G100 to make a submission regarding the inquiry into the regulation of auditing in Australia

In the past two months, we have focused on building strong political relationships with political parties following the Federal election, representing members’ views on the policies and inquiries of the government and the opposition. To that end, we have had extended meetings with Ministers, Shadow Ministers and critical backbenchers raising issues including continuous disclosure obligations and shareholder class actions and FBT – particularly the compliance burdens.

The Group of 100 (G100) will be making a submission to the Parliamentary Joint Committee on Corporations and Financial Services, regarding the inquiry into the regulation of auditing in Australia. The investigation comes in shortly after Senator Deborah O’Neill moved a motion to this effect at the beginning of August. 

The terms of reference of the inquiry entail an investigation of a range of aspects, such as:

• The relationship between audit and non-audit services, and potential conflicts of interests;
• Level of competition in the audit profession;
• Audit quality and the effectiveness of audit in detecting and reporting ‘fraud and misconduct’;
• Changes in the role of audit and the scope of audit products;
Effectiveness and appropriateness of legislation, regulation and licensing;
• Adequacy and performance of regulatory, standards, disciplinary and other bodies.

The recent FRC survey confirmed that corporates, and those responsible for their governance on behalf of investors, do not recognise a significant issue with the external audit in Australia
http://www.frc.gov.au/media/media-releases/2019-2/audit-quality/

G100 will also be working with the FRC on a survey of members regarding the external audit as an essential part of our communication with the Joint Committee. This will enable us to talk with the Committee on other issues of great interest such as tax reform, deregulation and reform of shareholder class actions.

If you have any comments or strong views on the above issues, please let us know. You may contact Mr Andrew Porter, CFO at AFIC and Chair of the G100, Mr Stephen Woodhill, CEO of the G100 or the G100 office.

We are planning to make a submission to the Parliamentary Joint Committee on Corporations and Financial Services, regarding the inquiry into the regulation of audit in Australia. The investigation began after Senator Deborah O’Neill moved a motion to this effect at the beginning of August. In the last two weeks, we have had excellent meetings with many of the members of the Joint Parliamentary Committee discussing the inquiry, and we have reviewed the issues with regulators. 

September will bring multiple networking opportunities. Two business networking lunches in Sydney and Melbourne, sponsored by our newest member Sundaram Business Services, the Political Engagement Day and Dinner in Canberra and the rescheduled ASX Breakfast in Sydney.

Other events coming up are the CPA Congress, in October where G100 members will receive a 20% discount should they wish to attend. In November we have our biennial congress, titled ‘CFO Live’ and being run in conjunction with the Australian Financial Review.