By Scott Murdoch
SYDNEY, July 22 (Reuters) – Australia’s corporate regulator said on Wednesday it would increase its regulatory oversight of auditors following the KPMG leak scandal.
The Australian Securities and Investments Commission (ASIC) said in a letter sent to about 2,900 auditors it would escalate legal action against auditors where misconduct is found to have occurred.
ASIC does not have the power to regulate auditing firms, which are considered partnerships, but does oversee the individual employees working in those practices.
“As the regulator of registered company auditors, ASIC is concerned about issues that have been raised about auditors who have not complied with the law and professional and ethical standards to act independently and ethically,” ASIC Commissioner Kate O’Rourke wrote in the letter.
O’Rourke said ASIC would seek to take more court and disciplinary action against auditors if misconduct is found.
She said ASIC would increase its focus on conflict of interest situations amongst auditors and the firms they audit, especially where personal relationships could call into question an auditor’s independence.
(Reporting by Scott Murdoch; Editing by Jacqueline Wong and Christian Schmollinger)
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