In the first week of August, the Parliamentary Joint Committee on Corporations and Financial Services was referred by the Senate to initiate an inquiry into the regulation of auditing in Australia. The committee has been asked to present a report on its findings by 1 March 2020.
The inquiry comes on the back of other recent concerns expressed by the ATO on what it dubs “reciprocal auditing arrangements” relating to the annual audits that SMSFs are required to lodge.
The first item listed in the terms of reference of the inquiry states that particular reference is to be given to “the relationship between auditing and consulting services and potential conflicts of interests”.
Other terms of reference refer to the quality of audits, including valuations of intangible assets, the effectiveness and appropriateness of regulation, and the adequacy of standards and regulatory bodies such as ASIC.
The inquiry webpage has a link to make submissions, which close on 30 September 2019.
