Core Insights - CPA Australia supports the ANAO's performance audit of ASIC's regulation of registered company auditors, which found ASIC's oversight to be "partly effective" [1][2] - The audit highlights the need for clearer performance indicators to enhance transparency and accountability in audit regulation [1][3] Group 1: Key Areas for Improvement - The ANAO report identifies several areas for improvement, including performance measurement, remediation processes, enforcement priorities, stakeholder engagement, and ministerial expectations [3][5] - CPA Australia recommends a tiered classification system for surveillance reporting to improve clarity and support meaningful improvements in audit quality [4] Group 2: Remediation and Enforcement - Enhancing remediation processes is crucial for timely and effective addressing of identified deficiencies, and CPA Australia welcomes ASIC's commitment to strengthen this aspect [5] - The ANAO report notes that ASIC's enforcement actions have primarily focused on administrative breaches rather than directly addressing audit quality issues [5] Group 3: Stakeholder Engagement - Ongoing dialogue is encouraged to align enforcement activities more closely with audit quality objectives [6] - The ANAO emphasizes the importance of enhancing transparency and collaboration with the auditing profession to achieve common goals [6]

Core Insights - The International Auditing and Assurance Standards Board (IAASB) has released illustrative sustainability assurance reports to aid practitioners in applying ISSA 5000 [1][4] - The new set of reports provides detailed examples relevant to daily practice, expanding on the previous four sample reports [2] - The reports cover various scenarios, including reviewing sustainability disclosures under IFRS S1 and S2, assessing sustainability reports, and combining different assurance types [3] Group 1 - The illustrative reports demonstrate practical applications of ISSA 5000, aimed at enhancing the consistency of sustainability assurance engagements [1][4] - The new examples include five cases where unmodified assurance conclusions are provided, addressing real-world application challenges [2][4] - Additional scenarios illustrate how to draft reports with modified conclusions, such as qualified conclusions and disclaimers [3][4] Group 2 - In September, IAASB updated the definition of publicly traded entities to align with the International Ethics Standards Board for Accountants' Code of Ethics [5] - This update affects both International Standards on Quality Management (ISQMs) and International Standards on Auditing (ISAs) [5]

Core Insights - Grant Thornton has appointed four new partners in its advisory and audit practices, indicating a strategic expansion during a transformative period for the firm [1][5] Audit Division - Tom Kelly and Ian Wilson will join the audit division, with Kelly bringing nearly 30 years of experience from KPMG, focusing on insurance and reinsurance clients [2][5] - Wilson specializes in asset management, including funds, private equity, and structured finance, and has experience with various accounting standards [2][3] Advisory Division - Zoë Sheehan-Kohli will lead the business consulting segment for the asset management industry, with 17 years of experience in technology consulting across the US and DACH regions [3][5] - Howard Shortt has been appointed as a cyber partner in Ireland's advisory practice, focusing on cybersecurity issues and regulatory compliance [3][4] Organizational Changes - The new appointments align with the growth of Grant Thornton Advisors and follow the recent elevation of Steve Tennant to CEO for Europe, the Middle East, and Africa (EMEA) [4][5]

Core Points - The Financial Reporting Council (FRC) in the UK has penalized BDO LLP and two former audit partners for misconduct related to audit deficiencies [1][4] - The misconduct involved dishonest activities by a senior manager at BDO between 2015 and 2019, including fabricating audit evidence and issuing reports without proper authorization [2][3] Summary by Sections Investigation and Findings - An investigation was initiated after a senior manager at BDO was found to have committed dishonest activities across multiple audits [1] - The senior manager's actions included fabricating audit evidence and using unauthorized electronic signatures [2] - BDO's internal controls were inadequate, failing to act on internal reports that could have highlighted the senior manager's misconduct [2] Oversight Failures - John Everingham and Kevin Cook did not provide sufficient oversight on audits involving the senior manager, with Everingham failing to oversee 21 audits and Cook neglecting 13 audits [3] - Everingham signed off on ten audit reports from 2015 to 2018 without adequate supporting documentation [3] Penalties and Repercussions - BDO is required to pay a financial penalty of £5.85 million ($7.6 million) and reimburse audit fees for affected audits [4] - John Everingham faces a fine of £189,000 and a six-year prohibition from audit work, while Kevin Cook received a £90,000 penalty and a three-year prohibition [5] - BDO must file biannual reports to the FRC for two years detailing progress in addressing the identified issues [4][6]

