ASIC Audit Focus Areas 2025–26: What Every Australian Audit Firm Must Know

If you run an audit practice in Australia, 2025–26 is not the year to have your back office in anything less than perfect shape.

ASIC has made it clear — through two significant announcements in the past year — that audit quality and auditor conduct are firmly in its sights. More file reviews, new enforcement priorities, and a direct call for auditors to lift their governance standards. The message couldn’t be more direct.

In this post, we break down what ASIC has actually said, why it matters for your firm right now, and the practical steps you can take to stay ahead — without putting more pressure on an already stretched team.

What ASIC Has Announced — The Two Key Sources

1. ASIC's Financial Reporting and Audit Focus Areas for FY 2025–26 (May 2025)

In May 2025, ASIC released its financial reporting and audit surveillance priorities for the current financial year. For audit firms, the headline was hard to ignore: <span “>ASIC confirmed it will review more audit files in 2025–26 than in previous years — and critically, it will now include a random selection of files from across the regulated population.

That last point changes the risk landscape for every audit firm, not just those with flagged concerns. It means any file, from any firm, could be selected for review. Quality and consistency across your entire audit practice matter more than ever.

ASIC also confirmed expanded surveillance across three additional areas, particularly relevant to audit firms:

RSE (Registrable Superannuation Entity) audits — ASIC will review RSE audit files as part of its 2025–26 program, with a focus on investment portfolio measurement and disclosure of marketing and advertising expenses. RSEs were only required to lodge audited financial reports for the first time in 2024, making this a relatively new and evolving obligation.
Sustainability reporting — Mandatory sustainability reporting under AASB S2 is now in effect for Group 1 entities with financial years commencing on or after 1 January 2025. ASIC has confirmed it will review these reports as part of its 2025–26 surveillance program. For audit firms supporting these entities, this adds a new layer of preparation and documentation.
Grandfathered entities — Some entities that previously held lodgement exemptions still haven’t lodged financial reports since those exemptions were removed. ASIC has made it clear it will follow up — and expects auditors to flag non-compliance through the appropriate channels.

2. ASIC's 2026 Enforcement Priorities (November 2025)

In November 2025, ASIC published its broader enforcement priorities for 2026. Auditor misconduct was explicitly named on that list.

The language was unambiguous: auditors must ensure their governance and quality control processes meet best practice industry standards. ASIC’s Deputy Chair also signalled that the regulator has doubled the number of new investigations in the past year and nearly doubled the number of new court cases filed.

The message is simple — ASIC is not just watching. It is acting.

What This Means for Your Audit Practice

Put together, these two announcements paint a clear picture for Australian audit firms heading into the second half of FY2025–26:

Your audit files need to be thorough, well-documented, and review-ready — not just at year-end, but consistently throughout the year.
RSE and superannuation-related audit work carries additional scrutiny and requires tighter file preparation.
Sustainability reporting is a new audit obligation that many firms are still building processes around — ASIC has noted it will take a pragmatic approach to enforcement, but firms should not treat this as a reason to delay.
Auditor independence and conflicts of interest remain under the microscope — ASIC has already targeted nearly 50 auditors for detailed reviewfollowing its large-scale independence surveillance.

The challenge for most audit firms is not knowing what needs to be done — it’s having the capacity to actually do it well.

Also read: Why Audit Back Office Support Is Your Strongest Compliance Control at Scale

The Capacity Problem Most Firms Aren't Talking About

Here’s the reality that many audit firm partners are quietly dealing with right now: increased regulatory expectations are landing on teams that are already at capacity.

Workpaper preparation, file collation, compliance documentation, and audit support tasks are time-consuming. When your senior auditors are spending hours on this kind of prep work, there’s less time for quality review — the very thing ASIC is assessing.

And when capacity is stretched, something eventually gives. Turnaround times slip. Standards drift. Good people burn out.

The firms that are navigating this period well have made one practical decision: they’ve separated the preparation work from the professional review work. Back office audit support handles the time-consuming prep. Senior auditors focus on review, judgement, and client engagement.

5 Practical Steps for Audit Firms Right Now

Audit your own workload. Map out how much time your team spends on prep vs. review. If prep is eating more than 40% of audit time, capacity is already at risk.
Review your RSE and superannuation audit files. Given ASIC’s specific focus here, ensure investment portfolio disclosures and expense disclosures are clearly documented and defensible.
Get across sustainability reporting obligations. If your clients include Group 1 entities with financial years from 1 January 2025, mandatory AASB S2 sustainability reporting applies. Don’t wait until year-end to start building your audit approach.
Check your independence documentation. With ASIC’s auditor independence surveillance already underway, now is the time to self-review — and self-report if needed. ASIC has confirmed it expects auditors to use the appropriate channels proactively.
Address capacity before peak season. EOFY is approaching. If your team is already stretched, outsourcing audit back office preparation now — before the crunch — is far more effective than scrambling during it.

How SuperRecords Helps Audit Firms Stay Ahead

At SuperRecords, we provide dedicated audit back office support to Australian accounting firms and auditors. Our team of 1,500+ qualified professionals handles the time-consuming preparation work — workpapers, file organisation, compliance documentation — so your senior auditors can focus on quality review and client outcomes.

We’re ISO 27001-certified, CPA-recognised, and have over 1,000 Australian accounting firms trusting us with their back office operations. Most clients are up and running in under 7 days.

With ASIC’s 2025–26 surveillance program underway, now is exactly the right time to make sure your audit practice has the capacity to withstand scrutiny, close gaps, and demonstrate audit quality.

Get in touch with us today to see how SuperRecords can support your audit firm with reliable, scalable back-office solutions.