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)   [ Test of auditor independence]  

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)   [ Relationships impacting on auditor independence]  

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.


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