Australian Government, Financial Reporting Council

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Media Release
2010 / 01 – 5 March 2010

Audit Quality in Australia

The Chairman of the Financial Reporting Council, Mr Jeffrey Lucy AM, today released a Treasury consultation paper Audit Quality in Australia: A Strategic Review.

“High quality financial reporting and an effective audit function are key components of efficient capital markets and are critically important to global financial stability and sound economic growth” Mr Lucy said.

The methodology adopted in the paper is to identify the key drivers of audit quality and to assess whether any measures should be taken to address any real or perceived threats to those drivers.

“The global financial crisis has highlighted the importance of audit quality with a range of additional complexities, risks and uncertainties confronting auditors.

Treasury has undertaken wide‑ranging research, drawing on the experience, reports and studies on audit quality in Australia and key overseas jurisdictions.

The overall conclusion of the strategic review is positive.  Treasury is of the view that Australia’s audit regulation framework is robust and stable and can be considered to be in line with international best practice and that no fundamental changes to the framework are required.  The paper, however, raises a range of important policy issues that will require further consideration by key stakeholders who have an interest in auditing.

“This paper is designed to facilitate informed debate among stakeholders with a view to achieving appropriate policy responses.  It should provide a blueprint for possible future reforms in this important policy area and add to the international debate on audit quality”.

Copies of the paper can be obtained from the Treasury website www.treasury.gov.au

Media Enquiries:
Ms Genevieve Watson, FRC Secretary
Email: frcsecretary@treasury.gov.au
Telephone: (02) 6263 3144

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