Australian Government, Financial Reporting Council

Search this website

Previous PageIndexNext Page

Appendix C

Matters arising from 2006-07 independence report

The following tabulation lists the matters arising from the 2006-07 independence report and the action that has been taken in respect of each matter.

Page

Issue

Action

4, 27

The FRC proposed to engage a consultant during 2007-08 to undertake a mapping of the reporting supply chain, identifying all participants, their role, inter-relationships and the reward-punishment incentives which shape their behaviour. In the second stage, to be undertaken in 2008-09, the FRC would compare the existing Australian and UK models against the conceptual framework to determine where there is a need to make recommendations to the Minister for refinements to the Australian model.

The evaluation of outstanding recommendations from previous consultations was completed and the FRC decided that, there was no requirement to engage consultants.

4

The FRC intends to consider whether there is a need for it to make any recommendations to the Minister and the professional accounting bodies about issues arising out of the consultants' reports.

The recommendations have been considered and actioned accordingly. Recommendations that have yet to be actioned have been incorporated into the 2008-09 work program.

5

The FRC will continue to review, and analyse, the level of compliance with audit-related disclosure requirements by considering the information provided by the bodies with which the FRC has signed a Memorandum of Understanding (MOU bodies).

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

5, 11, 34

The FRC plans to continue its research into the quantum of fees received by auditors of audited entities for audit and non-audit services provided to those entities.

The FRC is of the view that the provision of audit services versus non-audit services needs to be considered further to ensure that there is no systemic problem. This exercise, whilst looking at the services in monetary terms, will focus on the nature of the work to ascertain whether it may impede auditor independence, and is on the FRC's work program for 2008-09.

The FRC continued to examine this issue and found no evidence of systemic issues and/or impediments to auditor independence in 2007‑08.

18

The FRC believes that there would be merit in both ASIC and the professional accounting bodies having appropriate educative programs targeted at auditors.

The FRC continued to encourage ASIC and the professional accounting bodies to further improve and expand their educative programs.

25

The FRC intends to examine the findings and recommendations collectively made by the consultancies engaged by the FRC from 2005-07.

The FRC considered the recommendations and, where appropriate, has built them into the 2008-09 work program.

28

As part of the 2007-08 work program, the FRC may also consider whether there is a need for it to make any recommendations to the Minister and the professional accounting bodies about the quality review programs and disciplinary procedures of the bodies.

The FRC made informal recommendations to the professional accounting bodies about the quality review programs and disciplinary procedures of the bodies.

30

As part of its 2007-08 work program, the FRC intends considering the need to make recommendations to the Minister and the professional accounting bodies about the promotion and teaching of professional and business ethics by, or on behalf of, the bodies and related matters.

The FRC made informal recommendations to the professional accounting bodies and relevant stakeholders about the promotion and teaching of professional and business ethics through meetings.

32

The FRC will continue to review, and analyse, the level of compliance with audit-related disclosure requirements by considering the information provided by the MOU bodies.

MOU bodies provided relevant reports, and feedback at meetings. An analysis of this information is included in this report.

Previous PageIndexNext Page

Miscellaneous