The Australian Securities and Investments Commission (ASIC) has released its first in-depth review of super fund financial reporting and audits, calling for a ‘greater uplift’ across the sector.
Published on 30 September 2025, Report 816 examined 60 Registrable Superannuation Entity (RSE) financial reports accompanied by 5 large-firm audit files, and found inconsistent valuation disclosures, limited transparency on certain expenses, and gaps in audit evidence.
This first major review of super fund financial reporting and audits revealed widespread inconsistencies that could weaken member confidence. They found that funds are using different methods to value unlisted investments and often aren’t explaining those methods clearly. The report also noted that many funds don’t separately disclose sponsorship and advertising expenses, making it harder for members to see where money is going.
The review is part of a broader program to enhance reporting and audit quality, with more reports and surveillance planned over the coming year.
Already the review has prompted change, with one fund agreeing ‘…to disclose sponsorship and advertising expenses ($19 million in 2024) in its next financial report to enhance transparency.’
This is the first year RSE financial reports have been lodged with ASIC (for financial years beginning on or after 1 July 2023). ASIC has made super audits a priority and will maintain its focus through the 2025–26 surveillance program.
Further reports on auditor independence and the annual financial reporting and audit public report are slated for October, and enforcement action remains on the table for significant Corporations Act breaches.
According to ASIC, ‘RSEs should:
- understand the nature of indirectly held investments, the underlying assets and the valuation
- methods used to determine their fair value
- critically assess all indicators of impairment (e.g. frozen unit redemptions) and write down
- investments when required at the balance date, and
- where there are indicators of impairment or the redemption price is otherwise unreliable, carefully
- assess the fair valuation methodologies, inputs, judgements and assumptions involved in
- calculating the fair value of the underlying assets.’
What ASIC found
Here’s what ASIC discovered during this high-level review.
Inconsistent investment categorisation and disclosure
Funds applied different approaches to the accounting standard AASB 13 fair value hierarchy for unlisted assets, often with minimal explanation. This means it’s harder for members and analysts to compare valuations or judge reliability.
Limited visibility on sponsorship and advertising
Some trustees did not separately disclose the above expenses, relying on a narrow, purely quantitative view of materiality, despite strong member interest.
Insufficient audit evidence and scepticism
Auditors in several cases accepted fund-manager valuations (for example, redemption prices) without sufficient independent testing, and in some audits set materiality so high that meaningful variances were not investigated. ASIC has issued comment forms to four auditors and expects remediation.
Is your fund ready to meet the higher standard?
With regulatory scrutiny increasing, strong governance, clear disclosures and robust audit evidence are now baseline expectations and you should be anticipating it for your super fund.
If you’re unsure whether your super fund meets these standards, Piteo Accounting & Advisory can help assess your fund’s compliance. Or help you roll over to a fund that is more transparent and aligned with ASIC’s expectations.
Disclaimer: It is important to seek the advice of a qualified professional before making any financial or accounting decisions. Each individual’s financial situation is unique, and not all information provided may be relevant to your specific circumstances.
