The Australian Securities and Investments Commission (ASIC) has published its annual findings on financial reporting and audit quality for the period ending June 30, 2025.
The latest report, REP 819, forms part of ASIC’s broader initiative to strengthen financial reporting and auditing standards across Australian entities, including those relevant to the insurance sector.
Over the past financial year, ASIC conducted reviews of 254 company financial statements, undertook 22 targeted surveillances, and examined 10 audit files from eight separate audit firms.
These efforts led to 18 entities making or agreeing to make adjustments in response to 19 identified concerns.
For example, Bell Group Holdings Pty Limited revised its reporting to consolidate a subsidiary previously recorded as an associate, while Energy World Corporation Limited recorded asset impairments totalling US$793.8 million.
ASIC also identified audit-related issues in nine surveillances, prompting notifications to both auditors and the companies involved.
The regulator’s approach is aimed at encouraging higher standards in both the preparation and independent review of financial information.
ASIC Commissioner Kate O’Rourke said the effective functioning of businesses and markets depends on financial information being accurate, accessible, and dependable.
“All participants in our economy rely on those preparing financial information to do so carefully and fairly, and those auditing that information to do so with skill, professionalism, and independence,” she said.
ASIC’s enforcement actions during the year included disciplinary proceedings that resulted in the suspension of a registered company auditor for 18 months due to non-compliance with auditing standards.
Other measures included accepting a court enforceable undertaking from a Perth-based auditor to surrender registration, imposing additional conditions on another auditor’s registration, and requiring 32 companies that had not previously lodged audited financial reports to comply, with 30 having done so to date.
The findings in REP 819 conclude ASIC’s expanded program of work on audit and financial reporting quality, following earlier reports on superannuation fund reporting and auditor independence.
Commissioner O’Rourke noted that the program highlighted the need for continued improvement, particularly in auditor independence and the reporting of significant breaches.
Looking ahead, ASIC plans to increase the number of audit files reviewed to 25 in its 2025-26 program and will refine its selection process to include both risk-based and random reviews.
The regulator also intends to review sustainability reports for the year ending Dec. 31, 2025, and will continue to use its full range of regulatory tools to address audit quality and compliance issues.
ASIC’s surveillance program covers financial reports and audits of listed entities, large proprietary companies, and registrable superannuation entities.
Audit file reviews focus on firms auditing financial reports of listed and other public interest entities.
In other news, ASIC has launched a new dashboard providing public access to data on breaches reported by Australian financial services and credit licensees.
The Reportable Situations (RS) dashboard presents detailed information on self-reported breaches, including the volume and nature of breaches, customer impact, investigation outcomes, and remediation efforts.
The dashboard is intended to enhance transparency and support improved compliance practices across the sector.
The release follows a consultation process earlier in 2025, during which ASIC received feedback from 47 submissions on its proposed approach to data publication.
ASIC has also updated its guidance on digital assets, clarifying the application of existing regulations to products such as stablecoins, wrapped tokens, tokenised securities, and digital asset wallets.
The guidance confirms that many digital assets are considered financial products under current law, requiring providers to hold an Australian financial services licence.
“Distributed ledger technology and tokenisation are reshaping global finance. ASIC’s guidance provides the regulatory clarity that firms have been calling for to innovate confidently in Australia,” said ASIC Commissioner Alan Kirkland.
To facilitate transition, ASIC has granted a sector-wide no-action position until June 30, 2026, and is seeking feedback on proposed regulatory relief for certain digital asset activities.
This approach is intended to provide industry participants with time to adapt to evolving requirements.
ASIC is also seeking industry feedback on its proposal to remake the ASIC Corporations (Generic Calculators) Instrument 2016/207, which is set to expire in April 2026.
The instrument provides relief to providers of generic financial calculators from specific licensing requirements, provided the calculators do not promote particular products.
ASIC proposes minor amendments to simplify the instrument and align it with current reporting regimes. Feedback is open until Dec. 1, 2025.
