Chapter 1Scrutiny of annual reports
Introduction
1.1Under subsection 243(b) of the Australian Securities and Investments Commission Act 2001 (ASIC Act), the Parliamentary Joint Committee on Corporations and Financial Services (the committee) is required:
…to examine each annual report that is prepared by a body established by the ASIC Act of which a copy has been laid before a House, and to report to both Houses on matters that appear in, or arise out of, that annual report and to which, in the Parliamentary Committee’s opinion, the Parliament’s attention should be directed.[1]
1.2The committee has examined the annual reports of eight bodies established by the ASIC Act:
Australian Securities and Investments Commission (ASIC);
The Takeovers Panel (the Panel);
Companies Auditors Disciplinary Board (CADB);
Financial Reporting Council (FRC);
Australian Accounting Standards Board (AASB);
Office of the Australian Accounting Standards Board (Office of the AASB);
Auditing and Assurance Standards Board (AUASB); and
Office of the Auditing and Assurance Standards Board (Office of the AUASB).[2]
1.3The Senate Economics Legislation Committee also considers the above annual reports under Senate Standing Order 25(2),[3]including timeliness and compliance with relevant reporting requirements. Therefore, in conducting its analysis of the annual reports of bodies established under the ASIC Act, the committee focussed on the statutory requirements and any substantive issues identified in the annual reports.
Report structure
1.4This report considers the annual reports of the following agencies:
chapter two—the Takeovers Panel and CADB;
chapter three—the FRC, AASB, and AUASB; and
chapter four —ASIC.