CP 265 Communicating audit findings to directors, audit committees or senior managers

Released 25 July 2016. Comments due 7 October 2016.

The Australian Securities and Investments Commission Act 2001 (ASIC Act) was amended in 2012 to allow ASIC to communicate specific financial reporting and audit findings identified from reviews of audit files directly to directors, audit committees or senior managers of companies, responsible entities or disclosing entities.

This consultation paper seeks your feedback on our proposed criteria for determining which findings from our reviews of audit files we would communicate to directors, audit committees or senior managers.

We are also seeking your feedback on our proposal to let an entity’s board of directors know that we will be reviewing audit files relating to the entity as part of our routine audit firm inspections.