The Parliamentary Secretary to the Treasurer, Chris Pearce, today released a comparative review of the Australian Auditor Independence Requirements.
“The comparative review compares the Australian requirements with those in Canada, the European Union, the United Kingdom and the United States,” Mr Pearce said.
“The globalisation of capital markets, and the cross-border activities of companies and audit firms, make it essential that the design of the regulatory framework in our jurisdiction takes account of developments in other jurisdictions,” Mr Pearce said.
“The overall conclusion of the comparative review, which was prepared by the Treasury, is that, despite differences in terminology, institutional arrangements and legal frameworks, there is a substantial underlying equivalence between the Australian requirements and international best practice standards.”
“While the comparative review does not attempt to make policy recommendations, several of the key findings are directly relevant to the Australian Government's commitment to simplifying the regulatory system and reducing unnecessary or excessive red tape.”
“There may be scope, in line with overseas developments, to refine the existing auditor independence requirements,” Mr Pearce said. “This would reduce the compliance burden, without changing or weakening our existing robust regulatory framework.”
“To this end, Treasury's comparative review will make a significant contribution to informing the policy debate in Australia on auditor independence issues among key stakeholders.”
“Treasury will conduct a targeted consultative process with key stakeholders, including the Australian Securities and Investments Commission, the Financial Reporting Council, the major audit firms and the three main professional accounting bodies,” Mr Pearce said.
Mr Pearce encouraged other interested people to comment on the key findings in the comparative review. It is available at www.treasury.gov.au.
“I will also consult with stakeholders to identify any additional measures that could be included in my Simpler Regulatory System Bill, which is scheduled to be introduced into Parliament in 2007,” Mr Pearce said.
CANBERRA
15 November 2006
Contact: Larissa Karpish 02 6277 2088