ASIC said the extended deadlines will assist with potential pressures on resources for the audits of smaller entities and the impacts from COVID-19 conditions.
“ASIC recognises that current audit resources might be affected by the number of subsidiaries of foreign companies reporting at 31 December, increased staff turnover, delays with new secondees from overseas after the lifting of travel restrictions, existing secondees travelling home, staff leave, and reduced virtual secondments from overseas audit firms that have mainly 31 December year end audits,” the regulator said on Tuesday (30 November).
“Directors of some unlisted companies may be asked by their auditors to facilitate the spreading of deadlines for lodging audited financial reports.
“Directors should consider the information needs of shareholders and other users of their financial reports, as well as meeting borrowing covenants or other obligations, when deciding whether to depart from the normal statutory deadlines.”
ASIC said it will continue to monitor market conditions and developments relating to COVID-19 after 7 January 2022, however currently there is no need to extend the deadline any further beyond that date.
