Question
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
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.
- Could you help me to explain about the audit inspection program and the inspection report? Why they have to issue the inspection report?
- 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.
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