Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS, SUSTAINABILITY REPORTS AND AUDIT  

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS  

Division 2 - Registration requirements  

SECTION 324BC   REGISTRATION REQUIREMENTS FOR APPOINTMENT OF COMPANY AS AUDITOR  

Contravention by company

324BC(1)    
A company contravenes this subsection if:

(a)    

the company:

(i) consents to be appointed as auditor of a company, registered scheme or registrable superannuation entity; or

(ii) acts as auditor of a company, registered scheme or registrable superannuation entity; or

(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company, registered scheme or registrable superannuation entity; and

(b)    the company is not an authorised audit company.

Contraventions by directors of company

324BC(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, registered scheme or registrable superannuation entity; or

(ii) acts as auditor of a company, registered scheme or registrable superannuation entity; or

(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company, registered scheme or registrable superannuation entity; and

(b)    at that time, the company is not an authorised audit company; and

(c)    the defendant is a director of the company at that time; and

(d)    the defendant is aware of the circumstances referred to in paragraphs (a) and (b) at that time.

324BC(3)    
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, registered scheme or registrable superannuation entity; or

(ii) acts as auditor of a company, registered scheme or registrable superannuation entity; or

(iii) prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company, registered scheme or registrable superannuation entity; and

(b)    at that time, the company is not an authorised audit company; and

(c)    the defendant is a director of the company at that time.

324BC(4)    
For the purposes of an offence based on subsection (3) , strict liability applies to the physical elements of the offence specified in paragraphs (3)(a) and (b) .

Note 1: For strict liability , see section 6.1 of the Criminal Code .

Note 2: Subsection (5) provides a defence.

324BC(5)    
A director of a company does not commit an offence at a particular time because of a contravention of subsection (3) if the director either:

(a)    does not know at that time of the circumstances that constitute the contravention of subsection (3) ; or

(b)    knows of those circumstances at that time but takes all reasonable steps to correct the contravention of subsection (3) as soon as possible after the director 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 .