CHAPTER 2M
-
FINANCIAL REPORTS AND AUDIT
PART 2M.4A
-
ANNUAL TRANSPARENCY REPORTS FOR AUDITORS
History
Pt 2M.4A inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18] (effective 25 July 2012).
SECTION 332
MEANING OF
TRANSPARENCY REPORTING AUDITOR
AND
TRANSPARENCY REPORTING YEAR
332(1)
A
transparency reporting auditor
is:
(a)
an individual auditor; or
(b)
an audit firm; or
(c)
an authorised audit company.
332(2)
A
transparency reporting year
is a period of 12 months starting on 1 July.
History
S 332 inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18] (effective 25 July 2012).
SECTION 332A
TRANSPARENCY REPORTING AUDITORS MUST PUBLISH ANNUAL TRANSPARENCY REPORTS
332A(1)
This section applies if, during a transparency reporting year, a transparency reporting auditor conducts audits, under Division
3
of Part
2M.3
, of 10 or more bodies of any of the following kinds:
(a)
listed companies;
(b)
listed registered schemes;
(ba)
registrable superannuation entities;
(c)
ADIs (authorised deposit-taking institutions) within the meaning of the
Banking Act 1959
;
(d)
bodies mentioned in paragraph (c) or (e) of the definition of
body regulated by APRA
in subsection
3(2)
of the
Australian Prudential Regulation Authority Act 1998
;
(e)
bodies prescribed by the regulations for the purposes of this paragraph.
Note: The 10 or more bodies do not all have to be of the same kind. This section applies (for example) if, during the year, the transparency reporting auditor conducts audits of 6 listed companies and 4 listed registered schemes.
History
S 332A(1) amended by No 29 of 2023, s 3, Sch 6[161] (effective 1 July 2023).
332A(2)
The auditor must publish an annual transparency report for the transparency reporting year, containing the information required by section
332B
, on the auditor
'
s website within the period of 4 months after the end of the year (or that period as extended under section
332C
).
Note: Failure to comply with this subsection is an offence (see subsection
1311(1)
).
History
S 332A(2) amended by No 76 of 2023, s 3, Sch 2[104] (effective 20 October 2023).
332A(3)
The auditor must lodge a copy of the report with ASIC on or before the day it is first published on the auditor
'
s website.
Note: Failure to comply with this subsection is an offence (see subsection
1311(1)
).
[
CCH Note:
S 332A(3) will be amended by No 69 of 2020, s 3, Sch 1[631] and
[
632], by substituting
"
the Registrar
"
for
"
ASIC
"
and inserting
"
The lodgement must meet any requirements of the data standards.
"
at the end, (effective 1 July 2026 or a day or days to be fixed by Proclamation).]
332A(4)
An offence based on subsection
(2)
or
(3)
is an offence of strict liability.
Note: For strict liability, see section
6.1
of the
Criminal Code
.
History
S 332A inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18].
SECTION 332B
CONTENT OF ANNUAL TRANSPARENCY REPORT
332B(1)
Subject to subsection (2), an annual transparency report must contain the information prescribed by the regulations.
332B(2)
The report may omit information that would otherwise be included under subsection (1) if the inclusion of the information is likely to result in unreasonable prejudice to the transparency reporting auditor. If material is omitted, the report must say so.
History
S 332B inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18] (effective 25 July 2012).
SECTION 332C
EXTENSION OF PERIOD FOR PUBLICATION OF ANNUAL TRANSPARENCY REPORT
332C(1)
On an application made by a transparency reporting auditor in accordance with subsection (3), ASIC may make an order extending the period within which the auditor must publish an annual transparency report.
332C(2)
The order may be expressed to be subject to conditions.
