Australia’s Corporate Watchdog Reissues Guide on Auditor Reporting Obligations

Key Takeaways

• Updated Guidance: ASIC reissued Regulatory Guide 34 to simplify auditor reporting obligations and reflect changes in the law.
• Sustainability Reporting: Auditors must now report suspected contraventions connected to sustainability disclosures.
• Expanded Scope: Obligations cover superannuation entities, corporate collective investment vehicles (CCIVs), and compliance plans of retail CCIVs.
• Integrity Safeguards: Reporting requirements now include attempts to unduly influence or mislead auditors, conflicts of interest, and auditors’ own suspected contraventions.
• Legal Framework: Updates consolidate reporting duties under the Corporations Act 2001 and the National Consumer Credit Protection Act 2009.
• Policy Continuity: ASIC emphasized no major shift in overall reporting policy, only technical updates and clarifications.

Deep Dive

Australia’s corporate watchdog has refreshed its guidance for auditors, issuing an updated regulatory guide that consolidates and simplifies rules around reporting breaches and contraventions to the regulator.

The Australian Securities and Investments Commission (ASIC) has reissued Regulatory Guide 34 on auditor obligations and reporting to ASIC (RG 34), which sets out auditors’ responsibilities to notify the regulator of suspected contraventions and other matters of concern. The new guide replaces guidance issued in March 2020.

While ASIC has not altered its overall policy on when auditors should report, the update reflects changes to the law and incorporates more detailed guidance on several areas:

• Sustainability reporting: Auditors must now consider suspected contraventions connected to sustainability disclosures.
• Superannuation and investment vehicles: The guidance applies to audits of registrable superannuation entities, corporate collective investment vehicles (CCIVs), and compliance plans of retail CCIVs.
• Influence and interference: Auditors are obliged to report attempts to unduly influence, interfere with, or mislead them.
• Conflicts of interest: New clarifications are provided on when conflicts and related relationships must be reported.
• Self-reporting: Auditors must also notify ASIC of their own suspected contraventions.

ASIC described these revisions as “technical updates,” noting they reflect the regulator’s approach to emerging reporting obligations and replace outdated references.

Legal Framework

RG 34 provides auditors with practical guidance on reporting duties under several key provisions:

• Corporations Act 2001
• National Consumer Credit Protection Act 2009
• Auditor independence obligations

These obligations extend to reporting contraventions or suspected contraventions, attempts to mislead or improperly influence auditors, conflicts of interest, and instances where auditors themselves may have breached their duties.

By consolidating the framework into a single updated guide, ASIC aims to give auditors greater clarity and consistency in meeting their reporting obligations. While the updates incorporate new expectations tied to sustainability reporting and evolving corporate structures such as CCIVs, the regulator emphasized that its overarching policy on when to report has not fundamentally changed.

The reissue signals ASIC’s intent to align auditor reporting with current legal and regulatory priorities while keeping auditors firmly on the frontline of market integrity.

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