Australian Government, Financial Reporting Council

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Financial Reporting Council

Report on Auditor Independence 2007-08

© Commonwealth of Australia 2008

ISBN 978-0-642-74480-7

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the:

Commonwealth Copyright Administration
Attorney-General's Department
Robert Garran Offices
National Circuit
BARTON ACT 2600

Or posted at:

http://www.ag.gov.au/cca

Printed by CanPrint Communications Pty Ltd

 


 

Australian Government Crest

Chairman:
Mr Jeffrey Lucy AM
c/ The Treasury
Langton Crescent
Canberra ACT 2600

Email:
jlucy@optusnet.com.au

Secretariat:
c/ The Treasury
Langton Crescent
Canberra ACT 2600

Telephone:
(02) 6263 3144

Facsimile:
(02) 6263 2770

Email:
frcsecretary@treasury.gov.au

8 October 2008

Senator the Hon Nick Sherry
Minister for Superannuation and Corporate Law
Parliament House
CANBERRA ACT 2600

Dear Minister

I have pleasure in presenting the report of the Financial Reporting Council (FRC) on the performance of its auditor independence functions for the year ended 30 June 2008.

Subsection 235BA(1) of the Australian Securities and Investments Commission Act 2001 (ASIC Act) requires the FRC, by 31 October each year, to prepare a report on its performance of its auditor independence functions, the findings and conclusions reached by the FRC in performing those functions, and the actions (if any) taken by the FRC in respect of those findings and conclusions.

Under subsection 235BA(3) of the ASIC Act, the report must be tabled in each House of the Parliament as soon as practicable.

Yours sincerely

SIGNED

Jeffrey Lucy AM

 


 

Abbreviations

The following abbreviations are used throughout this report:

APESB
Accounting Professional and Ethical Standards Board
APES
Accounting Professional and Ethical Standard
APRA
Australian Prudtntial Regulation Authority
AQRB
Audit Quality Review Board
ASIC
Australian Securities and Investments Commission
ASIC Act
Australian Securities and Investments Commission Act 2001
ASX
Australian Securities Exchange Ltd
ASXMS
Australian Securities Exchange Markets Supervision Pty Ltd
ATO
Australian Taxation Office
CALDB
Companies Auditors and Liquidators Disciplinary Board
CLERP
Corporate Law Economic Reform Program
CLERP 9 Act
Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004
Corporations Act
Corporations Act 2001
FRC
Financial Reporting Council
IAESB
International Accounting Education Standards Board
ICAA
The Institute of Chartered Accountants in Australia
IESBA
International Ethics Standards Board for Accountants
IFAC
International Federation of Accountants
IFIAR
International Forum of Independent Audit Regulators
IOSCO
International Organization of Securities Commissions
MOU
Memorandum of Undtrstanding
MOU bodies
APRA, ASIC, ASX, CPA Australia, ICAA and NIA
NIA
National Institute of Accountants
PCAOB
Public Company Accounting Oversight Board (United States)
RCAs
Registered Company Auditors
SEC
Securities and Exchange Commission (United States)
SMSF
Self-Managed Superannuation Fund
SRS Act
Corporations Legislation Amendment (Simpler Regulatory System) Act 2007
Treasury
Australian Treasury
UK
United Kingdom
US
United States of America

 


 

Australian auditors, auditors, individual auditors, audit firms and audit companies

The ASIC and Corporations Acts use a number of terms to describe the individuals, firms and companies that may be appointed as auditor for a company or a registered scheme under Part 2M.4 of the Corporations Act.

The expression Australian auditor', which is used in Part 12 of the ASIC Act for setting the scope of the FRC's auditor independence function, is defined in section 5 of that Act to mean an individual auditor, an audit firm or an audit company.

In the Corporations Act, the terms individual auditor', audit firm' and audit company' are used to describe the manner in which the requirements of the Act apply to the different structures under which an audit practice may be conducted: sole trader, partnership and company.

For purposes of consistency and to simplify drafting, this report uses the expression audit firm to refer to all three structures.

 


 

Contact officer

The contact officer for this report is the Financial Reporting Council Secretary, who may be contacted at:

Post:
Secretary
Financial Reporting Council
c/- The Treasury
Langton Crescent
PARKES ACT 2600
Telephone:
02 6263 3144
Facsimile:
02 6263 2770
Email:
frcsecretary@treasury.gov.au

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