Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT  

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS  

Division 3 - Auditor independence  

Subdivision A - General requirement  

SECTION 324CD   CONFLICT OF INTEREST SITUATION  

324CD(1)    
For the purposes of sections 324CA , 324CB and 324CC , a conflict of interest situation exists in relation to an audited body at a particular time if, because of circumstances that exist at that time:

(a)    the auditor, or a professional member of the audit team, is not capable of exercising objective and impartial judgment in relation to the conduct of the audit of the audited body; or

(b)    a reasonable person, with full knowledge of all relevant facts and circumstances, would conclude that the auditor, or a professional member of the audit team, is not capable of exercising objective and impartial judgment in relation to the conduct of the audit of the audited body.

324CD(2)    

Without limiting subsection (1) , have regard to circumstances arising from any relationship that exists, has existed, or is likely to exist, between:

(a)    the individual auditor; or

(b)    the audit firm or any current or former member of the firm; or

(c)    the audit company, any current or former director of the audit company or any person currently or formerly involved in the management of the audit company;

and any of the persons and bodies set out in the following table:

Table for relevant relationships

Table for relevant relationships

Relevant relationships
Item	If the audited body is...	have regard to any relationship with...
1	a company	the company; or a current or former director of the company; or a person currently or formerly involved in the management of the company.
2	a disclosing entity	the entity; or a current or former director of the entity; or a person currently or formerly involved in the management of the entity.
3	a registered scheme	the responsible entity for the registered scheme; or a current or former director of the responsible entity; or a person currently or formerly involved in the management of the scheme; or a person currently or formerly involved in the management of the responsible entity.
4	a registrable superannuation entity	the RSE licensee for the registrable superannuation entity, if the RSE licensee is a body corporate or a constitutional corporation (within the meaning of the Superannuation Industry (Supervision) Act 1993 ); or a current or former director of the registrable superannuation entity; or a person currently or formerly involved in the management of the registrable superannuation entity; or a person currently or formerly involved in the management of the RSE licensee for the registrable superannuation entity; or a connected entity (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) of the RSE licensee for the registrable superannuation entity.

Note: This subsection applies in relation to retail CCIVs in a modified form: see section 1232N .