meta_id 3161071

On an unspecified date, the Australian Securities and Investments Commission (ASIC) outlined its key focus areas for financial reporting, audit and sustainability reporting activities in the 2026–27 financial year. ASIC Commissioner Kate O'Rourke said that surveillance programs reinforce the importance of high-quality reporting and audit, noting that reliable financial information is critical to transparency in Australia's capital markets and informed investment decisions by investors. For financial reporting, ASIC will monitor areas requiring significant judgement from preparers, including revenue recognition, asset impairment assessment, and recognition and measurement of financial instruments. ASIC will review financial reports of listed and unlisted companies, registrable superannuation entities (RSEs) and managed investment schemes (MISs). ASIC will also review disclosures of companies with provisions for decommissioning and site-restoration costs, assessing these against new guidance issued by the Australian Accounting Standards Board (AASB). For audit activities, ASIC will review 25 audit files selected from listed and unlisted companies, RSEs, and a selection of MISs. Selection will be based on material corrections to financial reports, concerns regarding material misstatement, independence threats, or random selection. ASIC will monitor audit firms' implementation of remedial actions in response to previous findings and engage with the six largest audit firms regarding firm-wide actions taken in response to Report 817: Building trust: Auditors' compliance with independence and conflict of interest obligations. On sustainability reporting, ASIC will continue administering the mandatory climate reporting framework with focus on Group 1 entities' submissions and engagement with large audit firms on assurance methodologies. ASIC has updated frequently asked questions relating to sustainability report review and audit and will participate in government-announced consultation on reforms to reduce reporting burden while maintaining core sustainability requirements. ASIC will continue monitoring non-lodgement of financial reports by large proprietary companies and compliance by registered company auditors with annual statement lodgement obligations.