CHAPTER 9
-
MISCELLANEOUS
PART 9.2A
-
AUTHORISED AUDIT COMPANIES
History
Pt 9.2A inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
Division 1
-
Registration
History
Div 1 inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299A
APPLICATION FOR REGISTRATION AS AUTHORISED AUDIT COMPANY
1299A(1)
[
Who may apply]
A company may apply to ASIC for registration as an authorised audit company.
1299A(2)
[
Content of application]
An application under this section:
(a)
must contain such information as is prescribed in the regulations; and
(b)
must be in the prescribed form.
History
S 1299A inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299B
1299B
ELIGIBILITY FOR REGISTRATION AS AN AUTHORISED AUDIT COMPANY
A company is eligible to be registered as an authorised audit company if and only if:
(a)
each of the directors of the company:
(i)
is a registered company auditor; and
(ii)
is not disqualified from managing a corporation under Part
2D.6
; and
(b)
each share in the company is held and beneficially owned by a person who is:
(i)
an individual; or
(ii)
the legal personal representatives of an individual; and
(c)
a majority of the votes that may be cast at a general meeting of the company attach to shares in the company that are held and beneficially owned by individuals who are registered company auditors; and
(d)
ASIC is satisfied that the company has adequate and appropriate professional indemnity insurance for claims that may be made against the company in relation to the audit of companies and registered schemes for the purposes of this Act; and
(e)
the company is not a Chapter 5 body corporate.
History
S 1299B amended by No 11 of 2016, s 3, Sch 2[244] (effective 1 March 2017).
S 1299B inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112].
SECTION 1299C
REGISTRATION AS AUTHORISED AUDIT COMPANY
1299C(1)
[
Obligation to grant application]
ASIC must grant the application and register the company as an authorised audit company if the company is eligible to be registered as an authorised audit company. Otherwise ASIC must refuse the application.
1299C(2)
[
Certificate of registration]
If ASIC grants the company's application, ASIC must issue to the company a certificate by ASIC stating that the company has been registered as an authorised audit company and specifying the day on which the application was granted.
1299C(3)
[
Period of regulation]
The company's registration under this section takes effect at the beginning of the day specified in the certificate as the day on which the application for registration was granted and remains in force until:
(a)
the registration is cancelled by ASIC; or
(b)
the company is wound up.
1299C(4)
[
Right to a hearing]
ASIC must not refuse to register the company as an authorised audit company unless ASIC has given the company an opportunity to be represented at a hearing before ASIC and to make submissions and give evidence to ASIC in relation to the matter.
1299C(5)
[
Notice of refusal to register]
If ASIC refuses the company's application, ASIC must, not later than 14 days after the decision, give to the company a notice in writing setting out the decision and the reasons for it.
History
S 1299C inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299D
REGISTRATION MAY BE SUBJECT TO CONDITIONS
1299D(1)
[
Conditions]
The company's registration as an authorised audit company is subject to:
(a)
the provisions of this Part; and
(b)
the conditions or restrictions specified in the regulations; and
(c)
any other conditions or restrictions determined by ASIC.
1299D(2)
[
When conditions can be imposed]
ASIC may determine conditions or restrictions for the purposes of paragraph (1)(c) either at the time when the company is registered as an authorised audit company or subsequently.
1299D(3)
[
Written notice]
ASIC determines a condition or restriction by written notice to the company.
History
S 1299D inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299E
REGISTER OF AUTHORISED AUDIT COMPANIES
1299E(1)
ASIC must keep a Register of Authorised Audit Companies for the purposes of this Act.
1299E(2)
In relation to each authorised audit company, ASIC must enter in the Register:
(a)
the name of the company; and
(b)
the company
'
s ACN or ABN; and
(c)
the day on which the company
'
s registration under section
1299C
took effect; and
(d)
the address of the company
'
s registered office; and
(e)
the address of the principal place where the company practises as an auditor and the address of the other places (if any) at which the company so practises; and
(f)
the name and address of:
(i)
each director of the company; and
(ii)
each person who performs a chief executive officer function (within the meaning of section
295A
) in relation to the company; and
(g)
the details of any conditions or restrictions determined under paragraph
1299D(1)(c)
in relation to the registration; and
(h)
details of any suspension of the registration.
