Corporations Act. Australia
the beginning of the period to which the audit relates; or
(c) the period during which the audit is being conducted or the audit report is being prepared
This item does not apply if the audited body is a small proprietary company for the relevant financial year.
9
was an audit‑critical employee of the audited body at any time during:
(a) the period to which the audit relates; or
(b) the 12 months immediately preceding the beginning of the period to which the audit relates; or
(c) the period during which the audit is being conducted or the audit report is being prepared
This item does not apply if the audited body is a small proprietary company for the relevant financial year.
10
has an asset that is an investment in the audited body
11
has an asset that is a beneficial interest in an investment in the audited body and has control over that asset
12
has an asset that is a beneficial interest in an investment in the audited body that is a material interest
13
has an asset that is a material investment in an entity that has a controlling interest in the audited body
14
has an asset that is a material beneficial interest in an investment in an entity that has a controlling interest in the audited body
15
owes an amount to:
(a) the audited body; or
(b) a related body corporate; or
(c) an entity that the audited body controls;
unless the debt is disregarded under subsection (5), (5A) or (5B)
16
is owed an amount by:
(a) the audited body; or
(b) a related body corporate; or
(c) an entity that the audited body controls;
under a loan that is not disregarded under subsection (6) or (6A)
17
is liable under a guarantee of a loan made to:
(a) the audited body; or
(b) a related body corporate; or
(c) an entity that the audited body controls
19
is entitled to the benefit of a guarantee given by:
(a) the audited body; or
(b) a related body corporate; or
(c) an entity that the audited body controls
in relation to a loan unless the guarantee is disregarded under subsection (8)
Applying table if audited body is registered scheme
(2) If the audited body is a registered scheme, apply the table in subsection (1) as if:
(a) references to the audited body in items 1 to 9, and items 15 to 19, in the table were references to the responsible entity for the registered scheme; and
(b) references to an interest in the audited body in items 10 to 12 in the table were references to an interest in either:
(i) the registered scheme; or
(ii) the responsible entity for the registered scheme; and
(c) references to an investment in an entity that has a controlling interest in the audited body in items 13 and 14 of the table were references to an investment in an entity that has a controlling interest in the responsible entity for the registered scheme.
Applying table if audited body is listed entity (other than registered scheme)
(3) If the audited body is a listed entity (other than a registered scheme), apply the table in subsection (1) as if references in the table to the audited body included references to an associated entity of the audited body.
Note: See section 50AAA for the definition of associated entity.
Firm assets
(4) For the purpose of applying items 10 to 14 in the table in subsection (1) to an audit firm, the firm is taken to have a particular asset if the asset is one of the firm’s partnership assets.
Housing loan exception
(5) For the purposes of item 15 of the table in subsection (1), disregard a debt owed by an individual to a body corporate or entity if:
(a) the body corporate or entity is:
(i) an Australian ADI; or
(ii) a body corporate registered under section 21 of the Life Insurance Act 1995; and
(b) the debt arose because of a loan that the body corporate or entity made to the person in the ordinary course of its ordinary business; and
(c) the person used the amount of the loan to pay the whole or part of the purchase price of premises that the person uses as their principal place of residence.
Goods and services exception
(5A) For the purposes of item 15 of the table in subsection (1), disregard a debt owed by a person or firm to a body corporate or entity if:
(a) the debt arises from the acquisition of goods or services from:
(i) the audited body; or
(ii) an entity that the audited body controls; or
(iii) a related body corporate; and
(b) the acquisition of goods and services was on the terms and conditions that would normally apply to goods or services acquired from the body, entity or related body corporate; and
(c) the debt is owed on the terms and conditions that would normally apply to a debt owing to the body, entity or related body corporate; and
(d) the goods or services will be used by the person or firm:
(i) for the personal use of the person or firm; or
(ii) in the ordinary course of business of the person or firm.
Ordinary commercial loan exception
(5B) For the purposes of item 15 of the table in subsection (1), disregard a debt owed under a loan that:
(a) is made or given in the ordinary course of business of:
(i) the audited body; or
(ii) the related body corporate; or
(iii) the controlled entity; and
(b) is made or given on the terms and conditions that would normally apply to a loan made or given by the audited body, the related body corporate or the controlled entity.
Loans by immediate family members in ordinary business dealing with client
(6) For the purposes of item 16 of the table in subsection (1), disregard a debt owed to a person by a body corporate or entity if:
(a) the item applies to the person because the person is an immediate family member of:
(i) a professional member of the audit team conducting the audit of