ASICs Financial Reporting Surveillance Program

ASIC's financial reporting surveillance program aims to improve the quality of financial reporting. We review the annual and interim financial reports of a selection of listed companies and other significant entities, to monitor compliance with the Corporations Act and Australian Accounting Standards.

ASIC alerts the market prior to each reporting season about current topics or issues that will be the focus of the reviews. For the results of the program, see the What's New section on the For preparers of financial reports page.

Each step in the financial reporting surveillance program is outlined below.

Selection of accounts for review

Our selections are based on a number of criteria which reflect 'hot topics' in the market and current accounting and disclosure issues. Some companies may be included in the surveillance as a result of other activities in ASIC or based on public complaints. A company will not be aware we have undertaken the review unless there are issues which we feel need clarification by the company.

Desktop review

The accounts are reviewed by our officers to determine compliance with the Corporations Act and accounting standards. We consider areas of potential non-compliance and assess their materiality.

Contact with companies

If ASIC has concerns arising from our desktop review, we may contact the company for further information. We will make the company aware of our concerns and invite a response to clarify the disclosure and the accounting treatment used.

Remedial action or no further action as appropriate

We will consider the response by the company and determine if further discussion is required or if our concerns are satisfied. If the latter, there will be no further action. In the event that we still have concerns, our courses of remedial action range from reissuing of financial statements to where

Issue media release summarising findings

At the end of each reporting season, ASIC publishes the findings of our surveillance program. The report aims to keep preparers of financial reports informed about current topics they should focus on and the level of compliance we have found with the broader objective of improving financial reporting quality.

Read the latest media advisories

For preparers of financial reports

What's new

Industry funding

ASIC has released its Cost Recovery Implementation Statement (CRIS), which includes estimated costs for ASIC’s 2017-18 regulatory activities. 6 Oct, 17-334MR

Review of 31 December 2016 financial reports

ASIC has announced the results from a review of the 31 December 2016 financial reports of 90 listed and other public interest entities. 17-219MR, 30 June

Inspection of audits for 2015–16

ASIC has released the results of its audit firm inspections for the 18 months to 31 December 2016, as well as three information sheets related to improving audit quality and our inspection process. 17-214MR, 29 June

Communicating ASIC’s findings from audit files,

This new regulatory guide provides transparency on our criteria and process for communicating financial reporting and audit findings. 17-200MR, 23 June

More releases on financial reporting and audit

Last updated: 20/10/2014 12:00