ASIC has written to registered company auditors reminding them of their legal, ethical and professional obligations, and the importance of protecting public confidence in the audit profession.
ASIC has taken this step at a time when there is heightened focus on auditor conduct and the behaviour of audit firms. ASIC is concerned about impacts to trust and confidence in the profession and seeks to remind auditors they must fulfill their obligations.
Auditor misconduct remains an enforcement priority for ASIC. Where ASIC has sufficient concern, it will commence investigations and may take enforcement action, including seeking cancellation or suspension of auditor registration, issuing infringement notices or taking civil action.
The letter comes as ASIC has commenced a separate surveillance of the Big 4 audit firms, examining internal complaints received by large audit firms about their audit practices.
ASIC's letter reinforces the critical role auditors play in supporting confidence in Australia's financial markets by ensuring investors, consumers and other users of financial reports can rely on high-quality audit work.
ASIC has outlined the audit-related work it is undertaking, including its ongoing surveillance of financial reports and audit files and reminded auditors of the findings and actions set out in Report 817 Building trust: Auditors' compliance with independence and conflict of interest obligations (REP 817).
