Australia to Tighten Oversight of Auditors After KPMG Leak Scandal
Synopsis
ASIC is tightening oversight of auditors following the KPMG leak scandal, with plans to increase legal action against misconduct and strengthen its focus on auditor independence.
Key Highlights
- Following the KPMG leak scandal, ASIC will have a regulatory focus on auditors.
- The regulator will pursue more cases where auditor misconduct is detected, both in the courts and through disciplinary procedures.
- ASIC will pay closer attention to conflicts of interest and auditor independence.
The Australian Securities and Investments Commission (ASIC), Australia’s corporate regulator, said it would increase its oversight of auditors in the wake of the KPMG leak scandal. ASIC wrote letters to around 2,900 auditors, saying it would pursue stronger legal action whenever auditor misconduct is found.
Greater Focus on Misconduct
ASIC Commissioner Kate O’Rourke said the regulator is concerned about auditors who fail to comply with legal, professional and ethical standards requiring them to act independently and with integrity.
She said ASIC intends to take more court action and disciplinary measures where misconduct is uncovered.
Greater Attention to Conflicts of Interest
ASIC also plans to increase its focus on conflicts of interest involving auditors and the companies they audit, particularly in situations where personal relationships could compromise an auditor’s independence.
Source: Reuters
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