ASICs Financial Reporting Surveillance Program
ASIC alerts the market prior to each reporting season about current topics or issues that will be the focus of the reviews. For the results of the program, see the What's New section on the For preparers of financial reports page.
Each step in the financial reporting surveillance program is outlined below.
Selection of accounts for review
Our selections are based on a number of criteria which reflect 'hot topics' in the market and current accounting and disclosure issues. Some companies may be included in the surveillance as a result of other activities in ASIC or based on public complaints. A company will not be aware we have undertaken the review unless there are issues which we feel need clarification by the company.
The accounts are reviewed by our officers to determine compliance with the Corporations Act and accounting standards. We consider areas of potential non-compliance and assess their materiality.
Contact with companies
If ASIC has concerns arising from our desktop review, we may contact the company for further information. We will make the company aware of our concerns and invite a response to clarify the disclosure and the accounting treatment used.
Remedial action or no further action as appropriate
We will consider the response by the company and determine if further discussion is required or if our concerns are satisfied. If the latter, there will be no further action. In the event that we still have concerns, our courses of remedial action range from reissuing of financial statements to where
Issue media release summarising findings
At the end of each reporting season, ASIC publishes the findings of our surveillance program. The report aims to keep preparers of financial reports informed about current topics they should focus on and the level of compliance we have found with the broader objective of improving financial reporting quality.