Regulatory Alerts2025-10-07
ASIC finds many auditors failing to demonstrate compliance with auditor independence obligations
ASIC issued Report 817 revealing that numerous auditors failed to demonstrate compliance with independence and conflict of interest obligations, leading to enforcement actions including registration cancellations and infringement notices. The review identified fifteen auditors in likely breach of prescriptive requirements, such as mandatory rotation and prohibitions on non-audit services, none of whom proactively reported these failures to the regulator. ASIC emphasized that auditors must critically evaluate independence threats rather than adopting a tick-box approach to maintain stakeholder trust and financial reporting integrity.
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