Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT  

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS  

Division 5 - Auditor rotation for listed companies  

SECTION 324DA   LIMITED TERM FOR ELIGIBILITY TO PLAY SIGNIFICANT ROLE IN AUDIT OF A LISTED COMPANY OR LISTED REGISTERED SCHEME  

324DA(1)  
If an individual plays a significant role in the audit of a listed company or listed registered scheme for 5 successive financial years (the extended audit involvement period ), the individual is not eligible to play a significant role in the audit of the company or the scheme for a later financial year (the subsequent financial year ) unless:


(a) the individual has not played a significant role in the audit of the company or the scheme for at least 2 successive financial years (the intervening financial years ); and


(b) the intervening financial years:


(i) commence after the end of the extended audit involvement period; and

(ii) end before the beginning of the subsequent financial year.

Note: Play a significant role in an audit is defined in section 9 .

324DA(2)  
An individual is not eligible to play a significant role in the audit of a listed company or listed registered scheme for a financial year if, were the individual to do so, the individual would play a significant role in the audit of the company or scheme for more than 5 out of 7 successive financial years.

324DA(3)  
For the purposes of subsection (2), disregard an individual ' s playing of a significant role in the audit of a company or scheme for a financial year if:


(a) either:


(i) the directors of the company or scheme grant an approval under section 324DAA in relation to the individual; or

(ii) ASIC makes a declaration under paragraph 342A(1)(a) in relation to the individual; and


(b) because of the approval or the declaration, subsection (1) of this section does not operate to make the individual not eligible to play a significant role in the audit of the company or scheme for that financial year.


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