CPA Australia has said the audit profession is continuing to engage constructively with the Australian Securities and Investments Commission (ASIC) on lifting quality, while stressing that super fund trustees retain responsibility for investment valuations.
The accounting body welcomed the publication of ASIC’s ‘Accounting for your super: Super fund financial reporting and audit 2025–26’ report.
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The report found improvements in audit quality but also identified continuing difficulties in valuing more complex and less transparent assets.
ASIC’s review highlighted ongoing issues in the valuation of unlisted investments, including whether trustees and auditors receive enough information to properly scrutinise the assumptions used in valuations.
CPA Australia Audit and Assurance lead Tiffany Tan said the findings showed progress within the audit profession, while reflecting wider issues in a superannuation sector.
Tan said: “CPA Australia sees ASIC’s findings as evidence of a sector that is continuing to mature its approach to audit quality and valuation governance.
“While the second-year report identifies areas for improvement, it is encouraging that firms have responded constructively through remedial actions designed to strengthen audit quality and deliver better outcomes for super fund members.
“The report also highlights a broader reality facing the industry. As super funds increase their exposure to unlisted and private market investments, auditors are being asked to provide assurance over increasingly complex investment structures involving multiple layers of fund managers and external parties.”
Tan said the report underlined that high-quality valuations depend on shared responsibility across the financial reporting ecosystem. She also welcomed ASIC’s ongoing work with the Australian Prudential Regulation Authority.
CPA Australia Superannuation lead Richard Webb said the report was a reminder that super fund trustees, rather than auditors or external investment managers, are ultimately accountable for investment valuations.
According to ASIC’s report, trustees frequently depended on external fund managers for information on unlisted investment valuations.
The review also found that some auditors had not collected adequate evidence to test those valuations or determine the reliability of third-party information.
The regulator further identified timely valuation adjustments and improved disclosures as areas requiring further attention.
