ASIC to improve international co-operation

The securities regulator has entered into a co-operative audit oversight arrangement with the US Public Company Accounting Board (PCAOB) in the hopes of boosting international co-operation.

Parliamentary Secretary to the Treasurer Chris Pearce welcomed the arrangement, stating that with the globalisation of capital markets closer international co-operation by the Australian Securities and Investments Commission (ASIC) with overseas regulators was very important.

The joint inspections, which begin later this year, coincide with the enactment earlier this year of the Australian Securities and Investments Commission Amendment (Audit Inspection) Act 2007, which empowers ASIC, with the consent of the minister, to enter into mutual co-operative arrangements with foreign regulators. This will provide ASIC with enhanced information-gathering powers in relation to its domestic and international responsibilities and ensure Australian auditors have complied with audit requirements in that foreign country.

“The proposed joint audit inspection process between ASIC and the PCAOB will reduce red tape here in Australia and provide significant cost savings for Australian audit firms registered with the PCAOB. The safeguards built into the legislation and the co-operative arrangement will ensure we get the right balance between ASIC’s statutory responsibilities and protecting the interests of clients and their audit firms,” Pearce said.

In order to assess whether the inspection process has met expectations the Government will review the arrangement after the first round of triennial joint inspections have been completed in 2009. This is in line with the Government’s response to the Rethinking Regulation Taskforce Report.