Australia

Australia’s financial reporting and audit framework is established primarily under the Corporations Act 2001 and related regulations. Under this framework, entities meeting prescribed thresholds, including public companies, large proprietary companies, registered managed investment schemes, disclosing entities, and certain foreign-controlled small proprietary companies, are required to prepare and lodge annual financial reports with the Australian Securities and Investments Commission (ASIC). Charitable companies limited by guarantee that are registered with the Australian Charities and Not-for-profits Commission (ACNC) are required to lodge financial reports with the ACNC in accordance with applicable legislation. Financial reports prepared under the Corporations Act 2001 must comply with applicable accounting standards and present a true and fair view.

The Australian Accounting Standards Board (AASB), an independent Australian Government agency established under the Australian Securities and Investments Commission Act 2001, is responsible for developing, issuing, and maintaining accounting standards in the jurisdiction. Australia applies a differential reporting framework for general purpose financial statements comprising Tier 1 Australian Accounting Standards (AAS) and Tier 2 Simplified Disclosures. Tier 1 incorporates International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board for for-profit entities with public accountability and enables an explicit statement of compliance with IFRS. Other eligible entities may apply Tier 2, which retains the recognition, measurement, and presentation requirements of Tier 1 while providing reduced disclosure requirements.

Mandatory audit requirements are also established under the Corporations Act 2001. Financial reports subject to statutory audit must be audited in accordance with Australian Auditing Standards (ASA) issued by the Auditing and Assurance Standards Board (AUASB), an independent statutory agency of the Australian Government. The AUASB is responsible for developing, issuing, and maintaining auditing and assurance standards applicable in Australia.

Australia has adopted auditing standards that are based on the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB). The AUASB generally adopts ISA in their entirety, with limited jurisdiction-specific amendments only where necessary to address legislative or regulatory requirements. This framework supports jurisdiction-wide application of ISA-based standards for all mandatory audits.

Oversight of the financial reporting framework is exercised through the Financial Reporting Council (FRC) under the Australian Securities and Investments Commission Act 2001. The FRC provides strategic oversight of the standard-setting process for both accounting and auditing standards, monitors the effectiveness of the financial reporting framework, and advises the Government on matters affecting the quality and integrity of financial reporting and audit in Australia.

The accountancy profession in Australia operates under a shared regulatory model. Statutory regulation applies primarily to company auditors and tax practitioners, while membership in professional accountancy organizations is voluntary. The principal laws governing the audit profession are the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001. Under this framework, the Australian Securities and Investments Commission (ASIC) is responsible for the registration and oversight of auditors who perform statutory audits under the Corporations Act 2001.

The regulated audit profession is centered on the Registered Company Auditor (RCA) designation. Individuals seeking registration as an RCA must satisfy the requirements set out in the Corporations Act 2001, including prescribed academic qualifications, auditing competence, practical experience or an approved competency-based alternative, and fit and proper requirements. ASIC is also responsible for registering authorised audit companies, which may conduct audit work where the statutory eligibility criteria are met, including requirements relating to RCA directors, ownership, voting control, and professional indemnity insurance.

ASIC is responsible for maintaining the register of auditors, assessing applications for registration, monitoring compliance with legislative requirements, and taking enforcement action where auditors fail to meet their obligations. Australia also has a statutory disciplinary framework for company auditors under which ASIC may seek cancellation, suspension, or other sanctions through the relevant disciplinary board established under the legislation. ASIC has continued to strengthen enforcement activity in relation to auditor misconduct and audit quality in recent years.

In addition to statutory regulation, three professional accountancy organizations are recognized in the jurisdiction: CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA). Membership in these bodies is voluntary, but they play an important role in the professional framework by setting entry and continuing professional development requirements for their members, monitoring compliance with member obligations, and maintaining quality assurance and investigative and disciplinary arrangements for members within their respective memberships. Certain designations issued by these bodies are also recognized within the statutory framework for auditor registration and other regulatory purposes.

Ethical requirements for members of the three professional accountancy organizations are established through the Accounting Professional & Ethical Standards Board (APESB). In particular, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) applies to members of CPA Australia, CA ANZ, and IPA and incorporates the restructured international code together with subsequent amendments adopted for application in Australia. APES 110 includes independence requirements applicable to auditors and other assurance practitioners.

Tax practitioners are regulated separately under the Tax Agent Services Act 2009 and related regulations. The Tax Practitioners Board (TPB) is responsible for the registration and oversight of tax agents and Business Activity Statement agents, as well as for administering the Code of Professional Conduct under that framework. CPA Australia, CA ANZ, and IPA are each accredited by the TPB as recognized professional associations for both tax agent and Business Activity Statement agent purposes, which supports recognition of relevant qualifications and experience for registration.

