ASIC to name and shame poor auditors to company directors

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The watchdog hopes the move will help improve audit quality if accounting firms are held to account by valuable clients for issues with their work.

to assess if the auditors have done enough work to be able to justify their opinion, but currently only communicates problems on an exception basis or in redacted form.would ramp up pressure on the big four accounting firms to improve the quality of their audit work. ASIC’s executive director of markets, Greg Yanco, hopes it would mean firms’ clients – the companies they audit – would hold them to account for issues in their work identified by the watchdog.

He said ASIC’s “prime concerns” were the “issues that we constantly find with accounts” reviewed by auditors, including incorrect valuations and recognition of revenue. “What we basically want is really good financial reports and good information for the users of financial reports.

 

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