ASIC explains the key audit inspection findings for 2019 and how they are responding

ASIC’s audit inspection report found an increase in negative findings and so is commencing new initiatives aimed at improving audit quality. Doug Niven, Senior Executive leader for Financial Reporting and Audit at ASIC, explains to Claire Grayston from CPA Australia the basis of those findings and what ASIC’s new key initiatives involve. Doug also explains why the report now provides greater transparency by including individual results for the “Big 4” firms.


Highlights:

0:43 Overall findings

2:25 ASIC’s audit quality initiatives

4:18 Why not litigate?

6:37 Reviews of culture, talent, governance, conflicts of interest and accountability

8:45 Corporate Governance Task Force

10:50 Individual firm findings

16:15 Proposed reporting directly to Audit Committees

19:08 Link between inspection findings and material misstatements

23:04 Key areas of concern

24:46 Firms’ action plans

26:41 Revised INFO 224ASIC audit inspections

 

Further Resources:

ASIC Report 648 Audit inspection report for 2018–19 

ASIC Media releaseon Audit inspection findings 12 December 2019

INFO 224ASIC audit inspections

ASIC Report 649 Audit quality measures, indicators and other information: 2018–19

A Guide to Understanding Auditing and Assurance - Australian Listed Companies

Podcast:The NZ FMA discuss their Audit Quality Monitoring findings for 2019 

Podcast:How directors can get the most out of the audit 

Podcast:A discussion on the ASIC Audit inspection program finding for 2017-2018




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