On 18 May 2026, the Australian Securities and Investments Commission (ASIC) announced the key focus areas for its financial reporting, audit and sustainability reporting activities in the 2026-27 financial year, including updates to its surveillance programs.

The focus areas are:

  • Financial reporting: ASIC will be particularly interested in areas where significant judgement from preparers of financial reports is required. This includes revenue recognition, assessment of asset impairment, recognition and measurement of financial instruments. For 2026-27, ASIC will review the financial reports of listed and unlisted companies, registrable superannuation entities (RSEs) and managed investment schemes (MISs). ASIC will also review the disclosures of companies that have provisions for decommissioning and site-restoration costs. This will include assessing disclosures against new guidance issued by the AASB (illustrative example D of AASB 137 Provisions, Contingent Liabilities and Contingent Assets).
  • Audit: ASIC will review 25 audit files from a mix of sources in 2026-27. While ASIC will maintain its focus on listed and unlisted companies and RSEs, it will also include a selection of MISs. ASIC is also engaging with the six largest firms to understand the firm-wide actions taken in response to Report 817 Building trust: Auditors’ compliance with independence and conflict of interest obligations.
  • Compliance activities: ASIC will continue to focus on non-lodgement of financial reports by large proprietary companies and will also review compliance by registered company auditors with their obligations to lodge their annual statements.
  • Sustainability reporting and assurance focus areas: The steps ASIC has taken to support entities’ compliance with the sustainability reporting framework are set out on its sustainability reporting webpage. Among other things ASIC has updated its FAQs relating to the review and audit of sustainability reports and provided sustainability reporting relief to related schemes. It has also shared preliminary observations on lodged sustainability reports which will assist 30 June reporters as they prepare to lodge their sustainability report for the first time. In addition, the Australian Government has announced that it proposes to commence consultation on reforms to reduce the reporting burden while maintaining core sustainability reporting requirements, and ASIC will participate in that consultation process. Ahead of any reforms, ASIC’s administration of the mandatory climate reporting framework will continue, with a focus on the sustainability reports being submitted by Group 1 entities, and engagement with large audit firms on assurance methodologies as appropriate.