HA3032 Auditing

Introduction1

Publishing Annual Transparency Report1

Empowering ASIC To Issue an Audit Deficiency Report2

Removing duplication of ASIC and FRC3

ASIC Permitted To Communicate Directly4

Two-Year Extension to the Five-Year Auditor Rotation Requirement5

Conclusion6

References8

HA3032 Auditing

Introduction

This paper deals with the legislative proposal which has been presented for the sake of betterment of quality the auditing process and making the procedure much more transparent. All the five important section are explained in this paper with reference to the relevant material available on them. The Bill of 2012 which has been proposed for the audit enhancement is basically a result of the Treasury review being conducted for the quality of audit and for the extensive stakeholder consultation in the year 2011, this is on various different measures that are designed for the sake of betterment and enhancement of audit quality and make it sure that Australia's regulatory framework remains up-to-date and in line with international practices.

Publishing Annual Transparency Report

APESB (Accounting Professional & Ethical Standards Board) is basically in favour of proposed regulations by the treasury which is in respect of the Corporation's Legislation Amendment Act audit enhancement which requires all the audit firms which are auditing 10 or more than 10 entities, this is defined in section 332A of this Act to a transparency report annually with specified information regarding all of their operations.

It has been noted that there are a number of the requirements and a requirement is also there by APESB standards which are in published form, this is inclusive of the independence requirements, quality controlling systems and compulsion for maintaining a better professional competency. It is an agreed fact that it is apt to control and restrict the transparency reporting for all the audit firms which are conducting a number of audits over and above a threshold which has been specified of entities as per the definition by the legislative bodies. There is also a significant level of the public interest in all of these entities and their availability regarding the public information on the operation of the respective audit firms providing the auditing services would benefit their stakeholders. It is although understood that the legislative bodies have specified the reporting threshold at the organizations who are taking services for the 10 or more entities, the practical applications of these measures to all the business entities who are having small and Medium Practices or if they are affiliated networks of different firms which might be done for not creating a regulatory burden on all of those practices (www.apesb.org.au).

Empowering ASIC To Issue an Audit Deficiency Report

As a response to apprehension on the failures of the exposure drafts for providing the audit firms with a authority as a respondent to any audit deficiency which has been reported by the ASIC, this bill equip the auditors with a right to record their comments on a kind of comment before the occurrence of publication and also for having their comments be published through the ASIC with the report they will be publishing (www.aph.gov.au).

Basis of commitments of the policies of the government has ...