ANU researchers are informing federal policy recommendations that could reshape the future of audit practices in Australia.

The recently released Federal Treasury report Audit Quality in Australia: A Strategic Review draws on research findings from an ANU-led project about the future of auditing.

The research project - The Future of Audit: Keeping Capital Markets Efficient - was conducted by scholars at the Centre for Australian Audit and Assurance Research (ANCAAR) based at ANU and completed in 2009.

The policy document released by Treasury outlines some of the most contentious issues relevant to the market for audit services in Australia, says Professor Keith Houghton, Director of ANCAAR.

Dr Christine Jubb, Senior Research Fellow of ANCAAR agrees, adding: The Treasury report offers new opportunities for change in the audit field.

The Treasury review used the researchers' findings, placing special emphasis on the insights provided into the drivers of audit quality in Australia compared to the US and the UK.

Professor Houghton said it was great to see ANCAAR research having a real impact on policy recommendations for the nation.

ANCAAR is an arm of the Research School of Business at ANU. It was established to capitalise on the many researchers at ANU with expertise in audit and assurance research. The centre works closely with key players in industry and government to provide research-based advice on auditing problems.

The Future of Audit program was funded by the Australian Research Council as a Linkage Project. Industry partners included CPA Australia, the Institute of Chartered Accountants in Australia, Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers.