Steve Irons (Swan, Liberal Party) Share this | Link to this | Hansard source

On behalf of the Parliamentary Joint Committee on Corporations and Financial Services, I present the committee's report on the 2016-17 annual reports of bodies established under the ASIC Act.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—The committee has examined the annual reports of the bodies established under the Australian Securities and Investments Commission Act 2001:

The committee focused on the statutory requirements, pertinent operational matters, and other matters that in the committee's opinion parliament should consider.

The committee notes that this complements and does not duplicate the Senate Economics Legislation Committee's examination of the annual reports under Senate standing order 25(20).

The committee considers that the bodies have fulfilled their annual reporting responsibilities.

However, the committee has reserved its judgement on whether the Financial Reporting Council, the Australian Accounting Standards Board and the Auditing and Assurance Standards Board have fulfilled their regulatory functions due to continuing concerns about audit quality.

The committee also remains concerned about the efficiency and effectiveness of the Companies Auditors Disciplinary Board (formerly the Companies Auditors and Liquidators Disciplinary Board) being such a small body, with such a small and irregular workload.

The committee notes that the explanatory memorandum for the Insolvency Law Reform Act 2016 indicates that one of the arguments for removing the liquidator functions from the Companies Auditors and Liquidators Disciplinary Board was the perceived inefficiency and cost of its processes.

The committee also notes that the reforms associated with the Insolvency Law Reform Act 2016 were focused on insolvency and may not have adequately considered the adequacy of the Companies Auditors Disciplinary Board continuing in its current form.

ASIC has also continued to raise concerns about audit quality in its audit inspection program.

The committee therefore recommends that the government review the adequacy of current arrangements for auditor disciplinary functions.