Audit and assurance
Content Summary
2025
11 April 2025 - CPA Australia supports ASIC’s continued role in auditor oversight but highlights the need for improvements in process, culture and capability. We encourage the ANAO to explore opportunities to modernise audit inspection engagements and enhance communication and information sharing within ASIC and with auditors, firms and professional bodies, including CPA Australia.
27 March 2025 - We support the IAASB’s proposal to replace ‘listed entities’ with ‘publicly traded entities’ (PTE) in the ISQMs and ISAs as a sensible step. However, future refinements to the PTE and PIE definitions should be more unified between the IAASB and IESBA to avoid fragmentation and inconsistencies in regulatory adoption. We also recommend evidence-based research and cost-benefit analysis before expanding differential requirements beyond publicly traded entities.
28 February 2025 - We are supportive of the adoption of ISA for LCEs in New Zealand, including the addition of a section dealing with the audit of Service Performance Information (SPI) to the proposed ISA (NZ) for Less Complex Entities (ISA (NZ) for LCEs). We believe that most of the potential risks can be mitigated with education and guidance. Issues such as perception of the audit or the challenges of managing two audit methodologies for firms that choose to do so, can be managed with education and guidance.
2024
28 November 2024 - To ensure consistency in practice, we advocate for extending the prohibition on the use of direct assistance by internal auditors to sustainability assurance engagements. However, we recommend that the AUASB reevaluate the decision to remove this prohibition in ASA 610, and therefore, on sustainability assurance in the near future.
15 November 2024 - In our joint submission, we emphasise the importance of a practical and clearly understood phasing of mandatory assurance for assurance practitioners, preparers, those charged with governance, users of financial reports, and other key stakeholders.
17 July 2024 - In our joint submission, we support the development of a single review standard that is principles-based, framework neutral and developed with assurance practitioners who are not the auditor of the entity – mainly tier 3 charities – in mind. In our view, a dedicated standard for this type of review engagement will assist assurance practitioners in understanding the scope of a review of SPI and promote consistency in these engagements.
5 June 2024 - In our submission, we consider the extant standard on fraud to be largely fit for purpose, although it could benefit from some minor targeted enhancements. We are concerned about continued trend of increasing the length of standards and do not believe that the proposals will change auditor behavior, except to the extent that it is significantly increasing the responsibilities of the auditor with respect to preventing and detecting fraud.
4 June 2024 - In our joint submission, we support the same definition of a public interest entity (PIE) being used for the auditing and assurance standards and the professional and ethical standards. However, there is little support for extending the engagement quality review (EQR) requirements to PIEs, and mixed views on extending the requirement to report key audit matters (KAM) to PIEs.
3 May 2024 - In our joint submission, we support a phased approach to climate and sustainability assurance. However, we suggest deferring the phasing of mandatory assurance for at least a year to balance ambition with practicality. There's widespread agreement on adopting the final ISSA 5000 standard as the primary assurance standard in Australia, but we emphasize the need for a local pronouncement by the AUASB to address Australian-specific reporting framework nuances for successful implementation in Australia.
11 April 2024 - In our joint submission, we support the Commonwealth Treasury's push for mandatory climate-related disclosures. However, we highlight concerns about Group 3 entities and their impact, and proposed solutions in this submission. We advocate for a balanced approach, weighing decision-useful disclosure against resources needed for Group 3 entities.
28 February 2024 - In our joint submission, we support the consequential amendments arising from the Treasury Laws Amendment (2022 Measures No. 4) Act 2023 to reflect that ASIC will have oversight of the reporting and audit of financial statements of registrable superannuation entities (RSE) for reporting periods ending on or after 30 June 2024. We recommend Prudential Standard SPS 310 Audit and Related Matters (SPS 310) be reviewed in the context of the proposed change to exclude RSE auditors from its application.
2023
1 December 2023 - CPA Australia commends the International Auditing and Assurance Standard Board’s (IAASB) and its stakeholders for their efforts in developing ISSA 5000 within a very short space of time. It is crucial to focus on progressing the development of supporting implementation materials in the short term and a suite of ISSAs in a timely manner to meet market demands.
20 November 2023 - We believe the goal should be a globally consistent, comparable, and reliable assurance framework for sustainability reporting. We recommend a coordinated approach to the development of sustainability assurance standards to avoid fragmentation and duplicative efforts, undermining consistency and comparability which are critical to the success of global efforts on sustainability matters.
13 November 2023 - The IAASB's effort in developing the ISSA 5000 proposals within a very short space of time is highly commendable. However, we recommend further refinement and detail added to it for it to be a useful and reliable source of requirements and guidance on sustainability assurance. We also strongly support the development of additional implementation guidance, transitional considerations, and further clarity on aspects of the standard.
21 August 2023 - We commend the International Auditing and Assurance Standard Board’s (IAASB) commitment to improving ISA 570 Going Concern to address stakeholder needs and market expectations. We are of the view that these proposals will enhance audit quality and the consistency of practice through further clarity and better alignment with other ISAs. However, we recommend enhancements to transparency in the auditor’s report should only be pursued if there are adequate improvements to the applicable financial reporting framework on management’s going concern assessment and related disclosures.
14 April 2023 - We recommend the IAASB take a holistic approach when modernise the 500 series, starting with ISA 500 Audit Evidence to ensure cohesiveness and consistency across all ISAs as this, and other projects, are undertaken.
17 March 2023
2022
28 September 2022
8 August 2022
11 February 2022
2 February 2022
2021
5 August 2021
19 February 2021
2020
2019
12 September 2019
27 June 2019
27 June 2019
27 June 2019
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