Australian Securities and Investments Commission Chair Sarah Court outlines expanded reporting and audit scrutiny, Big Four findings due by the end of 2026

In a keynote address at the G100 and CPA Australia Annual Reporting Luncheon, Australian Securities and Investments Commission Chair Sarah Court outlined the regulator’s increased focus on financial reporting and audit as a strategic and enforcement priority. ASIC is seeking to preserve accurate, accessible and reliable financial information while supporting efforts to make Australia’s reporting framework more proportionate and efficient. Since August 2025, it has issued more than AUD 5 million in infringement notices for late or missing financial reports and secured several million Australian dollars in court penalties. ASIC’s surveillance covers sustainability reporting, annual company reporting and superannuation reporting and audits. Its first review under the statutory sustainability reporting regime found improvements in the quality, quantity and consistency of climate related information. The regulator will also examine financial reports and audits of managed investment schemes, focusing on valuations and auditors’ valuation processes. This extends its scrutiny of unlisted assets after its latest superannuation review identified persistent weaknesses in trustees’ oversight and auditors’ testing of valuations. A sectorwide surveillance of complaints at the Big Four audit firms remains underway, with high level findings expected before the end of 2026, alongside formal investigations arising from allegations concerning KPMG. Court reiterated ASIC’s support for an audit firm licensing regime and stronger enforcement and disciplinary provisions, arguing that the current framework’s focus on individual auditors and engagements does not provide adequate oversight of large multidisciplinary firms.