National Consumer Credit Protection Act 2009

CHAPTER 2 - LICENSING OF PERSONS WHO ENGAGE IN CREDIT ACTIVITIES  

PART 2-5 - FINANCIAL RECORDS, TRUST ACCOUNTS AND AUDIT REPORTS  

Division 4 - Matters relating to audit reports  

SECTION 104   AUDITOR TO REPORT ON CERTAIN MATTERS  
Requirement for auditor to disclose matters

104(1)    
If the auditor, in the performance of duties relating to the audit report, becomes aware of a matter referred to in subsection (2), the auditor must, within 7 days after becoming aware of the matter:

(a) lodge a written report on the matter with ASIC; and

(b) give a copy of the report to the licensee.

Civil penalty: 5,000 penalty units.

Matters that must be disclosed

104(2)    
A report must be given in relation to any matter that, in the opinion of the auditor:

(a) has adversely affected, is adversely affecting or may adversely affect the ability of the licensee to meet the licensee ' s obligations as a licensee; or

(b) constitutes or may constitute a contravention of:

(i) Division 2 or 3 (or regulations made under those Divisions); or

(ii) a condition of the licensee ' s licence; or

(c) constitutes an attempt to unduly influence, coerce, manipulate or mislead the auditor in the preparation of the audit report.

Offence

104(3)    

The auditor commits an offence if:

(a) the auditor is subject to a requirement under subsection (1); and

(b) the auditor engages in conduct; and

(c) the auditor ' s conduct contravenes the requirement.

Criminal penalty: 1 year imprisonment.