Corporations Regulations 2001

SCHEDULE 5C - CONDUCT OF AUDITOR - RELEVANT RELATIONSHIPS  

(regulation 2M.6.05)

2   Money owed - deposit account  

2(1)    
Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.

2(2)    

The operation of Chapter 2M of the Act is modified by omitting subsection 324CH(6) of the Act (including the subheading) and substituting the following subheading and subsection:

Loans by immediate family members and amounts on call

(6)
For the purposes of item 16 of the table in subsection (1):

(a) disregard a debt owed to a person by a body corporate or entity if:

(i) the item applies to the person because the person is an immediate family member of:

(A) a professional member of the audit team conducting the audit of the audited body; or

(B) a non-audit services provider; and

(ii) the debt is incurred in the ordinary course of business of the body corporate or entity; and

(b) disregard an amount owed to the person or firm by the audited body, a related body corporate or an entity that the audited body controls if:

(i) the body, body corporate or entity is an Australian ADI; and

(ii) the amount is in a basic deposit product provided by the body, body corporate or entity; and

(iii) the amount was deposited in the ordinary course of the business of the audited body, body corporate or entity, and on the terms and conditions that normally apply to basic deposit products provided by the body, body corporate or entity.