Chartered Accountants Australia and New Zealand (CA ANZ) has expressed its support for a recent review of auditor compliance, saying clearer expectations will help the profession fulfil obligations and preserve public confidence. 

The Australian Securities and Investments Commission (ASIC) published the Building Trust report examining auditors’ adherence to independence and conflict-of-interest requirements.  

The publication follows ASIC’s updated guidance on auditor self-reporting, RG 34, which signals a move toward breach disclosure and encourages a ‘breach and report’ approach similar to that used in banking. 

ASIC’s in-depth examination found breaches in around one-third of a sample of 48 cases, though the broader review examined more than 2,900 auditors using data analytics and other regulatory methods to identify risk areas. 

CA ANZ Reporting and Assurance Leader Amir Ghandar said: “We welcome ASIC’s data-led review of auditor independence and the findings will help improve systems and practices – but it is also important to note that the overall breach rate across all audits is likely much lower than the results suggest. 

“We will continue to work constructively with ASIC to ensure the audit profession is supported to understand this evolving area of judgment, especially after the updated guidance on self-reporting clarified expectations around ‘when and what’ to self-report.”  

According to Ghandar, although the revised guidance was issued after the period covered by the review, ASIC observed that none of the breaches identified had been self-reported, in contrast with sectors such as financial services where self-reporting of breaches is more common. 

The report notes that historically auditors have focused on reporting issues by the entities they audit to avoid breaching requirements themselves, rather than adopting a model of reporting their own contraventions. 

In September 2025, CA ANZ lodged recommendations with the Productivity Commission addressing economic cooperation and reforms to Australia’s tax framework.  

The submission was a response to four of the commission’s five interim reports.