1299E(3)
ASIC may enter in the Register in relation to the company any other details that ASIC considers appropriate.
1299E(4)
If a company ceases to be registered as an authorised audit company, ASIC must remove the entry in relation to the company from the Register.
1299E(5)
A person may inspect and make copies of, or take extracts from, the Register.
[
CCH Note:
S 1299E will be substituted by No 69 of 2020, s 3, Sch 1[1250] (effective 1 July 2026 or a day or days to be fixed by Proclamation). S 1299E will read:
SECTION 1299E REGISTRAR MUST MAINTAIN RECORDS OF AUTHORISED AUDIT COMPANIES
1299E(1)
The Registrar must maintain records of particulars of companies registered as authorised audit companies, including companies whose registration as authorised audit companies has been suspended.
1299E(2)
Maintaining the records may involve removing a record relating to a particular company.]
History
S 1299E inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112].
SECTION 1299F
NOTIFICATION OF CERTAIN MATTERS
1299F(1)
An authorised audit company must notify ASIC if a condition or restriction to which the company
'
s registration is subject is contravened.
1299F(2)
The notice under subsection
(1)
must:
(a)
set out details of the contravention; and
(b)
be given within 14 days after the company becomes aware of the contravention; and
(c)
be lodged with ASIC in the prescribed form.
1299F(3)
An authorised audit company must notify ASIC if:
(a)
details of a matter are required by subsection
1299E(2)
to be entered in the Register of Authorised Audit Companies in relation to the company; and
(b)
a change occurs in that matter while the company is registered as an authorised audit company.
[
CCH Note:
S 1299F(3) will be substituted by No 69 of 2020, s 3, Sch 1[1251] (effective 1 July 2026 or a day or days to be fixed by Proclamation). S 1299F(3) will read:
1299F(3)
An authorised audit company must notify the Registrar if a change occurs in any matter relating to the company:
(a)
particulars of which have been recorded by the Registrar; and
(b)
which is specified in the data standards as a matter to which this subsection applies.]
1299F(4)
The notice under subsection (3) must:
(a)
set out details of the change; and
(b)
be given within 28 days after the change occurs; and
(c)
be lodged with ASIC in the prescribed form.
[
CCH Note:
S 1299F(4) will be amended by No 69 of 2020, s 3, Sch 1[1252] and
[
1253], by substituting
"
the Registrar
"
for
"
ASIC in the prescribed form
"
in para (c) and inserting para (d) (effective 1 July 2026 or a day or days to be fixed by Proclamation). Para (d) will read:
; and (d)
meet any requirements of the data standards.]
1299F(5)
A company that applies for registration as an authorised audit company must notify ASIC if:
(a)
details of a matter would be required by subsection
1299E(2)
to be entered in the Register of Authorised Audit Companies in relation to the company if it were to be registered; and
(b)
a change occurs in that matter before the application is granted or rejected.
[
CCH Note:
S 1299F(5) will be amended by No 69 of 2020, s 3, Sch 1[1254], by substituting para (a) (effective 1 July 2026 or a day or days to be fixed by Proclamation). Para (a) will read:
(a)
details of a matter would be recorded by the Registrar in relation to the company if it were to be registered; and.]
1299F(6)
The notice under subsection (5) must:
(a)
set out details of the change; and
(b)
be given within 28 days after the change occurs; and
(c)
be lodged with ASIC in the prescribed form.
History
S 1299F inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112].
SECTION 1299G
ANNUAL STATEMENTS BY AUTHORISED AUDIT COMPANY
1299G(1)
[
Requirement to lodge statements]
A company that is an authorised audit company must, within one month after the end of:
(a)
the period of 12 months beginning on the day on which the company became registered as an authorised audit company; and
(b)
each subsequent period of 12 months;
lodge with ASIC a statement in respect of that period.
1299G(1A)
[
Content of statement]
A statement under subsection (1):
(a)
must contain such information as is prescribed in the regulations; and
(b)
must be in the prescribed form.
1299G(2)
[
Extension of lodgment period]
ASIC may, on the application of an authorised audit company made before the end of the period for lodging a statement under subsection (1), extend, or further extend, that period.
