In evidence to a parliamentary committee, the Australian Securities & Investments Commission (ASIC) outlined its supervisory and enforcement focus on market disclosure, particularly financial reporting, mandatory sustainability reporting and audit. ASIC highlighted that it regulates individual registered company auditors and authorised audit companies under the Corporations Act auditor independence and audit quality provisions, but does not regulate large accounting and consulting partnerships or non-registered staff within those firms. ASIC reported it has formalised regular information-sharing arrangements with professional accounting bodies, replacing ad hoc processes, to improve referral timeliness and reduce the risk of regulatory gaps for individuals who are both ASIC-regulated and members of a professional body. On surveillance, ASIC said it has reviewed the financial reports and audits of registrable superannuation entities for the first time, and referenced a September report calling for improvements by directors, superannuation trustees and auditors, particularly in valuing investments in unlisted funds. It also pointed to October reports finding frequent inability across firms of all sizes to demonstrate compliance with auditor independence and conflict-of-interest obligations, and outcomes from a separate October review of 254 financial reports (plus surveillance of 22 companies) that led to 18 companies making or agreeing to make changes, most commonly to improve disclosure of material business risks in the Operating and Financial Review. Looking ahead, ASIC said its 2025–26 audit surveillance program will increase to 25 audit file reviews from 15 in 2024–25, with files selected both randomly and where independence or conflict concerns arise, and that surveillance will now include reviews of mandatory sustainability reports with a pragmatic and proportionate early-years approach supported by guidance and education. ASIC also summarised recent auditor enforcement since June 2025, including registration conditions, referrals to the Companies Auditors Disciplinary Board resulting in cancellation of registration, infringement notices, and civil penalty proceedings in the Federal Court against BDO Audit (WA) Pty Ltd and one of its directors.
Australian Securities & Investments Commission 2026-03-20
Australian Securities & Investments Commission expands audit surveillance to 25 file reviews and formalises information sharing with professional bodies
The Australian Securities & Investments Commission (ASIC) focuses on market disclosure, financial reporting, and mandatory sustainability reporting, emphasizing auditor regulation under the Corporations Act. ASIC formalized information-sharing with accounting bodies and reviewed superannuation entities' financial reports, highlighting auditor independence and conflict-of-interest issues. ASIC plans to expand its audit surveillance program to include mandatory sustainability report reviews and summarized recent enforcement actions against auditors.