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 copies of recent media releases by visiting the Financial reporting section of ASIC's News centre.
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 copies of the audit inspection public reports and accompanying media releases issued to date as PDF files by browsing the Auditors topic on ASIC's Reports page.
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.
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.