Independent public oversight of the audit profession in Australia is established under the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001, which together provide the legal framework for the regulation and supervision of statutory auditors and audit firms.

The Australian Securities and Investments Commission (ASIC) serves as the independent public oversight authority for the audit profession. In addition to its role as the securities and corporate regulator, ASIC is responsible for the registration, supervision, and enforcement oversight of Registered Company Auditors (RCAs) and authorized audit companies that perform statutory audits under the Corporations Act 2001.

Under this framework, ASIC is responsible for approving and maintaining the register of RCAs, monitoring compliance with ongoing professional obligations, conducting audit inspection and surveillance programs, and taking enforcement action where breaches of legislative, auditing, or independence requirements are identified. ASIC’s inspection activities are risk-based and focus on audit quality, auditor independence, and compliance with the Australian Auditing Standards (ASA) and related legal requirements. ASIC publishes periodic reports summarizing findings from its financial reporting and audit surveillance activities, including thematic findings on audit quality and independence.

Disciplinary matters relating to company auditors are subject to a statutory tribunal framework. Where appropriate, ASIC may refer matters concerning the suspension or cancellation of auditor registration to the Companies Auditors Disciplinary Board (CADB), an independent statutory disciplinary body established under Commonwealth legislation. The CADB acts as the disciplinary tribunal for applications brought by ASIC and has authority to impose sanctions, including suspension and cancellation of registration.

ASIC is a member of the International Forum of Independent Audit Regulators (IFIAR), which supports international cooperation and the exchange of best practices among independent audit oversight authorities.

This oversight framework reflects a fully independent public oversight model in which the regulation, inspection, and enforcement of statutory auditors are exercised by the state through ASIC, supported by a separate disciplinary tribunal for formal sanctions proceedings.

Australia has three professional accountancy organizations recognized within the regulatory framework: Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia, and the Institute of Public Accountants (IPA). Membership in all three bodies is voluntary. Collectively, they play a significant role in the professional framework by establishing educational and continuing professional development requirements for their members, requiring compliance with applicable ethical and professional standards, maintaining quality assurance and investigative and disciplinary arrangements for members, and supporting implementation of accounting, auditing, and ethical pronouncements issued in the jurisdiction. The three bodies are members of the International Federation of Accountants (IFAC) and the Confederation of Asian and Pacific Accountants (CAPA). CA ANZ and CPA Australia also maintain links with the ASEAN Federation of Accountants (AFA).

Chartered Accountants Australia and New Zealand (CA ANZ)

CA ANZ was formed on 31 December 2014 through the amalgamation of the Institute of Chartered Accountants in Australia and the New Zealand Institute of Chartered Accountants. It is a voluntary professional accountancy organization operating across both Australia and New Zealand and reports that it supports more than 140,000 members through education, professional development, and advocacy. In Australia, CA ANZ is one of the principal bodies whose designations are recognized for certain statutory and regulatory purposes, including within the auditor registration framework. CA ANZ is a member of IFAC and CAPA and an associate member of AFA.

CPA Australia

CPA Australia was founded in 1886 and is one of the largest professional accountancy bodies originating in the jurisdiction. It provides education, training, technical support, advocacy, and professional resources to members in Australia and internationally. CPA Australia reports a global membership of more than 175,000 professionals across over 150 countries and regions and offers three principal membership categories: Associate, CPA, and Fellow. CPA Australia is a member of IFAC and participates in regional professional initiatives, including through CAPA and as an associate member of AFA.

Institute of Public Accountants (IPA)

The IPA was founded in 1923 and is a voluntary professional accountancy organization representing members and students working across public practice, business, government, and academia. The IPA continues to position itself as a professional body with a strong focus on small and medium-sized practices and small and medium-sized entities, while also maintaining an international membership base. Recent public reporting indicates that the IPA Group had more than 35,000 members and students as of 30 June 2024. The IPA is a member of IFAC and CAPA.

The quality assurance (QA) review framework in Australia operates under a shared regulatory model. At the jurisdiction level, the Australian Securities and Investments Commission (ASIC) is authorized under the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001 to conduct audit inspection and surveillance activities for audits of entities preparing financial reports under the Corporations Act 2001. ASIC’s inspection program is risk-based and focuses on audit quality, auditor independence, and compliance with applicable auditing and legislative requirements.

In addition, the three professional accountancy organizations recognized in the jurisdiction — CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA) — maintain quality assurance review systems for their respective members in public practice. The PAOs report that these systems are aligned with the requirements of SMO 1, including cycle-based reviews, quality control and quality management requirements, and linkages with investigative and disciplinary processes where relevant.

