ONE in five audits conducted by the nation's major accounting firms delivers an opinion that the auditor cannot verify, according to a review by the corporate regulator that calls for broad improvements in practices.
An inspection of auditors by the Australian Securities and Investments Commission has detailed systemic problems within the sector, including a widespread failure of auditors to perform "mandatory" procedures.
ASIC reviewed 95 audits conducted by 19 major Australian firms categorised as "national" or "network" firms.
Of the audits conducted by national firms -- global firms with national partnerships such as the big four accounting firms -- one in 10 did not hold sufficient audit evidence to support all "key conclusions" made by the auditor.
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