Core Insights - Cooper Parry has expanded its audit operations in London and the South, increasing its team and expertise in the region [1][4] - The national audit team now consists of 800 professionals, with 230 based in London and the South [1] - The firm has welcomed Sarah Harries as audit director, who brings significant experience in auditing law firms and partnership structures [1][2] Team Developments - Sarah Harries joined from BDO UK and is knowledgeable in UK GAAP, Solicitors Accounts Rules, and LLP SORP, supporting professional services clients with regulatory compliance [2] - Callum Henderson has been promoted to Audit Director for Tech & High Growth, having been with Cooper Parry for 18 months [3] - Sakina Rashid, a key member of the audit team, has been contributing to client service delivery since joining a year ago [3] Strategic Focus - Gary Staunton, partner and Audit regional head, emphasized the need for auditors to be partners who understand growing businesses and prioritize their audits [4] - The firm aims to build a team of ambitious specialists that combine technical excellence with innovative thinking, focusing on adding real value beyond compliance [4]

Core Insights - EY has appointed Sue Kench as its new global independent non-executive (INE) and member of the EY Global Governance Council (GGC) [1][2] - Kench has nearly three decades of experience at King & Wood Mallesons, including serving as global chief executive from 2017 until December 2024 [1][2] - The INE role aims to provide diverse perspectives to support EY's audit and advisory services in capital markets [2][3] Group 1 - Kench will advise on policy, strategy, and public interest considerations within her new role [2] - She joins current INEs Tonia Lovell and Duane M. DesParte, who are based in Europe and the US, respectively [2] - EY's global chair and CEO, Janet Truncale, emphasized Kench's leadership and governance experience as vital for EY's transformation and client support [3] Group 2 - The independent members of the GGC are responsible for enhancing EY's standards and governance [3] - Truncale highlighted the importance of effective governance, transparency, accountability, and ethical decision-making for EY's operations [4] - Kench's integrity and experience are expected to significantly benefit the organization on a global scale [4]

Core Insights - Crowe, an audit, tax, advisory, and consulting firm, has promoted three senior team members to partner roles, enhancing its leadership team and expertise [1][4] Group 1: Promotions and Roles - Hayley Ives has over 18 years of experience in tax resolutions and will guide clients through complex dealings with HMRC, including fraud investigations and disputes [1][2] - Matthew Howard, who joined Crowe in 2007 as a trainee, specializes in statutory audit and has experience in HFI audits for companies preparing for public listings [2][3] - Marc Newman, with Crowe since 2006, has 19 years of audit experience and will serve as Corporate Audit Partner, focusing on both UK GAAP and IFRS [3] Group 2: Clientele and Expertise - Ives' clientele includes individuals and entities dealing with tax residence and domicile issues, particularly in offshore matters [2] - Newman's client base ranges from privately-owned businesses to AIM-listed groups, with experience in various industries including manufacturing and international trade [3] Group 3: Company Growth - Crowe's CEO, Nigel Bostock, emphasized the importance of these promotions in supporting the firm's growth and enhancing client services [4] - In August 2025, Crowe expanded by opening a new office in Birmingham's One Colmore Row building, occupying the entire 8th floor [4]

Core Insights - Abacus Worldwide has expanded its network by incorporating Balans-Inform-Audit (BIA), an audit firm based in Uzbekistan, which enhances its presence in the region [1][2] - BIA, founded in 1999, provides services in economics, finance, and corporate management, helping companies adapt to Uzbekistan's market-oriented economy [1] - The addition of BIA is significant as Uzbekistan seeks to attract more foreign investment, necessitating local accounting expertise to navigate economic changes [2] Company Developments - Abacus Worldwide's CEO, Julio Gabay, emphasized the importance of local accounting support in light of Uzbekistan's currency reforms and corporate governance improvements [2] - In August 2025, Abacus Worldwide also added two Latin American firms, Triade Auditores e Consultores from Brazil and Seven Group G7 from Colombia, to its network [2][3] - Triade, established in 1989, offers a range of auditing services for both national and multinational corporations, while Seven Group G7 specializes in audit and accounting services with a team experienced in large companies [3] Strategic Objectives - Abacus Worldwide aims to facilitate growth for its member firms by addressing client needs both domestically and internationally [4] - The association focuses on creating partnerships with suitable firms in specific locations to support its growth objectives [4]