Document ID: chunk:federal_register_of_legislation:C2004A01334:clause:1_324dd:p1
Version: federal_register_of_legislation:C2004A01334
Segment Type: clause
Provision Reference: sch 1 cl 324DD (pt 1/2)
Character Range: 171103–173680

324DD  Audit company's rotation obligation

Contravention by audit company

 (1) An audit company contravenes this subsection if:
 (a) the audit company consents to act as a listed company's or listed registered scheme's auditor for a financial year; and
 (b) an individual acts, on behalf of the audit company, as a lead or review auditor in relation to the audit of the company's or scheme's financial report for that financial year; and
 (c) the individual is not eligible to play a significant role in the audit of the company or scheme for that financial year; and
 (d) a director of the audit company (other than the individual) is aware that the individual is not eligible to play that role; and
 (e) the audit company fails to take the necessary steps, as soon as possible after the director becomes aware that the individual is not eligible to play that role, either:
 (i) to resign as auditor of the company or scheme; or
 (ii) to ensure that the individual ceases to act, on behalf of the audit company, as a lead or review auditor in relation to the audit of the company or scheme for that financial year.

Contraventions by directors of audit company

 (2) A person (the defendant) contravenes this subsection if:
 (a) an audit company consents to act as a listed company's or listed registered scheme's auditor for a financial year; and
 (b) an individual acts, on behalf of the audit company, as a lead or review auditor in relation to the audit of the company's or scheme's financial report for that financial year; and
 (c) the individual is not eligible to play a significant role in the audit of the company or scheme for that financial year; and
 (d) the defendant is a director of the audit company; and
 (e) the defendant is not the individual and is or becomes aware that the individual is not eligible to play that role; and
 (f) the defendant fails to take the necessary steps, as soon as possible after the defendant becomes aware that the individual is not eligible to play that role, either:
 (i) to ensure that the audit company resigns as auditor of the company or scheme; or
 (ii) to ensure that the individual ceases to act, on behalf of the audit company, as a lead or review auditor in relation to the audit of the company or scheme for that financial year.

 (3) A person (the defendant) contravenes this subsection if:
 (a) an audit company consents to act as a listed company's or listed registered scheme's auditor for a financial year; and
 (b) an individual acts, on behalf of the audit company, as a lead or review auditor in relation