Urgent action needed to safeguard the future of auditing in Australia

• ANAO review provides opportunity to reduce unnecessary complexity
• Audit regulation needs to be more supportive and sustainable
• ASIC must work transparently and collaboratively with the profession

CPA Australia is calling for significant improvements to ASIC’s audit oversight to restore trust, reduce regulatory burden, and strengthen the future of the profession.

Without it, the number of auditors in Australia will continue to plummet.

In a submission to the Australian National Audit Office (ANAO) report on ASIC’s Effectiveness in Regulating Registered Company Auditors, CPA Australia says urgent action is needed to make audit regulation more supportive and sustainable 

Tiffany Tan, Audit and Assurance Lead at CPA Australia, says it’s now vital for the well-known challenges in the oversight of the profession to be addressed. 

‘“Registered company auditors play a crucial role in safeguarding Australia’s financial markets and this ANAO review provides the opportunity to reduce unnecessary complexity and burden, while upholding quality and trust in financial markets,” she said.

“The number of registered company auditors has more than halved over the past two decades. Without urgent action to make audit regulation more supportive and sustainable, we risk not having enough professionals to meet the rising demand for assurance, especially in areas like sustainability reporting.

“CPA Australia believes there are significant opportunities to improve the timeliness, certainty and transparency of ASIC’s audit inspection process to enhance real-time feedback to firms, increase efficiency and improve market integrity.”

CPA Australia support ASIC’s continued role in the oversight of auditors, but says key improvements in process, culture and capability are needed.

“We would like the ANAO to consider opportunities to modernise audit inspection engagements and improve communications and information sharing within ASIC itself, as well as with auditors, firms and professional accounting bodies, including CPA Australia,” said Ms Tan.

“We want to see ASIC working more transparently and collaboratively with the profession. More open dialogue and sharing of findings will lead to better outcomes for all.”

Media contact

Simon Downes, External Affairs Lead
[email protected]
+61 0401 461 503