Australian Government, Financial Reporting Council

Search this website

Previous PageIndexNext Page

Appendix F

Matters arising from 2005-06 independence report

The following tabulation lists the matters arising from the 2005-06 independence report and the action that has been taken in respect of each matter.

Page

Issue

Action

2, 6, 19, 45

The FRC intends to examine the findings and recommendations made by the disciplinary procedures consultancy as part of the FRC’s 2006-07 work programme.

The Allen Consulting Group was engaged to review the recommendations made by the disciplinary procedures consultant. Allen Consulting’s recommendations, which are listed in Appendix D, will be considered by the FRC in consultation with stakeholders during 2007-08.

2, 6, 18, 41

The FRC intends to examine the findings and recommendations made by the quality review programmes consultancy as part of the FRC’s 2006-07 work programme.

The Allen Consulting Group was engaged to review the recommendations made by the quality review consultant. Allen Consulting’s recommendations, which are listed in Appendix D, will be considered by the FRC in consultation with stakeholders during 2007-08.

2, 3, 6, 20, 49

The FRC intends to examine the findings and recommendations made by the consultancy on the teaching of professional and business ethics as part of the FRC’s 2006-07 work programme.

The FRC decided that, prior to considering the recommendations made by the ethics consultant, an evaluation should be undertaken of how professional and business ethics are applied in practice by accounting firms. The Banarra Trust was engaged to carry out this work. Banarra’s recommendations, which are listed in Appendix E, and the recommendations of the ethics consultant will be considered by the FRC in consultation with stakeholders during 2007-08.

3, 6, 23

In 2006-07, the FRC plans to review the level of compliance with audit-related disclosure requirements by considering the information provided by MOU bodies.

Information has been provided by ASIC and ASX to assist in this task.

3, 6, 28, 29, 30

The FRC will consider issues identified during the comparative review of Australian and overseas independence requirements as part of the FRC’s work programme for 2006-07.

The FRC provided advice to the Parliamentary Secretary to the Treasurer on the matters identified in the comparative review during December 2006.

3, 6, 25

The FRC intends to give further consideration, as part of its 2006-07 work programme, as to whether any scope exists for reducing the overlap of auditor review responsibilities between the firms, professional accounting bodies and regulators.

The FRC has addressed this issue through meetings with stakeholder bodies.

14

The FRC intends to do further research and analysis on the provision of non-audit services by auditors as part of its 2006-07 work programme.

The FRC initially experienced difficulty in obtaining information on this subject. However, a schedule of audit fees paid by most of the top 100 companies has been obtained and an analysis of the data will be undertaken during 2007-08.

26

The report notes that the FRC is reviewing the register of company auditors to identify the number of registered company auditors who are not members of a professional accounting body and that this project will be completed during the first half of 2007.

This project was completed on schedule during the first half of 2007.

Previous PageIndexNext Page

Miscellaneous