ASIC puts 2,900 auditors on notice with obligation reminder
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The news: The corporate regulator has put 2,900 auditors on notice, sending them letters reminding them of their compliance and ethical obligations as it initiates twice-a-year meetings for auditors.
The meetings will be open to all registered company auditors to discuss the Australian Securities and Investments Commission’s priorities, focus areas, findings and recommendations for good practice. It will also enable auditors to flag any emerging issues or questions.
The letters come amid the KPMG whistleblower scandal, which has engulfed the sector since March.
ASIC commissioner Kate O’Rourke said in the letter that “there is significant focus on the conduct of auditors and audit firms and the concerns about trust and confidence in the profession”.
The context: ASIC is concerned about issues relating to auditors who have not complied with the law and professional and ethical standards to act independently and ethically.
ASIC stressed auditors’ obligations include being independent, providing accurate and timely information, reporting relevant matters to ASIC, and acting ethically.
Earlier this month, ASIC launched surveillance into the Big Four accounting firms to examine internal complaints relating to their audit practices. ASIC has also commenced a formal investigation into KPMG.
What they said: “In relation to ASIC enforcement, auditor misconduct is one of our specific enforcement priorities,” the letter said.
“We will commence investigations where we have sufficient initial concerns regarding a possible breach of the Corporations Act 2001 (Corporations Act) and we have done so in relation to recently raised allegations.”
The source: ASIC letter
