Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 7 - RECORD KEEPING, REPORTING REQUIREMENTS AND BOOKS  

PART 7-3 - REPORTING REQUIREMENTS  

Division 339 - Audit of financial reports  

Subdivision 339-E - Auditor ' s powers and duties  

SECTION 339-90   REPORTING TO THE REGISTRAR  
Contravention by individual auditor

339-90(1)    
If the auditor is an individual, the auditor commits an offence if:

(a)    the auditor is aware of circumstances that:

(i) the auditor has reasonable grounds to suspect amount to a contravention of this Act ; or

(ii) amount to an attempt, in relation to the audit, by any person to unduly influence, coerce, manipulate or mislead a person involved in the conduct of the audit (see subsection (6) ); or

(iii) amount to an attempt, by any person, to otherwise interfere with the proper conduct of the audit; and

(b)    if subparagraph (a)(i) applies:

(i) the contravention is a significant one; or

(ii) the contravention is not a significant one and the auditor believes that the contravention has not been or will not be adequately dealt with by commenting on it in the auditor ' s report or bringing it to the attention of the directors; and

(c)    the auditor does not notify the Registrar in writing of those circumstances as soon as practicable, and in any case within 28 days, after the auditor becomes aware of those circumstances.

Penalty: 50 penalty units or imprisonment for 12 months, or both.

Contravention by audit company

339-90(2)    
If the auditor is an audit company, the auditor commits an offence if:

(a)    the lead auditor for the audit is aware of circumstances that:

(i) the lead auditor has reasonable grounds to suspect amount to a contravention of this Act ; or

(ii) amount to an attempt, in relation to the audit, by any person to unduly influence, coerce, manipulate or mislead a person involved in the conduct of the audit (see subsection (6) ); or

(iii) amount to an attempt, by any person, to otherwise interfere with the proper conduct of the audit; and

(b)    if subparagraph (a)(i) applies:

(i) the contravention is a significant one; or

(ii) the contravention is not a significant one and the lead auditor believes that the contravention has not been or will not be adequately dealt with by commenting on it in the auditor ' s report or bringing it to the attention of the directors; and

(c)    the lead auditor does not notify the Registrar in writing of those circumstances as soon as practicable, and in any case within 28 days, after the lead auditor becomes aware of those circumstances.

Penalty: 50 penalty units or imprisonment for 12 months, or both.

Contravention by lead auditor

339-90(3)    
A person commits an offence if:

(a)    the person is the lead auditor for the audit; and

(b)    the person is aware of circumstances that:

(i) the person has reasonable grounds to suspect amount to a contravention of this Act ; or

(ii) amount to an attempt, in relation to the audit, by any person to unduly influence, coerce, manipulate or mislead a person involved in the conduct of the audit (see subsection (6) ); or

(iii) amount to an attempt, by any person, to otherwise interfere with the proper conduct of the audit; and

(c)    if subparagraph (b)(i) applies:

(i) the contravention is a significant one; or

(ii) the contravention is not a significant one and the person believes that the contravention has not been or will not be adequately dealt with by commenting on it in the auditor ' s report or bringing it to the attention of the directors; and

(d)    the person does not notify the Registrar in writing of those circumstances as soon as practicable, and in any case within 28 days, after the person becomes aware of those circumstances.

Penalty: 50 penalty units or imprisonment for 12 months, or both.

Significant contraventions

339-90(4)    
In determining for the purposes of this section whether a contravention of this Act is a significant one, have regard to:

(a)    the level of penalty provided for in relation to the contravention; and

(b)    the effect that the contravention has, or may have, on:

(i) the overall financial position of the corporation; or

(ii) the adequacy of the information available about the overall financial position of the corporation; and

(c)    any other relevant matter.

339-90(5)    
Without limiting paragraph (4)(a) , a penalty provided for in relation to a contravention of a provision of Part 7-2 or 7-3 , includes a penalty imposed on a director, because of the operation of section 363-1 , for failing to take reasonable steps to comply with, or to secure compliance with, that provision.

Person involved in an audit

339-90(6)    
A person involved in the conduct of an audit is:

(a)    the auditor; or

(b)    the lead auditor for the audit; or

(c)    the review auditor for the audit; or

(d)    a professional member of the audit team for the audit; or

(e)    any other person involved in the conduct of the audit.