What's happening of relevance to accountants and auditors - let me tell you.

The eagerly awaited first integrated financial-reporting-and-audit-surveillance report has arrived. The Australian Securities & Investments Commission has outlined its findings in particular related to insufficient disclosure of material business risks in operating and financial reviews, impairment of assets, revenue recognition, and other disclosures. Much for preparers, governance, and auditors to learn and not to repeat the mistakes of others.

ASIC reviewed 180 financial reports by ASX-listed and others as well as 15 related audit files from 1 July 2022 to 30 June. The number of audit files reviewed is a little skinny to be kind, particularly when there are widespread concerns over audit quality and a parliamentary inquiry on the topic to boot.

Not too many lessons from such a small number of audit reviews? ASIC should take another look at the approach – poor in comparison to US PCAOB and UK FRC results.

Interestingly, we do not hear much from Chartered Accountants Australia and New Zealand and CPA Australia on their quality-inspection programs of members in public practice. They need to lift their game in the public interest. How about an annual report on each of their programs?

Corporates should lodge their accounts and hold their AGMs on time. They should also have the required number of directors. ASIC is continuing with its prosecutions – heavy fines and reputational damage. Avoid these by complying with the law.

The Australian Prudential Regulation Authority has offered handy insights on credit-risk provisioning practices for incorporated authorised deposit-taking institutions. The observations can be applied beyond ADIs.

In the fast-paced world of sustainability reporting, the Australian Accounting Standards Board has issued ASRS 1 General Requirements for Disclosure of Climate-related Financial Information, and ASRS 2 Climate-related Financial Disclosures. They could be standards by mid-2024.

Timely guidance by the Governance Institute is in its latest guide – Generative Artificial Intelligence. Governance is a good place to start on the risks and benefits of growing technologies.

?Unfortunately, we are still seeing significant wages’ underpayments. The Fair Work Ombudsman continues to be very active with enforcement. Court action can follow.

?ASIC has found shortcomings in the remediation procedures of Australian financial-services and credit licensees. They need to be fixed.

CA ANZ is strengthening its professional-conduct framework, including a big boost in fines. This may drive members to seek improved understanding of their professional responsibilities and compliance.

These developments and more are covered in my latest GAAP Alert newsletter – https://gaaptraining.com.au/wp-content/uploads/2023/11/GAAP-Alert-5_2023.pdf

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#Colin_Parker is principal, #GAAP_Consulting. He is the #author of the popular #newsletters – #GAAP_Alert and #NFP_Risks_and_Compliance. Colin is also host of the #GAAPinar #training series for #accountants, #auditors, and #governance.

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