Date posted: 01/12/2021

ASIC Audit Inspection Report outlines key areas of focus for the profession, but cautions generalising results

Released today, ASIC’s latest audit inspection report equips the audit profession with areas of focus to inform their training, says Chartered Accountants Australia and New Zealand (CA ANZ).

Released today, ASIC’s latest audit inspection report equips the audit profession with areas of focus to inform their training, says Chartered Accountants Australia and New Zealand (CA ANZ).

“This report is valuable in helping the profession strive for continuous improvement and to be alive to challenging areas particularly as COVID-19 created greater economic uncertainty and increased the complexity of audits,” said Amir Ghandar, Reporting & Assurance Leader at CA ANZ.

“In addition to disseminating the findings to members, these valuable insights will inform our training and resources as we look to equip members with targeted support.”

ASIC’s report details the review of 149 key audit areas on a risk basis across 35 audit files between 1 July 2020 and 30 June 2021.

“ASIC’s program is risk-based, meaning they aim to focus on higher risk files. This is where the program is so valuable in unearthing focus areas, but also why the data can be misread,” said Mr Ghandar.

“While we are more likely to get this kind of rich information with a risk-based sample, we should be mindful this approach means comparison of the statistics across different periods is not likely to be statistically valid.

“We continue to encourage the regulator to provide more graduated information on how it views the severity of issues identified, and the judgements involved, as was recommended by the parliamentary inquiry into regulation of auditing.

“We are also eager to see the return of the broader suite of audit quality measures and indicators that were published by ASIC in the past few years, as this approach goes much further in helping understand audit quality in Australia.”

This report comes as CA ANZ introduced a reimagined CA Program this year with revamped modules on audit and reporting and has rolled out training on professional scepticism, one of ASIC’s top focus areas. 

ASIC Audit Inspection Report 2021 

REP 709 Audit inspection report: 1 July 2020 to 30 June 2021
Released 30 November 2021.

Read report

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