© Commonwealth of Australia 2013

ISBN 978-0-642-74932-1

Ownership of intellectual property rights in this publication

This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the Financial Reporting Council logo, information in Chapter 2 sourced from material provided by the professional accounting bodies and where otherwise stated. The full licence terms are available from the Creative Commons website.

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Information sourced from material provided by the professional accounting bodies

Approval to use information in Chapter 2 sourced from material provided by the professional accounting bodies should be sought from the Chief Executive Officers of the relevant bodies as follows:

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Secretary
Financial Reporting Council
c/ The Treasury
Langton Crescent Parkes ACT 2600
Email: frcsecretary@treasury.gov.au

Printed by CanPrint Pty Ltd

Layout - FRC Crest

Chairman:
Ms Lynn Wood
c/- The Treasury
Langton Crescent
Canberra ACT 2600

Email:
chairman@frc.gov.au

Secretariat:
c/- The Treasury
Langton Crescent
Canberra ACT 2600

Telephone:
(02) 6263 3144

Facsimile:
(02) 6263 2770

Email:
frcsecretary@treasury.gov.au

18 October 2013

The Hon Joe Hockey MP
Treasurer
Parliament House
CANBERRA ACT 2600

Dear Treasurer

I have pleasure in presenting the annual report of the Financial Reporting Council (FRC) for the year ended 30 June 2013.

The report has been prepared in accordance with sections 235B of the Australian Securities and Investments Commission Act 2001 (ASIC Act) for presentation in the Parliament. Subsection 235B(1) of the ASIC Act requires the FRC to prepare a report on its operations during the year, and on the achievement of the objects of Part 12 of the ASIC Act relating to accounting and auditing standards. Section 225(2B) of the ASIC Act further requires the FRC to provide strategic policy advice and report on the quality of audits conducted by Australian auditors.

The FRC strategic policy advice role in relation to audit quality and associated reporting requirements commenced on 27 June 2012 following the passage of the Corporations Legislation Amendment (Audit Enhancement) Act 2012. The report for the year ending 30 June 2013 is the first opportunity for the FRC to provide strategic advice on audit quality.

Subsection 235B(4) of the ASIC Act requires the report to be tabled in each House of the Parliament as soon as practicable.

Yours sincerely

SIGNED

Lynn Wood
Chairman