Australia has adopted the Australian Standards on Quality Management (ASQM), which incorporate the international quality management standards issued by the International Auditing and Assurance Standards Board (IAASB). Specifically, ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements and ASQM 2 Engagement Quality Reviews are in force and aligned with ISQM 1 and ISQM 2, together with revised ASA 220 Quality Management for an Audit of a Financial Report and Other Historical Financial Information. The current AUASB compilations reflect the January 2025 versions of ASQM 1 and ASQM 2.

Taken together, the statutory oversight exercised by ASIC and the complementary PAO review systems support a jurisdiction-level framework that is aligned with the requirements of SMO 1 and operational for mandatory audits. Accordingly, the QA framework is assessed as Adopted.

Current Status: Adopted

Initial and continuing professional development requirements in Australia are established through a shared framework involving the Australian Securities and Investments Commission (ASIC) and the three professional accountancy organizations, CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA). For statutory auditors, section 1280 of the Corporations Act 2001 and ASIC’s auditor registration framework require prescribed academic qualifications, practical experience, competence assessment, and continuing professional development. ASIC requires registered company auditors to complete at least 120 hours of continuing professional development over a three-year period.

The professional qualification pathways of CPA Australia, CA ANZ, and IPA continue to require an accredited or recognized university degree, completion of the relevant professional program, structured practical experience, and continuing professional development. CPA Australia requires 120 hours of continuing professional development over each triennium. CA ANZ requires 120 hours over each triennium for Chartered Accountants, with structured mentored practical experience as part of qualification. IPA’s continuing professional development requirements also operate on a triennial basis and require 120 hours, including a substantial verified component.

ASIC’s approved Auditing Competency Standard for Registered Company Auditors states that it incorporates requirements, tasks, and activities from the revised International Education Standards (IES). In parallel, the current IFAC jurisdiction profile for Australia states that all three PAOs’ educational systems align with the IES. Taken together, the jurisdiction-level framework reflects the revised IES benchmark currently used for assessment, including a learning outcomes approach, practical experience, assessment, and continuing professional development requirements.

Accordingly, the IES framework in Australia is assessed as Adopted. The jurisdiction-level framework is aligned with the relevant SMO requirements through the combined operation of ASIC’s statutory requirements and the professional education and continuing professional development systems of the three PAOs.

Current Status: Adopted

The Corporations Act 2001 requires annual financial reports subject to statutory audit to be audited in accordance with standards issued by the Auditing and Assurance Standards Board (AUASB), the independent Australian Government standard-setter for auditing and assurance pronouncements. Australia applies Australian Auditing Standards (ASA), which are based on the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB) and are generally adopted in full, with only limited amendments where necessary to address legislative or jurisdiction-specific requirements.

The AUASB continues to maintain the Australian standards in line with the latest ISA as issued. Recent examples include the AUASB’s approval in May 2025 of the revised ISA 570 Going Concern as ASA 570, effective for financial reporting periods commencing on or after 15 December 2026, confirming that the jurisdiction continues to update its standards in step with the latest international pronouncements.

The jurisdiction-level framework is aligned with the relevant requirements of SMO 3, as ISA in their entirety and in their currently effective versions are adopted and required for application in all mandatory audits under Australian law. Accordingly, the ISA framework in Australia is assessed as Adopted.

With respect to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), the AUASB expressly determined in December 2023 not to adopt the standard for use in Australia following public consultation and consideration of the public interest. This does not affect the overall ISA adoption rating, which remains based on the full ISA suite

Current Status: Adopted

Ethical requirements for professional accountants in Australia are established by the Accounting Professional & Ethical Standards Board (APESB), the independent national standard-setter for ethical and professional standards. Members of CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA) are required to comply with APES 110 Code of Ethics for Professional Accountants (including Independence Standards).

Australia currently applies the compiled APES 110 (July 2025), which incorporates the restructured International Code of Ethics for Professional Accountants (including International Independence Standards) and subsequent amendments issued by the International Ethics Standards Board for Accountants (IESBA), including the technology-related revisions effective from 1 January 2025, tax planning and related services revisions effective from 1 July 2025, and sustainability reporting and assurance amendments issued in July 2025.

The jurisdiction-level framework is aligned with the relevant requirements of SMO 4, as the latest version of the international code is adopted and applies to all members of the three professional accountancy organizations, including independence requirements for assurance and audit engagements. Accordingly, the ethical framework in Australia is assessed as Adopted.

Current Status: Adopted

Financial reporting for public sector entities in Australia is established by the Australian Accounting Standards Board (AASB) through the Australian Accounting Standards (AAS) framework. Public sector entities apply accrual-based Australian Accounting Standards, which are based primarily on IFRS and include public sector-specific standards and guidance for not-for-profit and government entities. Australia continues to apply a transaction neutrality policy, under which similar transactions and events are generally accounted for consistently across sectors unless a public sector-specific treatment is required.

