Under the Corporations Act, there are specific financial reporting and auditing requirements that need to be adhered to for AFSL Licensees. ASIC regularly monitors these reports to maintain market integrity and investor confidence. This ensures that the financial reports and audit options are relevant and reliable, contributing to better informed decisions in the marketplace.
Audit reports must now be lodged via ASIC's Regulatory Portal, replacing the AFS licensee portal.
The updated forms also require more detailed information than previously, including whether:
- the company paid dividends or granted options during the year;
- there was indemnification of officers/auditors
- PI insurance was required, and if so whether it was adequate, the limits and claims made.
To assist AFS Licensees and Limited AFS License holders in their audit preparation, Sophie Grace has prepared the following summary of important items to keep in mind as you prepare for your audit.
Continue reading below.
Know the lodgement date
Lodgement dates for AFS Licensees differ according to the entity which holds it. Therefore, it is important that you know when your audit is required to be submitted to ASIC to avoid potential breaches and late fees
Contact your auditor
We recommend contacting your auditor before the end of the financial year to ensure you have enough time to prepare the necessary documents for the audit and ASIC lodgement. Gathering documentation to demonstrate compliance can be time-consuming, especially for smaller businesses with limited resources.
Auditors have recently increased their scrutiny of AFS Licensees and Limited AFSL Holders due to heightened oversight from ASIC and legal pressures concerning audit quality.
Know what needs to be submitted
It is important that you know and understand the documentation that needs to be submitted for your audit to avoid late fees, potential breaches and other possible penalties. AFSL holders are required to submit the forms FS70 and FS71. Limited AFSL holders are required to submit a form FS76.
Audit reports must now be lodged via ASIC's Regulatory Portal, replacing the AFS licensee portal.
The updated forms also require more detailed information than previously so it is important to get started early on drafting these, rather than on the final day.
Review documents prior to submission
It's essential that you review all forms prior to submission.
All information that you submit to ASIC should be correct, including the information that has been prepared by your auditor. You should double check your forms to ensure they make sense and align with your AFSL conditions and financial statements.
Make sure your records are easily accessible
To make the preparation for your audit quicker and simpler, we recommend ensuring your records are easily accessible.
Lodge your accounts online
You must lodge your annual accounts online via the ASIC Regulatory portal. To register for online access visit ASIC's website.
To get more information, click on the link below. Please don't hesitate to contact us if you have any questions.
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- Tips for ensuring your audit documents are prepared and submitted on time
- AFS Licensees – Are you Complying with your Financial Obligations?
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
