Written Assignment (700-750 Words)
Audited financial statements play a key role in ensuring the credibility of financial information. However, the 2011-2012 ASIC Audit Inspection program revealed problems with audit quality.
Available at:
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rep317-published-4-December-2012.pdf/$file/rep317-published-4-December-2012.pdfhttp://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rep317-published-4-December-2012.pdf/$file/rep317-published-4-December-2012.pdf
You are required to:
Summarise and critically evaluate the 2011-2012 ASIC Audit Inspection program report’s findings concerning audit quality.
Give your opinion on possible steps audit firms might take to overcome the problems with audit quality identified in the ASIC Audit Inspection?
Give your opinion on possible regulatory changes which might be introduced to improve audit quality. In particular, discuss the importance of pushing for mandatory audit firm rotation if audit quality continues to deteriorate.