Australia has not adopted IPSAS directly as the financial reporting framework for all public sector entities. Instead, the jurisdiction applies accrual-basis national standards, namely Australian Accounting Standards, with public sector adaptations and references to international public sector developments. The AASB continues to monitor developments issued by the International Public Sector Accounting Standards Board (IPSASB) and has undertaken policy work on the future role of IPSAS in Australia’s public sector reporting framework, including consultation on whether IPSAS could form a future basis for not-for-profit public sector accounting.

Under the 2026 adoption definitions, this corresponds to Partially Adopted, as Australia applies accrual-basis national standards rather than IPSAS as issued for all public sector entities.

Current Status: Partially Adopted

Investigative and disciplinary arrangements for professional accountants in Australia operate under a shared framework involving the Australian Securities and Investments Commission (ASIC) and the three professional accountancy organizations, CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA).

At the jurisdiction level, ASIC is responsible for the surveillance, investigation, and enforcement of Registered Company Auditors (RCAs) under the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001. Where deficiencies or misconduct are identified, ASIC may impose conditions, suspend registration, seek cancellation, or refer matters to the Companies Auditors Disciplinary Board (CADB), which serves as an independent statutory disciplinary tribunal for formal sanctions proceedings. This provides a statutory complaints-based and information-based mechanism for auditors performing mandatory audits.

In addition, CPA Australia, CA ANZ, and IPA each maintain formal investigative and disciplinary systems for their respective memberships, including accountants in business, public practitioners, and statutory auditors who are members of those bodies. These systems are established through each body’s constitution, bylaws, disciplinary regulations, and professional conduct frameworks and include investigation, disciplinary decision-making, sanctions, and appeal mechanisms. The PAOs report that their systems are aligned with the requirements of SMO 6.

Taken together, the statutory enforcement framework operated by ASIC and the membership-based systems of the three PAOs provide an operational investigative and disciplinary framework covering professional accountants in the jurisdiction and aligned with SMO 6 requirements.

Current Status: Adopted

The Australian Accounting Standards Board (AASB) establishes the financial reporting framework in Australia through the Australian Accounting Standards (AAS). At the jurisdiction level, Australia has adopted IFRS Standards as issued by the International Accounting Standards Board (IASB) for entities applying Tier 1 Australian Accounting Standards. For-profit private sector entities with public accountability, including listed entities and pension funds, are required to apply Tier 1, and compliance with Tier 1 enables an explicit statement of compliance with IFRS Standards as issued by the IASB.

Australia also applies a Tier 2 Simplified Disclosures framework under AASB 1060, which retains the same recognition, measurement, and presentation requirements as Tier 1 and therefore remains based on IFRS Standards, while providing reduced disclosure requirements for eligible entities. Accordingly, the jurisdiction-level framework is fully aligned with the relevant benchmark underlying SMO 7.

Accordingly, IFRS at the jurisdiction level is assessed as Adopted.

Australia has not adopted IFRS for SMEs. The AASB continues to monitor the standard but currently applies its own differential reporting framework through Tier 2 Simplified Disclosures instead.

Current Status: Adopted

Relevant Organizations

Accounting Professional & Ethical Standards Board (APESB) – APES 110 Code of Ethics for Professional Accountants (including Independence Standards)

Australian Accounting Standards Board (AASB) – Accounting Standards and public sector reporting framework

Australian Auditing and Assurance Standards Board (AUASB) – Auditing and quality management standards

Australian Securities and Investments Commission (ASIC) – Financial reporting and audit oversight

Companies Auditors Disciplinary Board (CADB) – Auditor disciplinary oversight:

CPA Australia – Governance, professional standards, education, and technical resources:

IFRS Foundation – Jurisdictional Profile: Australia:

Relevant Legislation

Australian Securities and Investments Commission Act 2001

Corporations Act 2001

Tax Agent Services Act 2009

Relevant Publications

APESB – Compiled APES 110 (July 2025)

ASIC – Regulatory Guide 180 Auditor Registration

ASIC – Audit inspection and surveillance reports

AUASB – ASA 220 Quality Management for an Audit of a Financial Report and Other Historical Financial Information

AUASB – ASQM 1 Quality Management for Firms

AUASB – ASQM 2 Engagement Quality Reviews

AASB – AASB 1053 Application of Tiers of Australian Accounting Standards

AASB – AASB 1060 General Purpose Financial Statements – Simplified Disclosures

CPA Australia – Constitution and By-Laws (effective 1 October 2025)