In December 2012, ASIC released its Audit inspection program report for 2011–12, one conclusion in that report was that there had not been any improvement in audit quality since the last report. The following is included in the Executive summary of that report:

We found that, in 18% of the 602 key audit areas that we reviewed across 117 audit files over firms of all sizes, auditors did not obtain sufficient appropriate audit evidence, exercise sufficient scepticism, or otherwise comply with auditing standards in a significant audit area. While the financial reports audited may not have been materially misstated, in these instances, the auditor had not obtained reasonable assurance that the financial report as a whole was free of material misstatement.

Required

Discuss the advantages and disadvantages of the responsibility of reviewing audit work being undertaken by ASIC rather than the audit profession.