THE CORPORATIONS LAW

CHAPTER 5C - MANAGED INVESTMENT SCHEMES

PART 5C.4 - THE COMPLIANCE PLAN

SECTION 601HG   AUDIT OF COMPLIANCE PLAN  

601HG(1)  [Auditor of the compliance plan]  

The responsible entity of a registered scheme must ensure that at all times a registered company auditor is engaged to audit compliance with the scheme's compliance plan in accordance with this section. This auditor is referred to as the auditor of the compliance plan .

601HG(2)  [Eligibility]  

A person is not eligible to act as the auditor of the compliance plan if the person is:

(a)  an associate of the responsible entity; or

(b)  an agent holding scheme property on behalf of the responsible entity or an associate of an agent of that kind; or

(c)  the auditor of the responsible entity's financial statements.

The auditor of the compliance plan and the auditor of the responsible entity's financial statements may, however, work for the same firm of auditors.

601HG(3)  [Auditor's functions]  

Within 3 months after the end of a financial year of the scheme, the auditor of the compliance plan must:

(a)  examine the scheme's compliance plan; and

(b)  carry out:

(i) if the scheme has only had one responsible entity during the financial year - an audit of the responsible entity's compliance with the compliance plan during the financial year; or

(ii) if the scheme has had more than one responsible entity during the financial year - an audit of each responsible entity's compliance with the compliance plan during that part of the financial year when it was the scheme's responsible entity; and

(c)  give to the scheme's current responsible entity a report that states whether, in the auditor's opinion:

(i) the responsible entity, or each responsible entity, complied with the scheme's compliance plan during the financial year or that part of the financial year when it was the scheme's responsible entity; and

(ii) the plan continues to meet the requirements of this Part.

601HG(4)  [Auditor to notify ASIC]  

The auditor of the compliance plan must, as soon as possible, notify ASIC in writing if the auditor:

(a)  has reasonable grounds to suspect that a contravention of this Law has occurred; and

(b)  believes that the contravention has not been or will not be adequately dealt with by commenting on it in the auditor's report under subsection (3) or bringing it to the attention of the responsible entity.

601HG(5)  [Auditor's powers]  

The auditor of the compliance plan:

(a)  has a right of access at all reasonable times to the books of the scheme; and

(b)  may require an officer of the responsible entity to give the auditor information and explanations for the purposes of the audit.

601HG(6)  [Assistance]  

An officer of the responsible entity must:

(a)  allow the auditor of the compliance plan to have access to the books of the scheme; and

(b)  give the auditor information or an explanation required under subsection (5); and

(c)  otherwise assist the conduct of the audit.

601HG(7)  [Lodgment of auditor's report]  

The responsible entity must lodge the auditor's report under subsection (3) with ASIC at the same time as the financial statements and reports in respect of the scheme are to be lodged with ASIC (see sections 292 and 321).)

601HG(8)  [Qualified privilege]  

The auditor of the compliance plan has qualified privilege in respect of:

(a)  a statement made in a report under subsection (3); or

(b)  a notification to ASIC under subsection (4).

601HG(9)  [Additional audits]  

This section does not prevent the responsible entity from arranging for the auditor of the compliance plan to carry out audits in addition to those required by this section.