Corporations Act. Australia
of the audit company; or
(b) an employee or agent of the audit company;
acting within the actual or apparent scope of his or her employment, or within his or her actual or apparent authority, is also to be attributed to the audit company.
324AE Professional members of the audit team
If an individual auditor, audit firm or audit company conducts an audit of a company or registered scheme, the professional members of the audit team are:
(a) any registered company auditor who participates in the conduct of the audit; and
(b) any other person who participates in the conduct of the audit and, in the course of doing so, exercises professional judgment in relation to the application of or compliance with:
(i) accounting standards; or
(ii) auditing standards; or
(iii) the provisions of this Act dealing with financial reporting and the conduct of audits; and
(c) any other person who is in a position to directly influence the outcome of the audit because of the role they play in the design, planning, management, supervision or oversight of the audit; and
(d) any person who recommends or decides what the lead auditor is to be paid in connection with the performance of the audit; and
(e) any person who provides, or takes part in providing, quality control for the audit.
324AF Lead and review auditors
Lead auditor
(1) If an audit firm or audit company conducts an audit of a company or registered scheme, the lead auditor for the audit is the registered company auditor who is primarily responsible to the audit firm or the audit company for the conduct of the audit.
Review auditor
(2) If an individual auditor, audit firm or audit company conducts an audit of a company or registered scheme, the review auditor for the audit is the registered company auditor (if any) who is primarily responsible to the individual auditor, the audit firm or the audit company for reviewing the conduct of the audit.
Division 2 — Registration requirements
324BA Registration requirements for appointment of individual as auditor
Subject to section 324BD, an individual contravenes this section if:
(a) the individual:
(i) consents to be appointed as auditor of a company or registered scheme; or
(ii) acts as auditor of a company or registered scheme; or
(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company or registered scheme; and
(b) the person is not a registered company auditor.
324BB Registration requirements for appointment of firm as auditor
Contraventions by members of firm
(1) A person (the defendant) contravenes this subsection if:
(a) at a particular time, a firm:
(i) consents to be appointed as auditor of a company or registered scheme; or
(ii) acts as auditor of a company or registered scheme; or
(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company or registered scheme; and
(b) at that time, the firm:
(i) does not satisfy subsection (5); or
(ii) does not satisfy subsection (6); and
(c) the defendant is a member of the firm at that time; and
(d) the defendant is aware of the circumstances referred to in paragraphs (a) and (b) at that time.
(2) A person (the defendant) contravenes this subsection if:
(a) at a particular time, a firm:
(i) consents to be appointed as auditor of a company or registered scheme; or
(ii) acts as auditor of a company or registered scheme; or
(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company or registered scheme; and
(b) at that time, the firm:
(i) does not satisfy subsection (5); or
(ii) does not satisfy subsection (6); and
(c) the defendant is a member of the firm at that time.
(3) For the purposes of an offence based on subsection (2), strict liability applies to the physical elements of the offence specified in paragraphs (2)(a) and (b).
Note 1: For strict liability, see section 6.1 of the Criminal Code.
Note 2: Subsection (4) provides a defence.
(4) A member of an audit firm does not commit an offence at a particular time because of a contravention of subsection (2) if the member either:
(a) does not know at that time of the circumstances that constitute the contravention of subsection (2); or
(b) does know of those circumstances at that time 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 this subsection, see subsection 13.3(3) of the Criminal Code.
Registered company auditor requirement
(5) The firm satisfies this subsection if at least 1 member of the firm is a registered company auditor who is ordinarily resident in Australia.
Business name or members names requirement
(6) The firm satisfies this subsection if:
(a) the business name under which the firm is carrying on business is registered on the Business Names Register; or
(b) a return in the prescribed form has been lodged showing, in relation to each member of the firm, the member’s full name and address as at the time when the firm so consents, acts or prepares a report.
324BC Registration requirements for appointment of company as auditor
Contravention by company
(1) A company contravenes this subsection if:
(a) the company:
(i) consents to be appointed as auditor of a company or registered scheme; or
(ii) acts as auditor of a company or registered scheme; or
(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company or registered scheme; and
(b) the company is not an authorised audit company.
Contraventions by directors of company
(2) A person (the defendant) contravenes this subsection if:
(a) at a particular time, a company:
(i) consents to be appointed as auditor of a company or registered scheme; or
(ii) acts as auditor of a company or registered scheme; or
(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company or registered scheme; and