You are required to read the given statement issued by ICAA (Institute of Chartered Accountants in Australia and provide an essay of around 1,000 words. It must be properly referenced and should be primarily of your own work.
Press release: Legislation to enhance the quality and transparency of the auditing process has been introduced into the House of Representatives this week by Parliamentary Secretary to the Treasurer David Bradbury. The Corporations Legislation Amendment (Audit Enhancement) Bill 2012 is the outcome of a Treasury review of audit quality and extensive stakeholder consultation during 2011 on measures that are designed to enhance audit quality and ensure that Australia's regulatory framework remains in line with international best practice.
Measures in the Bill comprise:
A) Requiring audit firms to publish an annual transparency report if they conduct audits of 10 or more important entities
B) Empowering ASIC to issue an audit deficiency report in relation to an individual audit firm if it recognizes an audit deficiency in the auditor's quality control system or the conduct of an audit that might be detrimental to the overall quality of the audit
C) Eliminating duplication of ASIC and Financial Reporting Council (FRC) audits inspection responsibilities and hence ASIC continues its audit inspection program and the FRC focuses on providing strategic policy advice and reports on the quality of the Australian audits.
D) Permitting ASIC to communicate directly with an audited body.
E) Permitting a two-year extension to the five-year auditor rotation requirement where it will not give rise to a conflict of interest and will prevent the loss of knowledge and experience where rotation could undermine the quality of the audit.
Discuss the given in your essay (around 1,000 words):
What each of the above really refers to and what it means.
What is your view, giving a rational explanation to your view (you might use other sources to support your view, properly referencing). Why do you think that such measures were introduced?