Corporations Act. Australia
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.
(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.
332G Offences by members of audit firm
(1) This Part applies to an audit firm as if it were a person, but with the changes set out in this section.
(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.
(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.
(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.
Part 2M.5 — Accounting and auditing standards
334 Accounting standards
AASB’s power to make accounting standards
(1) The AASB may, by legislative instrument, make accounting standards for the purposes of this Act. The standards must not be inconsistent with this Act or the regulations.
(4) An accounting standard applies to:
(a) periods ending after the commencement of the standard; or
(b) periods ending, or starting, on or after a later date specified in the standard.
(5) A company, registered scheme or disclosing entity may elect to apply the accounting standard to an earlier period unless the standard says otherwise. The election must be made in writing by the directors.
335 Equity accounting
This Chapter (and, in particular, the provisions on consolidation of financial statements) does not prevent accounting standards from incorporating equity accounting principles.
336 Auditing standards
AUASB’s power to make auditing standards
(1) The AUASB may, by legislative instrument, make auditing standards for the purposes of this Act. The standards must not be inconsistent with this Act or the regulations.
(3) An auditing standard applies to financial reports in relation to:
(a) periods ending after the commencement of the standard; or
(b) periods ending, or starting, on or after a later date specified in the standard.
(4) If:
(a) the AUASB makes an auditing standard; and
(b) the standard applies to financial reports in relation to particular periods under subsection (3); and
(c) an auditor is conducting an audit of a financial report in relation to a period that occurs before the start of the earliest of those periods;
the auditor may elect to apply the auditing standard to that audit unless the standard says otherwise. The election must be recorded in the audit report.
337 Interpretation of accounting and auditing standards
In interpreting an accounting or auditing standard, unless the contrary intention appears:
(a) expressions used in the standard have the same meanings as they have in this Chapter; and
(b) the provisions of Part 1.2 apply as if the standard’s provisions were provisions of this Chapter.
338 Evidence of text of accounting standard or auditing standard
(1) This section applies to a document that purports to be published by, or on behalf of, the AASB or the AUASB and to set out the text of:
(a) a specified standard as in force at a specified time under section 334 or 336; or
(b) a specified provision of a standard of that kind.
It also applies to a copy of a document of that kind.
(2) In the absence of evidence to the contrary, a document to which this section applies is proof in proceedings under this Act that:
(a) the specified standard was in force at that time under that section; and
(b) the text set out in the document is the text of the standard referred to in paragraph (1)(a) or the provision referred to in paragraph (1)(b).
Part 2M.6 — Exemptions and modifications
340 Exemption orders — companies, registered schemes and disclosing entities
(1) On an application made in accordance with subsection (3) in relation to a company, registered scheme or disclosing entity, ASIC may make an order in writing relieving any of the following from all or specified requirements of Parts 2M.2, 2M.3 and 2M.4 (other than Division 4):
(a) the directors;
(b) the company, scheme or entity;
(c) the auditor.
Note: For the criteria for making orders under this section, see section 342.
(2) The order may:
(a) be expressed to be subject to conditions; and
(b) be indefinite or limited to a specified period.
(3) The application must be:
(a) authorised by a resolution of the directors; and
(b) in writing and signed by a director; and
(c) lodged with ASIC.
(4) ASIC must give the applicant written notice of the making, revocation or suspension of the order.
341 Exemption orders — class orders for companies, registered schemes and disclosing entities
(1) ASIC may make an order in writing in respect of a specified class of companies, registered schemes or disclosing entities, relieving any of the following from all or specified requirements of Parts 2M.2, 2M.3 and 2M.4 (other than Division 4):
(a) directors;
(b) the companies, registered schemes or disclosing entities themselves;
(c) auditors of the companies, registered schemes or disclosing entities.
Note: