Treasury Laws Amendment (2022 Measures No. 4) Act 2023 (29 of 2023)

Schedule 6   Financial reporting and auditing requirements for superannuation entities

Part 1   Amendment of the Corporations Act 2001

Corporations Act 2001

59   After subsection 311(2)

Insert:

(2A) An audit company conducting an audit of a registrable superannuation entity contravenes this subsection if:

(a) the lead auditor for the audit suspects on reasonable grounds that there are circumstances that amount to a contravention of this Act; and

(b) the lead auditor does not notify ASIC in writing of those circumstances as soon as practicable, and in any case within 28 days, after the lead auditor forms that suspicion.

(2B) An audit company commits an offence if the company contravenes subsection (2A).

(2C) An audit company commits an offence of strict liability if the company contravenes subsection (2A).

Contravention by member of audit firm

(2D) A person (the defendant ) contravenes this subsection if:

(a) an audit firm is conducting an audit of a registrable superannuation entity; and

(b) the defendant is a member of the firm; and

(c) the lead auditor for the audit suspects on reasonable grounds that there are circumstances that amount to a contravention of this Act; and

(d) the lead auditor does not notify ASIC in writing of those circumstances as soon as practicable, and in any case within 28 days, after the lead auditor forms that suspicion.

(2E) A person commits an offence if the person contravenes subsection (2D).

(2F) A person commits an offence of strict liability if the person contravenes subsection (2D).

(2G) A member of an audit firm does not commit an offence at a particular time because of a contravention of subsection (2D) if the member:

(a) does not know at that time of the circumstances that constitute the contravention of subsection (2D); or

(b) does know 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 this subsection, see subsection 13.3(3) of the Criminal Code.