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-B - Conduct of the audit  

SECTION 339-55   AUDIT WORKING PAPERS TO BE RETAINED FOR 7 YEARS  
Application of section

339-55(1)    
This section applies if the audit is required to be conducted in accordance with the auditing standards.

Offence by individual auditor or audit company

339-55(2)    
The auditor commits an offence if:

(a)    the auditor is an individual auditor or an audit company; and

(b)    the auditor does not retain all audit working papers prepared by or for, or considered or used by, the auditor in accordance with the requirements of the auditing standards until:

(i) the end of 7 years after the date of the audit report prepared in relation to the audit to which the audit working papers relate; or

(ii) an earlier date determined for the audit working papers by the Registrar under subsection (7) .

Penalty: 50 penalty units.

339-55(3)    
An offence against subsection (2) is an offence of strict liability.

Note:

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

Offence by member of audit firm

339-55(4)    
A person (the defendant ) commits an offence if:

(a)    the auditor is an audit firm; and

(b)    the audit firm fails, at a particular time, to retain all audit working papers prepared by or for, or considered or used by, the audit firm in accordance with the requirements of the auditing standards until:

(i) the end of 7 years after the date of the audit report prepared in relation to the audit to which the documents relate; or

(ii) the earlier date determined by the Registrar for the audit working papers under subsection (7) ; and

(c)    the defendant is a member of the firm at that time.

Penalty: 50 penalty units.

339-55(5)    
An offence against subsection (4) is an offence of strict liability.

Note 1:

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

Note 2:

Subsection (6) provides a defence.

Defence

339-55(6)    
A member of an audit firm does not commit an offence at a particular time under subsection (4) if the member either:

(a)    does not know at that time of the circumstances that constitute the contravention of subsection (4) ; or

(b)    knows of those circumstances at that time 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 (6) (see subsection 13.3(3) of the Criminal Code ).

Earlier retention date for audit working papers

339-55(7)    
The Registrar may, on application by a person, determine, in writing, an earlier date for the audit working papers for the purposes of paragraphs (2)(b) and (4)(b) if:

(a)    the auditor is an individual auditor and the auditor:

(i) dies; or

(ii) ceases to be a registered company auditor; or

(b)    the auditor is an audit firm and the firm is dissolved (otherwise than simply as part of a reconstitution of the firm because of the death, retirement or withdrawal of a member or members or because of the admission of a new member or members); or

(c)    the auditor is an audit company and the company:

(i) is wound up; or

(ii) ceases to be an authorised audit company.

339-55(8)    
A determination under subsection (7) is not a legislative instrument.

339-55(9)    
In deciding whether to make a determination under subsection (7) , the Registrar must have regard to:

(a)    whether the Registrar or ASIC is inquiring into or investigating any matters in respect of:

(i) the auditor; or

(ii) the audited body for the audit to which the documents relate; and

(b)    whether the professional accounting bodies have any investigations or disciplinary action pending in relation to the auditor; and

(c)    whether civil or criminal proceedings in relation to:

(i) the conduct of the audit; or

(ii) the contents of the financial report to which the audit working papers relate;

have been, or are about to be, commenced; and

(d)    any other relevant matter.

Audit working papers kept in electronic form

339-55(10)    
For the purposes of this section, if audit working papers are in electronic form they are taken to be retained only if they are convertible into hard copy.