In November 2022, the FRC commenced a review into how audit quality and compliance with auditing and ethical standards by auditors is monitored and supported in Australia.

This review builds on the FRC’s 2019 review which provided a qualitative assessment of Registered Company Auditors (RCA) disciplinary processes.

The current review focused on how regulators and Professional Accounting Bodies (PABs) monitor and support audit quality and identify issues with non-compliance with auditing and ethical standards. It also evaluated whether any improvements were necessary to processes to identify breaches and escalation to disciplinary action.

The Review includes 15 recommendations for ASIC, the PABs, and the Government in relation to improvements of audit quality review programs, how compliance with ethical standards are monitored and enforced and possible future legislative changes.