MEDIA RELEASE (AU)

Chartered Accountants Australia and New Zealand (CA ANZ) welcomes the release of the Australian Securities and Investments Commission’s (ASIC) surveillance report into the financial reporting and audit of Registrable Superannuation Entities and looks forward to continuing a constructive dialogue with the regulator to achieve a balanced approach to valuing complex assets.

“ASIC’s report rightly acknowledges the importance of high-quality auditing and financial reporting to the integrity of Australia’s superannuation system,” said Amir Ghandar FCA, Reporting and Assurance Leader at CA ANZ.

“Robust reporting is essential and, when it comes to valuing complex assets, results matter – not just the effort – which is why finding the right balance is crucial.

"Doing more audit work can help, but it’s important to keep things balanced, audits should be efficient and make smart use of members’ money. ASIC’s guidance is helpful, but trustees and auditors still need to use their judgement to focus on what matters most at year end."

“The report is a must-read for superannuation fund trustees and their auditors, who should act on ASIC’s recommendations by ensuring that fair value disclosures and expense information are clear and meaningful for fund members and that robust audit evidence is provided for investment valuations,” he said.

The report will be of particular interest to Self-Managed Super Fund (SMSF) auditors, given unlisted assets are common in SMSF portfolios. Valuing these assets frequently involves complex judgement calls that can have significant implications for member outcomes.

CA ANZ supports continuous improvement in audit quality and transparency and has called for reforms to give ASIC firm-wide jurisdiction and adequate resourcing to fulfil its role as Australia’s chief audit regulator.

“We remain focused on earning and maintaining public confidence in the audit profession. Surveillance findings are being taken seriously and acted upon, and we welcome constructive dialogue about how the profession can evolve to meet emerging expectations,” Mr Ghandar added.