Document ID: chunk:federal_register_of_legislation:C2025C00185:section:324cg:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 324CG (pt 2/4)
Character Range: 1247452–1250091

subsection (9) of this section.
 (3) For the purposes of an offence based on subsection (2), strict liability applies to the physical elements of the offence specified in paragraph (2)(b).
Note 1: For strict liability, see section 6.1 of the Criminal Code.
Note 2: Subsection (4) provides a defence.
 (4) An audit company does not commit an offence because of a contravention of subsection (2) in relation to audit activity engaged in by the audit company at a particular time if the audit company has reasonable grounds to believe that the audit company had in place at that time a quality control system that provided reasonable assurance (taking into account the size and nature of the audit practice of the audit company) that the audit company and the audit company's employees complied with the requirements of this Subdivision.
Note: A defendant bears an evidential burden in relation to the matters in this subsection, see subsection 13.3(3) of the Criminal Code.

Contraventions by directors of audit company
 (5) A person (the defendant) contravenes this subsection if:
 (a) an audit company engages in audit activity at a particular time; and
 (b) a relevant item of the table in subsection 324CH(1) applies at that time to a person or entity covered by subsection (9) of this section; and
 (c) the defendant is a director of the audit company at that time; and
 (d) the defendant is or becomes aware of the circumstances referred to in paragraphs (a) and (b); and
 (e) the defendant does not, as soon as possible after the defendant becomes aware of those circumstances, take all reasonable steps to ensure that the audit company does not continue to engage in audit activity in those circumstances.

Director of audit company to notify ASIC
 (5A) A person (the defendant) contravenes this subsection if:
 (a) an audit company is the auditor of an audited body; and
 (b) a relevant item of the table in subsection 324CH(1) applies to a person or entity covered by subsection (9) of this section while the audit company is the auditor of the audited body; and
 (c) the defendant is a director of the audit company at a time when the circumstances referred to in paragraph (b) exist; and
 (d) on a particular day (the start day), the defendant becomes aware of the circumstances referred to in paragraphs (a) and (b); and
 (e) at the end of the period of 7 days from the start day:
 (i) the circumstances referred to in paragraph (b) remain in existence; and
 (ii) ASIC has not been informed in writing of those circumstances by the defendant, by another director of the company or by the audit company.
Note: If the audited body