The Australian Securities & Investments Commission (ASIC) published Report 819 on its oversight of financial reporting and audit for the 12 months to 30 June 2025, setting out surveillance findings, outcomes for company financial reports, and enforcement and compliance actions against registered company auditors. The report also includes observations on auditor reporting and on voluntary sustainability reporting intended to assist preparers of mandatory sustainability reports. ASIC reviewed 254 company financial reports, conducted 22 surveillances and reviewed 10 audit files at eight audit firms. Following the review, 18 entities made or agreed to make changes across 19 areas of concern, including Bell Group Holdings Pty Limited restating to consolidate a controlled subsidiary previously accounted for as an associate and Energy World Corporation Limited impairing assets by USD 793.8 million. Nine audit surveillances generated audit and other findings, which were notified to both the auditor and the company. Actions against registered company auditors included Companies Auditors Disciplinary Board proceedings resulting in an 18-month suspension for Joseph John Santangelo, a court-enforceable undertaking from David Makowa involving surrender of registration and an undertaking never to reapply, conditions imposed on Allan Facey requiring additional continuing professional development and an independent auditor review reported to ASIC, and interventions requiring 32 previously grandfathered companies to lodge audited financial reports, with 30 having since lodged. REP 819 is the third and final report from ASIC’s expanded program of work on financial report and audit quality. In the 2025–26 surveillance program, ASIC will increase audit file reviews to 25 and use a mix of risk-based and random selection, review sustainability reports for the year ended 31 December 2025 and share observations with the market, and continue using its regulatory tools including enforcement and compliance action where appropriate.
Australian Securities & Investments Commission 2025-10-31
Australian Securities & Investments Commission publishes FY 2024–25 financial reporting and audit surveillance results and lifts 2025–26 audit file reviews to 25
The Australian Securities & Investments Commission (ASIC) released Report 819 on its oversight of financial reporting and audit for the year ending 30 June 2025. The report highlights surveillance findings, enforcement actions, and compliance measures, including changes by 18 entities and disciplinary actions against auditors. ASIC plans to expand its 2025–26 surveillance program with increased audit file reviews and a focus on sustainability reports.