Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 (103 of 2004)

Schedule 1   Audit Reform

Part 3   Auditor appointment, independence and rotation requirements

Corporations Act 2001

93   Before section 308

Insert:

307C Auditor's independence declaration

Contravention by individual auditor

(1) If an individual auditor conducts:

(a) an audit of the financial report for a financial year; or

(b) an audit or review of the financial report for a half-year;

the individual auditor must give the directors of the company, registered scheme or disclosing entity:

(c) a written declaration that, to the best of the individual auditor's knowledge and belief, there have been:

(i) no contraventions of the auditor independence requirements of this Act in relation to the audit or review; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit or review; or

(d) a written declaration that, to the best of the individual auditor's knowledge and belief, the only contraventions of:

(i) the auditor independence requirements of this Act in relation to the audit or review; or

(ii) any applicable code of professional conduct in relation to the audit or review;

are those contraventions details of which are set out in the declaration.

(2) An offence based on subsection (1) is an offence of strict liability.

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

Contravention by lead auditor

(3) If an audit firm or audit company conducts:

(a) an audit of the financial report for a financial year; or

(b) an audit or review of the financial report for a half-year;

the lead auditor for the audit must give the directors of the company, registered scheme or disclosing entity:

(c) a written declaration that, to the best of the lead auditor's knowledge and belief, there have been:

(i) no contraventions of the auditor independence requirements of this Act in relation to the audit or review; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit or review; or

(d) a written declaration that, to the best of the lead auditor's knowledge and belief, the only contraventions of:

(i) the auditor independence requirements of this Act in relation to the audit or review; or

(ii) any applicable code of professional conduct in relation to the audit or review;

are those contraventions details of which are set out in the declaration.

(4) An offence based on subsection (3) is an offence of strict liability.

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

(5) The declaration under subsection (1) or (3):

(a) must be given when the audit report is given to the directors of the company, registered scheme or disclosing entity; and

(b) must be signed by the person making the declaration.

Self-incrimination

(6) An individual is not excused from giving a declaration under subsection (1) or (3) on the ground that giving the declaration might tend to incriminate the individual or expose the individual to a penalty.

Use/derivative use indemnity

(7) However, neither:

(a) the information included in the declaration; nor

(b) any information, document or thing obtained as a direct or indirect consequence of including the information in the declaration;

is admissible in evidence against the individual in any criminal proceedings, or in any proceedings that would expose the person to a penalty, other than:

(c) proceedings for an offence against section 1308 or 1309 in relation to the declaration; or

(d) proceedings for an offence against section 137.1 or 137.2 of the Criminal Code (false or misleading information or documents) in relation to the declaration.