors and providers of other assurance services. It is overseen by the Financial Reporting Council (FRC). Since April 2006, the AUASB has released Australian Auditing Standards (ASAs) based on the ISAs issued by the International Auditing and Assurance Standards Board (IAASB), in line with strategic direction from the FRC. Therefore, issues on the IAASB work program are also included on the AUASB work program. The AUASB website contains information about its work program, members, standards and news.
Accounting Professional & Ethical Standards Board (APESB)
The APESB was established as an independent body in February 2006, as an initiative of the professional bodies. The primary objective of the APESB is the development and issuing of appropriate professional and ethical standards which apply to the membership of the three accounting professional bodies. Accountants who are members of CPA Australia, ICAA and NIA must comply with the professional and ethical standards approved by the APESB. APES 110 Code of Ethics for Professional Accountants, other APESB professional standards and guidance notes are binding on all members of these accounting professional bodies. Broadly, these standards aim to regulate members' ethical conduct and the performance of professional services across various types of professional engagements. The APESB website has further information about its roles and responsibilities.
The agencies and bodies we liaise with in the global international market environment include:
International Organisation of Securities Commissions (IOSCO) and International Forum of Independent Audit Regulators (IFIAR)
ASIC is represented at IOSCO and IFIAR. These forums provide opportunities for co-operation and knowledge-sharing in order to participate and gain an enhanced understanding of issues facing accountants and auditors internationally. For more information about these bodies refer to the IOSCO website or IFIAR website.
ASIC liaises with international financial reporting and audit oversight bodies on a variety of issues of common interest. This includes conducting joint audit inspections of Australian auditors where appropriate.