The Financial Reporting Council (FRC) welcomes the release today of the Chartered Accountants Australia and New Zealand’s new report ‘Clearer Transparency – Assessing the Second Year of the Audit Firm Transparency Reports in Australia’.
The FRC notes the findings by Chartered Accountants Australia and New Zealand and encourages audit firms required to prepare transparency reports to provide information to their clients that will help the audit committees make proper assessments about the quality of the audit work undertaken.
The FRC Deputy Chair Michael Coleman encourages audit committee chairs of listed entities to question auditors about their transparency reports. "Audit quality is fundamental and the transparency report should provide key insights to how audit firms manage and monitor the competency and effectiveness of the entity's engagement team" he said.
The FRC is responsible for overseeing the effectiveness of the financial reporting framework in Australia.
Copies of the report can be found on the Chartered Accountants Australia New Zealand website.