The Minister for Financial Services & Regulation, Joe Hockey, today confirmed that corporate governance expert Professor Ian Ramsay had been asked to examine audit independence in Australia.
"In view of overseas developments and questions about the role of auditors in recent corporate failures, it is timely to review Australia's audit independence rules and ensure they support public confidence in the country's 7000 registered auditors," the Minister said.
Professor Ramsay, Director of the Centre for Corporate law and Securities Regulation at Melbourne University,.is an acknowledged corporate governance expert and brings to the inquiry broad experience and understanding of the audit function.
The inquiry includes an examination of recent overseas developments in particular the audit independence rules issued earlier this year by the US Securities and Exchange Commission and more recent proposals released by the European Community and the International Federation of Accountants.
The inquiry builds on work done by Treasury over the last year that focused primarily on international developments.
Professor Ramsay is consulting with a range of stakeholders, including professional associations; shareholder groups, accounting firms and users of audited financial statements.
Professor Ramsay is expected to report to the Minister in the near future, when his recommendations for any proposed new requirements will be considered.