The ASIC has outlined its key focus areas for financial reporting and audit surveillance for the 2025–26 financial year.
The move reinforces ASIC’s ongoing efforts to raise the standard of financial disclosures and audit quality across the country’s regulated entities.
ASIC Commissioner Kate O’Rourke said the aim is to support integrity and transparency in corporate Australia. “These surveillance programs aim to enhance the integrity and quality of financial reporting and auditing in Australia. We expect all entities to provide reports and audits that are accurate, complete and informative,” she said.
On the financial reporting side, ASIC will continue to scrutinise areas involving complex judgment. These include revenue recognition, asset valuation, and estimating provisions—particularly critical as market volatility continues to challenge the reliability of forecasts and assumptions.
The audit program is also set to ramp up in 2025–26, with ASIC planning to review a larger volume of audit files. These will be selected based on changes in financial disclosures, identified risks of material misstatement, or from internal and external intelligence. A random sampling of audit files will also be conducted.
Surveillance will expand to registrable superannuation entities (RSEs), which were first required to submit audited financial reports in 2024. ASIC has already reviewed half of these reports and will examine the remainder in the coming year. Particular attention will be paid to how RSEs measure and disclose investment portfolios and report marketing expenses.
For grandfathered entities—companies previously exempt from reporting requirements—ASIC will monitor compliance with newly reinstated financial report lodgement obligations. “Many of these previously grandfathered entities are large companies and should be lodging financial reports,” O’Rourke said.
Sustainability reporting will also come under the spotlight. From January 2025, large Group 1 entities must disclose climate-related risks under the AASB S2 standard. ASIC plans to review these reports from December 2025 and has pledged a “proportionate and pragmatic” approach as the market adjusts to these obligations.
Additionally, ASIC continues its major surveillance of auditor independence, examining over 100 audit engagements and targeting nearly 50 auditors. The findings are expected later this year.
Lastly, ASIC has updated Information Sheet 284 to clarify tax residency disclosure obligations in public company reports. The changes apply to financial years starting on or after 1 July 2024.
Elsewhere in the ESG space, Datamaran has launched Harbor, a new global community platform designed specifically for in-house corporate sustainability professionals.
The launch of Harbor comes in response to growing challenges faced by sustainability leaders, including intensifying regulatory pressures, rising stakeholder expectations, and increased scrutiny of ESG practices. Many professionals in this space are expected to spearhead transformative change with limited resources and under mounting scrutiny.
Founded in 2014, Datamaran is known for its AI-driven ESG risk management platform, which empowers companies to navigate ESG compliance, strategy, and reporting. The company has established itself as a trusted provider of insights and tools for sustainability professionals.
Harbor is positioned as a safe and supportive digital space where sustainability leaders can connect with peers, access timely information, and find inspiration. It offers a range of features including a peer community, expert content, and practical tools that help users stay compliant and resilient in their roles.
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