1299G(3)
[
Strict liability offence]
An offence based on subsection (1) is an offence of strict liability.
Note: For
strict liability
, see section 6.1 of the
Criminal Code
.
1299G(4)
[
Obligation of director]
A director of a company must take all reasonable steps to comply with, or to secure compliance with, subsection (1).
History
S 1299G inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
Division 2
-
Cancellation or suspension of registration
History
Div 2 inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299H
CANCELLATION AT REQUEST OF REGISTERED PERSON
1299H(1)
[
Power to cancel]
ASIC may cancel a company's registration as an authorised audit company if the company requests ASIC to cancel the registration.
1299H(2)
[
Obligation to cancel]
ASIC must take the steps necessary to cancel the registration as soon as practicable after the request is made.
History
S 1299H inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299I
1299I
CANCELLATION OR SUSPENSION IN OTHER CASES
ASIC may cancel or suspend a company's registration as an authorised audit company if:
(a)
the company ceases to be eligible to be registered as an authorised audit company; or
(b)
the company fails to meet conditions or observe restrictions imposed on the company's registration as an authorised audit company; or
(c)
in the case of a company that is a leviable entity (within the meaning of the
ASIC Supervisory Cost Recovery Levy Act 2017
)
-
the following have not been paid in full at least 12 months after the due date for payment:
(i)
an amount of levy (if any) payable in respect of the company;
(ii)
an amount of late payment penalty payable (if any) in relation to the levy;
(iii)
an amount of shortfall penalty payable (if any) in relation to the levy.
Note: See section
1299K
for when the cancellation takes effect.
History
S 1299I amended by No 45 of 2017, s 3, Sch 1
[
17] (effective 1 July 2017).
S 1299I inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299J
NOTICE OF CANCELLATION OR SUSPENSION
1299J(1)
[
Obligation to notify]
If ASIC decides to cancel or suspend a company's registration as an authorised audit company under section
1299I
, ASIC must, within 14 days after the decision:
(a)
give to the company written notice setting out the decision and the reasons for it; and
(b)
publish written notice of the decision in the
Gazette
.
1299J(2)
[
Validity]
The validity of a decision by ASIC is not affected by a failure by ASIC to comply with subsection (1) in relation to the decision.
History
S 1299J inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299K
TIME WHEN ASIC'S DECISION COMES INTO EFFECT
1299K(1)
[
Time of effect of cancellation or suspension]
A decision by ASIC to cancel or suspend a company's registration as an authorised audit company comes into effect at the end of the day on which the company is given notice of the decision under paragraph
1299J(1)
(a). This subsection has effect subject to subsection (2) and to sections 41 and 44A of the
Administrative Appeals Tribunal Act 1975
.
1299K(2)
[
Determination of time for Tribunal review]
ASIC may, in order to enable an application to be made to the Tribunal for review of the decision to cancel or suspend the registration, determine that the decision to cancel or suspend the company's registration as an authorised audit company is not to come into effect until:
(a)
a specified time; or
(b)
the happening of a specified event.
1299K(3)
[
Power to vary or revoke determination]
ASIC may at any time vary or revoke a determination made under subsection (2), including such a determination that has been varied at least once before.
1299K(4)
[
Effect of determination]
A determination in force under subsection (2) has effect accordingly.
History
S 1299K inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299L
1299L
EFFECT OF SUSPENSION
A company whose registration as an authorised audit company is suspended is, except for the purposes of subsection
1299E(4)
, sections
1299F
and
1299G
and this Division, taken not to be registered as an authorised audit company so long as the registration is suspended.
History
S 1299L inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).
SECTION 1299M
1299M
EFFECT OF CANCELLATION
If a company's registration as an authorised audit company is cancelled (whether under section
1299H
or
1299I
), each appointment of the company as auditor for a company or registered scheme for the purposes of this Act that is in force on the day on which the cancellation decision takes effect is terminated at the end of that day.
Note: This means that the authorised audit company ceases to be auditor without resigning and that the position of auditor for the company or scheme will immediately become vacant unless there is another auditor who has been appointed, and who can continue to act, as auditor for the company or registered scheme.
History
S 1299M inserted by No 103 of 2004, s 3, Sch 1, Pt 4
[
112] (effective 1 July 2004).