September 25, 2012 – RSM Bird Cameron, one of the largest mid-tier accounting firms in Australia, has released its Audit Report following the completion of the 2011 reporting season. The analysis included 1042 listed companies, which accounts for 52 per cent of ASX listed companies, covering balance dates from June 2011 to May 2012. The analysis shows that 15 per cent of these audit reports included a going concern emphasis of matter paragraph.
Jason Croall, partner at RSM Bird Cameron, said, “RSM Bird Cameron wanted to find out what percentage of audit reports were impacted by going concern related issues.
“The analysis showed a significant increase from a similar audit report study conducted by RSM Bird Cameron in 2008, which could be an indication of potentially higher failure rates for companies and/or auditors being more conservative.”
In 2008, 315 companies were sampled, representing 17 per cent of ASX listed entities, and 6 per cent of audit reports lodged included a going concern emphasis of matter paragraph.
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Plans by the ASX to overhaul reporting guidelines for oil and gas companies has been welcomed by national accounting firm RSM Bird Cameron
According to RSM Bird Cameron’s Director of Assurance and Advisory David Wall, an overhaul of reporting requirements for oil and gas companies will give shareholders much needed protection.
‘The ASX disclosure requirements for oil or gas companies are not as heavily governed. The disclosure requirements for these companies are set out in the Listing Rules, which stipulate certain requirements, but do not provide a lot of guidance on the standards to be used when preparing disclosure reports or the consequences for poor quality or erroneous disclosures,’ said Mr Wall.
ASX Listing Rules require certain disclosures from listing companies. Those disclosure requirements can be either continuous disclosure or periodic disclosure. There are specific disclosure requirements for “mining entities” – companies involved in exploration or extraction of mineral, oil or gas. The ASX disclosure requirements for mining entities are governed by Chapter 5 of the ASX Listing Rules, which have differing disclosure requirements for companies involved in minerals to those involved in oil or gas. Read more ❯