Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT  

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS  

Division 2 - Registration requirements  

SECTION 324BB   REGISTRATION REQUIREMENTS FOR APPOINTMENT OF FIRM AS AUDITOR  

Contraventions by members of firm

324BB(1)    
A person (the defendant ) contravenes this subsection if:

(a)    

at a particular time, a firm:

(i) consents to be appointed as auditor of a company, registered scheme or registrable superannuation entity; or

(ii) acts as auditor of a company, registered scheme or registrable superannuation entity; or

(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company, registered scheme or registrable superannuation entity; and

(b)    at that time, the firm:

(i) does not satisfy subsection (5) ; or

(ii) does not satisfy subsection (6) ; and

(c)    the defendant is a member of the firm at that time; and

(d)    the defendant is aware of the circumstances referred to in paragraphs (a) and (b) at that time.

324BB(2)    
A person (the defendant ) contravenes this subsection if:

(a)    

at a particular time, a firm:

(i) consents to be appointed as auditor of a company, registered scheme or registrable superannuation entity; or

(ii) acts as auditor of a company, registered scheme or registrable superannuation entity; or

(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company, registered scheme or registrable superannuation entity; and

(b)    at that time, the firm:

(i) does not satisfy subsection (5) ; or

(ii) does not satisfy subsection (6) ; and

(c)    the defendant is a member of the firm at that time.

324BB(3)    
For the purposes of an offence based on subsection (2) , strict liability applies to the physical elements of the offence specified in paragraphs (2)(a) and (b) .

Note 1: For strict liability , see section 6.1 of the Criminal Code .

Note 2: Subsection (4) provides a defence.

324BB(4)    
A member of an audit firm does not commit an offence at a particular time because of a contravention of subsection (2) if the member either:

(a)    does not know at that time of the circumstances that constitute the contravention of subsection (2) ; or

(b)    does know of those circumstances at that time but takes all reasonable steps to correct the contravention as soon as possible after the member becomes aware of those circumstances.

Note: A defendant bears an evidential burden in relation to the matters in this subsection, see subsection 13.3(3) of the Criminal Code .

Registered company auditor requirement

324BB(5)    

The firm satisfies this subsection if at least 1 member of the firm is a registered company auditor who is ordinarily resident in Australia or New Zealand.

Business name or members names requirement

324BB(6)    
The firm satisfies this subsection if:

(a)    

the business name under which the firm is carrying on business is registered on the Business Names Register; or

(b)    a return in the prescribed form has been lodged showing, in relation to each member of the firm, the member ' s full name and address as at the time when the firm so consents, acts or prepares a report.