Tabled in Parliament yesterday afternoon, the recommendations outlined in the interim report of the parliamentary inquiry into audit regulation are in step with community and stakeholder expectations, said CA ANZ Reporting & Assurance Leader Amir Ghandar today at the Deakin Business School's Auditing and Assurance Conference.
"We believe these measures will improve confidence and quality in audit, as well as provide cover for the risks facing Australians," said Ghandar during his keynote speech.
CA ANZ recognised the need to fortify independence requirements as part of its comprehensive 15-point plan which was submitted into the parliamentary inquiry last year.
"We are pleased to see two major recommendations on non-audit services and auditor tenure," said Ghandar.
"Clarifying management accountability, auditing targeted at internal control and the risks of fraud and business failure signals a clear path forward for companies, regulators and the auditing profession."
"This is particularly important in light of systems-related risks that we've seen playing out in the business environment recently ranging from anti-money laundering to the issues exposed during the Banking Royal Commission."
"We're optimistic that a holistic review of ASIC's audit inspection program, including more graduated insights on the severity of findings, will lead to better outcomes and constant improvement in audit quality."
"Australians have a fair and reasonable expectation that auditing and other lines of defence will protect them from risks and shocks in their financial and consumer lives, and provide confidence, integrity and transparency in business."
"We encourage the Government, organisations and regulators to press forward with making these improvements in the framework."
The Australian parliamentary inquiry into regulation of audit
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