CPA Australia, the professional body that administers the CPA designation in the country, has called for urgent reforms to the Australian Securities and Investments Commission's (ASIC) audit oversight to restore trust and safeguard the future of the profession, as reported by the Accounting Times.
In a submission to the Australian National Audit Office, which is conducting a review into ASIC's effectiveness, CPA noted that the number of registered company auditors has dropped from over 7,000 to around 3,200, citing ASIC's "rising cost recovery levies and compliance demands" as contributing factors.
"Without urgent action to make audit regulation more supportive and sustainable, we risk not having enough professionals to meet the rising demand for assurance, especially in areas like sustainability reporting," warned Tiffany Tan, CPA's Audit and Assurance Lead.
CPA Australia proposed a streamlined registration process and a two-tier licensing system "to reduce barriers for smaller firms while maintaining audit quality and oversight." In addition, it called for a "fundamental redesign" of ASIC's audit surveillance to address what it sees as the “limited scope, biased sampling, unclear reporting, and inefficient implementation.” CPA also emphasized the need for "greater transparency, engagement, and collaboration" between ASIC and the profession.
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