Monitoring and enforcement
ASIC has responsibility for the surveillance, investigation and enforcement of the financial reporting and auditing requirements of the Corporations Act and conducts regular audit inspections and surveillances.
If we have queries or potential concerns during auditor surveillance, we will contact the auditor for clarification. Depending on the response, we may review the audit work papers and records to assess compliance.
If we find the auditor's conduct to be deficient, we may:
- impose or vary conditions on the auditor's registration
- agree to an enforceable undertaking, or
- refer the matter to the Companies Auditors Disciplinary Board.
The Companies Auditors Disciplinary Board (CADB) is an independent statutory body established under the ASIC Act. The primary role of the CADB is to act as an expert disciplinary tribunal to consider applications for the cancellation or suspension of the registration of auditors under the Corporations Act.
The CADB hears administrative or conduct applications made by ASIC or Australian Prudential Regulation Authority (APRA). The CADB is responsible for determining whether a registered auditor:
- has failed to carry out their duties and functions adequately and properly
- is not a fit and proper person to remain registered
- is subject to disqualification, or
- is otherwise ineligible to remain registered.
If the CADB is satisfied that some or all of the relevant contentions in an application have been established under the Act, it may make the following orders:
- cancel or suspend the auditor's registration, and/or
- admonish or reprimand the auditor, and/or
- require the auditor to give an undertaking.
See the CADB website for more information about the CADB, its composition, functions and decisions.