I have question about below recommendations about Regulation of Auditing in Australia in Interim Report February 2020

By Parliamentary Joint Committee.

Recommendation 1

3.114 The committee recommends that ASIC:

• formally review the manner in which it publicly reports the periodic findings of its audit inspection program, giving appropriate consideration to approaches used internationally; and
• based on this review, develop and implement, by the end of the 2020-21 reporting period for its audit inspection program, a revised framework for reporting inspection findings, with a focus on the transparency and relative severity of identified audit deficiencies.

1. Could you help me to explain about the audit inspection program and the inspection report? Why they have to issue the inspection report?
2. I found that audit inspection report contain all minor to most serious audit issue. they recommend to grade the severity of its finding in a revised reporting framework. What is the reason they have to grade it?

Recommendation 2

3.115 The committee recommends that the Australian Government introduce, by the end of the 2020-21 financial year, through appropriate legislation, a requirement that ASIC publish all future individual audit firm inspection reports on its website once ASIC has adopted a revised reporting framework referred to in Recommendation 1.

I found that each of the largest six audit firms voluntarily published their firm's individual ASIC audit inspection report for 2018-2019.

Is ASIC publish all future individual audit firm inspection reports different from the recommendation 1 ?

If it is the same report, then should include the grade system in individual audit inspection reports to build trust and transparency?

Thanks.