Australian 2018 audit inspection program report published
The Australian Securities and Investments Commission (ASIC) has published its audit firm inspection report for the period 1 January 2017 to 30 June 2018. This indicates that in 20% of the key audit areas reviewed in files at the six largest audit firms, auditors did not obtain reasonable assurance that the financial report was free from material misstatement. This compares to 23% in the previous 18-month period, and ASIC described this as a “welcome reduction” in the level of findings for such firms. The overall results for all 20 firms reviewed identified that 24% of audit files had findings (25% in the previous period.
Key areas for improvement included auditing of asset values and impairment, auditing of revenue and the quality of audit culture within firms.
The detailed report can be viewed here.