ASIC signals stronger oversight of registered company auditors
ASIC wrote to registered company auditors reminding them of legal, ethical and professional obligations and flagged auditor misconduct as an enforcement priority.
ASIC is escalating oversight of the audit profession amid concerns about trust and firm conduct. Audit firms and audited entities should expect intensified surveillance, thematic reviews, and enforcement action against individual auditors and firms.
Elevated supervisory intensity increases regulatory, reputational, and restatement risk for audit firms and their clients.
Action Required
Review audit engagement quality controls and independence frameworks in anticipation of increased ASIC surveillance and enforcement.
Signals a supervisory priority shift with implications for audit quality, financial reporting reliability, and market confidence.
Audit committees and finance functions should engage external auditors on ASIC's expectations, monitor inspection outcomes, and reinforce documentation of judgment areas.
“ASIC has written to registered company auditors reminding them of their legal, ethical and professional obligations. ASIC is concerned about impacts to trust in the profession and confirmed auditor misconduct remains an enforcement priority.”