The Australian Securities and Investments Commission (ASIC) has issued an updated Information Sheet to provide guidance for applicants wishing to register as a company auditor.
The Information Sheet, titled ‘How to apply to be registered as an auditor’, is designed to assist applicants improve the quality of their applications to ensure ASIC can assess their suitability for registration in a more timely and efficient manner. It sets out what details applicants must provide to ASIC as part of the registration process, and in what format this information must be provided.
‘ASIC has been concerned for some time about the quality of applications received. It suggests to us that applicants are either having difficulty understanding the registration form, or are not treating the application requirements seriously’, ASIC Director FSR Licensing and Business Operations, Ms Pauline Vamos said.
‘Applicants should be aware that the mere act of completing an application form does not guarantee their application will be approved. Before ASIC can register someone as an auditor, it must be satisfied that he/she can meet the experience requirements set out in the relevant Corporations Regulations, and is capable of conducting a large company audit’.
‘ASIC will not hesitate to reject applications where it is clear that no attempt has been made to appropriately address the relevant requirements, or to ensure the application is complete’, Ms Vamos said.
ASIC requires applicants to provide details of the level of responsibility associated with each position he or she has held, and details of the year(s) in which applicants were promoted to Manager level.
It also requires applicants to provide information on the complexity of auditing issues to which he or she has been exposed. This is particularly important for applicants who have had limited experience in public company auditing.
In addition to detailing how ASIC assesses an applicant’s level of experience, the Information Sheet provides:
- an explanation of when experience working on non-company audits may be considered as equivalent to experience in company audits;
- tips on how to present the details of the audit work performed by applicants; and
- a checklist that identifies the issues that should be considered before submitting an application.
ASIC requires all applications to be submitted on a Form 903A, which is available with the Information Sheet.
A copy of the Information Sheet can be obtained from the ASIC website at www.asic.gov.au under ‘Publications’ or by telephoning Infoline on 1300 300 630.