Chartered Accountants Australia and New Zealand (CA ANZ) welcomes the opportunity to provide input on draft regulations to reduce auditor resignation fees back to $40 (from $3,487) after engaging with Treasury on the matter late last year.
On 1 July 2018, the fee increased significantly affecting many auditors including sole practitioners and small to medium sized practices who were working on not-for-profits and charity audits.
"Many members have expressed concern to us and we’re grateful that Treasury has been so responsive in addressing this issue," said Amir Ghandar, Reporting and Assurance Leader at CA ANZ.
"In our view, the fee is unjustified and has created a number of unintended consequences, particularly for sole practitioners and small to medium sized practices."
"Auditor resignation fees were not included in the consultation on the proposed industry funding model for ASIC, so it was quite unexpected."
"We recently wrote to Treasury calling for it to expedite consideration of this matter, so we are very pleased with the response in exposing draft regulation that includes our request to reduce the fees as well as that the fees be reimbursed retrospectively."
Responses to Treasury's consultation are due by 8 February 2019 and CA ANZ is encouraging all CAs to have their say.
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Respond to the Treasury proposals to reduce ASIC’s auditor resignation feesFind out more