This report summarises findings from Australian registrable superannuation entities (RSEs) financial reporting and audit surveillance for the financial year 2024–25. RSEs were required to lodge audited financial reports with the Australian Securities and Investments Commission (ASIC) for the first time for financial years that commenced on or after 1 July 2023. 

The report reveals inconsistent approaches to disclosing investments, limited disclosure of sponsorship and advertising expenses, and insufficient audit evidence obtained in the valuation of some investments. Based on the findings, it calls on superannuation trustees and auditors to do more to strengthen the quality of audited RSE financial reports. It highlights areas where the quality of financial reporting and audits can be improved. 

The report will be of interest to preparers, reviewers and users of financial information such as auditors, audit committees, superannuation trustees, members, accounting firms and professional accounting bodies.

Key findings

• Superannuation trustees and auditors should be doing more so that valuations of assets in financial reports are reliable and give members confidence in their investments.
• RSEs took different approaches when categorising unlisted investments in the fair value hierarchy, often with limited disclosure about their approach.
• Sponsorship and advertising expenses were not separately disclosed in some financial reports because RSEs took a narrow, quantitative approach to materiality.
• Auditors are not doing enough to obtain sufficient audit evidence about investment valuations in the RSE financial reports.