CPA Australia calls for improvements in ASIC’s audit oversight

CPA Australia is urging “significant” enhancements to the Australian Securities and Investments Commission's (ASIC) audit oversight.

The professional accounting organisation says the initiative is intended to rebuild public confidence, ease compliance pressures, and reinforce the long-term resilience of Australia’s auditing sector.

Without these improvements, the number of auditors in the country is expected to continue declining.

In its submission to the Australian National Audit Office’s review of the Australian Securities and Investments Commission’s oversight of registered company auditors, CPA Australia highlighted the pressing need to reform audit regulation to ensure it is both supportive and sustainable.

Tiffany Tan, who leads Audit and Assurance at CPA Australia, underscored the need to tackle existing challenges in the regulation and supervision of the auditing profession.

She said: “Registered company auditors play a crucial role in safeguarding Australia’s financial markets and this ANAO review provides the opportunity to reduce unnecessary complexity and burden, while upholding quality and trust in financial markets.

“The number of registered company auditors has more than halved over the past two decades. 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.”

CPA Australia said it sees opportunities to improve the timeliness, certainty, and transparency of ASIC’s audit inspection process.

These improvements aim to enhance real-time feedback to firms, increase efficiency, and improve market integrity.

While supporting ASIC's continued role in auditor oversight, CPA Australia calls for key improvements in process, culture, and capability.

“We would like the ANAO to consider opportunities to modernise audit inspection engagements and improve communications and information sharing within ASIC itself, as well as with auditors, firms and professional accounting bodies, including CPA Australia,” said Tan.

“We want to see ASIC working more transparently and collaboratively with the profession. More open dialogue and sharing of findings will lead to better outcomes for all.”

Earlier in April 2025, CPA Australia released strategic recommendations to assist local businesses affected by the announced US trade tariffs.

The accounting body identified key areas for business leaders to address to mitigate the potential impact of the tariffs and position themselves for long-term resilience.