The Australian Securities & Investments Commission has outlined its 2026-27 focus areas for financial reporting, audit and sustainability reporting oversight. The program will concentrate on areas requiring significant management judgement, including revenue recognition, asset impairment, and the recognition and measurement of financial instruments, while reviewing financial reports from listed and unlisted companies, registrable superannuation entities and managed investment schemes. On the audit side, ASIC plans to review 25 audit files and will continue compliance work on non-lodgement of financial reports by large proprietary companies and on registered company auditors’ annual statement obligations. For mandatory climate reporting, ASIC will keep its near-term focus on sustainability reports submitted by Group 1 entities. The financial reporting review will also examine disclosures on decommissioning and site-restoration provisions against new Australian Accounting Standards Board guidance in illustrative example D of AASB 137. Audit file selections will again draw on cases involving material corrections or potential material misstatements, other internal or external data indicating audit quality risks including independence threats, and a random sample. ASIC will monitor whether audit firms implement remedial actions in response to its findings and is separately engaging with the six largest firms on firm-wide responses to Report 817 on auditor independence and conflicts of interest. In sustainability reporting, ASIC highlighted updated FAQs on the review and audit of sustainability reports, relief for related schemes, an expanded register of individual relief decisions, and preliminary observations intended to assist 30 June reporters preparing their first sustainability reports. The Government has announced in the Budget that it proposes to consult on reforms to reduce reporting burden while maintaining core sustainability reporting requirements, and ASIC will participate in that process. Until any reforms are made, ASIC said its administration of the mandatory climate reporting framework will continue, alongside engagement with large audit firms on assurance methodologies where appropriate.
Australian Securities & Investments Commission2026-05-18
Australian Securities & Investments Commission sets 2026-27 reporting and audit surveillance priorities with 25 audit file reviews and a Group 1 climate reporting focus
The Australian Securities & Investments Commission has set its 2026–27 priorities for financial reporting, audit and sustainability reporting oversight, focusing on complex judgements in revenue recognition, asset impairment, financial instruments and decommissioning provisions. It will review financial reports across entities, examine 25 audit files with emphasis on audit quality and independence, and focus on mandatory climate and sustainability reports from Group 1 entities. ASIC will engage with large audit firms on responses to independence findings and assurance methodologies, and participate in the Government’s consultation on reforms to reduce sustainability reporting burdens.