ASIC is seeking feedback in relation to its current approach to auditor resignation, removal and replacement, including in particular, its approach to timing and giving of consent for auditors of public companies, schemes, AFS licensees and credit licensee trust accounts. We will continue to monitor any ASIC developments in this area.
On 30 May 2013, ASIC released Consultation Paper 209 Resignation, removal and replacement of auditors: Update to RG 26 announcing a review into its approach to the resignation, removal and replacement of auditors (CP 209). In considering whether to change its approach, ASIC will have regard to the consultation process and recent legislative changes around auditor independence, as well as ASIC’s experiences under its current approach and approaches in other jurisdictions.
CP 209 attaches a draft updated Regulatory Guide 26 renamed Resignation, removal and replacement of auditors (RG 26) which incorporates clearer and more consistent and transparent guidance on ASIC’s policy approach. The amended RG 26 also extends guidance to cover auditors of AFS licensees and credit licensee trust accounts (in addition to auditors of public companies and schemes).
Specifically, CP 209 seeks views on matters such as:
- the timing of auditor resignations and early consent circumstances;
- whether ASIC’s consent to the resignation of public company auditors should continue to be conditional on there being a possible replacement auditor;
- whether proposed new public company auditors should be prevented from commencing work until ASIC has consented to the resignation of the incumbent auditor; and
- the resignation of auditors that are ineligible to continue due to auditor rotation requirements.
Submissions on CP 209 close on 30 August 2013.
See also ASIC’s media release dated 30 May 2013.