[Global Financial Insights] ASIC Proposes Updates to Financial Reporting and Audit Relief

Editorial Team 

Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update:-

1. ASIC proposes updates to guidance on financial reporting and audit relief by issuing Regulatory Guide 43

The Australian Securities and Investments Commission (ASIC) has proposed updates to its existing guidance on financial reporting and audit relief. The update aims to provide greater clarity and consistency in the application of relief measures by entities and auditors. The proposed update is issued under Regulatory Guide 43, Financial reports and audit relief.

According to ASIC, the proposed updates are intended to ensure the currency and clarity of guidance on ASIC’s approach to granting relief from the financial record-keeping, financial reporting, and audit requirements. Thus, the revised guidance seeks to clarify the circumstances under which financial reporting and audit relief may be available and the expectations placed on preparers, directors, and auditors when such relief is applied.

ASIC emphasised that the proposed changes are designed to support high-quality financial reporting, while ensuring that relief measures do not compromise transparency, investor protection, or audit integrity. The regulator highlighted the continued importance of professional judgment, adequate disclosures, and compliance with core accounting and auditing standards.

It is important to note that ASIC proposes to withdraw Regulatory Guide 29 (RG 29) after the updated Regulatory Guide 43 (RG 43) is published.

Source- Australian Securities and Investments Commission

2. IESBA launches firm culture and governance viewpoints as it begins Asia outreach with a focus on emerging markets

The International Ethics Standards Board for Accountants (IESBA) has launched a new series of “Firm Culture and Governance Viewpoints”, marking a significant step in its efforts to strengthen ethical behaviour, accountability, and governance within audit and professional services firms. The initiative was formally introduced as part of IESBA’s outreach activities in Asia.
The newly released viewpoints are intended to stimulate dialogue among firms, regulators, and stakeholders on how organizational culture and governance structures influence ethical decision-making and audit quality. The publication highlights the growing expectation that firm leadership plays a central role in embedding ethical values, professional scepticism, and public-interest responsibility throughout their organizations.

According to IESBA, the viewpoints focus on practical considerations relating to tone at the top, leadership accountability, incentive structures, and governance mechanisms, emphasizing that a strong ethical culture cannot be achieved through compliance alone but requires sustained commitment from senior management and those charged with governance. The “Firm Culture and Governance Viewpoints” form part of IESBA’s wider strategic focus on enhancing trust in the accountancy profession and reinforcing the profession’s role in serving the public interest.

Source- International Ethics Standards Board for Accountants