332C(3)
The application must be:
(a)
in writing; and
(b)
lodged with ASIC before the end of the period within which the auditor would otherwise be required to publish the report; and
(c)
if the auditor is an individual auditor
-
signed by the auditor; and
(d)
if the auditor is an audit firm
-
signed by a member of the firm who is a registered company auditor both:
(i)
in the firm name; and
(ii)
in the member
'
s own name; and
(e)
if the auditor is an audit company:
(i)
authorised by a resolution of the directors; and
(ii)
signed by a director.
332C(4)
ASIC must give the auditor written notice of the making of the order.
History
S 332C inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18] (effective 25 July 2012).
SECTION 332D
EXEMPTION ORDERS
-
APPLICATIONS BY TRANSPARENCY REPORTING AUDITORS
332D(1)
On an application made by a transparency reporting auditor in accordance with subsection (3), ASIC may make an order in writing relieving the auditor from compliance with all or specified requirements of sections
332A
and
332B
.
Note: For the criteria for making orders under this section, see section
332F
.
332D(2)
The order may:
(a)
be expressed to be subject to conditions; and
(b)
be indefinite or limited to a specified period.
332D(3)
The application must be:
(a)
in writing; and
(b)
lodged with ASIC; and
(c)
if the auditor is an individual auditor
-
signed by the auditor; and
(d)
if the auditor is an audit firm
-
signed by a member of the firm who is a registered company auditor both:
(i)
in the firm name; and
(ii)
in the member
'
s own name; and
(e)
if the auditor is an audit company:
(i)
authorised by a resolution of the directors; and
(ii)
signed by a director.
332D(4)
ASIC must give the auditor written notice of the making or revocation of the order.
History
S 332D inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18] (effective 25 July 2012).
SECTION 332E
EXEMPTION ORDERS
-
CLASS ORDERS FOR TRANSPARENCY REPORTING AUDITORS
332E(1)
ASIC may, by legislative instrument, make an order in respect of a specified class of transparency reporting auditors relieving the auditors from all or specified requirements of sections
332A
and
332B
.
Note: For the criteria for making orders under this section, see section
332F
.
332E(2)
The order may:
(a)
be expressed to be subject to conditions; and
(b)
be indefinite or limited to a specified period.
History
S 332E inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18] (effective 25 July 2012).
SECTION 332F
EXEMPTION ORDERS
-
CRITERIA FOR ORDERS
332F(1)
To make an order under section
332D
or
332E
exempting a transparency reporting auditor, or class of transparency reporting auditors, from one or more requirements of sections
332A
and
332B
, ASIC must be satisfied that complying with the requirements would:
(a)
be inappropriate in the circumstances; or
(b)
impose unreasonable burdens.
332F(2)
In deciding for the purposes of subsection (1) whether complying with the requirements would impose an unreasonable burden on the auditor or class of auditors, ASIC is to have regard to:
(a)
the expected costs of complying with the requirements; and
(b)
the expected benefits of having the auditor or class of auditors comply with the requirements; and
(c)
any practical difficulties that the auditor or class of auditors faces in complying effectively with the requirements; and
(d)
any unusual aspects of the operations of the auditor or class of auditors; and
(e)
any other matters that ASIC considers relevant.
History
S 332F inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18] (effective 25 July 2012).
SECTION 332G
OFFENCES BY MEMBERS OF AUDIT FIRM
332G(1)
This Part applies to an audit firm as if it were a person, but with the changes set out in this section.
332G(2)
An obligation that would otherwise be imposed on the firm by a provision of this Part is imposed on each member of the firm instead, but may be discharged by any of the members.
332G(3)
An offence based on a provision of this Part that would otherwise be committed by the audit firm is taken to have been committed by each member of the firm.
332G(4)
A member of the firm does not commit an offence because of subsection (3) if the member:
(a)
does not know of the circumstances that constitute the contravention of the provision concerned; or
(b)
knows of those circumstances 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 subsection (4)
-
see subsection 13.3(3) of the
Criminal Code
.
History
S 332G inserted by No 72 of 2012, s 3, Sch 1, Pt 2
[
18] (effective 25 July 2012).