Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT  

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS  

Division 7 - Appointment, removal and fees of auditors for registered schemes  

Note: Section 1232R applies a modified version of this Division in relation to a retail CCIV.

Subdivision A - Appointment of registered scheme auditors  

SECTION 331AAA   REGISTERED SCHEME AUDITOR (INITIAL APPOINTMENT OF AUDITOR)  

331AAA(1)   [ Time limit to appoint]  

The responsible entity of a registered scheme must appoint an auditor of the registered scheme within 1 month after the day on which the scheme is registered.

331AAA(2)   [ Tenure]  

An auditor appointed under subsection (1) holds office until the auditor:

(a) dies; or

(b) is removed, or resigns, from office in accordance with section 331AC ; or

(c) ceases to be capable of acting as an auditor because of Division 2 of this Part; or

(d) ceases to be auditor under subsection (2A), (2B) or (2C).

331AAA(2A)   [ Cessation - individual auditor]  

An individual auditor ceases to be auditor of a registered scheme under this subsection if:

(a) on a particular day (the start day ), the individual auditor:

(i) informs ASIC of a conflict of interest situation in relation to the scheme under subsection 324CA(1A) ; or

(ii) informs ASIC of particular circumstances in relation to the scheme under subsection 324CE(1A) ; and

(b) the individual auditor does not give ASIC a notice, before the notification day (see subsection (2D)), that that conflict of interest situation has, or those circumstances have, ceased to exist before the end of the period (the remedial period ) of 21 days, or such longer period as ASIC approves in writing, from the start day.

331AAA(2B)   [ Cessation - audit firm]  

An audit firm ceases to be auditor of a registered scheme under this subsection if:

(a) on a particular day (the start day ), ASIC is:

(i) informed of a conflict of interest situation in relation to the scheme under subsection 324CB(1A) ; or

(ii) informed of particular circumstances in relation to the scheme under subsection 324CF(1A) ; and

(b) ASIC has not been given a notice on behalf of the audit firm, before the notification day (see subsection (2D)), that that conflict of interest situation has, or those circumstances have, ceased to exist before the end of the period (the remedial period ) of 21 days, or such longer period as ASIC approves in writing, from the start day.

331AAA(2C)   [ Cessation - audit company]  

An audit company ceases to be auditor of a registered scheme under this subsection if:

(a) on a particular day (the start day ), ASIC is:

(i) informed of a conflict of interest situation in relation to the scheme under subsection 324CB(1A) or 324CC(1A) ; or

(ii) informed of particular circumstances in relation to the scheme under subsection 324CF(1A) or 324CG(1A) or (5A) ; and

(b) ASIC has not been given a notice on behalf of the audit company, before the notification day (see subsection (2D)), that that conflict of interest situation has, or those circumstances have, ceased to exist before the end of the period (the remedial period ) of 21 days, or such longer period as ASIC approves in writing, from the start day.

331AAA(2D)   [ " notification day " ]  

The notification day is:

(a) the last day of the remedial period; or

(b) such later day as ASIC approves in writing (whether before or after the remedial period ends).

331AAA(3)   [ Compliance]  

A director of the responsible entity of a registered scheme must take all reasonable steps to secure compliance with subsection (1).

331AAA(4)   [ Cessation - members of audit firm]  

If an audit firm ceases to be the auditor of a registered scheme under subsection (2) at a particular time, each member of the firm who:

(a) is taken to have been appointed as an auditor of the scheme under subsection 324AB(1) or 324AC(4) ; and

(b) is an auditor of the scheme immediately before that time;

ceases to be an auditor of the scheme at that time.