Audit inquiry reaffirms recommendations

12 November 2020
| By Chris Dastoor |
image
image
expand image

 

The Parliamentary Joint Committee on Corporations and Financial Services has tabled its final report on the regulation of auditing in Australia and has reaffirmed all 10 recommendations from the interim report in February 2020.

The committee said no further evidence since the interim report has been presented to the committee to contradict its earlier findings.

Committee chair, Senator James Patterson, said the timelines and thresholds for implementation of the recommendations would need to be examined to ensure that they were realistic.

“This particularly applies to recommendation seven on tendering for audit firms and recommendation nine regarding internal controls frameworks for financial reporting.”

The inquiry into the conduct of auditing firms was announced last year due to the scandal involving NAB and EY.

The recommendations had been welcomed by Chartered Accountants Australia and New Zealand (CA ANZ).

Amir Ghandar, CA ANZ reporting and assurance leader, said it was important to take action to promote trust and confidence in auditing.

“We called for a more integrated and consistent approach to how Australians are covered for risks such as fraud, misconduct and corporate failure in not only auditing but also management and governance, and we’re pleased this bears out in many of the recommendations,” Ghandar said.

“These recommendations will require dedicated commitment from government and the profession, particularly those recommendations with incremental costs such as enhancing accountability and audit of company internal controls, and transitioning to digital reporting.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 4 days ago