ASIC reminds Registered Company Auditors of their obligations and outlines stronger oversight

ASIC wrote to Australian registered company auditors on 22 July 2026 reminding them of their legal, ethical and professional obligations and the importance of protecting public confidence in the audit profession. The letter was issued at a time of heightened focus on auditor conduct, following concerns raised about audit firm behaviour including a confidential information matter involving KPMG Australia.

The letter outlined the audit related work ASIC is undertaking, including its longstanding surveillance program of financial reports and audit files, with the selection of files for review in the 2026 to 2027 cycle to include both randomly selected and risk based files. ASIC referred auditors to its earlier Report 817 Building trust, concerning auditors' compliance with independence and conflict of interest obligations, and noted that it has commenced a separate surveillance of the large audit firms examining internal complaints received about their audit practices.

ASIC stated that auditor misconduct remains an enforcement priority and that, where it has sufficient concern, it will commence investigations and may take enforcement action, including applying to the Companies Auditors Disciplinary Board to suspend or cancel an auditor's registration, issuing infringement notices, or commencing civil proceedings. The letter was sent to registered company auditors generally rather than directed at a specific firm, and does not itself allege any contravention by a particular auditor.