The Australian Securities and Investments Commission (ASIC) has released its annual roadmap for financial reporting and audit surveillance for the 2025–26 financial year.
The plan outlined continued oversight of high-risk reporting areas, expanded audit file reviews, and new expectations for sustainability disclosures, as part of ASIC’s efforts to maintain transparency and reliability across Australia’s financial system.
Financial statement preparers will need to exercise heightened diligence in areas where professional judgement plays a significant role.
These elements remain under scrutiny due to their potential to materially affect the financial position of entities.
ASIC commissioner Kate O’Rourke stated that companies must ensure financial statements and audits reflect a complete and accurate view of their operations.
“These surveillance programs aim to enhance the integrity and quality of financial reporting and auditing in Australia. We expect all entities to provide reports and audits that are accurate, complete, and informative,” she said.
The regulator noted that market volatility and evolving economic conditions have increased the complexity of financial judgement in these areas.
In the upcoming reporting cycle, ASIC will increase the number of audit engagements under review. Selections will include audits linked to amended financial statements or reports flagged for potential misstatements. Additionally, a proportion of audit files will be chosen at random from among entities under ASIC regulation.
The commission is also continuing a wide-ranging initiative focused on auditor independence and conflicts of interest.
According to O’Rourke, ASIC is currently conducting detailed reviews into nearly 50 auditors, following preliminary analysis of over 100 audit relationships.
“We intend to publish the outcomes of this surveillance later this year,” O’Rourke said.
Auditors are encouraged to voluntarily report any independence-related breaches through ASIC’s designated regulatory portal.
ASIC has begun a multi-stage assessment of registrable superannuation entities (RSEs), which were required to submit audited financial reports for the first time in 2024.
Approximately half of these submissions have already been reviewed, with the remainder to be evaluated in the 2025–26 program.
Key review areas include transparency around investment portfolio valuations and the reporting of marketing and promotional expenses.
From January 2025, selected entities are subject to mandatory climate-related disclosure requirements under AASB S2. This applies to companies preparing reports under Chapter 2M of the Corporations Act that also meet sustainability criteria and have not been granted reporting relief.
ASIC advises companies to begin implementation processes immediately if they have not already done so.
Reports dated Dec. 31, 2025, will be reviewed as part of the regulator’s oversight, with findings to be released to help inform the broader market. Regulatory Guide 280 remains the primary source for compliance guidance.
ASIC has also revised Information Sheet 284, which outlines disclosure obligations for public companies, particularly those related to the residency status of consolidated entities.
The revisions reflect recent legislative amendments and are applicable to financial years beginning on or after July 1, 2024.
ASIC’s financial reporting and audit surveillance program extends to listed companies, significant proprietary firms, superannuation funds, and previously grandfathered entities.
The regulator said its oversight is aimed at maintaining public confidence in financial reporting and ensuring that entities meet their legislative obligations.
These measures form part of ASIC’s broader regulatory agenda for 2025, which includes scrutiny of private market activities, scam mitigation, cybersecurity preparedness, and insurer conduct following natural disasters.
