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Using examples from the Australian regulatory and professional environments,discuss the statement by Treasury on audit quality

―Audit quality involves a wide range of inter-related factors such as the legal framework
relating to audit regulation (including the company auditor registration system, the
auditor independence regime in the Corporations Act 2001 and the accounting and
auditing standards), the ethical standards applying to the members of the professional
accounting bodies, the professional qualities and skills of auditors and their staff and the
role and activities of the audit regulator — the Australian Securities and Investments
Commission (ASIC) — and other bodies involved in the audit review process. ….There
are also other drivers of audit quality that relate to the practices and processes adopted
within audit firms, such as the culture within the audit firm and the quality of the firm’s
audit process, including the experience and technical expertise of the audit team and
the audit methodology adopted by the firm.‖ (Treasury, 2010, p.2)
REQUIRED
Using examples from the Australian regulatory and professional environments,
discuss the above statement by Treasury on audit quality.
This assignment requires students to undertake to undertake self directed research.
However, in order to assist students to develop a basic understanding of the issues so that
they can confidently explore the topic and address what is required, a number of readings
have been provided.
This assignment is to be completed on an individual basis. The word limit is 2500 words.
No more than 10% of the words submitted can be either direct quotations or close
paraphrasing. Where quotes and close paraphrasing are used, they must be referenced.
Please see also the University’s policy on plagiarism at http://www.adelaide.edu.au/policies/230
Students are required to submit a hard copy through the Hub and a soft copy through
―Turnitin‖. Please ensure that you enter the correct information on the assignment cover
sheet.2
READINGS (Available on MyUni)
Australian Securities and Investments Commission (2011) Audit Inspection Program Public
Report for 2009–10, viewed 01/09/2011 published-29-June-2011.pdf>
Bank For International Settlements (2008) External Audit Quality and Banking Supervision.
Basel, viewed 01/09/2011
Financial Reporting Council *(2008) The Audit Quality Framework, viewed 01/09/2011

Institute of Chartered Accountants in Australia (2010a) Annual Report on the Quality Review
Program for the Year Ended 30
th
June 2010, viewed 01/09/2011,

Institute of Chartered Accountants in Australia (2010b) Quality Review: past, present and
future: Getting the balance right, viewed 27/02/2012.

Leung P., Coram P., and Cooper B. (2011) Modern Auditing and Assurance Services 5th ed.
Wiley, Milton Qld. pp.131-144.
.
The Treasury (2010) Audit Quality in Australia: A Strategic Review, Commonwealth of
Australia (2009), viewed 01/09/2011

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