ASIC pushes major audit firms for self-assessments
Key points
- ASIC issued 42 findings across 15 comment forms to 11 audit firms following recent surveillance reviews.
- The regulatory scrutiny focuses on improving fundamental reporting standards without immediate direct stock exchange moves.
- The corporate watchdog aims to ensure auditors rigorously challenge management assumptions and provide reliable investor information.
The Australian Securities and Investments Commission issued 15 comment forms containing 42 findings to 11 audit firms after its surveillance reviews found shortcomings in financial reports.
The regulator stated that auditors failed to properly challenge management assumptions or document compliance with ethical and independence requirements.
"Our surveillance found that some report preparers and auditors did not challenge significant judgements, including for revenue recognition, impairment and asset valuations," said Australian Securities and Investments Commission Commissioner Kate O’Rourke.
The corporate watchdog requested that firms including BDO, Deloitte, Ernst & Young, Grant Thornton, KPMG and PwC undertake individual self-assessments and develop remediation action plans.
The review forms part of ongoing regulatory efforts to ensure reporting standards provide investors with dependable financial information.
Market participants continue to monitor regulatory developments regarding audit quality and corporate transparency across Australia.
