After more than two years of battling red tape, industry silence, and outdated licensing processes, the movement to reform ASIC’s Registered Company Auditor (RCA) registration system is finally gaining traction. Treasury, via the Australian National Audit Office (ANAO), has now launched a performance audit into ASIC’s regulation of company auditors — and I couldn’t be more relieved.

This has been a long road.

I began my RCA registration journey nearly two and a half years ago. For the past 12 months, I’ve actively been campaigning to expose the significant barriers faced by small firms trying to enter the audit profession in Australia. My campaign has included hundreds of hours of unpaid advocacy, writing to just about every institution that might listen.

A Letter-Writing Marathon

Since 2023, I’ve sent over 1,000 letters and emails — not a typo — to the following:

ASIC Chair and executive staff

Treasury representatives

Federal and state politicians

The Prime Minister’s Office

Industry regulators including the AASB and FRC

Professional bodies such as CPA Australia, CA ANZ, and IPA

Media outlets like the AFR, Accountants Daily, and Inside Small Business

Think tanks, environment groups, and public policy forums

And that’s just the short list.

Despite this mountain of effort, my applications to become an RCA have repeatedly hit roadblocks. The core issue? An outdated and anti-competitive licensing regime that seems to favor large audit firms and overseas-trained auditors — while making it near impossible for competent small-practice professionals to qualify.

Discrimination by Design?

The system is stacked. ASIC’s registration requirements are structured in such a way that they actively discriminate against sole practitioners and small firms. They rely heavily on traditional, hierarchical firm structures and ignore collaborative, project-based training models that are common in smaller practices. This is not only unfair — it’s economically short-sighted.

Treasury and ASIC appear to accept audit formats provided by large international firms while rejecting perfectly capable Australian applicants with years of practical experience. It’s a system that values form over substance.

Meanwhile, I’ve assisted with articles explaining why the one-on-one training in small firms often results in more robust and rounded auditors compared to conveyor-belt graduates in big firms. Unfortunately, those in charge of licensing have been slow — if not outright unwilling — to engage with these ideas.

ANAO Steps In – At Last

After multiple submissions to the ANAO in late 2024 — and after my articles were published in Accounting Times and Inside Small Business — the ANAO has finally opened its doors to these concerns. Their current review of ASIC’s RCA registration regime is a direct result of industry pressure and grassroots advocacy.

Encouragingly, once I named certain industry bodies in my submissions, some of them began to take the issue more seriously. CPA Australia and CA ANZ, among others, have now lodged submissions of their own to the ANAO — a sign that the tide may finally be turning.

A Ripple Becoming a Wave

In recent months, I’ve been heartened to see more accounting publications and professionals speaking out. The audit industry’s decline — especially among domestic RCAs — is no longer something we can ignore. With new sustainability and environmental reporting standards on the horizon, the need for a strong, sustainable pipeline of local auditors is more critical than ever.

Yet without reform, we risk creating an even greater reliance on imported labour and large firms, which will further sideline small Australian practices.
Where to From Here?

This fight isn’t over. If you’re a small practitioner, an aspiring RCA, or someone who simply believes in fair and open access to the profession, now is the time to speak up.

Make your submission to the ANAO. Contact your professional body. Share your story. The more voices behind this, the stronger our case for lasting change.

Thank you for the support from Accountants Daily.

https://www.accountantsdaily.com.au/regulation/20858-small-firm-accountants-face-major-barriers-to-auditor-registration