Australian Commission Falls Short in Audit Quality Follow-Up

Australia’s financial markets regulator is not using its enforcement powers effectively when it uncovers flaws during audit inspections, the country’s audit office found in a new report.

The Australian Securities and Investment Commission’s new risk-based auditor surveillance program is only partly effective, with limited follow-up on audit quality issues it identifies, the report from the Australian National Audit Office said.

“ASIC’s visibility of audit quality or the impact of its own regulatory actions is narrow,” the report published Thursday said.

The commission came under fire in 2023 when it redesigned its audit quality inspections, cutting its surveillance of the six ...