Much to ponder as 30 June nears

As 30 June draws near there is much to know about and act upon.

Among annual financial-reporting obligations under chapter 2M of the Corporations Act, Australian public companies must include from 1 July last year a ‘consolidated entity disclosure statement’. The directors’ declaration will include a statement about whether, in their opinion, the statement is true and correct. The Consolidated Entity Disclosure Statement is subject to audit.

Federal treasurer #Jim_Chalmers has introduced into parliament the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024. The Australian Accounting Standards Board has decided to finalise its standards on climate-related financial disclosures by the end of August – fingers crossed. ASIC chair #Joe_Longo has urged companies to start preparing for climate-related disclosure statements. Climate change should be firmly on your agenda.

A swag of workplace changes are coming. You need to know about them, revise systems, and ensure that there is appropriate governance oversight. Stiffer penalties are involved.

Large and small-business wages underpayments are still occurring – despite significant regulatory action and publicity. Businesses, accountants, and auditors must take a closer look.

ASIC has been active. Boards and their auditors should heed the lessons regarding corporate restatements, and poor reporting and governance practices. Lifting our eyes a little, we can look forward to the ASX’s new governance principles and recommendations.

Let’s not under-estimate fraud risks. Check out the Association of Certified Fraud Examiners Occupational Fraud 2024: A Report to the Nations. It contains great insights to support organisations and anti-fraud professionals. Also watch out for a revised auditing standard about fraud that is in the works.

ASIC is continuing to crack down on auditors. See what the corporate cop has been up to. We know that there is more to come.

A big reminder for auditors: ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements is not a set-and-forget. Make sure it is a high priority on your action list.

Corporates should update risks registers and ensure that governance is aware of new and increased business risks. They often result in regulatory action and are likely to have financial-reporting consequences.

Audit planning might require updating because of recent developments. And please don’t forget your responsibilities under audit-quality management standards.

Find out more at https://gaaptraining.com.au/wp-content/uploads/2024/06/GAAP-Alert-2_2024-March-April.pdf

Questions? Please contact me [email protected] or 0421-088-611.

#Colin_Parker is principal GAAP Consulting and host of the GAAPinar training programs (www.gaaptraining.com.au). He authors GAAP Alert and NFP Risks and Compliance newsletters.

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