AASB Research Report 15 Review of Auditor Remuneration Disclosure Requirements

Research Report 15 compares Australian and selected overseas jurisdictions’ auditor remuneration disclosure requirements and identifies factors that could be considered in implementing the Parliamentary Joint Committee on Corporations and Financial Services Inquiry into the Regulation of Auditing recommendation on the audit and non-audit services fee disclosure requirements.

The comparison shows Australia currently requires disclosure of a relatively low level of disaggregation of auditor remuneration. The report outlines one of the considerations for improving the quality of auditor remuneration disclosures in Australia to
specify required disclosure categories of the allowed ‘non-audit services’ and related remuneration such as:

o audit-related services;
o taxation services;
o other assurance services; and
o all other non-audit services;

This Report also considers whether the current requirements (including the terminology used) are consistently interpreted and applied, and whether the Accounting Standards and Corporations Act 2001 requirements could be better aligned.

The Report aims to form the basis for the AASB working collaboratively with regulators, other standard setters, users, preparers and other stakeholders to reach a clear, effective, broadly accepted and improved framework for financial reporting (and assurance) in Australia in respect of auditor remuneration disclosures.