Tabled in Parliament this afternoon, the recommendations outlined in the final report of the parliamentary inquiry into audit regulation are welcomed by Chartered Accountants Australia and New Zealand (CA ANZ).
"This has been a comprehensive inquiry that saw hundreds of submissions and a deep, overall balanced investigation into the current framework and challenges in auditing," said Amir Ghandar, CA ANZ Reporting & Assurance Leader.
"Now more than ever it is important we take action promoting enduring trust and confidence in auditing.
"Auditors rose up to the challenges of the pandemic despite record uncertainties and constraints, delivering integrity essential for our capital markets and economy and in line with the rigorous standards that apply every year.
"We called for a more integrated and consistent approach to how Australians are covered for risks such as fraud, misconduct and corporate failure in not only auditing but also management and governance, and we're pleased this bears out in many of the recommendations.
"The committee has recognised the impact the current economic environment will have on their recommendations on internal control while also firmly asserting this must remain on the agenda to secure sustainable trust in capital markets during the crucial recovery phase.
"These recommendations will require dedicated commitment from government and the profession, particularly those recommendations with incremental costs such as enhancing accountability and audit of company internal controls, and transitioning to digital reporting."
As recognised in the report, the inquiry has already prompted many positive steps and enhancements in audit regulation.
"We look forward to the Government's response and further consultation with the profession during the next phase to ensure the scope, transition and design of these policies will stand the test of time and there are no disproportionate impacts on small and medium businesses," said Ghandar.
Read the final report for the parliamentary inquiry into regulation of auditing in Australia.Read more
Our 15-point plan
Read our two submissions to the Inquiry into Regulation of Auditing in Australia.Read more